Market faces tough year ahead

The market for electronic goods will face a tough time next year due to economic and political instability.

"We estimate total domestic demand for electrical appliances to have a significant drop of 5 per cent next year, due to the domestic and global economic difficulties," Chaiyarit Piyabootr, manager of GFK Marketing Services (Thailand), said yesterday.

"We are, however, quite optimistic about the future of Thailand as we have seen the light at the end of the tunnel. The country has got its new prime minister. All stakeholders including economists have put their brains together to find the best solution for the country to get out of the crisis," he said.

Power Mall, the home appliances and electrical products department in The Mall shopping centres, posted growth of only 2-3 per cent in the first 11 months of this year, said Apichart Assavapokee, chief merchandising officer at The Mall Group.

The mall operator had expected Power Mall to post a sales increase of 5-7 per cent to Bt7.45 billion this year, but now it expects to miss the target.

"We have also set a flat target for Power Mall next year," he said.

The Mall Group will hold the Bangkok Electronica Fair from December 24 to January 6, featuring many innovations such as glass speakers, the world's thinnest LCD TV and a dinosaur interactive robot.

The event is expected to generate Bt450 million in sales.

GFK Marketing Services (Thailand) said the market for electrical appliances still showed a 10-per-cent pick-up in volume in the first 10 months of this year, but only a one-per-cent growth in value.

The market for electronic goods, including audio-visual products, electric home appliances, and IT products and mobile phones, is expected to reach about Bt200 billion this year.

Apichart said many appliances such as vacuum cleaners, microwave ovens and washing machines have become indispensable products for households. Many suppliers have launched attractive promotions such as 10 monthly instalments at zero interest. Today consumers are smarter and prefer products that promise good value for the money.

The Kasikorn Research Centre predicts demand for audio-visual products will grow only 2-3 per cent this year and for home appliances such as air-conditioners, refrigerators and washing machines 3-5 per cent.