Cyclic forges another deal in expanding its online sales network
Cycliq Group (ASX:CYQ ) announced on Monday that it had added Australian cycling and multisport retailer Pushys Online to its rapidly expanding online sales and distribution network.
CYQ is the leading supplier of high-tech bike safety and action camera accessories, including rear-facing all-in-one safety light and HD camera devices.
Pushys is one of Australia’s largest online cycling retailers and was recently included in the 2017 Power Retail Top 100 list. The group is Australia’s leading online bike retailer selling top brand Road, Mountain and BMX bikes, Scooters and Multisport accessories with highly respected knowledge and skills in the local market.
This arrangement comes only days after CYQ secured an agreement with online bike supplier Cycling Express which effectively expanded the availability of the company’s products across the Asia-Pacific region.
This initiative was well received as it came on the back of the company launching its cycling products on Amazon Japan just over a week ago.
Harking back to this most recent collaboration, the company’s Chairman, Chris Singleton said, “The agreement with Pushys is further evidence of Cycliq implementing our revised sales and marketing strategy with the company focused on increasing the channels by which our customers can access our products”.
The agreement will also increase the visibility of the company’s brand across Australia as Pushys promotes CYQ’s products on its online sales platforms.
Margin expansion through direct sales vital in growing the bottom line
As is the case with the other recent agreements forged by CYQ, direct sales accounts with online retailers streamlines the distribution process for the company’s products and results in higher margins for both CYQ and the retailer.
Singleton also highlighted that road safety for cyclists is at the core of the value proposition for the group’s products, and on this note he anticipates the agreement with Pushys will introduce CYQ to a new segment of customers who are involved in multi-sport activities such as triathlons, BMX and mountain biking.
In the last three months, the company has made rapid progress, adding ten new online retailers to its network of global distributors, more recently including Cycle Life in Malaysia and prominent Australian distributor, 99 Bikes.
Singleton said on Monday that CYQ is already beginning to see encouraging sales figures as a result of the shift in the company’s distribution strategy, and consequently data for the six months to June 30, 2017 could attract investor interest.
In the last three weeks the company’s share price has increased by approximately 20%, suggesting that management’s progress in expanding its sales network is gaining recognition.
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