Dr. Sikder Md. Anowarul Islam
August 05, 2014
(Published in LinkedIn)
There are many popular brand produce and exporting to the developing countries to get a market share and maximizing revenue. People of the developing countries preferred the overseas brand not only to consume but also increase their personal value proposition. Purchasing a brand product is not always necessary for the low income people but they are eager to purchase the same since they found these products have quality and easy acceptability to the consumers and society due to adaptation of culture and increasing their personal value proposition. The per capita GDP of Bangladesh is USD 625.13 and PPP is 1622.94 respectively as on 2013. There are 30 million people live in Dhaka city in Bangladesh. The per capita income of the Dhaka city is estimated in and average USD1500.
The per capita household income of Dhaka city is USD 4500 if a family member consists of 3 persons in and average which is greater than per capita income of India, China, Indonesia, Pakistan, Afghanistan, Philippines, Myanmar, Iran and Thailand. Purchase of consumer good depends on household buying behavior especially for Brand product. The market of 30 million people is not too small to expedite the Brand product. It is greater than the market size of Singapore and Thailand where the size of the population is only 5.40 and 67.01 million respectively, as on 2013. The growing developing countries market is expanding due to climate change and adverse impact of nature. Household expenditure is increasing specially for AC and electronics items for increasing global warming. Average temperature increased up to 42-45 degree Celsius and accordingly the cost of labor is increased up to 30 to 40 percent in summer.
Middle income people of Dhaka city can afford competitive price of AC and electronics products for their household consumption. But due to rationing of electricity the market of electric appliances are shrinking. Government policy for luxury products are implicit welfare augmented. We usually purchase old car as we normally called reconditioned car. The total landed cost of old car is estimated on FOB price is more or less up to 300 percent higher including duty and taxes to import in Bangladesh. These reconditioned old cars are not environment friendly but the developing countries are importing these so called reconditioned cars by more or less 300 percent higher import cost in the name of so called welfare maximization. Still 96 percent cars are so called recondition old cars that we are treating as new in Bangladesh as well as developing countries.
But the unfortunate legacy for us, we do not understand why we buy old reconditioned cars, since we can afford new family cars in place of old cars if the Government policy is changed to reduce import duty and taxes to avoid environmental distortion. The cost of living in developing countries are increasing due to global warming and green house effect. Bangladesh is highly effected country due to acute global warming and accordingly the risk management of global warming in product and brand management is not efficient in Bangladesh. We need to expedite our revenue by producing environment friendly products and brands instead of importing old and reconditioned items.
There are integrated implicit environmental distortions are facing by the general people of developing countries. It was thought that environment problem is integrated in macro level management but there are many aspects need to be taken in consideration in micro level of product and brand management to face the acute environmental problem and their solutions in developing countries. ( Data Source: World Bank, Primary Data )