Super Shop in Bangladesh

Super Shop in Bangladesh

Super shops in Bangladesh, also known as supermarkets, represent a growing segment of the retail landscape, especially in urban centers like Dhaka, Chittagong, and Sylhet. These stores offer a modern, convenient, and hygienic shopping experience, catering primarily to middle- and upper-middle-class consumers. Here’s an overview of the super shop culture in Bangladesh:

1. Definition of Super Shops

  • Super shops in Bangladesh are self-service retail outlets that sell a wide variety of products, including groceries, fresh produce, household items, personal care products, and in some cases, apparel and electronics.
  • These stores operate on fixed pricing models, offering an alternative to traditional open markets and kiryana stores where prices may vary, and haggling is common.

2. Key Players in the Super Shop Market

  • Shwapno: The largest supermarket chain in Bangladesh, Shwapno operates more than 200 stores across the country, offering a variety of products, from fresh food and groceries to household essentials. It caters to urban customers and offers both physical and online shopping options.
  • Meena Bazar: Another prominent name in the super shop industry, Meena Bazar operates in major cities and is known for its premium products and a wide selection of both local and imported items. The chain focuses on food safety and quality, appealing to middle- and upper-class customers.
  • Agora: One of the first modern retail chains in Bangladesh, Agora is recognized for offering high-quality, fresh food products in clean and organized stores. Its focus on food safety has made it popular among health-conscious consumers.
  • Unimart: Positioned as a high-end supermarket, Unimart offers premium products, including a wide range of imported goods. It caters to more affluent consumers, offering groceries, household items, electronics, and lifestyle products.
  • Prince Bazar: A smaller chain, Prince Bazar offers a similar product range as the bigger chains but operates on a more localized scale, appealing to customers who prefer a more neighborhood-oriented shopping experience.

3. Characteristics of Super Shops

  • Wide Product Range: Super shops provide a diverse selection of products, from fresh fruits and vegetables to imported snacks, beverages, dairy products, and frozen foods. They often stock personal care items, cleaning supplies, and household necessities.
  • Hygienic Shopping Environment: One of the major draws of super shops is the clean and organized environment they provide compared to traditional markets. This is particularly important for urban customers who are increasingly health-conscious and concerned about food safety.
  • Convenience: Super shops provide a one-stop shopping experience, where customers can buy a variety of items in one visit, without the need to visit multiple vendors.
  • Fixed Pricing: Unlike traditional shops where haggling is common, super shops operate on fixed prices, ensuring price transparency. Customers generally trust these outlets for consistent pricing.

4. Consumer Trends and Preferences

  • Urbanization: The rapid expansion of urban areas in Bangladesh has fueled the demand for super shops, as city dwellers increasingly value the convenience, hygiene, and variety offered by these outlets.
  • Time-Saving: As more people lead busy lives, particularly in dual-income households, the ability to shop for all household needs in one place is a major draw for super shops.
  • Health and Safety: Since the COVID-19 pandemic, there has been a growing emphasis on health and safety, with more consumers gravitating towards super shops that provide a cleaner and more hygienic shopping environment than traditional open-air markets.
  • Brand Consciousness: Middle- and upper-middle-class consumers are increasingly brand-conscious, seeking both local and international brands for their groceries, personal care products, and household goods. Super shops cater to this demand by stocking a mix of well-known and premium brands.

5. Challenges for Super Shops

  • Competition from Traditional Markets: Despite the growth of super shops, traditional markets and small neighborhood shops still dominate much of the retail landscape in Bangladesh, particularly in rural and semi-urban areas. These traditional stores often have lower operating costs and can offer competitive prices.
  • Supply Chain and Logistics: Super shops, especially those dealing with fresh produce and perishables, face challenges in maintaining efficient supply chains. Managing inventory to avoid stockouts or spoilage can be difficult, particularly in a country with infrastructure limitations.
  • Consumer Loyalty: Many consumers, especially in rural and semi-urban areas, remain loyal to their local kiryana stores due to personal relationships with shopkeepers, proximity, and the ability to buy on credit.

6. Online Integration

  • Many super shop chains have embraced e-commerce to reach more consumers, especially in cities where internet penetration and smartphone use are high.
  • Shwapno Online and MeenaClick (Meena Bazar’s online store) allow customers to shop for groceries and household items from the convenience of their homes, with delivery services across major cities. This has helped them tap into the growing online grocery shopping trend, particularly after the COVID-19 pandemic.
  • Chaldal: While not a traditional super shop, Chaldal is the largest online grocery platform in Bangladesh, competing with physical super shops by offering a wide range of products and rapid delivery services.

7. Impact of the COVID-19 Pandemic

  • The pandemic accelerated the shift toward modern retail formats, including super shops, as consumers became more concerned about hygiene and physical distancing. Super shops implemented safety measures such as sanitizing stores, maintaining social distancing, and providing delivery services, which helped boost their appeal.
  • Online shopping for groceries surged during the pandemic, with platforms like Chaldal and the online arms of super shops seeing significant growth in order volumes.

8. Future of Super Shops in Bangladesh

  • Expansion into Smaller Cities: As disposable incomes rise in smaller cities and towns, there is potential for the expansion of super shops beyond the major metropolitan areas. Chains like Shwapno and Meena Bazar are expected to explore more opportunities in tier-2 and tier-3 cities.
  • Technology Integration: The use of technology in inventory management, customer service, and delivery logistics will become increasingly important for the growth of super shops. Mobile apps, digital payments, and data-driven customer loyalty programs are likely to become more prevalent.
  • Sustainability: As consumers become more environmentally conscious, super shops may increasingly adopt sustainable practices, such as reducing plastic packaging, promoting local produce, and incorporating eco-friendly products into their offerings.

Conclusion

Super shops in Bangladesh are playing a crucial role in the transformation of the retail sector, particularly in urban areas. They offer a modern, convenient, and hygienic shopping experience that appeals to a growing middle class with rising disposable incomes and a preference for quality, convenience, and brand variety. While super shops face challenges such as competition from traditional markets and logistical issues, the sector is poised for further growth, especially with increasing online integration and expansion into smaller cities.

By Ahmed Shoyeb Iqbal

Organized Retail in Bangladesh

Organized Retail in Bangladesh

Organized retail in Bangladesh is gradually gaining momentum, driven by increasing urbanization, rising incomes, and changing consumer behavior. Although traditional retail (such as open markets and small local shops) still dominates, the country has seen steady growth in modern, organized retail formats such as supermarkets, shopping malls, and branded retail chains. Here’s an overview of the organized retail sector in Bangladesh:

1. Key Characteristics of Organized Retail

  • Standardized Practices: Organized retail refers to retailers operating with standardized and professional practices, including proper supply chain management, pricing strategies, modern store layouts, and customer service.
  • Variety of Goods: These stores offer a wide range of products, including groceries, apparel, electronics, household items, and lifestyle products, often under one roof.
  • Chain Stores: Many organized retail players have multiple outlets across cities, ensuring consistency in quality, pricing, and service.

2. Types of Organized Retail

  • Supermarkets and Hypermarkets:
    • Chains like Shwapno, Meena Bazar, Agora, and Unimart are leading the organized retail scene, particularly in grocery and household goods.
    • These stores focus on providing customers with a clean shopping environment, fixed prices, and a wide selection of local and imported products.
    • Supermarkets are primarily focused on food and FMCG (fast-moving consumer goods), while larger hypermarkets (like Unimart) also offer clothing, electronics, and home goods.
  • Shopping Malls:
    • Jamuna Future Park in Dhaka, one of the largest malls in South Asia, symbolizes the growing trend of shopping malls in Bangladesh. Other prominent malls include Bashundhara City and Metro Shopping Mall.
    • These malls house various organized retail stores, including international brands, local fashion brands, electronics, and dining options, providing an all-in-one shopping and entertainment experience.
  • Apparel and Lifestyle Brands:
    • Bangladesh’s textile and apparel sector is world-renowned, and brands like Aarong, Yellow, Cats Eye, Kay Kraft, and Dorji Bari operate organized retail outlets across the country.
    • International brands such as Levi’s, H&M, and Adidas are also entering the market through organized retail stores.
  • Electronics and Appliances:
    • Major retail chains such as Rangs Electronics, Transcom Digital, and Best Electronics operate organized retail outlets across Bangladesh, offering a range of home appliances, smartphones, computers, and other electronics.

3. Growth Drivers

  • Urbanization: The rapid growth of cities like Dhaka, Chittagong, and Sylhet has fueled the demand for modern retail formats. Urban consumers are increasingly drawn to organized retail due to convenience, quality, and variety.
  • Rising Middle Class: As income levels rise, particularly among the urban middle class, consumers are willing to spend more on quality products, brands, and an improved shopping experience.
  • Changing Lifestyles: The shift towards nuclear families, a busier lifestyle, and increased exposure to global retail trends (thanks to international travel and social media) are pushing consumers toward organized retail formats.
  • Foreign Investment: Bangladesh’s growing economy and large population have attracted foreign investment in the retail sector, leading to an influx of international brands and retail chains.

4. Online Retail and E-commerce

  • While still in its early stages compared to other South Asian markets, online retail is growing rapidly in Bangladesh. Platforms like Daraz, Pickaboo, and Evaly (prior to its downfall) have created a robust online retail ecosystem.
  • Several organized brick-and-mortar retailers, like Shwapno and Meena Bazar, have also launched online stores to cater to the growing demand for e-commerce.
  • Chaldal, primarily focused on groceries, has become a major player in online organized retail.

