KUALA LUMPUR: Synergy House Bhd
, a cross-border e-commerce seller and furniture exporter of ready-to-assemble (RTA) home furniture, is cautiously optimistic about the potential of the global furniture e-commerce market.
“With its strategies to grow the B2C segment, including expanding customer reach through additional e-commerce platforms and new countries, explore new product categories and higher price range, enhancing revenue through advertisements and promotions, and leveraging technology and artificial intelligence (AI), Synergy House is well-positioned for continued growth.
“Despite global economic challenges, the group’s affordably priced home furniture products and strong presence on third-party e-commerce platforms in key markets are expected to drive further expansion,” Synergy House said in a statement.
The group has recently announced a new business model in collaboration with Wayfair, one of the largest online destinations for home furnishings.
Synergy House said this strategic initiative is expected to significantly enhance the market reach by enabling local vendors to tap into the global e-commerce platform, further strengthening their position in cross-border e-commerce market.
In the second quarter ended June 30 (2Q24), the group posted a net loss of RM4.8mil, or loss per share of 0.95 sen against a net profit of RM6.2mil, or earnings per share of 1.24 sen.
Revenue, however, grew 32.1% to RM77.3mil from RM58.6mil.
In the first half, net profit more than halved to RM4.3mil while revenue rose 46% to RM161mil.
“While our 2Q24 results were impacted by a one-off provision for doubtful debts, we remain confident in the underlying strength of our business,” executive director Tan Eu Tah said.
“We believe that our strategic initiatives in the B2C segment will drive continued success, and we are focused on capitalising on the vast opportunities in the global furniture e-commerce market.
“While some of the strategic initiatives for the B2C growth include incurring costs now for advertisements and promotions, price reduction for new items to gain reviews and traffic and increase in manpower, this will ensure better profile in the e-commerce platforms and supports the long term sustainability and growth of revenue to the group,” Tan said.
Executive director Teh Yee Luen noted that the one-off impact does not change its long-term outlook and does not see this as an impediment to its growth plan.
“Our business fundamentals remain strong, and we are committed for Synergy House to continue its growth trajectory. We continue to explore new platforms, new countries as well as new product categories and new higher price ranges in our B2C segment to further fuel the growth in our revenue. By leveraging technology and artificial intelligence to refine our strategies, particularly in the B2C segment, we are well-positioned to navigate challenges and seize new opportunities as they arise.”
