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Cellnet AV division launch imminent

Cellnet Group has shed more light on how its soon-to-be-launched audio visual import division will win business in the burgeoning convergence market.

General manager of the division, Gary Newman, said it had cemented a number of business relationships in the lead-up to the launch, now about eight weeks away.

"Our initial range will be from about half a dozen or so suppliers," he said. "Some are exclusive [arrangements], some aren't."

Earlier this year the company announced it would extend its consumer electronics foray with an AV import division. Through this Cellnet would source, brand and market its own AV products. They will would focus on generic brands for retailers.

The distributor had spent the last four months in careful product analysis and selection, Newman said. Products would include CRT, LCD and plasma monitors, home theatre speakers and DVD technologies.

Entering the generic brands AV market would be tough, he said, but Cellnet would work to differentiate itself.

"We think there's a real opportunity for someone to come in and do it really professionally," he said.

"We are making a sure we have a ripper warranty deal, good customer service, and rebate programs. Continuity of supply is also a focus for us."

Cellnet hopes to have four or five national retailers on board as channel partners by launch-time, according to Newman. However, the company had adopted a cautious approach to market entry, he said.

"We won't be boasting about being the new kid on the block and dominating," Newman said. "We're not Sony, and we're not LG.

"We're aiming for one or two per cent of that [AV] market. If we can pick that up in our first year, we'll be happy."

Cellnet is currently waiting on trademark approval for its AV brand names.

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More about: Audio Visual, Consumer Electronics, DVD Technologies, LG, Newman, Sony

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