University of Dhaka: Smartphone Retail Industry After COVID-19 Report

This report, prepared by Team Diversifiers from the Department of Marketing at the University of Dhaka, examines the impact of the COVID-19 pandemic on the smartphone retail industry in Bangladesh. The report explores how retailers adapted to the crisis, including strategies like online sales and home delivery. It delves into the future prospects of omnichannel marketing, analyzing its importance in reaching customers. A PESTLE analysis is conducted to assess the political, economic, social, technological, legal, and environmental factors affecting the industry. The report also forecasts the performance of the smartphone retail market over the next five years, considering market growth and evolving consumer behavior. Overall, the report provides a comprehensive overview of the challenges and opportunities facing the smartphone retail sector in Bangladesh due to the pandemic.

Smartphone Retail
Industry After COVID-19
A Report on the Effects of Covid-19 on Smartphone Retail Industry of Bangladesh
Team Diversifiers 7/5/20 Retail Management

Smartphone Retail Industry After COVID-19
Department of Marketing. University of Dhaka. Page i
Assignment on
Smartphone Retail Industry After COVID-19
Course Name: Retail Management
Course no: MKT-414
Submission Date:5-7-2020

Smartphone Retail Industry After COVID-19
Department of Marketing. University of Dhaka. Page ii
Smartphone Retail Industry After COVID-19
Submitted to:
Muhammad Intisar Alam, Assistant Professor.
Department of Marketing,
Faculty of Business Studies
University of Dhaka.
Submitted by:
Team Diversifiers.
Section: A
Department of Marketing
Name ID Email
Khondoker Sadman Sakib JH-26-093 [e-mail]
Tisha Chakraborty SK-26-013 [e-mail]
MD. Amjad Hossain Sumon JH-26-111 [e-mail]
Md. Sujon Mia JH-26-137 [e-mail]
Anif Nawaz SM-26-085 [e-mail]
Eva Das RH-26-047 [e-mail]
Umme Sadia SK-26-193 [e-mail]
Sudipta Barua RH-26-091 [e-mail]
Nazmin Akter KM-26-037 [e-mail]
MD. Raihan Uddin ZR-26-248 [e-mail]
Rafiur Rahman Sami ZR-26-05 [e-mail]
Rukhsana Hussain Rohini RH-26-015 [e-mail]

Smartphone Retail Industry After COVID-19
Department of Marketing. University of Dhaka. Page iii
July 5, 2020
Muhammad Intisar Alam, Department of Marketing.
University of Dhaka.
Dhaka.
Dear Mr. Muhammad Intisar Alam,
As agreed, on 17th June, we are submitting the attached report entitled “Smartphone Retail Industry
After COVID-19” This report examines the possible future of the retail smartphone industry.
I hope you find this report satisfactory.
Sincerely yours,
Khondoker Sadman Sakib,
Representative of Team Diversifiers
MKT-414, Sec-A
Department of marketing.
University of Dhaka.

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Department of Marketing. University of Dhaka. Page iv
ACKNOWLEDGEMENTS
We cannot express enough gratitude to the almighty for giving me
enough strength to finish this report.
Our completion of this report could not have been accomplished
without the support of our team members: Umme, Anif, Amjad,
Rimon, Sujon, Eva, Sudipta, Nazmin, Tisha, and Rafiur. Thank you for
your heartiest efforts.
And finally, we offer respect to the teacher who gave us this task and
guidance, Muhammad Intisar Alam Sir.

