Manaccom goes to China to diversify

Manaccom goes to China to diversify

Manaccom is stepping up its international business with a move into China.

The newly opened Shenzen office will sell the Queensland-based software supplier's English written software range but also source products for its diversification strategy, according to director of publishing, James Mackay.

China had been chosen as its next destination after overseas agreements with partners in the USA and Europe, he said.

Diversification had seen Manaccom reducing retail software from 100 per cent to 75 per cent of its revenues during the past 18 months.

The target was to have an even split across accessories, corporate, overseas and retail sales within two years, he said.

A desire to maintain growth had led to formulating the strategy, Mackay said, because the company realised it could not go much further with retail software.

The initial $500,000 Chinese investment has involved hiring an Asian area manager to recruit staff.

Mackay said annual revenue targets in China would be $5 million. Establishing corporate sales contacts and sourcing new products for its Australian market would be the area manager's main tasks.

"We are sourcing products based on the best-selling accessories in Australia," he said. These included wireless, Bluetooth and general PC accessories. The sales side of the new operation would focus on the corporate market initially rather than the retail side, which was prone to piracy in China, Mackay said.

Key corporate verticals would be targeted in the English speaking sectors of major cities such as Shanghai. International banks, insurance and construction companies were prime targets for its software products, with good opportunities for its Acronis corporate backup software in particular. "We see huge growth in the Asian market during the next two years as a lot more people use PCs," he said.

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