KUALA LUMPUR: Japanese multinational electronics company Toshiba Sales & Services Sdn Bhd has set a target to grow its market share in Malaysia by 5% in the next three years, bringing it to around 17-18%.
Managing director Steven Yang said according to market intelligence company GfK, Toshiba’s Malaysian market share currently stands at around 12%, placing it in third or fourth position.
“However, our goal is to become one of the top two brands. To achieve this, we plan to invest more in strengthening our brand and enhance our product offerings. Additionally, we aim to collaborate more closely with business and media partners to steadily increase our market share in Malaysia.
“Looking ahead, we believe that in the next three years, we can grow our market share by approximately 5%, bringing it to around 17-18%. Reaching this target would position us as the second-largest player in the domestic market,” he told SunBiz after the launch of the Japandi series of refrigerators last week.
Yang said the Malaysian market experienced significant growth due to a supply shortage during the Covid-19 period.
He said brands that could maintain supply greatly benefited during that time, favouring many market players.
However, manufacturers resumed production after the pandemic, and the balance between supply and demand shifted, Yang said, adding that there is more supply than demand, leading to an oversupply situation currently.
“Over the past two years, we have seen a decline in demand, but the market is beginning to recover this year. This is a positive sign, especially given Malaysia’s economic performance, as evidenced by a GDP (gross domestic product) growth rate of around 5.9% in the first half of the year.
“As a result, the home appliance market is again on an upward trend, which is encouraging,” Yang said.
He also said Toshiba’s positioning in Malaysia targets mid- to “affordable premium” brands.
“Our main products, such as refrigerators and washing machines, now have a complete lineup. We are focusing on differentiating our products across various sales channels to avoid price wars, particularly between online and offline markets.
“For instance, online prices are very transparent, and if a smaller player drastically reduces a model’s price, it can lead to widespread price matching.
“To counter this, we plan to offer different products for online and offline platforms so that prices will not be directly comparable. This strategy allows us to grow our market share in both segments without conflict,” Yang explained.
In offline channels, he said, where multiple stores may operate in close proximity, customers often compare prices with neighbouring stores.
“To manage this, we aim to offer different products tailored to each channel, enabling each store to focus on its own models and grow profitably without the pressure of direct price competition,” Yang said.
When asked about retail expansion, he said Toshiba operates exclusively through dealers.
Currently, Toshiba products are present in most stores, but the share varies. Some stores may carry 5% of Toshiba products, while others have up to 20%.
“Moving forward, we are looking to open more branded shops in collaboration with our dealers, where 100% of the products will be Toshiba. We have observed that other brands in the market are adopting this approach, and we are investing in it as well.
“So far, we have opened five brand stores, which started business last month. This year, we plan to open another four, and next year, depending on location and dealer negotiations, we expect to launch 10 to 20 more.
“This expansion includes Peninsular Malaysia and East Malaysia. We partner with dealers who open the store while Toshiba supplies all the products, creating a dedicated brand shop,” Yang said
