Toshiba Thailand has targeted 20% growth for the entire year, with more of its product line-up shifting to middle and high-tier products to tackle sluggish spending in the mass market and respond to global economic challenges.
Alex Ma, deputy managing director of Toshiba Thailand, said the company reported a 26% growth in sales across all products in the first half when compared with the corresponding period last year. He said Toshiba Thailand still expects to record 14% sales growth in the second half of 2024.
The company's performance in the first half was driven by major domestic appliances (MDA), which comprises large products such as air conditioners, refrigerators and washing machines.
More Toshiba products, particularly refrigerators and washing machines in premium tiers, have been manufactured in Thailand since 2022 when Toshiba manufacturing facilities were relocated to Thailand from China in order to strengthen the company's supply chain management and pricing advantage.
With the launch of newer models, particularly front load washing machines, along with the relocation of the company's manufacturing facilities, Toshiba Thailand recorded 47% growth in sales of washing machines and 15% growth in sales of refrigerators in the first half of 2024.
Meanwhile, revenue from air conditioners increased 103%, but this was based on relatively small volume.
For the second half, Mr Ma said despite unstable economic growth due to fluctuating currencies, the sluggish economy in China and the upcoming US presidential election, the company remains upbeat on growth, banking on new products and branding campaigns.
Toshiba Thailand will launch 27 new products in both the MDA and small domestic appliances (SDA) categories, which would mainly be high-tier models, which would see the number of product models produced by the company reach 206 by the end of this year.
Toshiba Thailand chairperson Kobkarn Wattanavrangkul said the company is pivoting to customers who are unfazed by the economic challenges and sluggish purchasing power as well as targeting young buyers to adjust its image as a company producing mass-tier products.
In 2019, the company's middle-and high-tier products accounted for 30% of sales, but the share has now increased to 40%, prompting the company to target 50% by 2025.
This will also help the company maintain a strong performance amid an influx of Chinese products in the retail market.
Mrs Kobkarn said the robust tourism industry, attracting a large number of foreign arrivals and including festive events during the remainder of this year, should distribute more income to local consumers and encourage them to purchase the company's products.
While electrical appliances are not eligible under the government's digital wallet scheme, the company would still indirectly benefit from financial circulation generated by the scheme.
She said local buyers see electrical appliances as a necessity and Toshiba products are catering to new modern lifestyles such as the trend for all-in-one washer-dryers that help costumers save space.
Toshiba Thailand is celebrating its 55th anniversary this year, and the company aims to become the leading seller of all types of electrical appliances within the next three to five years.
The company is launching a special campaign at Siam Paragon during Aug 24-25.