Siam Daikin Sales Co Ltd, the local distributor of Daikin air conditioners, expects modest growth in the Thai air conditioner market this year.
Despite the expected expansion of the Thai tourism sector, driven by higher foreign arrivals, the Thai economy is projected to remain flat this year, said Varut Lekajirakul, assistant general manager of marketing at Siam Daikin Sales.
In the real estate sector, developers are likely to launch fewer new projects this year due to existing backlogs.
However, an increase in consumer demand for air conditioners is expected to drive some growth in the market.
Mr Varut said the company sees potential within the business-to-business segment, particularly as data centres are expanding in the country.
Moreover, the growing trends of carbon emission reduction and sustainability may encourage real estate operators such as hotels and malls to consider renovating their buildings aligned with green initiatives, and this presents further opportunities for the air conditioner market.
Mr Varut said modern commercial air conditioning technology is more advanced than older models, using environmentally-friendly refrigerants with designs to substantially reduce power consumption.
In the consumer segment, Mr Varut said the company has a solid customer base aged between 30 and 50, who have reasonable spending power. The company intends to continue focusing on these customers.
"Daikin wants to reach out to younger customers, such as first-jobbers, and penetrate the provincial markets this year," he said.
To attract these customers, the company plans to introduce new high-quality products at slightly lower prices, said Mr Varut.
Regarding the price war in the Thai air conditioner market, he said the fierce competition is likely to persist this year. However, the company aims to position itself as an "affordable premium" brand without compromising product quality.
The company has set a revenue target of 13 billion baht for fiscal 2024 (April 1, 2024 to March 31, 2025).
Mr Varut said the company expects the revenue for fiscal 2025 to reach 15 billion baht, reflecting double-digit growth.
