Home appliance sales to dry up this Eid

Sales for home appliances could dry up in the run-up to Eid-ul-Azha as non-essential retail outlets will remain closed during the strict countrywide lockdown beginning tomorrow.

The government is set to impose a week-long nationwide curb from July 1 to control the raging Covid-19 infections.

Retailers and manufacturers say the curb would affect the business of the electronic home appliance sector during the ongoing peak season, which accounts for 70 per cent of their annual sales.

This means the sector is set to suffer losses for the second year running.

Eid-ul-Azha is the peak season for the refrigerator market as demand rises as people tend to preserve the meat of sacrificial animals.

This prompts retailers to come up with offers, including discounts, cash backs and prizes to boost sales. Like in the past, market players also introduced offers to attract customers this year.

Major players in the segment are Walton Group, Transcom Electronics, Rangs Electronics, Rangs Toshiba, Singer Bangladesh, Best Electronics, MyOne Electronics, Jamuna Electronics, Pran-RFL (Vision), Esquire Electronics, Electra International, and Super Star Group.

Among the foreign companies, Samsung, LG, General, Sharp, and Whirlpool are popular.   

Manzurul Karim, general manager of Esquire Electronics, the sole authorised distributor of Japanese brands General and Sharp, said two Eid festivals made up the peak season for home appliance retailers as the working class got festival bonuses and companies offer various offers.

"But, the situation is not favourable as retail outlets will have to shut during the lockdown period," he said.

He requested the government relax online sales and delivery options so that people could purchase products digitally and receive the delivery of the items smoothly.

If online sales are allowed, some staff will need to go to the office to complete the official procedure and ensure delivery and installation, Karim noted.

"Like the previous year, the business will be dull this year due to the pandemic and strict lockdown as consumers at district levels are not familiar with online purchase." 

Saikat Azad, assistant general manager for marketing at Transcom Digital, which retails home appliances of Whirlpool, Hitachi, Transtec, and Samsung brands, said the company took permission for online delivery during the strict lockdown.

Transcom has kept ready delivery personnel, technicians and vans to give an uninterrupted delivery during the lockdown, he said. The company has 70 outlets and 40 distributors across the country.

Azad is not optimistic about the sales of refrigerators this year.

Anisur Rahman Mollick, chief executive officer of Walton Refrigerator, said Walton has about 200 models of refrigerators, freezers and beverage coolers.

The company has recently unveiled 27 new models of refrigerators on the occasion of Eid-ul-Azha. It has more than 50 models of refrigerators with updated designs and features.

Mollick hopes the sales would be better this year compared to last year as the panic about the virus had slightly lessened compared to the level seen last year.

However, people in Bangladesh are not used to purchasing products online. They feel comfortable buying them from outlets, he said.

Nurul Afser, deputy managing director of Electro Mart Ltd, is disappointed about the current situation.

"I do not know what will happen to the sales we were expecting during Eid," he said.

If there was a limited lockdown, there would have been scope for some business. "Now the shops will be closed. So, the business will collapse."

"If the government shows kindness, we can overcome the loss. Our business is already in a worse situation because of the pandemic," he added.