Monno starting retail business in Bangladesh with the name ‘Monno Home’

The Monno Group, which dominates the ceramic products business in Bangladesh, says it is seeking to franchise and begin retailing at ‘fair prices for customers’.

“After changing hands, the prices for our products go up. But if we could maintain our own network, then people would know our products are not as expensive as they are now,” Rasheed Mymunul Islam, deputy managing director of Monno Group of Industries, told bdnews24.com.

He said their ceramic products are now at different prices in different markets as there is no fixed MRP.

He spoke to bdnews24.com on the sidelines of the first-ever Bangladesh franchise expo in Dhaka on Saturday.

‘Monno Home’, which is the name of the Monno Group’s new retail venture, supported the franchise expo organised by the Singapore-based franchise consultancy firm FranGlobal.

Mymunul Islam who is also a director of Bangladesh Ceramics Manufacturers and Exporters Association said Bangladesh is a Tk 3 billion market for ceramic products and continues to grow. Monno dominates the market with 40 percent market share.

“We have eight ceramics companies in the country, but we cannot meet the local demand. The demand is growing every day,” he said, adding that they are planning to increase their production capacity almost double by next year.

“Now we produce 1.5 million pieces both porcelain and bone china products a year. I hope by March next year it will be 2.5 million pieces”.

But he said pricing is a big challenge that drives them to enter retail market.

“We sell our products wholesale to dealers. Then dealers sell those to retailers after keeping a margin. And again retailers sell those to the customers keeping their own profit.

“But the problem is we found this price varies from one place to another. The same product costs different prices in Gulshan, Mirpur or Dhanmondi markets. There are also difference between Dhaka and outside markets. The retailers keep the price based on the customers’ capacity since there is no fixed MRP,” he said, “We want to ensure fair price in this system”.

“After franchising, we’ll fix MRP and they [franchisees] will get commission. Pricing will be uniform and people will know its not so expensive as it is now”.

And in this regard, he said, they are also ready for joint venture and profit sharing.