Beko bets on premium sales to meet 40% growth target in Thai market
Home appliance brand Beko is targeting 40% growth in Thailand this year and is doubling its marketing budget to raise brand awareness, said Arel Atakol, its regional director for Asia-Pacific, told a press conference on Thursday.
The growth target was made despite saturation in the global home appliance market, including in Thailand.
The company sees openings in the Thai market, following a consumer survey.
It found that consumers, for example, want products that are better for the environment or their overall health, Atakol said.
According to Beko's survey of Thai consumers, 70% of respondents said their main concern is a healthy lifestyle and 42% are willing to pay more for wellness and personal care. These preferences not only help sales of organic foods and beverages grow, they also help other product categories expand, Atakol said.
Beko's business model has never included a price strategy, he said. As a result, even though the prices of the products are quite high in comparison to other brands, Beko can maintain its sales volume due to its advanced technology and innovation, Atakol said.
Beko will spend 80% of its marketing budget on digital channels, he said.
It is aiming for a 200% increase in premium-segment sales and a 200% increase in online sales, aided by the power of social influencer marketing.
The promising growth expectation came as Beko's Thailand business expanded with the launch of HarvestFresh refrigerators resulting in 54% growth in 2020, followed by 35% growth the following year due to the successful launch of the AquaTech front-load washing machine.
Beko maintained its strong performance in 2022 with the introduction of the GoClean air conditioner and its first brand ambassador, fitness enthusiast and influencer Bebe Thanchanok.
Nattinee Techarungnirun, Asia-Pacific director of marketing and product management, said the company will launch its second campaign with Bebe this year as well as Beko's first regional Southeast Asia marketing campaign with the slogan, "Get closer to nature for a healthier life".
Beko Thailand is also celebrating its 8th anniversary this year with a campaign including a chance to win a trip to Austria and the Czech Republic for every 5,000 baht spent on any Beko product. The campaign will run from April 1 to June 30.
All these efforts are intended to make Thai consumers familiar with Beko's name, Nattinee said.
Pornchai Trakultechadej, director of domestic commercial, said Beko is known for its high-quality products. However, consumers who buy premium products expect detailed information, he said.
"We have to educate [consumers] about how Beko develops technological innovations for the good health of consumers," he said.
Thailand will always be a manufacturer for Beko, Atakol said.
Its facility in Rayong province manufactures refrigerators for export around the world.
As its current output represents only one-third of its total capacity, Atakol said there is a chance to expand production in Thailand.
Beko is the international home appliance brand of Arçelik, a multinational household appliance manufacturer with 12 brands and 45,000 employees worldwide. Beko is one of Europe's three largest home appliance brands.