LG Electronics unit looks to B2B prospects

Market set to outpace consumer segment

LG Electronics (Thailand) Co Ltd will focus more on the business-to-business (B2B) market, whose growth is expected to outpace the consumer market.

Amnaj Singhachan, head of marketing at LG Electronics (Thailand), said the company views the B2B market as having high growth potential due to the country’s economic recovery coupled with the post-pandemic recovery, which has led to strong demand in the B2B sector in areas such as offices and hotels.

The company believes there is still room for growth in the information display and air conditioner market, he said.

“We will closely monitor the year-end tourism season. If the country’s tourism booms this year, the hotel operators might opt for property renovation, which could open the door of opportunity to the company in the year to come,” said Mr Amnaj.

He said the company’s products are being distributed through three channels: business-to-consumer (B2C) through its dealers and sub-dealers, business-to-business (B2B), and direct-to-customer (D2C) via online e-commerce platforms such as Shopee, Lazada, NocNoc, or LG’s website.

The B2C channel accounts for 80% of the company’s sales, while B2B and D2C each account for 10% of overall sales.

Mr Amnaj said the company aims to increase the proportion of B2B and D2C to account for around 15% each, while reducing the proportion of B2C down to 70% next year.

“In five years, the company aims to reduce its B2C channel to account for 50% of overall sales, and increase B2B sales to 20% and D2C sales to 30%,” he said.

Mr Amnaj said even though the company is focusing more on the B2B segment, it will maintain its partnerships with B2C dealers.

Moreover, the company also aspires to transform into a “Smart Life Solutions Company” that can connect and expand the customer experience across various spaces, including home, commercial, mobility and virtual.

This goal is in line with its Future Vision 2030 to showcase its innovative efforts beyond the home appliance space, he said.

Regarding the flooding in Chiang Rai province, Mr Amnaj said the situation has directly affected around 10 of its 30 local dealers.

In the aftermath, the company is considering launching a relief scheme, such as a not-for-profit repair service for damaged electrical appliances and marketing campaigns with longer instalment plans for new appliance purchases.

The company is targeting sales of 16 billion baht this year, up 7% from the previous year, he said.

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