Online marketing business in Bangladesh

Online marketing business in Bangladesh

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The online marketing business in Bangladesh has grown significantly over the past few years, driven by increased internet penetration, mobile usage, and the rising popularity of e-commerce. Here’s an overview of the current state of online marketing in Bangladesh:

Market Landscape

  1. Growth of Digital Marketing: The digital marketing industry in Bangladesh has seen substantial growth, with businesses increasingly allocating budgets to online advertising. The total digital advertising expenditure in Bangladesh is expected to surpass $200 million, reflecting a growing recognition of the importance of digital presence for brands​.
  2. Popular Platforms: Social media platforms, particularly Facebook, have become crucial for online marketing strategies. With millions of active users, Facebook serves as a primary channel for businesses to reach their target audience through paid ads and organic content​. Other platforms like Instagram, LinkedIn, and YouTube are also gaining traction for brand engagement and advertising.

Strategies Employed

  1. Content Marketing: Many companies are focusing on content marketing to build brand awareness and engage consumers. This includes blogging, video marketing, and infographics that resonate with local audiences​.
  2. Influencer Marketing: Collaborating with local influencers has become a popular strategy for brands to enhance their reach and credibility. Influencers can help brands connect with niche audiences, leveraging their established trust and rapport​.
  3. Search Engine Optimization (SEO): As more businesses establish an online presence, SEO has become essential for driving organic traffic. Companies are investing in optimizing their websites to rank higher on search engines, ensuring better visibility​.

Challenges

  1. Digital Literacy: While internet usage is increasing, digital literacy remains a challenge in some segments of the population. Many small businesses struggle to adopt effective online marketing strategies due to a lack of understanding of digital tools and platforms​
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  2. Competition: The rapid growth of online marketing has led to increased competition among brands. Differentiating oneself in a crowded marketplace requires innovative strategies and creative campaigns​.

Future Prospects

The future of online marketing in Bangladesh looks promising, with a projected increase in digital ad spending and the continued rise of e-commerce. Brands are expected to increasingly invest in data analytics to better understand consumer behavior and refine their marketing strategies accordingly​.

Conclusion

Online marketing in Bangladesh is evolving rapidly, driven by technological advancements and changing consumer behaviors. As more businesses recognize the potential of digital channels, the landscape is expected to grow even more dynamic and competitive.

By Ahmed Shoyeb Iqbal

Most success Marketing Strategist of Bangladesh

Most success Marketing Strategist of Bangladesh

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Identifying the “most successful” marketing strategist in Bangladesh is subjective, as success can be measured in various ways—impact on brand growth, innovation, leadership, or influence in the industry. However, several professionals are widely recognized for their marketing brilliance. Here are a few names that are often cited:

1. Syed Alamgir

  • CEO, Akij Ventures
  • Key Contributions: Syed Alamgir is known for introducing the concept of “Halal Soap” with the brand Kohinoor Detergent, which resonated strongly with Bangladesh’s Muslim consumers. This culturally tailored marketing innovation made him a household name in the industry. Alamgir’s deep understanding of local market dynamics and consumer preferences has consistently driven brand success, both at Jamuna Group and later at Akij Group.

2. Rubaba Dowla

  • Country Managing Director, Oracle Bangladesh
  • Key Contributions: Rubaba Dowla played a vital role in transforming Airtel Bangladesh into a youthful and dynamic brand through strategic marketing. She was instrumental in building Airtel’s brand image, particularly focusing on customer engagement and digital transformation. She is now influencing the technology sector with her strategic leadership at Oracle Bangladesh.

3. Asif Iqbal

  • Executive Director (Marketing), Meghna Group of Industries (MGI)
  • Key Contributions: Asif Iqbal has been pivotal in establishing and growing brands like Fresh under Meghna Group, making it a household name. His deep knowledge of consumer behavior and market dynamics helped him successfully position the brand as one of the top players in the FMCG sector.

4. Ahmed Shoyeb Iqbal

  • Chief Operating Officer, Meena Bazar
  • Key Contributions: Ahmed Shoyeb Iqbal has played a key role in expanding Meena Bazar‘s e-commerce platform, Meena Click. He has also contributed to the growth of the retail chain in Bangladesh by integrating traditional retail with modern online services​
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    .

5. Ziauddin Adil

  • CEO, Top of Mind
  • Key Contributions: Ziauddin Adil leads one of the most prominent advertising and media agencies in Bangladesh. His leadership at Top of Mind has helped brands achieve national recognition through integrated marketing and media strategies. His expertise has influenced advertising strategies across a wide range of industries, from FMCG to telecommunications.

6. Ayman Sadiq

  • Founder, 10 Minute School
  • Key Contributions: Ayman Sadiq has effectively used content marketing to build 10 Minute School, Bangladesh’s largest online educational platform. His strategic use of digital platforms and social media has made educational content widely accessible, engaging millions of students across the country.

