Toshiba Thailand has set a goal of achieving 20% growth for the entire year, shifting more of its product lineup toward mid-range and high-end products to address weak consumer spending in the mass market and respond to global economic challenges.
Alex Ma, deputy managing director of Toshiba Thailand, reported a 26% increase in sales across all products during the first half of the year compared to the same period last year. He shared that the company anticipates a 14% sales growth in the latter half of 2024.
The strong performance in the first half was driven primarily by major domestic appliances (MDA), such as air conditioners, refrigerators, and washing machines. Since 2022, Toshiba has been manufacturing more of its premium-tier products, particularly refrigerators and washing machines, in Thailand, following the relocation of its manufacturing facilities from China. This move aims to enhance supply chain management and pricing competitiveness.
With the introduction of new models, especially front-load washing machines, and the relocation of production, Toshiba Thailand recorded a 47% increase in washing machine sales and a 15% rise in refrigerator sales for the first half of 2024. Furthermore, revenues from air conditioners surged by 103%, although this was based on a relatively small volume.
Looking ahead to the second half, Mr. Ma expressed optimism for growth despite economic uncertainties, including fluctuating currencies, a sluggish Chinese economy, and the upcoming U.S. presidential election. The company plans to rely on new products and branding initiatives to drive this growth.
Toshiba Thailand is set to launch 27 new products across both the MDA and small domestic appliances (SDA) categories, primarily focusing on high-end models. By the end of the year, the total number of product models produced by the company will reach 206.
Kobkarn Wattanavrangkul, chairperson of Toshiba Thailand, noted that the company is shifting its focus toward customers who remain undeterred by economic challenges and sluggish purchasing power, as well as appealing to younger consumers to reshape its image from a provider of mass-tier products.
In 2019, Toshiba’s middle and high-tier products represented 30% of its sales; that figure has now increased to 40%, with a target of reaching 50% by 2025. This strategy also aims to help the company maintain strong performance amidst an influx of Chinese products in the retail market.
Mrs. Kobkarn highlighted that the robust tourism sector, with an influx of foreign visitors and upcoming festive events, is expected to boost local consumers’ disposable income and encourage purchases of Toshiba products.
While electrical appliances are not included in the government’s digital wallet scheme, the company anticipates benefiting indirectly from the financial circulation generated by the initiative. She noted that consumers view electrical appliances as essential, and Toshiba’s offerings cater to modern lifestyles, such as all-in-one washer-dryers that save space.
Celebrating its 55th anniversary this year, Toshiba Thailand aims to become the leading seller of all types of electrical appliances within the next three to five years. The company will host a special campaign at Siam Paragon on August 24-25.
