Carmichael rebuilding Digiland with home focus

Carmichael rebuilding Digiland with home focus

Digiland is devising the next stage of its push into the home entertainment space and hopes to announce new local partnerships with multinational vendors in the months ahead.

Country manager, Laurie Carmichael, said the distributor was formalising contracts with five suppliers. Products to be brought on board would include projectors, plasma screens, notebooks, desktop PCs and printers.

While these goods offered lower margins than the more specialised hardware being supplied from its vendors in Singapore, Carmichael said all were necessary in offering resellers a complete home entertainment package.

The distributor was also planning a roadshow to demonstrate its range of products as part of a comprehensive system, he said. The new agreements are part of a wider plan to transform Digiland from its commodity hardware roots into a specialist home entertainment and Internet security distributor.

The shift followed a disastrous 18 months for the company, which saw it lose virtually all of its vendor partners in Australia.

Carmichael, who founded Digiland Australia 20 years ago, said the pro­cess of bringing it back from the brink of collapse was taking longer than anticipated.

"There was a period when we were virtually not trading," he said. "It will be a long haul back because it takes time to re-establish relationships with vendors and build up trust again. But we are in it for the long term and we're backed by security from Singapore.

"We are still recording losses but have stopped haemorrhaging money and hope to have profitable months next year."

Carmichael closed the distributor's warehouses in Melbourne, Brisbane and Sydney before relocating to another site in Victoria. It currently has just nine staff.

Digiland had no plans to open warehouses outside Victoria but was planning to open a sales office in Sydney. All logistics will be run from Melbourne.

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