Acrossmedia International (Acrossmedia) has entered into a joint venture agreement with the Taiwanese company Marastt Inc. and is planning to enter the Asian market with in-store TV solutions tailored to the retail sector.

 

"One major Asian city has the same market potential as the entire region of Scandinavia, and with the development of our own screen solutions, we will be able to tailor our products to the individual needs of each customer. Our objective is to target certain lines of business in order to become a significant and visible player in the Asian market", explains CEO John Conrad Jensen.

 

Alongside its operations in Denmark, Acrossmedia has established a sales subsidiary in Taipei, in which Robin Lee has been appointed sales director, responsible for a sales department consisting of 4 market development managers. Within the next two months, project managers, logistics managers and several sales persons will be appointed, who will be responsible for selling in-store TV to the Taiwanese retail sector. Furthermore, subsidiaries will be established in Shanghai and Beijing (China) as well as Bangkok (Thailand). The strategy for establishing more sales subsidiaries all over Asia is already in place.

 

The objective to conquer Asia is facilitated by the fact that Acrossmedia (and its parent company Frontstairs A/S) has entered into a joint venture agreement with the Taiwanese company Marastt Inc., headquartered in Taipei.

 

Acrossmedia has also acquired the Chinese development company Comrus Electronic Tech Co. Ltd. (Comrustech), which is situated in Shanghai and produces media players, motherboards, DVB-tuners, MP3- and MP4-players. In close collaboration, the two companies are developing LCD screens with integrated PCs and graphics boards. As a result, the Comrustech development matches the Acrossmedia product line perfectly and facilitates the objective of conquering the Asian market.

 

In light of the acquisition, Acrossmedia will be able to influence the development of hardware as well as price levels, and will have not to rely on hardware solutions manufactured by external companies.

 

As an added bonus, Comrustech has a "manufacturing licence" in China, which will prove a great advantage, as hardware can be manufactured at significantly lower costs than in Europe.

 

More precisely, Acrossmedia will be able to offer customers a specially designed solution that differs greatly from existing solutions in the market. The advantage of the Acrossmedia in-store TV solution is its wireless connection and the fact that a PC (media player) is integrated into the screen itself. With an integrated media player, all updates are made through the wireless connection, so the screen only needs to be plugged into a normal power plug. The screen may be built into the store's furniture, hung in a wire from the ceiling, hung from the wall like a sign, or placed flat on the wall.

 

"The advantages of the wireless technology are great", explains John Conrad Jensen; "We can save up to one third on our installation costs in comparison to the traditional screen solution, as we do not need cables, wires etc. Also, the actual installation is somewhat easier, as the screen is ready for use as soon as it is plugged in".

 

At the same time, however, Acrossmedia's in-store TV is designed in such a way that it also takes the traditional solution, which has been installed in a wide range of stores in the Danish market, into account. The traditional solution consists of an external media player (manufactured by Acrossmedia), which is connected to one or more LCD or plasma screens, which in turn present the actual spots.

 

With the Acrossmedia in-store TV solution, customers are able to create, edit and update spots by using an entirely web-based administrative system to edit the so-called templates. With its user-friendly interface, the template system enables the customer to update spots and see immediate results. As a result, customers experience a high degree of independence in comparison to traditional in-store TV solutions.

 

The customer logs on to the system from his computer, edits the spot by changing the price or product, and shortly hereafter the spot is presented in the store. As the system is web-based, the customer can log on from any location. One person can easily administer different spots in several stores, simply by using the same system.

 

Also, the company profile is programmed into the system, meaning that the store owner can create only spots that meet the criteria which have been determined beforehand. As a result, the same style is maintained throughout the spots - even if a large number of stores and several administrators are involved.

 

The maintenance and control of the software is centralised at the Acrossmedia office, so all updates are automatically carried out in each store on the basis of predetermined schedules. Neither customers nor end users are affected by the updates.

 

John Conrad Jensen emphasises: "We specialise in the production of professional video spots and focus on creativity as the most important factor. At the same time, we seek to collaborate closely with the customer in order to ensure that each and every spot conveys the correct message to the end user. Our production of video spots is of great value to our customers, as our knowledge of consumer behaviour enables us to offer our customers guidance and advice, thus ensuring the creation of spots that meet the exact needs of our customers. In other words, we offer them a complete solution consisting of in-store TV and video spots. In addition to in-store TV, the spots may also be used for advertising on the internet or on TV."

 

Customers in the Danish market include: 7-Eleven, SuperBest, A-apoteket, Profil Optik, Citroën, Telia, ChaChaCha, Rosendahl, AFA JCDecaux and ClearChannel.

 

In comparison to Europe, the Asian market shows great potential. Shopping centres in for instance Taipei contain more than 1000 stores - each of which is a potential customer.

 

The number of competitors is limited in comparison to Europe, but the IT infrastructure is by far more well-developed.

 

The newly established sales subsidiary in Taiwan will be responsible for selling in-store TV solutions to stores in Taipei and other major cities. Subsequently, the companies whose products appear in the stores will be contacted by the spot department, seeking to sell and produce the actual spots. Each customer’s needs will receive close attention, ensuring that the in-store TV solution is tailored to the specific line of business in which the customer operates.

 

Initially, the spots are to be produced in Denmark, primarily as a result of the fact that Asian customers appreciate the simple style and design of spots created in Europe. Acrossmedia records microfilm in HD quality and also offers more traditional product animations.

 

In 2007 spot production departments will be established in China and Taiwan.

 

As Acrossmedia will be in charge of its own development, production and sales of hardware and software, the company will not have to rely on external suppliers and manufacturers. This will prove to be of great value to Acrossmedia's customers. Also, the joint venture agreement with the Taiwanese company Marastt will be of great significance, as Marastt possesses the cultural knowledge needed to enter the market, and has a substantial network.

 

John Conrad Jensen concludes: “The challenge lies in the task of aligning our resources, enabling us to meet the increasing demand. With the joint venture agreement with Marastt in place and the acquisition of Comrustech, we have managed to come full circle. Now we will be able to develop and produce our own hardware and software, as well as produce, sell and advertise screen solutions for the Taiwanese and Chinese markets. Step number two is to conquer the rest of Asia”.

 

The objective is to implement the same sales concept all over the world.

 

CEO John Conrad Jensen, tel. + 45 70 20 40 20

Sales and project coordinator Jacqueline Pedersen, tel. + 45 70 210 240

Sales and marketing coordinator Birgitte Sætre Jakobsen, tel. + 45 70 20 40 20