Seacon's Strategic Shift Amid Economic Challenges

Seacon, Thailand's leading provider of comprehensive home-building solutions, has unveiled a strategic pivot to boost demand by focusing on civil servants and state enterprise employees. This move comes as a response to the current economic headwinds affecting consumer spending.

Speaking at a press conference, Manu Trakulwattanakit, the managing director, emphasized the distinct nature of the house-building sector compared to the real estate market. "Our industry relies on genuine demand and immediate cash flow upon commencement of construction. People typically choose to build houses only when they feel financially secure," he explained.

Performance and Strategic Response

The company reported bookings of 1.06 billion baht in the first three quarters of 2024, a 9.5% decline year on year. Notable bright spots included the successful launch of their Greenery Series home designs and the steady performance of the Seacon Precast Factory.

Rather than waiting for market conditions to improve, Seacon identified civil servants and state enterprise employees as viable target customers, given their employment stability regardless of economic conditions.

New Initiative for Civil Servants

Responding to the challenges faced by civil servants in affording premium housing, Seacon has launched a targeted "Your Home Series" campaign. The initiative offers six house models priced between 1.39 million and 2.5 million baht, including both single-storey and double-storey options.

Manu highlighted the advantages for civil servants: "They already benefit from government support for land purchases at special rates. Moreover, their job security typically ensures preferential lending rates from banks."

Sustainability Commitments

Seacon has reinforced its commitment to sustainability through a comprehensive range of initiatives across its operations. The company has implemented its "Reduce to Save" concept throughout the business, introducing energy-efficient staff uniforms and launching label-free, recyclable C2 Water bottles.

At their semi-finished parts factory, the installation of solar panels with 100 kWp capacity demonstrates their commitment to renewable energy. The company's environmental consciousness extends to their choice of building materials, favoring hydraulic press bricks and formaldehyde-free insulation.

Market Outlook and Consumer Trends

The company aims to achieve its annual revenue target of 1.2 billion baht, building on the 1.06 billion baht secured in the first nine months. Manu noted that modern consumers are increasingly value-conscious and specific about their needs, particularly during the current economic downturn.