Competition in Thailand's drinking water market is about to get more aggressive after Singha Corporation decided to invest Bt 1 billion (US$31.3 million) to wrestle back market share from Crystal, a brand owned by Sermsuk Plc.
Titiporn Thammapimookkul, Marketing Director of Singha Corporation Co, said the company is set to allocate Bt 1 billion for marketing activities of its drinking water in 2018, 80% of which will be used for promotion and advertising.
Singha has hired Jinjett "Jaonaay" Wattanasin, the eldest son of singer J Jetrin, as the presenter for its drinking water in a bid to appeal to younger consumers. The company also plans to expand its distribution channels for Singha Drinking Water to include football stadiums, hospitals and universities.
“We want to appeal to more teenagers and young people, making Singha Drinking Water their first choice,” said Mr Titiporn. He said there is still huge market potential for drinking water in Thailand because of the growing number of health-conscious people.
Titiporn also added that Singha will not compete on the basis of price but more on other criterias as it also wants to become a market leader in terms of profit margin. Competition in the domestic drinking water market has become fierce since 2016, leading to a drop in Singha's market share to 21% in 2017, down slightly from 22% in the previous year. At one time, Singha controlled 27% of the market.
Thailand's drinking water market was estimated at Bt 43 billion (US$1.35 billion) in 2017 with an annual growth of 10%. Despite a drop in market share, Singha remains the market leader, followed by Crystal which controls 20%, Nestle (18%) and Numthip (9%).
The market experienced slow growth in the last couple of years due to stiff price competition. Titiporn is convinced that Singha’s market share will increase to 23% in 2018 with the aggressive marketing activities.
Singha Drinking Water is produced at 7 factories in Thailand with a combined production capacity of 1.5 billion litres annually.