Each of these individuals has made significant contributions to shaping the marketing landscape in Bangladesh, using innovative and culturally relevant strategies to drive growth in their respective fields.

By Ahmed Shoyeb Iqbal

AI in Modern Trade

AI in Modern Trade

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Artificial Intelligence (AI) is revolutionizing modern trade by automating processes, optimizing supply chains, enhancing customer experience, and enabling personalized marketing strategies. Modern trade includes organized retail formats such as supermarkets, hypermarkets, and e-commerce platforms, all of which benefit significantly from AI technologies. Here’s how AI is shaping modern trade:

1. Customer Experience Enhancement

  • Personalized Recommendations: AI algorithms analyze customers’ buying behaviors, preferences, and browsing history to offer tailored product recommendations. E-commerce platforms like Amazon and Chaldal utilize AI-driven recommendation engines to suggest items based on customer activity, improving the shopping experience.
  • Chatbots and Virtual Assistants: AI-powered chatbots provide 24/7 customer support, answer queries, assist with product searches, and even handle complaints. This is particularly useful for online platforms, but is also being integrated into mobile apps and websites of brick-and-mortar stores.
  • AI in Physical Stores: Some retailers employ AI to analyze customer behavior in physical stores, tracking which areas or products attract the most attention. This data helps retailers design better store layouts and improve customer engagement.
  • Voice Commerce: Voice-activated shopping is becoming a reality with AI assistants like Alexa and Google Assistant, allowing customers to place orders using voice commands, making the shopping process more seamless.

2. Supply Chain Optimization

  • AI for Demand Forecasting: AI uses historical sales data, seasonality, and trends to predict future demand accurately. This helps retailers optimize inventory, avoiding stockouts or overstocking, which is particularly useful for perishables in food retail.
  • Warehouse Automation: AI-driven robots and automation systems are used in warehouses to pick, pack, and sort products. AI improves warehouse efficiency by ensuring that products are handled correctly and stored optimally.
  • Route Optimization: AI helps optimize delivery routes for e-commerce and supply chain logistics by analyzing traffic, weather, and route data, ensuring faster and more cost-effective deliveries.

3. Dynamic Pricing

  • AI-Driven Price Optimization: AI helps modern trade retailers set dynamic prices based on real-time factors such as demand, competition, customer behavior, and inventory levels. This is especially useful for e-commerce platforms that need to stay competitive in pricing while maximizing profitability.
  • Competitive Pricing Analysis: AI systems track competitors’ prices in real time and adjust the retailer’s prices accordingly, helping maintain a competitive edge.

4. Inventory Management

  • Automated Stock Management: AI streamlines inventory tracking by automatically updating stock levels as items are sold. It can predict when certain items will run out and trigger restocking orders, reducing manual errors and stock discrepancies.
  • AI for Shrinkage Reduction: AI can detect unusual patterns in inventory movement and sales that may indicate theft or loss, thus helping retailers reduce shrinkage.

5. Fraud Detection and Security

  • AI-Powered Fraud Prevention: E-commerce platforms use AI to detect and prevent fraudulent transactions by identifying abnormal behavior patterns, protecting both the retailer and the consumer.
  • Security and Surveillance: AI-powered surveillance systems in stores detect suspicious activity, monitor customer behavior, and improve store safety. Some systems also analyze shopper traffic to optimize store layouts.

6. Automated Checkout Systems

  • Cashier-Less Stores: AI is behind the rise of cashier-less stores like Amazon Go, where customers simply pick up items and leave. AI-powered cameras and sensors track what customers purchase, and the system automatically charges them as they exit the store, creating a seamless shopping experience.
  • Self-Checkout Solutions: AI is used in self-checkout kiosks to speed up the payment process and reduce lines in supermarkets and hypermarkets.

7. AI in Marketing and Sales

  • Targeted Marketing: AI helps retailers personalize marketing campaigns based on customer data, sending tailored promotions and product offers. This leads to higher engagement and conversion rates.
  • Customer Segmentation: AI algorithms analyze purchasing data to segment customers into different groups, enabling more effective targeting with promotions, loyalty programs, and advertisements.

8. Sustainability and Waste Reduction

  • Reducing Food Waste: AI helps retailers forecast demand more accurately, reducing food waste by ensuring that only the necessary quantity of perishable goods is ordered and stocked.
  • Sustainable Practices: AI helps optimize energy consumption in stores, reducing operational costs and environmental impact. It can also track product sustainability across the supply chain, ensuring eco-friendly sourcing.

