Epson (Thailand) turns to own dealers amid economic slowdown

Epson (Thailand), the sales and marketing arm of the giant Japanese Seiko Epson Corporation for its office automation products and electrical appliances, yesterday announced a new "sales coverage strategy" aimed at overcoming the country's sluggish consumer sentiment.
The company will limit the role of its distributors and sell products directly and more aggressively to end-users through its dealers. The move is expected to create a closer relationship between Epson (Thailand) and its dealers in selling products to individual customers, particularly business clients. President Naoyuki Saeki said that in the present political and economic uncertainty, Thai consumers have lost consumption-mindedness and instead of buying products they are holding on to their money. "What Thai consumers are doing is waiting for the local political and economic situation to be settled with national elections at the end of this year," Saeki said. In this negative economic situation, the company needs to be more aggressive in pushing its products to end-users. "Under our new 'sales coverage strategy', distributors will be responsible only for physical distribution of products, financial issues and sales promotion activities. The company itself will link up directly with individual dealers on special marketing campaigns aimed at encouraging consumers to buy," he said, adding that the company will be able to market its products aggressively to business clients, such as selling projectors to schools or presentations to other business clients. Saeki said Epson has a leading share of between 70 per cent and 80 per cent of the local market for dot-matrix printers and about 13 per cent of the market for projectors. It expects sales in Thailand to increase by 10 per cent this year to Bt2.7 billion. However, sales in the first six months of 2007 grew by only 5 per cent and Epson will have to pick up its figures in the second half. "As a trading company, we are highly concerned about the sentiment of Thai consumers," Saeki said. "We hope that Thailand's political uncertainty will be settled as soon as possible and consumers will develop a more positive sentiment and start spending normally." Yesterday Epson (Thailand) also announced its sponsorship of the AFC Asian Cup 2007, Asia's largest football tournament. As part of a marketing campaign associated with the sponsorship, the company will give away more than 160 prizes worth over Bt600,000. "The policy from our parent, the Seiko Epson Corporation, is aimed at seriously bolstering Epson brand awareness throughout Asia. Using this regional sporting event as a tool will enable Epson to effectively reach out to all levels of customers in Asia," Saeki said. Kwanchai Rungfapaisarn The Nation
|