Bangladesh can build global brands

Travyn Rhall

Bangladesh should think long-term and focus on building brands that can bring huge benefits to the economy, said a top market research expert.
"There are already brands in Bangladeshi market. The challenge for them is to make sure building a brand for a long-term," said Travyn Rhall, global chief executive officer of Millward Brown, one of the largest market research organisations in the world.
"Sometimes you can fixate on prices. Prices can only go to some point. I think there is a trade-off. "
Launched in July 2013, Millward Brown Bangladesh currently offers globally-accepted research solutions on brand, media and communications.  
Rhall's company is working with some major multinational clients, helping them build their brands, exposing them to the different channels the consumers are getting information from.
A former president of the Association of Market and Social Research Organisations in Australia, Rhall said brands—small or big—can be huge for an economy.
"Studies around the world have showed strong brands produce strong financial results. The motivation for companies to invest in branding to be a strong brand is imperative from business point of view," he told The Daily Star in an interview in Dhaka recently.
He cited the example of Samsung which is 10 percent of the Korean economy. Similarly, Nokia is a large chunk of Finnish economy.
On the role of branding, he said companies try to create a strong association between the brands and the customers with branding.
"Branding also gives you more market share. You can then give premium which is important when it comes to the question of finances. You can also create potential for growth in future."
Rhall, who has a more than 30 years of experience of working in market and social research industries, said Bangladesh can create brands and export those brands into other markets.
"If you want to export a brand then you will have to invest outside, which involves a large amount of money. That is the challenge all companies face. It takes time to build a brand."
"Entrepreneurs will have to make strong brands for western markets or other emerging markets. After that they will be out through that brand in that market."
In the last 20 years, China has been supplier of products to the rest of the world, he said, adding that now entrepreneurs of China are building products.
"Chinese smartphone maker Xiomi, which started with nothing in China, is now selling more than Samsung and Apple. It sells its brands completely through e-commerce. So, you can only buy it on the web."
Bangladesh's garment sector, which has already made the country the second largest exporter of apparel, can build global brand, he said.
"The basic expertise is very high in the country. The success in the garment industry is building profile of Bangladesh to show that the country is emerging."  
According to Rhall, a number of factors are working in favour of Bangladesh: the country is grouped among the Next-11 and this group of countries are on the profile of major multinationals.
"They are saying that these countries will emerge in the next 20 to 30 years. Bangladesh has a lot of dynamics that can make the country successful in the future."
He said the government policy is important in building brands in the domestic market and outside of the country.
"The government of China formulated policies so companies can create brand outside of China. That government policy is enabling the company to expand outside of the country."
He said multinationals invest more money and have programmes on market research compared to local companies.
"However, if local companies see there is good return on their investment in market research they will do more."
Rhall said Bangladesh being named as one of the next-11 emerging markets brings it to the focus of many companies outside the country to look at what is going on here, he said.
"They are asking: should I be investing here? This led Millward Brown to open its office in Bangladesh."
"The market will grow quite strongly. That is why we are here."
The market research will grow twice the GDP if the economy continues to demonstrate strong growth for the next 20 years, he said.  
Rhall said the growth of market research would be 10 to 15 percent annually. The size of global research market is $30 billion to $40 billion.
He said Bangladeshi companies have not invested a lot in market research and development.
“It is still very new industry relative to other markets. That changes with the time. That is changing in Bangladesh too. The same thing you would have said in China 20 years ago. Now the industry is skyrocketing."
"There is a lot of opportunity for the people to get into that industry. It will grow quickly because the economy will grow quickly."
He said the market and advertising have changed over the years thanks to fast digitalisation.
"The biggest change now is what is happening digitally, and what is happening with mobile phones. It is evolving with people spending more time with their brands of different media and newspapers."
"In the last five years, there has been a lot more activity on the digital stuff such as websites and Facebook. More fragmentation in the digital space will continue to happen, as new sites are coming up all the time, people going to them and there is advertising on them."
"In the past, people did not have much access to online. Now it is growing and creates a medium for the people to advertise their brands."
He said brands talk on their social media, and whenever global brands like Apples or Samsung launch a new mobile phone, there is a lot of discussion on the internet across many countries.
"It is quite important. It is helping us to understand what consumers are thinking."
How people are consuming media to get exposure for brands is changing, said Rhall. "This will probably be the biggest single thing that will impact everybody in the next five to 10 years."
"The amount of time people spend using their mobiles in many countries is more than the time they spend watching TV."
Rhall said the government has to be behind any effort aimed at promoting any brands.
"The government would have to take policy decision if it wants to promote a brand because the brands will require setting up offices and launching campaigns."

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