Overview of a Shifting Market
In recent years, Bangladesh has experienced hotter summers, with temperature rises that outpace the global average. This increase in heat has led to record-breaking heatwaves, such as the one in April 2024 that lasted 24 consecutive days, boosting demand for air conditioners (ACs) across the country. Where once ACs were seen as a luxury, they have now become a necessity. Currently, around 650,000 AC units are sold annually in Bangladesh, with the market size exceeding 6,000 crore BDT [1].
The Foundation of Walton’s Leadership
Initially, most electronics, including ACs, were imported. In the late 1990s, local companies like Walton began to assemble electronic products such as refrigerators and televisions by importing components, which allowed them to sell these items at lower prices compared to international brands. This approach made Walton popular among consumers, ultimately allowing the brand to capture a large portion of the local market [2].
By 2020, Walton had taken its production a step further, manufacturing nearly every component of an AC domestically, which further lowered costs for consumers. Unlike international brands that typically design their products for global markets—often resulting in added costs for unnecessary features—Walton’s approach has been to customize AC features based on Bangladeshi customer preferences. This unique approach has not only made Walton ACs affordable but also highly relevant to local needs [1][2].
Building on Success Through Innovation
Walton’s focus on research and innovation has been central to its growth. In 2019, Walton introduced its first AC unit with a fully local design. This innovation process is now supported by a research and development team of over 100 researchers dedicated to adding new features, like 6-star energy savings, and environmentally friendly options such as R32 refrigerants and solar hybrid ACs [2]. Additionally, Walton has introduced advanced functionalities, including offline voice control in both Bangla and English, further setting the brand apart from competitors in the local market [2].
After-Sales Service and Brand Building:
Customer trust in Walton’s quality and service has been key to its reputation, beginning with its refrigerator and television lines. Walton became the first company in Bangladesh to offer a 1-year replacement warranty on ACs, a move that gained customer confidence. Its extensive network of over 80 service centers and more than 3,000 AC service experts ensures timely after-sales service. This combination of affordable, quality products and reliable service has solidified Walton’s leading position in the market [2].
Conclusion
Walton’s journey from local assembler to market leader in Bangladesh’s AC industry demonstrates the impact of strategic local production, customer-oriented design, and robust after-sales service. By aligning its product offerings with local needs and environmental goals, Walton has redefined what was once considered a luxury into an essential, accessible appliance for millions of Bangladeshi households.
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