After a major company restructure late last year, Philips has opted for a new business model for its audio-video multimedia (AVM) range by teaming up with distributor, Powermove.
Powermove is now the exclusive distributor for Philip’s selected AVM products after approaching the vendor eight months ago to form a new partnership. Television is excluded in this arrangement since Philips pulled out of that market in December last year.
Philips business development senior manager, Sanjay De, said the company decision was based on Powermove’s strong market presence.
“We interviewed a number of candidates,” he said. “It was very important for us to find a distributor that has a close relationship with major national retailers and, in that sense, Powermove was the ideal choice.”
De also said the limited range of AVM goods was cherry picked specifically for the Australian market.
Powermove general manager, Mark King, said the new product additions do not conflict with its existing range.
“The Philips range is brand new to our business and we don’t have any competing products so they will sit as a separate line-up,” he said. “We will be taking on the vendor’s clock radios, iPod docks, DVD players and portable DVD players.”
The company has also hired a dedicated team member in charge of marketing and training specifically for the Philips brand.
The distributor plans to hire three to four more staff as a result of this deal. While King expects significant revenue boost from this new arrangement, he could not disclose any figures.