Häfele Targets 4.9 Billion Baht Revenue Growth, Navigating Slowing Real Estate Market with Innovation and Regional Expansion

Häfele Thailand is driving growth in a real estate market entering a new normal phase by launching over 100 new innovations and expanding its product portfolio across six categories to over 20,000 items, showcasing its Häfele lighting solutions at the Architect '69 event.

John Clare, Managing Director of Häfele (Thailand) Limited, revealed that the German home and building products leader aims to grow revenue to 4.9 billion baht in 2026, up from 4.5 billion baht the previous year. Despite Thailand's real estate market slowdown, Clare noted that the market has fundamentally shifted over the past 2-3 years. Large-scale developer projects have declined due to reduced purchasing power, rising construction costs, and economic uncertainty affected by geopolitical tensions. However, Häfele views this slowdown as structural change rather than contraction, with the luxury segment continuing to grow and high-potential customer groups maintaining demand.

The company sees new opportunities in the growing number of medium and small-scale projects—currently around 400-500 new projects entering the market, primarily residential developments. Regional markets present another growth driver, particularly Phuket, which is booming in luxury real estate and wellness projects, alongside Chonburi and Rayong, which benefit from industrial and investment sectors.

Häfele's growth strategy rests on three pillars: increasing revenue from new products and innovations, expanding to high-potential markets, and increasing market share from existing and new customers. The company continues developing innovations across six main product categories, with particular focus on electrical appliances and home systems—which represent large market segments with high revenue impact—while maintaining strength in hardware and fittings to secure existing revenue.

The company plans to expand beyond major cities through showroom openings, service centers, and partnerships with regional partners to increase customer accessibility. Simultaneously, Häfele is investing heavily in supply chain efficiency to manage inventory and meet dispersed demand, particularly given global supply chain volatility.

Key challenges remain rising costs, with raw material expenses increasing 30-40% and logistics costs up 15-20%, prompting many market competitors to raise prices. Despite this, Häfele continues efforts to maintain pricing as long as possible to reduce customer burden and protect competitiveness.