Choose Language : ENG | THAI

Business Operations of the Company

Singer Thailand Pcl., is the distributor of electrical products under the SINGER brand, such as: sewing machines and home appliances etc. Additionally, the Company also distributes various appliances and products for commercial use, such as: agricultural equipments and tools, Airtime Vending Machines, Petrol Vending Machines products, Slush Machines. This to meet the overall needs of varying customers groups from household consumers to small business operators, through direct sales via a network of over 3,500 Singer sales representatives spread out over 200 branch outlets located throughout Thailand. Therefore, the Company has a sales network covering the country to distribute its Singer sewing machines, household electrical appliances, and various products for commercial use.

Singer products and appliances can be divided into 2 major categories as follows:

Home Appliances

  • Sewing machines and accessories: sew machines, sewing needles, general lubricating oil – in drips and spray applications, and scissors,

  • Home appliances: refrigerators, washing machines, gas stoves, and air conditioners,

  • Audio and Video products: Flat screen CRT TVs, LCD TVs and LED TVs, satellite dishes, and home theatre systems.

  • Commercial Products or Equipments:

  • Chillers/Coolers: Freezers, Beverage/Drinks refrigerators and beer coolers, Wine cooler, Ice Cream freezers and Slush Machines,

  • Vending Machine: Airtime Vending Machines (ATVM), Petrol Vending Machines, Water Vending machines, Tire Air Pump Vending Machine and Product Box Vending Machines,

  • Agricultural equipments: Water Pumps, Engines for general use, and Portable Fertilizer Spraying Machines.

  • These products are sold under the SINGER brand name through both cash sales and hire purchase installments sales, which are undertaken by Singer Leasing (Thailand) Co., Ltd., a Subsidiary Company in which Singer Thailand Pcl., has a 99.9% equity holding.

    The Company makes direct sales through its own network of branch outlets and sales representatives as well as through dealers located throughout Thailand, with the majority of products and appliances distributed and sold by Singer Thailand are produced on Original Equipment Manufacturer (OEM) basis by quality local manufacturers in Thailand.

    Revenues Structure - by products types and markets:

    (including interest income - as per the Profit & Loss Statement)

    Sales revenues in Thailand
    2556/2013 % 2555/2012 % 2554/2011 %
    เครื่องซักผ้า / Washing Machine
    ตู้เย็น / Refrigerator
    ตู้แช่ / Freezer
    โทรทัศน์ / Television
    จักรเย็บผ้า / Sewing Machine
    เครื่องปรับอากาศ / Air Conditioner
    ตู้เติมเงินโทรศัพท์มือถือ / ATVM
    ตู้เติมน้ำมันแบบหยอดเหรียญ / Petrol 
    Vending Machine

    Total revenues from sales in Thailand






    Other products sold in Thailand
    241,310 7 132,564 5 103,081 4
    มูลค่าการจำหน่ายต่างประเทศ /
    Products sold overseas
    - - - - - -
    3,624,518 100 2,950,658 100 2,382,422 100
    อัตราการเพิ่ม ( ลด ) ของมูลค่าการจำหน่าย
    % Changes Year on Year
    2556/2013 2555/2012 2554/2011
      22.84% 23.82% 14.68%

    Remarks The Company operates its core business unit in selling only products and appliances, and only in Thailand, therefore no information is given form any respective various business units.

    Revenues Structure of Subsidiary Companies

    Business Category


    % Equity holding by the STL FY/2013 % FY/2012 %
    Products/Appliances sales revenues
    - Singer Thailand Pcl. (STL)
    Hire purchase installments –interest

    - Singer Leasing (Thailand) Co., Ltd. (SLL)
    - Singer Thailand Pcl. (STL)
    Services revenues
    - Singer Service Plus Co., Ltd. (SSPL)
    Life insurances products sales

    - Singer (Broker) Co., Ltd. (SBL)
    Other revenues
    - Singer Thailand Pcl. (STL)
    - Singer Leasing (Thailand) Co., Ltd. (SLL)
    - Singer Service Plus Co., Ltd. (SSPL)
    - Singer (Broker) Co., Ltd. (SBL)





























    Total     3,639,460 100.0 2,964,054 100.0


    2.2 Market and Competitive Environment

    (a) Marketing Policies and Activities

    Competitive Strategy

    The Company uses a direct sales strategy through both hire purchase installment sales as well as cash sales. As such, hire purchase installments are undertaken through sustained strict regulations to minimise any possible losses as much as possible. Products sold by the Company are of good quality and are on par with or even better than those sold by others, and with selling prices, on cash purchase basis, being the same or similar as other brands. The Company’s customers base is mostly made up of households and residents located in the provinces; whereby the Company has 2 main categories of sales as follows:

    1. “ Singer Direct ” sales to consumers through the network of Singer sales representatives, ์

    2. Wholesales through its dealers network, including overseas sales channels – especially in neighbouring countries, such as : Laos, Cambodia, and Myanmar; as well as ‘Group Sales’ - particularly for sewing machines and sewing accessories, coolers/freezers and wine cooler cabinets, together with other small home electrical appliances.

