Electrical appliance segment to see full recovery in 2023

Electrical appliance segment to see full recovery in 2023

Domestic stimulus and the return of shopping sentiment bodes well

Mr Ma, right, and Kobkarn Wattanavrangkul, centre, chairperson of Toshiba Thailand Co, announced the firm's business plan for the Comfee brand to cash in on a recovery in Thailand's electrical appliance market this year.
Mr Ma, right, and Kobkarn Wattanavrangkul, centre, chairperson of Toshiba Thailand Co, announced the firm's business plan for the Comfee brand to cash in on a recovery in Thailand's electrical appliance market this year.

Major electrical appliance manufacturers and distributors expect the industry to fully recover in 2023.

Amnaj Singhachan, senior marketing manager at LG Electronics (Thailand) Co, the marketer of LG electrical goods, said he believes the electrical appliances market could fully recover this year, driven by several positive factors including the "Shop Dee Mee Khuen" tax rebate, under which consumers can claim up to 40,000 baht in tax deductions for goods and services purchased between Jan 1 and Feb 15.

He said the revival of shopping sentiment in tourist destinations is another factor.

Moreover, a number of hotel operators have started upgrading TVs at their properties, while the property market has recovered, resulting in huge demand for electrical appliances this year.

"Despite existing challenges from the continuous increase of production costs and anticipated pricing competition, electrical appliances are likely to become more energetic in 2023," said Mr Amnaj.

LG plans to spend 900 million baht this year on marketing and activities to increase sales by 10% from an estimated 12.5 billion baht in 2022.

The company is also scheduled to launch 100 new models to the market, including 50 types of TVs, 20 washing machines, 15 air conditioners and 12 refrigerators.

LG Electronics Thailand also wants to modernise its dealers' stores this year, he said.

Thanes Bin-a-sun, chief operating officer of Haier Electrical Appliances (Thailand) Co, said the company plans to increase its marketing budget by 20% to 1 billion baht this year to increase sales by 20% to 12 billion baht in 2023 and 15 billion in three years.

He expects the 53-billion-baht electrical appliances market will grow by 3-4% this year, with tourism becoming instrumental in improving the overall economy and purchasing power.

The company will focus on large products and smart home products linked to the Internet of Things, said Mr Thanes.

Ding Guijian, Haier's chief executive, said the electrical appliance sector is expected to drop 7% in 2022 because while the overall economy is recovering, the market still faces key challenges including inflation and low GDP growth.

According to Alex Ma, deputy managing director of Toshiba (Thailand) Co, the distributor of Toshiba home appliances, the firm recently launched Comfee appliance brand in the Thai market following success in Europe and North America, targeting Millennials in the local market.

The company plans to introduce more than 30 Comfee air conditioner models to the local market soon, he said.

Mr Ma said Toshiba wants to add Comfee refrigerators, washing machines and small appliances such as microwaves, blenders, ovens and water dispensers to the Thai market this year.

Toshiba (Thailand) is in charge of branding, marketing and product distribution for Comfee across Thailand.

"With 53 years in the Thai market, we are confident Comfee will catch on quickly among Thais. Our decision to target the younger generation supports our strategy to modernise our image and reach the young and fashionable segments," he said.

The company focuses on air conditioners because this product category, which is worth 20 billion baht, has an outsized presence in the electrical appliance market, said Mr Ma. Toshiba aims to achieve more than 500 million baht in sales a year from Comfee, with more than 300 distribution outlets across Thailand.

The company plans to boost awareness of Comfee via promotional activities at points of sale, product roadshows to provincial cities and use of out-of-home media.

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