KUALA LUMPUR: Pensonic Holdings Bhd, which expects flat growth in financial year 2018, foresees its newly secured exclusive distributorship rights for renowned UK home appliances brands Morphy Richards and Belling for the Malaysian and Singaporean markets to contribute RM10 million in sales to the group for the next financial year ending May 31, 2019.
Pensonic group managing director Vincent Chew said the addition of these two brands will complement its existing brands and contribute to the group’s growth and resilience in the future.
Morphy Richards and Belling are both brands under the Glen Dimplex Group, the world leader in electrical heating business holding significant market positions in the domestic appliance industry worldwide.
Chew said the initial agreement for the distributorship is for 44 months, but it wants to secure a bigger regional coverage area.
“We continue to explore the possibility of getting the Southeast Asia region (distributorship),” Chew told reporters after an agreement signing ceremony between Pensonic and Glen Dimplex here today.
He explained that the group’s performance over the last two years has not been stable and FY18 is expected to close on flat growth driven by its existing brands.
Pensonic has been focusing on the mass market, which saw weak consumer spending.
With Pensonic as its core brand, the group also distributes products of Lebensstil Kollektion, Cornell from USA, Indesit and Ganggia from Italy, and Princess from Holland.
“Pensonic has been a multi-brand platform, so with Morphy Richards and Belling, we’re capturing the niche, premium market, which will help our bottom line as the revenue for the mass market is slowing down,” said Chew, adding that for premium products, the currency exchange effects are manageable, in terms of margin.
For future growth, he said, Pensonic is developing its own digital customer relationship management whereby customers will be able to log on to the system for services and complaints.
The company is also developing a smart range of appliances and hopes to launch five items that are wifi-enabled by year-end.
Source: The Sun Daily