Sales of Panasonic air conditioners in the 2016 fiscal year ending March 31, 2017, are expected to grow by 43% to 4.8 billion baht, five times ahead of industry growth.
Takeshi Nomoto, chief executive of Panasonic Group in Thailand and managing director of Panasonic A.P. Sales Thailand Co, said its air conditioner business has had impressive sales growth for two straight years, driving its market share to 18% last year from 13% the year before.
Dai Nishi, general manager for marketing of Panasonic A.P. Sales Thailand, attributed the sharp sales growth to the extension of product lines and marketing strategies for each sales channel.
Air conditioners will continue to be a priority product for Panasonic during 2017-20, said Mr Nishi. The group aims to double total product sales in Thailand to 24 billion baht by 2020. Of the projection, about 35% will come from air conditioners.
"With the hot weather in Thailand and the high purchasing power of middle- to high-income consumers coupled with the energy-saving trend, air conditioners have become necessary home appliances in Thai households," Mr Nomoto said.
The growing market momentum is projected to help drive sales of Panasonic air conditioners in fiscal year 2017, ending March 31, 2018, to grow by 20% from 4.8 billion baht forecast for this year. The air conditioner industry is projected to rise 10% for that period.
Apart from new product launches, the company will spend about 500 million baht to promote its air conditioners this year. It hired Natapohn "Taew" Taemeeruk, a famous actress, and Naphat "Nine" Siangsomboon, a famous actor, to become its new presenters to promote new Panasonic inverter air conditioners.
Thailand's home appliance market worth 65 billion baht is expected to grow by 5% this year. The air conditioner market is anticipated to expand 10%, with sales of 1.5 million air conditioners, valued at 26.8 billion baht.
Panasonic is ranked No.4 in the Thai market for air conditioners. The company expects its market share this fiscal year will rise to 20%, or about 350,000 units sold.
Total sales of Panasonic products grow 10% on average per year. Its air conditioner sales grew by 49% in the 2015 fiscal year, ending March 31, 2016.
Panasonic A.P. Sales Thailand will tap into the premium air conditioner segment with the launch of the Panasonic Sky Series and Aero Series.
A Panasonic study of consumer behaviour found most consumers are looking for energy-saving air conditioners, in particular the inverter model.