Thailand's electrical appliance market is expected to return to the pre-pandemic level of 255 billion baht in sales next year thanks largely to the country's full reopening to foreign tourists and the resumption of investment and spending by electronics businesses.
According to Jakkrit Keeratichokchaikun, chief executive at The Mall Group Co, a leading retail chain, the market for electrical appliances saw signs of recovery in the first five months of this year, especially in April and May.
He attributed the recovery to the country's reopening of its borders to travellers, the removal of the compulsory RT-PCR testing requirement on May 1, and increasing vaccination rates.
Electronics businesses have also adapted their marketing strategies to align with consumer purchasing power, said Mr Jakkrit.
Government measures have also helped to increase consumer spending, with IT and smartphones being popular items as consumers seek convenience in their lives, he said.
"Consumer spending power has picked up clearly in recent months and is expected to see a fast improvement in the second half this year," Mr Jakkrit said.
He said the key factor to improve sales of electronics and home appliances is the 2022 FIFA World Cup, which is scheduled to take place in Qatar from Nov 21 to Dec 18 this year.
"Every time the World Cup is held, demand for TVs rises 20%," said Mr Jakkrit.
"The simultaneous launch of new electrical appliances to the market is also expected to increase the pace of the recovery for TV sales this year. Sales were tepid the last two years because of the pandemic and a disruption caused by the prevalence of mobile phones."
The TV market declined by 20% in 2021 to 25 billion baht, representing 1.7-1.8 million fewer units.
He forecast the value of the electrical appliance market would increase by 15-20% this year to 230-240 billion baht, from 200 billion in 2021.
Driven by improving sentiment, The Mall Group teamed up with partners in electrical appliances, allocating a marketing budget of 30 million baht to promote the "Power Mall Electronica Showcase" campaign.
The campaign runs from now until July 14 this year at all branches of Power Mall and is expected to generate 450 million baht in sales.
"We believe the high inflationary pressure is just a short-term problem. The spending power of mid- to high-end customers remains strong, as gauged from the value of their shopping spending," said Mr Jakkrit.
"If the tourism industry has completely recovered next year, income will immediately go to low-income earners, boosting their spending accordingly as well as the overall electrical appliance market."