The market-research firm estimates that sales of major domestic appliances such as air-conditioners, washing machines and refrigerators will see only a 3-per-cent increase this year.

"We expect the total home-appliance market to grow slightly, from Bt32 billion in 2006 sales to about Bt35 billion this year," said GfK market analyst Chutima Ketsawatdiwong.

"Growth of the industry will be driven by small domestic appliances at about 10 per cent on average," she said.

Chutima said economic difficulties and a big decline in new homes were the main causes of the sales slowdown in major appliances.

"We have witnessed stagnant or even negative sales of major appliances since last year, when there was a clear sign of economic difficulty and lower consumer confidence," she said.

She added that sales of air-conditioners dropped last year by almost 3 per cent in volume and 1 per cent by value. Sales of washing machines were stagnant both in volume and value. And sales of refrigerators were flat last year, too, but saw a 6-per-cent increase in value due to retail price rises.

Chutima said small appliances enjoyed healthy annual growth last year and would do so again this year.

Sales of electric fans jumped by almost 17 per cent last year in volume and by 21 per cent in value. Irons and vacuum cleaners increased by 9 per cent and 8 per cent respectively last year in volume. Both enjoyed 5 per cent growth in value last year.

GfK yesterday named Philips Electronics as the best seller of irons and blenders in 2006 in Thailand - its third successive year at the top.

Philips' general manager for domestic appliances and personal-care products Urasinee Deeprasert said the company upped its market share in blender products from about 26 per cent in 2005 to almost 37 per cent last year.

It has a commanding 50-per-cent share of the iron market.

The company's customer-marketing director for Asean, Andrew Sia, said it had seen good regional results for both for irons and blenders.

"Philips has close to a 60-per-cent market share in Vietnam for irons and about 50 per cent in Singapore for blenders," Sia said.

Asean markets grew at double-digit pace last year - in particular Thailand, where blenders added 34-per-cent growth last year over 2005.

"Thailand is an important market in our region, with growing affluence and sophisticated consumer needs. We see good potential to grow further in irons and kitchen appliances like blenders, juicers and kettles," Sia said.

Kwanchai Rungfapaisarn

The Nation