Loewe drops distributor, talks subsidiaries

By Matthew Henry

SYDNEY: Premium German TV maker Loewe has dropped International Dynamics as its Australian distributor after a 15-year association, but has not named a new partner.

International Dynamics claims Loewe is looking to establish company-owned subsidiaries globally in place of local agents, in order to implement its premium strategy and drive sales.

However, Loewe has made no announcement for the Australian market and the brand’s future presence here is currently an open question.

In a media statement issued late yesterday, International Dynamics defended its record as Loewe’s local agent.

“With the help of specialist dealers throughout Australia, International Dynamics took Loewe from being an unknown brand of CRT television in Australia to a market force, with among the largest per-capita sales in the world,” said the company.

“Normal service and warranty work will be provided during this transition and under any new distribution arrangements.”

According to the Melbourne-based distributor, its discharge follows similar moves by Loewe in Europe, where the company has reportedly ended longstanding relationships with agents in Belgium, France, Italy, the Netherlands, Austria and the UK.

Loewe established its own marketing and sales subsidiary in the UK last April.

In a report to its shareholders this month, Loewe said it will place most emphasis on core markets in Europe, while opening flagship gallery stores in selected international cities.

The company is targeting seven per cent sales growth to 400 million Euros ($AU690 million) and 14 per cent earnings before interest and taxation (EBIT) growth to 24 million Euros ($AU42 million).

International Dynamics spokesperson Alex Encel was unavailable for further comment when contacted today.

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