Sompet Holds Prices Firm Despite Rising Costs
Sompet will hold prices steady despite rising production costs, instead trimming promotional spending to maintain margins and protect consumers in Thailand's competitive 25-billion-baht laundry market.
Sompet has no plans to raise product prices despite increased production costs, aiming to protect consumers. Deputy Managing Director Ms. Chailada Tantiwechakul of Sompet Pibul Company Limited stated that the company will maintain its current pricing structure as long as possible while slightly reducing promotional budgets to sustain operations.
"Business operators currently face challenges from rising costs across all areas—raw materials, production, and transportation—particularly from oil prices that directly impact shipping expenses," she said. "Although costs have increased, we maintain the same selling price by reducing operational expenses to preserve our profit margins."
Thanasakdi Praorapawom, Product Manager for Laundry Products at Lion (Thailand) Company Limited, a Sompet subsidiary, noted that production costs are under pressure from global economic volatility and oil price fluctuations, which are critical raw materials for the laundry product industry. However, the company focuses on efficient cost management by improving factory operations to boost production efficiency, refusing to pass costs onto consumers.
The company upholds its 50-year-old brand foundation of quality, honesty, and fair pricing. The Thai laundry product market is highly competitive with a market value of 25 billion baht, but the company maintains approximately 10% market share. "Despite intense competition from domestic and foreign players and production cost pressures from oil price volatility, we drive business growth through innovation that differentiates us from price-based competition," he added.
