Written by The Banking Post
The slowdown in Bangladesh’s housing sector has hit the Tk6,500 crore electrical and electronic goods market hard, slashing demand by as much as 50% and threatening the livelihoods of more than 5 lakh people.
Industry players say amendments to the Detailed Area Plan (DAP), which restrict building heights on smaller plots, triggered the construction slump that rippled across allied sectors.
“Our market depends heavily on housing. Sales have dropped by more than half in a year,” said one industry insider.
Wholesalers and retailers in Dhaka confirmed steep declines in sales of fans, lights, wiring, sockets, switches, and circuit breakers. Weekly sales at some outlets have halved as developers and contractors scale back purchases.
The Real Estate Housing Association of Bangladesh (REHAB) said construction activity is down nearly 70%, warning that the ripple effects are damaging not just electrical goods but also steel, cement, and paints.
Market size and leaders
According to industry estimates, electrical accessories account for Tk3,575 crore of the market, while lighting products—including LEDs and emergency lights—are worth Tk2,925 crore. Leading players include Super Star, Walton, and Click, which dominate both accessories and branded lighting.
Larger firms weather the storm
While smaller businesses struggle, bigger firms have cushioned the blow through diversification and innovation. Walton Cable reported a 20–25% sales drop industry-wide but said new product lines helped attract customers. BRB Cable noted only a “marginal” impact, though it raised prices by 10–12% to offset rising costs.
Despite such efforts, many in the sector warn the prolonged housing slowdown could erode one of the country’s fastest-growing domestic industries, which until recently was expanding at more than 15% annually.
