LG Bets on Thailand Appliance Growth as Heat and AI Drive Demand

LG Electronics projects Thailand's major appliance market will reach 80 billion baht in 2025, supported by extended hot weather, demand for larger products, and AI technology, though consumer purchasing power remains under pressure. The company achieved first-half sales of 8 billion baht, up nearly 10 percent, and is on track for its full-year target of 18 billion baht with 10 percent growth.

On August 13, Amnuay Singchan, head of marketing at LG Electronics Thailand, said that while consumer purchasing power remains a concern, the appliance market still has growth potential because these are essential goods. Consumer buying behavior has shifted, with more research and price-comparison done online, and consumers are willing to pay extra for higher quality, technology, and better user experience rather than simply seeking the cheapest option.

LG estimates Thailand's 2025 major appliance market breakdown as follows: air conditioners at 24 billion baht, televisions at 19 billion baht, refrigerators at 16 billion baht, and washing machines at 15.8 billion baht. These four segments together form the core of the major appliance market.

Amenuay noted that a key positive factor this year is weather conditions, particularly extended hot spells that persist even into the rainy season with high temperatures and alternating rain and heat. This has sustained strong demand for air conditioners and cooling products, showing better growth than last year when prolonged heat was less consistent.

Beyond weather, another market driver is consumer demand for products with more technology, particularly in TVs, refrigerators, and washing machines. Premium product segments grew about 30 percent in the first half, reflecting that some consumers still have purchasing power and are willing to pay for convenience, quality, and technology.

However, purchasing power that has not fully recovered remains a concern, causing consumers to spend more time researching before deciding. High costs of electronic components and chips could pressure manufacturers' costs. LG has planned supply chain management in advance to control costs and inventory while trying to maintain price levels so consumers can more easily afford its products.

In the first half of 2025, LG Thailand achieved sales of approximately 8 billion baht, growing nearly 10 percent year-on-year, with a full-year target of 18 billion baht, or about 10 percent growth. The company views first-half performance as on plan and has opportunities to reach its targets.

The B2B business grew about 12 percent, especially commercial HVAC systems and commercial information displays. The LG Subscription service more than doubled its user base from the same period last year, reflecting positive response to ownership models and long-term service care. For the second half, the company will pursue its "LG Make It Yours. Make It Easy" vision to simplify daily life and give consumers more autonomy, transitioning from an appliance retailer to a Smart Life Solution Company that brings technology to reduce burden on customers.