Consumer electronics firm Prism+ has announced plans to enter the Philippine market after obtaining $45 million in institutional funding from VC firm TNB Aura.
This comes after the firm shifted from solely selling consumer electronics to also entering the smart home appliances space by selling its own line of smart air conditioners.
In a release, Prism+ says the funds will go to the development of new products and expansion into Southeast Asia.
Explaining the rationale behind the backing from TNB Aura, Prism+ says this came after it entered into the home appliance space.
”Through its research, the VC firm [TNB Aura] concluded that the industry was ripe for disruption and noted that Prism+ was well-positioned to be a major player in the region with its direct-to-consumer business model and value propositions – such as its emphasis on customer service, pricing, product quality, and product features.”
Unlike other brands that traditionally sell their products in physical stores or through retailers, Prism+ has been selling directly to consumers mostly via online platforms. By doing so, they claim they are able to offer lower prices by cutting out the middlemen. Besides Singapore, the company has introduced the same business model in Malaysia and Australia and it now wants to replicate this model in the Philippines by early 2023.
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However, Prism+ now says to optimise its entry into the smart home appliance market, the company has set up offline channels, having set up three store outlets in Singapore and one in Malaysia. Prism+ plans to set up an additional three stores in the Republic, with possibly more outlets next year.
The company says that it first partnered with furniture retailer Hipvan in 2021 for a permanent in-store Prism+ pop-up showcase at Suntec City, and its success “encouraged the brand to explore offline roadshows around Singapore in 2022 and cemented the brand’s belief in launching its own retail stores.”
Prism+ managing director Jonathan Tan describes the brand’s offline growth as a natural evolution from its e-commerce roots. “In this post-pandemic landscape, we are seeing consumers return to malls and retail spaces in full force. People crave the personal touch that has been missing,” he says.
Tan says that the electronics industry has long relied on brick-and-mortar stores to sell the immersive experience of their products. But for Prism+, it hopes to break the mould and show customers that a premium home set-up need not come with a hefty price tag, with the company intending to keep its direct-to-consumer approach across all its channels.
