ANNUAL REPORT LAPORAN TAHUNAN - Berjaya Corp

Cosway offers a wide range of household, skin care, health and
food products.
Chairman’s Statement and Review of Operations
A selection of beauty products from Cosway.
Singer 26” LCD TV TLD 260.
We are optimistic about Cosway’s business prospects due to
its strategic positioning as a provider of high quality products
at very competitive prices. Cosway operates through a unique
Network Marketing system which allows the company to grow
despite the softening of consumer sentiment in Malaysia. We
will continue with our proven strategy to introduce new and
innovative products at competitive prices and open new retail
stores to sustain revenue growth in both our local and overseas
operations.
Singer (Malaysia) Sdn Bhd (“Singer”)
For the financial year under review, Singer’s revenue grew from
better product sales and higher earned carrying charges from
instalment financing. Pre-tax profit rose sharply by 36% as a
result of improved product margin, lower financing cost and the
effectiveness of operating cost management initiatives.
The overall improvement in the financial performance of the
company was achieved despite the extremely competitive
consumer market environment and the cautious attitude of
customers particularly in the second half of the financial year
following the onslaught of the global financial meltdown.
12 Berjaya Corporation Berhad (554790-X) Annual Report 2009
A Singer outlet.
Singer Curvy 8770 sewing machine.
Recognizing the tough market conditions, we increased our
efforts by conducting more sales activities, opening more sales
agent outlets and repackaging our product offerings in order to
meet the needs of a wider cross section of consumers.
In terms of product sales, we performed very well in sewing
machines, achieving a record 35% unit sales growth and
reaffirming our leadership position in the market. The
introduction of a new range of LCD televisions with models
ranging from 19 inches to 47 inches allowed us to register a
500% unit sales growth against previous year’s low base. Sales
of other core Singer products were commendable with marginal
improvement.
To support our selling activities and efforts, we embarked on
a year-long brand awareness campaign by sponsoring the
“Sembang Sinar bersama Abby Fana” radio show on Sinar FM
together with the popular ‘Pak Mandir’ series of commercials.
Large outdoor billboards were strategically placed in heavy
traffic locations with hundreds of banners and buntings being
displayed at all shop fronts and exhibition centers of which no
less than 3,000 exhibitions were conducted nationwide. For the
benefit of customers, ‘Free Service Days’ were held regularly
where customers could bring in their Singer sewing machines
for free servicing. They were also provided with the opportunity
to acquire new sewing skills from our specialized sewing
marketing teams.
To drive the business and to influence the customers’ buying
decisions, a series of marketing and promotional campaigns
were launched in the form of attractive gifts with purchase,
trade-in offers, best buys, and purchase with purchase deals,
which proved to be popular with the customers. Members of
the Singer Famili Loyalty programme would be awarded points
for purchase and prompt payment of monthly instalments. The
points could be utilized for the redemption of exclusive gifts.
Members also enjoy special privileges for future purchases.