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equirement of solvent. These are shown in 5.3 along with their respective demand in the market. From the , it is clear that, gloss coatings are the most demanded products in the market having almost 40% share of the total demand. Distempers are in the second and interior emulsions in the third position of demand of decorative paint products.

The demand in the market is constantly increasing as in 2008 it was 50430000 litters compared to 24850000 litters in 1999 ( 5.4), an evidence of the fact that, demand had increased almost double within 9 years. At the same time, the market enjoyed a positive growth in sales (illustrated in Table 5.1).

An alarming situation can be seen from Table 4.1, which reveals that in recent times, the sales growth has decreased to a substantial amount. In 2006, it was 15% but in the next year, it became only 4.95%. In the last year, it was 5.19%. After consultation with experts, some causes were identified for the low sales growth rate in the last two years. These are described in the subsequent sections.

5.2 Reasons for Recent Sales growth decline

5.2.1 Macroeconomic Influence

Demand for paint is highly correlated with different macroeconomic variables, including Population growth rate, Gross Domestic Population (GDP), Gross National Income (GNP) and Net National Income (NNP), a fact which is supported by facts from Table 5.2.

The relationship is even clearer from the 3.5 from which it can be evident that the GDP, GNI and NNI at 2006 were very high compared to other years. At the same time the paint demand was also very high. Experts say that, as consumers had enough surplus cash to spend on paint and related decorative items. But soon after, GDP, GNI and NNI began to decrease due to global recession and national political situation. It resulted a decrease in the demand of paint industry and the sales growth rate declined compared to the previous years.

5.2.2 Impact of Other Businesses

Paint industry is very much related with the real estate business in Bangladesh (evident from table 5.3. As a result the demand for paint changes with the demand of real estate.

Demand of real estate in Bangladesh had a tremendous boom since the late 90's and early of the 21st century. But since 2005, the sales declined extensively and the real estate market is having a great crisis due to declining demand. Principle causes due to such demand declination according to the businessmen includes- price hike of cement, rod and other building materials, low production at steel re-rolling mills, increased labor cost, etc. The price of cement has increased almost 20% in 2009 than in 2005. Similarly, the price of rod increased 35% and labor cost 28%.[3]The cumulative impact of these factors results in price increase for real estate business and decreased customers' demand. In 2005, the average cost per square feet of an apartment was 2500 taka which is now, in 2009 is 3600 taka, an increase of almost 44%.[4] Also because of inflation, customers' affordability for an apartment or building has decreased ( 5.6). According 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。