    In regards to its core products, such as: home electrical appliance like refrigerators and TVs that already have a high ownership rate and a low market growth potential, the Company deploys a used-products trade-in strategy, for all brands, in order to increase its market base and sales revenues; whereby this strategy is also applicable for all types of home electrical appliance and products, such as: washing machines, coolers/freezers. The Company has also developed new products and appliances to meet the need of its various customer groups, as well as continuously improves the quality of all its products.

    Additionally, the Company has continually introduced and launched new products in order to target and and increase its coverage of other customer groups that include: small business and small retail outlets (ie: ‘sho-huay’ shops) operators, food outlets, coffee shops, apartments/student residences through offering such products as: Airtime Vending Machines, Petrol Vending Machines, and Slush Machines, that aim at increasing both the competitive ability and potential revenues of these small business operators.

    Distribution Channel Strategies

    The Company sells its products and appliances through its own branch outlets network (that total over 200 and are located throughout the country and own sales representatives (that total over 3,500). The Company trains its sales force so that they have a solid understanding of the products and its features; whereby this sales force network is a vital driving force in expanding both the Company’s market base and customers base. The Company’s primarily makes use of its ‘direct sales’ channel that account for over 95% of its total sales; while over 80% of its sale are also made on a hire purchase installment payment basis through the Singer Leasing (Thailand) Co., Ltd., a Subsidiary in which the Company has a 99.9% equity holding.

    With regard to controlling and managing the quality of customers’ hire purchase installments accounts, Singer Leasing (Thailand) Co., Ltd., carries out a thorough checking of such customers and their accounts at both the pre-selling and post-sales stages. The Credit Control Office/Center verifies and approves all hire purchase customers before the sale is made; whereby the credit approval process includes making use of the internal customer database of the Company and checking the database of the National Credit Bureau. While the post-sale checks involve the Account Checker monitoring and reviewing the accuracy of the customers’ hire purchase account details to ensure whether the account corresponds exactly to the approve credit limits and conditions or otherwise; whereby actual visits to all customers at home are also made. Currently, there is a total of more than 100 Account Checkers operation nationwide, within the Credit Control and Review Department, responsible for reviewing all hire purchase customer accounts.

    (b)  Industry Trends and Competitive Environment

    Thailand’s overall economic growth (GDP) rate for 2013 was 3.4% YoY, which is lower than expectations for the following reasons:
    1) total exports during the past year grew less than expected,
    2) consumer demand and consumption as well as overall investments have slowed down more than expected, and
    3) disbursements of the Government budget have been lower than expected.

    However, while the expectation is that the overall GDP growth for full year 2014 will be at 3.0% YoY, there are many risk factors, relating to the ongoing political turmoil that is expected to be very prolonged, that will delay the formation of a new Government which can fully and effective govern and lead the country; and thus this may result in an overall full year 2014 economic growth of only 2.4% YoY due to the delays in Government budgets disbursements and in the various planned mega-infrastructure projects investments. Furthermore, the ongoing political uncertainties have also impacted overall consumer confidence and private investments. Therefore, the main driver for economic growth in 2014 will be exports, which is projected to grow 6%YoY, reflecting the overall recovery of key global economies – especially in the USA; which would then compensate for the slowdown of the internal economy and in consumer demands.

    Hire purchase business for electrical appliance

    The hire purchase business for the electrical appliances market, in Thailand, is divided into 2 major groups, with each having different customers base and characteristics, ie:

    •  The first group consists of these major players Ayudhaya Capital Services Co., Ltd., (Krungsri First Choice) and AEON Thana Sinsap (Thailand) Pcl., with each offering consumer financing for various other products apart form for electrical appliances, such as: telecoms products, office equipment, home furniture, motor cycles, and automobiles.

    • The second group focuses mainly on products with a long life as well as household electrical appliances; whereby currently only Singer Thailand pcl. uses a direct sales and marketing approach for its hire purchase installment sales through its network of branch outlets and sales representatives/collectors.

    While home electrical appliances such as TVs and refrigerators already have high rate of ownership and, thus, low potential market growth rate; however, the Company’s Management view that market growth can be achieved through deploying a ‘Replacement Market’ and ‘Trade-In’ marketing strategies. As such, both all types and all brands of used home appliances can be traded-in for new SINGER brand appliances, together with receiving a cash payment of Baht 1,000 – 1,500 per appliance, being able to buy on an affordable hire purchase installment plan, and benefiting from Singer Thailand’s quality services through its nationwide network of branch outlets. These strategies are aimed at the Company being able to achieve the sales targets of all the products and appliances sold and distributed by the Company.