9. Online Retail Optimization

  • Predictive Analytics: AI analyzes customer data to predict shopping patterns, enabling e-commerce platforms to offer better deals, stock popular items, and ensure timely delivery.
  • Recommendation Engines: AI-driven engines on e-commerce websites enhance cross-selling and upselling by suggesting complementary products, boosting overall sales.
  • Visual Search: AI-powered visual search tools allow customers to upload images of products they want to purchase, and the system suggests similar items available in the store.

10. Challenges in AI Adoption in Modern Trade

  • High Initial Costs: Implementing AI systems, especially in smaller retail operations, can be expensive, requiring substantial investment in hardware, software, and expertise.
  • Data Privacy Concerns: AI relies heavily on customer data, raising concerns about data security and privacy. Retailers must ensure that they comply with regulations and protect consumer information.
  • Integration with Legacy Systems: Many retailers still operate with traditional systems, and integrating AI solutions with these legacy systems can be challenging and time-consuming.

Conclusion

AI is reshaping modern trade by improving efficiency, enhancing customer experience, and driving revenue growth. Whether through automated inventory management, personalized shopping experiences. Or optimized logistics, AI’s role in modern trade will only grow, as retailers seek to become more agile, customer-focused. In regions like Bangladesh, while adoption is still developing, the potential for AI in modern trade is significant. Particularly as more retailers transition to digital platforms and e-commerce expands further.

By Ahmed Shoyeb Iqbal

Artificial Intelligence in Modern Trade

Artificial Intelligence in Modern Trade

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Artificial Intelligence (AI) is transforming the modern trade landscape globally, and in countries like Bangladesh, it’s beginning to make a significant impact on retail operations, enhancing customer experiences and optimizing supply chains. Modern trade refers to organized retail formats such as supermarkets, hypermarkets, and e-commerce platforms, which can benefit immensely from AI technologies. Here’s how AI is influencing modern trade:

1. Enhanced Customer Experience

  • Personalized Recommendations: AI-powered recommendation engines analyze customer behavior, purchase history, and preferences to provide personalized product suggestions. This is commonly seen in online platforms like Amazon or Chaldal, where AI algorithms drive product recommendations that match customer preferences.
  • Chatbots and Virtual Assistants: AI-powered chatbots provide real-time customer service on e-commerce websites and mobile apps. For instance, a customer looking for specific grocery items on an online platform can interact with a chatbot to receive recommendations or ask questions about product availability.
  • Voice Commerce: With the rise of AI-driven voice assistants like Amazon’s Alexa and Google Assistant, consumers can now shop using voice commands. Though this is more prevalent in developed markets, it’s slowly gaining ground in regions like Bangladesh as well.

2. Inventory Management and Demand Forecasting

  • Automated Inventory Tracking: AI helps modern retailers optimize their inventory levels. Using data from previous sales patterns, AI can predict which products are likely to be in high demand, helping retailers manage stock more efficiently. For example, Shwapno and Meena Bazar can use AI to ensure that fast-moving consumer goods (FMCGs) are always available while minimizing overstocking of less popular items.
  • Demand Forecasting: AI-powered algorithms analyze various factors such as seasonal trends, consumer buying behavior, and even weather patterns to forecast demand more accurately. This helps retailers plan ahead, reducing waste in perishable items and ensuring product availability during peak shopping periods.
  • Dynamic Pricing: AI enables dynamic pricing strategies, where the system adjusts product prices in real-time based on demand, competition, and stock levels. This can help retailers stay competitive while maximizing profitability.

3. Supply Chain Optimization

  • AI in Logistics and Distribution: AI helps modern trade outlets streamline logistics by optimizing routes for delivery and reducing transportation costs. Retailers can use AI to track delivery vehicles, predict traffic conditions, and optimize delivery routes, ensuring that products reach stores or customers more efficiently.
  • Smart Warehousing: AI-powered robots and automated systems can manage warehouses with greater efficiency. They can track inventory in real-time, automate the restocking process, and ensure that products are packed and shipped quickly. This is especially beneficial for large e-commerce platforms with extensive logistics needs.
  • Supply Chain Transparency: AI can help retailers track the entire supply chain from farm to shelf. This ensures that products, particularly perishables like fresh produce, are handled properly, enhancing food safety and reducing spoilage.

4. AI-Powered Marketing and Sales

  • Targeted Marketing Campaigns: AI analyzes customer data to create targeted marketing campaigns. Retailers can segment their customers based on purchase patterns, demographics, and preferences, sending personalized promotions and offers through email, SMS, or in-app notifications. For instance, a supermarket chain like Agora could use AI to offer discounts to frequent buyers of specific products based on their past purchases.
  • Customer Behavior Analysis: AI tools help retailers understand consumer shopping habits and preferences, identifying trends that can be used to enhance in-store experiences or promote products more effectively. This can be used to improve store layouts, create better product assortments, and design loyalty programs.

