Through Walton, Bangladesh has become IoT-based AI refrigerator manufacturer

Walton entered the electronics and home appliance markets in 2008, when the sectors were still import-dependent. 

Currently, Walton is leading the refrigerator market with more than 70% of the market share. Besides, the company is doing well in televisions, air conditioners, ceiling fans, LED lights and home appliances sectors as well.

Walton began exporting refrigerators in 2011, along with various electronic products, including mobile phones, compressors and televisions, to European, Asian and African countries.

In an interview with The Business Standard, Tofail Ahmed,  the Chief Business Officer of Walton Refrigerator, discusses the current state of the Bangladeshi electronic appliances industry and Walton's position in it.

How big is the electronics market in the country? What is Walton's position in the market?

In the past, a wide range of electronic products, such as refrigerators, TVs, and ACs, were primarily imported into the country. However, this trend has undergone a significant transformation. As the demand for these products surged within the country, companies gradually shifted their approach by importing the necessary components and assembling them domestically. Over time, this transition has evolved further, with a growing number of electronic products now being manufactured within the country itself.

The demand for household electronic products is steadily on the rise, with the current market size in the country reaching around Tk12,000 crore. This market is experiencing an annual growth rate of 7%. Notably, domestic companies hold a significant share in this market, with Walton occupying a substantial portion. Approximately 60% of the electronics and electrical market in the country is captured by Walton, and the company currently holds around 70% of the refrigerator market.

Which of your products have helped you to achieve a good position in the market?

When it comes to establishing a strong market presence, Walton refrigerators undoubtedly hold a prominent position. The brand's reputation has garnered widespread appreciation from customers throughout Bangladesh. Additionally, we offer a diverse range of other popular products, including Walton air conditioners, washing machines, TVs, lifts, and various other home appliances, electrical appliances, and digital devices.

What challenges did you face to become a Bangladeshi brand? How did it become possible?

We initially faced two primary challenges as a Bangladeshi brand. The first challenge was to establish ourselves as a recognised brand and the second challenge revolved around our technological capabilities. However, the unwavering courage exhibited by our esteemed entrepreneurs and directors served as our motivation to progress.

Walton has been committed to reducing import dependency in the electronics sector of our nation. Our ultimate goal has been to transform this sector into an export-oriented industry, catering to the country's needs while making a substantial contribution to the national GDP.

Our vision is centred around providing customers with world-class products at affordable prices, while harnessing the potential of our country to deliver technologically advanced products. Walton has consistently demonstrated its capabilities within the electronics sector of our nation, earning the trust of the people. In fact, the company has been recognised as the leading refrigerator brand in the country, surpassing both domestic and foreign competitors.

Thanks to the visionary thinking and leadership of our entrepreneurs and directors, along with the creation of high-quality, modern, and world-class products, we have successfully overcome various challenges as a Bangladeshi brand. With the unwavering trust and support of our customers, we have been able to rise above adversities and establish ourselves prominently on the global stage.

Manufacturing products according to the requirements, taste and food habits of Bangladeshi customers along with considering electricity consumption was very challenging. We have successfully overcome the challenges and presented customers with the aforesaid quality products. Now Bangladesh has become a country of IoT-based AI refrigerator manufacturers through Walton. We are emphasising the incorporation of AI with products like refrigerators.  

What was the reasoning behind setting up manufacturing plants in Bangladesh?

The aspirations of Walton's entrepreneurs and directors were grand. In 2007, Walton embarked on a significant endeavour by establishing a refrigerator manufacturing plant in Bangladesh with the aim of providing the country's people with affordable electronic products. This bold move involved affixing the "Made in Bangladesh" tag to high-tech items such as refrigerators, televisions, and air conditioners.

It was a courageous step considering that consumers often look for foreign brands when purchasing electronics. However, Walton's entrepreneurs and directors took on the challenge of manufacturing these products within Bangladesh, fully aware of the risks involved.

Since its establishment, Walton has not only been engaged in product manufacturing but has also prioritised product research and innovation. Since 2008, the company has dedicated its efforts to developing cutting-edge products. In fact, Walton possesses the largest Research and Innovation (R&I) centre in South Asia specifically focused on refrigerator research and innovation. The centre tirelessly explores ways to offer the best quality products at more affordable prices.

Over time, we continuously update the design and features of our refrigerators to align with technological advancements, as well as the evolving needs and preferences of customers in both domestic and international markets.

We try to develop products that are tailored to the weather patterns and consumer behaviour of our country. This commitment is evident in the innovative features we incorporate into our products. For instance, our wide range of offerings includes features such as wide voltage range support, including overvoltage protection technology, catering to the specific needs of our customers. Furthermore, our Research and Innovation (R&I) division is dedicated to continuous research aimed at enhancing the energy efficiency of our products.

We recently launched Walton's Research and Innovation Centre in South Korea. We are ensuring that our R&I capabilities are useful for the country and the people of the country.

We are manufacturing products according to the standards of Europe and America, which are suitable for developed countries of the world. And we have been able to export to more than 40 countries.
 

What kind of products do Bangladeshi customers prefer? What are their preferred price ranges?

There are two to three categories of customers in Bangladesh. Our product manufacturing is designed to meet the requirements of all customer segments. Our primary goal is to ensure that people in the country have access to the products they need, directly from us.

To further enhance our offerings, we have introduced a new series called Giantech, specifically designed for our premium customers. This series showcases a collection of AIoT-based side-by-side refrigerators, available in a wide range of sizes from 50 litres to 650 litres. With over 250 unique designs, these refrigerators encompass the latest features and are offered at affordable prices.

Nowadays, everyone wants to buy energy efficient products. What products do you have that fulfil this demand?

We have established a strong presence in the market with our long-standing expertise in inverter technology. As part of our commitment to enhancing energy efficiency, we have conducted continuous research and development efforts. This has led us to adopt even more advanced technologies in our products.

Building upon this trajectory, we have recently introduced the 3DMSO inverter technology and MSO plus technology in Walton refrigerators. These cutting-edge technologies enable our fridges to analyse and adapt to the surrounding conditions, ensuring optimal performance while minimising power consumption.

What benefits will the consumers get from the Giantech series of refrigerators that you have brought to the market?

Our constant endeavour is to enhance the quality of life for our valued customers. We aspire to introduce new products that add a new dimension to their lifestyles. In line with this commitment, extensive research has been conducted over the past five years in the development of our latest series of refrigerators. Based on the valuable insights obtained from this research, we have successfully launched this series in the Bangladeshi market.

The Giantech series is designed with a focus on modern conveniences for our customers. With its convertible mode feature, customers can adapt the refrigerator according to their specific needs. Additionally, these refrigerators can be conveniently operated through mobile phones, providing ease and flexibility to the users. Moreover, customers can enjoy significant energy savings benefits, ensuring efficient performance while reducing their electricity consumption.

Is the government's current policy strategy sufficient for the development of the electronics sector?

The government is actively involved in fostering the growth of domestic industries and reducing reliance on imports. In the proposed budget for the 2023-24 fiscal year, the government has introduced several concessions to promote the manufacturing of electronic products. 

One significant measure is the exemption of Value Added Tax (VAT) at the manufacturing stage for domestic electronic product manufacturers. While this sector is currently perceived as a luxury industry, it can be reimagined as an export-oriented sector to tap into a larger market.

To effectively develop this sector, it is crucial to increase incentive facilities and enhance export opportunities. By facilitating exports, this industry can make a substantial contribution to the country's GDP. Therefore, it is imperative to prioritise the development of this sector as a major export-oriented industry, which will play a significant role in the overall economic growth and development of the nation.