Unrelenting political upheaval during the past many months has not been easy for many industries to cope with, but Tatung Thailand president Charlie Lan has found a few bright spots to be cheerful about.

Five years after the local property market began to explode following its swift recovery in 2001 from the 1997 crisis, Lan sees a burst of demand for appliances from many newly completed residential and hotel projects.

"Condominiums need to fit their units with appliances to draw buyers. So do many new serviced apartments that are opening soon," he said. "Buyers are looking for quality appliances ranging from refrigerators to lights, ovens and home-entertainment equipment."

Tatung Thailand makes LCD monitors. Among its more popular models is its 27-inch set.

"We have in the past, made LCD sets for exports," he said. "Now, with the changing circumstances, we see a need to service the local real-estate sector."

One order last week was for 300 LCD TV sets from a serviced apartment, he said.

More such purchases are expected to follow in the coming months.

"While the Tatung brand is not as widely known here as Sony or Panasonic, it is the leading brand in Taiwan," said Lan. "One of our goals for the next five years is to be recognised among the top five names in electronics."

"This objective is not beyond us," he said. "Look at Samsung: Twenty years ago who would have heard of them?"

Through professional marketing, however, the Korean firm has become a household name today.

Tatung Thailand, based in the Amata Industrial Estate, began operations in the Kingdom 15 years ago.

The company has its roots in Taiwan and today has plants globally. The group's revenues last year were US$7.5 billion (Bt281 billion), he said.

Tatung has low-tech factories in China and Vietnam that make refrigerators, ovens and other home appliances.

The Thai plant mainly churns out hi-tech products, producing items such as LCD-TV sets. Its revenues last year topped Bt6.5 billion.

The company is growing at 15-20 per cent a year, said Lan.

"We will not compete in the lower segment of the Thai market," he said. "Because of quality factors, we don't want to compete in that segment."

His company does not sell appliances through "hyperstores" such as Tesco or Carrefour.

"But in the high-end market, we can do better as we can offer prices that are 30-per-cent below those of our competitors," he said. "This is because we both produce and sell our products."

The China-born executive said buyers in Thailand could also rely on its after-sales service as well as guarantees.

To compete in the dynamic Asian market, the Thai industrial work force also needs to improve its skills as "technology is always changing quickly", he said.

"Vietnam is one of Thailand's key competitors. It can overtake the country in less than 10 years if local manufacturers slack off.

"With Vietnam soon joining the World Trade Organisation, Thailand really needs to wake up to the competition before it is too late," he said.

But cheaper labour is not the only worry, he said. "It is in acquiring advanced technology and mastering it," he said. "There's no room for complacency." The Kingdom does have advantages, Lan said.

It is now drawing new buyers from the Middle East who used to buy from India, he noted.

They prefer Thailand because goods here are of higher grade and the contracts are better honoured.

Itthi C Tan

The Nation