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Bangladesh - Market Overview

Bangladesh is a country the size of Iowa, situated in the northeastern corner of the Indian subcontinent
and bordered by India and Burma, with a population of 163 million. Bangladesh is the eighth most
populous country in the world, and the most densely populated other than city states.

Bangladesh has one of the lowest wage rates in the world, which has fueled an expanding industrial
base led by the RMG industry; however, it is well-positioned to diversify its exports and move up the
value chain. The country also has large pharmaceutical, agricultural-processing, and ship building
industries. Other important sectors include construction, ICT and business process outsourcing, light
engineering, leather products, jute products, and ceramic products.

Dhaka, home to the Dhaka Stock Exchange, is the primary economic, political and cultural center of
Bangladesh. Located on the coast, Chittagong, the second largest economic and financial hub of
Bangladesh, hosts the country’s major seaport which handles 98 percent of container cargo and 92
percent of total cargo volume. Nearly twenty-six million Bangladeshis concentrated mainly in Dhaka and
Chittagong have annual incomes exceeding $12,000, offering a sizable market for goods and services.

The Home shifting industry is still very new to this country. Some local and international home movers
company have been running their business for last eight years but it is not significant. Most of the local
families who move their home, they choose local labors to shift their furniture and other stuffs. Because
these labor cost is very cheap. But according to the market research data it is found that most of the
family feel worry about their safety of the furniture and other valuable stuff because these labors don’t
have the necessary training of the house shifting. As the lacking of the knowledge about their work,
these labors are not aware of the furniture and other stuffs. Moreover, they are not trustworthy. For all
of these reasons, a huge market is ready for this home shifting business. This business is still young and
will be growing. But starting a business is always challenging. Here we find some challenges of this
business.

Each year, around 8% of the BD adult population moves home, according to the Office of National
Statistics. It’s a time when existing relationships with suppliers, such as utilities, telecoms, media,
insurance and financial services providers, are reviewed.

Industry estimates suggest two-thirds (65%) of these home movers will switch service providers or
preferred retailers during their change of premises.

When paired with our own research findings, which reveal that BD businesses lose a fifth (20.7%) of
their customers each year, it is clear that customer retention is a major challenge for marketers.

Addressing the challenge

When it comes to retaining customers during the weak point of the moving period, marketers have been
held back by an over-reliance on historic, static customer data and a lack of awareness of how to tap
into consumer life events. It is valid Not any more . Now dynamic data can tell
marketers when and why their customers are most in need of their products and services. Organisations
that are conducting life event marketing are seeing significant increases in their campaign response and
conversion rates. So how can marketers get smarter about tracking and engaging with customers on the
move?

In this topic we will explain how smart marketers can marry bespoke customer data with modern
marketing tactics to improve customer loyalty, and reduce churn. We will also look at organisations
already using this approach to good effect.

The opportunity of the home-move period

Our research finds that recruiting new customers is the biggest challenge for 45% of marketers, while
the remaining 55% struggle with reactivation, upselling, retention and cross-selling to existing
customers.

The home-move period provides a good opportunity for brands to engage with existing customers as
much as it presents opportunities to target new prospects.

As well as reviewing existing relationships, the home-move period is also a time when people go looking
for new products and services to equip their new home. In Bangladesh, during the month of December,
most of the home moving events have been occurred. Because most of the customers who looking for
new address are not interested to change their home during middle of the year due to different types of
hazards such as school of their children, raining monsoon, lacking of holidays etc. At the same time,
corporate offices are likely to shift their location to another place in the month of December and
January. But throughout the whole year home moving activities are running in a low scale. Home
movers are actively in-market for products and services, and potentially receptive to relevant offers. But
organisations need the right processes in place to begin marketing successfully to home movers.

2018

2017 Beginning of the year


Middle of the year
2016
December month
2015

0% 20% 40% 60% 80% 100% 120%

Figure: Home moving events occurrence during whole year from 2015-2018 in Dhaka City.
Set up internal processes

Before marketers can delve into customer data and act on it, they need the agile systems, processes and
technologies to enable them to dynamically identify and act on their customers’ life events.It is
imperative that organisations have the capability and resources and tools to ensure they can handle
‘closed-loop’ life event marketing.Marketers must also be ready to assess the effectiveness of their life
event campaigns and rapidly adapt strategies when necessary.

