Supply digital TV receivers, antennas, led equipment

The main type of our activity is production and supply on Russian market of digital terrestrial receivers brand "TENEX" for the reception of a television signal format DVB-T2, as well as associated equipment: antennas, cables, external hard drives. In this area we work with Dec 2012.

Digital terrestrial receiver to date is the flagship sales. This circumstance is due to the fact that the territory of the Russian Federation in the framework of the Federal target program there is an active implementation of the digital television broadcasting standard DVB-T2. To be able to adopt the format of the broadcast television receivers, not equipped with a tuner that supports DVB-T2, and you want to use this receiver.

In accordance with the decision of the Government Commission a full transition to digital television in Russia is scheduled for late 2018. Due to the fact that the introduction of DVB-T2 format in the Russian regions occurs in stages, the demand and volume of sales every month only increase. The main advantage of the application of the consumer digital terrestrial receiver is a low cost of acquisition and content, which at times (and in some cases dozens of times) below the price of buying a new TV tuner that support DVB-T2 format. The quality of image and sound is not inferior to even the most advanced and modern models.

According to expert estimates, currently the total demand of this product is about 45 — 50 million units or 15 – 17 million per year. (This amount is calculated based on the average number of TVs that do not support DVB-T2 format that is used by the population of the country at the moment.). In turn, the market consists of about 15 permanent members, of which about five — largest, with sales of an average of no more than 200 thousand receivers per year, the rest collectively account for no more than 600 thousand pieces per year. Thus, the currently existing offer covers potential need only slightly more than 10 %.

In the market of digital terrestrial receivers, we are present with Dec 2012 trademarks "Avest", "Elect". Since July 2013, successfully promoting its trademark "TENEX", which produced not only the receivers and indoor antennas, connecting cords. In the field of importing electronics from China since 2011.

In the initial phase, we based on the market analysis, carried out the search and selection of manufacturers in China whose products meet the required parameters. Next were testing samples and brought them up to the required level of quality and consumer properties, allowing us today to provide high competitiveness of our digital terrestrial receivers brand "TENEX" and a steady demand for them.

A business process is constructed as follows. Made a down payment of 30 percent after 30 days, the remaining 70% delivery time – 20 days. In order to optimize logistics schemes in time and cost, shipping goods in Russia is carried out by third party organizations performing the functions of the carrier, declarant, the Commission, in the framework of agreements of the Commission in the foreign economic activities and delivery.

The geography of sales today includes, along with the Far East and Siberia, Moscow, St. Petersburg, Arkhangelsk, Voronezh, Lipetsk (list current at date of counterparties are presented in the Appendix). Among the buyers of our products along with other are also present retail outlets.

Our share in total sales of digital terrestrial receivers for the last year amounted to about 2 % (about 33 thousand). The low level of this indicator is due solely to the lack of working capital, which does not allow to order and import a sufficient volume of goods (sales only provide the needs of the existing contractors and it was only 60 %). Estimated commercial Director, if there is sufficient funding in the framework of the existing system of sales shipments can be in spring and summer (period of decline)6 – 8 thousand PCs receivers per month, in autumn-winter (period of sales growth) – 10 – 12 thousand pieces. Given that the company had insignificant volumes, the search for contractors was carried out in the passive mode. But even this approach has allowed to generate a database of potential buyers, numbering about 260 counterparties, of which 89 are current, the others are bypassed for the above reasons. However, we managed to create the conditions under which receivers under the brand name "TENEX" today have a reputation for quality (scrap rate is significantly lower than other brands), is available with an attractive design of the product. It should also be noted that the sales growth provided by the expansion of the range related products: indoor antennas, outdoor antennas, connecting cords.