Johnson Controls-Hitachi Air Conditioning (Thailand) Co, a provider of residential and commercial air conditioning, is set to resume expansion this year after scaling down its activities for three years during the pandemic.
"We feel more optimistic about the air conditioning business in Thailand, which is the fastest growing market in Southeast Asia. We believe the potential for growth in Thailand remains ample, given the low occupancy rate for air conditioning in Thai households, especially in upcountry areas," said Kintaro Izumida, vice-president and general manager of Johnson Controls-Hitachi Air Conditioning Asia-Pacific.
"We are focusing on enhancing Hitachi air conditioners in the upcountry market."
Wattakan Chaiwerapattana, the general manager, said as Thailand is one of Hitachi's strategic countries in Southeast Asia, the company resumed its aggressive expansion following the pandemic.
Before the pandemic, the firm focused on expanding via the modern retail channel. This year the company wants to emphasise growth in upcountry areas, where the household penetration rate is still only 50%, compared with 70% in Bangkok, said Mr Wattakan.
The company imports Hitachi air conditioning products from Malaysia, China and Japan to be sold via its 300 authorised distributors across the country.
The goal is to increase demand this year by partnering with independent traditional trade and installers in upcountry areas to buy and promote its products, he said.
A new price tier for Hitachi air conditioners was introduced to draw the interest of customers aged 20-30.
"In the past, Hitachi air conditioners were aimed at the premium market. We are now expanding our entry price points for non-inverter models to widen the customer base. The advertising and promotional budget will be increased by 15% from last year to promote brand awareness," said Mr Wattakan.
To increase consumer confidence, the company also vows to improve its after-sales services and reduce costs for consumers with the recent launch of the VSI-VRF service in Thailand.
The VSI-VRF comprehensive service plan is a new warranty that improves the after-sales service standards for Hitachi VRF air conditioner customers. The warranty covers all parts of the Hitachi VRF air conditioner for a maximum of three years, allaying concerns about unexpected expenses.
Hitachi also organised its first air conditioning installation activity to train installers and provide customers with a full range of products and services.
He expects the sales volume of Hitachi air conditioners this year to double from last year because of the company's after-sales service and the team's agility in responding to customer needs.
In addition, the company expects sales this year to grow by 10% to 1.7 billion baht.
"Thailand's air conditioning business is expected to return to the pre-crisis level in 2025, worth 23 billion baht," said Mr Wattakan.
He said the company will increase its advertising and promotion budget by 20-30% next year as part of efforts to double the market share of Hitachi air conditioners to 10% within three years, up from the current 5%.