Jadi announces strategic diversification to consumer electronics
August 16, 2024
Jadi Imaging Holdings Berhad (Jadi), a player in the manufacturing and sale of toner and related products, has announced a significant strategic shift aimed at diversifying its business portfolio.
The company is set to expand its existing operations to include the distribution and trading of consumer electronics, marking a notable evolution in its business strategy.
Over the years, Jadi has encountered significant challenges in sustaining growth within its core businesses, particularly in the manufacturing and sale of toner, cartridges, and refillable ink for printers. With global markets becoming increasingly competitive, the company has experienced financial setbacks, highlighted by consecutive losses in its Manufacturing and Product Distribution businesses since 2017 and 2021, respectively.
The decision to diversify stems from a need to stabilise and expand Jadi’s revenue streams. The Board of Directors has recognised the necessity of reducing the company’s reliance on its traditional product lines, which have been under pressure from stiff competition and declining margins. Consequently, the company has identified consumer electronics as a viable and profitable market segment to mitigate its losses and ensure long-term sustainability.
Jadi’s expansion into consumer electronics will be managed through its wholly-owned subsidiary, Jadi Life Solutions Sdn Bhd (JLS), which has been active in the product distribution business since 2020.
Initially focused on toners and cartridges, JLS has progressively broadened its portfolio to include a variety of consumer products such as healthcare and personal care items. In recent years, it has also ventured into the distribution of consumer electronics, starting with 3D printers in 2020 and later expanding to include computers, peripherals, and mobile phone accessories.
The company anticipates that the new Consumer Electronics Business will contribute significantly to its overall revenue, potentially accounting for 25% or more of the Group’s profits.
Jadi plans to aggressively expand its range of consumer electronics offerings, focusing on computers, peripherals, mobile phones, and wearables such as smartwatches and fitness trackers. The company said it is currently in discussions with several suppliers to secure distribution rights for additional brands and products, aiming to create a diversified and resilient product portfolio.
To support this expansion, Jadi intends to leverage its existing distribution network, which includes a robust online presence through its e-commerce platform and partnerships with leading marketplaces like Shopee, Lazada, and TikTok Shop. The company also plans to recruit more resellers and retailers to broaden its market reach across Malaysia.
Financially, Jadi has earmarked RM6 million ($1,32 million/ €1,2 million) over the next 12 months to fund this diversification initiative, with the bulk of the investment allocated towards inventory purchases and digital marketing efforts.
Categories : World Focus
Tags : Business Computers Consumer Electronics Diversification ICT Jadi