5. Automated Checkouts and Smart Stores

  • AI-Powered Checkout Systems: AI is transforming the checkout process with automated systems like Amazon Go stores, where customers can pick up items and leave without waiting in a checkout line. AI-powered sensors and computer vision track what customers purchase, and payments are automatically processed through their mobile apps. While this concept is still emerging in Bangladesh, it represents the future of shopping experiences.
  • In-Store Robots: AI-powered robots are being introduced in modern trade outlets to assist with in-store tasks, such as stocking shelves, guiding customers to specific products, or even offering product information. These robots enhance operational efficiency and customer engagement.

6. Fraud Detection and Security

  • AI-Driven Fraud Detection: In the e-commerce space, AI is critical in detecting fraudulent transactions. By analyzing transaction patterns, AI can identify potential fraud and alert retailers or payment platforms. This is particularly useful for large online platforms where numerous transactions occur every day.
  • AI-Powered Surveillance: Modern retail stores are increasingly using AI-based surveillance systems to monitor store activities, prevent theft, and ensure safety. AI can also analyze shopper behavior, providing insights into in-store traffic and customer preferences.

7. Customer Sentiment Analysis

  • AI in Social Listening: Retailers use AI to monitor social media and customer reviews to understand consumer sentiment about their products or brands. This allows companies to respond quickly to negative feedback, improve products, and create strategies to enhance brand loyalty.
  • Product Feedback and Reviews: AI can analyze vast amounts of customer reviews and feedback to detect patterns, highlighting which products are receiving the most positive or negative comments. Retailers can then use this data to make informed decisions about stocking, promoting, or discontinuing certain products.

8. Sustainability and Waste Reduction

  • AI for Sustainable Practices: Retailers can leverage AI to promote sustainability by reducing food waste, optimizing energy consumption, and managing resources efficiently. For example, AI-driven analytics can track which perishable goods are approaching their expiry date, enabling stores to offer promotions or discounts to sell them before they go to waste.
  • Eco-Friendly Supply Chain Management: AI can help retailers make their supply chains more eco-friendly by suggesting optimal transportation routes that reduce fuel consumption or identifying suppliers who follow sustainable practices.

9. AI in E-commerce

  • Predictive Analytics: AI uses predictive analytics in e-commerce platforms to recommend products, predict consumer demand, and streamline online marketing efforts. AI algorithms on platforms like Chaldal or Shwapno Online can personalize shopping experiences by predicting what items customers might need based on their previous purchases or search history.
  • AI in Delivery Optimization: E-commerce platforms use AI to optimize delivery routes and schedules, ensuring fast and cost-effective shipping. This is particularly important for companies dealing with fresh produce and perishable goods, where timely delivery is crucial.

10. Challenges in AI Adoption

  • Cost of Implementation: Implementing AI solutions can be expensive, especially for smaller retail chains and businesses. The cost of AI infrastructure, maintenance, and skilled personnel can be prohibitive for some retailers in Bangladesh.
  • Data Privacy and Security: The use of AI relies heavily on data collection, raising concerns about data privacy and security. Retailers must ensure that they have robust data protection policies in place to avoid breaches and maintain customer trust.
  • Infrastructure and Expertise: In Bangladesh, many retailers face infrastructure challenges, including reliable internet access and technical expertise. These issues can hinder the widespread adoption of AI technologies.

Conclusion

AI is revolutionizing modern trade by offering innovative solutions that enhance customer experience, optimize operations, and drive profitability. In Bangladesh, while AI adoption is still in its early stages, it holds tremendous potential for the retail sector, especially with the rapid growth of e-commerce and organized retail formats. As technology continues to evolve, AI will play an even more significant role in shaping the future of food retail, supermarkets, and e-commerce in the country.

By Ahmed Shoyeb Iqbal

Food Retail in Bangladesh

Food Retail in Bangladesh

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Food retail in Bangladesh is a dynamic and evolving sector, driven by changing consumer behavior, urbanization, and rising disposable incomes. The food retail market can be broadly categorized into traditional retail (wet markets, small grocery shops) and modern retail (supermarkets, hypermarkets, and online platforms). While traditional retail still dominates, modern food retail is gaining traction, especially in urban areas. Here’s an overview of food retail in Bangladesh:

1. Traditional Food Retail

  • Small Grocery Shops (Kirana Stores): These are the most common form of food retail in Bangladesh. Located in almost every neighborhood, these stores sell essential food items such as rice, lentils, spices, cooking oil, and packaged goods. Customers value these stores for their proximity, convenience, and credit facilities.
  • Wet Markets (Bazars): Open-air markets are another critical part of food retail in Bangladesh. These markets typically sell fresh produce, including fruits, vegetables, fish, meat, and poultry. Wet markets are popular because of the availability of fresh, locally sourced products. Major wet markets, such as Karwan Bazar and New Market in Dhaka, are key hubs for food purchases.
  • Street Vendors: In both rural and urban areas, food retailing by street vendors is widespread. They sell fresh produce, snacks, and cooked foods at affordable prices and are a vital part of the informal economy.

