The market for small electrical appliances is expected to post modest growth this year, according to Thai City Electric Co Ltd (TCE), the manufacturer and distributor of Sharp home appliances.
The sluggish economy was the main factor affecting the growth rate of small electrical appliances last year, which includes electric fans, rice cookers and irons. This trend is expected to persist this year, said Wiroj Tanatchasai, chief executive of TCE.
Weak purchasing power, caused by a gloomy economy and high household debt, poses a challenge to this sector, he said.
Mr Wiroj said the increasing presence of Chinese brands across all segments, with some rice cookers being offered at a 50% discount, has a limited impact.
"We do not compete directly with Chinese brands," he said.
"We focus on showcasing the quality of our products."
Regarding the rising trade tension between the US and China, Mr Wiroj said a potential influx of Chinese goods into Thailand could lead to significant price reductions.
Businesses remain cautious about which industries or sectors might be affected by this next wave of Chinese goods, he said.
Mr Wiroj said he is optimistic Sharp can mitigate the risk by focusing on product quality.
He said TCE gained minor benefits from the government's "Easy E-Receipt" tax deduction scheme, which seems to favour the large electrical appliances.
Mr Wiroj said additional economic stimulus measures could further boost the market.
TCE has a wide range of customers, spanning all age groups, he said. The company continues to develop new product designs to appeal to younger consumers, said Mr Wiroj.
This year TCE plans to invest 60 million baht in marketing campaigns, he said.
The company set a sales growth target of 5% this year, driven by new product launches of electric fans, rice cookers and air fryers.
In the first quarter, Mr Wiroj said TCE introduced new products designed to appeal to younger, style-conscious consumers who love home decor, comprising fans, rice cookers, air fryers, steam irons and water heaters.
