KUALA LUMPUR: Khind Holdings Bhd has set plans to expand operations in the Middle East further this year and increase market share in Malaysia and Singapore as part of its long-term strategy.
Group chief executive officer Adil Jimmy Mistry said that the company's main strength is the supply of commercial products and solutions for the Middle East, which is different from other markets.
"While we do have plans to further expand in the Middle East in 2022, our efforts will be more focused on increasing our market shares in the domestic market and Singapore.
"In 2021, our domestic market contributed to approximately 60 per cent of our revenue, an increase of about 10 per cent from 2019.
"The domestic market contributed to approximately 50 per cent of our revenue," he told The New Straits Times.
He said in July 2021, Khind has partnered with retail giant Al Futtaim to distribute Khind products in the consumer electronics segment across the United Arab Emirates (UAE).
In September 2021, Khind expanded lighting products in the Middle East.
"Working with our suppliers and with the opening up of markets with the easing of the restrictions, we can expect a better outlook in 2022," Adil said.
According to Statista Digital Market Outlook Ecommerce Report 2021, revenue in the home appliances segment in Malaysia is projected to reach US$834 million in 2022.
Revenue is expected to show compounded annual growth rate (CAGR) 2022-2025 of 26.82 per cent, resulting in a projected market volume of US$1.70 billion by 2025.
When asked about the domestic market's improvement, Adil said Khind is optimistic that market sentiment will improve this year with the relaxation of Covid-19 restrictions.
"The company will continue to invest and intensify resources in people development, process methodology, data and analytics as we focus our efforts on expanding our market shares in the domestic market and Singapore.
"We will also launch enhanced branding strategies for our three brands, KHIND, Mistral, and Mayer, in the near future," he said.
"We already have more than 600 retail and service partners whereby some of them have multiple touchpoints. So this will be our base for implementing the above strategy.
"Currently, our sales ratio is approximately 60:40 local and export sales," Adil added.
Adil also said that in the last two years, movement restrictions and the work-from-home directive have generally increased demand for the sale of home appliances.
"As such, it is forecasted that the strong demand will continue in the first half of 2022 as the number of cases rises and more individuals choose to work from home," he said.
Apart from strengthening its core product line, Khind will concentrate on its new product category - major domestic appliances (MDA), which includes washers, refrigerators, and larger capacity ovens - which will allow the company to elevate its strategy using service as a differentiator.
"MDA is a new category for Khind Malaysia, and currently, the contribution to our sales is relatively small.
"We see a lot of potentials, and the company will put more emphasis on this category in the future.
Most brands' revenue contributions will be higher as the value of MDA rises, however, our contribution is relatively small, accounting for less than 15 per cent of total revenue.
"We will continue to explore opportunities in products that have a higher online market potential," Adil said.
He also stated that Khind is investing in data analytics to assess the potential for expanding retail partnerships in the countries where the company has a presence.