Consumer Electronics Family Business
Redesign, build, expand and establish sustainable Growth for a family owned SME
Our client is a family-owned SME in the field of Home Appliance (HA) trade with over 50 years of market presence.
Challenge
With increasing competition from Asia, the company was struggling with loss of market shares, diminishing margins, and severe profitability decreases in its traditional market.
Approach
We identified untapped opportunities in adjacent markets, built up new business fields from scratch, and transformed the traditional company to a modern service provider with over 50% profitable market share.
The company moved upstream and entered the business of supplying components and raw materials to the HA manufacturers. Additionally, their own new brands were introduced to the market. This was all achieved after sales services were integrated in the company to assure end-consumer satisfaction and direct access.
We expanded the sourcing to the OEM and imported the components directly from producers in Asia to increase competitiveness and profitability.
Outcome
The company is currently back on track with substantially improved profitability and healthy growth.
We built the required organization with access to over 1’600 distributors and 600 after sales service points with adequate control mechanisms.
Efficient and thorough structures and processes were created and rolled out, and a performance-oriented culture for growth and profitability was established throughout the company.
Exclusive distributorship rights with esteemed companies like LG-Electronics Components (South Korea) and Vestel (Turkey) were acquired.