BSH Home Appliances Ltd, a unit of Bosch and Siemens, is gearing up for the end of the current economic gloom by spending more than Bt100 million on improving its distribution network and launching hard-hitting marketing activities this year.
“We are quite optimistic about the economic and political situation in Thailand, which will fully rebound in the middle of next year,” managing director Andreas Meier said yesterday.
“We expect the political uncertainty to settle down by the beginning of next year and people’s confidence will recover. The government will next year allocate funds to new big projects, which will encourage an improvement in the economy and higher spending power of people,” he said.
For example, the 45,000-unit market for front-loader washing machines was expected to be stagnant this year, but next year could see growth of 8-10 per cent, he said. Siemens wants to do better than the overall market by increasing its sales of such machines by 25 per cent next year.
“We have allocated more than Bt100 million this year to marketing communications, distribution expansion and promotional activities. We will be more aggressive this year but in the premium product segment,” he said.
After 2001, when the company set up a local factory in the Kabin Buri district of Prachin Buri, Thailand was appointed by BSH Bosch und Siemens Hausgerate GmbH as the production hub for its front-loader washing machines for exports to the whole of Southeast Asia as well as Australia and New Zealand.
Washing machines are made here to the same quality standard as those produced in BSH’s plants in Germany, Poland, Spain and Turkey.
The company has 150 dealers nationwide and wants to increase that number by 30 per cent this year, particularly upcountry.
“We also expect tougher competition in the front-loader washing machine market as Korean players are coming. Samsung has started production at its Chon Buri plant, while LG will next year also start production in Thailand,” Meier said.
“We are quite confident in our positioning in the premium product segment. We are also the first company to introduce front-loader washing machines to the Thai market,” he said.
The home appliance market here is quite fragmented, he said. For example, 90 per cent of washing machines here are top-loading models.
However, front-loader units offer the advantages of less energy and water consumption.
The company has 30 per cent of the front-loader washing machine market, second only to Electrolux.
“BSH in Thailand was founded five years ago and during the past two years, we have seen more than 20-per-cent growth each year. Despite the economic slowdown, we still expect the same growth for this and next year,” Meier said.
The company is now the No 1 player in the premium segment of built-in kitchen appliances.
“Our strategy is not the low-end market,” he said.
The kitchen appliance business here was worth more than ค400 million (Bt19.2 billion), with the premium product segment accounting for about 20 per cent.
The company, which sells cooking appliances, cooling appliances, dishwashers and laundry machines, enjoys a share of more than 10 per cent of the premium product segment.
From The Nation
