The CE accessory category is under pressure, but this has not stopped Sydney based distributor Laser Corporation who celebrate 35 years in business this year talking up the market as they expand their product range and the retailers, they do business with.

According to CEO Chris Lau the business is bullish about sales growth after achieving 20% year on year sales growth last year with the Company tipped to grow in 2023.

A key part of the Companies strategy is meeting the demands of retailers who want ‘Responsible Sourcing’ partners and one area where the Company is achieving this is in the “Commercial market” where the business is achieving record growth according to Lau.

Partnering with back-to-school retailers and commercial partners such as insurance Companies, and fitness companies wanting cheap smart watches, the business that has four people in their commercial division claims that demand for private label products is “up” despite COVID supply concerns.

The Company whose products are being sold in JB Hi Fi under the XMO label and at retailers such as Costco, Bunnings, Aldi, Super Cheap Auto, Big W, Officeworks, Target, Betta Electrical, Harvey Norman and The Good Guys as well as Coles, claims that “Cashed” up suppliers will grow as some distributors operating in the accessory market struggle to raise capital to fund “significantly increased operating costs” said Lau.

He cited rising shipping and product increases due to component shortages and the costs some distributors are going to have to pay for money.

He said “I would be surprised if any distributor could hold the increased costs that are hitting the market currently.

He tips that the price of accessories could go up at retailers by up to 20% due primarily to the increase in shipping costs that have seen the cost of a 40-foot container rise from $3,500 to 10,500 this year.

Among the categories where Laser is tipped to achieve growth is Pet Tech, Connected Home with the business benefitting from demand for smart light bulbs and in the PowerBank market as consumers return to travelling.

A major supplier at Big W and at Harvey Norman, where he sells tens of thousands of smart light bulbs Lau claims that the “value and affordable premium markets are where his Company competes best, and it is these markets that are “growing.”

Critical to Laser Corporation management is ‘Responsible Sourcing” and “Sustainability” claims Lau.

“Retailers are under pressure, and they are demanding that their suppliers meet their requirements when it comes to approved products and being part of the responsible business alliance” he said.

ChannelNews is aware that JB Hi Fi and The Good Guys are auditing suppliers and that all suppliers must meet their strict new conditions relating to responsible sourcing.