Thesis Paper

On
An Essay on Fan Industry of Bangladesh

Submitted to
Department of International Business
Faculty of Business Studies
Dhaka University

Prepared by
Md.Fardu
ID No.801620047
Semester: Summer, 2018
Department of International Business
University of Dhaka

Date of Submission 13 October, 2018

 Letter of Transmittal

13 October, 2018
The EMBA Director
Department of International Business
University of Dhaka
Dhaka
Subject: Submission of Thesis Paper.

Dear Madam,
I have completed my thesis paper on “An Essay on Fan Industry of Bangladesh” and would like
to submit my thesis paper as per your specifications. I would also like to draw your kind
attention to the fact that I have tried my level best to gather and organize all the information
needed for this particular paper, and in doing so have tried my utmost to live up to your
standards. I believe that the knowledge and experience gathered during the paper preparation will
be helpful in my future professional life.

I sincerely expect that you would be kind enough to accept my report for evaluation and obliged
thereby. I will be available for defense on this paper any time.

Sincerely Yours,

…………………
Md.Fardu
ID No. 801620047
Semester: Summer, 2018
Department of International Business
University of Dhaka
 Executive Summary
This study is about the Fan industry of Bangladesh, especially on the market growth & market
size in the difference country. The paper is segmented in five broader categories.

The very first chapter comprises introduction of the study, rationale of the study, objectives of
the study, scope of the study, limitation of the study and finally the study outline. The main
objectives of the study are to identify Fan industry of Bangladesh.

The second chapter comprises the literature review section where some studies on different
countries and fan industry of Bangladesh is briefly described.

The third chapter comprises one of the most important parts and that is the methodology of the
study which includes research design, study of population, data collection, questionnaire design,
data analysis & HHI test is described. To get primary data I contact with various fan company
owner & professional to do the interview & fill up my questionnaire. This research also gives us
market is highly concentrated about this sector.

Secondary data is collected from online journals, articles, websites, books, government
publications also.

The fourth chapter is Findings & analysis; this chapter includes both descriptive and qualitative
analysis. It includes Basic characteristics of Fan industry, value chain analysis, competitive
analysis, objective analysis, HHI testing analysis, supply chain analysis. Some tabular and
graphical representation has also shown and described in the report.

Finally in the chapter 5 recommendations and conclusion is described.

 Table of Contents
Title
Contents Page No.
No.
Letter of Transmittal I

Executive Summary
1.0 Chapter One: Introduction 01
1.1 Introduction 02
1.2 Rationale of the study 02
1.3 Scope of the study 03
1.4 Objective of the studies 03
1.5 Limitations of Study 03
1.6 Study outline 03
2.0 Chapter 2: Literature Review 04
2.1 Perspective on Fan Industry in different countries 05
2.2 Fan industry in Bangladesh 07
3.0 Chapter 3: Methodology of Study 08
3.1 Research Design 09
3.2 Population of the study 09
3.3 Sampling design 09
3.4 Data collection 09
3.5 Data analysis 10
3.6 Questionnaire design 10
4.0 Chapter 4: Findings and Analysis 11
4.1 Basic characteristics of Fan Industry of Bangladesh 12
4.1.1 Number of the company 12
4.1.2 Industry growth 13
4.1.3 Number of employee 14
4.1.4 Barriers to entry 14
4.1.5 Productivity analysis 15
4.1.6 Material 16
4.1.7 Assembly process 17
4.1.8 Product mix 18
4.1.9 Local demand patterns 19

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 4.1.10 Legal Entities of Firms 20
4.1.11 Distribution Channel 20
4.1.12 Sourcing of raw materials 21
4.1.13 Vendor relationships 22
4.1.14 Business development services 23
4.1.15 Labor 23
4.1.16 Skilled Human Resource scarcity 23
4.1.17 Management capacity 24
4.1.18 No benchmarking indicators 24
4.1.19 Technology 25
4.1.20 Research & Development 25
4.1.21 Innovation initiatives 26
4.2 Competition analysis 27
4.2.1 Market competition 27
4.2.2 Price competition 29
4.2.3 Supply competition 30
4.2.4 Distribution competition 30
4.2.5 Logistic & support competition 30
4.3 Supply chain of Fan Industry in Bangladesh 31
4.3.1 Critical problem of Supply Chain 32
4.4 Findings 33
5.0 Chapter 5: Recommendation and Conclusion 34
5.1 Recommendations 35
5.2 Conclusion 35
Bibliography 36
Questionnaire 37

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 List of Table
Title Page
Contents
No. No.
Table 1 Legal Entities of Firms 20
Table 2 Distribution channel 21
Table 3 Market share of various country 28
Table 4 Market share of various country (local market share) 28
Table 5 Price competition 29

Figure 1 Industry Growth 13

Figure 2 Number of Employee 14
Figure 3 Barrier to entry in the fan industry 15
Figure 4 Production Analysis 16
Figure 5 Materials 17
Figure 6 Product mix of fan industry 18
Figure 7 Demand condition 19
Figure 8 Imported Components Used by the Fan Manufacturers 22
Figure 9 Availability of Skilled Workers in the Fan Sector 24
Figure 10 Supply Chain 31
Chapter-1 Introduction
1.1 Introduction

Fans are one of the electrical appliances which have become almost indispensable for homes and
even offices. Electric Fan is a high market penetration product category and is very high in terms
of purchase priority amongst durables. In this report Fan industry in Bangladesh know about the
industry characteristics are: background of the industry, Market growth, industry
competitiveness, value chain, sourcing of materials ,assembly process ,product mix, demand
condition in local market, legal entity of the firm, distribution channel, manpower availability,
management capacity, no benchmark..
Besides, the competition analysis of this industry is that Market competition, supply competition,
price competition, distribution competition logistic & support competition is very sharp in this
sector.
Furthermore, supply chain is has been evaluate critically how to distribute the produce from
manufacturer to final consumer also shows that how to produce a finish goods.
In this research paper when a reader go through he/she know about the industry in Bangladesh.
Reader also benefited by study this paper which brand is most competitive, market nature, price
competition, number of the company, market growth, and supply chain in the fan industry of
Bangladesh. By study this paper, an entrepreneur initiate to set up a fan industry in Bangladesh.

1.2 Rationale of the study

This study is beneficial because it examine the fan industry on Bangladesh. To know about the
fan industry, we have to discuss market growth, supply chain, value chain analysis of this
industry. By competitive analysis, we know about price competition, supply competition,
distribution competition etc. furthermore, supply chain of this also analyzed here.

This study sheds more light on how smoothly operate the market analysis can be done by
through fan industry, also it will be analyzed that how manufacturing sector & service sector
which one gives more contribution on the economy. The study will provide data to analyze the
impact of market condition, to identify the relationship among the number of firm, growth rate,
barrier to entry, materials, price competition, market competition & supply chain process.

