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As temperatures soar to record highs, sales of air conditioners (ACs) and coolers for households have shot up, with prices increasing by about 20% compared to last year.
Traders said they are struggling to keep up with the surge in demand, with many running out of stocks.
The availability of locally produced ACs and the option to purchase those in instalments has further boosted demand, particularly in faraway rural areas where access to electricity is improving.
With mercury levels reaching around 40 degrees Celsius, the need for relief from the heat has become a dominant factor driving up the demand.
Recent visits to several electronics outlets in the capital revealed that traders were getting prepared with fresh stocks and new models of ACs, while a growing number of customers were also looking for white goods as per their requirements and budgets.
Zakir Hossain, a sales representative of Electro Mart at the city's Stadium Market, said they are passing busy hours for the last one week.
"Our everyday sales were reported on an average of Tk 2.0 million for the last week, which is around double than the usual period," he said.
The higher demand leads to a shortage of ACs, he said, adding that fresh stocks to arrive in their showroom soon.
"Mostly people are looking for 1.5-tonne capacity ACs for home usage," he added.
A number of traders told the FE that due to higher demand, they are facing problems with the limited number of technicians. As a result, some customers may have to wait to be cooled after Eid even if they buy ACs now.
They added the highest-selling brands include Gree, General, Samsung, LG, Daikin, Walton, Vision, and Singer, while the local market features around 50 local and global brands.
According to Germany-based statistics portal Statista, Bangladesh's AC market has been growing steadily and will continue to register a hefty growth in the next five years.
The current annual AC market size is estimated at around Tk 60 billion with a sales volume of 0.5 to 0.6 million units per year.
According to market research and consulting firm 6Wresearch, Bangladesh's AC market size is projected to grow at a compound annual growth rate (CAGR) of around 16 per cent during the period between 2020 and 2026.
Market sources said that AC is no longer a luxury product as people's purchasing power is growing one hand, while there is a probability of the temperature rising further.
"Previously AC was a luxurious product for upper-class people of the country. But day by day due to global warming, it is getting popular among all classes of people." Chief Business Officer of Walton Air Conditioner Division Tanvir Rahman told the FE.
As per market analysis, the sector is expected to register a 15 to 20 per cent year-on-year growth, he said, adding that nearly 500,000 units of air conditioners might be sold at the end of 2023.
Having an annual production capacity of 2,00,000 units, Walton is running different campaigns including discount offers, flat discounts on the exchange, and 10 years compressor guarantee.
"Yesterday (Monday) Walton sold a record number of ACs on a single day which proves the demand and necessity," he said without revealing the figures.
Farabi Khan, a private service holder, has recently bought a 1.5-tonne inverter AC manufactured by a brand called Carrier at Tk 62,000.
Talking to the FE, he said he had to make a quick decision to buy the cooling machine after the hot spell began.
"I had to buy the AC mainly for my kids who cannot tolerate excessive heat and fall sick easily," he said, adding that the device has now become an essential rather than a luxury item.
Traders said different models of ACs were selling between Tk 40,000 to Tk 100,000 based on their capacities and manufacturing brands.
Meanwhile, air coolers were also in great demand as they provide a low-cost solution to battle the scorching summer. Cooler prices vary between Tk 14,000 to 20,000 as per the capacity of 10 litres to 20 litres.