5. Challenges Facing Organized Retail

  • High Real Estate Costs: The cost of real estate in prime urban locations is high, making it expensive for organized retailers to expand their physical presence.
  • Supply Chain Inefficiencies: Despite improvements, many organized retailers still face challenges with logistics and supply chain management, especially in terms of sourcing fresh produce and managing inventory efficiently.
  • Competition from Informal Sector: Traditional markets and informal retail, which operate with lower overheads and greater flexibility, remain tough competitors for organized retail, especially in semi-urban and rural areas.
  • Regulatory Hurdles: Inconsistent regulations, such as taxes and import duties, sometimes hinder the smooth operation of organized retail chains, especially for those dealing in imported goods.

6. Consumer Preferences and Trends

  • Convenience and Experience: Consumers increasingly value the convenience of organized retail, where they can shop for a variety of products under one roof. Additionally, the in-store experience—air-conditioned environments, clean facilities, and organized product displays—is an attraction.
  • Brand Consciousness: With greater exposure to global trends and brands, Bangladeshi consumers, especially younger generations, are becoming more brand-conscious, driving demand for both local and international brands.
  • Omnichannel Shopping: Many organized retailers are now adopting an omnichannel approach, where customers can browse products online and either have them delivered to their homes or pick them up in-store.

7. Future Prospects

  • Expansion into Tier 2 Cities: As Dhaka and Chittagong become more saturated, organized retailers are expanding into other urban centers like Khulna, Sylhet, Rajshahi, and Barishal, where middle-class populations are growing.
  • Technology Integration: The use of technology, including data analytics, digital payments, and customer loyalty programs, is expected to drive the growth of organized retail. Retailers are increasingly investing in improving the customer experience through mobile apps and digital marketing.
  • Sustainability: With a growing awareness of environmental issues, there is an emerging trend towards sustainable and ethical retail practices. Some retailers are adopting eco-friendly packaging, promoting local products, and emphasizing corporate social responsibility (CSR).

Conclusion

The organized retail sector in Bangladesh is evolving rapidly, driven by urbanization, rising incomes, and changing consumer expectations. While traditional markets remain dominant, organized retail is gaining ground, particularly in urban areas, offering consumers greater convenience, choice, and quality. As infrastructure improves and the middle class expands, the future of organized retail in Bangladesh looks promising, with continued growth and innovation expected in the coming years.

By Ahmed Shoyeb Iqbal

Grocery Retail in Bangladesh

Grocery Retail in Bangladesh

Grocery retail in Bangladesh has evolved significantly over the years, moving from traditional open markets (bazaars) and small neighborhood stores (kiryana shops) to the emergence of supermarkets, convenience stores, and online grocery shopping. Below are some key aspects of the grocery retail landscape in Bangladesh:

1. Traditional Markets

  • Open Markets and Kiryana Stores: Historically, most grocery shopping in Bangladesh has been done in open-air markets (commonly known as bazars) and neighborhood kiryana stores. These stores offer a wide range of products, including fresh vegetables, fish, meat, and essential household goods. They remain very popular due to their proximity and the opportunity for bargaining.

2. Supermarkets and Convenience Stores

  • Growth of Supermarkets: The rise of supermarkets, especially in urban centers like Dhaka, Chittagong, and Sylhet, has changed how urban consumers shop. Chains like Shwapno, Meena Bazar, Agora, and Unimart have gained popularity for providing clean and organized shopping environments with a wide variety of local and imported goods.
  • Product Range: Supermarkets usually stock groceries, fresh produce, meat, dairy, household items, and personal care products, catering to a middle- and upper-middle-class audience.
  • Convenience: The key appeal of supermarkets is convenience, fixed prices, and a wide selection of products under one roof.

3. Online Grocery Retail

  • E-commerce Growth: In recent years, especially after the COVID-19 pandemic, there has been a surge in online grocery shopping. Platforms like Chaldal, Khaas Food, and Shwapno Online have made it easier for consumers to shop for groceries from the comfort of their homes.
  • Chaldal: Chaldal is one of the largest online grocery platforms in Bangladesh, offering fast delivery and a wide range of products, from fresh produce to household essentials.
  • Challenges: Despite growth, online grocery retail faces challenges such as logistics, trust in online payments, and ensuring the freshness of perishable items.

4. Consumer Preferences

  • Price Sensitivity: The Bangladeshi consumer is generally price-sensitive, with a large segment of the population still opting for traditional markets due to perceived affordability.
  • Quality and Convenience: For urban and middle-class consumers, quality, convenience, and hygiene are becoming more important. This has contributed to the growth of supermarkets and online platforms.

5. Local and Imported Goods

  • Local Dominance: The majority of grocery products sold are locally produced, particularly fresh vegetables, fish, rice, and fruits. Bangladesh has a strong agricultural sector that supports the local grocery retail market.
  • Imported Goods: Supermarkets cater to affluent consumers by stocking a range of imported goods, including specialty foods, beverages, and international brands.

6. Challenges

  • Supply Chain: One of the challenges faced by grocery retailers is managing supply chains effectively. Disruptions due to infrastructure, weather, or political events can affect the availability of goods.
  • Perishable Goods: Handling and maintaining the freshness of perishable goods such as fish, meat, and vegetables can be a challenge, especially for online platforms.

7. Regulatory Environment

  • The government is involved in regulating pricing for essential goods, especially during religious festivals like Ramadan. Price controls help prevent unfair inflation, although enforcement is sometimes inconsistent.

8. Future Trends

  • Continued Urbanization: As urbanization increases, the demand for modern retail formats is expected to grow. Supermarkets and online platforms will likely continue expanding, particularly in cities.
  • Technological Integration: Cashless payments, mobile apps, and delivery innovations are helping shape the future of grocery retail in Bangladesh.

In conclusion, the grocery retail market in Bangladesh is a dynamic sector with a mix of traditional and modern shopping formats. While traditional bazaars remain dominant, urbanization and changing consumer preferences are driving the growth of supermarkets and e-commerce platforms, marking a shift in the retail landscape.

By Ahmed Shoyeb Iqbal

Innovation in the Agricultural Sector

Innovation in the Agricultural Sector

Innovation in the Agricultural Sector:

The agricultural sector is one of the most crucial economic aspects of Bangladesh. Suffering from poverty and starvation to becoming a “medium hunger” country, the rise of the nation’s agro sector is commendable.

However, even after showing remarkable progress in the agricultural sector, the country still needs an “agricultural revolution” to achieve a zero-hunger rate in the near future.

Although implementing various digital solutions in the agro farms has been one of the biggest visions of the government, there is still a need for a sustainable model to revolutionize the country’s agriculture efficiently. And in such case, Bangladesh can gain some valuable insights from the “Dutch Agricultural Revolution.”

As a global leader in agricultural innovation and exports, the Netherlands implemented advanced water management, sustainable farming practices, and technological advancements to transform their agro sector effectively. Bangladesh can adopt these techniques and technologies to expedite its progress and achieve their goals more efficiently.

 

Innovation in Bangladesh agricultural sector: A comparison with The Dutch Agriculture and Innovations

Innovation is the key to an enhanced agricultural system in an economy. Modernization and digitalization in the agricultural sector can not only ensure the food security of the nation but also contribute to sustainable development.

And when it comes to innovation and digitalization in the agricultural sector, the Netherlands has built a name for itself as a pioneer. The Dutch can produce twice as much food using their available resources and technologies.

In 2022, the Dutch agricultural farms produced 4 million cows, 13 million pigs, and 104 million chickens, with nearly 24,000 acres of various crops and others. Such an amount of agricultural production not only fulfilled the Netherlands’ demand but also allowed the country to export worldwide. In fiscal year 2022, the Dutch economy earned an estimated 49.6 billion euros from agricultural exports, which made it the second-largest exporter of agricultural produce in the world.

But then again, Bangladesh isn’t too far behind in achieving self-sufficiency in food production. As the Bangladesh Agricultural Research Institute (BARI) and other research institutions are constantly researching and inventing newer technologies, Bangladesh has achieved remarkable progress in the agricultural sector. It has achieved an astonishing 3.54 percent increase in production per year (1999-2019) and is walking steadily to become like the Dutch agricultural sector.

Although there is a notable difference in agricultural innovation and digitalization in Bangladesh and the Dutch economy, both countries are working to achieve a sustainable environment.

A comparison of Bangladesh and the Dutch Agricultural Sector

Let’s have a look through the table for a quick view at how Bangladesh agricultural sector differs from the Dutch one because of modern innovations and technologies.

IMG_2674

What is the current land area of the Netherlands, including the portion underwater, and how does their production capacity compare to that of Bangladesh?

The Netherlands is a relatively smaller country (41,850 km²) in western Europe, with 26% of its land (approximately 10,881 km²) situated under the sea level.

However, even though a larger portion of its land is underwater, this country still allocated 22.000 km² (2.2 million hectares) of land for agriculture. Using these lands and other necessary resources, the Netherlands produced 4 million cows, 13 million pigs, 104 million chickens, and nearly 24,000 acres of various crops and others. Such a phenomenal number of agro production was possible only because of their Smart Agro techniques and technologies.