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1.3 Scope of the study
This report provides an overview of fan industry on Bangladesh. This study has done based on
primary & secondary data. There is no available data to analysis the fan industry on Bangladesh.
This report has been prepared based on market size & market growth on competition analysis.
We are try to know about various fan industry’s price competition, market competition,
distribution competition, supply chain etc. Using these data to analyze the country’s market
position, identify the relationship among basic characteristics of fan industry, competition
analysis & supply chain analysis. Furthermore, the scope of this report also includes a study
conducted specifically on market growth in various country.
1.4 Objectives of the studies
The main objective of this study is to analyze the fan industry in Bangladesh .The specific
objectives are given below.

Specific objectives
1. To show the basic characteristics of Bangladesh Fan Industry.
2. To show the competition structure of the Bangladesh fan Industry
3. To critically evaluate the supply chain of Fan industry of Bangladesh
1.5 Limitations of Study
This research paper is based on various articles home country & foreign country. Though it has
been tried to collect and interpret data as accurate as possible, there are some limitation
associated with it. Some of these limitations are given below.

I. Sample size of the market growth & market size is consider few year. So large number of
sample size could make a difference in result.
II. Another limitation is lack of time to carry out the study. It takes a lot of time to observe
the target group and make a plan to carry out a research. We only have few months to
complete this thesis paper.
III. Collected articles are also based on doing survey & sometime most of the company don’t
share correct system because another firm outsourcing the strategy.
IV. Study shows that fan industry operating system measured only market share or market
growth in this research.

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 V. Another matter of consideration is the ability and mental setup of researcher which has
also a great impact on data collection.

1.6 Study outline

In this study there are 5 chapters. In chapter-1 introduction which includes briefly explains
about introduction, rationale of the study, objectives of the study, scope of the study,
limitation of the study and finally the study outline. Then in the chapte-2 literature review of
the study is described. In which some studies on different countries about fan industry. In
chapter-3 research methodology has been described. Chapter-4 is data analysis; this chapter
includes both descriptive and qualitative analysis. It also includes some graphical
representation. Finally the chapter-5 is laid out as recommendations and conclusion.

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Chapter 2: Literature Review

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2.1 Perspective on Fan industry in different countries
In this section a broad review of literature that is connected to the problem will be performed. The
literature will cover areas linked to reasons and outcomes to gives a general idea of what has been
previously studied by others researchers. Also, this part will provide a foundation for the analysis.

Electric fans made their first appearance in the 1880s. These early fans were made primarily of
brass. Over the ensuring decades, fans were constructed out of a large number of materials,
st
including steel, copper and aluminum. In the 21 century, most domestic fans are made out of
plastic. Schuler Wheeler invented the electric fan in 1886.

"Wheeler (1860-1923) figured out how to apply the fledgling science of electricity to make a fan turn.
Drawing on the work of Thomas Edison and Nicola Tesla, wheeler invented a desktop fan consisting
of two blades unshielded by any sort of protective cage powered by an electric motor. The fan was
marketed by the Crocker & Curtis Electric motor Company, further development of the electric fan
fell to Philip H. Diehl, a German immigrant who’d lost everything in the 1871 Chicago Fire.

In 1973, Texas entrepreneur H. W. (Hub) Markwardt began importing highly efficient ceiling
fans to the United States that were manufactured in India by Crompton Greaves, Ltd. Crompton
Greaves had been manufacturing ceiling fans since 1937 through a joint venture formed by
Greaves Cotton of India and Crompton Parkinson of England, and had perfected the world's most
energy efficient ceiling fans thanks to its patented 20 pole with a highly efficient heat dissipating
cast aluminum rotor. These Indian manufactured ceiling fans caught on slowly at first, but
Markwardt's Encon Industries branded ceiling fans (which stood for Energy Conservation)
eventually found great success during the energy crisis of the late 1970s and early 1980s, since
they consumed far less energy (under 70 watts of electricity) than the antiquated shaded pole
motors used in most other American made fans.

Gujrat, and Gujranwala, are two key players in the production of fans which is almost 98%. Some of
the production is also done in Lahore and Karachi. Fan sector is not only earning precious foreign
exchange for the country but is contributing in multiple ways to the national economy. A major
contribution of the fan industry is that it has developed clusters in Gujrat and Gujranwala. Around
90% production cater to domestic demands. Fan industry is producing around 90,000 indirect
employment opportunities. Thus its contribution to total manufacturing employment is up

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to 1.54%. Pakistan’s exports are mainly concentrated in low income markets, such as Africa,
Bangladesh and some Middle East countries. The average export price of Fans made in Gujrat
and Gujranwala is around $23-25, which is much lower than some of the more sophisticated fans
which sell for around US$400-500.

2.2 Fan industry in Bangladesh

The electrical sector of Bangladesh can be categorized into two major subsectors which are industrial
product sub-sector and household product subsector. Industrial products include electrical cables,
transformers, sub-station equipment, switch gear, insulator, industrial fan, magnetic contractor, heat
control system, etc. The household products include ceiling fan, table fan, different type of lights,
table lamps, bulbs, water heater, etc.; which are being assembled to a large extent4. Out of the total
3000 industrial units of electrical goods, 120 are manufacturing fans, mostly ceiling fans. Local
manufacturers are producing about 9.8 million pieces of ceiling fan against the demand of 10 million
per year. The ceiling fan manufacturing companies in Bangladesh are situated in different areas of
Dhaka city and a few are in port city of Chittagong. In Dhaka city, Mir-Hazaribag and Shyampur are
the places where a majority of the ceiling fan industries are situated. Every year around 10 ceiling fan
manufacturers enter the market. However, very few manufacturers manage to sustain in the industry.
Moreover, foreign competitors also make the market more competitive. As a result most successful
local firms think strategically to expand their products internationally. Government cooperation such
as reducing the import duty on raw material deserves consideration in order to allow these local firms
to prosper internationally. Some of the members of Bangladesh Electrical Merchandise Manufactures
Association (BEMMA) have suggested increasing import duty on foreign fans for the sustenance of
local companies.

