[Research Proposal]

The Electrical Accessories & Lightings Industry in Bangladesh:

Unveiling Market Scenario and Consumer Insights
1.0 Introduction
The market for Electrical Accessories and Lightings in Bangladesh is experiencing steady
growth and evolving rapidly with high potentials. Bangladesh’s economy has been expanding
over the past few years, leading to increased infrastructure development, rapid urbanization, and
housing demand. Among other factors, consumer’s energy efficiency awareness, increasing
power generation, massive electrification in rural areas, and investment friendly government
policy (Industrial Policy 2016) contributed to the growth this sector leading to rising demand for
electrical accessories and lighting products across the country.

2.0 Market Scenario

According to industry insiders, starting from scratch, the market size has now surpassed BDT
7,000 crore annually, although the estimates of the market size vary among different industry
experts. This growth has been fueled by reduced dependence on imports and increased
investments, leading to a substantial boost in employment opportunities. Additionally, tax
breaks for new investments have served as an incentive, encouraging local manufacturing of
electrical products.
Numerous companies, including Super Star, Walton, RFL, Energypac, ACI, BD Lamps,
Mohammadi Electric, BRB, BBS, Partex, Paradise, and MyOne, have stepped up in
manufacturing electrical products, making significant contribution to the growth of the market
for the wide range of electrical accessory and lighting products in Bangladesh. Moreover, this
sector has seen the emergence of over 2,500 small entrepreneurs who have ventured into the
market.
Presently, brand companies meet 50% of the local demand, while the remaining 50% is met by
non-brand products including both local and imported products. According to Bangladesh
Electrical Merchandise Manufacturers Associations (BEMMA), over 60,000 retailers are selling
electrical products nationwide and around 4-5 lakhs jobs have been created by this sector.
A brief description of the major industry players is given as under:
• Super Star Group– One of the oldest and established companies in the industry producing a
wide range of electrical products like switches, sockets, circuit breakers, cables, and lighting.
• BRB – Dominant player known for producing high-quality fans, lights, and LED bulbs.
• Walton– Emerging and a bit fast growing player offering a wide range of electrical products,
including fans, refrigerators, air conditioners, and televisions.
• RFL – Prominent manufacturer of fans, lights, and LED bulbs.
• Energypac– Leading producer of cables, wires, switches, sockets, and circuit breakers.
• ACI– Diversified conglomerate with electrical products like switches, sockets, circuit
breakers, and cables.
• Mohammadi Electric– Leading manufacturer of fans, lights, and LED bulbs.
• Partex– Prominent manufacturer of cables, wires, switches, sockets, and circuit breakers.
• Paradise– Leading manufacturer of fans, lights, and LED bulbs.
• MyOne– Rapidly growing producer of fans, lights, and LED bulbs.
According to a report by the Bangladesh Electrical Merchandise Manufacturers Associations
(BEMMA) in 2022, Super Star leads the market with 15% market share, followed by BRB with
10%, Walton with 8%, RFL with 7%, Energypac with 5%, ACI with 4%, Mohammadi Electric
with 3%, Partex and Paradise with 2% each, and MyOne with 1% market share.
However, an article published in The Business Standard on 10 December 2021
(https://www.tbsnews.net/economy/industry/massive-electrification-sparked-electrical-goods-
industry-341755) claimed RFL as the market leader with 18% market share. These two reports
are contradictory, and both lack information about their methodologies, the products they
covered, and the sample size surveyed.
Though the market size is growing and attracting more investments, there is still a lack of formal
research to explore market dynamics, current market share by brands, consumer perceptions,
preferences influencing buying decisions, and future opportunities and challenges.

3.0 Research Significance

Conducting a formal, systematic, and complete market research on the electrical accessories and
lightings industry in Bangladesh is essential for several reasons:
1. Understanding Market Landscape: Gain insights into market size, trends, and growth
potential to make informed decisions and develop effective strategies.
2. Identifying Growth Opportunities: Discover untapped market segments and emerging trends
to capitalize on new areas of demand.
3. Assessing Competitor Landscape: Analyze competitors’ strengths and weaknesses to
position your brand effectively.
4. Customer Insights: Understand consumer preferences and buying behavior for customer-
centric offerings.
5. Product Innovation: Stay ahead of the competition by incorporating technological
advancements and innovative solutions.
6. Marketing Strategies: Tailor marketing messages based on consumer data to reach the right
audience effectively.
7. Risk Mitigation: Minimize costly mistakes with reliable information on market conditions
and potential challenges.
8. Regulatory Compliance: Stay informed about industry regulations and certifications to
ensure compliance.
9. Investment and Expansion Decisions: Assess feasibility and potential ROI for market entry
or expansion.
10. Strategic Planning: Set realistic goals and allocate resources effectively for growth and
success.
The research findings will provide valuable inputs for business planning, helping top executives
gain a competitive edge, align products with customer demands, and make informed decisions to
thrive in the dynamic market environment.
4.0 Scope of the Research
The research will be conducted nationwide, covering all divisions in Bangladesh. Given the
moderate concentration of the market in Dhaka, the study will specifically focus on Dhaka city.
It will include respondents from both urban and rural areas and cover electrical accessories like
switches, sockets, holders, extensions, as well as lighting products such as LED bulbs, tube
lights, spotlights, panel lights, etc.

5.0 Research Problem

The proposed market research will aim to address key challenges and opportunities in
Bangladesh’s electrical accessories and lightings industry. The research will focus on market
dynamics, competitive landscape, major players, consumer preferences, and industry trends. The
goal is to develop effective strategies for sustainable growth and improved market presence. By
understanding consumer buying behavior and industry factors, businesses can make informed
decisions to overcome challenges, capitalize on opportunities, and enhance their market position
in Bangladesh.