    Sewing Machines

    Many types of manufacturer consumer products uses in everyday life (such as: shirts, blouses, trousers, skirts, dresses, bags, shoes, bed sheets, pillow cases etc.) all need sewing machines in their production. Thus, sewing machines are widely used – for large scale manufacturing as well as for medium and small scale producers, including general sewing machines used at home.

    Thus, the sewing machines market consist of 2 segments: industrial sewing machines used to manufacturer everyday consumer products on an industrial scale, and normal sewing machines, of various brands, used for sewing clothes in the home such as: Singer, Janoma, Elvira, Brother, and Juki, together with various brands low-end and inexpensive machines from China of imported to compete in this market.

    Since sewing machines are very durable appliances with a considerably long life depending on the proper usage and upkeep, currently, there is a growing demand for sewing machines - especially those that make use of new technologies and applications to make them into ‘computerised’ sewing machines that are the more efficient and productive as well as modern and compact, which can be used to make uniquely designed handcrafted products at home and which are popular in this age of “Do it Yourself” trends.

    Important Changes in the Competitive Environment

    At present, there are many large non-bank companies in Thailand offering consumer finance products and services together with credit card companies, such as: American Express (Thai) (AMEX), General Card Services, Krungsri Credit Cards (KCC), Krungthai Card (KTC),and Tesco Card Services.

    The non-bank companies include: AEON Thana Sinsap (Thailand) (AEONTS), Krungsri First Choice (KFC) and Easy Buy that all focus on offering hire purchase installments services and personal loans; and Singer Thailand (SINGER) that only offer hire purchase installment services for more than 120 years. These Non-bank companies can be divided into 2 groups, each with different business and marketing focus:

    • AEONTS, EASY BUY and Krungsri First Choice, focusing on hire purchase installment services and personal loans for customers with good credit records and monthly income of not less than Baht 4,000.

    • While the other group, with companies like Singer Thailand, targets grassroots customers living in provincial areas and working in the agricultural sector. These companies have a direct sales force that also combine the costs in the pre-selling activities and for after sales services in the selling price to customers.
    This is a different business model from that of the first group (ie: AEONTS, KFC และ EASY BUY) that compete on offering speedy credit approval and interest rates charged; while the companies in the second group, that targets customers living in the provinces with an agricultural livelihood, compete on building long standing relationships with customers living in the local communities and offering good pre-selling and after sales services. Moreover, such direct sales activities must also keep in mind the needs of the customer through offering new services and products on a continuing basis.

    Sourcing Supply of Products and Appliances

    After 2002, the Company changed from ordering its sewing machines from Singer Industry Co., Ltd., to sourcing complete sewing machines from overseas producers and suppliers, since the import of complete sewing machines is less expensive than the cost of local assembly and manufacture from imported sewing machine kits. Such products purchased from overseas manufacturers account for approximately 3% of the total products range of the Company.

    As for electrical appliances, the Company sources from quality local manufacturers on an OEM (Original Equipment Manufacturer) basis, whereby the following are existing local home appliances manufacturers, who are also the suppliers of SINGER branded home appliances products to the Company :

    1. Haier Electronic Pcl. : Refrigerators and air conditioners
    2. Sanyo Commercial Solution (Thailand) Co., Ltd.: Freezers, Beverage Cooler, and Wine Cooler.
    3. Samsung Electronics Co., Ltd. : Refrigerators, Air Conditioners, and Washing Machines,
    4. Sharp Thai Co., Ltd. : Refrigerators
    5. Changhong Electronics Co., Ltd. : LCD TVs
    6. Lucky Flame Co., Ltd.: Gas Stoves
    7. ADT OnLine Co., Ltd.: Airtime Vending Machines
    8. S Safe Oil Co., Ltd. : Petrol Vending Machines
    9. Lucky Star Universal Co., Ltd. : Beverage Coolers
    10. Anthurium Tech-Design Co., Ltd. : Airtime Vending Machines

    Additionally, apart from offering SINGER branded products and appliances, the Company also collaborates with Muang Thai Life Assurance Pcl., and Muang Thai Insurance Pcl., in expanding and offering life and general insurance markets as well as products into the Company’s existing customer and market bases.

    Environmental Impacts

    The Company is fully recognises the importance for the need to conserve energy usage and protect the environment. Therefore, the Company has actively promoted the use of ‘energy-efficient’ electrical appliances as one of its many corporate social responsibility related activities, together with continually developing new and efficient electrical appliances. As such, all electrical appliances distributed and sold by the Company are quality certified and carry the “No 5 electricity-efficient” emblem. Furthermore, all SINGER refrigerators have been develop to use refrigerants that do not harm the environment or the world’s ozone layer, namely: “NON CFC” and “C-Pentane” that have ‘0-level certification’ in regards to destroying the ozone.

    The Company is fully committed to operate its business with quality together with for the maximum benefit and interests of society as well as for consumers on a sustainable basis.

    Pending Work – to be delivered

    - none –