Market Insight: Lubricant Industry of Bangladesh

 

The entire lubricant industry is possible to observe as few distinct markets as well as segments with various lubricant oils. In the context of Bangladesh, this industry can be described as a market which contains few segments like car engine oil, motorcycle oil, truck and heavy-duty engine oil, CNG oil and industrial oil, etc. Another observation can also identify more segments like railway oil, marine oil, and aviation oil; though these are insignificant compared with other lubricant oil segments.

It is believed that most users are concerned with the quality lubricant oil. A market analysis would say yes, it should be! However, this belief varies from one marketplace to another marketplace, even one segment to another segment. Most users of the car engine oil and motorcycle oil are concerned with the vehicle engine, so they don’t want to compromise with a quality lubricant. The owner of the vehicle is closely involved in oil change period. Even, they recommend their drivers and the regular mechanic to use the quality lubricant brands.

But the users of the heavy-duty engine oil and CNG oil are quite indifferent with other segments. As there is a lack of monitoring from the vehicle owner end. Even the transport owners are found they aren’t concerned with lubricant oil for the engine. This market closely regulated by the transport agencies, drivers, engine mechanics, garage mechanics and even the retailers. Price is a key decision-making standard for those users, though brand preferences is also a key.

The market of CNG oil is an exponential one, though the users are mostly using the heavy-duty engine oils for the vehicles. But a few quality lubricant oils are also available for CNG vehicle. The industrial oil market is a sensitive one, where the use of recommended oil is required, which is closely supervised by the engineer. The growth of power sectors and other industries has perked this industrial oil segment up.

Customers are quite knowledgeable about the lubricant brand and quality now. In fact, for consumers, the main source of information arises from peer suggestions. Retailer suggestions also play a part in affecting the purchase. Retail shop owners recommend their preferred brand to the customers most of the time. Due to this, customers often purchase brands as referred by the retailers.

The customers of this market don’t want to risk anything happening to their vehicles for not using high-quality lubricant. The sole distributors always run promotions for the regulars, though it plays an insignificant part in the purchase decision. Availability of brand doesn’t affect people’s purchase decision. Rather, it’s dictated by the brand’s popularity.

Using these market insights, very newly brands are taking their entrance in this growing lubricant industry. But the renowned brands like Mobil, BP, Total, Shell, Castrol are enjoying their existing market share with strong brand preferences. Moreover, the customers of this market have a better acceptance of those lubricant brands though many quality products are also available in this market.

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