2. Modern Food Retail

  • Supermarkets and Hypermarkets: Over the last two decades, modern food retail outlets have grown rapidly in cities like Dhaka, Chittagong, Sylhet, and Khulna. These outlets offer a clean, organized shopping environment, fixed pricing, and a wider variety of food items, including fresh produce, packaged goods, frozen foods, and imported products. Key players include:
    • Shwapno: The largest supermarket chain in Bangladesh, with over 200 outlets across the country. Shwapno offers a wide variety of fresh produce, groceries, and household items, appealing to middle-class and upper-middle-class consumers.
    • Meena Bazar: A well-established supermarket chain that focuses on high-quality food products, particularly fresh produce, groceries, and imported goods. Meena Bazar operates in major cities and has a strong brand presence in the premium food retail market.
    • Agora: One of the first supermarket chains in Bangladesh, Agora is known for its commitment to food safety and quality, especially fresh produce and meat products.
    • Unimart: A high-end hypermarket catering to affluent customers, Unimart offers premium groceries, imported food items, and household goods, including a wide range of organic and specialty products.
  • Convenience Stores: Convenience stores are also growing in popularity in urban centers. These stores offer basic food items, snacks, and ready-to-eat foods, catering to consumers looking for quick, convenient purchases.

  • Online Food Retail:

    E-commerce has rapidly expanded in Bangladesh, particularly in the food retail sector. Online grocery platforms offer home delivery services, catering to the growing demand for convenience. Key players include:

    • Chaldal: The largest online grocery platform in Bangladesh, offering a wide range of fresh food, groceries, and household products. It operates mainly in Dhaka and Chittagong, with fast delivery services that appeal to busy urban consumers.
    • Shwapno Online: Shwapno’s online platform allows customers to order groceries and fresh food for home delivery, combining the offline supermarket’s product range with the convenience of e-commerce.
    • MeenaClick: The online grocery shopping platform of Meena Bazar offers a selection of groceries, fresh produce, and household products, with delivery services available in Dhaka and other cities.
    • Foodpanda Groceries: Expanding beyond restaurant delivery, Foodpanda now offers grocery delivery services, partnering with local stores to provide fresh food and essentials to urban households.

3. Consumer Behavior and Trends in Food Retail

  • Urbanization: With more people moving to urban centers, the demand for modern food retail formats such as supermarkets and hypermarkets is increasing. Urban consumers are more inclined to value convenience, hygiene, and product variety.
  • Rising Middle-Class Incomes: As disposable incomes increase, middle- and upper-middle-class consumers are willing to spend more on quality food, branded products, and premium offerings, driving the growth of modern retail outlets.
  • Health and Wellness Consciousness: There is a growing awareness of healthy eating and food safety. Consumers are increasingly opting for organic products, healthier cooking oils, and packaged goods with transparent labeling. Supermarkets and online retailers are capitalizing on this trend by stocking a variety of health-oriented food items.
  • Demand for Imported Foods: With rising incomes and greater exposure to global trends, demand for imported and international food products is increasing, especially in urban areas. Supermarkets often stock a wide range of international brands, packaged foods, and specialty items.
  • Convenience and Online Shopping: The busy lifestyles of urban consumers are pushing the demand for online grocery shopping and quick home deliveries. The pandemic accelerated this trend, with more consumers opting for online platforms like Chaldal and Shwapno Online to avoid crowded markets.

4. Challenges Facing Food Retail

  • Supply Chain Inefficiencies: While modern retail is expanding, many food retailers still face challenges with sourcing and maintaining a reliable supply chain. Inadequate cold storage facilities, transportation issues, and inconsistent product availability can affect both traditional and modern retailers.
  • Competition from Traditional Retail: Despite the growth of supermarkets, traditional food retailers, including kirana stores and wet markets, continue to dominate in many parts of Bangladesh. Their proximity, personalized service, and competitive prices remain attractive to consumers.
  • Consumer Trust and Habits: Many consumers, especially in rural and semi-urban areas, still prefer to buy fresh produce and food items from local markets or familiar vendors. These purchasing habits are deeply ingrained and can be a barrier for the growth of modern retail formats.
  • Regulatory and Quality Control Issues: Food safety regulations are often inconsistent, and enforcement can be lax. Ensuring consistent quality control, particularly in the handling of fresh produce and meat products, is a challenge for both traditional and modern food retailers.

5. Regulatory Environment

  • The government plays an important role in regulating food prices, particularly for essential commodities like rice, wheat, and cooking oil. Price controls are often imposed during major festivals or periods of inflation to ensure affordability for the general population.
  • Food safety regulations have been strengthened in recent years, with initiatives aimed at improving food quality, handling, and labeling standards. However, challenges remain in terms of enforcement and monitoring.

