The sluggish economy has hit the kitchen appliances market as a result of a slowdown in consumer purchasing power as people are being more careful when it comes to spending, according to The Signature Brand Co Ltd (SBO), an importer of kitchenware and electrical appliances from Europe.
Kittanun Sontijirawong, chief executive of SBO, said dwindling consumer purchasing power, geopolitical uncertainties, rising freight costs and the baht's depreciation have posed unprecedented challenges to the company.
"We must maintain our product prices, absorb and manage all the rising costs amid declining consumer purchasing power and a weakening baht," Mr Kittanun said.
He said that in the first half of this year, the company was able to maintain its sales, compared to the corresponding period in 2023.
In the second half, the country's economy is expected to gradually recover, attributed to the disbursement of the fiscal 2025 budget, which would benefit the company in terms of sales growth, he said.
Mr Kittanun said the 10,000-baht digital wallet handout scheme would stimulate the economy, but the company would not benefit from the policy as consumers would not be able to use the digital money to purchase electrical appliances.
He said the company is focusing more on the Tecnogas brand, a high-end brand of kitchenware from Italy, by targeting high-income earners who are the least likely to be affected by the stagnant economy.
Last year, sales of new luxury residences and condominiums posted strong growth, especially residential properties worth 50 million baht and above, while those priced below 50 million baht experienced a slowdown, said Mr Kittanun.
He said the company has opened an SBO showroom on Bangkok's Sathon Soi 12 to present its imported kitchen appliances from Europe.
Moreover, the company plans to collaborate with its partners to open a new showroom in Phuket, but did not disclose the planned opening date.
Soravich Sontijirawong, SBO's chief business development officer, said the company has added 50 more distribution points nationwide, from 250 points previously, comprising department stores, modern trade and e-commerce platforms.
Mr Kittanun said the company's sales reached over 1 billion baht last year.
The company expects single-digit sales growth this year as a result of ongoing mega projects for hotels, office buildings, accommodation and co-working spaces.
In a base-case scenario, the company expects its sales to reach 1 billion baht, Mr Kittanun said.
