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Published on March 31, 2008

Amid the economic slump and higher living expenses driven by rising petrol prices, many air-conditioner firms are launching fierce campaigns to attract buyers.

Thai Samsung Electronics, the South Korea-based manufacturer of electrical appliances, announced last week that it is seeking to be among the top three players in the local market, which is expected to be worth Bt14 billion in sales this year.

Somporn Jangreenapawong, an air-conditioner executive at the company, said it would launch a complete line of 15 models, featuring state-of-the-art health technology under its "Life with Protection" theme.

Prices range from Bt17,900 for a 9,000-BTU model to more than Bt48,000 for 24,000-BTU units.

"We expect to sell 120,000 air-conditioners this year, a 30-per-cent rise over last year. That will increase our market share from the current 12 per cent to about 15 per cent," he said.

"The move will mean Samsung takes a leadership position in the market from the current top five to top three by the end of the year," said Somporn.

Panasonic and Mitsubishi are in first and second place, each with a market share of between 20 and 25 per cent.

Somporn said the campaigns this year came on the back of its gains last year, when it sold 82,000 air-conditioners - a 50-per-cent jump over 2006.

The overall market is expected to grow 10 per cent from last year with a value of Bt14 billion for more than 800,000 air-conditioners.

He said Samsung would launch innovative products this year featuring health technology, environmental protection and advanced design.

The company will spend Bt150 million on marketing costs, he said.

LG Electronics (Thailand)'s product marketing manager for air-conditioners, Sinamet Im-aim, said the company expected its market share for home air-conditioners to grow from 18 per cent to 20 per cent this year.

Sinamet said the total demand for wall-type air-conditioners in homes was expected to reach 850,000 units this year, carrying a sales value of about Bt13 billion, up 8 per cent from last year.

"We want to sell about 170,000 air-conditioners this year, with a sales value of Bt2.6 million, which is up 35 per cent over last year," he said.

"We will focus more on premium air-conditioning products in 2008, hoping to capture different segments of customers, including those who prefer design and technology, as well customers who are conscious about costs and value."

Panasonic AP Sales also plans to overtake its rivals to take the No-1 position in the local air-conditioner and refrigeration market for the first time. Deputy managing director Motoyuki Shigemori said the firm expected to increase its share of the local market from 23 per cent to 25 per cent in fiscal 2008, taking the top spot from Mitsubishi.

It expects to sell 175,000 air-conditioners this year. Overall demand for home units is likely to increase from 650,000 last year to about 680,000 this year.

Panasonic plans to launch 16 different models this year, with prices ranging from Bt17,900 to Bt65,000.

"Today consumers are challenged with economic difficulties caused by inflationary factors such as rising oil prices, which have led to higher power bills and living costs," he

said.

"The company has focused on developing new innovations designed to meet the demands and lifestyle of consumers who are concerned about conserving energy and support environmentally friendly products."

Kwanchai Rungfapaisarn

The Nation