6. Future Prospects for Food Retail

  • Growth of Supermarkets and Hypermarkets: With the rising demand for convenience and quality, the supermarket sector is expected to expand further in urban areas. Leading chains like Shwapno, Meena Bazar, and Agora are likely to open more outlets and expand their product offerings to meet consumer demand.
  • E-commerce Growth: Online food retail will continue to grow, particularly in urban areas where internet penetration is higher, and consumers are more tech-savvy. The convenience of online shopping, coupled with home delivery services, is becoming an essential part of the food retail landscape.
  • Expansion to Smaller Cities: As disposable incomes rise in smaller cities and towns, food retailers are expected to expand into these areas. Supermarkets and online platforms will likely target tier-2 and tier-3 cities in the coming years.
  • Sustainability: There is a growing trend toward sustainable practices in food retail, with consumers showing increasing interest in locally sourced, organic, and eco-friendly products. Retailers are beginning to incorporate these options to meet the demand for sustainable and ethical food consumption.

Conclusion

Food retail in Bangladesh is experiencing a shift from traditional markets to modern retail formats, driven by urbanization, rising incomes, and changing consumer preferences. While traditional food retail remains dominant, supermarkets, hypermarkets, and online platforms are gaining popularity, particularly in urban areas. The sector’s future growth will be shaped by continued urban expansion, the rise of e-commerce, and an increasing focus on health, wellness, and sustainability.

By Ahmed Shoyeb Iqbal

The Big Picture of Online Education Business

The Big Picture of Online Education Business

by with No Comment publications
The pandemic was dreadful Business, but one of the best things that drastically improved was online education. Looking back, in the last two decades, the Internet has evolved into the world’s largest and most accessible database of information.

Apart from online shopping, e-commerce, and every other thing the Internet blessed us with, it also transformed people’s perspectives on online education and training. Online schooling is transforming the look of traditional classroom settings and making education easier and more accessible than ever before.

As a result, many EdTech startups are gradually developing. Though many success stories are written about them, no one usually talks about the big picture of their business.

Evolution of online education 

Online education, also known as e-learning, m-learning, computer-aided distance education (or CADE), is very popular these days. Who doesn’t want to save money, time, and energy, right? Thanks to online education, students may learn from anywhere with internet and electricity connections.

Globally, schools were closed due to the Covid-19 pandemic. Over 1.2 billion students from 186 nations were out of the classroom. As a result, education has evolved tremendously, with the emergence of e-learning, where instruction is done remotely and fully digitally. Some wonder if the acceptance of online learning would continue post-pandemic and how such a transition might affect the global education sector. Let’s look at some data regarding this.

Global EdTech investments reached$18.66 billion in 2019, and the whole industry for online education is estimated to reach $350bn by 2025. Since Covid-19, the utilization of language apps, virtual tutoring, video conferencing, and online learning software has increased significantly.

Pre-pandemic and post-pandemic world 

Prior to Covid-19, distance education was growing slowly but steadily. In 2018, 34.7% of college students took at least one online course, up from 33.1% in 2017. People are now following this online education trend as it is ROI driven. For instance, people, after completing their undergrads, get into jobs, and it becomes difficult for them to balance work and higher studies.

That’s where the EdTech companies are also focusing on; flexibility, affordability, and domain specific skills. Another positive aspect is that earlier, we all had to go through a system of learning, for instance, primary school, secondary, higher secondary, university, and even work and higher studies.

But the concept of education is now broadening thanks to different EdTech platforms, boot camps, and trainings, resulting in lifelong learning and skills development. Children are also now learning coding and robotics.

Major players of online education in the international markets 

The market is flooded with online learning platforms that serve millions of people. While Skillshare caters to creatives with animation, photography, and lifestyle courses, Coursera caters to academics with university courses. The world’s top universities are also democratizing education by offering online courses.

Both Stanford and Harvard offer online courses in computer science, engineering, mathematics, business, art, and personal development. All of this shows that people want to learn online.

The rapid change of the world may be the reason for the high demand and rapid market growth. Udemy president Darren Shimkus says, “The biggest challenge for learners is to figure out what skills are emerging, what they can do to compete best in the global market.”

