LG Electronics (Thailand) Co Ltd is shifting its focus towards the business-to-business (B2B) market, which is anticipated to grow at a faster rate than the consumer market.
Amnaj Singhachan, the marketing head at LG Electronics (Thailand), noted that the company sees significant growth potential in the B2B sector. This optimism is fueled by the economic recovery in the country, alongside a rebound from the pandemic, resulting in heightened demand in areas such as offices and hotels.
He also pointed out that there remains opportunity for growth in the air conditioner segment.
“We will keep an eye on the year-end tourism season. If tourism flourishes this year, hotel operators may consider renovating their properties, presenting potential opportunities for the company in the coming year,” Amnaj stated.
The company distributes its products through three main channels: business-to-consumer (B2C) via dealers and sub-dealers, business-to-business (B2B), and direct-to-customer (D2C) through online e-commerce platforms like Shopee, Lazada, NocNoc, and LG’s own website.
Currently, the B2C channel comprises 80% of the company’s sales, while B2B and D2C each represent 10%. Amnaj explained that the company aims to increase the shares of B2B and D2C to approximately 15% each, while reducing B2C’s share to 70% by next year.
“In five years, our goal is to decrease the B2C share to 50% of total sales, while boosting B2B sales to 20% and D2C sales to 30%,” he said.
Despite the increased emphasis on the B2B segment, the company plans to maintain its relationships with B2C dealers.
Additionally, LG Electronics aspires to evolve into a “Smart Life Solutions Company” that enhances and connects customer experiences across various environments, including home, commercial settings, mobility, and virtual platforms. This ambition aligns with the company’s Future Vision 2030, which aims to highlight its innovative contributions beyond traditional home appliances.
Addressing the recent flooding in Chiang Rai province, Amnaj mentioned that about 10 of its 30 local dealers have been directly impacted. In response, the company is contemplating the introduction of a relief initiative, which may include a not-for-profit repair service for damaged electrical appliances along with promotional campaigns featuring extended installment plans for new appliance purchases.
The company is aiming for sales of 16 billion baht this year, representing a 7% increase from the previous year.