However, the same cannot be said about the Bangladesh Agro sector. This nation has a total land area of 148,460 km² with 18,290 km2 of Bangladesh is underwater. Compared to the Netherlands, Bangladesh has more land area and available land for agriculture (79,600 km²). Yet, they fail to produce as many agro-products as the Dutch.

The nation produced 58.5 million tons of rice and other paddy, 14.07 million metric tons of milk, and 8.71 million metric tons of meat in 2023. Still they needed to import agro products worth $15 billion to fulfill the demand of the people of the country.

Discussion on the overall agricultural revolution of the Dutch

Referring to the “Dutch Agricultural Revolution”, the agricultural revolution in the Netherlands not only played a significant role in the country’s overall economic development but also contributed to world food production as a whole. Now, the Netherlands is the Second (2nd) largest agricultural exporter in the world.

However, the scenario was not always as such. During the “Golden Century” of the Netherlands, the population of the Capital grew from 30,000 to 200,000 within a short span of time. Such a dense population indicated that now the Dutch had more people to feed with limited resources, and therefore, they needed to find solutions for increased food production using the resources they had.

During the 17th and 18th centuries, the Dutch researched, invented, and developed more than a few agricultural techniques and technologies, like four-crop rotation, reaping machines, and others, to increase agricultural productivity and efficiency.

Here are some key aspects of the Dutch Agricultural Revolution:

Crop rotation and increased food production

Even though over half of the land in the Netherlands is used for agriculture, they still adopted the crop rotation technique to increase food production and simultaneously enhance the fertility of the soil.

Over the years, they developed a four-crop rotation to cut down the fallow period and increase soil fertility significantly. This technique increased food production (as all fields were used all year round) and enhanced feed for livestock. And when there was more food for livestock, the size of the herd and the production of meat, milk, and fertilizers also increased exceptionally.

Land reclamation and water management

A significant number of Dutch lands was and is still under the water. The Dutch people employed advanced techniques, like extensive impoldering, to reclaim these lands from the sea and inland water bodies for agricultural use. This innovative approach increased the amount of arable land available for agricultural use and hence, facilitated agricultural growth eventually.

In addition to using dikes, canals, and pumps, the nation also used windmills to pump water from agricultural land so that they don’t get affected by floods in any way.

Specializing in commercial agriculture

While increasing food production, the Dutch farmers also paid attention to cultivating high-value crops and livestock products that had high demand in urban markets and for export.

As this country has favorable weather conditions and enriched soil, the Government also aided the farmers with incentives and other facilities to enhance production efficiently. Besides fulfilling the nation’s demand, it also helped them to earn from abroad.

Research and technological innovations

Various technological and digital innovations played a great role in the Dutch Agricultural Revolution, and there is no doubt about that.

The nation invested enormous amount of time and money on Research & Development for their agricultural techniques and technologies. Many agricultural research institutions, including Wageningen University & Research (WUR), focused on innovating new agricultural tools and machinery, newer plant breeding, and sustainable farming practices to increase efficiency as well as productivity.

Besides embracing modern technologies and mechanization, the Netherlands also adopted greenhouse technology to revolutionize agro production. The use of greenhouses allowed the Dutch to cultivate crops all year round (fresh produce) and ensured a steady supply of fresh fruits and vegetables to both national and international markets.

What lessons can Bangladesh learn from the Dutch to effectively overcome their food challenge?

With the government’s support and the private sector’s investment, the agro sector of Bangladesh has shown remarkable progress over the last decade. With a Global Hunger Index of 19.0 in 2023, Bangladesh has now become a nation with a “moderate hunger rate,” while it was under a “serious hunger rate” just two decades ago.

IMG_2673

However, the nation is still not independent in food production. Bangladesh can learn a few things from the Dutch Agro System to effectively overcome its food challenges. Some of the lessons that the country can adopt from the Netherlands are:

Adopt advanced water management and land reclamation

Just like the Netherlands, a considerable amount of land in Bangladesh is also underwater. However, while the Dutch took land reclamation seriously, BD still needs to consider this technique to increase land for agricultural purposes.

The government and related parties can launch land reclamation and water management projects (especially in flood-prone areas and coastal regions) to increase arable land. Advanced irrigation techniques and water management practices can be developed for efficient irrigation infrastructure, ensure water availability throughout the year, and improve agricultural productivity like never before.

Invest in technological innovations

Although the Government of Bangladesh has allocated a huge budget for agricultural innovations and research & development, the nation needs to facilitate modern farming equipment and machinery to achieve the Dutch level of food independence. Advanced agricultural technology and infrastructure, like improved plows, seed drills, threshers, and greenhouses can boost efficiency and productivity in the near future.

Promote greenhouse farming

Even though Bangladesh doesn’t suffer from extreme weather conditions, introducing greenhouse farming can be beneficial. Greenhouses can protect the crops from pests and other weather conditions, hence, increasing quality as well as production.

Ensure financial support and risk management

Unlike the Dutch, Bangladesh farmers don’t enjoy easy and accessible credit facilities to invest in their farming. The government of Bangladesh should provide comprehensive farming credit facilities so that the farmers can adopt modern farming practices and technologies for efficiency. Introduction of crop insurance extensively can be a key initiative in this sector.

How can Bangladesh be independent in food production and supply?

Bangladesh holds the 14th position globally for the production of primary crop commodities, with a production of 93.3 million tons in 2021.

However, even after producing such a large volume, the nation is still unable to meet the food demand of the people and requires importing food from around the world. But importing means spending a large amount of dollars, which isn’t right for the economy as a whole.

Here are a few ways that Bangladesh can adopt to become independent in food production and supply:

Enhancing agricultural productivity is the key

One of the primary ways to achieve self-dependency in food production is by simply increasing agricultural productivity. Using improved, disease-resistant, and climate-resilient seeds, adopting modern farming techniques, and enhancing irrigation infrastructure can increase agro production significantly.

However, root-level farmers won’t be able to implement such things. The government of Bangladesh and the related parties should take the initiative to provide all the necessary resources to increase food production efficiently.

Adopting sustainable farming practices helps. Sustainable farming techniques like planting diversified crops and integrating plants and shrubs into agricultural land can reduce the risk of crop failure and improve soil health for enhanced production. By ensuring the best practices on the agro farm, Bangladesh can increase the food production and ensure adequate supply.

Implementing smart agro practices can enhance food production

The nation can also become self-dependent on food production by applying various advanced digital technologies and practices in its agricultural operations. Digital practices like internet connectivity, electricity, and proper devices not only give greater control over production processes but also increases efficiency, productivity, sustainability, and profitability significantly.

Allocating more of the budget to the agro sector in Bangladesh

The government of Bangladesh needs to allocate more of its budget to the agro sector to accelerate growth and increase food production than ever before. Even though the government has allocated Tk43,700 crore as agro budget (5.7% of the total budget) with a subsidy allocation of Tk17,533 crore in FY2023-24, they need to make sure that the money is spent right. Providing affordable fertilizers, better seeds, improved irrigation facilities, and other essential materials to the farmers can help the farming process and eventually increase crop production.

Spending more on research and innovation

The importance of research and innovation in Bangladesh’s agro sector is inevitable. Researching and inventing newer technologies, climate-resilient crops, and sustainable agricultural practices can pave the way for the nation to achieve food independence in the near future.

To fuel the research in the agro section, the government of Bangladesh has allocated BDT 16,336 crore for R&D in the agricultural sector so that they can try better and quicker farming techniques for enhanced food production.

Building better roads and highways

Investing and increasing crop production won’t alone bring food independence to Bangladesh. To make the nation self-dependent on food, better roads and highways need to be built all over the country. Improved communication all over the region would definitely make it easier to transport food to every corner of the nation.

Wrapping up

The agricultural sector is crucial to Bangladesh’s economy, but the country still needs an “Agricultural Revolution” similar to the Netherlands to achieve a zero-hunger rate.

Undoubtedly, Bangladesh has improved and increased its agro sector by adopting and implementing newer innovations and technologies. However, the nation’s progress in agriculture still requires significant innovation to reduce dependency on food imports.

By following the agro model of the Dutch, Bangladesh can surely walk towards food independency in the near future. Besides implementing crop rotation, better land and water management Bangladesh must increase investment in agricultural research, promote modern farming techniques, and ensure better infrastructure and financial support for farmers. By adopting these strategies, Bangladesh can achieve sustainable development and greater food security.

Ahmed Shoyeb Iqbal is head of operations at Dhaka Tribune.

Is Bangladesh Ready for the Digital Future?

Is Bangladesh Ready for the Digital Future?

Is Bangladesh ready for the digital future?

Imagine feeling hungry, but you don’t have any food at home. You can order food from Food panda or order groceries from Chaldal.com. This was not even imaginable ten years back. Thanks to digitalization and the rise of such e-commerce, everything is possible with a few clicks!
The term ‘digital Bangladesh’ is a familiar concept for all of us living in Bangladesh. Everyone is familiar with this term, from a primary school student of Dhaka city to a child from a rural area. We have heard and read about it a lot, be it on the TV, radio, newspaper, or even our textbook. How many of you have memorized an essay entitled “Digital Bangladesh” in your school? I bet the answer is many.
However, by constantly hearing or reading something every other day, we tend to ignore its impact. For example, most of us use Wifi these days, whenever the network connection becomes poor, we get furious, right? But do you remember the time when we used a “modem” for using the internet? Or the time when load-shedding was a common thing and the struggles associated with those nightmarish hours? I hope now you realize how digitalization is making our life easier and better.

