Harris Technology Tries To Make An ASX Comeback After Being Flogged By Officeworks
Harris Technology, who has had a questionable ride since Ron Harris flogged the company to Wesfarmers in 2006, is trying to make a comeback after Anyware Corporation acquired it in 2016.
Last week they appointed former Philips and Belkin executive Alan Sparks to the board of Harris Technology, who is also the former CEO of Cellnet.
The company claims that they want to become the leading online e-commerce destination in Australia despite Harvey Norman JB Hi Fi and Officeworks dominating the PC market. They will also have to compete up against Mwave, who is looking to turn over $150M this financial year in the B2B market.
In a filing with the ASX, Harris Technology said that it had recently raised $4.9 million and had achieved record sales in Q1FY21 of $9.8m, up 44.1% on the June quarter.
This is a small amount and close to what JB Hi Fi and Officeworks achieve on a good day selling PCs and related gaming gear. It is also having to compete against Catch, which is owned by Wesfarmers, who offloaded Harris Technology because it was not perfroming as a standalone enity.
They claim that their advertising ‘expense per dollar sales is almost zero’
Harris claim that it is currently working with the major online e-commerce platforms such as Amazon, Kogan, Catch and eBay to get traction in the market.
Sparks, who has been taken on board because of his distribution expertise, has over 40 years experience.
He is a member of the South African Institute of Chartered Accountants and Graduate of the Australia Institute of Company Directors, he was also Vice President of Belkin Asia Pacific based in Hong Kong. He was also Carrier and Senior Vice President – Philips Consumer Electronics, APAC based in Singapore.
A search of the Harris Technology reveals that the site is not only competing with the mass retailers, they are also facing competition up against the likes of Scorptec and Mwave who are matching and beating them on price.
The company claims that with additional capital now available, Harris Technology is well positioned to take advantage of the retail “online revolution”. There has also been in increase in inventory to $4.7m, from $2.2m, in Q1FY21.
Management claims Harris Technology competes in synergy with, not against, its platform partners such as Amazon, thus the business effectively grows with these platforms to gain increased exposure, sales optimization, and brand recognition.
It claims Harris Technology has partnered with additional marketplace platforms due to its success on Amazon and its extensive range of IT/CE product coverage.
The company has not said how it is coping with stock shortages with several of their SKUs coming up with ‘product not found’ including products listed on their home page.