Look for life event triggers

With internal processes in place, marketers should seek to understand where their products and
services fit into their customers’ life events.For example, we have already seen two-thirds of movers
switch suppliers during a home move; this presents both a challenge and an opportunity for brands.

If a marketer can know when their customer is on the move, they can pre-emptively target them with an
offer to retain them as they move to their new home. Alternatively, if marketers can identify potential
or previous customers who are actively looking for a product or service, they can tailor an approach to
them.

During the home move process, consumers will give off a number of indicators that they’re intending to
move. This could include registering with estate agents and online home search portals, researching
mortgage or loan providers, or taking out a Redirection.

To gain visibility of these triggers, marketers need direct access to up-to-date, accurate and
permissioned customer data from trusted third-party providers.

Once marketers understand where a home-mover is in their relocation process they can target them
with the right offer at the right time.

The industry is exposed to the following threats and opportunities:

 The 30-year conventional mortgage is the most common type of loan for home purchases.
When mortgage rates are low, consumers can obtain loans to purchase homes at more
affordable rates. As consumers purchase homes, demand for moving services will grow,
bolstering industry revenue. The 30-year conventional mortgage rate is expected to increase in
2019, and could pose a potential threat to the industry.

 Existing home sales measure the sales of residential property. When existing home sales
increase, homeowners require this industry's services to move into new homes. As a result,
industry revenue increases when existing home sales grow. In 2019, existing home sales are
expected to increase, representing a potential opportunity for this industry.

Home-mover data marketing in action

This data-led approach to home mover marketing is proven to work.A leading BD retailer of upholstered
furniture found that 21% of its sales were derived from home movers. The group now puts people who
are moving home as a core part of its marketing strategy.In addition, one of the leading loyalty card
providers in UK targeted home movers with a mailing which showed the location of their nearest stores
along with a series of special home mover discount vouchers. This campaign achieved a 15% redemption
rate and delivered a 300% return on investment.

Maintain data quality

Data quality is the bedrock of successful marketing. Without clean and up-to-date information,
marketers cannot accurately target existing or potential customers.Therefore, organisations must have
the processes to ensure customer data is cleaned and updated on a continuous, automated basis.
Gathering and cleansing customer data is not a one-off job. It is only when data is properly maintained
that its true potential for marketing can be realised.

Conclusion

The Moving Services industry has continued to grow over the five years to 2019 as the housing market
registered strong and steady growth during the same time period. Furthermore, a steady economic
expansion has led to consistent demand from the industry's downstream commercial customers.
Coupled with rising disposable income, more favorable housing market conditions and a recent drop in
oil prices have benefited the Moving Services industry. Consequently, over the five years to 2019,
industry revenue is expected to grow at an annualized rate of 0.6% to BDT 18.0 million, including a 1.4%
increase in 2019. The industry's growth over the past five years is due in part to a steady growth in
housing starts and sales of existing homes. In the same timeframe, the number of businesses has grown
by 1.7% and the number of employees has grown by 1.6%.

This industry is still young for Bangladesh and has a lot of opportunities to grow in a significant scale. But
to sustain in this business and to become successful, as a marketers we have to use the prospective
customers’ data very effectively. And To determine the value of the home mover market to your
business, the first step is to analyse your existing customer data against home mover data.

Using just three pieces of critical information – customer address, transaction value, and purchase date
we can approach to our prospective customers.

The resulting market research data helps to size and value the home mover market opportunity for our
business. It also helps to provide guidance on where best to start. Whether that’s finding new
customers, retaining existing ones, re-activating lapsed customers, improving data quality or improving
final account settlement rates. Most importantly, the findings from this report will tell us when to
communicate for maximum impact.
References:

1. https://www.ibisworld.com/industry-trends/market-research-reports/transportation-
warehousing/truck/moving-services.html
2. https://www.agsmovers.com/corporate-relocation-services/
3. https://www.export.gov/article?series=a0pt0000000PAtGAAW&type=Country_Commercial__ka
v
4. http://worldpopulationreview.com/world-cities/dhaka-population/
5. https://www.smartinsights.com/digital-marketing-strategy/customer-segmentation-
targeting/using-data-insights-target-home-mover-market/
6. http://handymama.co/services/pack-shift-moving-services-dhaka/
7. https://www.packnshift.com/company-profile