Bangladesh's retail sector has figured prominently in bringing about a transformation in the country's now rapidly expanding economy. Bangladesh is presently categorized as one of the next eleven emerging market middle income economies and a frontier market due to local and international investments and service provisions.
Growth of the EconomyÂ
After the country gained independence, it was labeled a 'Basket Case,' implying that the country's economic situation is unsolvable. Following the political upheaval in 1990, the economy of the country began to improve; by the year 2000, the economy had grown at a CAGR of 5% per year. By 2019, the country's GDP growth had reached an all-time high of 8.2% during the pre-pandemic period, with an annual growth rate of 6%-8%.
Rise of the Retail SectorÂ
Bangladesh's traditional retail landscape is evolving from mom and pop shops to superstores. While small mom and pop shops continue to be the largest drivers to consumer goods turnover, superstores are gradually incorporating those customers into their value chain while also attracting new clients.Â
Enterprises like United Group, Transcom & Gemcon etc. has reinvented the retail and service sectors by carefully integrating international designs and concepts into the previously existing retail industry, thereby addressing the expectations of convenience-seeking consumers. These enterprises unique expertise of the country and its people has enabled them to identify priority sectors where a significant contribution may be made in the retail business. Whether it is delivering end-to-end building solutions, equity markets, retailing, or power stations installation and control, these enterprises have effectively built a one-of-a-kind example of devotion in client care in Bangladesh's retail and service business.
The current pandemic has caused retail sectors to transition to e-commerce, resulting in intense market competition. Retailers, on the other hand, have responded to new marketing strategies such as digital design and social media promotion, resulting in new chances for expansion in this field. Retailers are now focused on online advertising and SEO-based content authoring, as well as methods such as email marketing and graphic designing, to make their services more desirable to consumers. However, these ideas must be embraced by the public at large, and there are numerous roadblocks that must be overcome before the industry can reach its full potential.
As life resumes to normalcy, a majority of people are expecting something different when it comes to physically going to a store and this is where Waterhouse Wade can exercise its expertise. Waterhouse Wade can assist physical retailers with transitioning to a new design that is more consumer oriented and reflects the stores' altered goals and ambitions. Many small merchants are planning to launch their first store, and with Waterhouse Wade's branding strategies, in-store designs, and marketing techniques, retail outlets will grow to be successful and provide more revenue and job opportunities for the locals and the country as a whole.
Challenges
Bangladesh's retail industry has a lot of promise, but there still exists a multitude of challenges that need to be remedied. To begin with, entrepreneurs need adequate market intelligence, along with a properly built supply chain management system. Secondly, the quantity of skilled labours and executives, both in the field and in management, is still quite low, furthermore, there aren't enough adequate retail places for markets to grow in. Moreover, the consumer base is extremely limited, as it focuses on a few urban areas that include roughly 1 to 2 large cities across the 8 divisions. Furthermore, the high tax rate, inconsistency in electricity supply, high capital costs, corruption, and the absence of governmental machinery that supports production are all impediments to retail sector expansion. A few private websites that provide information on many aspects of retailing cannot be considered the most trustworthy and reliable source.
Bangladesh's ability to become a leader in the retail business throughout the region in the future should not be undervalued. Bangladesh, with enough government assistance and the necessary capabilities to raise capital in this sector, has the potential to become one of the most prosperous economies in Asia, exceeding all others on the Asian sub-continent.