Ni Hsin expects higher revenue on better sales, new China customers

agreement with US-based Standardworld Holding Ltd, which holds the right to the Buffalo brand, so it can realign its direction to the ODM and OEM markets. Ni Hsin, however, continues to be the manufacturer for Buffalo products.

“For us to control costs, it is better this way (without the need to distribute Buffalo products).

“In the former arrangement, we need to keep an expensive marketing team, which cost us RM1 million a year. Without this arrangement, the marketing goes back to Buffalo. We just become a manufacturer,” Yee explained.

He added that when the group was distributing Buffalo products, its ODM customers often had the misconception that Ni Hsin owned the Buffalo brand as it was selling their products.

“Whenever they (ODM customers) have new products to develop, they worry that we copy their concept and pass it to Buffalo. There’s a bit of sensitivity involved.”

Yee said its Japanese customers, the largest export market for Ni Hsin, were reassured after they ceased the distribution of Buffalo products. Similarly, its Chinese customers were also pleased and increased their orders with Ni Hsin.

Thus, Ni Hsin expects its revenue for the financial year ending Dec 31, 2017 (FY17) to surpass FY16 and FY15, and to be driven by improved sales and new customers from China.

“As a manufacturer, our basic trust for credential is to protect the know-how of each ODM and OEM and we managed to achieve that,” said Yee.

Besides manufacturing cookware for ODM and OEM markets, Ni Hsin created an in-house brand, “Pentoli”, for multiply stainless steel cookware.

“Pentoli is our in-house brand but there is no conflict with OEM and ODM,” said Yee.