Struggling distributor Roadhound Electronics has been forced to engage with tier two retailers following the collapse of Dick Smith 12 months ago, also impacting the Company has been the recall of the Samsung Note 7.
Based in rural NSW, Roadhound Electronics is still struggling to regain lost sales according to insiders.
At June 30th 2016 the Company reported a fall in revenue of $15.8 million, profits fell from $10 million to a $5.2 million loss.
One of the largest creditors in the collapse of Dick Smith Roadhound has moved to selling Chinese brands after losing over $17M following the liquidation of Dick Smith who had debts of over $4M.
Currently their website consists of four sections, a single home page which features 5 brands, Huawei, and their Nexus 6P, the Samsung S7 and a Samsung tablet, along with models for the Aspera brand, there is also a 3 line Returns page and an ‘Energy’ page.
Last year Roadhound CEO Ben Sharma said that his Company was set to become less dependent on Samsung, he said that in the past Roadhound built their business up on brands such as Nokia and Motorola, both these brands are no longer in the top 10 smartphone brands in Australia.
He added that Roadhound had developed a strategy around partnering and depending on the most popular vendor at the time.
“We have done this very successfully in the past with Motorola and then Nokia. Now it is Samsung.
Among the tier two retailers that Roadhound are now engaging with is The Leading Edge Group, The Retravision Group, The Betta Electrical Group and Allphones retail.
“This does not mean that we are supplying all their mobile requirements, but it is a start. I am sure that we can build upon this,” he told CRN.