Despite the challenges posed by high household debt and declining purchasing power, LG Electronics (Thailand) remains optimistic about higher electrical appliance sales at year-end.
Thailand's household debt-to-GDP ratio was 89.6% in the second quarter, a slight drop from 90.7% the previous quarter, according to the National Economic and Social Development Council.
Amnaj Singhachan, head of marketing at LG Electronics (Thailand), said the company felt minimal impact from weakening consumer purchasing power. This resilience is attributed to its focus on the middle to high-income segment, targeting consumers with monthly incomes of more than 25,000 baht, he said.
"If we concentrate on low-income consumers and engage in a price war, the decline in spending power would affect our sales," Mr Amnaj said.
He said the company's sales in early December increased by 15-20% year-on-year, thanks to marketing campaigns from dealers that stimulated sales momentum.
Looking ahead to the last two weeks of the year, Mr Amnaj anticipated a sales spike as customers receive their year-end bonuses.
Moreover, the company expects an increase in sales from upcountry Thais returning to their hometowns, potentially seeking new electrical appliances.
"Sales will rise for most electronic appliances, especially refrigerators, washing machines and TVs," he said.
During this year-end season, LG Thailand plans to continue collaborating with banks to offer instalment payment options and bundling promotions on select products. For instance, customers can receive discounts on a second item when the first is purchased at full price, which should drive sales, said Mr Amnaj.
The company projects a positive outlook for the electrical appliance market in the New Year season, expecting this momentum to carry on until Jan 5, 2025.
Positive sentiment should continue until the Chinese New Year in the last week of January, according to LG Thailand.
He said the company hopes the government will reintroduce a nationwide stimulus campaign during this year-end period, such as the "Easy e-Receipt" programme.
The programme allows individuals to claim tax deductions of up to 50,000 baht for purchases of goods and services from businesses that participate in the e-tax system.