Most consumers cite brand as the leading purchase decision. Companies which now establish themselves with a strong reputation will be the ones with the biggest rewards. Startups with strong marketing and PR may therefore be able to capture large market shares.
Consumers are highly optimistic and many expect their incomes to rise within a few months, a good indicator of their willingness to spend.
Mortgage and debt level is low with high interest rates due to anxiety and lack of availability of financial services. Companies that can offer financial solutions and ease anxieties related to personal debt unlock strong growth
The government has promoted the Vision of 2021 with the goal to lift Bangladesh up to a middle-income country. Reforms are on the way to strengthen the local market to further accelerate economic development.
Digital Bangladesh is a key part of the vision, which aims to digitize public services to streamline bureaucratic processes. This provides great opportunities for startups to work on government projects, and it also impacts the business environment as the projects improve the ease of doing business.
Consumers are willing to spend more if that means that they are getting better quality for the product categories that matter to them, which is rather uncommon in emerging markets.
Mobile technologies are rapidly adopted and accelerate consumption. About 80 million people use smart phones and mobile internet today. After China, Bangladesh has one of the highest number of mobile financial transactions worldwide as consumers make the leap from cash payment to mobile payment, creating opportunities for reaching households through mobile services.
Bangladesh has a young working-age population with a median age in the country of 24. Together with the 2 million Bangladeshis that rise into the middle class every year and 3.4 million students currently enrolled in universities, they provide a strong base for rising consumption and a skilled workforce in the near future.
Being successful in Bangladesh requires local
market expertise and a ramped-up presence with a strong network. However, companies that move now can build their competitive advantage in one of the world’s fastest growing markets. To many people of the outside world, Bangladesh remains a poor and hopeless country. It is time to take a new
look and to shape the future of a highly underestimated market with rapid development.