Nova Lifestyle Inc (NASDAQ:NVFY) has set its eyes on Dubai and Australia as it continues to explore ways of furthering its export market business. Pursuing market opportunities in the two countries is part of an effort that seeks to diversify areas of focus away from North America, China, and Europe.
By expanding in Australia and Dubai the manufacturer and distributor of modern LifeStyle, furniture hopes to develop new sales channel and prevent a further slump in revenues. In the recent quarter, the company posted a 17.9% decline in revenues compared to the same period last year. The decline was because of a 32% decline in volume that the company now plans to offset by expanding into new markets.
One of the company’s customers in Dubai has begun production on a big hotel project, expected to provide new sales opportunity for Nova LifeStyle products. The project presents yet another opportunity for the company to win additional business, which should help bolster its revenue base in the subsequent quarters.
Dubai alone has over 15 new hotel projects under development, which are expected to elicit demand for the company’s modern LifeStyle furniture. Double Tree and Marriott are the other partners expected to provide new sales channels given the five projects already in the pipeline. Expanding in Dubai and Australia should provide the much-needed shield against weak economic activity in any one region.
Pursuing Big Contracts
Given that Hotels offer more space for furniture, winning such contracts goes a long way in accelerating the company’s top line growth. These channels also come with opportunities for larger orders allowing Nova LifeStyle to sell complete sets of furniture for multiple dwelling units.
Nova Lifestyle Inc (NASDAQ:NVFY) is also in the processing of adding new products to its catalog to meet the different needs of the market. Expanding internet sales channel is also a core objective as the company looks to reach a wider customer base to enjoy the economies of scale.