LG Electronics (Thailand) Co, the local marketer and distributor of LG electrical appliances, is optimistic Thailand's air conditioner industry will resume growth this year after two years of contraction attributed to the prolonged pandemic.
Amnaj Singhachan, the company's senior marketing manager, said overall demand for residential air conditioners contracted by 9.9% and 1.7% to 20.9 billion baht and 20.5 billion in 2020 and 2021, respectively.
"We've started seeing spending on LG electrical appliances gradually improve since last year," said Mr Amnaj.
"We believe the residential air conditioner market can resume growth of 10% this year."
He said a major factor driving growth this year is anticipation of a hotter and longer summer than in previous years.
The temperature in March is expected to reach 35-37 degrees Celsius this year, particularly in the central region, Bangkok and the Northeast, said Mr Amnaj.
The replacement market is likely to resume this year after consumers delayed installing new air conditioners to replace old ones the last two years because of concerns about the pandemic, he said.
Demand in the residential air conditioner market is expected to rebound near levels recorded during 2017-2019, when it grew by an average of 14% per year, said Mr Amnaj.
Another supporting factor for a recovery is the government's spending stimulus packages, while work-from-home policies should also spur residential sales, he said.
"Consumer spending on air conditioners is rising, especially in the mid to high-price segment," Mr Amnaj said.
The company is increasing its marketing budget this year by more than 30% from last year to over 250 million baht to promote LG products.
Sunghan Jung, president of LG, said the pandemic made people prioritise their health, hygiene and well-being.
In response, the company is committed to creating new home appliance innovations that meet consumer needs.
In terms of air conditioners, he said the company is unveiling the "LG Total Air Solution" for 2022, which incorporates innovations for both residential and commercial air conditioners, catering to demand from residences, cafes, hotels and retail stores.
The company rolled out its new lineup of LG Dual Cool air conditioners featuring the dual inverter compressor yesterday.
The series boasts lower energy consumption, faster cooling performance and claims to use innovative UVnano technology that sterilises 99.9% of germs and bacteria within the air conditioner's fan.
LG Thailand hired Sukollawat "Weir" Kanarot to be its brand ambassador to strengthen awareness of the LG air conditioner brand.
In addition, the company plans to increase the number of shops selling LG products countrywide to 1,200 this year, up from 900 last year.
LG Thailand expects sales of residential air conditioners to grow by 35% to 3.2 billion baht this year.
The company is aiming for a top three market share in residential air conditioners this year, up from fourth last year, said Mr Amnaj.