Home appliance titan to launch 400 new products this year, CEO says
Arcelik-Hitachi Home Appliances will launch about 400 products this year, its CEO, Zafer Ustuner, told The Nation, stressing that Thailand is a major market and production hub for the European-Japanese joint venture formed in 2021.
Ustuner was upbeat about the company’s future, saying it is planning to expand sales and production in Thailand, which is its largest source of revenue due to the manufacturing it does here.
Less than two years since Istanbul-based Arcelik formed its 60:40 joint venture with Hitatchi Global Life Solutions, it is preparing to expand.
Thailand is key to this expansion as more than 50% of Hitachi-branded household appliances sold outside of Japan are made in Prachin Buri province’s Kabin Buri district.
China is also a growth market for the company, which has another manufacturing plant in the country.
Ustuner said the joint venture had benefitted both partners.
"Arcelik has a major footprint … across Europe, the Middle East, Africa, and Asia. We could easily say that Arcelik is present everywhere."
Hitachi’s focus has been Japan and the Asia Pacific region, which is the fastest growing market. The joint venture, which sells Hitachi products outside of Japan, allowed the partners to streamline their supply chains and combine research and development and sales to expand their impact and reach.
Ustuner described Thailand as risk-free for investors. "Thailand is a reliable country, thus there is no risk for investing,” he said, adding that he had been personally committed to Thailand since he visited the country in 2016.
Ustuner said the company plans to add more staff, but declined to provide figures.
"We can enhance our current staff or hire more talented people since great things can only be accomplished with excellent people," he said.
Arcelik collaborates closely with Hitachi on research and development. They devote the majority of their time to improving product quality and product testing before selling products to customers, Ustuner said.
The company plans to launch at least 400 new items globally, with a concentration on
Thailand and China for revenue, profit, and market share growth.
Thailand is the largest revenue contributor and China the second because the company has factories in both countries.
Local adaptation
Each market has its own demands for products based on environment, humidity, regulations, local needs, and consumers’ expectations, Ustuner said.
Demand for high efficiency air conditioners, for example, rises in Thailand for its hot season, but sells more washing machines – in both Thailand and China – during the rainy season, which runs from June to October.
Mobile control
Arcelik-Hitachi is creating its "HomeWhiz" application, which connects and controls all home devices via a mobile phone.
"A connected device is essential. We must generate new value not just in the mechanical but also in the software. We are working on it and will be introducing more smart home products in the future," Ustuner said.
Luxury refrigerators will soon include cameras, he added, explaining: "There will be a camera recognising the products within the fridge, providing you with the information about the food inside, the freshness, and what you need to buy more of at the grocery without even opening the fridge. It saves energy and makes people's lives easier."
Post-pandemic pause
“After the pandemic, many countries opened their borders. People started spending more time and money outside, but globally people appreciated home appliances more than before," Ustuner said.
However, this year might not be the best for the global economy as people are concerned about a recession. Consequently, the company will test new ideas and strengthen the quality of its products this year, he added, saying the company expects growth to accelerate next year.
Sustainability
Ustuner said sustainability is essential when developing any technology. The company's goal is to manufacture the most energy-efficient appliances possible. It uses expensive components to ensure appliances use less energy and last longer.
"When we introduce our products to customers, sustainability is not something that people ask for, but it is the producers' responsibility," Ustuner said.
More competitors and suppliers should follow the company’s lead and governments should use enforceable regulations to ensure home appliances reduce global warming, he added.
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