Haier sees 50% growth despite floods

"The company is focusing on branding as a key strategy for this year - with Bt100 million for building awareness and loyalty among Thai consumers," Wu Yong, managing director of Haier Electrical Appliances (Thailand) said yesterday.

This marketing budget is its largest since Haier started business here. It was drawn up to promote its flagship products including refrigerators and washing machines.

Yong added that consistency in new product launching was another key strategy. For example, throughout this year, the company plans to introduce at least ten new products and other ten next year.

Meanwhile the company sees strong growth in the local market during the first three-quarters of this year, and it expects to enjoy a 30 per cent surge to Bt1billion in revenue during that period - ending up with a 50 per cent rise to Bt1.5 billion by the year's end.

Of this income, 40 per cent will come from refrigerators, 30 per cent from air conditioners, 20 per cent from washing machines and the rest from freezers. In total sales, 80 per cent is expected to be sold in up-country provinces and the remainder in Bangkok.

Though many provinces from the North to the Central regions have been affected by floods, the company believes this prolonged natural disaster will not directly impact on Haier's business this year.

With the rise of domestic demand, especially in washing machines, the company is studying and conducting feasibility of further investment in production line expansion for this segment in the next couple of years, to increase its current production capacity from 150,000 to 200,000 a year.

Haier Thailand has its manufacturing base at Kabinburi district in Prachin Buri for both domestic consumption and export to Australia, the Middle East and Southeast Asia countries.

Yong said exports are estimated to be worth about Bt6 billion a year, contributing to about 5 per cent of total sales of the Haier Group.