The Thai real estate sector has been significantly affected by reduced consumer purchasing power in the first half of 2024, which has also impacted the electrical appliance sector. Panasonic Solutions (Thailand) Co Ltd, a division of the Japanese multinational electronics company Panasonic, has reported a decline in sales from developer customers by around 10-15%.
Key Takeaways
- The sluggish economy in Thailand has led to a downturn in the real estate sector.
- Sales from developer customers have dropped by 10-15% for Panasonic Solutions (Thailand).
- New residential sales in the first quarter of 2024 were down by 26.6% compared to the same period last year.
- Despite the downturn, the hospitality sector shows promise due to a rebound in tourism.
- Panasonic is conducting a Home Internet of Things (IoT) solutions project to improve home living environments.
Real Estate Sector Decline
According to the Real Estate Information Center, new residential sales amounted to 15,000 units worth 90 billion baht in the first quarter of 2024, a decrease of 26.6% compared to the same period last year. This decline has had a ripple effect on related industries, including the electrical appliance sector.
Pongwut Sangprasert, director of the B2B sales division at Panasonic Solutions (Thailand), noted that the sluggish economy has impacted the division’s performance. Sales from developer customers have dropped by around 10-15%, reflecting the broader economic challenges.
Opportunities in the Hospitality Sector
Despite the challenges in the real estate sector, Panasonic sees promising opportunities in the hospitality sector. The rebound in tourism has led hotel operators to renovate their properties, creating demand for electrical appliances. Currently, real estate customers account for 40% of Panasonic’s B2B revenue, followed by commercial building customers at 20%, and hospitality customers at 10%.
Home IoT Solutions Project
Panasonic is also focusing on innovation through its Home Internet of Things (IoT) solutions project, called "Comfortable Environment." This project, conducted in collaboration with the Faculty of Architecture at Chulalongkorn University, aims to find the perfect home living environment by balancing the settings of home electrical appliances and human comfort.
Preliminary testing suggests that a "Comfortable Environment" for Thais would be a room with a temperature of 26.3 degrees Celsius and an airflow of 0.2 meters per second. Funded by Japan’s New Energy and Industrial Technology Development Organization, the project will start pilot testing in 12 homes built by three developers. The testing is expected to conclude by the third quarter of 2025, with plans to launch an IoT business solution based on the test results by the end of 2025.
Future Growth Prospects
Despite the current challenges, Panasonic expects its B2B business to achieve 5-10% growth this year, accounting for 60% of the company’s total revenue. The company also aims to increase the proportion of its B2B revenue to 70% of total revenue within the next five years.
Sources
- Bangkok Post – Real estate woes hit electrical appliances, Bangkok Post.
