While several Thai developers saw profits and presales fall during the property market slowdown, companies in the materials and furniture industries saw sales decline as well, local media reports. They are now looking to target overseas buyers and launch new products to increase sales moving forward.
Thai Gypsum Products Plc is one of the many Thailand-based manufacturing companies looking to make up for slowing Thai sales by exporting to international markets including its ASEAN neighbours. Half of the company’s sales come from 35 foreign markets including South Africa, Taiwan, China, Australia, and New Zealand.
“This year, our sales growth will be driven by foreign markets. We will stimulate sales in Asean countries like the Philippines, Myanmar and Cambodia,” says Thai Gypsum Products Managing Director Richard Juggery to the Bangkok Post.
Thai Gypsum Products’ sales missed targets in the 1st quarter and were down from the same period in 2016 as a declining number of new project launches saw demand for its products shrink. The company earned THB 3.4 billion last year.
“Some residential projects were launched but construction did not start, as developers still had inventory on their hands. The situation in the second half will recover as existing supply is likely taken up after demand slowed in the first half,” says Sahattaya Thongpreecha, the company’s Marketing Director.
Fibre cement maker Conwood Co Ltd is another company feeling the pinch. The company has released decorative fibre cement in a bid to push sales this year after earnings dropped during the opening months of 2017.
“Fibre cement grows in line with the property market. It generates 80 per cent of our sales per annum. Decorative fibre cement accounts for only 20 per cent, and we aim to boost the figure to 30 to 40 per cent in the next 3-5 years,” says Kitti Boonprakong, Conwood Chief Executive, to the newspaper.
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