TOSHIBA Thailand yesterday announced ambitious growth targets, setting its sights on becoming the third-biggest producer in the country’s electrical appliance market within three years.
As part of this sales push, the company – now ranked fifth in the Thai market - plans to release 34 products in the second half of this year. It would post double-digit growth every year over the period, the company said.
Toshiro Ishiwatari, chairman of Toshiba Lifestyle Products and Services Corporation (TLSC) in Japan, said that Toshiba “never stops innovating new products with Japanese design and manufacturing standards” in order to meet consumers’ need.
“The company pays a great deal of attention to the improvement of the life quality and lifestyles of consumers,” Ishiwatari said. “With the synergies of TLSC and Midea, we place great emphasis on creating products that meet the demands of the global market in expanding our product lines.”
Ishiwatari confirmed TLSC’s intention to invest in Thailand in terms of manufacturing base, product development, sales and marketing, and that Toshiba will “continue to grow sustainably and move forward together” with the Thai people.
“We place great emphasis on developing good products with Japanese quality, with great consideration to consumers’ demand and lifestyles, in order to bring good things to the lives of Thai people, as stated in our marketing slogan,” he said.
Brian Zhao, president of Toshiba Thailand Co Ltd, said the Thai economy been undergoing a recovery this year, citing the targeted expansion of 4.1 per cent. This would mark the highest economic growth since 2012. Zhao expects the economy to add to this momentum.
For the first quarter of 2018, sales of electrical home appliances were steady at a 0.2 per cent growth rate, due to weather conditions that impacted sales of air conditioners. This segment saw a 9 per cent drop in sales.
However, sales of small home appliances grew 7 per cent, providing confidence for the future, Zhao said.
For the first quarter, overall Toshiba saw growth of more than 20 per cent compared with the same period in 2017. Toshiba introduced 32 new models in eight categories, with all of these coming from joint venture development between Toshiba and Midea, and these new products were the main source of Toshiba’s high growth.
For the second half of the year, Toshiba said it will continue to rely on the advantages from the synergies of three countries: Japanese quality products, Chinese speed in manufacturing and development, and Thai experience.
“With these advantages, Toshiba will launch the concept of ‘A New Chapter Beyond All Limits’ to reinforce the new age of Toshiba to move forward with no limits, by expecting to become top three provider of electrical appliances within three years, and to grow at a double-digit rate,” Zhao said.
“We plan to expand our business by introducing a new product line up, and in the second half of the year we will launch 34 more models in eight product categories.”
Hiroyuki Takase, general manager for electrical home appliances and audio visual, said that value of electrical home appliance market in Thailand increased by 0.2 per cent, according to data for the period from January to April.
“The largest proportion came from SDA (small domestic appliances), with 31 per cent, while the proportion from air conditioners was 32 per cent, refrigerators 19 per cent, and washing machine 18 per cent,” Takase said.
Sales of refrigerators and washing machines grew by 4 per cent, but those for air conditioners decreased 9 per cent. Sales of small home appliances grew up to 7.1 per cent, water heater 31 per cent, and microwave ovens 15 per cent over the period, Takase said.
For the first half of this year, Toshiba’s revenue increased more than 20 per cent as a result of the growth in sales of refrigerators, washing machines, microwaves, and water heaters, which reached 38 per cent, 35 per cent, 189 per cent, and 146 per cent, respectively.
Sales of air conditioners increased by just 1 per cent.
Among the 34 new products planned for the second half of the year, Toshiba are refrigerators, washing machines, rice cookers, blenders, AV items, and water heaters.