Toshiba (Thailand) Co expects the white goods industry, except for air conditioners, to contract for a second consecutive year in 2023.
Alex Ma, the company's deputy managing director, said in the first half the market for microwaves, washing machines and refrigerators dipped by 1%, 3% and 3%, respectively, because of weaker consumer purchasing power and relatively high household debt.
Only three categories experienced growth during the first six months of this year. Air conditioners led the way with a 36% growth, driven by the prolonged, scorching heat that persisted since the previous summer. Water heaters followed suit, showing a 15% increase, while electric rice cookers saw a respectable growth of 6% over the same period.
Mr Ma said a more positive outlook is anticipated in the latter half of the year due to recovering export prospects and an increase in tourism-related spending, which is expected to stimulate consumer purchasing power. Consequently, the overall white goods market, excluding air conditioners, is projected to contract by 1% this year compared to 2022.
Despite these challenges, Toshiba Thailand aims for a 15% sales growth in 2023 compared to the preceding year.
Thunpapat Ariyavoravadh, the company's marketing director, said various strategies aimed at achieving this objective. These include the planned launch of 39 new models in the latter half. This initiative seeks to enhance the diversity of the product portfolio, focusing on improvements in terms of performance, design and pricing.
Furthermore, the company has plans to broaden its distribution network by tapping into new channels. It will also expand its product lineup within each store, with a specific emphasis on the mid-to-high-end market segments. In a bid to drive sales, the company also plans to increase the marketing budget on e-commerce by 20%.
To ensure that online distribution complements other channels, the company is gearing up to offer a range of exclusive products.
Additionally, a heightened emphasis will be placed on partner synergy or collaborations between the Toshiba brand and business partners. This collaborative approach aims to provide consumers with tailored products and services through joint development efforts.
Marketing activities, encompassing both online and offline platforms, will be executed to reinforce brand awareness among existing customers and to engage more effectively with the younger generation. A makeover of its physical stores is also part of the plan, according to Ms Thunpapat.
Taweesak Kongchana, the sales director of the company, said Toshiba's sales performance in the first half of 2023 exceeded expectations. This was attributed to the ongoing commitment to product development that addresses market demands and specific target groups.
"We achieved a remarkable 15% growth across all product categories [excluding air conditioners] in the first half. Notably, our refrigerators, washing machines, microwave ovens and electric rice cookers all recorded growth compared to the previous year," Mr Taweesak said. "We expect the economy to get better in the latter half of the year. As the Covid-19 situation improves, there has been a noticeable uptick in consumer spending and travel."
He also highlighted the upward trajectory of consumption rates, the expansion of the real estate and construction sectors and the gradual improvement of exports.
"Therefore, the prospects from late this year to early 2024 appear promising," he said.