Lee Vanich Co., Ltd. revises its industry strategy to launch its Thai brand Hi-Kool window film in the ASEAN markets, targeting the CLMV countries which have a growth rate of over 6% a year. It has successfully established a foothold in Vietnam to market the Hi-Kool products after realizing the high potential of continuing economic growth in this region where people have more income and like to use Thai band products. It also intends to subsequently enter Laos, Myanmar and Cambodia and aims to be number one in the sales of window films in this region within 5 years. The sale to Vietnam has reached Bht. 20 million in just 6 months. Hi-Kool also has been able to maintain its leadership in Thailand capturing a market share of 35% by volume and expects its sales in 2018 to meet the target of 650 million. For the year 2019, it anticipates a growth of 17%.
Mr. Chalok Vanichakornphongs, Managing Director, said that Lee Vanich Co., Ltd. has been marketing the Hi-Kool window film for both automobile and residential installations for over 35 years in Thailand and, thus has become an expert in this field. Hi-Kool films are produced by customized orders by the best convertors in America that use the latest technology known as ‘sputter-coated metalizing’ in accordance with the specifications provided, he said. He said Hi-Kool film has been very popular in Thailand because it is most suitable for the weather condition in Thailand, rejecting heat up to 84%, and UV 99% that causes skin cancer, blemish or spots. Hi-Kool film is the most popular brand and has a market share of 35%, a warranty period of 7 years, he further said.
Mr. Chalok revealed that his company has come up with a revised strategy to bring Hi-Kool film to enter the markets in the ASEAN countries by targeting the CLMV countries first which have the annual growth rate of no less than 6%. People of these CLMV countries love to use Thai brand products. He said that Vietnam has become the first country in which Hi-Kool was successfully and officially represented as its automobile industry has the high potential in growth and its people has more income to buy private cars. He further said that in 2019 Vietnam will manufacture its own national cars, the same as Proton produced by Malaysia, which is a good sign of growth in the country. The first 10 months of 2017, the overall sales of all type of automobiles in Vietnam grew by 5% of which sedans represent a growth of 22% (147,422 cars) which has already overtaken the total sales in 2016, he explained.
“ We have a plan to fully market the Hi-Kool products in the CLMV countries in 3-5 years with a sales target of Bht.100-150 million. A business development team has been set up to take care of this project. We have successfully launched our full marketing campaign in Vietnam and Hi-Kool films have been very well accepted by the local consumers. Local consumers like to use Thai brand products. In the last 6 months, we have a sale value of Bht. 20 million. Although this figure is not much, but we can see the potential that Hi-Kool films which is a Thai brand can be expanded to this region. We have set our goal to be number one in market share in the ASEAN region within 5 years”, Mr. Chalok elaborated.
Mr. Chalok further said that in the first two years, Lee Vanich will emphasize the building of the Hi-Kool brand in the Vietnam, Laos, Myanmar and Cambodia before moving the campaign to the Philippines and Indonesia. The most important thing in our strategy is we have to find the right local partner who must have the real intention and capability and potential to cooperate with us in marketing our products, Mr. Chalok said. Mr. Chalok thanks the Department of International Trade Promotion of the Thai Commerce Ministry that give guidance and assistance in conducting the market survey and business matching in promoting the sales of the Thai brand Hi-Kool products abroad.
“For the Thai market, in 2018 Hi-Kool has still been able to maintain its position as number one market share of 35% in terms of the volume or number of cars that installed Hi-Kool films with a growth rate of 12-15%. In 2018 there are about 980,000 new cars sold and installed with films, representing 12% increase and about 800,000 old cars (6-7 years) that have to change the films, representing 15-20% as after market sales”, Mr. Chalok said
He said that the sale for this year is expected to be around Bht. 650 million, a growth of about 12-15%, representing Bht. 630 as domestic sales, and Bht. 20 million as international sales. For 2019, the company has set a sales target of Bht. 730 million, representing a growth of 17%, and in order to achieve this, the company has to try to maintain its market share, continue to upgrade and improve its products quality, continue to build its brand Hi-Kool and further expand its business to foreign countries, he further said.
“Competition in the market is very intense as there are new comers entering the market. However, Hi-Kool is in a better position as it has been well established and is the most well-known Thai brand. It can provide quality products with high heat rejection and other added functions that other brands do not have. For example, Hi-Kool UV Care which is a ceramic film can reject UV up to the range of 400 NM which is the harmful range that has the Blue Light ray that damages your eyes. Normal films have UV protection up to only 380 NM. In addition, two years ago, we have launched Hi-Kool Black Carbon series which is clear when looking out from inside the car and black tone when looking from outside. This series has been overwhelmingly accepted by customers. In 2019, we will launch, possibly in the next Motor Show 2019, another new series of high premium grade film which we believe can reject the highest heat among all the window films in the market”, Mr. Chalok finally said.