ELECTRICAL GOODS
The local distributor of Sharp home appliances will raise the prices of its rice cookers by 3-5% on June 1 due to higher production costs.
Sharp would be the first brand to increase rice cooker prices, said Virathep Chatsirivijaikue, the assistant managing director of Thai City Electric Co.
''We decided to adjust rice cooker prices because our production costs have risen almost 100%. Moreover, we haven't increased prices for more than five years because of heavy market competition,'' he said.
Thai City Electric has been using a low-pricing strategy to stimulate spending, but with production costs climbing, the company has been forced to sell some home appliances at loss.
''The price increase will make us lose some sales opportunities if our competitors don't do the same. But we don't want to be in red. At the moment, the more we sell, the more we lose,'' Mr Virathep said.
The Sharp distributor was optimistic that other brands would raise their prices soon as they also have faced higher operating costs.
Thai City Electric aims to increase its overall sales revenue by 10% to 2.8 billion baht this year. Of the total, 40% would come from rice cookers, 20% from kettles, 15% from water heaters, 10% each from blenders and irons and 5% from other appliances.
Mr Virathep said the company would expand its rice cooker line to include super-size models for restaurants and schools as the market is less competitive.
''This year, there were many negative factors affecting consumer spending. As a producer, we have to be very careful and keep revitalising the market,'' he added.
Thai City Electric would spend 100 million baht on marketing and promotions to stimulate sales this year. At the same time, it aims to maintain or increase market share for every Sharp product.
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