Digitalization has impacted not only on technology enhancement but also the socio-economic development of our country. Even during the covid-19 pandemic, everything developed rapidly.

Working from home, online shopping, paying bills, everything has become a lot easier now. Look at all the e-commerce that’s expanding! But if we compare ourselves with other developed countries using AI, robots, faster internet speed, we still have a long way to go. Now the question arises, is Bangladesh ready for the digital future?

Organizational structure & challenges

The organizational structures and challenges play an essential role in digitalizing a country. We are all aware that Bangladesh has a bureaucratic system in most private organizations, not just public ones. Even though the situation has been changing with higher exposure to technology, the speed of change is not as rapid as in many other countries. In all countries, employees traditionally resist change, but bureaucratic cultures further associate this tendency.

Whenever the discussion of digitalization comes in, change is inevitable. Hence, it challenges not just the processes but also the status quo and the layers of organizational hierarchies, which many people are not in favor of. For instance, digitalization can reduce the need for middle managers, enabling more direct communication through lesser channels. This scenario can culminate into strong organizational resistance and have to be handled with sensitivity and caution.

For instance, we can learn from The Development Bank of Singapore Limited (DBS Bank) one of the largest banks in Southeast Asia. This bank has shifted their entire organizational structure to “digital technology as an infrastructure platform for growth and to accelerate the pace for the tech savvy Asian customers”. They believe that in the future, people won’t need a bank but they will surely need banking. Hence, they merged their technology and operations into one and the team lead directly communicated with the CEO for better and faster outcomes. This also reduced the level of bureaucracy. They also designed a platform for their employees and customers to give feedback, which they discussed in their meeting to make their services better.

Now the question is, is it possible to implement this in Bangladesh? Definitely! But digitalization has to be implemented with people’s enthusiastic contribution and participation to be effective, not by forcing it on people. Also, the challenges need to be considered and handled appropriately, giving the people in an organization the time and space to adapt. People are also skeptical about shifting towards a technology-based system because of privacy and safety concerns which needs to be ensured as well.

Business nature

There are immense benefits of digital transformation to improve a service or a product. Digitalization affects the systems, workflow, and everything by bringing together data from each level of the company and making their goal effective. With the help of AI and machine learning, organizations can help a customer according to their preference, which was unimaginable in the past.
However, the companies undergoing digital transformation measure their digital initiatives’ success rate like they used to measure ROI from previous projects. ROI varies from one digital program to the other, but some benefits are always interrelated or interdependent. The benefits include increased efficiency and productivity, resiliency, resource management, better customer experience, agility, responsiveness, increased revenue, stay relevant, and many more.

Some services in Bangladesh can progress with digital transformation. For example, buying train tickets online. Though the system exists, it is somewhat faulty. It needs to be more user-friendly so that the customers don’t have to print the ticket to get on the train. Financial security has always been an issue in our country.

Though digital financial services like Bkash, Nagod, etc., are becoming popular, many people still do not completely trust the concept. Businesses should create more awareness to ensure the security of the customer and to encourage them to use more features than just “Send Money” and “Cash Out”.

Industries have an excellent opportunity for digital transformation. They can reduce the cost, produce better quality, add value and streamline processes to reduce the waste of resources. All these are possible if proper transformation takes place.
AHMED SHOYEB IQBAL

How Netflix and Amazon Prime Video are Revolutionizing

How Netflix and Amazon Prime Video are Revolutionizing Home Entertainment

How Netflix and Amazon Prime Video are Revolutionizing Home Entertainment:

People have been obliged to stay inside their homes to stop the spread of the coronavirus since Covid-19 has negatively impacted the majority of the global economy and industries.

People have also been utterly bored due to the lack of activities.

In this locked-up situation, your Netflix account, which has thousands of exciting films, series, and shows, might have been your closest confidant.

How Netflix and Amazon Prime Video are Revolutionizing Home Entertainment:

Whether it’s a major service like Netflix, Disney Plus, or HBO Max or specialized streaming service for kids or enthusiasts of anime like Crunchyroll, horror films, or Asian dramas like Rakuten Viki, streaming TV dominates entertainment in homes all over the world.

And now more options than ever are available to us, and they are always evolving.

Their algorithm helps us categorize all our favourite genres.

From our recent watches, they develop the most similar watchlists within seconds.

 

With a much larger subscriber base than HBO Max (74 million) and Disney+ (87.6 million), which is offered in fewer countries, Netflix has 220.6 million users worldwide. More than 190 different countries provide Netflix streaming.

Their collection of TV series and films differs by region and is subject to periodic modification.

Notably, China, Crimea, North Korea, Russia, and Syria do not have Netflix.

Case study of Netflix

Marc Randolph and Reed Hastings came up with the concept for launching a service that offered online movie rentals on August 29, 1997, in Scotts Valley, California, where Netflix was first established.

With only 30 employees and 925 titles accessible when it first opened its rental stores, the business used a pay-per-rent model with rates and due dates.

This represented nearly the complete selection of DVDs that were then available in print.

With a $2 delivery fee, rentals cost about $4. Netflix opted to transition to a subscriber-based business after experiencing tremendous growth.

There were 4.2 million Netflix subscribers by the year 2005.

On October 1, 2006, Netflix announced a $1,000,000 award for the first person to create a video recommendation system that could outperform Cinematch, the company’s current algorithm, by more than 10% in predicting consumer ratings.

Three Primetime Emmy Awards were given to Netflix’s “House of Cards” series in 2013.

By 2014, Netflix had expanded into six European nations and had won seven creative Emmy Awards for its work on “House of Cards” and “Orange Is the New Black.”

With the emergence of streaming services, Netflix amassed more than 50 million subscribers worldwide.

By 2016, Netflix had a global audience, and the corporation has since pushed to increase its subscriber base while producing more original content.

From that moment on, Netflix was unstoppable, and today it dominates the video-on-demand market on a global scale.

Netflix’s business model

The platform now uses streaming technologies, which have elevated and enhanced Netflix’s overall organizational structure and financial performance.

The following major trends, which are incorporated into Netflix’s current business strategy, are fueling its exponential growth:

  • Technology: allows for smooth content viewing across a variety of platforms;
  • Comfort: People who frequently rent movies, enjoy movies, and want to get the best value for their money do not have time to go out and browse for movies; they want comfort when content is provided to them;
  • On demand: having access to content wherever you are and whenever you want;
  • Subscription: dependency, minimal monthly costs, and a straightforward framework;
  • Data-driven creation: proactive content creation that takes into account individual preferences, in addition, to use for recommendations.

How does Amazon Prime make money?

One of the most popular video streaming services is Amazon Prime Video.

When it comes to earning money, it’s also one of the more complicated hybrid SVOD (subscription video on demand) and TVOD (transactional video on demand) businesses.

The service’s parent firm, Amazon, receives a revenue report from the service.

The absence of a set monthly price is another factor.

Instead, Amazon Prime Video relies on the sizable annual subscriber base of Prime members, who pay $119 annually to make use of all that Prime has to offer.

At the end of 2019, sources indicated that Amazon Prime Video had 96.5 million subscribers and was still growing.

Among the numerous divisions of the business, Prime Video has comparatively low overhead expenditures.

However, with Amazon hiring swiftly to grow the Prime Video team in 15 offices across international countries, those are soon changing.

However, Prime Video’s utilization of the widely used Amazon Web Services may be its most advantageous resource for developing its video streaming technology.

The platform can compete with the major television networks by streaming NFL games live and without interruption thanks to AWS.

Comparative analysis of the business models of Amazon Prime Video and Netflix

  • Netflix broadcasts 4K and HDR content and it stands out in the video and sound quality
  • Amazon Prime Video cannot play high-resolution HD content on a low-speed internet connection
  • One can only stream movies or TV series on it
  • One can get extra benefits such as Amazon Prime Music and faster Amazon delivery
  • Netflix supports a wide variety of devices including gaming consoles
  • Amazon Prime does not support devices like Gaming consoles
  • Netflix has an extensive library of titles including many renowned in-house documentaries also series
  • The content library of Amazon Prime isn’t as enormous as compared to Netflix
  • Netflix is comparatively expensive
  • Amazon Prime is cheaper than Netflix
  • Only 897 Netflix movies are not rated yet
  • 31,066 of Amazon Prime’s movies are not rated, meaning, the movies are too old for a rating or are too small for going through the rating procedure
  • Netflix allows limited downloads to the user
  • Amazon Prime Video does not limit the user for video downloads

Will the business model for Amazon Prime Video persist?

Amazon Prime has grown to be the world’s largest and most profitable subscription model, offering Free Shipping (same-day, 2-day, or 2-hour delivery), Prime Video, Prime Reading, Prime Music, Gaming, attractive discounts, and so on.

It’s a one-way ticket to all of Amazon’s benefits, including the greatest selection of products and services.

Amazon Prime has created a business model that encompasses the entire range of services that its users rely on in their daily lives.

It’s safe to say that, Prime Video will continue to exist for as long as Amazon does at this point.

The global revenue of Amazon’s subscription services is around $31.8 billion.

Competitive content development

When it comes to Netflix vs. Amazon Prime Video, the content battle is fierce.

Unexpectedly, Prime Video outperforms Netflix in terms of the number of unique titles.

With over 24,000 movies and 2,100 TV shows, the Prime Video Library is enormous.

