
Players in the electrical appliance market are focusing on improving customer services and raising brand awareness as they wish to escape from a challenging price war.
The air conditioner market in Thailand was highly competitive last year, especially as high housedold debt made consumers more cautious when it came to spending, said Toshiyuki Iizuka, managing director of Mitsubishi Electric Kang Yong Watana Co Ltd (MKY), a local distributor of Mitsubishi electrical appliances.
He predicted that this trend would continue into the 2025 fiscal year, which will run from April 1, 2025, to March 31, 2026.
"Our strategy will not revolve around price competition, but rather highlight the better features of our products," he said.
Moreover, the company continues to improve its after-sales service by utilising a Line official account. This allows customers easy access to after-sales service information, including repair status and additional support, added Praphon Potivorakorn, deputy managing director of Mitsubishi Electric Kang Yong Watana.
Despite the high level of household debt, there remains demand for new electrical appliances. However, consumers might opt for more affordable options, said Thanawat Wongchanwuth, deputy general manager of MD Consumer Appliance (Thailand) Co Ltd, the local subsidiary of Midea, a Chinese air conditioner and electric appliance manufacturer.
Thailand's household debt-to-GDP ratio stood at 89.6% in the second quarter in 2024, according to the National Economic and Social Development Council.
Mr Thanawat said his company may benefit from current consumer purchasing behaviour.
MD Consumer Appliance positions its products at retail prices about 20-30% lower than Japanese brands and 15% cheaper than South Korean brands.
"But the competition with other Chinese brands remains high. Current economic conditions may lead to further price wars within the market," he said.
To counter this, the company is focusing on bolstering brand awareness through outdoor advertising such as skytrain wraps, and enhancing customer services, he added.
"Our focus is on providing quality products at affordable prices, while improving service efficiency," he said.
The goal for this year is to resolve 80% of customer inquiries within 24 hours, down from 48 hours last year, he added.