Local biometrics company Beget Holdings has signed its first international deal, as the company looks to distribute its MobileBio product across the globe.
The deal with French biometrics company Easydentic, which could be worth R60 million over one year, is for the company`s MobileBio product - a standalone mobile biometrics fingerprint device.
Beget MD Andre Potgieter says the French company will distribute the MobileBio in place of its existing biometrics unit, and has placed its first order for 100 units to be used as demo models.
"At present, the company is selling about 700 units of its existing Korean product, but they think the can build up the market to 1 000 a month within half a year," says Potgieter.
The MobileBio device was officially launched in June, and the company has been aggressively marketing it both locally and abroad, says Potgieter.
"We have been busy setting up a distribution network with companies involved in the business of access control. Locally the product has been received exceptionally well, as there is a total gap in the market for such a plug-and-play device. Just last week we sold two new distributions in Cape Town."
Potgieter says the company is currently sifting through 90 distribution applications, of which 10-15 will likely qualify. "In total, we are looking to approve up to 60 or 70 distributions for rural areas in the country. Once we achieve this, we are hoping to sell between 1 500-2 500 units a month locally."
Reaching the international market
Potgieter says SA presents a lucrative market, which is easy to penetrate and has a lack of wired infrastructure. On the other hand, there is limited room for expansion. "Our market exists where GPRS is located. SA is really the only country that has GPRS, whereas the whole of Europe basically has it."
Potgieter hopes the Easydentic deal will provide the company with a footing in the international arena, and says a number of possibilities have already surfaced. "While I was in France, I also met with a German company and a Belgian company, who expressed an interest in distributing the product."
The product is being tested in Australia as well, and Potgieter is hopeful the company will start receiving orders in the next couple of weeks.
In terms of potential barriers to entry into the international markets, Potgieter says there are surprisingly few. "I think the only real challenge is the communication barrier.
"With the Easydentic deal, we tried to translate everything into French. But the way we translated it here, is not the way they speak French there. So, even though I had to pay guys to translate, I still ended up having to rework it on their side."
Share