Fan Industries Ltd, producing ceiling fans under the brand name Kashmir Fans, is one of the best-
selling companies in the industry. The company has a production capacity of manufacturing 1000
ceiling fans per day in a 12-hour shift. The company produces different varieties of fans ranging from
BDT 1400 to BDT 2500 at current price. Another competitor is BRB which started manufacturing
ceiling fans (brand name of Lovely Fans) in 2017 and the factory is located at Bangladesh Small &
Cottage Industries Corporation (BSCIC) Industrial Estate in Kushtia, one of the western districts of
Bangladesh. The factory is operated and managed by a group of skilled and experienced
professionals and also equipped with modern machinery and equipment. Therefore,

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BRB has been successful to produce exclusive range of ceiling fans of high quality and durability.
Moreover, they provide different models and designs along with variant colors like white, green
ivory and coffee with modern style. Super Star Ceiling, launched in 2017, is another competitor
which concentrates on the changing taste and lifestyle of the consumers.Beauty Ceiling Fans, product
of Mokhles Metal Indus-tries Ltd (MMIL), is one of the leading ceiling fan manufacturing companies
in Bangladesh, operating since 1980. Apart from manufacturing ceiling fans, the company also made
investments in importing other fans like desk fan, table fan, stand fan and exhaust fans under the
brand name “Beauty” by their subsidiary company S.S. Trading. Since the inception of the company
in 1980, the company has experienced important growth positioning as a market leader. MMIL has
an annual turnover of around BDT 150 million and has a production capacity of 100,000 ceiling fans
per year. However, the annual sales are around BDT 200 million if they include all the products that
are made and imported under the name ‘Beauty’ by the company. Visibility in terms of brand
recognition varies from place to place. For instance, the brand “Beauty” group is not readily
recognizable by the masses. However, people in areas like Pabna, Tangail, Bogra and Narshindi,
generally recognize the brand and product to be of very high standard. As part of the strategic tactic,
MMIL does not recognize itself with the ceiling fan industry but to be a brand that makes quality
products. On the other hand, imported fans make the market intensely competitive and expose
enormous challenges for the local producers. Imported fans like GFC Fans, Pak Fans, Wahid Fans
and Havel’s Fan are also key players in the market. Local companies deliver fans at affordable prices
and also capture a significant percentage of the market share. The small firms which produce poor
quality fans cannot survive in the industry. Therefore, the big firms who promise to provide good
quality products for a reasonable price survive in the industry. However, one of the main factors in
the ceiling fan industry is the income segment, that is, most of the people belonging to the lower
income segment prefer cheap products.

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Chapter 3: Methodology of the Study

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3.1 Research Design
In this research, the researcher attempts to find out the fan industry in Bangladesh. This research
is used descriptive & qualitative method to test Herfindahl Hirschman index analysis. This test
require to know about the market share or market size of the fan industry in Bangladesh.
Collected data are quantified and tabulated for Herfindahl Hirschman index analysis.
3.2 Population of study
There are 120 fan company in Bangladesh. In this study respondent are interviewed by
convenient selection from various Fan industry owner & professional.
3.3 Sampling Design
In this study respondent are interviewed by convenient selection from various backgrounds.
About 15 respondent are interview through the questionnaire .This respondent basically all of
them are male.
3.4 Data collection

The primary data has been collected through both structured and semi-structured interview
process. For the structured interview face to face conversation & for semi structure part those
who are less educated or cannot fill the question on their own, it collected the data through
conversation and observation via personal interview or over the phone interview. As we know
that many are busy for their job or other work, it is quit impossible to take long interview with
them personally. So over the phone interview has been chosen for a part of interviewee. I have
tried to ask these question easy to understand, as some bookish terms are explained by
conversation so those respondents don’t get confused.

Secondary data is achieved from various reports and publications, internet, television, magazine
etc. Literature review is based on these secondary data that focuses on many aspects the fan
industry in Bangladesh which give guidelines for broader perspective on this topic.

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3.5 Data analysis
In this report, In Part 1 from annual report of Bangladesh Electrical manufacturing
merchandising association & Statistics on Bangladesh manufacturing is to barrier to entry, value
chain analysis, product mix, assembling process etc. is presented and analyzed by various data
and then shown in table and bar chart is also used to present data.
In part 2 from the Objective analysis is about competition analysis, demand condition, factor
market which also presented and analyzed by various raw data and then shown in table similar to
part.

In Part 3, The Herfindahl-Hirschman Index (HHI) is an index that measures the market concentration
of a certain industry. A highly concentrated industry would mean a high degree of concentration,
whereby only a few players in the industry hold a large percentage of the market share, leading to a
near-monopolistic situation. A low degree of concentration would mean that the industry is closer to
a perfect competition scenario, whereby there are many firms of more or less equal size that share the
market. The HHI is calculated by taking the market share of each firm in the industry, squaring them,
and summing the result: HHI = s1^2 + s2^2 + s3^2 + ... + Sn^2 (where s is the market share of each
firm expressed as a whole number, not a decimal, Where n is the number of firm in the market).
Herfindahl Hirschman index testing is done.Detail calculation has showed in this report. Data is
presented and analyzed by Herfindahl Hirschman index testing.

3.6 Questionnaire design

The questionnaire is developed to meet the objective of the report so the questions are closely
related with the objects. This questionnaire is developed for 15 respondents who are engage in
st
the fan industry. This survey questionnaire has 2 parts. 1 part is personal information which
includes questions like name, gender, age, education, occupation etc.
st nd rd
After that objective analysis which includes questions based on 1 , 2 and 3 objectives. In the
first nine questions is about basic characteristics of the fan industry. Question number J to N is to
identify the competition analysis. Last question is related to supply chain related in this industry.
Every question includes 2 to 4 options which has mixed option like closed ended questions, open
ended question. The full version of the main questionnaire is attached with the appendix part

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Chapter 4: Analysis and Findings

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4.1 Basic characteristics of Fan Industry of Bangladesh

Basic characteristics of Fan Industry of Bangladesh are described below, these characteristics
are describe below:

Sl Characteristics Sl Characteristics
1 Number of the company 11 Distribution Channel
Industry growth 12 Vendor relationship
3 Number of employee 13 Business development services
4 Barriers to entry 14 Labor
5 Productivity analysis 15 Skilled Human Resource scarcity
6 Material 16 Management Capacity
7 Assembly process 17 No benchmarking indicators
8 Product mix 18 Technology
9 Local pattern demand 19 Research & Development
10 Legal Entities of Firms 20 Innovation initiatives

4.1.1 Number of the company

The electrical sector of Bangladesh can be categorized into two major subsectors which are industrial
product subsector and household product subsector. The household products include ceiling fan,
table fan, table lamps, bulbs, water heater, etc. there are 120 manufacturer mostly produce ceiling
fans. Local manufacturers are producing about 9.8 million pieces of ceiling fan against the demand of
10 million per year. The ceiling fan manufacturing companies in Bangladesh are situated in different
areas of Dhaka city and a few are in port city of Chittagong. In Dhaka city, Mir-Hazaribag and
Shyampur are the places where a majority of the ceiling fan industries are situated. Every year
around 10 ceiling fan manufacturers enter the market. However, very few manufacturers manage to
sustain in the industry. Moreover, foreign competitors also make the market more competitive. As a
result most successful local firms think strategically to expand their products internationally.
Government cooperation such as reducing the import duty on raw material deserves consideration in
order to allow these local firms to prosper internationally. Some

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of the members of Bangladesh Electrical Merchandise Manufactures Association (BEMMA)
have suggested increasing import duty on foreign fans for the sustenance of local companies.

