THE YEAR IN REVIEW
The Asian audiology network is still in its infancy. The audiology market in Asia is still under-developed compared to many other countries, and Bay Audio is taking a leadership position by introducing its retail focused, customer-centric business model.
In FY12, the emphasis was on developing the infrastructure of the business and upskilling sales staff. The Taiwan stores, in particular, showed a pleasing improvement with growth in both value and volumes of sales. A new relationship was negotiated with MedRx, a leading provider of hearing diagnostics equipment, and Bay Audio is now their exclusive distributor in Taiwan.
In our other Asian markets, Malaysia is also performing well, however our three stores in Hong Kong and Singapore have underperformed against expectations. In part, this is due to the lack of size in these markets and escalating rents in Hong Kong and in Singapore, which led to the closure of one store in each of these countries during FY12. We are currently looking at other options for our retail models in these markets.
Bay Audio Asia is still in a development phase and we will continue to invest in the business to ensure a solid business platform is in place to drive future growth. In FY13, the focus will be on maximising the potential of existing stores, and increasing sales.