Let’s look at some of the popular EdTech platforms and their features.

edX

  • Founded by Harvard and MIT
  • 2,500+ online courses for free
  • About 145 of the courses are from Harvard, ranging from public health to history to programming and poetry
  • These classes are free to audit, but you can pay $50-200 for features like graded homework and completion certificates for your resume or LinkedIn profile

Coursera

  • An online learning platform with lecturers from prominent colleges including John Hopkins and Stanford
  • There are over 4,300 courses, 450 specializations, 440 projects, and 20 degrees available on Coursera’s website
  • Due to the pandemic, platform users grew by 66% in 2020

Udemy

  • Over 40 million students, 70,000 teachers, and 155,000 courses offered in 65 languages
  • It is an open marketplace where anyone can build a course
  • Students and instructors from over 180 countries have enrolled in over 480 million courses

Capturing the EdTech market 

The Indian EdTech ecosystem has also matured. According to KPMG, India has around 3,500 EdTech startups, and these Indian EdTechs have already made a mark on the global EdTech market. In 2020, Bengaluru-based Byju’s became India’s third decacorn and the highest valued unicorn at $16.5bn.

By 2018, US EdTech businesses had raised $1.45 billion. Moreover, 44.1%, equivalent to $16.34bn, of global investment in EdTech in 2018 came from China. The Chinese EdTech sector has grown exponentially, with 423 million online education users in March 2020.

By January 2020, a few EdTech companies were worth over $1bn. According to the EdSurge financing database, the US EdTech industry raised approximately $2.2bn in 130 acquisitions. Globally, EdTech investment is expected to reach $8 trillion by 2025.

CompanyCountryLast Round TypeValuation
ByJu’sIndia$350M Series F$16.5B
YuanfudaoChina$300M Series G Top Up$15.5B
ZuoyebangChina$1.6B Series E+$10.0B
VIPKidChina$150M VC/PE Round$4.5B
ArticulateUnited States$1.5B Series A$3.75B
UnacademyIndia$440M Series H$3.4B
UdemyUnited StatesSeries F Top Up$3.3B
EmeritusIndia$650M Series E$3.2B
ApplyBoardCanada$300M Series D$3.2B

 

Financial and non-financial benefits

Online education is frequently less expensive to students. Online programs eliminate the need for expensive campus accommodation, transportation, and other expenditures such as student fees, gyms, computer laboratories, etc. Hence, an online student can save hundreds of dollars per month.

However, EdTech platforms made creating and selling courses more effortless than ever. Many of the tools and equipment required to develop a course are easy to use and produce excellent results. Online courses also provide a passive income source. Creating and selling a course can help you financially business.

If your course is online, you can have students from any time zone. However, quality online courses take time to prepare. Your success depends on the demand for your course and your ability to attract your target market. Unfortunately, it’s difficult to optimize your profits while keeping your course cheap for students.

Looking on the bright side, online learning provides teachers and students greater convenience, access, and flexibility. It also makes classrooms more engaging. Many teachers indicate that students perform better in online courses. Online courses that are well-run tend to boost student retention and satisfaction. Online education also reaches a large audience. These classes are not age, class, or location restricted.

On the other hand, for teachers or trainers who have been using traditional teaching methods for several years, learning about online learning may be difficult and complex. Online learning does not necessitate significant technical abilities, but participants must be comfortable using computers and the internet. Slow internet can also be frustrating, especially in rural locations for business.

What are the challenges?

The EdTech market is bound to have some competition. The providers must fight for the right to sell their products to customers. The most notable examples include technological challenges in education due to a lack of funding. And this is in a market where potential demand far outnumbers supply, with millions of schools, thousands of colleges, and universities waiting for the right time to upgrade technologically.

There are also contentious EdTech business issues, such as whether scaling or monetization should be the top priority for providers in the field. Investors prefer to work with long-standing, established businesses that can consistently generate consistent profits.

As a result, the scale-first-monetize-later business development strategy is becoming more popular in the field. Some of the other challenges include a long sales cycle, limited budget, over-saturated market, slow-moving in accepting innovation, non-sustainable monetization model, achievability for non-technical users, finding competent tutors etc.

Bangladesh in EdTech 

EdTech is currently thriving in Bangladesh. 10 Minute School is a Bangladeshi EdTech pioneer. The company tested an EdTech operation in Bangladesh in 2014. The company was founded by Ayman Sadiq as a YouTube channel. It quickly evolved into the country’s most popular EdTech company.

Many EdTech companies have arisen; some have acquired financing, gained traction, and begun expanding. Tracxn and Crunchbase estimate that at present there are 90 EdTech startups in Bangladesh. Let’s look at some of the popular ones.

