By Sarah Falson
SYDNEY: BenQ will change its name to Jia Da Corporation and spin off a 100 per cent owned company which will retain the BenQ name, as part of the group’s ‘Dual Core Competency Strategy’ which aims to elevate the company’s operating efficiency.
The spin-off, though subject to approval by a meeting of shareholders on 15 June, will take effect on 1 September this year, allowing the company to focus on its core areas of ‘brand & services’ and ‘manufacturing & technology’, maximising competitiveness in the consumer electronics marketplace.
“The changes are a boom for retail business, in that it will allow us to develop and market opportunities specific to the Australian consumers,” BenQ managing director/vice president Asia Pacific, Philip Newton, told Current.com.au
“Furthermore, the isolation of the BenQ brand from the manufacturing arm of the company will ensure that all financial resources are focused on promotion of the BenQ brand and products which will assist in driving consumer awareness and retail business.”
According to a press release distributed by BenQ’s local head office, the company has achieved sufficient profit and scale to sustain and grow its operation independently within a “short five-year span.”
“After the spin-off, the branded company will be positioned as a fables company with strong integration of 3C technology in the fields of product design, mobile communications, mecfhanical & material engineering, and network convergence technologies,” said the company.
All BenQ brand related global sales and marketing departments and related research and development units will be transferred to the new BenQ unit.
According to Newton, the announcement is a welcome change for BenQ’s local business.
“The overall impact of these changes will ensure the health and survival of the BenQ brand and everything BenQ stands for,” he said in the release.
“The major impact of the restructure will be growth in the value of the brand and its share price as well as annual dividends. Within 24 hours of the announcement the BenQ share price increased by almost 9%.
“Furthermore these changes will allow greater focus and expenditure in critical brand activities such as marketing, branding, channel support and product development."
Newtown said the brand’s commitment to the Australian market is at its strongest ever, and the new structural changes will allow BenQ to expand all of its critical product lines, including LCD monitors, projectors and notebook computers.
The brand will also release a range of LCD televisions and digital cameras locally this year.