4.1.2 Industry growth

The fan industry sector in Bangladesh is one of the fastest growing industries with high
potentials for success. In the 1970s, there were only a very few companies producing electrical
products. Some of the renowned companies were BRB Cable Industries, Paradise Cables,
Transom Cables, Super sign Industries, and Khawaja Cable Industries etc. However, during
1978–2016 the industry managed to attract about 1000 investors and at present there are about
2500 domestic companies producing 75 types of electrical products in Bangladesh. Fan industry
manufacturers of Bangladesh are producing of BDT 150 billion (USD 1.92 billion) per year
against the local demand of approximately BDT 200 billion (USD 2.56 billion).local market for
electrical fan is growing, in the last six years’ statistics show that Bangladesh fan industry sector
is growing at about 28% to 34% annually. The main advantage of home grown technology is that
it offers affordable products that enhance the quality of life of local people and provide easy
access to the market. Indeed, there is a large domestic market which is increasing because of
steady increases in income and consumption of electricity.

Figure: 01-Industry growth

Industry Growth

15%
2014
34%
2015
23% 2016
2017

28%

Source: Bangladesh Electrical Manufacturing merchandising association report 2016-2017

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4.1.3 Number of employee

Most of the people are engage in fan industry in Bangladesh. But people are not more interested
to engage in this industry because most of the company produce their product in the half with in
the whole year as a result seasonal unemployment is generated. Bangladesh labor force survey
report shows that very few people related to fan industry.

Figure: 02-Employment in Fan sector in Bangladesh

Employment in Fan Sector

2000000
1800000
1600000
1400000
1200000
1000000
800000
600000
400000
200000
0
2014 2015 2016 2017

Employment in Fan Sector

Source: Bangladesh labor force survey, BSS-March, 2018

4.1.4 Barriers to entry

Opportunities perceived at Dhaka city & outside of Dhaka is strongly pursued there because
barriers to entry are lower than elsewhere. Needed assets, skills, inputs and labor, are readily
available in Dhaka city & outside of Dhaka region and these can be assembled more easily for a
new enterprise. In addition, the cluster itself presents a significant local market. The entrepreneur
seeking to benefit from established relationships often prefers to stay in the same community.
Our survey also depicts that entrepreneurs of the area generally believe the entry barriers are low.
Interestingly, the smaller and informal firms feel that barriers to entry are stronger. This may be a
result of these respondents misunderstanding the question as how competitive it is to enhance the
market share, given 70% has been absorbed by the big four players. Moreover, the smaller firms

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in the cluster believe that access to capital is an entry barrier into the cluster as well as significant
constraint impeding their ability to gain further market share.

Figure-03- Barrier to entry in the fan industry

Barriers to Entry in the Fan industry

100%

80%

60%

40%

20%

0%
Awareness Competition Govt. Regulation Finance No Barries
2015 2016 2017

Source: statistics on Bangladesh manufacturing 2014-15

Examples of competition include the ability of the medium-sized manufacturers to rapidly copy
the new designs introduced by the larger manufacturers and to offer the copy at a significant
price drop. Frequently, they use look-alike brand names for example ‘Asian fan company (one of
the premium fans is ‘Asia Fan Company’) .These firms manufacture a relatively limited range of
medium priced economy fans, utilizing fewer capital-intensive processes and lower quality
material, and selectively outsourcing components to low cost vendors. Moreover, the smaller
manufacturers have the ability to produce low cost fans at minimal costs. The low costs are
achieved by using simpler, widely diffused technology and older machines. Moreover, they hire
only seasonal employees. Raw material is generally of inferior quality, for instance, ‘drum steel’,
made from recycled metal drums, and is used as material for producing rotor armature. This is a
major cost saver, however, severely limits the quality of the fans and also makes them highly
inefficient in terms of electricity consumption.

4.1.5 Productivity analysis

Productivity analysis tool is employed to explain the specific issues faced by the producers of the fan
industry. Where data is available analogies with reference to the global value chains are also

15 | P a g e
 made to identify critical weaknesses. The analysis points out that there are several supply side
constraints as well as weaknesses in value addition. It must be emphasized that the value chain
presented below represents what is typical for the industry. It is possible that some larger firms
may be slightly better placed and some small ones slightly adversely placed than the
representation presented below. However, the numbers provided below have been verified by
industry representatives. The overall structure of the value chain suggests that industry typically
adds 20% in value addition of around tk 450 per fan.

Presently, the industry is producing fans which are used as basic utility good, if higher value is
targeted the industry players will have to look towards high income markets where fans are a
fashion items, example of USA, which imports fan of above US$ 1 billion. In view of existing
capabilities an understanding of fans technology by the fan producers the industry can easily
move to developing more fashion oriented designs. The capacity issue is therefore, seems to be
related to lack of finance and due to lack of awareness.
Figure: 04- production Analysis

Figure-3 value chain & production Analysis

Material Cost (tk. Process including Marketing & Logistics (tk. Sales Price tk. 2100
140 labor (tk. 300) 50)

4.1.6 Material

The value chain analysis is that over 80% of the costs represents the material and parts required
to produce the fan. Out of this 60% of the materials (such as: M.S sheet, aluminium sheet,
Silicon Sheet, capacitor, bearing, dices) are normally imported.

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 Figure-05 Source of Material

Material

40% Import

60% Domestic

The heavy reliance on materials results in volatile performance as minor changes in prices of
parts but materials result is significant cost variability. The high value also suggests that there is
little value addition cost savings opportunities that are available. Moreover, as compared with
international competitors such as China the local industry is at a disadvantage due to lack of
research and development in materials. China has been able to diversify its production of
materials required for fan manufacturing moving into PVC, composites of metals etc.
Bangladesh on the other hand is still relying on pure materials which are not cost effective. The
strategy to address the issue is to facilitate the linkage between the industry and research &
development institutions. The industry should lay out their requirements about materials and the
research institutions should develop is newer materials that are cost effective. Additionally,
standardization of parts should be encouraged in the industry. Moving to common parts will
imply that large scale production is possible which will assist in reducing costs.

