Cross-border e-commerce seller Synergy House Bhd is cautiously optimistic about the global furniture e-commerce market, intending to leverage strategies for market expansion. The company’s affordable pricing and established market presence are expected to drive stable growth, as evidenced by strong financial results in both B2B and B2C segments.
25 August 2023 – Synergy House Bhd, a prominent cross-border e-commerce seller and exporter of ready-to-assemble home furniture, is expressing cautious optimism regarding the prospects of the global furniture e-commerce market. The company’s executive director, Teh Yee Luen, outlined the firm’s intent to leverage its strategic approaches to enhance its market share, citing affordable pricing and an established market presence as key factors ensuring stable growth in spite of prevailing global economic challenges.
In the second quarter ending June 30, Synergy House achieved a net profit of RM6.2 million, translating to earnings per share of 1.24 sen, with revenues totaling RM58.6 million. Over the entire first half of the year (1H23), the company recorded a net profit of MR8.8 million, with revenues reaching RM110.1 million.
Notably, the business-to-business (B2B) segment constituted approximately 54.78% of the company’s total revenue for 2Q23, amounting to RM32.1 million, while the business-to-consumer (B2C) segment contributed RM26.5 million, or around 45.22% of the total revenue.
Synergy House’s performance in the B2C segment for 1H23 was particularly noteworthy, with total revenue of RM50.7 million surpassing the entire revenue generated from the B2C segment in the previous fiscal year, FY22, which amounted to RM49.6 million.
Executive director Tan Eu Tah emphasized the substantial potential the company sees as a cross-border e-commerce vendor. He highlighted the significant growth observed in the B2C segment, underscoring its alignment with the company’s strategic trajectory. Tan further explained that Synergy House is strategically positioned to capitalize on these opportunities, focusing on entering new markets, ramping up advertising efforts, and boosting brand promotion to effectively expand its market reach and revenue.
The American market stands as a pivotal contributor to the company’s revenue, with B2C sales dominating USA-based sales during the current financial quarter. Tan concluded by reaffirming the company’s commitment to harnessing the potentials inherent in B2C furniture e-commerce, particularly in well-established markets and platforms. – reference: The Star
