Presenters showcase Sylvania products launched at the Architect ’07 trade exhibition. The company hopes the new lamps will help it achieve Bt600 million in sales this year, despite worries that the lighting market will experience its lowest ebb in five ye

Sylvania (Thailand) estimates that the Bt6-billion lighting market will contract 20 per cent this year - the worst slide in a five-year cycle - as shoppers stay home and property developers shelve their project plans.

Tatphong Pataraphongsri, sales and marketing manager for project business, said yesterday that the economic slowdown had hit both the retail and project markets.

While he does not have an exact figure for the drop in retail sales for the lamp and lighting-fixture manufacturer, its project sales have already declined by 30 per cent in volume.

Sylvania sells under its

own name in both the retail

and project markets and also sells its Lumiance and Concord:marlin brands to building projects.

The company - part of Germany's Siemens group - has witnessed a price war for bulbs both by light manufacturers and some major retailers, he said.

The chains slashed bulb prices without asking manufacturers including Sylvania, and then sent letters to the makers asking for compensation for the missed profits.

That led to Sylvania withdrawing its lines from three major retailers.

The company has adopted the strategy of churning out new designs to avoid competing in the retail war for traditional products, and expects to generate profits more easily. It has also changed its focus from projects to individual houses priced Bt10 million and up, and to general retailers who want to renovate their shops.

The company has seen no decline in rich people's demand for specially designed lights with specific properties. And retailers always need to redecorate their shops to keep up their appeal amid intense competition brought on by the economic slowdown.

The company plans to approach the targeted groups through interior designers and architects.

It will arrange many marketing activities - including "entertaining seminars" in the four regions - and attend three trade exhibitions, including the ongoing Architect '07 show at Impact Muang Thong Thani.

The budget for these activities is set at 10 per cent of expected sales this year.

The seminars feature groups limited to 30 architects, interior designers and other professionals who will participate in entertaining activities while learning about the latest lighting systems and the company's offerings.

The lighting market should rebound quickly after the election of the new government, which would restore confidence of international investors in Thailand, Tatphong said.

The company plans to launch 15 lamp models this

year to help generate Bt600 million in sales, of which Bt250 million will come from project orders.

It has set a three-year goal to reach Bt1 billion in annual sales.

Nitida Asawanipont

The Nation