4.1.7 Assembly process

Assembly process which is the main portion in terms of work head in a typical factory contributes to
value addition. The portion predominantly represents wages paid to workers working on various
machines. The main issue in this segment of the value chain is the low productivity due to inadequate
up gradation of technology. More specifically, each process in the industry uses an older technology
as compared to its counterparts. For example, the current technology used for body turning is lathe
machine, if, technology is upgraded to auto machines the productivity will increase by at least 4/5
times. For pedestal fans currently majority of the industries use semi-

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manual coiling techniques, moving to automatic coil inserters will increase productivity by 5
times. The change in technology will increase productivity, quality and performance of the
product. When considering global value chains, China’s production processes are much more
efficient and highly productive. The Chinese fan manufacturers on average produce 45-50,000
Fans/ day as compared to the average firm in Bangladesh only making around 400-500 fans/day.
The current levels of productivity are extremely low not only due to lack of modern technology
but also due to weak production process flow management. The assembly line in factories need
to be rationalized so that the existing set ups achieve better technology.

4.1.8 Product mix

Ceiling fans represent 60% of the total fan production in Bangladesh, while pedestal fans
account for another 30%. The remaining 10% is divided into other products including table fan,
table-cum-pedestal fans, wall bracket fans, exhaust fans and propellers. However, for export
perspective the pedestal fan is more in demand as compared to the other types.

Figure-06: Product mix of fan industry

Product Mix

Ceiling Fan Pedestal Fan 30 Others

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4.1.9 Local demand patterns

The domestic market has continued to expand with the increase in construction activity and
electrification in rural areas in the recent past. Our study also revealed that the demand for fans
was directly correlated with the growth in construction sector. Last ten years has seen double
digit per annum growth in the construction of the country and most of this activity has been a
result of large housing schemes and sky rise commercial buildings. This upsurge has created
more domestic demand for fans of all types. As much as 75% of the total respondents feel that
local demand for fans is approximately 10 Million fans a year. This demand is almost 50-100%
above the current fan production by the industry. This finding suggests that growth for the
industry will not necessarily come from export market but it could also come from the untapped
potential in the local market. If the industry perception about the local demand is correct then
there are possibilities of making gains via scale economies.

Figure: 07-Demand condition

Demand condition

2017

2016

2015

2014

0 2000000 4000000 6000000 8000000 10000000 12000000

Source: BEMMA Report-2016/17

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4.1.10 Legal Entities of Firms

The fan cluster mainly consists of individual proprietorship firms and small partnerships. The
level of formality is relatively high with over 90% of the firms being registered with the firm
registrar. However, only a few large firms have been registered as private limited companies
under the Companies Ordinance, 1994 .The ownership structure represents the inherent myopic
and closed mind set of the sector. The industry over the years has preferred to stay small and not
invest significantly in expansion, especially that of its management and ownership structure.
Hence, the sector is somewhat hostage to its old competitive advantages and production secrets.
The industry shies away from introducing new elements that could bring more transparency in
operations and devolve control from the owners.

Table-01-Legal Entities of Firms

Year Type of legal Total

Organization

Individual ownership/ Partnership Private limited

- proprietorship company -
2014 65.02% 6.51% 28.47% 100%

2015 48.57% 12.75% 38.68% 100%

2016 54.26% 15.38% 30.36% 100%

2017 58.85% 8.76% 32.39% 100%

Source: Bangladesh Electrical Manufacturing merchandising association report 2016/17

4.1.11 Distribution Channel

Producers extend various incentives to dealers to stock their products. They provide advertising and
publicity material, and in some cases pay for dealer’s premises. As with subcontractors,
manufacturers provide fans to dealers on credit, who repay in instalments with the bulk of the
payment being cleared at the end of the season. This often requires producers having to visit dealers
in order to obtain full payment. Dealers, however, provide little in the way of feedback to raise
quality standards, while protection from global competitors results in little pressure on manufacturers
to innovate. Some of the manufacturers also have a specialty retail outlet for direct

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selling to the consumer. For most of the firms, advertising implies using print and electronic media
as well as billboards to promote and protect brand names nationally. Advertising expenditures can
be high at times.

Table-02- Sale distribution channel

Year Sale distribution Total

channel

Through national Through Through

- dealers national dealers national -
and whole dealers, whole
sellers sellers and
direct sales
2014 22.5% 45% 32.5% 100%

2015 27.5% 38% 34.5% 100%

2016 17% 35% 48% 100%

2017 20% 39% 41% 100%

Source: Bangladesh Electrical Association annual report 2016-17

4.1.12 Sourcing of raw materials

Majority of firms in the industry rely on local suppliers for raw materials and for a wide range
of other key inputs. In the fan industry, approximately two-thirds of firms use local suppliers for
the main raw material. Most of the firms acquire capacitors from local suppliers, 88% obtain
enameled copper wire locally, 86% buy plastic components in the cluster, 88% are supplied
imported ball bearings by local suppliers and 80% get their paint from the local sources. This
level of specialization in input suppliers is further captured by the fact that only a handful of
firms make cardboard packing boxes and packing material exclusively for the fan sector and
similarly there are some industry-based printing units that make labels for firms. Our study
results also indicate that around 70% of the raw material used in fan production is imported as
shown in the figure below. However, these materials are generally usable only in the
manufacturing of low quality fans. Moreover, suppliers do seek feedback and provide assistance
to fan manufacturers as and when problems occurred with inputs supplied.

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 Figure-08 Imported Components Used by the Fan Manufacturers

IMPORTED COMPONENTS USED BY THE FAN INDUSTRY

IMPORT DOMESTIC

70%

%
5
8

5
5
45%
%
4
2
30%

2015 2016 2017

Source: statistics on Bangladesh fan manufacturing 2015-16

4.1.13 Vendor relationships

Since the industry is working on a low cost model, the costs of writing, monitoring and enforcing
contracts with vendors are very low in the whole industry. The orders are generally given in person,
or at times over the telephone. Detailed written specifications are not necessary as most of the parts
are standard and have not changed in design or specification over the years. Competition is intense,
hence most vendors are very punctual and conscious of quality. Late deliveries or bad quality would
result in the customer walking away to any one of the other competitors. It would also result in a
quick loss in reputation as the fan manufacturing community is small and it is interconnected through
family ties and friendships. Similarly, if a customer delays payments or does not follow-up on other
commitments, not only will the vendor walk away to another assembler, but it also causes a loss in
reputation for the customer. The basic fan design has not changed over the years, and local weather
conditions, as well as low per capital income, have resulted in a steadily increasing demand for
inexpensive fans in the local market. There is, however, a degree of co-ordination in production
between component vendors and fan manufacturers.

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4.1.14 Business development services

There are a broad range of activities that business development services (BDS) can take for the
up gradation of the fan industry. These include training, counselling, and the provision of market
information, the development of commercial entities, technology development and transfer, and
facilitation of business linkages. However, there are currently no business development services,
tailored for the fan industry, available to the firms. For example, completing even well designed
registration requirements can be an obstacle especially for SME firms due to their limited
management, monetary and temporal resources. These enterprises are hard pressed to find the
time to deal with the cumbersome paperwork.

