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Local brands are gradually winning the hearts of consumers, as per data from the past decade — in a development that demonstrates Bangladesh’s growing strength in the manufacturing sector.
From roadside groceries to high-end chain stores, home-grown products often triumph over the imported goods as domestic companies have improved quality and compliance, buoyed by people’s billowing purchasing power.
Bangladesh Brand Forum (BBF), a local consultancy firm, has been awarding best brands for a decade on the basis of market research. The firm found that local companies are fast elbowing their way up — a stark contrast to the scenario a few years back.
Of the top ten brands of 2019, six were local, according to the survey of the BBF, which works on thought leadership and knowledge sharing.
bKash, a mobile financial service provider, was named the most loved brand of the country, while the next three were RFL Plastics, Radhuni and Ispahani Mirzapore Tea, all home-grown labels.
In the 2018 survey, five local brands made it to the top ten, with Ispahani Mirzapore Tea taking the top spot.
The BBF prepares a list of about 100 popular brands in different categories every year by conducting a survey in partnership with Nielsen Bangladesh. As many as 4,000 consumers from across the country are interviewed.
Local companies blend affordability and quality keeping the huge domestic customer base at the forefront, said Asif Iqbal, executive director for marketing at Meghna Group of Industries, which has a laundry list of consumer goods in its portfolio.
“That is the simple reason behind their surprising growth.”
Several brands of Meghna Group clinched top positions in different product categories of the BBF survey.
“We, the local companies, have already won the trust of customers and that’s why we were able to topple the multinational companies,” said Iqbal, pointing out that domestic brands still have huge potential to grow and grab the entire market.
Bangladeshi investors have changed their mind set in recent years to compete with the multinational companies, said Mir Nasir Hossain, a former president of the Federation of Bangladesh Chambers of Commerce and Industry.
This is why Bangladesh has found a good number of local companies with the ability to lead from the front, said Hossain, adding that the businesses have realised they cannot survive without maintaining good quality.
“As a result, customers have started accepting their products,” said Hossain, who owns a good few business houses like Mir Ceramic, Mir Akhter Hossain and Mir Holdings.
The BBF has been honouring the brands since 2008 with an exception in 2012. In the first three seasons of the award, Nokia, then a leading mobile brand, secured the top position, but no local firms except Dhaka University made it to the top ten list.
It was in 2013 that a local brand — Radhuni Masala – broke into the top ten. Next year, Radhuni Masala and Teer Soybean secured spots and there has been no looking back since.
“There is no doubt that the local companies are growing gradually and they are getting popularity but it does not mean that they are competing with the multinationals and grabbing their market,” said Syed Ferhat Anwar, a director of the Institute of Business Administration of Dhaka University.
Some foreign companies are leaving the country creating scope for local brands, he said, adding that Bangladeshi firms are also becoming financially strong.
The BBF initiative has created enthusiasm among local brands and inspired them to do better, said Shariful Islam, its founder and managing director.
“Companies get customer feedback through our survey and can assess their position in the market, which helps them rethink their plans,” he added.
(TDS)