Contents
Introduction ........................................................................................................................................... 1
1.How smartphone retailers are continuing their business in Bangladesh during the Covid-19
period? ................................................................................................................................................... 2
2. What are the future prospects of Omni-channel marketing for smartphone retailers in
Bangladesh due to Covid-19? ............................................................................................................... 3
3. Do a PESTLE analysis about the impact of Covid-19 in smartphone retail industry of
Bangladesh? .......................................................................................................................................... 5
4. After five years from now, how the smartphone retail market of Bangladesh will perform? ....... 8
Conclusion ........................................................................................................................................... 10
References ........................................................................................................................................... 11
Figure 1: Fall of the Smartphone Industry in Bangladesh ..................................................................... 2
Figure 2: Omni-Channel Marketing Process ......................................................................................... 3
Figure 3: US Smartphone Market .......................................................................................................... 4
Figure 4: PESTLE Analysis ................................................................................................................... 6
Figure 5: Market Growth ....................................................................................................................... 9

Smartphone Retail Industry After COVID-19
Department of Marketing. University of Dhaka. Page 1
Introduction
The retail smartphone industry has been one of the busiest industries across the globe (Levy et al.,
2019). It has produced millions of dollars’ worth of transactions every month of the last few years.
This high growth industry however has tremendously been influenced by the hands of COVID-19.
This life-threatening illness has caused major problems for the world economy and Bangladesh has
not been different. The smartphone retail industry has also suffered a serious blow for this pandemic.
From a business and economic point of view, the smartphone retail business is one of the most
profitable industries in Bangladesh. Focusing on its performance after and during the COVID-19
outbreak is essential. For that reason, this report aims to analyze the impact of COVID-19 on the
smartphone retail industry of Bangladesh in the near future.

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1.How smartphone retailers are continuing their business
in Bangladesh during the Covid-19 period?
Coronavirus has been tremendously affecting business activities of all industries for the past 7 months.
Ever since the virus got spread in China, many businesses and industries have fallen at stake since
China is the major supplier of their products. Smartphone retailers are no exception to that. Smartphone
retailers in Bangladesh are mainly dependent on Chinese suppliers as the majority of the smartphones
in Bangladesh come from China. For example, most of the smartphones of Samsung, MI, and Huawei
brands come directly from China. The smartphone industry has taken the major hit from COVID – 19
(Donthu, & Gustafsson, 2020). The supply of smartphones has been severely eroded because of this
pandemic situation. Moreover, people are now less likely to come out of the home to buy phones from
the shops. So, smartphone retailers are now facing serious trouble in operating and continuing their
business. In a country like Bangladesh, it is hard to adapt to commercial changes fast and smartphone
retailers are facing great problems due to that. But they are slowly adjusting to the new reality and
smartphone retailers are implementing new ways to continue their business as much as possible in this
pandemic situation.
As people are avoiding going to shops except for very much necessary product, the sales of
smartphones have been decreased. To encourage people to buy
smartphones, retailers are offering a special discount on the
phone. This way, customers are getting attracted to purchasing
phones. Since customers cannot visit the physical store to
purchase phones due to lockdown, many of the smartphone
retailers in different districts are starting online service through
website development for ordering phones and home delivery for
customer’s convenience. Since the sale in the entire smartphone
industry has decreased by 20% during the past four months
worldwide, the retailers are feeling the utmost pressure to increase
the number of sales (Donthu, & Gustafsson, 2020). And therefore, they are targeting social media
platforms to do online promotion heavily including a paid promotion to gain customer’s attention.
Figure 1: Fall of the Smartphone
Industry in Bangladesh

Smartphone Retail Industry After COVID-19
Department of Marketing. University of Dhaka. Page 3
The pandemic situation has created a very uncertain condition in the smartphone market of
Bangladesh. Though the supply of smartphones has been decreased, sales have also been decreased.
But the smartphone retailers are still trying their best with offerings like discount and home delivery
service to sell the existing phones to the customers until the situation improves and everything
comebacks to normal.
2. What are the future prospects of Omni-channel
marketing for smartphone retailers in Bangladesh due to
Covid-19?
The 21st century's marketing landscape has encountered the massive waves of transformations of the
customers' buying behavior due to the COVID19 which shows that the marketing changes more rapidly
than the speed of light.
In the era of technology, a business organization can easily get forfeited in the packed and crowded
business realms due to backdated marketing approaches (Syed & Kabir, 2018). However, this
sophisticated digital era has also opened up new opportunities and passages to reach the ultimate
customers' attention. Omnichannel marketing is one of them which has transformed the digital
marketing channels.
It helps the organization to create an integrated and seamless channel that delivers a smoother and
more customized buying experience from the very beginning to the end across online devices and
offline stores.
To deliver a unified
and undisrupted
message to showcase
the brand image to
the customers,
different marketing
wings work together
in the marketing Figure 2: Omni-Channel Marketing Process

