UNTAPPED POTENTIAL OF THE DOMESTIC CONSUMER MARKET IN BANGLADESH

The Consumer market in Bangladesh has been growing at a fast pace due to rapid expansion of  affluent class and a good digital adoption rate. The economy of Bangladesh has grown impressively over the last ten years, averaging more than 6% annually. The per capita income has increased owing to the young and dynamic population, rapid growth of E-commerce, digital transformation, as well of expansion of consumer products and the retail sector. Notwithstanding obstacles, Bangladesh’s domestic consumer market is still a vastly unexplored opportunity.

INCREASED INCOMES AND ECONOMIC GROWTH

Bangladesh’s economic environment has experienced a substantial change. Growing middle class and increasing earnings are the outcomes of this economic success. The World Bank projects that by 2025, there will be 34 million members of Bangladesh’s middle and affluent class (MAC), from 12 million in 2015.

This change in the population is significant because it highlights consumer spending.

Consumers with more disposable money can buy optional goods like technology, clothing, and entertainment in addition to fundamental requirements. Urbanisation is a further factor supporting this trend.

YOUNG AND ACTIVE POPULATION

Bangladesh’s population is relatively young with the median age of 27. This younger market is more willing to try new goods and services and is brand-aware and tech-aware. Additionally, they are more likely to use digital platforms for leisure and shopping, which will fuel the expansion of e-commerce and online marketplaces.

The digital landscape of the nation has been changing quickly. The percentage of people using the internet is rising gradually.

This shift is largely made possible by government programs to advance digital literacy and enhance digital infrastructure.

DIGITAL TRANSFORMATION AND E-COMMERCE

E-commerce in Bangladesh has shown encouraging progress. Local e-commerce giants have benefited from this trend by stocking everything from gadgets to groceries.

The ecosystem for digital payments is growing as well. Bangladeshis’ payment habits have completely changed as a result of mobile financial services (MFS), which offer safe and practical payment options.

A full digital economy is being created by this digital transformation, which is not just happening to payments but also affecting other industries including entertainment, health, and education.

RETAIL AND CONSUMER PRODUCTS SECTOR

Bangladesh’s consumer products industry is undergoing expansion at a rapid rate. FDI (Foreign Direct Investments) in growing presence there. Products catered to Bangladesh customers’ preferences are being introduced by both local and international businesses.

With the advent of contemporary retail forms like shopping centres, supermarkets, and convenience stores, the retail industry is also changing. Customers now have access to a greater range of products and enjoy a better shopping experience as a result of transition from traditional mom-and-pop stores to organised retail.

OPPORTUNITIES FOR GROWTH AND INNOVATION

Companies can use technology to develop customised goods and services that cater to Bangladeshi customers’ particular requirements. For example, logistical issues can be resolved by creating last-mile delivery options that are both accessible and reasonably priced.

Additionally, the emergence of digital marketing and social media gives companies effective tools for connecting and interacting with customers. Businesses may better understand customer’s behaviour and preferences by utilising data analytics and artificial intelligence. This enables them to develop more targeted marketing campaigns and individualised product offerings.

To fully realise the potential of the market, cooperation between the public and private sectors will be essential. Public-private partnerships have the potential to stimulate innovation, enhance regulatory frameworks, and propel infrastructure development. Furthermore, encouraging entrepreneurship and providing assistance to small and medium-sized businesses (SMEs) can boost employment and the economy.

STRATEGIES TO SUCCEED IN CONSUMER MARKET

• Adequate Transport and Logistics Infrastructure: A proper distribution channel is essential to support market growth.
• Streamlining Regulatory Processes:- Creating a more business-friendly environment will be crucial in attracting investment and fostering market expansion. Additionally, ensuring a consistent and reliable power supply is vital for both the manufacturing and retail sectors.
• Sensitising Consumers:- Educating consumers about their rights and ensuring quality standards for products will build trust and confidence in the market. Initiatives to enhance digital literacy and cybersecurity are also important as the market becomes increasingly digital.