`Top the 10 billion won mark.` Small and medium digital video recorder (DVR) manufacturers are ramping up efforts to break through the 10 billion mark in sales, which has long considered a great barrier to overcome.
Mid-standing manufacturers such as 4nsys Eastern Information Communication and ComArt System, which have missed the annual 10 billion won mark for the last two to three years, are now moving fast to reach the target amount this year, recruiting marketing experts and releasing embedded products.
WinforNet, which has recently brought in sales and marketing experts at home and abroad, recorded some 6 billion won in first-quarter sales vs. 4.9 billion a year earlier, and Boeun Electronics also forecasts sales in the first six months to be worth around 5 billion won, raising the hopes for reaching the 10 billion target.
Industry experts point out that the figure is just more than symbolic. Firms will more likely achieve economies of scale once they get to the point.
"With sales worth 10 billion won, we will be able to change our image from small ventures to financially-sound small and medium firms," said Sul Chang-hoon, CEO of ComArt System. "As customers find firms reliable, it will lead to rising order and sales volumes in turn."
In fact, such firms as Idis, Codicom and Sungjin C&C, which had to wait 3 to 5 years to reach the 10 billion mark, could double sales to 20 billion won in less than a year once they reached the mark.
Only a small number of manufacturers including Idis, Codicom, Sungjin C&C, 3R, POS Data, Picasso Information Communication and Wooju Communication reported more than 10 billion won in sales last year. If five to six more companies join the frontrunners this year, the number of 10 billion won achievers will be increased to more than ten, boosting the home market estimated to be some 180 billion won to almost 300 billion won.
"Once a firm reaches the 10 billion won mark, reshuffling of organization or workforce are expected to be followed, which will in turn further boost sales," said Park Tae-suh, manager at 4nsys. "Feeling confident about achieving the goal, the company will also likely see a synergy."