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Department of Marketing. University of Dhaka. Page 4
Omnichannel. A study in different countries over millions of people shows that people are around 19
percent more engaged with the brand in Omnichannel marketing campaigns than the single-channel
marketing campaigns (Chowdhury et al., 2018). Here engagement with the brand does not refer to the
final purchase of products and services rather its emphasis on the awareness of the brand, loyalty
toward the brand, etc.
As customers are eager to explore seamless experiences through different platforms or mediums, they
are using, the companies are trying to provide more detailed information about the brand without any
misleading and conflicting information. Which can only be attained through a seamless shifting
experience from different devices to offline and online channels?
Covid-19 pandemic has presented a set of challenges to the marketers in its reign in 2020. The Global
spread of this highly contagious virus has changed the way marketers can approach the customers.
And it also made it clear that the effect will stay for years to come even after the virus has been if ever
neutralized.
The nature of the pandemic
has restricted consumers from
going to physical stores.
Marketing efforts that are
targeted at crowds are less
affective now (DATA BD,
2020). People need to stay at
home to stay safe. They are
spending more time online and
in virtual life. The sales of
luxuries went down as the
sales of essentials went up.
Customers are earning less and are willing to spend less.
As for the opportunity presented by the pandemic, there is a list too. Online traffic skyrocketed for
essential products. Television advertising has become relevant again. The new behavior is opening up
new grounds for marketers to roam. Home entertainment services like Netflix, Hulu, and the gaming
industry is experiencing a nice bump in sales. People do not want to miss out on COVID-19 updates
so media and newspaper sales are going up too.
Figure 3: US Smartphone Market

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Department of Marketing. University of Dhaka. Page 5
All these changes made it all the more important for companies and businesses to hold on to their
existing customers. Omnichannel marketing can provide marketers with the opportunity to do just that
(Wang et al., 2013). When the customers can have the same seamless customized experience on the
different devices they use, they are more likely to be satisfied with the business and less likely to leave.
They can order the same commodities from their home which they used to purchase from stores. The
pandemic can stop the customers from going to stores, but that does not mean they cannot buy if the
business is Omnichannel.
It goes the same for the Smartphone retail sector as they are making an effort to minimize buying
hassle of the customers. So, Smartphone retailers are continuously updating the information across the
marketing channels. Additionally, they are improving the in-house data regarding the customers'
preferences to give personalized information that they want. As the product nature of smartphones, it
has long been more important for consumers to know about the specifications of the product and take
a long look at the reviews before they buy it. It allows the sales to not be restricted to offline shop sales
and be available online.
So, the pandemic is presenting more opportunities to the smartphone sellers who utilize Omnichannel
marketing compared to those who don’t.
3. Do a PESTLE analysis about the impact of Covid-19 in
smartphone retail industry of Bangladesh?
PESTLE analysis is a marketing tool used by marketers to determine the impact of the macro-
environment on the organization. PESTLE stands for all the external factors of an organization. Due
to COVID-19, the smartphone industry has faced many obstacles in many forms which can be
discussed by the PESTLE analysis. PESTLE stands for Political, Economic, Social, Technological,
Legal, and Environment. COVID-19 has greatly affected all these factors of the smartphone industry
(Data Reportal, 2020). The impact of COVID-19 on these factors are discussed below-

