Chinese global appliances player Gree’s rise to market leadership in Bangladesh traces back to an unlikely starting point, with imported units sold without warranties, where performance and durability alone built trust and shaped consumer confidence.
Homegrown Electro Mart Group introduced Gree ACs in the nascent Bangladesh market in 1998 with a competitive pricing strategy, often without formal guarantees.
But the units’ performance and durability spoke for the brand, and word-of-mouth cemented a reputation for reliability, said Electro Mart Group Deputy Managing Director Md Nurul Afser.
In an interview with TIMES of Bangladesh, he said, “That informal trust has since evolved into structured assurance.”
Customers now receive a 12-year compressor replacement warranty alongside up to five years for other components.
The scale is equally striking. Around 35 to 40 out of every 100 air conditioners sold in Bangladesh are now Gree units, according to industry insiders.
Behind the brand sits a broader industrial story. Electro Mart Ltd, founded in 1980 by Chairman Mohammed Nurun Newaz Selim as a small trading business in Chattogram, has grown into one of the country’s leading electronics companies.
It moved from importing products to distributing and later manufacturing global brands such as Konka, Gree and Haiko.
The company now operates Trade International Industries Ltd in Narayanganj, where it manufactures and assembles appliances.
It began local assembly and manufacturing around 2020 through technical collaboration, reflecting a wider shift in Bangladesh’s electronics sector from import dependence to domestic production.
What began as a venture of a few lakh taka has evolved into a conglomerate valued at over Tk2,000 crore.
The broader market has undergone a structural shift. Record heatwaves over the past two years have changed how consumers view cooling, pushing air conditioners into the category of everyday essentials, particularly among middle-income households and in semi-urban and rural areas.
Demand is expected to grow by 15–20 per cent in 2026, Afser said, supported by expansion into district towns and rising first-time adoption.
Yet the growth curve has not been smooth. The industry expanded at 15–20 per cent annually for about five years before flattening or declining in 2025.
Election-related uncertainty, an unelected government context and broader economic slowdown weighed on demand, while a cooler summer with higher rainfall further reduced urgency among buyers.
The contrast with 2024 remains sharp. That year marked the strongest performance, with record temperatures driving sales to around 7 lakh units and retailers running out of stock.
Seasonality continues to shape demand. More than half of annual AC sales occur between April and July, the hot season in Bangladesh, although temperature variations driven by rainfall and other factors can shift demand year to year.
Technology is now at the centre of competition. Inverter air conditioners account for around 70 per cent to over 80 per cent of sales, up from about 5 per cent a decade ago, according to Afser.
Their ability to reduce electricity consumption by up to 60 per cent has made them central to purchasing decisions, and they are expected to dominate nearly the entire market in the coming years.
Non-inverter units, however, continue to serve a niche segment, including small retail shops, offices, first-time buyers and certain commercial users where usage hours are limited and upfront costs remain a key consideration.
First-time buyers now account for 60–70 per cent of demand, signalling that the market is still young and expanding beyond replacement cycles.
Innovation is shaping the next phase. The Gree Airy inverter series integrates artificial intelligence to optimise cooling performance. Sensors analyse room temperature, humidity and occupancy patterns to adjust compressor performance automatically.
This delivers an additional 10–15 per cent energy savings compared to conventional inverter models by reducing unnecessary compressor load while maintaining stable and comfortable cooling.
The system also features Wi-Fi and Bluetooth connectivity, voice control and a cold plasma sterilisation function capable of eliminating up to 93 per cent of bacteria and viruses.
Environmental and cost dynamics are also influencing the sector. The transition to R32 refrigerant reflects lower global warming potential, although dependence on imported components and fluctuations in the US dollar continue to create cost pressure.
Electro Mart is positioning for the next phase of growth. The company is investing more than Tk500 crore to expand production capacity, with a target of selling 5 lakh Gree air conditioners annually.
What is emerging is a market no longer defined solely by seasons or cities.
Cooling demand in Bangladesh is becoming structural, spreading across income groups and geographies, with technology, local manufacturing and climate pressures driving the industry forward.