6.0 Research Objectives

The primary objectives of this market research study are as follows:
a) To assess the current market size and growth trends of the lightning and electrical
accessories industry in Bangladesh.
b) To identify key market players, their market shares, and competitive strategies.
c) To understand consumer preferences, buying behavior, and factors influencing their
purchasing decisions.
d) To explore potential opportunities and challenges in the market.
e) To recommend actionable insights that will help industry players enhance their market
presence and customer satisfaction.

7.0 Research Methodology

To achieve the research objectives, we will utilize a mixed-method approach, combining
qualitative and quantitative research techniques. The following methods will be employed:
a) Surveys: Administering surveys to a diverse sample of consumers across various
demographics to capture their buying preferences and behaviors.
b) In-depth Interviews: We will conduct interviews with industry experts, key stakeholders,
and representatives from prominent companies in the lightning and electrical accessories
sector.
c) Desk Research: Analyzing existing market reports, industry publications, and relevant data
to gain insights into market trends, competitor analysis, and regulatory factors.
8.0 Research Design
The following picture sketches the research design for this study:

Type of the Study:

A mixed-method approach combining Qualitative and Quantitative methods is proposed for the
study, considering the nature of the study.

Target Market:
The target market consists of industry experts (both inside and outside Super Star), end-users of
the industry products, channel members, and electricians.

Sample Frame, Size, and Technique:

A sample of 1500 (+/- 10%) from end-user groups of the industry products will be chosen for
this research. Samples will be taken from all eight divisions in both urban and rural areas, with
approximately proportional representation. A blend of convenience and judgmental sampling
techniques will be used to select respondents. Around 50 retailers/distributors and 100
electricians from different divisions will be selected through judgmental sampling. A panel of 5-
6 industry experts (inside and outside Super Star) will also be included using judgmental
sampling.
Data Collection Method and Instruments Used:
Data will be collected through direct face-to-face interviews using pre-designed and pretested
semi-structured questionnaires for end-users, retailers, and electricians. The study will use three
sets of questionnaires, comprising dichotomous, close-ended, and open-ended questions.
Consumer awareness, perception, attitude, preferences, and satisfaction will be measured using a
5-point Likert Scale. In-depth interviews with industry experts will be conducted following a
semi-structured guideline. Additionally, secondary data from marketing intelligence and other
sources will be utilized.

Data Analysis:
Qualitative data will be analyzed using intuitive and subjective judgment. However, quantitative
data will be analyzed using statistical software like SPSS, Minitab, and Microsoft Excel.
Descriptive statistical tools such as tables, graphs, charts, central tendency, and dispersion
measures will be employed as necessary. Additionally, depending on the study’s requirements
and availability of pertinent data, extrapolation techniques like regression and predictive models
may be utilized.

Flow Chart of Research:

For the research, the sequence of tasks ranging from issuing work order by the client to report
submission is shown in the following picture.

9.0 Budget
Costs of the Project:
The total cost of this project necessitates the engagement of skilled researchers, expert
consultants, and research associates. Additionally, visiting relevant organizations in various
districts is an essential aspect of this project. There are costs associated with preparing
questionnaires for customers, retailers, and electricians, conducting pilot and nationwide
surveys, training interviewers, and generating the final report. The professional charges and
project expenses, excluding any applicable VAT & AIT, amount to BDT 12,97,150 (Twelve
lakh ninety-seven thousand one hundred fifty taka only).
The budget break-down of the cost-structure is shown below:

Heads No. @BDT Cost BDT

Questionnaire for households: 1500+150 200 3,00,000
Questionnaire for retailers: 50+10 175 8,750
Questionnaire for electricians: 100+20 175 17,500
Interviewing Industry Experts 6+2 10,000
Pretesting questionnaire: 20+05 150 3,000
Printing cost of questionnaire: 2000 8 16,000
Data Cleaning, Coding, & Entry 1670 70 1,16,900
Data Analysis 70,000
Report Preparing, Printing & Binding 25,000
Honorarium:
(a) Chief Researcher 325000
(b) Researcher 275000
(c) Two Research Associates 80000 6,80,000
Others 50,000
Total 12,97,150

Mode of Payments:
The payment schedule for the project is as follows:
• 30% of the total cost is to be paid along with the work order.
• 35% will be raised at the validation workshop.
• The remaining amount will be cleared upon submitting the final research report and
presentation.

10.0 Timeline
SL Week Tasks
Project Kick-off Meeting; Defining Research Objectives &
1 0.5 Scope, and Setting the Motion of the Research
2 0.5 Conducting Literature Review and Secondary Data Collection
Developing Research Questionnaire and In-depth Interview
3 02 Guideline
Pretesting Questionnaire; Finalize Data Collection
4 01 Instruments
5 06 Data Collection: Surveys and In-depth Interviews
6 02 Data Cleaning, Validating, and Giving Entry
7 Data Analysis: Quantitative (SPSS) and Qualitative (Thematic
01 Analysis)
8 02 Preparing Research Report
Finalizing Research Report; Presentation of Findings and
9 01 Recommendations
Total 16 Weeks

+ 1-2 Weeks
11.0 Deliverables:
Upon completing the research, we will deliver the following:
a) Comprehensive Market Research Report: A detailed report presenting the findings,
analyses, and actionable recommendations. The report will also entail an executive summary
highlighting key insights and recommendations for quick reference.
b) CD containing the report.
c) Presentation: A visually engaging presentation summarizing the research results.