In response to post-Covid demand for sustainable livelihoods, TOSTEM to expand its market share in Thailand

Japan’s leading manufacturer of aluminium windows and doors, TOSTEM, on observing its market in Thailand wishes to expand company shares, particularly in the retail market (B2C) there. The great demand for sustainable living amidst the risk of pandemics and rising intergenerational transfer is prompting the company to acquire more market shares. 

TOSTEM and others like it, EXSIOR, INTERIO and SUPERWALL are portfolio brands for LIXIL Group headquartered in Tokyo, Japan. The group can be considered the best in Japan when it comes to building materials, housing products and services.

Mr Wicha Worasayun, the CEO of LIXIL, is also responsible for TOSTEM’s LHT Asia outlook. He said that the company anticipates rising demand for not only high-quality and functional housing products but also better innovative design. Japanese design is practically sleeker and occupies less space which appeals to the Thai customers.

Mr Wicha very cleverly points out that the changed pattern of work after the pandemic has led an entire generation to sit inside homes with their laptops open, therefore the design must consider space, airflow and scenery. Moreover, houses are being shared from one generation to another with senior people and toddlers living together, which is why the design should be flexible enough to reach every individual needs.

This company which idealises Japanese technology might come in handy for this generation and also the future. Plus aluminium is the second most abundantly found material on the earth’s surface which can be recycled time and again for any said purpose.

 “Before the pandemic, the company’s major incomes contribute largely from projects or business-to-business. However, following the pandemic, the firm has more income from retail or business-to-customer since individuals have raised their concerns about spending time at home. Thus, from now the firm will focus more on the retail market by launching three strategies to capture more customers in Thailand’s market,” he said.

Before the Covid-19 outbreak, the company used to make almost 70 per cent of its sales contribution from B2B or project customers while only 30 per cent came from the retail or B2C market. But after the pandemic, demand for B2B has subsided with the rising retail market.

Only the previous year, TOSTEM had launched ATIS, an artistic and minimalist range of window designs. The company is not going to rest until it finds a stronghold in the retail market and it will continue launching new products to serve a particular demand.

TOSTEM’s very next agenda on the list is to produce custom-made designs for each retail customer. Focussing mainly on the durability and longevity of products, the company will keep on producing items based on customers’ requirements. 

The firm plans on utilising digital platforms to spread the concept which could make its products easily available to customers. TOSTEM also motioned at expanding showrooms through its partners nationwide, specifically in business and tourist centres where there is a usual urgency to build residential complexes, resorts and home builders.

Based on these strategies, Mr Wicha expects a 40 per cent growth in sales this year.

In the first quarter of 2022, company sales grew 20 per cent on a year on year basis.

“More and more Thai people like Japanese architecture and housing design as it gives a space for connecting between housing area and outside environment. The products from Tostem help respond to Thai customers on various angles as it is high quality, functional, good design, and provide connection to nature including fresh air and open space,” Mr Pakorn Mahapant, Design Director from M Space, an architecture company added.

During 2022’s Architect Expo held this week, spread over 162 sq.m., TOSTEM displayed innovative art and design through aluminium products under the “Home Solution & Living Space” genre which is again parallel to the concept of “Framing the Beauty of Living”. Many of the company’s celebrated products were showcased including its recent collection ATIS, Grants and Giesta which are simple, luxurious, long-lasting and secure.