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Figure 4: PESTLE Analysis
Political Factors
Following the outbreak of Coronavirus, the Bangladesh government has imposed lockdown from 26th
March of 2020. Every year local companies fulfill only 8% of the total demand of smartphone and
assembled companies fulfills 40% of total demand (Daily Star, 2020). And the rest of the demand is
fulfilled by importing smartphones from different countries. During this pandemic, the manufacturing
companies were completely shut down for many days. And importing was quite tough due to the higher
restriction of govt. and it is also very costly nowadays as govt. has proposed to increase the tax.
According to Asifur Rahman, head of WALTON mobile their sales and production were completely
shut down and their sales percentage has dropped around 60% to 70%. The two largest shopping malls,
Jamuna and Bashundhara are still closed until now. In these two malls, there are almost 100 mobile
showrooms of well-known brands that are out of business now.
Economic Factors
The smartphone industry is also being hit hard like every other sector by the COVID-19 global crisis.
The report states that sales of mobile devices have never decreased so quickly. The sales percentage
of the smartphone for the first quarter of 2020 was 13% lower than the same period last year. Analysts
are noticing a major decline in smartphone production and sales. It is the first time since 2014 that less
than 300 million units have been shipped. It’s a huge blow for the smartphone market as it has been
flattening its sales curve for quite some time.
Social Factors
Political Economic Social
Technological Legal Environmental

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The social aspect focuses on the forces within society. Family, friends, colleagues, neighbors, and the
media are social factors. These factors can affect our attitudes, opinions, and interests. In the revive
of the Covid-19 pandemic, smartphone use has shifted significantly, with users all over the world
spending much of their time at home (Daily Star, 2020). Video calling has increased as users try to
keep in touch with friends, family, and colleagues; and mobile gaming and video watching have risen
as people search for ways to stay busy. The coronavirus quarantine has spurred some demand for
smartphones as replacement items by people forced into remote work.
Technological Factors
The smartphone industry is the result of technological advancement in our daily life. It’s an ongoing
process and the COVID-19 hasn’t stopped it from doing so. Due to the pandemic situation, people are
lock in their homes and are forced to spend time there. Smartphones ate playing an important role in
their time spending. As the lockdown continues the smartphone industry puts its importance in
software than the hardware. Newer applications are developing for various purposes. The smartphone
is even playing an important role in the medical and health sector. The use of these applications has
increased and it demands more technological advancement. Therefore, the technological side of the
smartphone is ongoing in this pandemic situation
Legal Factors
Legal factors are external factors that refer to how the law affects the way businesses operate and
customers behave. Product transportation, profit margins, and viability of certain markets are all
examples of things that may be influenced by legal factors. Due to the Covid-19 Pandemic situation,
the legal factors of the smartphone industry are greatly affected. To prevent the COVID-19 pandemic
transmission government has introduced new laws on transportation. Due to the global lockdown,"
Government ordered to stop international flight, also ordered to control all kinds of transportation
within an internal route. As most of the companies or smartphone retail industry in Bangladesh are
highly dependent on importing raw materials and other mechanisms, many smartphone manufacturers
have facilities in China and rely on the country to supply parts, as a result of the coronavirus pandemic,
they faced delays. the fact is that transportation ban directly impacts on smartphone industry and
created a Crisis on customer demand. Rezwanul Hoque, Director of Bangladesh Mobile Phone
Importers Association and CEO of Transsion Bangladesh, says "In April, 40%-50% of our sales have
decreased due to the sudden lockdown (Kader, 2020). During Eid every year, our sales increase by

