Hitachi Sales (Thailand) will spend 1.2 billion baht to promote its home appliances and stimulate consumer spending amid a stiff economy in which low consumption is anticipated.
Air conditioners will be a growth driver for Hitachi as economic uncertainty dampens overall appliance sales, says Mr Boonchai.
Boonchai Putakotirat, deputy general manager for sales and marketing, said the overall home appliance market saw a decline of 5-10%, the first contraction in five years. The company's sales, however, grew by 5%.
There were several factors influencing lower consumption such as higher household debt caused by the government’s first-time car buyer scheme, slow disbursement of the state budget and a decline in private investment.
The car scheme, which gave a 100,000-baht tax rebate to first-time buyers, drove car sales to the tune of 1.2 million vehicles in 2012. Many buyers are still on instalment payments for the debt, forcing them to cut spending on other items, according to research by the Thai Chamber of Commerce.
Demand for air conditioners and refrigerators in Thailand last year was satisfactory with 10% and 5% growth, but sales of washing machines disappointed, pulling down overall sales of home appliances.
Given the tougher market ahead, Hitachi will use a greater marketing and promotional budget of 1.2 billion baht, up from the typical one billion.
Intensive marketing plans will help the company achieve its sales target of 7 billion baht this year or 10% growth compared with estimated industry growth of 5%.
But negative factors such as the dim economy and political conflicts matter to company performance.
"Although consumer purchasing power is not so good at this moment, our products are targeted at middle-income and higher groups," Mr Boonchai said.
Apart from spending more on promotions, Hitachi also plans to boost sales by introducing product lines featuring premium items imported from Japan.
The company will launch 13 air-conditioner models in the Thai market. Each will have a cleaning system that reduces dust and bacteria.
Air conditioners will be a growth engine for the firm this year, leading it to set aside 100 million baht to boost sales in that category alone.
Hitachi expects sales of its air conditioners to rise by 50% in terms of market value.