Chau, second from left, joins hands with his Thai partners: Suchat Teunchit, left, CEO of Tiga Co; Puttachart Rangkasiri, second from right, director of TWZ Corp; and Aron Tangtungsak, right, Makaranan Co.

The new venture is part of Haier's effort to shake up the competition in Thailand's Bt100-billion consumer electronics market.

TWZ, a local distributor of telecommunications devices, owns 51 per cent of the joint venture, Haier Group (Asia) owns 20 per cent, Makaranan 19 per cent, and Tiga 10 per cent. The new company has registered capital of Bt20 million.

Tiga manages copyrights for popular Japanese cartoon characters such as Ultraman, Hamtaro, Kamen Rider, and Full Metal Alchemist. These characters may be incorporated into the company's products, according to Sittichai Rujipasakul, Tiga's managing director.

Makaranan is a local investment holding company.

In 2002, Haier set up its first joint venture in Thailand, Haier Electrical Appliances (Thailand) Co Ltd, in partnership with publicly traded Distar Electric Corp Plc, which makes home appliances.

The company has established a clear-cut division of responsibilities between its two Thai joint ventures.

Haier Business (Thailand) Co Ltd will handle the distribution of Haier products in Thailand as well as any co-promotional campaigns with local retailers such as Tesco Lotus, Power Mall, Power Buy, chain stores at IT City and Mr IT.

Haier Electrical Appliances (Thailand) Co Ltd will handle advertising and may start manufacturing in the future.

James L N Chau, Haier Group (Asia)'s managing director, said his company was responsible for distributing and selling Haier products throughout Asia.

"We are certain that Haier Business (Thailand) will be very successful because our partners are experienced and have good knowledge about the Thai market. Also, our formula for success in other countries can be shared and modified to help ensure our success in this market," he said.

Haier recorded sales of US$12.8 billion (Bt482 billion) last year, of which the Chinese market accounted for 70 per cent. Twenty per cent came from Europe and the US and 10 per cent from other Asian countries.

"Thailand is the fourth country in which we have expanded our presence in Asia, following Hong Kong, Vietnam and Singapore," Chau said. "Next, we will enter other markets, including Indonesia, the Philippines and Dubai. All will be through joint ventures with local partners who have valuable experience in the market."

He said Haier's aggressive expansion in Asia was expected to boost Asian sales (outside of China) to 30 per cent of sales by next year.

Puttachart Rangkasiri, TWZ's managing director, said his company's financial strength and experience in both retail and wholesale markets would help the new firm compete. He said there domestic electrical appliance market still has room for more competitors because consumers want a more choices and now have a greater acceptance of Asian brands.

"We decided to link up with Haier because they are a Chinese brand that has entered the international market with strength in research and development and it manufactures high-quality products at competitive prices," he said.

Kwanchai Rungfapaisarn

The Nation