AC sales triple as temperature soars
The sales of air conditioners have tripled year-on-year in April and May as people rushed to retailers to get rid of the scorching summer.
Local assembly and manufacturing have also made ACs affordable for the bulging middle class as the price came down.
April, May and June are the peak season for the outlets retailing ACs as the temperature rises from March. Nearly 90 per cent of the ACs are sold during the quarter.
In recent weeks, the temperature has hovered around 39 degree Celsius, and it went past 42 on April 24 in Jessore.
The annual demand for ACs rose 20 per cent on average in the last six years. Samsung posted 300 per cent higher sales in April. Walton registered 450 per cent growth in the January to April period compared to the same period last year. Transtec's sales have doubled since April 15.
The sales rose 250 per cent for Esquire Electronics and 100 per cent for Pran-RFL's Vision brand.
Md Shariful Islam, product manager (digital appliance) of Samsung, said the company clocked about 300 per cent higher growth in the current season.
Samsung assembles ACs locally, so the price has reduced significantly. It produces only inverter ACs to help users save on energy cost.
"Our target is the upper-middle-income segment of the customers. So, we emphasise the quality of the product and services," he noted.
Samsung is providing a 12.5 per cent flat discount, free instalment, and three after-sales services.
Nurul Afsar, associate managing director of Electro Mart Ltd, the distributor of GREE AC, said people depended on ACs to protect themselves from the rising mercury.
"Moreover, the price is affordable for the middle-class. As the middle-class is expanding, the sales of ACs is increasing."
Existing ACs have advanced features like saving energy and protecting the rooms from dust and harmful virus and bacteria, he said. "This is helping AC sales even during the coronavirus pandemic."
Walton has introduced some new models of inverter ACs with a dual defender, ioniser, and UV (ultra-violet) care features to keep the room free from any virus or bacteria, said Augustin Sujan, senior additional director of the company.
Currently, Walton is running Digital Campaign Season-11. Under the campaign, customers are getting a free freezer or sure cashback. "As a result, the sales have gone up," Sujan said.
Walton has targeted to sell 175,000 AC units in 2021.
At present, the local company is manufacturing and marketing more than 27 models of one tonne, 1.5 tonnes, and 2 tonnes split-type AC.
Saikat Azad, assistant general manager for marketing at Transcom Digital, said the company posted about 250 per cent higher sales in April and May.
During the lockdown period, the preparation for home delivery was better this year compared to last year, which drove the AC sales up, he said.
Transtec Digital retails ACs of Hitachi, Panasonic, Whirlpool, Samsung, and Transtec brands.
Raziur Rahman, senior manager for marketing communication of Singer Bangladesh, said despite the challenges posed by the pandemic, the sales of Singer ACs were reasonably good during this summer.
"The demand has shot up since we have started offering flat 10 per cent discount on all models of inverter and other ACs."
The growth of AC sales was impressive this summer compared to 2020, said Md Manzurul Karim, general manager of Esquire Electronics, the authorised sole distributor of Japanese giant electronics brands General and Sharp.
Retailers say the sales of ACs will reach seven lakh units in 2021 as the year is hotter compared to the previous year. The market size will expand to Tk 5,000 crore, from Tk 4,500 crore in 2019.