Are local brand products disappearing?

During the 70s, 80s, 90s, and the first decade of the 21st century, several popular products dominated the Bangladeshi market. These products not only met local demand but were also exported abroad. Over time, many of these products have become rare in the market. However, a bit of nostalgia can bring these items vividly to mind. Advertisements for these products on black-and-white televisions, and later on color televisions in the 90s, were a source of joy for the general public.

For those of us who grew up in the 90s, memories of popular items like Mimi chocolate, Nabisco glucose biscuits, Nabisco lozenges, the first ballpoint pen Econo, Balaka razors, Haque’s 786 batteries, Butterfly matches, Lalbagh Chemical's Hasmarka Gandharaj scented hair oil, Rani brand corrugated sheets, Commander Soap Company’s Cosco glycerin soap, Millat prickly heat powder, Tibet Snow, Jet washing powder, and even newer items like Anik mobile batteries, still resonate. These products enjoyed significant success in the domestic market for decades.

These popular brands had a profound impact on households across Bangladesh and even made a mark internationally, bolstering the country's economy. But why are these products scarcely seen in the market today? Statistics reveal that most of these once-popular items are no longer produced. Many companies have shut down, some have been sold, and others are barely surviving. Even if a few of these products are still available, their quality has declined, and demand has dwindled over time.

The decline in demand and production of these products wasn’t due to poor quality. There were no doubts about their standards. However, various factors led to a decrease in demand and production, increasing our dependency on imports. Many companies closed down due to a lack of competent leadership. Rising raw material costs and delays and complexities in importing products from abroad also led to reduced production. Additionally, ineffective marketing policies and supply systems severely impacted the distribution of these products.

The most significant loss, however, resulted from inadequate distribution systems. Ineffective ‘marketing policies’ and ‘distribution systems’ that failed to meet reality caused many profitable companies to collapse, some even shutting down completely. Even though some companies are still limping along, it can’t truly be called ‘functioning.’ Cosco soap is a prime example. Despite being popular for decades, this glycerin-rich soap is now hard to find. It was once the most used soap in hotels, restaurants, businesses, offices, and homes, especially for its durability. For years, Cosco soap was the go-to choice for weddings, birthdays, and various family, social, and religious events.

Do you see this soap much in the market now? Many of you might remember a time when Nabisco glucose biscuits were the staple breakfast for middle and lower-income families in Bangladesh. Guests were also served this traditional biscuit. This biscuit holds a special place in Bengali memory. Unfortunately, this once-dominant brand has been overshadowed by numerous local and international biscuit brands in the market.

A few decades ago, Lalbagh Chemical’s Hasmarka Gandharaj scented hair oil was the most popular among mothers, aunts, and grandmothers. It’s hard to find a woman in Bengal who hasn’t used this coconut oil and sunbathed with it. Where did this Gandharaj oil go? The market is now flooded with coconut oils from various companies. Ask a shopkeeper about Gandharaj oil, and they might raise their eyebrows!

Case Study:
Once, in Bangladesh, people of all ages knew only one name when it came to chocolate: Mimi. Founded in 1965 in Tejgaon, Dhaka, during East Pakistan’s era by private initiative, Mimi Chocolate Company grew significantly after independence. At the time, imported chocolates like KitKat and Mars were expensive and favored by the wealthy. In contrast, Mimi chocolates, available in Orange and Milk flavors, were affordable and popular among both children and adults. The company thrived until 2000. However, the emergence of several new chocolate companies in the 90s led to fierce competition.

Losses started to mount, and old machinery increased production costs. The lack of competent, technologically savvy leadership and a consumer-friendly distribution policy prevented the company, under the Muktijoddha Kalyan Trust, from competing in the market. There were also serious allegations of financial irregularities, corruption, and looting against its officials. Mimi chocolates were more available in urban shops than in villages. Despite high demand in rural areas, weak marketing and distribution strategies led to limited supply. Eventually, the company couldn't recover.

In 2018, the government was forced to shut down Mimi Chocolate Company entirely. The disappearance of such renowned brands harmed the country’s people the most. It increased our dependency on imports for various products. The higher costs of raw materials from abroad led to higher production costs, making everyday necessities more expensive for the general public. A thriving local market could have created employment for numerous unemployed youths and strengthened the economy, benefiting areas where these companies operated.

What Can Be Done:
To provide affordable products from Teknaf to Tetulia, a central distribution system must be established. The success of some major startup companies in the country serves as an excellent example. These companies have central distribution systems in all 64 districts. They transport goods nationwide through their courier services or third-party logistics services. Companies with weak distribution systems and inadequate manpower can collaborate with such large, strong, technology-driven B2B companies to distribute their products nationwide.

Is Central Distribution System Cost-Effective?
Opening an LC or Letter of Credit often wastes significant time and money for most companies. However, with a central distribution system, this would not be the case. Products could be exported abroad after meeting the country’s needs.

Current Context:
In our country, the distribution system for food and everyday products is managed by a system led by traders, where transparency is minimal. Various formal and informal players control this system. Small and large shopkeepers, moneylenders, wholesalers, and wholesalers all pull the strings of this supply chain from their respective positions. In such a system, product prices are always volatile, and supply often gets delayed. Each seller sets their prices and controls product availability to make higher profits. This makes price stability challenging and hinders the tracking of wastage, as sellers collectively manage the supply chain.

How to Solve This:
Urgently, we need to establish a producer-led central distribution system. In this model, centrally managed distribution companies will collect and supply products, closely supporting all producers. This would stabilize prices, providing relief to consumers from price anarchy and ensuring easy product availability. Most importantly, such a transparent central management system would significantly reduce systemic inefficiencies. With such an initiative, the amount of wasted products would significantly decrease.

Transitioning from a trader-led or controlled model to a centrally managed distribution model will require us to consider other aspects alongside product supply. Currently, traders, moneylenders, wholesalers, and wholesale sellers not only control the distribution system but also provide cash to various stakeholders like farmers, producers, processors, and sellers. Implementing a central distribution system would end the days of local wholesalers overcharging, marking the success of the central distribution model. Bangladesh is one of the most fertile countries in the world. Last fiscal year, we produced 9.3 metric tons of food. Yet, sadly, we are the third-largest food-importing country, with imports totaling 12.5 million metric tons.

Conclusion:
A central distribution system will help reduce our dependency on imports for everyday products. As our economy recovers, we must strengthen the supply of locally produced food and necessities. Establishing a well-structured, disciplined, and democratic central distribution system is crucial for achieving this in the future. This will allow local producers, processors, and manufacturers to enter the market equally. It will prevent a small group from controlling everything, as in the past. This initiative will not only protect us from potential crises but also enhance the efficiency of our fertile land and manufacturing output. Through a robust distribution network, we can ensure the optimal use of Bangladesh's fertile land, benefiting both our present and future generations.

Bayezid Ahmed: Journalist and researcher.