Sunday 14 Jul 2024
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KUALA LUMPUR (Oct 30): Berjaya Corp Bhd's Cosway Corp Bhd will continue to focus its efforts on revenue growth in Malaysia and Mainland China for the financial year ended June 30, 2020 (FY20), using digital marketing strategies to engage with and market its products to the younger generation of consumers.

"Cosway will also continue marketing more high value and premium quality products, as well as more products targeted at the growing market of Muslim consumers, to increase its profit margin," said its executive chairman Tan Sri Datuk Seri Vincent Tan Chee Yioun in Berjaya's Annual Report 2019.

He added Cosway will also establish a merchant partner relationship mainly with overseas companies.

Meanwhile, Berjaya's property development division will focus on strategically marketing its properties to the right market segments, taking advantage of the numerous measures to stimulate the property market.

The government had introduced some measures to overcome the residential supply overhang in the property market such as initiating discounts and waiver on stamp duties for residential units via the Home Ownership Campaign, lowering of the threshold for foreign buyers of high-rise properties, as well as the introduction of a Rent to-Own (RTO) scheme for first-time buyers.

According to Tan, projects in good strategic locations will still be in demand at the right pricing.

As for the hotel industry, the market outlook is expected to remain challenging for FY20 as market conditions continue to cause uncertainties amongst businesses.

He noted that the Visit Malaysia 2020 campaign, which targets to receive 30 million tourists, is expected to encourage growth in the tourism sector and hospitality industry.

Based on that, Berjaya's hotels and resorts will continue to expand their market reach and improve on customer touchpoints to provide a more distinctive customer experience.

"The division will also continue to initiate more effective yield management strategies to drive room yield and improve cost efficiency so as to maximize profitability in its key business areas," he said.

Moving into the next financial year, the number forecast operator (NFO) business is expected to be challenging due to rising costs and weaker consumer sentiments.

Notwithstanding this, Sports Toto has added a new game, the 4D Zodiac — a 4D variant game which combines 4D results with a Zodiac number that is drawn three times a week — to increase customers' interest, and improved its customer service facilities.

"As such, it is expected that Berjaya will maintain its market share in the NFO business," he said.

Berjaya will leverage the strength of Starbucks' brand position as a leading premium coffee chain in Malaysian and continue with its expansion plan of opening more outlets in strategic locations across Malaysia.

In addition, it has introduced a new grab-and-go dining concept store for Kenny Rogers Roasters (KRR) called KRR Express, he added.

The introduction of new products for the retail market through Berjaya Food Trading Sdn Bhd is creating additional revenue streams for Berjaya.

Some of the new products are the range of bottled Joybean soybean drinks, and Starbucks Doubleshot Espresso canned drinks, as well as the reintroduction of Jollibean food and beverage products under the brand name "Joybean".

Tan also noted that Berjaya's motor trading and distribution business is also expected to continue to contribute towards the company's revenue.

"Locally, the China Car Division has recently increased its distribution of commercial vans in Malaysia with the introduction of selected Golden Dragon van models from one of the largest luxury bus and light van manufacturers in China, Xiamen Golden Dragon Bus Co Ltd.

"The China Car Division will continue to widen its sales network and explore further opportunities to bring in new models to increase its market share," he said.

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