4.1.15. Labor

The issue of seasonal production is a critical hindrance for the growth of industry. This seasonal
production is not only an impediment to investment but is also draining out the skilled workers
from the industry. The workers have little incentive to train for an industry that only provides
employment for 5 months during the year. The seasonality is affecting the productivity and
deterioration of skills in the industry. However, even with a shortage of skilled workers in the
industry and seasonality effects the worker productivity has been consistently improving over the
last few years.

4.1.16 Skilled Human Resource scarcity

Demand is an important impediment to skilled manpower. Fan industry offers employment

opportunities for 5-6 months which does not attract workers at first place. Secondly, there are
also inadequate training facilities for the industry. This is an impediment to achieving better
technology i.e. low level of skills is impeding investment into modern machinery. The study
results also depict that there is a shortage of skilled workers in the industry. The survey results
show balanced response by the firms. Over 30% of the respondents observed that they faced
problems in procuring skilled workforce.

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 Figure-09 Availability of Skilled Workers in the Fan Sector in Bangladesh

Skilled Workers in the Fan Sector

45%

38%

30%
25%

2014 2015 2016 2017

2014 2015 2016 2017

Source: www.mpra.us.2016 & manual of labor statistic-2013

In light of the long-term labor market trends that have resulted in stagnant wage growth for those
in the lowest of the income distribution because of global competition, it appears that most low-
wage workers need to increase their skill levels in order to raise their earnings. However, there is
no promising intervention in the fan industry to improve the existing skills of the labour force.

4.1.17 Management capacity

Managerial practices are beneficial for productivity. These can be divided into four areas:
operations, monitoring, targets and incentives. Operations in the fan industry should focus on the
introduction of manufacturing techniques, the documentation of process improvements, and the
rationale behind introductions of improvements. For example, consider the management practice
of performance tracking, where a firm systematically collects, analyzes, and communicates key
performance indicators. The absence of any easily collected and analytically useful measures of
firm performance in the fan industry indicates poor management. Good monitoring of the firm
should focus on the tracking of performance of individuals, reviewing performance, and
consequence management. Performance of the labor force is generally made through subjective
evaluations of the owner. Good managers also examine the type of target, the transparency of

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targets, and the range and interconnection of targets. The owners of the fan manufacturing firms
generally do not have a specific goal to target except meeting the current stream of orders.
Finally, good managerial practices cover the area of incentives which include promotion criteria,
pay and bonuses, and fixing or firing bad performer, where best practice is deemed the approach
that gives strong rewards to those with both ability and effort.

4.1.18 No benchmarking indicators

The inadequacy of management results in poor tracking of performance against key benchmarks.
The firms do not have any capacity to measure their performance against targets and production
standard. There is no understanding of lean management tools at factory level neither there is any
benchmarking done at the sector level.

4.1.19 Technology

The large firms in the industry possess better quality and more capital intensive machinery as
compared to the medium and smaller players in the industry. For example, the larger players
generally have automatic winding machines, automatic progressive die stamping power press,
pneumatically controlled capstan lathe machine, as well as a few other imported machines that
collectively cost more than tk. 70 lac. Moreover, investment in imported machines has allowed
the large firms to manufacture lightweight fans. The larger firms are also using conveyer
management to achieve higher production.

4.1.20 Research & Development

R&D has not only been limited on the engineering side but also on the design and product
development side. The study analysis also depicts that the respondents generally feel that there is no
proper research and development institute for the fan industry in Bangladesh for the Product
development. The larger units (National tongi, Asia fan, Kashmir fan etc.) have individually invested
in some research and development which has provided certain advantages to these large companies.
On the whole, however, the industry has been deprived of any systematic engineering upgrade to
improve fan quality and characteristics. However, the electrical fan industry in Dhaka
& outside of Dhaka city has grown steadily during the last 30 years. However, this growth neither
brings in its wake a reasonable amount of product standardization across the industry nor did it bring
an internationally acceptable quality. Given that fan manufacturing is an assembly process,

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the size of the output is highly dependent on the timely availability of inputs. As the parts are non-
standardized, vendors have failed to achieve scale as they are required to produce several different
designs even for very basic parts used in fan manufacturing. On the other hand, companies that have
achieved some scale and success such as National Tongi Fan Company, Asia Fan Company, Kashmir
Fan Company etc. have moved to standardized parts and have invested in modern manufacturing
processes. The large manufacturers generally introduce at least one new design every year. This has
resulted in the rapid introduction of several new designs in the form of table, exhaust and pedestal
fans. (Source: National fan industry survey study 2012)

4.1.21 Innovation initiatives

Over the last few decades, there has been a steady introduction and diffusion of technologies in
the fan industry. The largest firms have generally introduced the newer technologies. Initially,
new technologies are treated as proprietary and developed in-house; for example, when the
CEOs of two premium fan producers visited Japanese fan producers in 1984, one of the ideas
they brought back was that of plastic bodied fans. They imported plastic injection molding
machines and developed in-house expertise in the new technology. These fans gained popularity
in the 1990s despite the general psyche of the Bangladeshi market that heavier fans were better.
This period witnessed an increasing number of new designs in plastic pedestal fans, exhaust fans
and wall bracket fans. Once the technology reached the vendors, it became available to the
smaller manufacturers. For example, Rotor & Stator were produced Asia Fan Company in 2014.
However, as the technology gradually spread, most of the Domestic Fan Company decided to use
this product since their cost of production was about 20% -35% lower (Ibrahim metal engraining
workshop-2018)

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4.2 Competition analysis on Bangladesh Fan Industry

Competition analysis in marketing and strategic management is an assessment of the strengths and
weaknesses of current and potential competitors. This analysis provides both an offensive and
defensive strategic context to identify opportunities and threats. Profiling combines all of the relevant
sources of competitor analysis into one framework in the support of efficient and effective strategy
formulation, implementation, monitoring and adjustment. Competitor analysis is an essential
component of corporate strategy. It is argued that most firms do not conduct this type of analysis
systematically enough. Instead, many enterprises operate on what is called "informal impressions,
conjectures, and intuition gained through the tidbits of information about competitors every manager
continually receives. As a result, traditional environmental scanning places many firms at risk of
dangerous competitive blind spots due to a lack of robust competitor analysis.

4.2.1 Market competition

When firms have to continuously compete with one another for sales and market share, they are
incentivized to do so through the provision of goods and services that are superior to that of their
rivals. The firm that does this the best “wins.” The consumer, however, is ultimately the winner
in this scenario as their subjective needs and wants are being met at a fair, market price. Because
competitive markets drive down prices, this frees up resources for a consumer to spend on other
goods and services. Market competitor in Bangladesh basically are: National Fan industry,
G.E.C. Bangladesh Ltd., Sheena Kollyan Songostha, Asia Fan industry etc. The report on global
electric fan market evaluates the market growth trends of the industry through historical study
and estimates future prospects based on comprehensive research. The report extensively provides
the market share, growth, trends and forecasts for the period 2016-2017. The market size in
terms of revenue is calculated for the study period along with the details of the factors affecting
the market growth.

