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Published on April 22, 2008

Sucheera Pinijparakarn

The Nation

The growth will be buoyed by a recovery in domestic consumption resulting from the government's property-stimulus package.

Star president Somchai Wongaroon yesterday said the company would increase its proportion of domestic sales from 30 per cent of total sales now to 40 per cent this year after launching two new collections.

The stimulus package, which helps home-buyers avoid fees on property transactions, will be a key factor in spurring the sanitary-ware industry, he said. The company will therefore shift its marketing strategy to focus on retailers and the modern trade.

Yesterday, Star Sanitaryware introduced two new collections, called Black and White and Zero Touch, which have already received good feedback in foreign markets. Somchai believes it will meet with similar success in Thailand.

Star exports all new collections before launching them domestically.

"The company is targeting sales of 200 sets a month in the domestic market," Somchai said. "This year, we'll turn our attention to the domestic market, because the property sector will be on the rise in the second half of the year."

Somchai predicts the sanitary-ware industry will grow 5 per cent this year, in line with Thailand's gross domestic product after sales last year fell 2 per cent from the slowdown in the property market.

"As a result of an increase in oil and material prices, sanitary-ware manufacturers are most likely to lift their product prices at least 5 per cent in the second half," he said.

Star Sanitaryware plans to increase its plant use from 70 per cent to 85 per cent, in order to fill foreign demand.