The local distributor of Mitsubishi electrical products aims to maintain its market share in the face of a shrinking growth rate, helped by a 35-million baht (approx. U.S. $850,000) campaign to celebrate its 35th anniversary in Thailand.
Demand for electrical goods next year would still grow, but at a rate lower than this year, said Anun Bunjerdtum, general manager for marketing and sales of Mitsubishi Electric Kang Yong Watana Co.
"This year's growth rate is about 15 percent. The growth rate next year could be lower than 10 percent," he said.
Besides negative economic factors such as rising fuel prices, the housing market is expected to slow, prompting a drop in demand for new appliances, Bunjerdtum said.
As a result, he said, competition would intensify but Mitsubishi hoped to at least keep its market share. Because consumers are becoming more cautious in their spending, they tend to buy brands they trust. Mitsubishi believes it can sell based on quality and value for money without the need to compete on price, according to Bunjerdtum.
Mitsubishi Electric Kang Yong Watana makes and distributes a variety of products including air-conditioners, electric fans, ventilation fans, home water pumps, refrigerators, and washing machines.
Air-conditioners account for 55 percent of its sales, followed by refrigerators (20 percent), water pumps (10 percent), electric fans (9 percent), ventilation fans (3 percent), and others (3 percent).
According to Bunjerdtum, the company is the market leader in air-conditioners, electric fans, ventilation fans, and home water pumps, and is ranked second in the refrigerator market.
To mark its 35th anniversary, Mitsubishi Electric Kang Yong Watana is giving away 3,500 prizes worth a total of 35 million baht (approx. $850,000). During the last 2 months of this year, it is also spending 25 million baht (approx. $607,000) on a "bonus sale promotion" offering discounts and premiums.
Next year, the company expects its sales will grow by 10 percent while this year's sales have risen to 6 billion baht (approx. $147.7 million), above its earlier projection of 5.75 billion baht (approx. $139.7 million). For this reason, it may revise its 2006 forecast in January, Bunjerdtum said. (Bangkok Post)
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