Thai Stainless Steel Co, the maker of Seagull utensils and kitchenware, is diversifying its product portfolio to become a total kitchen solutions provider to boost long-term sales.
Chief executive Aroon Ruengcharungpong said demand for utensils and kitchenware products had grown only slightly in the past two years due to the slow economy.
Consumers do not need to buy utensils and kitchenware every day, so sales are affected when farm product prices are low due to drought.
The company has started selling ovens and toasters and will soon sell gas stoves as well as all kinds of kitchen furniture such as cabinets and cooker hoods.
It has sold Khrome by Seagull kitchen furniture for several years via the business-to-business channel to build its brand awareness, and it will now try to expand sales to consumers.
Thai Stainless Steel aims to increase its sales by 30% to reach 2 billion baht over the next five years.
In the short term, the company will reduce its logistics and production costs. To increase efficiency and address a labour shortage, the company will increase the use of automatic machines at its Prachin Buri factory from 15% to 50% over the next five years.
Due to the slowdown in purchasing power, the company has slashed its investment budget to 30 million baht for small projects this year.
It will revise its product assortment in department stores in a drive to improve sales and exploit new opportunities from online channels.
The company is talking with CP All Group to sell Seagull products via 7-Eleven's online channel. Its products will be available via its own website and TV home shopping by the end of this year.
Mr Aroon said sales of Seagull in 2015 increased 5% from 2014 to 1.2 billion baht. About 75% came from domestic sales and the rest from abroad.
Of foreign sales, about 30% came from Malaysia, 20% each from the US and Myanmar and the remaining 30% from others.
Mr Aroon said the company had joined hands with Nouthong Trading Import Export, the distributor of Seagull in Laos, to open the first Seagull shop in Laos.
The move is part of a strategy to use Laos as a springboard to penetrate central Vietnam.