10 Minute School

  • Offers online video lectures for students in grades 1–12, university examinations, IELTS, and GRE prep
  • Has 1.79 million subscribers
  • 20,000 video tutorials and 50,000 quizzes,
  • The 10 Minute School mobile app has been downloaded over a million times

Interactive Cares

  • Launched in 2019
  • Includes over 40 courses and 30,000 students
  • They have courses on Python, JavaScript, Django, Full Stack Web Development, IELTS, GRE
  • Launched Complete Preparation on ISSB, a military training course
  • Raised seed funding through BYLC Ventures’ start-up accelerator program

Shikho

  • Launched in 2018
  • Have 80 animated video lessons totaling 700 minutes, 3500 questions and answers, 700 notes, and 1000 illustrations for SSC General Mathematics business
  • Raised a pre-seed fund of $175,000 in December and a seed investment of $1.3m in July, the greatest money collection for a Bangladeshi EdTech business

Upskill

  • Debuted in Bangladesh in 2016
  • Bridges the technical skills gap between job seekers and employers
  • Offers over 34 video lessons for Tk3,000 per year
  • Upskill Library now has over 22 certified trainers
  • The company raised over $100,000 in seed capital in February 2021

However, in Bangladesh, we don’t really have enough online courses and platforms for the kids compared to college and university-level students. This gap can be reduced if more platforms take initiatives for kids.

Now, what might the future of the EdTech community in Bangladesh look like? Well, in the first half of 2021, Bangladeshi Edtech startups raised approximately $2m. Edtechs had a 5% market share in the education market prior to the pandemic, and it is expected to increase to 10% after the pandemic. Experts predict that the market for Edtechs in Bangladesh will reach 700 million USD by 2025. In the near future, this rapidly growing industry is expected to be the torchbearer of the Bangladeshi start-up community.

The future of EdTech industry 

Tech-based learning is the future of education. Establishing an effective environment that helps learners develop industry-relevant skills was previously optional, but now it’s possible just by a few clicks. This pandemic has demonstrated how useful and necessary online learning tools are; when the world came to a halt. Hence, online EdTech companies were highly benefited as their products became popular and also a necessity to the students.

Because of the sudden demand for online education, experts in education and learning believe the EdTech industry will only increase in the coming days. Entrepreneurs will use technology to develop highly tailored learning opportunities, make education available to all, and scale the industry in new and unexpected ways. EdTech has the potential to fundamentally alter education as we know it.

From 2010 to 2019, EdTech VC investments grew to $7bn. HolonIQ predicted $87bn in VC funding over the next decade (2020-2029). So far in 2021, EdTech VC funding has reached $26bn with $10bn in the first half. So the initial $87bn prediction may reach $200bn by 2030. A $10 trillion global EdTech market is expected by 2030, according to HolonIQ. China leads the world in VC fundraising, with over 50% of funds raised, followed by the US and India. Check

We can all agree that the transition from onsite to online learning was inevitable. However, after seeing the above data, we can all believe that we will still continue using online platforms to make learning effective and useful.

Conclusion 

David Warlick said, “We need technology in every classroom and in every student and teacher’s hand, because it is the pen and paper of our time, and it is the lens through which we experience much of our world.” I hope by now we all know the importance and the future of the EdTech industry. Last but not the least, we all must be welcoming to the new changes and new innovations.

Digital Disruption and Its Impact on Business

Digital Disruption and Its Impact on Business

by with No Comment publications

Digital Disruption and Its Impact on Business:

By Ahmed Shoyeb Iqbal

Imagine you are in a super shop queue to pay for the things you bought. Did you ever notice all the products you buy from a super shop are scanned by a bar code reader? Super shops use barcodes to keep track of all in-stock and out-stock products and quickly generate the invoice and checkout. The benefit of using a barcode is if a product is less than a certain number, for example, 10, a notification or alert message will directly go to the manufacturer to send over the product before it stocks out. Amazing, right?
This is just one example of digital disruption that’s happening around us. If you look carefully, you’ll notice a lot of such examples. From super shops to the telecom industry, garments sector, mobile banking, digital payment platform, you name it, you see it! Like with time, the human race is evolving, and we’re moving towards a digital future. And digital disruption is one of the first steps towards moving to a digital future! By definition, digital disruption is an effect that changes the expectation and the operations in an industry, market, or process caused by digital assets and capacities.

Digital disruption might be helpful or harmful depending on the type of business and other associated factors; while some companies can be benefitted, others can be affected. And it is applicable for both SMEs and big players. The main game is when you can take advantage of the disruption and act accordingly.

So, if you are an entrepreneur looking for ways to save your business from digital disruption, or you are here to know how you can take advantage of this disruption, then you are at the right place!

 

Traditional vs. Digital business model

Before we jump into the advantages of disruption, let’s look at different types of business models first. For an entrepreneur, it is tough and challenging to run a business. But for now, I would want you to take a minute and imagine being a customer. Keeping in mind the current pandemic situation, you would like to shop, order, even pay bills online, right?
So, if you go back to being an entrepreneur, which business model would you prefer? I hope you have found the answer to your question!
Traditional Business Model
Organizations with any kind of office setup and selling products and services through physical stores fall under Traditional Business Model. In a traditional business model, the role of manufacturer, distributor, and the retailer is significant. Here, B2B and B2C models are followed to make the business smooth.