The Thai electrical appliance industry is forecast to grow by 6% this year, lower than its 9% growth last year, as many negative factors are persuading people to delay their spending.
Jakkrit Keeratichokchaikun, senior vice-president and chief merchandising officer of Power Mall, said demand for electrical appliances has been slowing since early this year as many people have allocated their budgets to buy cars under the government's first-time car buyer scheme.
Moreover, the continuing popularity of smartphones has caused a huge drop in demand for personal computers.
Unclear details about the country's digital TV transition made some people delay TV purchases, with sales recording 20% negative growth in the first five months of this year.
The overall appliance sector is expected to grow by 6% in the first half, while whole-year sales growth will also be about 6%.
Last year's 9% growth reflected purchases to replace appliances damaged by the floods in late 2011.
"Sales at Power Mall in the first five months grew by 4-5%, due mainly to the delay in TV purchases," Mr Jakkrit said.
He believes poor stock market sentiment is making some investors suspend extra spending on appliances.
Power Mall expects to grow its sales by 6% to 10.2 billion baht by the end of this year. To achieve its goal, the company will work more closely with electrical suppliers to launch products to suit customer demand.
"The price war is very fierce so far, but speed and timing for product launches are important to spur consumer spending," Mr Jakkrit said.
The Power Mall Electronica Showcase is another marketing tool for Power Mall to boost its sales in the second half.
The company has allocated about 65 million baht to arrange the 12-day fair from tomorrow until July 7 at Royal Paragon Hall.
More than 200 brands of electrical appliances and information technology will be on display, while Sony, Panasonic and Samsung will showcase more than 40 TV models that can be used with digital TV.
Power Mall has also joined with banks to offer discounts of up to 36%, the highest it has offered in seven years, to spur demand at the event.
The company expects sales worth 370 million baht to be generated by the Bangkok fair.
About the author
- Writer: Pitsinee Jitpleecheep
Position: Business Reporter