Robust economic growth in Bangladesh is forecasted to be accompanied by stable population growth and a young population structure. The country’s population will be primarily composed of young tech-oriented individuals who will enjoy rising GDP/capita in the coming years. Demand for consumer electronics, such as smartphones and laptops, is expected to expand. Smartphone penetration in Bangladesh, which currently stands at 31%, is projected to increase to 75% by 2025. Encouraged by macroeconomic trends and trade policy, local and foreign phone manufacturers have rolled out or plan to roll out on-shore manufacturing and assembling of phones in Bangladesh. Many of these manufacturers would be facilitated by the availability of locally manufactured accessories, such as batteries and chargers, for their products.
A leading local private power producer was looking to leverage this increased demand for consumer electronics in Bangladesh, and to this end, is planning on manufacturing lithium-ion batteries for smartphones. In order to prepare an effective market entry and pricing strategy as the first-mover, the company needed to study the existing value chain of lithium batteries, competitive landscape and prospects of on-shore smartphone manufacturing.
LightCastle Partners identified key areas of opportunity for the client through exhaustive primary and secondary market research. Since the client was planning to establish itself as the first producer of lithium-ion batteries in Bangladesh, it was pertinent to analyze data from every segment of the value chain. We collected and triangulated information by interviewing various stakeholders in the smartphone and battery industry – mobile phone manufacturers and retailers, battery retailers and importers, trade association representatives, and end consumers. The team prepared a concise and comprehensive picture of the value chain of lithium-ion batteries in Bangladesh to help the client target strong forward linkages. The data analysis was also used to generate market projections and helped gauge demand for lithium-ion batteries. LightCastle delineated the current status of the market to devise an effective market entry and pricing strategy.
For the next phase, LightCastle aims to collaborate further by providing support in detailed business modeling and in raising capital.