By G. Sharmila
In our previous article, Versalink Holdings Ltd CEO Matthew Law shared the story of the company’s beginnings and his early experiences with the furniture business. Today he talks about where the company is at and where it is headed.
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Ask any entrepreneur and he or she will tell you that the road to success is one that is paved with challenges, as well as opportunities. For Matthew Law, who grew up surrounded by the furniture business, the road has not been any different.
One of the toughest times he had was during the peak of the global financial crisis in 2008.
“During the 2008 economic downturn, revenue fell and during certain months we had fewer orders from clients. However, we didn’t retrench staff; instead we restructured the company to increase efficiency and we simplified processes. It took us three to four months to overcome the situation, but the company still made profits,” recalled Law.
What lessons did he learn from this?
“When you want to achieve something, never give up easily. Every downturn is an opportunity for a new transformation,” he said.
Matthew Law
The challenges haven’t stopped there for Versalink and Law. Today, Versalink, which derives some 60% of its revenue from exporting office furniture, faces stiff competition from other companies in the domestic market.
Its competitors in Malaysia include Euro Chairs Manufacturer (M) Sdn Bhd, a subsidiary of Bursa Malaysia-listed Euro Holdings Bhd, Bristol Sdn Bhd, and Art Matrix Sdn Bhd.
But the competition does not end with local players. Law explained that competition from China and Europe also poses a challenge for Versalink.
So how is the company countering the competition?
“We are focused on designing better products at reasonable prices to suit different market segments,” said Law, who added that Versalink has “got a number of sizeable projects overseas and in Malaysia”, without divulging the details of these projects.
Has the weakening of ringgit affected the company’s business?
“We already predicted the fall of the ringgit and priced that in. We are not too affected because we are not dependent on one supplier or one country,” Law explained.
Financially, the company seems to be doing rather well. Versalink, which is listed on the Singapore Exchange (it went public in September last year), earned RM59.8 million in revenue last year, with RM21.4 million in gross profit. Export sales contributed 61.7% of its revenue last year, while domestic sales accounted for 38.3% of its revenue.
When asked why he decided to list Versalink in Singapore and not in Malaysia, Law said with a rather sheepish expression: “I believe Singapore is a better platform, in terms of our company image in the eyes of the world.”
How different is the company’s aim from when it started out?
“Our company’s aim when it started out until now is the same – we want Versalink to be present worldwide and become a brand everyone knows about,” said Law.
The company, whose initial premises were in Sungai Buloh, moved to its current premises in Klang, Selangor, in 2006, he said.
“For Malaysia, we set up a showroom in Nusajaya last year. We have another showroom in Bandar Sri Damansara. This year, we will be opening a showroom in Penang and we are planning for another showroom in Sabah,” he said of Versalink’s plan for this year.
According to Law, the company is also open to exploring new overseas markets such as Indonesia and the Philippines. However, he didn’t provide a timeline of when the company will begin selling to these markets. He did say, however, that Versalink is launching a new product line later this year, which will be launched in Malaysia first.
“We have a number of good projects overseas, due to the product range that we have. We offer our clients short delivery time, reasonable pricing, and high quality,” he said when pressed about current projects the company has in hand.
Has he ever turned down a client?
“Yes. This was simply because we didn’t want to deliver to a customer when we couldn’t do so. We have turned down clients due to technical issues too,” he shared.
“We don’t give empty promises to clients; we deliver what we say we will do. As a result, many clients have been working with us for as long as 10 to 15 years,” he added.
If he could go back and speak to his 20-something-year-old self, what would he say?
“For the past 20 years, I have followed my father’s advice. If I had done it alone, it could have been very costly to the business. The business could have been gone overnight. I treasure the advice that I received from my father,” said Law.
For now, the focus is on growing Versalink, Law said, adding that he will continue to do this with input and support from his family.
Yesterday: Building solid foundations
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