Stores run out of ACs as heatwave spurs Eid splurge

Home appliances stores in Dhaka city have almost run out of stocks of air-conditioners as the current heatwave has driven their summer sales of the room-cooling device much higher than expectations.

As temperature hits record high with scorching heat forecasted to continue, shoppers were seen rushing to showrooms for smaller family size AC units, but few of them could buy.

Sales executives of various brands said there are not enough technicians to install ACs. Even factories do not have enough stocks of smaller ACs.

They advised customers to wait until the end of the Eid holidays when they will restock their stores and technicians will be back to work.

Many of the intending buyers saved for months to install an AC in their homes during this summer, while unbearable heat prompted others to spend Eid bonuses for the device.

Asif Ahmed, a service holder in Dhaka, told The Business Standard that he visited showrooms of Electro Mart, Walton and Samsung, but had to return home empty-handed.

Even the shops that had a few ACs available had no one to install them, he bemoaned. "I finally made a booking on the condition that the new product will actually arrive tomorrow."

Walton's Chawkbazar Plaza salesman Imran Rahman said he is quickly running out of stock and the space available in his store cannot accommodate more than 100-120 ACs.

"At the same time, technicians are not available because of the Eid holidays," he added.

Normally AC sales increase in the summer, but the demand has increased manifold this year, Imran said.

AC buyers were seen leaving empty-handed from some sales centres in Old Dhaka, Moghbazar, Badda, Farmgate, Nawabganj and other areas of the capital yesterday.

They were disappointed to find stores in these areas mostly out of a supply of 1-ton (capacity of removing 12,000 BTUs of heat per hour) ACs of popular brands, including Walton, Samsung, Gree, General and Sharp.

Although a few 1.5-ton ACs were available, there were none available to install them.

Buyers are also finding that online marketplaces have sold out of ACs.

Arifur Rahman, manager of the Karwan Bazar branch of Transcom Electronics, said the outlet used to sell four to five units every day during summer.

"But now, for the past week, 20-25 ACs are being sold a day. After running out of units, it takes time to bring in new stock," he said.

Moreover, installation technicians are getting scarce as many have fallen ill due to overwork, Arifur added.

Moghbazar resident Amir Hossain said yesterday, "I bought a 1.5-ton AC last night. I still haven't got it installed as of this afternoon."

The sales centre told him that it has fewer technicians than the number of ACs sold.

Electro Mart, which markets the country's highest-sold Gree AC, said demand is almost double compared to April last year.

However, the company is not able to meet the additional demand due to the manpower crisis.

Md Nurul Afsar, deputy managing director of Electro Mart, said his factory has ACs but it cannot deliver them to showrooms or provide installation technicians because most are on Eid vacation.

The local tech giant Walton has a 30% share in the country's AC market.

Tanvir Rahman Sajib, chief executive officer at Walton Air-Conditioner, said demand this year is much higher and there is a crisis in the supply chain on account of Eid.

"There has never been such a demand before. For the past several days, 3,500 to 4,000 ACs have been sold every day. Earlier it used to be around a thousand," he said.

"We are trying to supply as per demand. We also have the capability. However, due to the Eid holidays, not everything can be done," Tanvir Rahman added.

He added that his factory has an annual production capacity of two lakh units of ACs. "Sufficient raw materials are also imported. Now the crisis is in logistics and installation."

Manzurul Karim, chief marketing officer of Esquire Electronics, said the company had been prepared for a heatwave this year. "But we are now facing installation issues due to high demand."

As the price of ACs is getting within reach of the middle class, the production of and market for the device are increasing in the country.

Entrepreneurs expect that more than 7 lakh units of ACs will be sold this year, the growth being 30%.

They say the sale of ACs is more than five times this month compared to other times.