LG Electronics (Thailand) Co Ltd is setting its sights on expanding its presence in the business-to-business (B2B) market as it anticipates that segment to outpace the consumer market in the coming years. The company’s head of marketing, Amnaj Singhachan, revealed that LG Electronics (Thailand) is aiming for sales of 16 billion baht this year, representing a 7% increase from the previous year.
Amnaj highlighted the growth potential of the B2B market in Thailand, pointing to the country’s economic recovery and the post-pandemic rebound as driving forces behind the strong demand in sectors such as offices and hotels. He emphasized that there is still ample room for growth in the information display and air conditioner market, areas in which LG Electronics (Thailand) intends to capitalize on.
With an eye on the upcoming year-end tourism season, Amnaj noted that a potential tourism boom could lead to hotel operators opting for property renovations. This, in turn, could present opportunities for the company to further expand its presence in the market. LG Electronics (Thailand) is strategically positioning itself to cater to the needs of businesses in various sectors as they look to adapt and thrive in a post-pandemic landscape.
The distribution strategy of LG Electronics (Thailand) encompasses three key channels: business-to-consumer (B2C) through dealers and sub-dealers, business-to-business (B2B), and direct-to-customer (D2C) via online e-commerce platforms. While the B2C channel currently accounts for 80% of the company’s sales, B2B and D2C each contribute 10% to the overall revenue.
Amnaj outlined the company’s goal to rebalance its sales distribution, aiming to increase the proportions of B2B and D2C to 15% each while reducing the B2C share to 70%. Looking ahead, LG Electronics (Thailand) envisions a future where B2C sales constitute 50% of overall revenue, with B2B and D2C making up 20% and 30%, respectively. This strategic shift reflects the company’s commitment to diversifying its revenue streams and tapping into new growth opportunities.
Despite the focus on expanding its B2B segment, LG Electronics (Thailand) remains committed to maintaining its partnerships with B2C dealers. The company is also aligning its vision with becoming a “Smart Life Solutions Company,” aiming to enhance the customer experience across various environments, including homes, commercial spaces, mobility, and virtual realms. This transformation is in line with LG Electronics (Thailand)’s Future Vision 2030, which emphasizes innovation and connectivity beyond traditional home appliances.
In response to the recent flooding in Chiang Rai province, Amnaj acknowledged that around 10 of the company’s local dealers were directly impacted. LG Electronics (Thailand) is considering launching relief initiatives, such as a not-for-profit repair service for damaged electrical appliances and marketing campaigns offering extended installment plans for new appliance purchases. The company remains committed to supporting its partners and customers during challenging times while maintaining its focus on long-term growth and sustainability.
As LG Electronics (Thailand) continues to navigate the evolving business landscape, it remains steadfast in its commitment to innovation, customer-centric solutions, and strategic partnerships. By capitalizing on the growth opportunities presented by the B2B market and embracing a vision of connectivity and smart solutions, the company is poised to drive sustainable growth and deliver value to its stakeholders in the years to come.