Why is Walton winning the game in Bangladesh?3 min read

Walton Hi-Tech Industries Limited, the leading electrical and electronics manufacturer of Bangladesh has posted a stellar performance in FY 2020-21. Despite facing the 2nd lockdown during the period, Walton has grown by 70.3% from Tk 41,079.2 million in FY 2019-20 to Tk 69,949.9 million in FY 2020-21. Profit after tax increased staggeringly by 125.6% despite the pandemic period.

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The company is enjoying such success mainly due to its market domination in the local market. The company is the market leader in the Electrical & Electronics sector with a 71.7% market share. Walton, the flagship brand has 66.0% and Marcel has a 5.7% market share.

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Such market domination of a company is only possible when the management takes shrewd strategic decisions to enhance its core competence. In this article, we will discuss the 4 key strengths of Walton which we believe have provided the company with a significant edge in the industry.

1. Full-Fledged Manufacturing Capacity

Walton is the pioneer in Bangladesh with its full-fledged manufacturing capacity. It was the first local company to have such facilities with strong backward linkage and vertical integration systems.  Walton Hi-Tech industries presently manufacture all parts required for Refrigerators and Compressor production. It was the first of its kind among the local manufacturers as the local manufacturers were reliant on imported parts. The company also manufactures Air Conditioners and Television by maintaining quality. The company also integrated AI features into its products. The company also entered in production of Elevators. The state-of-the-art manufacturing facility also produces home and kitchen appliances from scratch.

Read more: Walton Came Back Strongly With 125.6% PAT Growth in FY 2020-21

2. Capital Intensive Setup

The company has invested heavily in the international standard manufacturing facility. The whole capital-intensive setup has allowed Walton to provide quality products at a competitive price. Its manufacturing ability became a strong point as it would take any competitor to spend heavily to get to the level of Walton. Hence, the threat of new entrants is comparatively low as few international and local companies will be able to invest to create a facility like Walton.

3. Strong R&I Facility

Walton’s research facility allows the company to create great quality products at competitive prices. The Electrical & Electronics sector is an ever-changing industry where it takes a month or two for a new product to be obsolete. Hence it is important for any company to keep on innovating to grow or hold its market share. Walton’s management is now reaping the benefit of investing in the R&I facility.

4. Strong Marketing & Distribution Network

The company has 21,000+ sales points across the country which allows its products to be available everywhere. The company has a vast distribution network by establishing channels like Walton Plaza, E-Plaza, Exclusive Distributors, Dealers, Sub-Dealers, Corporate Sales, ODM (Original Design Manufacturer), OEM (Original Equipment Manufacturer), and International Business unit. The distribution is not only efficient but also cost-effective. Walton has around 5,100 exclusive distributors and around 16,000 sub-dealers. Walton plaza is one of the key buyers which resell products to sub-dealers and end customers via its showrooms. There are 382 showrooms at Walton Plaza. Walton Plaza is the exclusive distributor of Walton products.

All the mentioned advantages allowed Walton Hi-Tech Industries Limited to become the market leader in the Electrical & Electronics industry. The company understood its customers’ needs and through shrewd management, decisions making has provided quality products at affordable prices. The company also plans to provide the same to international customers through its export business.

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