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Monday, August 27, 2012

P.I.E. banks on its e-commerce business solutions


GEORGE TOWN: P.I.E. Industrial Bhd expects the e-commerce business solutions sector to grow its business and to cushion against a softening global market for the group's industrial electronic products.
Group managing director Alvin Mui said that the group was now exploring to develop a new generation of e-commerce platform solutions that could support a more comprehensive range of business transactions.
“The increasing use of smart mobile devices is driving the popularity of e-commerce solutions supported by cloud-computing.
“We can see more people buying cinema tickets from their hand-held smart devices compared to a year ago,” he said.
According to the Connecticut-based Gartner, the sales of smart phones worldwide increased 42.7% to 154 million units in the second quarter 2012, compared to the corresponding period a year ago.
Smart phones comprised 36.7% of the 419 mobile phones sold worldwide in the second quarter of 2012.
Rakuten, a leading Japan-based internet service company that provide e-business solutions, revealed in a new survey that Brazil is leading the global e-shopping charge with 81% of consumers keen to shop in different markets online, followed by Indonesia (77%) Thailand (74%), China (69%) and Spain (66%).
According to M-Connect Solutions, a leading web company based India, the first quarter 2012 saw e-commerce transactions in the United States hitting US$50.27bil, a 15% growth over the same period a year ago.
The online products were for supporting various activities and transactions such as business, education, and healthcare.
“The e-commerce solutions will also have improved user experience, added security and confidentiality,” Mui said.
Mui said the group aimed to introduce the e-commerce solutions for the market next year.
On P.I.E.'s industrial product and cable manufacturing business, Mui said the group's newly-completed cable manufacturing facility in Seberang Jaya Industrial Park would start operations in the fourth quarter 2012.
“The plant will produce all range of cables for telecommunication infrastructure, automotive, audio-visual, and industrial products.
“It will raise our group's cable production capacity by about 40%. The cable business generates about 30% or RM105mil of the group's RM350mil revenue for 2011,” he said.
Although the present global market had softened for industrial and cable products, the new plant will position the group to better serve its customers when the economy recovers, Mui said.
The group expects its sales for industrial products this year to remain flat compared to a year ago, Mui said.
“The advantage that we have now is the stability of raw material prices, which has ensured steady flow of orders.
“If it fluctuates too much, the pricing will influence the customers to adopt a wait and see attitude before buying,” he said.
The two key essential raw materials such as copper and polyvinyl chloride (PVC) of the group, the copper price remains more stable around US$7,500 per tonne compared with a big fluctuation from US$3,000 to US$9,000 per tonne in last two years, while the PVC price is also more stable due to the less fluctuation in world crude oil price.

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