Comparatively speaking, Netflix has about 15,000 original content, however, this figure fluctuates as third-party titles enter and exit the platform.

Competitive content development

Netflix still outpaces Amazon Prime in terms of content, though.

Netflix offers higher quality content than Prime Video. Compared to Prime Video, Netflix has developed a lot more original shows.

Both have excellent original content, but Netflix constantly offers more new series and movies at a higher standard while Prime Video has more titles, among which many of them are older movies and TV shows.

By 2022, Netflix will have produced nearly 2,000 original films, which will have received hundreds of nominations and 15 Academy Awards.

Features Prime Video Prime Membership + Prime Video Netflix Basic Netflix Standard Netflix Premium
Monthly price $8.99/mo. $14.99/mo. $9.99/mo. $15.49/mo. $19.99/mo.
Free trial 30 days 30 days 30 days 30 days 30 days
Streaming speed 15 Mbps 15 Mbps 3 Mbps (SD) 5 Mbps (HD) 25 Mbps (4K)
Simultaneous streams 2 2 1 2 4
Offline watching Yes Yes Yes Yes Yes

The popularity of some of Netflix’s content speaks for itself even without accolades.

One of the most popular streaming programs of all time and one of Netflix’s first significant original productions is “Stranger Things.”

In the first month after its release, the second season of “Stranger Things” alone racked up over 400 million hours of viewing.

Over the course of its two seasons, the drama series “13 Reasons Why” has amassed far over twice that amount.

In addition to dominating media headlines and trending pages over the past year, other films and TV shows like “Bridgerton,” “Squid Games,” and “Arcane” have also raised aesthetic standards in film and television.

When comparing the number of subscribers for each platform, it becomes further clearer which service is better: Netflix or Prime Video.

Despite being among the top 10, Netflix, which has more than 213 million subscribers to Prime Video’s 175 million, still surpasses Prime Video in popularity.

Despite the greater costs, millions of customers prefer Netflix’s programming to that of Prime Video.

Competitors who need each other

Amazon and Netflix are both competitors and business partners.

Last year, during the keynote address of Amazon’s cloud computing division’s first user conference, the company featured Reed Hastings, president, and CEO of Netflix, to discuss how much he loves using Amazon’s cloud to run his business – a business that competes with Amazon’s video streaming service.

Competitors who need each otherEstimated number of SVOD subscribers worldwide from 2020 to 2027, by service (Source: statista.com)

Many technology companies are both partners and rivals.

For years, Google and Apple have wandered this line with software applications running on Apple hardware devices.

And Netflix does not rely solely on Amazon; it also has a number of other partners and services.

The company does everything apart from storing its video content in Amazon’s cloud; instead, it uses a large content delivery network (CDN) to host the movies.

Everything else, however, is managed in Amazon’s cloud, including customer account history and bookmarks, call center operations, and all controls for managing and monitoring video streaming through the CDN.

While it has less content than Prime Video, Netflix has higher-quality shows and movies, which are especially appealing to families and 4K streaming enthusiasts.

Netflix is also the best streaming service for those who want new content in a variety of genres on a regular basis, with thousands of original titles.

Viewers’ acceptability

Personal taste determines the quality of the consumer experience on Netflix vs Amazon Prime. This applies to the platforms’ apps and websites, as well as the content they contain.

Some viewers, for example, may prefer “The Marvelous Mrs. Maisel” to any other Netflix content.

Similarly, some Netflix subscribers may never want to close their subscriptions as long as a new season of “Stranger Things” is on the way.

Netflix offers a better visual experience because it supports 4K Ultra HD on all of its content with a premium subscription, whereas Prime Video only supports HD.

For those who choose to stream from an 85-inch TV setup, Netflix will provide a more theatrical experience.

Viewers' acceptability

Netflix may also be a better service for families because it has more excellent children’s shows and movies, as well as unique interactive shows.

Netflix’s dedicated children’s site features shows and movies from some of the most well-known family franchises.

Kids can watch movies and shows like “How to Train Your Dragon,” “Pokemon,” “LEGO,” “The Magic School Bus,” “Jurassic Park,” “A Series of Unfortunate Events,” “Lost in Space,” “Despicable Me,” and thousands of more kid-friendly shows.

Streaming is killing broadcast TV

The transition to streaming is accelerating.

According to an NMS and Nielsen Bangladesh study, the number of television watchers in Bangladesh was 42% in 1998 and 74% in 2011.

Furthermore, the percentage of watchers has climbed to 82.9% by 2016. However, since 2017, the number of television channel watchers has dropped to 80%.

The tastes of the viewers evolved with time. Furthermore, the scarcity of high-quality content has dramatically reduced the demand for cable TV channels.

And sitting in front of the TV for an extended period of time with heavy advertising is inconvenient for the viewers.

According to media insiders, ads are consuming the majority of our entertainment space on local channels in exchange for lower per-minute rates negotiated based on viewership.

With so many local and foreign TV channels, it’s already difficult to keep a loyal audience turning on their televisions to watch a specific program on a specific channel.

When most of our 30-plus local channels lack a consistent plan to attract viewers, the situation deteriorates.

In light of this, Information Minister Hasan Mahmud said that the airing of Bangladeshi ads on downlink international television networks was costing TV broadcasters Tk500–1,000 crore in lost advertising revenue annually.

A downlink is a transfer or communication from a satellite to one or more receivers on the ground stations.

Local advertisements on foreign networks are now prohibited by the government.

 

How can local TV channels remain relevant?

The quality of any content is important, but only when it is presented and promoted well, as with soap packaging and marketing campaigns.

Because, unless people know what a program is about and want to spend time watching it, who can judge its quality?

The person sitting in front of the television may be looking for something entertaining to distract him from his mundane daily routines.

So he quickly flips through the channels, hoping to find something worth watching, and comes across a long series of commercials.

These low-cost advertisements essentially serve no one’s needs.

Making the content of the local TV stations accessible on online streaming services is one way to address this issue.

They can also support various TV networks by providing live TV streaming services.

Local stations will be able to tailor their news, sports, live events, and shows by combining over-the-air antenna TV with the Internet.

 

Ahmed Shoyeb Iqbal.

Importance of Customer Service in the E-commerce Sector

Importance of Customer Service in the E-Commerce Sector

Importance of Customer Service in the E-commerce Sector

Importance of Customer Service in the E-commerce Sector: Due to the Covid pandemic, e-commerce had a natural increase globally as nationwide or regional lockdowns were implemented. Companies have been innovative and gained further market share by providing consumers with what they desired. Meanwhile consumers have been able to order consumables, conventional and non-conventional goods and services from the safety and comfort of their own homes. Consumer behavior change is nothing new. It happens invariably. Previously, though, the adjustments were typically linked to the nature of where they were making a purchase. The client was always the king of offline hashtagretail , and people evolved to anticipate being handled in a specific way in shops. With hashtagbrickandmortar stores embracing digitalization, customer expectations have shifted dramatically in recent years.

Their expectations have risen well above acceptable cost and quality. They now want top-level service, individualized conversations, and linked, seamless digital experiences throughout all retail locations, touch points and platforms.

Electronic commerce,

sometimes known as e-commerce, refers to any business or commercial transaction that involves data transmission via the internet. It is one of the essential parts of the internet to exist in the present times.

Importance of Customer Service in the E-commerce Sector

E-commerce has expanded fast both globally and in Bangladesh. Internet access is already widely available in Bangladesh. It is used for e-commerce by Bangladeshi manufacturers to experts, besides access inputs will be determined by their desire and capacity to utilize this medium, as well as the willingness and skills of consumers of final products and suppliers of intermediate services and products. In Bangladesh, there is a limited application and use of hashtagb2c e-commerce among the parameters of e-commerce. However, a sizable proportion of overall e-commerce websites engage in hashtagc2ce-commerce, which is auction-based trade between customers. Other fields are still underdeveloped in Bangladesh.

What do hashtagconsumers in hashtagBangladesh want?

If recent industry missteps have taught us anything, it is that all is not well, and while there has been significant growth in this sector over the last decade due to infrastructural and technological advancement in the country, it is nowhere near that of our neighbors. In the period 2018-2020, India experienced approximately 40% year-on-year growth. Let us investigate why we have not been able to attain comparable growth despite the fact that our economy has been operating well and increasing at or above the rate of our neighbors for years. There are various variables that contribute to lower client penetration, including operational issues, culture, and overall inadequate digital literacy.

A reliable hashtagdelivery service: Although Bangladesh has a well-developed road and railway network, it is undeniable that we lack a well-developed delivery channel. We are a small country, therefore the distance between major hubs in Dhaka and smaller cities is much shorter than in many western countries, yet we need a strong and dependable delivery channel on which buyers and sellers can rely.

Strategic action plan:

Another area where Bangladesh falls short is sellers behavior. Many of the merchants or dealers listed on various e-commerce websites or even Facebook pages do not have their own inventory or business. These are essentially resellers who, upon receiving an order, source the goods from another wholesaler or local merchant and then resell them on websites for a profit. This is a fine business strategy in and of itself, but when a substantial section of the seller’s sources items upon purchasing, there is usually a longer turnaround time, which stretches the entire process, and because they are delaying sending their product to e-commerce hubs, there is a delivery delay.

