Exporters of water heaters face stiffer competition
Thailand's water-heater exports should witness a drop in value this year compared with last year, due to the global economic slow-down, particularly in importing countries, reports the Kasikorn Research Centre.
Cheap products from China are also cited as a main reason for the drop. Last year, export value expanded only 0.9 per cent to Bt432.4 million, because local manufacturers suffered from higher production costs. At present, Japan accounts for 49.9 per cent of water heaters exported from Thailand; Finland, 8.6 per cent; Canada, 4.9 per cent; Hong Kong, 4.4 per cent; and others, 32.2 per cent. Against a drop in export value, imports of water heaters should rise. The centre reported the price tags of imported heaters were 5-10 per cent lower than locally produced products with relatively similar functions. Most of the imports are from Malaysia, Panasonic's major manufacturing centre for water heaters. Also last year, imported heaters were valued at Bt689.8 million, or 19.9 per cent higher than in 2005. Imports from Malaysia accounted for 75.8 per cent of total value; from Germany, 8.7 per cent; from China, 4.4 per cent; from Vietnam, 3.1 per cent; and others, 9 per cent. Domestically, 260,000 heaters were sold in 2005. Last year's figure was 280,000, a 7.69-per-cent increase. "However, the growth rate this year is expected to be only 4.6 per cent, reaching 293,000 units, due to the economic slow-down that has caused consumers to tighten their belts. Meanwhile, competition will intensify from manufacturers launching marketing activities to boost sales," the research centre reported.
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