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Published on March 27, 2008

"Our ambition is to build the market share of Midea in Thailand's air-conditioning market from currently none to 6-7 per cent in three years," King Zhao, manager of Midea Air-Conditioning Equipment (Thailand), said yesterday.

"Midea's track record of success in global markets is most encouraging, particularly with our air-conditioning products. We are very positive about our investment in Thailand's air-conditioning market, and we believe Midea will have much to offer consumers here," he said.

The local subsidiary was opened last September with Bt3 million in registered capital.

MD Distributor (Thailand) was appointed as the sole distributor in charge of marketing and sales. It is an affiliate of Siam Pasco, which handles popular air-conditioner brands.

More than 100 dealers will sell Midea products both in Bangkok and major cities upcountry, including Khon Kaen and Phuket.

Zhao said the setting-up of a presence here was part of the company's plan to become a key player in Asia in air-conditioners and other home appliances such as refrigerators and washing machines. It has already entered Japan, South Korea, Hong Kong, Malaysia and Vietnam.

The company will spend US$500,000 (about Bt16 million) to promote awareness of its air-conditioners in this new market, with the goal of selling 15,000 units this year. It expects sales to ramp up to 50,000 units in three years.

Midea operates four household air-conditioner plants at Wuhu, Wuhan, Shunde and Guangzhou in China and started up a manufacturing facility in Vietnam last year. Employing more than 2,000, the Vietnamese plant can assemble about 500,000 units a year.

The group's annual production capacity of more than 18 million units represents almost 40 per cent of worldwide output of household air-conditioners.

Midea enjoys a market share of more than 20 per cent in its homeland.

"We sell annually about 7.8 million household air-conditioners in China, while 7.2 million units are exported to 126 markets around the world.

"We have made air-conditioners for many famous brands such as Carrier, York, GE and Electrolux," Zhao said.

Midea's product line starts from its fighting model in the split-type segment, the Glory, rated 9,000-24,000BTUs; to the midrange or standard model, the Elite, rated 9,000-18,000BTUs; and ends at the top-end model, the Vertu, with 9,000-12,000BTUs.

Kwanchai Rungfapaisarn

The Nation