Appropriate payment method:

Bangladeshi customers have always preferred cash transactions for their purchases; however, this pattern has shifted in recent years owing to the emergence of payment systems such as hashtagbkash , hashtagrocket , hashtagNexusPay, and iPay. bKash, a subsidiary of Brac Bank Limited, was launched in 2011 and since then become the preferred online payment channel among consumers.

Deals: Our customers are more concerned with pricing than with everything else. Although the brand name is crucial, the pricing of branded things must be advantageous to them. When it comes to shopping selections, some people favor rebates or hashtagBOGOdeals, while others prefer discounts.

What do consumers in developed countries want?

Online shoppers are becoming pickier. They have the freedom to choose, as well as access to the world of internet vendors. If one online business does not meet its demands, they simply switch to a rival.

High-performing website: Customers may browse elsewhere because your store loads slowly or your items are difficult to discover. This also implies that people can purchase their goods from an internet business in another country.

Dyn, a cloud-based Internet performance firm, polled over 1400 people in 11 countries throughout North America, Europe, the Middle East, and Asia and published the results in a study. At least 85% of survey participants anticipate making at least as many or more purchases online this year as they did last year, with 56% intending to make more online purchases.

In Germany, over 100% of customers do at least a quarter of their purchases online, but in the Netherlands, this figure is somewhat lower, at approximately 90%. Nonetheless, 40% of all customers prefer to buy in stores, where they make almost 75% of their purchases. So, what is preventing customers from purchasing more online?

Online businesses should work hard to enhance website performance and alleviate consumer concerns about security because those are the primary concerns of today’s internet customers. For over two-thirds of those polled internationally, these two considerations prevent them from making a purchase. Only 17% of Dutch shoppers would return to a sluggish website. In Germany, on the other hand, 48% of shoppers polled said they would return to the same site.

Importance of Customer Service in the E-commerce Sector

Safer online services:

Spam (unsolicited e-mail), spyware, Web squatting, forgery, and intellectual property theft, as well as privacy infringement, bullying, denial of service, and illegal entry into business or personal computers and networks, are all examples of Internet security issues (and theft or manipulation of the information stored in them). Some of these issues have grown to be rather significant; spam is now spreading at an astonishing speed. An estimated 50% of all e-mails flowing on the Internet by the end of the year could be unsolicited. In terms of squandered IT resources or lost user productivity, the global cost might be as high as $20.5 billion. In order to combat this issue, an increasing number of nations are enacting anti-spam legislation.

Transactional confidence:

E-commerce is a revolutionary behavior that defies convention and society. Many basic assumptions about trust are being challenged by the shift to e-transactions. Confidence and trust are necessary for safe computerized trading. The issue of trust is more prevalent in the virtual world than in the physical world.

What is bad customer service?

Bad customer service occurs when a company fails to satisfy the expectations of its customers in the quality of services, turnaround time, or customer satisfaction. Inefficient support workers, a lack of real-time help, and an inability to comprehend your customers’ demands are all issues that have a detrimental impact on customer service.

Poor customer service not only ruins relationships with current customers, but also jeopardizes new prospects and, clearly, reduces your company’s bottom line. According to a study conducted by the Association for Psychological Science, we are more likely to remember negative experiences than positive ones, which means that one bad customer service story has the potential to undo all of our excellent work and outweigh any positive service received before or after.

Here are five examples of poor customer service:

– Not having a proper communication strategy

– Unhelpful and unfriendly chat

– Transferring customers from one agent to another agent

– Lack of empathy

– Making customers wait too long

A bad experience like this will lead the customers to drop negative reviews that can greatly affect your business.

How do bad customer services affect the ecommerce industry?

Here are the consequences of poor customer service:

Turnover rate: When you provide a wonderful experience, clients will return to you, however poor service will push them to churn. A single episode of poor customer service is a sufficient reason to transfer to a different firm.

Brand loyalty: Because loyal consumers are long-term, customer loyalty is a powerful indicator of a company’s long-term sustainability. Poor customer service reduces customer lifetime value (CLTV) because customers leave you after a bad customer service experience.

Customer service costs:Acquiring a new client might cost five times as much as keeping an old one. When customer service standards deteriorate, the number of touchpoints grows, resulting in a significant increase in customer service expenses.

How a bad review affects your business?

Consumers search online reviews first because they don’t want to waste their time or money on a company that isn’t up to standard given the diversity and global character of today’s industry.

The marketing firm Invesp put together a compendium of data on online reviews. Some of the significant figures are as follows

Everyone is checking into reviews: 90% of customers research a business online before going there.

Ratings are reliable: 88% of people trust online evaluations just as much as they do personal recommendations.

Positive reviews boost sales: Consumers are likely to spend 31% more at a business with outstanding recommendations.

Bad reviews lead to fewer leads: Negative reviews deter customers from doing business with a company 86% of the time.

Trust in reviews: Consumers estimate that favorable evaluations increase their trust in a company 72% more than negative reviews.

This demonstrates unequivocally that a business’s ability to expand and survive depends on its ability to monitor online reviews.

The mindset of Bangladeshi consumers

Discount vs Service? The rise and fall of Evaly The fastest growing Ecommerce in Bangladesh

On December 16, 2018, Mohammad Rassel, a former young banker with expertise in vigorously marketing the diaper brand Kidz in the market, launched the e-commerce website Evaly.

With free gifts for signing up as a customer and cashback of up to several hundred times, it didn’t take long for customers to choose Evaly’s offerings.

Unbelievably low prices on high-ticket items like appliances, gadgets, and motorbikes simply added to the number of buyers while bringing in more brands and retailers to help clear any inventory overnight. Everything up to that point seemed like a magnificent tale of e-commerce penetration in a highly promising area.

However, the business strategy that Evaly developed to scale up and compete with Alibaba’s Daraz caused concern among onlookers.

While bold e-commerce platforms throughout the world burn their money for subsidized growth, Evaly, with its small financial base and lack of outside investment, simply burned money from its customers. Millions of the general public paid for expensive things costing more than a few millions of BDT when Evaly used to advertise shipments in 45 days and 30–50% discounts. Millions of Evaly shoppers waiting for goods worth at least BDT311 crore and hundreds of vendors to whom the platform owes BDT206 crore. Because none of the investors came forward to help the company.

Better service is not only expected in the service sector but in the FMCG sector as well

Fast-moving consumer goods (hashtagFMCG) are items that are high in demand, readily available, and reasonably priced. Processed food, cosmetics, drinks, stationery, over-the-counter medications, laundry and sanitation supplies, plastic goods, personal care items, and less-priced consumer electronics like smartphones and earphones are some examples of fast-moving consumer products.

At USD 4-5 million, or roughly 0.03% of the nation’s total grocery market and 3-4% of the country’s overall ecommerce industry, Bangladesh’s e-grocery market is considerably smaller. Being the first of its kind in Bangladesh, Chaldal earned a name for itself in the online grocery market. They began in 2013, essentially at a period when selling fresh was uncommon in the worldwide grocery scene. Instacart (USA) and Bigbasket (India) were the only two businesses offering it. With the growing market of FMCG, it is absolutely crucial to maintain the standard quality of these goods for a powerful profit margin.

Are the people well-trained in ecommerce?

Consumers:The inadequate digital literacy and education level of the bulk consumers is a significant barrier to progress. Although using an app or website to place an order or operate it doesn’t require a solid command of the English language, there is nevertheless an increasing concern for digital literacy. Outside of urban regions, it’s frequently a big problem, especially in less affluent or rural areas. In order to access and use information digitally and to benefit from various programs, websites, and social media platforms, people need to have the knowledge and abilities known as “digital literacy.”

Service providers:Finding the right people for the appropriate jobs is challenging, and it’s even harder to find someone with the entrepreneurial mindset required for a start-up. Finding this ideal balance is difficult, and much more difficult is finding someone with the requisite skill sets who is from the same business.

How are these platforms performing in Bangladesh?

 Some of these platforms have made significant investments in technology and human resource development rather than product discounts or subsidies in order to ensure customer happiness.

With a staggering 99.25% complaint handling rate, Pathao topped the list of domestic and international e-commerce enterprises. “We have continually invested in technology as well as in building a strong team to improve our services in the region. For every complaint raised, we follow a structured process where we first confirm the veracity of the complaint, gather relevant information from all parties, and then take appropriate action,” said Pathao President Fahim Ahmed.

With an 88.95% success rate in resolving customer concerns, hashtagChaldalalso topped the list of domestic companies. Additionally, it had made technology investments with an effort to grow the company through customer pleasure rather than product subsidies, particularly in the competitive perishable goods market. “Assuring customers of our service quality takes a lot of effort. We had to invest a huge amount in just the supply chain to ensure customer satisfaction.

While in an interview hashtagDarazsaid, “We have an efficient issue resolution team dedicated to resolving customer complaints to give them an incredible experience in online shopping. Which in turn enriched customers’ experience and assisted us to resolve customer complaints swiftly. This, in turn, established Daraz as a reliable e-commerce organization.”

Government policies

The government released the long-awaited National Digital Commerce Policy in an effort to attract domestic investment.

–       To safeguard and support local investors, the new regulation prohibits foreign investors from owning more than 49% of any e-commerce business in Bangladesh.

–       In order to avoid fraud and safeguard customer rights, the regulation also required that the e-commerce organizations. Prominently display information about the products they sell online, such as the product’s quality and return policy.

–       To ensure that customers’ rights are properly safeguarded, e-commerce businesses will also need to sign agreements. With the items’ suppliers, delivery services, and payment gateways. This is an effort to make the supply chain visible.

