Hitachi Sales Thailand Ltd is upbeat about sales prospects this year after a flat performance in 2018, boosted by improving consumer sentiment ahead of the long-awaited general election.
Managing director Masanori Iwanaga said the company expects 15% sales growth this year, led by home appliances.
"The national election and stabilised political situation are vital to consumer confidence," Mr Iwanaga said, adding that the company will focus on premium appliances because of their higher growth potential.
Boonchai Putakotirat, the company's general manager of marketing and sales, said Hitachi plans to launch various products with new designs and functions to respond to urban lifestyles.
The advertising and promotional budget will rise by more than 20% to 1 billion baht to promote new products this year. The company has hired a popular actress, Ranee "Bella" Campen, as a presenter to build brand awareness.
"This is the first time in the past 15 years that we will launch TV commercials to promote our products to consumers," Mr Boonchai said.
Plans call for launching the Hitachi Lab on Bang Na-Trat Road to develop human resources with a better understanding of the products.
"The home appliance market is facing more challenges due to changing consumer behaviour," Mr Iwanaga said. "As we face competition from all fronts, we must be committed to inventing premium electric appliances to fully address consumer demand."
The company expects sales to grow by 15% to 6.2 billion baht in 2019. Of the total, 45% will come from refrigerators, 25% from washing machines, 10% from air conditioners and 20% from small appliances.
Thailand's refrigerator market is estimated at 14 billion baht. Hitachi is the market leader in fridges, commanding a 20% share.
Hitachi ranks third in the 14-billion-baht washing machine market, with a 10% share, and ranks sixth in the 25-billion-baht air-conditioner market, with a 6% share.
Hitachi had sales of 5 billion baht in 2018, on a par with its 2017 showing. The lack of growth was blamed on the economic slowdown and tepid demand for air conditioners after the country's temperatures were not as high as expected.