TCL Electronics, a Chinese electrical appliance manufacturer, seeks to target the premium market as spending by middle to upper-income customers is unaffected by the economic slowdown, as it plans to build an air conditioner factory in Thailand.
Chaloemchai Rattanaaem, business director of TCL Electronics (Thailand), said Thailand has a sluggish economy, but the home appliance and TV sector still has room to grow.
"In the first quarter of this year, the TV market fell by roughly 10% year-on-year, but contrary to the market trend TCL still posted growth of 10%," Mr Chaloemchai said.
The household debt-to-GDP ratio was 90.9% in the third quarter of 2023, according to the National Economic and Social Development Council.
"The high household debt will have minimal impact on our electronics sales as we opt for the middle to upper-income segment, who are barely affected by high household debt," he said.
The market size of the middle to upper-income segment is not growing, but this consumer segment is still spending during this stagnant economy, said Mr Chaloemchai.
Mr Chaloemchai said TCL will launch big TV screens to the market, ranging from 55 to 115 inches, aiming to capture this segment and to continue increasing sales this year.
Moreover, the upcoming sporting events season, including the Uefa Euro 2024 football tournament in June and the Summer Olympics in late July, will increase TV sales by roughly 30% and will take more market share from competing brands.
Mr Chaloemchai said the firm's overall sales reached 4.5 billion baht last year, up 40% year-on-year, led by TV products followed by air conditioners.
Johnny Yi, managing director of TCL Electronics (Thailand), said sales revenue this year will be further driven by the launch of two gaming monitors, new products in the IT group, along with air conditioners and TV products.
He said the company has set a target for sales revenue to reach 15-20 billion baht in five years.
"TCL plans to set up a new air conditioner factory in Thailand within 2-3 years, aiming to supply both the local and global markets," Mr Yi said.