Durban-based in-car DVD and accessories solutions provider, Tier One Electronics, has opened a new office in Centurion, in Gauteng, and will soon expand into Cape Town.
Tier One, which bought itself out from the listed Mustek group about a year ago, wants to grow its business in these regions.
Tier One Electronics was founded in May 2001 as a computer distributor. Its core business changed to mobile video with the introduction of the Video Traveller in October 2001.
Tier One is the exclusive distributor for the US-based Audiovox Corporation, Boss Audio and Rosen Entertainment. It has in-car entertainment agreements with several vehicle manufacturers in South Africa.
The company has also implemented plans to grow its own product line - focusing on the brands of Road Motion, Video Motion and Audio Motion.
Recently-appointed Tier One Gauteng regional director Ian Miller says the company will appoint additional managers to “focus on each region's sales”.
Miller explains the company's head office and main distribution centre will remain in Durban. However, it sees a need “to have a renewed physical presence in other regions,” he adds.
Its sales office in Cape Town, which will open next month, aims to “enhance its penetration into the Cape region”, says Miller. Each regional sales office will be operated as “independent cost centres”, which puts the company in a better position to control the growth in each region, he adds.
“We will hold limited stock in our different sales offices, which will enable us to provide real-time supply channels, while the bulk of our stock will remain in Durban, from where we will also supply clients.”
Erwin Rencken, who has just been appointed regional director of Tier One Electronics Cape region, says there is “growth potential” in the Cape region. He expects the Cape office to add about 25% to group revenue within the year of operation.
“Due to new strategies and the diversification of Tier One's product range, we are also able to penetrate new markets and make use of the strength of Tier One's motor industry pedigree to enhance specialised corporate solutions,” says Rencken.
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