AC sales soar on hot weather
Air conditioner sellers have posted strong sales amid persistent hot weather throughout the entire period of April-July and rising disposable income of people.
Equated monthly instalment (EMI) facility and availability of electricity also fuelled sales of the appliances once seen as a luxury, according to market players.
The sales were so high that some retailers at one point failed to provide consumers with the required models of ACs as those went out of stock.
Samsung posted a 200 percent year-on-year sales growth in June while Transtec clocked over 200 percent growth. Walton pulled off 180 percent sales growth, Esquire Electronics 250 percent and Pran-RFL’s Vision brand about 150 percent.
April, May and June are the peak season for AC retailers as temperature starts to climb from March. Nearly 90 percent of the ACs are sold during the months.
The 1.5-tonne and 2-tonne non-inverter and inverter ACs of Transtec and Sharp of Esquire Electronics were out of stock for around three weeks in June thanks to the huge demand for the two segments.
“The sales exceeded our expectation. Our stock of 1.5-tonne and 2-tonne Sharp AC was sold out before June 15,” said Md Manzurul Karim, general manager of Esquire Electronics, the authorised sole distributor of Japanese giant electronics brands General and Sharp.
He said the sales of non-inverter AC of both brands have increased thanks to the increasing income of the middle class. The affluent class prefer inverter AC than the non-inverter ones for better performance and energy-saving feature.
Transtec’s 1.5-tonne inverter AC was out of stock for around three weeks in June, said Md Nahid Hassan, marketing manager of Transcom Digital, which owns Transtec brand.
Transcom Digital, which retails ACs of Hitachi, Panasonic, Whirlpool, Samsung and Transtec brands, replenished the stock of 1.5-tonne and 2-tonne inverter ACs in the first week of July, he said.
In order to drive the sales this year, manufacturers and retailers also came up with EMI, exchange offer, discount and cash-back facilities.
Market players expect the sale of ACs would cross 7 lakh units this year. Till June 15, more than 350,000 units were sold. The market size may reach Tk 4,500 crore this year, from Tk 3,500 crore in 2018.
The annual demand for ACs has grown 20 percent on an average in the last six years, according to Uday Hakim, executive director of Walton, a local manufacturer.
He said customers are shifting from non-inverter ACs to inverter ACs because of lower energy consumption by the latter. The price of ACs has also come down, allowing the mid-income group to afford it.
Walton brought in high-quality intelligent inverter AC, keeping the products affordable, he said, adding that inverter ACs consume 60 percent less power than the non-inverter ones.
Mohammad Shariful Islam, product manager of Samsung Bangladesh, said customers tend to purchase ACs during summer to get relief from the scorching heat.
Samsung AC with 8-pole inverter technology ensures faster cooling and less energy consumption, he said.
AC sales may remain strong in the coming weeks as well, according to the retailers.
