Thanks to its steadfast sales team and innovative R&D, its sales revenue increased from merely RM510m in 2016 to RM790m last year
BY DASHVEENJIT KAUR / Pic By ISMAIL CHE RUS
Coway Malaysia Sdn Bhd targets to achieve a total of RM1.1 billion in sales revenue and one million customers by year-end.
The Malaysian arm of the South Korean appliance company, Coway CoLtd, has grown by 55% since 2016, recording RM790 million in sales revenue last year.
Coway director of global business division James Park attributed the growth to the sales team and research and development (R&D) of its water and air purifiers.
“Thanks to the capabilities of our steadfast sales team and innovative R&D, we achieved an increased sales revenue from merely RM510 million in 2016.
“Our operating margin grew by 8% and our customer base has increased to 700,000 in 2017,” Park said at a media briefing yesterday.
After 11 years of operations in Malaysia, Coway has penetrated the local market from 100 sales per month in 2006, to 1,000 sales each month in
the subsequent year. Currently, the group achieves about 1,000 sales in a day, Park said.
He added that Coway is also looking to expand its footprints to other Asean countries.
“Despite the economic downturn in 2017, Coway Malaysia was able to hold its ground with an excellent water purifiers’ sales performance, while simultaneously seeing a successful growth in our air purifier market.
“Expanding to other Asean countries has been in our plan and Malaysia will be the main hub and leader,” he said.
By the end of 2018, Coway is aiming to establish more than 150 branches nationwide. It currently has 100 branches all over the country.
Park also said that the parent company in Korea will be injecting an additional RM360 million into its capital investment in Malaysia.
“Malaysia, being one of the most successful subsidiaries of Coway, is also one of the most successful models of the localisation of the Korean brand,” he added.
Vietnam and Indonesia are targeted as the group’s next preferred locations to expand its presence in Asean. Coway has two manufacturing plants — in Yugu and Incheon in South Korea.
Asked if the company is planning to be listed in Malaysia, Park said the board is aiming for more growth at the moment.
On a regional level, Coway hopes to achieve two million accounts while generating US$1 billion (RM3.96 billion) in revenue in the next five years.