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30% every time, but this year this is not possible (Daily Star, 2020). We can only hope to bounce back
by next year.
4. After five years from now, how the smartphone retail
market of Bangladesh will perform?
The smartphone industry in Bangladesh is expanding fast and there is an increase in inexpensive and
budget-friendly phones. There is a huge opportunity for new companies to launch products in this
category as the demand for smartphones is increasing drastically. Due to the aggressive expansion of
retail outlets, EMI facilities, and online platforms it is easier to purchase a smartphone. The business
environment is becoming more favorable for the new entrants in the Bangladesh market (BBS, 2020).
The Government of Bangladesh and the policymakers are working to make a collaborative relationship
with global brands with events like “Digital Bangladesh Fair”. Global brands are now setting up
assembling industries in Bangladesh. It will reduce the production and transportation cost resulting in
a boost of handset supply in Bangladeshi Market. It will also reduce the price of the smartphone. In
Bangladesh, the E-commerce industry has been expanding rapidly which is also increasing the demand
for smartphones. During this pandemic, situation consumers are more dependent on online shopping
which leads to the increase of smartphone use in Bangladesh. The Pandemic situation in Bangladesh
also creating an opportunity for smartphones as a learning tool. Students of all over the country are
now encouraged in distant learning and online classes and also the online sessions which increasing
the demand for smartphones. The telecommunication sector of Bangladesh is becoming the key
contributor to the smartphone industry. All three telecommunication companies are making content
streaming service to the consumer. Telecommunication industries have content services of their own.
Bioscope from Grameenphone, Banglaflix from Banglalink, and Robi TV. These services can be
accessed through the smartphone. Moreover, the service providing applications made owning
smartphones a necessity. Ridesharing applications like Uber, Pathao, Shohoz are the key players. To
earn through the ride-sharing network, many riders are also started buying smartphones. Based on this
service many food delivery applications like Foodpanda, Hungry Naki are introduced and these
applications become aggressively popular in Bangladesh.
For all these reasons, the number of willing buyers of smartphones may increase in the future. On the
other side, Bangladesh is enduring lockdowns to handle the COVID-19 pandemic in 2020. Which

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requires the shutdown of businesses, institutions, or limited economic productivity in all sectors. Not
only in Bangladesh but also other developed country's economies almost have come to a deadlock
situation. For these circumstances, the job market may fall,
unemployment will rise, disposable income of people will decrease.
So, newcomers in online retail businesses will rise in the future as
it requires less investment, provides great client services and
opportunities to manage the business from anywhere with great
flexibility. Another fact to be noticed that, according to US experts,
the COVID-19 pandemic will last for at least two years until 2022.
So, social distancing must be practiced for several years. As social
distancing rules discourage social interaction, opportunities for
online retail businesses will be increased. For increasing online business, selling and buying online,
interaction, entertainment, transactions, and for many other factors demand smartphones is increasing
day by day. These factors leading to opportunities for newcomers in the smartphone retail business.
The political situation of Bangladesh is another factor that affects the growth of the smartphone retail
business. If the diplomatic relationship between Bangladesh and other countries improves, that will
bring new facilities for Bangladeshi exporters, importers, and businesses. For example, 19th June 2020
Bangladesh foreign minister said in a press statement that, “As many as 97% Bangladesh products will
enjoy duty-free access in the Chinese market and will effective from July 1, 2020.” According to
Bangladesh officials (BBS, 2020).
Trends and technologies are also key factors that will help smartphone retailers to thrive in the next
five years. Such as personalized retail experience, digital mobile wallet, Omni channel retail strategies,
high tech tools to balance inventory assortments, manage ordinary and track pricing. Overall, trends
and technologies will help to increase the demand for smartphones and to thrive smartphone retail
business as well in the future.
Considering the economy, current situation, political environment, trends, and technologies, it can be
said that the smartphone retail business in Bangladesh will perform very well after five years from
now.
Figure 5: Market Growth

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Department of Marketing. University of Dhaka. Page 10
Conclusion
In a pandemic like the COVID-19, economies have been falling apart across the globe. Businesses are
facing shut down. Even the large and industry giants are facing the risk of being extinguished. This
has raised the questions of whether current industries are surviving in this hostile situation. The
smartphone industry is one of them. In this report, an analysis of the performance of the smartphone
retail industry in and after the COVID-19 outbreak has been conducted. The report found enough
evidence that the current scenario for the industry is really. As very few physical shops are open for
business, and online-based selling hasn’t yet been a strong point for smartphone business, the industry
is falling at an incredible rate. However, the industry has some opportunities in the future after this
pandemic. As smartphones have become one of the essential elements for people all over the country,
the industry has the potential to recover and thrive after the next five years.

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References
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http://203.112.218.65:8008/.
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