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Published on November 2, 2007

Chukiat Tokamolthum, consumer products manager for Diethelm, said sales of household appliances were expected to be stagnant or decline between 5 and 10 per cent this year.

"This has been a most difficult year in all product segments, whether cheap, medium-priced or even premium goods," said Chukiat.

"It is quite different from previous years of economic slowdown, when premium-end products received little impact."

Chukiat said that even cosmetics sales, which had enjoyed positive growth during previous downturns, had seen a serious decline this year.

Diethelm is the local distributor of electrical products, including electronic shavers, hair removers, dryers, electronic toothbrushes, blenders and coffee machines for Braun of Germany.

Chukiat said the company was facing strong price competition from major rivals who had reduced their prices by up to 30 per cent this year to attract buyers.

He said the overall market for small electronic household products posted growth of between 10 and 15 per cent in 2005.

The growth declined to only 5 per cent last year and was stagnant this year.

"Many customers who could previously afford premium-end products have shifted their purchases to cheap and medium-priced goods," he said.

Chukiat said the company had divided its Braun products into two major segments - household products and beauty products.

"Our strategy is to focus more on the beauty line-up including shavers, dryers and hair removers, which still have healthy growth of between 10 and 15 per cent every year," said Chukiat.

He added that beauty products now accounted for 60-70 per cent of sales of Braun products in Thailand.

Varut Satidtanasarn, Central Trading's vice president for consumer products, said the sales situation for electrical products had improved since last month as the market was becoming stable and had started to pick up slightly.

"Today consumers are not looking for high-value products, but value-for-money products," said Varut.

He added the market for electrical products had been actively stimulated with strong promotion campaigns, particularly price dumping and offers of attractive finance packages such as long instalment periods of six to 24 months without interest.

"It is a good time for consumers who have spending power, as they are able to purchase products at good prices. Electrical products which have been positioned in the medium-end market will face severe price competition," said Varut.

Kwanchai Rungfapaisarn

 The Nation