Mahajak Development, an importer and distributor of Mitsubishi air-conditioners and Denon and JBL audio systems, expects a 15-per-cent fall in sales this year to Bt1.6 billion, due to political tensions and the economic slow-down.

Of the company's total sales, 65 per cent is expected to come from air-conditioners and the rest from audio systems, said marketing director Patchrawadee Wongprecha.

Air-conditioner sales have fallen 15 per cent so far, with the extended rainy season having added to the other problems.

She said low-end to middle-market consumers of audio systems had decreased their purchases by  5 per  cent. This group is usually unconcerned about sound quality and remains content with existing equipment. Those in the high end of the market, however, always seek out new models.

Patchrawadee said new digital products like iPods had also been a big factor in the audio market.

Mahajak has adjusted its strategy by selling products that are compatible with digital technology, such as stereos that link with digital products and are able to record up to 10,000 songs.

She said aggressive competition from Chinese products, such as selling audio systems with plasma television sets in the package at very low prices, was another factor.

Nevertheless, while these factors have influenced the low end to middle market, the high-end sector has recorded healthy growth of 15-20 per cent. This has been due mainly to the completion of many new housing projects.

Kittisak Kanchanachayphoom, general manager for consumer and deejay products, believes the sector has a bright future next year, because many new hotels, resorts and housing projects continue to emerge.

Patchrawadee said the company currently had no immediate plans for joint marketing activities with other brands, although it was looking to make such an arrangement, preferably with an IT or fashion label.

Otherwise, it will continue to market its products aggressively under a lifestyle theme. It will also conduct product demonstrations in all dealers' shops round the country.

Patchrawadee is also considering a direct marketing campaign involving current customers, such as inviting them to join planned activities, giving them special discounts or issuing privilege cards.

The company usually allocates 5 per cent of sales for its marketing budget, and she expects total sales next year to reach Bt1.9 billion.

Meanwhile, Mahajak plans to begin importing Chord brand audio systems from the UK. The first products will be available in its showrooms in next year's second quarter. Kittisak said the Chord equipment would be the most expensive in Mahajak's portfolio, with prices per set ranging from Bt100,000 to Bt1 million.

Nitida Asawanipont

The Nation