All of the above measures have been implemented to ensure the long-term sustainability of the business and protect the rights of consumers.

By Ahmed Shoyeb Iqbal

One Step Ahead, Two Step Back

One Step Ahead, Two Step Back

 

One Step Ahead, Two Step Back: If you visit the official website of the Bangladesh Government, you will see a few apps listed as
“necessary apps” including Bangladesh Directory (for Android and iOS), Bangladesh Tourist Spot, Uttoradhikar, and Ogrojatra (Election Manifesto). But how many of these apps fulfill their true purposes is a real question.
If you browse through the Bangladesh Directory app, you will notice different sections that hold supposed contact information of important personnels. After using the app for only a little while,
you will be able to see what is wrong with it. Many of the information are incorrect while some are quite vague.

For example, if you scroll through the BGB section, you will see a person named Rob pops up who supposedly has a contact number that is surprisingly presumptuous. His phone number is: 1234567. Most of these apps were developed with technical help from the ICT division, a2i, Cabinet Division, or the UNDP. Another Government app developed by a2i, named EkPay is claimed to serve the purpose of digital payments, like bill payments through cards, or bank transactions. It has a download number of 10K+ with an average rating of 2.8 stars. The problem with the app is that the billing information doesn’t get updated even once you pay the bill. A similar problem was faced by a reviewer, who wrote, “Poor performance. DESCO meter was not recharged but amount was deducted from account.”

Do any of these apps work?

The general idea behind a successful app is the proper implementation of its purpose. From this perspective, the most successful Government app is undoubtedly the Surokkha app. The app has a 5M+ number of downloads with a 4.3 star rating. Romana Khan, a housewife from Dhaka, said, “The Surokkha app is very easy to use. The app produced my data and I could successfully register for the vaccine.”
Although questions can be raised about how the app was failing multiple times whenever it got overflowed with traffic. Some people even complained that they noticed glitches in the app. One Step Ahead, Two Step Back

How many unsuccessful apps are still there?

Did you know that BD Sugar and Food Industries is an app? It was developed in 2015, and has not received an update since 2016. If you open the app, you will notice a homepage that is supposed to lead you to information on this field. But if you click on the avatars, it doesn’t work anymore.
The Hospital Finder app is an application to find nearby hospitals around the user. If you open the app, a Google map of the streets pops up. But due to its incorrect location detector, it won’t be able to produce

results of nearby hospitals, failing in its only purpose. The NBR Tax Calculator is another app that calculates total amount of taxes based on user input. Unfortunately, the app is stuck in the year 2016-17, and cannot be used to calculate the tax anymore. It could prove useful if only it was updated with time.
There were a total of 600 apps developed in the time period between 2013 to 2015, which took an estimated budget of 18.35 crores. All of these apps fall under these two projects. Only 44 of them are still available online.
Around 300 of the 600 apps created by two projects were designed to allow people to directly access the services of specific government offices or agencies. Although most of them have since become obsolete, some apps have been developed on the agencies’ own initiative.

 

 

Exploring the Future of AI

Exploring the Future of AI

Exploring the Future of AI:

In today’s world, technology has become an integral part of our lives, transforming how we live, work, and communicate. From smartphones to social media, technology has revolutionized the way we interact with the world around us, making our lives easier, more efficient, and more connected than ever before. Automation has given us more time than ever before to pursue our hobbies and interests.

Despite not always feeling like it, we have more free time now than ever before, allowing individuals more leisure time to socialize, create, and unwind. In recent years, the advancement of automation has been largely driven by the emergence of artificial intelligence (AI). The rise of AI has led to significant improvements in efficiency and productivity across various industries. With the ability to automate mundane tasks that people would rather not do, AI has become an increasingly popular tool for people around the world.

In recent years, there has been a great deal of interest in the field of AI. However, people’s views on AI differ according to their familiarity and knowledge. In this article, we will examine how different people’s familiarity with AI leads to varying interpretations of this field. This article compares and contrasts popular beliefs about AI with the truth about this emerging technology. The future of AI in the workplace is also discussed, along with its potential in Bangladesh.

Perception vs reality

AI is a tool that has the potential to enhance human capabilities and boost productivity. AI is a term used to describe the ability of a computer system to perform tasks that typically require human intelligence. These tasks can include decision-making, problem-solving, and learning new information. AI relies on various techniques, such as machine learning methods, neural networks, and natural language processing, to analyze data and generate predictions.

If the general public had the impression that the technology was unreliable, they would be less inclined to trust it.

AI’s future is a mystery. “One can imagine such technology outsmarting financial markets, out-inventing human researchers, out-manipulating human leaders, and developing weapons we cannot even understand,” stated renowned scientist Stephen Hawking. Is robot control a real threat? How much should we worry?

Let’s examine many prevalent AI danger beliefs and see if they’re accurate.

  • Robots will rule

  • The idea dates from 1965 through 2023 to 2045. We’re not there yet. AI  has been used in a narrow range so far, and while we’ll continue to improve technology, robots taking over in 50 years seem doubtful. The New York Times states: “You won’t be obsolete for a long time, if ever”
  • We’ll be replaced by robots

  • AI will change work. How firms and governments react to AI’s growing ability to manage human occupations will determine the impact. Two-thirds of Americans expect robots to do most human work in 50 years, according to Pew Research. But technology’s expected impact on jobs is different, comparing studies on how many jobs technology will kill (and create) shows that no one knows. Technology Review states: “Predictions range from optimistic to devastating, differing by tens of millions of jobs even when comparing similar time frames.” According to Gartner, AI will eliminate 1.8 million jobs by 2020 but create 2.3 million
  • AI will invade privacy and cause persistent surveillance

  • Video algorithms can detect and track humans and objects. Google, MIT, IBM, and DeepMind are constructing video databases for facial recognition and behavior analysis. Current AI technology can replicate human voice and alter video with outcomes indistinguishable from real life, threatening privacy, safety, and honest news reporting.
  • AI is great at spying and invading personal data, but scientists argue computers can’t understand media like humans. We’re getting closer to programmers that can watch and participate in surveillance and data systems.

AI technology can be scary, yet it’s easy to trust sophisticated tech that can surpass human abilities. Better tech that solves human problems requires transparency.

The impact of AI on the work domain

One of the fastest-growing industries today is AI. The ultimate goal of this field is to create systems as sophisticated as the human brain.

  • Financial Services: AI was early adopted in this industry. Data and difficult use cases are the reasons. The history of banking and finance shows that this sector is vital to human development and takes a lot of effort to avoid fraud and failure. Avoiding this requires a well-trained computer, AI algorithms and initiatives to protect the system and generate big profits. Designing digital payment channels with AI agents
  • Health care: AI has a big impact on health care. We can see that AI is used in various kinds of health care procedures, from daily ones to high-level ones that require accuracy. The fit band or iWatch, which collects data from body sensors, is a simple example of AI in health care.
  • Education: AI has expanded education’s potential. AI can grade instructional content faster and easier than humans. AI may also automate processes, personalize learning, universally access, create smart content, teach, optimize class performance, and provide 24/7 assistance. Online classes are one of the best instances of AI in education.
  • E-Commerce: AI works well in e-commerce. AI currently attracts and boards customers safely through E-commerce. AI can forecast demand and supply, assist customers, recommend products, personalize chatbots, and more in e-commerce. Amazon, the largest e-commerce site, develops AI to stay profitable.
  • Agriculture: AI is now employed for crop monitoring, predictive analysis, and robot tasking in agriculture. Soil, seed, and atmospheric characteristics are measured using various systems. Drones can distribute water, fertilizer, and detect crop defects using AI

AI is improving every field daily. As we mentioned the market potential, every organization would invest time and money in the industry to improve their work and earnings.

Getting ready for the next generation of AI

In order to maintain a competitive edge in the employment market, it is necessary to acquire these abilities.

Placing an emphasis on creative thinking and emotional intelligence: As was said previously, AI is unable to reproduce the abilities associated with creative thinking and emotional intelligence. To complement AI and maintain a competitive edge in the workplace, it is imperative to place a strong emphasis on the development of these talents.

Investing in AI Research: Both private companies and public administrations need to put money into AI research if they want to remain at the forefront of AI development and adoption. In order to accomplish this, investments will need to be made in AI startup companies, research institutions, and cooperation with other nations.

Developing Ethical and Legal Frameworks: As AI becomes more pervasive in society, there is a need to build ethical and legal frameworks to guide the development and use of the technology.

ChatGPT and its Future

The use of chatbots by businesses to communicate with their customers has increased dramatically in recent years. Using natural language processing, ChatGPT may provide responses to text inputs that sound disturbingly human.

Textual communication predominates in the realm of extension and operations for ChatGPT. Thanks to its modular design, the product works with numerous messaging apps. These include Facebook Messenger, Slack, and Telegram. Using ChatGPT, you can provide assistance, address frequently asked questions, and carry on discussions with clients across many channels. The speech-generating models developed by OpenAI have made it possible to integrate ChatGPT with other voice-based communication methods in addition to text. The availability of speech-generating models paved the way for this.

OpenAI regularly releases updates to the model, which contribute to ChatGPT’s ever increasing accuracy. But it has limitations and can make mistakes, the same as any other machine learning system. One of ChatGPT’s limitations is how reliant it is on the quality of the training data provided. Therefore, it is crucial to curate and monitor the training data to ensure ChatGPT produces correct and ethical replies.

