Haier lays plan to become top-3 player in Thailand
Celebrating its first decade in Thailand, Haier, a leading Chinese electrical-appliance manufacturer, has set out to be a top-three player in this competitive field within the next five years.
To cash in on the coming Asean Economic Community (AEC), the company is spreading its manufacturing facilities around Southeast Asia, including Thailand, Indonesia and Vietnam, enabling it to tailor its products to meet the tastes and requirements of local consumers.
In Thailand, Haier’s plant in Kabin Buri, Prachin Buri province, manufactures more than a million refrigerators per year. It will increase annual the production capacity of washing machines from 150,000 units to between 250,000 and 300,000. Haier took over the plant from Sanyo Electric in 2007.
Wu Yong, managing director of Haier Electrical Appliances (Thailand), said the company achieved more than Bt800 million in sales for the first five months of this year. It expects overall sales to exceed Bt1.6 billion for the full year, up 30 per cent over 2011.
"Our growth strategy is to be in the top three in the local electrical-appliance market within five years. To achieve such a position, we need to increase the market share of our refrigerator products from 10 per cent currently to about 18 per cent. The market shares of our air-conditioners and washing machines also need to be increased from 5 per cent each to 18 per cent and 20 per cent respectively," he said.
The company will focus on product design, quality and service as key factors driving sales.
"We will invest about Bt250 million this year in developing new product models. More than 30 new models of our flagship products, including refrigerators, air-conditioners and washing machines, will be launched this year," Wu said.
Demand for electrical appliances in Thailand is expected nearly to double this year.
Because of the slowing markets in Europe and the United States, Yong said, Southeast Asia will have more potential for this industry, Haier believes.
"We are preparing ourselves for the AEC by setting up plants in various strategic markets within Asean, including Thailand, Indonesia and Vietnam. We also have sales and distribution operations in this promising region, in Thailand, Indonesia, Vietnam, the Philippines and Malaysia," he said.
"The company has also set up two research and development centres in Japan, which will be in charge of developing innovative products for Asia," he said.
