Malaysia
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Toshiba Sales & Services Sdn Bhd has set an ambitious target to increase its market share in Malaysia by 5% over the next three years, aiming to secure a 17-18% share in the competitive home appliance sector. The company’s Managing Director, Steven Yang, highlighted that Toshiba currently holds a 12% market share, placing it in third or fourth position according to GfK, a market intelligence firm.
“Our goal is to become one of the top two brands in Malaysia. To achieve this, we plan to strengthen our brand and our product offerings,” Yang shared. He added that Toshiba will collaborate closely with business and media partners to grow its presence and market share in the country steadily.
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Growth Prospects and Market Recovery
Yang noted that the Malaysian market, particularly in home appliances, saw a significant boost during the COVID-19 pandemic due to supply shortages, benefiting companies that could maintain their product availability. However, with manufacturers resuming production after the pandemic, the market is now experiencing an oversupply.
“Over the past two years, there was a decline in demand, but this year, the market is beginning to recover,” Yang said. He attributed this to Malaysia’s strong economic performance, citing the country’s 5.9% GDP growth in the first half of the year. As the economy recovers, the home appliance market is also on an upward trajectory.
Toshiba’s Strategic Positioning and Product Differentiation
Toshiba’s strategy for market growth is centered around its positioning as a mid-to ‘affordable premium’ brand, particularly for key products such as refrigerators and washing machines. Yang explained that Toshiba is focusing on differentiating products across various sales channels, both online and offline, to avoid price wars.
“With online prices being very transparent, price competition can quickly escalate if smaller players reduce prices drastically,” Yang explained. “To counter this, we plan to offer different product lines for online and offline platforms, so prices are not directly comparable.”
This approach will allow Toshiba to grow in both segments without the risk of price conflicts. Yang also mentioned that in offline channels, Toshiba aims to offer channel-specific products to reduce direct competition between stores located near each other, enabling each to grow profitably.
Retail Expansion and Branded Stores
Toshiba is also focusing on retail expansion by opening branded shops in collaboration with its dealers. Currently, Toshiba products are available in most stores across Malaysia, but the share of Toshiba products varies significantly, with some stores carrying 5% of their products and others up to 20%.
Toshiba plans to open more branded shops where 100% of the products will be Toshiba, a strategy already being adopted by other major brands. “So far, we have opened five branded stores, with more planned,” Yang said. By the end of the year, Toshiba aims to open an additional four stores, and depending on location and dealer negotiations, 10 to 20 more stores are expected to launch next year, covering both Peninsular Malaysia and East Malaysia.
Aiming for Long-Term Growth
As Toshiba continues to expand its retail footprint and refine its product strategy, the company is confident that it can reach its goal of becoming the second-largest player in the Malaysian home appliance market within the next three years. “We are committed to investing in our brand and working closely with our partners to achieve our targets,” Yang concluded.