Market competition can be analysis on the basis of this formula which is called the Herfindahl
Hirschman Index (H.H.I).This formula basically calculated on the market share of the industry.

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 Table-03 Market share of various country (local market share)

Year Market share in percentage Market share

2017 27% .27
2016 23% .23
2015 20% .20
2014 16% .16
Source: Bangladesh Electrical Manufacturing Merchandising Association2016/17

HHI = s1^2 + s2^2 + s3^2 + ... + Sn^2 (where s is the market share of each year expressed as a
whole number, not a decimal, Where n is the number of year). Here,

 H.H.I. Index below 0.01 or 100 which is indicate that Highly Competitive Market.

 H.H.I. Index below 0.1 or 1000 which is indicate that unconcentrated Market.

 H.H.I. Index from 0.1 to 0.18 (1000 to 1800) which are indicate that moderate Market.

 H.H.I. Index over 0.18 or 100 which is indicate that Highly Concentrated Market.

Now,

H.H.I = 27^2 +23^2+20^2+16^2 =1914 (Highly concentrated market)

Table -04 Market share of various country (local market share)

Year Market size Market share

2017 100 .27
2016 85 .23
2015 80 .20
2014 75 .16
Source: Bangladesh Electrical Manufacturing Merchandising Association2016/17

Here,

H.H.I = .27^2 +.23^2+.20^2+.16^2 =0.1914 (Highly concentrated market)

Result Analysis
Hence it can be concluded that Fan industry market is highly concentrated in this situation.
Because, its meet category of following category, H.H.I. Index over 0.18 or 100 which indicates
that Highly Concentrated Market.

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4.2.2 Price competition

The manufacturers in the fan industry face intense price competition. This is mainly due to the
fact that the capital requirement to initiate an assembly operation is moderate. This, coupled with
a lack of concern for quality, normally leads to price competition and some of the medium unit
manufacturers also informed us that there were several instances of price undercutting in the
industry. Contrary to these observations, the study results show that the price of the fans have
generally increased in real terms in the industry due to increase in the raw material prices and the
costs of doing business. Despite the price competition among the incumbent firms, new players
continue to join the industry. The increment in the number of firms have somewhat depressed the
prices as in majority of the cases the new entrant uses a ‘low pricing’ strategy to gain market
access. Our study depicts that the prices in real terms have increased, however, the prices may
have increased to a much higher level if new players were not entering in the industry.

Table-05 Price competition

Category Group Fan name MRP

Brand Click Fan Tk.2300
BRB Fan Tk.2500
National Tongi Fan Tk. 2400
Jamuna Fan Tk. 2700
Non brand Kashmir Tk.1600
City fan Tk.1500
Al Habib fan Tk.1450
ABC Fan Tk. 1300
Source: BEMMA Price list 2018

Above this table, we can be said that branded fan is so high price compare to local fan company,
most of the reasons is that low price of the fan is the main hindrance to grow the industry. But
large manufacturer may sustain in long term then the domestic small firm.

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4.2.3 Supply competition

Supplier competition means that suppliers offer goods or services on the market in an endeavor
to meet demand (from intermediate customers or consumers). Demand seeks the best
combination of quality and price for the products it requires.to manufacturer the fan, the
manufacturer requires various types’ raw materials. Some of the local supplier are:

Rotor & Stator : this is called the fan core .this product supplier is not available in Bangladesh
but only one supplier of Asia Group of Industries, which is located at Chittagong.

Bearing & Capacitor: Some of the importer available in Bangladesh. Main supplier of Jabed
Fan Company which is located at Nawabpur, Dhaka. Others Suppliers are: Modern Electrical
industry, AL-Amin enterprise.

Sheet & Blade: Sheet supplier is also few in Bangladesh. Major supplier are: Abul khayer
group, Asia group, Kalti-max Company & RFL group.

4.2.4 Distribution competition

Distribution system, in which a company grants exclusive rights on its products or services to
another company. In most cases, the distributor's market power is limited by inter-brand
competition. The products are distributed mainly through wholesalers and large retailers, and
sometimes even to large companies that buy in bulk for their factories and/or offices. Most of the
group of the group of company follows the same way. But local producer distribute their product
based on whole Nawabpur market as well as out of Dhaka city depends on their outside party.

4.2.5 Logistic & support competition

Bangladesh have more or less 120 fan factory in Dhaka city & outside of Dhaka city like
Chittagong, Barisal, kushtia, Gazipur. Most of the domestic company production size is high &
medium & low on the other hand, group of company production is moderate. Major group of
company provide the logistic support to their dealer and agents. For example, RFL Group, BRB
Group, Paradise Group, Jamuna group to provide their dealer logistic support. All kind product
delivered their store to the mention place with in Dhaka city & Outside of Dhaka City.

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4.3 Supply chain of Fan Industry in Bangladesh

A supply chain is a network between a company and its suppliers to produce and distribute a specific
product, and the supply chain represents the steps it takes to get the product or service to the
customer. Business logistics management refers to the production and distribution process within the
company, while supply chain management includes suppliers, manufacturers, and retailers that
distribute the product to the end customer. Supply chains include every business that comes in
contact with a particular product, including companies that assemble and deliver parts to the
manufacturer. Supply chain has two cluster, one is upstream & another is downstream.

Figure-10- supply chain process of fan industry

Upstream process

Downstream process

The upstream stage of the production process involves searching for and extracting raw materials.
The upstream part of the production process does not do anything with the material itself, such as
processing the material. This part of the process simply finds and extracts the raw material. Thus, any
industry that relies on the extraction of raw materials commonly has an upstream stage in its
production process. In a more general sense, "upstream" can also refer to any part of the production
process relating to the extraction stages. Examples of Upstream Processes, in the fan industry,
sourcing the sheet (Almunium & Steel) is the main characterizes of upstream process. Additionally,
the upstream process in this industry involves importing sheet from foreign country. The upstream
stage in the production process may also manifest itself as a supplier providing raw materials to
manufacturers or other businesses that ultimately process the materials.

