DAIKIN Airconditioning Philippines is targeting a double-digit growth in sales this year, on the back of more robust sales on the residential sector’s demand for smaller-capacity cooling systems.
Ryuta Hayashibara, Sales Division head in the firm’s Philippine unit, disclosed the plan to have a bigger presence in the small-capacity cooling system segment as the window-type air conditioners, considered to be the cheaper and energy-inefficient choice of consumers, continue to dominate the market.
Daikin produces split-type inverter-technology air conditioners which are the more expensive choice in the market but compensates for the energy efficiency, a significant factor considering the rising electricity costs in the Philippines.
“There are more than 400,000 window-type air conditioners sold every year. More than half of these window-type are small-capacity and we intend to penetrate this market; we’re targeting the residential market,” Hayashibara said in an interview on Thursday, an offering of the company in the commercial segment.
“There’s no advantage for the consumer with window-type; it’s not efficient and there’s poor distribution of air,” added Hayashibara, in highlighting the advantages of split-type air conditioners.
Hayashibara said that to achieve their targeted 33-percent growth this year, which would translate to P2 billion in sales, their .5- and .75-horsepower inverter, split-type air conditioners will be introduced in April.
The company estimates its gross sales to reach P1.5 billion this fiscal year, which ends in March for Daikin, reflecting a 170-percent growth from the previous fiscal year.
The executive is confident that reception of the new products will be positive, banking on the increasing purchasing power of consumers, plus the fact that customers can recoup their initial investment in a unit, in less than a year.
Sales Operation Manager for Daikin Jed O. Caburian said that, while Daikin’s products are more expensive than other brands in the market, electricity savings every month will compensate for the price.
An average window-type is priced at P18,000, while a split-type noninverter of Daikin can range from P28,000 to P33,000.
However, for the small-capacity units, branded as the D-Smart line, to be introduced this year, Hayashibara estimates the price range to be from P26,000 to P 28,000.
Daikin has a 30-percent share in the commercial market for cooling system and offers both inverter and noninverter technology in their split-type units.
Caburion has noted before their aspiration to become No. 1 in the over-all market from their current ranking of four. The firm credits its robust growth principally to the business-processing outsourcing sector, as well as hotels, and hospitals that use electricity around the clock.
Catherine N. Pillas