The potential for ChatGPT to transform the way humans interact with machines is enormous. Because of its ability to understand and respond to natural language, it can provide clients with fast, efficient, and personalized service.

AI in Bangladesh

Bangladesh is still in the early stages of AI research, with only a handful of uses for the technology across a wide range of industries. However, businesses and the government are increasingly showing an interest in AI, and there are initiatives underway to increase AI use across the country.

Bangladesh is not as advanced in its AI preparations as more developed nations like the United States, Japan, or China. However, businesses and the government are increasingly showing an interest in AI, and there are initiatives underway to increase AI use across the country. The government of Bangladesh has established the Bangladesh High-Tech Park Authority and taken other measures to foster the growth of the country’s technological sector.

In terms of AI implementation, Bangladesh lags far behind India. India has become a leading hub for AI thanks to its growing number of AI-related firms and active AI research community. The Indian government has also taken initiatives to expand the country’s AI industry.

By Ahmed Shoyeb Iqbal

An Opportunity Worth Milking

An Opportunity Worth Milking

An Opportunity Worth Milking:

There is no doubt that the dairy sector is one of the most important economic contributors in Bangladesh. From a very humble beginning to growing into a sizable market, the rise of the dairy industry in the country is certainly commendable. However, even after increasing supply and trying to keep pace with the world dairy market, Bangladesh is still incapable of fulfilling the dairy demands of the whole nation. With a few gaps here and there, there is still scope for improvement in this sector.

From implementing innovative and modern technologies to improving farming practices and allocating more budget, there are more than a few factors which can be put into practice for Bangladesh to become a leader in the world market.

Size matters

The dairy market is one of the most important sectors in Bangladesh. Even though there have been several economic shocks in recent years, this sector still maintains constant growth and adds more to the overall economy. According to the Department of Livestock Services, the dairy market size in Bangladesh is estimated at $2.47 billion, as per IDLC. This market is expected to increase by over 5% every year.

Even though the market size is quite big and has a lot of potential, the demand and supply of dairy products aren’t proportional. While the market imposed a demand of 152.02 lakh metric tons of milk in the financial year 2020–21, the produce was just 119.85 lakh metric tons against the demand. The gap was almost 32.7 lakh metric tons in the year, which is fulfilled by importing dairy from the rest of the world.

Deman & Supply of Milk

Fig: Demand and supply curve of dairy in Bangladesh

Even though milking production in the country has grown significantly, a gap between the demand and supply always remains because of the increasing demand by the nation.

Filling the gap

Bangladesh was ranked the 23rd top milk producer country in the world. With a production of 130.74 lakh tons of milk in 2022, the country meets the majority of demand by its people.  However, as it can’t fulfill the complete demand for dairy, Bangladesh needs to import a significant amount of powdered milk and other dairy products from all over the world, namely Australia, New Zealand, Holland, Denmark, and Poland.

From powdered milk to butter, cheese, yogurt, and other dairy products, the country imports a variety of dairy items to meet the nation’s requirements completely.

How much does Bangladesh spend on dairy imports? 

Bangladesh has a growing demand in the dairy market. However, local producers cannot completely meet the demand of the nation. And therefore, the government needs to import dairy from all over the world to fulfill the daily dairy needs of the people.

Milk importsMilk imports – Bangladesh Bank

According to a Bangladesh Bank report, the country spent nearly $37bn (Tk4,000 crore) in 2023 to buy powdered milk and other dairy products from other countries.

Although the amount Bangladesh spent on dairy imports was quite high due to inflation and the increasing dollar rate, the volume was lower than in the previous years. During the fiscal year of 2022-23, our country imported 118,000 tons of milk, which was nearly 16% lower than the volume imported the previous year.

The drop in imports isn’t only for an increase in the production level but also for a decrease in demand. Because of increasing costs, household’s consumption of powdered milking has decreased significantly.

Becoming self sufficient

Bangladesh has shown commendable growth in the dairy sector in the past couple of years. However, even after consistent growth, the nation is still not self-sufficient and, hence, has to import dairy items from the rest of the world.The government should allocate more budget in the field to accelerate growth. Even though the estimated investment in the local dairy sector now is over Tk 90,000cr, the government is launching a TK4,280cr project to improve the dairy sector. Funded by the World Bank, this project (the Livestock and Dairy Development Project) will merge traditional methods with modern technologies to ensure it is not only self-sufficient but can also export dairy products

  • An increase in milk production is the key. Bangladeshi farmers and dairy producers often face a lack of farming resources, like land, feed, and freshwater for dairy animals. All these factors lower milking production significantly, creating a gap between demand and supply. The concerned parties and government must take the initiative to provide all the necessary resources to increase milk production quickly
  • Maintain a consistent tariff rather than increasing it every year — increasing tariffs in the dairy sector has become a concern for the farmers and the stakeholders alike. Because of high tariffs, they seem less interested in investing in the farms rather than not. The government should, therefore, take necessary actions to maintain an affordable tariff

By 2030, the demand for milk will increase to 17.22 million tons (172.2 lakh metric tons) in Bangladesh. With the current production rate of 119.85 lakh metric tonnes, the nation must adopt effective solutions to increase milk production to meet the ever-growing milk demand.

How Amul fulfilled India’s dairy demands while also exporting

The Indian dairy market is huge. Contributing 24.64% of global milk production in the year 2021-22, India has a market size of $26.11bn and holds the first position in the world. From producing milk (both fresh and powdered) to making butter, cheese, yogurt, and many others, the dairy sector in India is big and diverse. And because of such diversity and capability, this sector is expected to reach $35.96bn by 2029.

Even though there are thousands of small, medium, and large farms all over the nation, Amul has been one of the largest and most prominent companies in the Indian dairy sector. In fact, Amul plays the most vital role in fulfilling the country’s dairy demand while also exporting all over the world. This company exports milk, cheese, butter, and many other dairy products to major and minor countries in the world to help them meet their dairy demand.

How did Amul achieve such success?

Well, this company introduced a cooperative model of dairy farming in India to improve production significantly. The model involves a group of small farmers who work together with all their resources to maximize milk production as much as possible. This model not only showed a substantial rise in milk production but also increased the incomes of small farmers.

Besides influencing small farmers, Amul also introduced various training programs and provided improved veterinary services and animal feed to improve the quality of milk while also raising production. In addition to fresh milk, Amul also prepares processed milk products (powdered milk, cheese, butter, and yogurt) to add versatility to India’s dairy market.

The need for government and non-government initiatives 

There is no doubt the dairy sector in Bangladesh is slowly but surely growing and making a mark in the economy. However, it’s not growing as fast as it should and that’s mainly because of a lack of knowledge, finances, and better farming practices. Both government and non-government bodies in the country should take up and implement more than a few efficient actions to benefit this ever-emerging sector of the economy:

  • For instance, the government and related parties should implement initiatives to prevent livestock illness successfully. Diseases like foot and mouth diseases and worms hamper hygienic practices and reduce milk production considerably
  • Government and non-government parties must also invest in breeding technology. A mixed breed cattle gives 5 liters more milk than any local breed. Increasing the number of mixed-breed livestock would definitely increase the milk production rate
  • Attention needs to be paid to building and improving processing facilities. The absence of processing facilities keeps the nation from producing powdered milking and many other dairy products. With modern manufacturing units, Bangladesh could process dairy products and reduce the need for import
  • The government should help establish a better communication channel between farmers and buyers. This will allow the farmers to get better access to the market and get a better price for their products

 

Connecting producer and buyer

Technologies and innovation play an important part in helping the dairy industry in Bangladesh grow. From helping to grow mixed breeds and enhancing safety and production to market access and sustainability, technology and newer innovation can help the dairy sector flourish like never before.

Here are a few ways technological innovations can help the dairy industry in Bangladesh grow:

IoT and Sensors:

Farmers can use Internet of Things (IoT) devices and sensors to monitor various aspects of their dairy farm and make informed decisions. From finding out about milk production to enquiring about cow health and the overall environment, the data collected through these technologies can be used for better-quality products

Automated Milking System:

Manual milking takes a lot of time and labor hours. If the farmers in the country introduced advanced milking systems in their farms, the machine would automatically milking the cow and save a lot of money and hard work

Better Feeding:

Robotic feeding system has shown revolutionary improvement in the dairy sector. The government of Bangladesh should introduce this technology in the farms to feed the livestock better and quicker and also to cut feed waste significantly

Maintaining Sustainability:

Modern technologies and innovations allow farms to reduce their environmental footprint and manage better farming practices. With better farming practices, farms can not only contribute to a more sustainable environment but also improve production and reduce costs

Better Communication:

Phones, smartphones, and other devices made communication easier than ever. Farmers can use these devices to establish contact with buyers and other interested parties and increase sales in no time. From making direct calls to exploring social media platforms and other e-commerce sites, the contact channels are ever versatile and convenient

The dairy sector in Bangladesh is ever-expanding and emerging as a force to be reckoned with as far as industries go. Even though the industry has yet many hurdles to overcome, with their determination and an urge to meet the nation’s demand, the dairy market is slowly but surely improving. While the farmers and associated parties are implementing better farming practices, the government of the nation is allocating more resources to become self-sufficient in the dairy sector.

It’s only a matter of time before Bangladesh makes a name for itself in the world dairy sector.