BUKIT MINYAK: Pensonic Holdings Bhd
will set up marketing and distribution subsidiaries in Thailand and Indonesia by next May as part of the company’s overseas expansion plan.
Group chief executive officer Dixon Chew (pic) said before the AGM that the company was currently using third party agents and original design manufacturing customers to sell products in these countries.
“We want to set up our own distribution networks because of their huge population base.
“About 50% of the population in South-East Asia is below 35 years of age and has the spending power, which is the targeted age group for our consumer electronic and electrical products.
“We believe we can better tap into this market segment with our own marketing channels.
“The subsidiaries will be set up either through a merger and acquisition exercise or we will do it on our own.
“This will provide the group with better control over the brand’s direction and expansion in the overseas market,” he said.
According to Chew, the small domestic appliance market will be further emphasised and strengthened with an increased range of products to improve its market share.
The recently published 2015 Nielsen global survey showed that Malaysian consumers spent one-third of their income on equity and capital funds.
“In view of the cautious stand, we see this as an opportunity to build a strong market share based on our capability and the cost performance of our products,” Chew added.
Chew expects more spending from Malaysian consumers, given the cut in Malaysia’s benchmark interest rate by 25 basis points to 3%, but also said competition would remain intense.
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