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In upstream process, manufacturer collects the sheet then converted into Rotor & Stator which is
required to grinding and molding the wear. While the wear is molding some extra wear out of rotor
& stator then we cutting it. When we use casting in the fan body must varnishing the body and
then winding it properly. The first major in this process after material procurement is melting and
die-casting of aluminium.The downstream stage in the production process involves processing
the materials collected during the upstream stage into a finished product. The downstream stage
further includes the actual sale of that product to other businesses, governments or private
individuals. The type of end user will vary depending on the finished product. Regardless of the
fan industry involved, the downstream process has direct contact with customers through the
finished product. Examples of Downstream Processes, in fan industry, the downstream process
consists of sheet converting into rotor & stator, almunium blade & Steel blade, others semi-
products and then selling those products to customers. However, any kind of plant that processes
raw materials may qualify as operating within the downstream stage of production. A company
that combines both upstream and downstream processes is an integrated company.In downstream
process, the producer produce the finish goods then distribute it through their dealer. Dealer
delivery the fan to their respective wholesaler and sometimes sales in retail customer. Ultimately,
retailers are sale to the final consumer. For example, Asia group namely called it brand name is
Asia fan, we are the producer of ceiling & pedestal fan, after produce final product, then sale to
wholesaler specially Nawabpur in Dhaka, New market in Chittagong, Jessore & Rajshahi
market. Besides, we are contact with the supplier who are ordering the fan with the given brand
name. Thus, we are distribute our fan whole in Bangladesh especially through dealer.

4.3.1 Critical problem of Supply Chain

In our country,Fan industry supply chain is not smooth because most of the owner don’t aware
regarding this issue.Most of the dealer or reatiler don’t get the product on time due to mismatch
our schedule in the factory level as well as logistic support.As a result,most of the dealer or
wholersealer are fallen in problem.Transportation system is not also good beacuase taffic jam is
reponsible for this reason.Manufactuer is also face problem like Raw materails don’t come on
time,lack of skillful manower.Thus, supply is not become more effective for those reasons which
are above mention.

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4.4 Findings

After having completed a thorough analysis of the study and the literature review that majorly
described the different studies of Fan industry, we can determine the findings. The findings are
given below

Fan industry’s growth rate is increased day by day. Recently, Most of the employee are
interested to fan industry because market demand of fan is increased. Respondent says that
skilful manpower gradually raise. Each year, almost twenty (20) fan manufacturer are enter into
market. Most of the raw materials imported by local suppliers. Most of the company used high
technology based automated machine.
Market Competition is highly concentrated in this industry. Domestic supplier competition is
also tough because of price manipulation. Price competition is so high. Respondent says that Fan
industry’s market is highly concentrated market.
Supply chain must keep smooth to deliver the product from manufacturer to dealer/retailer. Some
of the company delivery the fan to the final consumer like: RFLgroup. From this study we can
easily come to conclusion that easy to entre and easy to wipe out because no law is not
applicable in reality.

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Chapter 5: Recommendation and Conclusion

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In this sector, someone can do the work in future because this sector is also growing high
speedily rather the people also interested to set up new industry. Someone can do the work
regarding on this sector. After analyzing the fan industry on Bangladesh is very critical issue.
Domestic fan industry in Bangladesh has contribution in our economy. Based on the findings of
the study some recommendations may be suggested. In this report, Fan industry has positive
relationship among the industry growth, skillful manpower & market share. Respondent says that
most of the raw materials try to produce in our country so that every category of the people can
purchase it & to meet our domestic demand we can export our fan in the others countries. New
comer of the fan industry should follows cost leadership strategy & Total Quality Management
so that they are able to survive in the long term in the market. Price should be affordable &
quality also be standardized so that market share is increased every year. No doubt, the
entrepreneur is interested to set up new venture because market is highly concentrated.

The aim of this study was to examine how the fan industry in Bangladesh. The theory part included
the overview of main characteristics of the fan industry. A competition analysis describe how much
this industry is competitive in case of market, price, supply & logistics competition is so rough. A
sample of market size & market growth data taken from Bangladesh Electrical Manufacturing
Merchandising Association. Results of the empirical study indicated that there is highly concentrated
market in the fan industry. The result also shows that family, friends and neighbors are the most
important factors that effect on decision making when selecting fan brand. In addition, buyer of the
fan can also base their selection on perceptions, beliefs and attitudes towards brand which is use for
his/her home appliance. This research focuses on the fan industry in Bangladesh. Studies shows that
fan market is the highly concentrated market as we said determinedly.

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 Bibliography

1 .https://www.scribd.com/doc/106703002/ tdap report on fan industry in Pakistan

2. https://www.bharatbook.com/MarketReports/india-fan/550878
3 https://www.slideshare.net/mehmood_taha/fan-industry-of-pakistan
4. https://www.scribd.com/doc/42062819/Fan-Industry-of-Pakistan-A-Critical-Analysis
5. http://www.digitaljournal.com/pr/3555547
6. https://en.wikipedia.org/wiki/Fan_(machine)
7. https://en.wikipedia.org/wiki/Ceiling_fan
8. https://bdnews24.com/classifieds/household/national-fan-bangladesh-price.html
9. http://www.clickbd.com/bangladesh/1932176-national-fan-tongi-10yr-wr.html
10. http://www.familyneeds.net/tags/city-ceiling-fan-price-in-bangladesh/
11. http://www.pricebd.net/jamuna-ceiling-fan-luxury-luxury/
12 .www. Fan economy in the Chinese media and entertainment industry.com
13 .www.ceiling fan industry articles.pdf
14. www. ceiling fan the overlooked appliance in energy efficiency discussions.com
15. www.Fan Inddustry in Gujrat & Gujranwala.com
16. www.indian.fan.com
17. http://ijrmbs.com/vol1issue2/1/r_sivanesan.pdf

18.https://www.researchgate.net/publication/312629431_National_Fans_Limited_of_Bangladesh

19. www.asiafan.com

20.SupplyChainhttps://www.investopedia.com/terms/s/supplychain.asp#ixzz5TDGEqB9U

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 Appendix: Research Questionnaire
Interview’s Questions for the People of fan industry (Based on Bangladeshi Fan Industry)
Name:
Gender:
Age:
Education:
Occupation
Designation
Industry name
Location

a) What is the legal entity of your company?

1 2 3
Individual proprietor Partnership Private limited

b) When your fan industry was established?

c) What types of management styles are there?

1 2 3 4
Coercive Authoritative Participative Afflictive

d) How many employee work in there?

e) What types of skill people work in there?

1 2 3
skillful people Semi-skill people Others

f) How many fan company are available in Bangladesh?

g) What are the main barrier to enter the market?

h) What is the main source of Raw Materials?

1 2 3
Domestic Supplier Direct Import Others

i) Do you think that, Is the demand of fan is increased?

1 2
Yes No
j) How many fan produce in a year?

k) How much market share do you have?

1 2 3 4

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 10% 15% 20% 25% above
1 2 3
Automotive Semi –automotive Manual

l) What types of machine use work in process in your company?

m) What is the market competition in this industry?
1 2 3
High Medium Low

n) Is the price competition so high?

1 2
Yes No

o) How to distribute your product?

1 2 3 4
Dealer Wholesaler Retailer Others

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