EASYLINK SOLUTIONS INC. DESIGNS AND MARKETS PLUG-AND-PLAY EXTERNAL STORAGE DEVICES THAT EXPAND THE CAPACITY OF YOUR CURRENT MEDIA SYSTEM; OUR MEDIA PLAYERS ENABLE YOU TO TRANSMIT DIGITAL CONTENT TO ANY TELEVISION IN YOUR HOME.
Our brands offer a comprehensive portfolio of products and services for the consumer, inspired by nearly many years of insight gained serving the China's technology industry.
Easylink Solutions is concerned with the collecting, managing and transmitting uninterrupted digital information. We are in the manufacturing of hard drives and solid state drives particularly external and portable storage devices.
The primary focus of this brand is media broadcast and storage, but we also extend our capabilities to serve specialty needs in the areas of information technology, computers and telecommunications. Our high-capacity drives securely store videos, music and photographs and deliver your content to your television fast and without comprise in quality.
We market our products and services primarily through a highly networked group of independent and company-owned dealers. We extend our reach with a presence in retail and web-based channels.
Our strategy is to grow by leveraging our deep understanding of information technology and offer solutions for new ways of working, new customer markets and new geographies.
Easylink Solutions is a publicly-traded company in headquartered in Hong Kong, China.
MARKET OPPORTUNITY
China's economy has demonstrated strong growth and has become one of the strongest economies in the world. China's GDP has grown at a compounded annual rate of about 15% since 2002, making China the fourth largest economy in the world. China has a population of over 1.3 billion and an available workforce of over 800 million. The vastness of China's human resource base together with its relatively low cost of living makes it a cost-effective manufacturing base.
THE DATA STORAGE INDUSTRY ANNUALLY SHIPS SOME 540 MILLION HARD DRIVES. INDUSTRY OBSERVERS FORESEE A COMPOUND ANNUAL UNIT GROWTH RATE OF 5.6 PERCENT FOR THE YEARS THROUGH 2013.
China's consumers have accepted Personal Media Player (PMP). With the rapid development of China's economy and the improvement of the MP Player's technology and functions, China's MP player market has stepped up to the expressway.
China's PMP player market has the following remarkable characteristics: abundant functions, cost reduction, large screens, large capability, and most especially, support to RMVB format and HDD-PMP, which are becoming the mainstream of the market.
Affected by the vigorous supply and demand, China's PMP player market has kept up its rapid development in 2007. The sales volume of China's PMP player market reached 1.212 million sets, up 129.1 percent over 2006; the sales revenue reached 2.26 billion Yuan, up 85.5 percent over 2006.
With vast improvements of our technology and function, and the cooperation between our manufacturers both upstream and downstream, the price of our media players are very accessible; securing its' popularity with Chinese consumers.
Global PMP/MP player unit shipments will rise to 268.6 million units in 2011, expanding at a CAGR of 13 percent from 128.7 million units in 2005, iSuppli has predicted. Global PMP/MP factory revenue will rise to $21.5 billion by 2011, growing at a CAGR of 7.4 percent from $14 billion in 2005. *
* statistical information provided at market research firm iSuppli Corp.
BUSINESS DEVELOPMENT STRATEGY
EASYLINK SOLUTIONS INC. development strategy will be focused on promoting and marketing its current products and services throughout the urban centers in China.
EASYLINK SOLUTIONS INC. long-term corporate development strategy is built around four key foundations:
Development of new products & services - this includes gaining accreditation of new technologies and best practices for its managed IT services and specialization of online marketplaces as well as entirely new media formats.
Acquisitions, joint ventures, and strategic alliances - in addition to organic growth, EASYLINK SOLUTIONS INC. intends to pursue a growth strategy through acquisitions, joint ventures and/or strategic alliances to drive revenue, increase market share, and enhance profit growth.
Transform a growing user base into multiple revenue streams - EASYLINK SOLUTIONS INC. strategy includes gaining a larger "share" of its clients' operating budget, specifically the IT budget. This includes cross-selling and up-selling new value added service offerings to its existing client base.
Cultivate and attract highly skilled management and employees - EASYLINK SOLUTIONS INC. objective is to develop a corporate culture of entrepreneurship, integrity, passion, and innovation with an unwavering focus on customers satisfaction.
BUSINESS MODEL
The beauty of EASYLINK SOLUTIONS INC. business model is that it is diverse, thereby not placing all of its eggs in one basket. The intention is to have multiple revenue streams/sources and types so that if for instance, software sales are down, network services might make up for it. The following is a list of the potential types of revenue streams:
reseller product sales - manufacturer or producer to distributor.
reseller services sales - buying service from provider for resale.
sale of services - selling resources or time at a fixed or variable rate depending on the resource, the work, the size of contract, etc.
agency sales - selling products or services as an agent on behalf of a manufacturer or producer. This typically results in agency fees or commissions.
recurring revenue streams - this is potentially the most powerful aspect of EASYLINK SOLUTIONS INC. business model as these revenues "recur" on the basis of an interval of time: for example, monthly, quarterly, or annually.
SPECIAL PRODUCT OPPORTUNITY
EASYLINK SOLUTIONS INC. has already developed a new product to be introduced to the retail electronics market. Although there are some similar products on the market, this product is still very early in its product life cycle, and the level of competition is still low and this product has enough differentiation to make it attractive and marketable.
EASYLINK SOLUTIONS INC. has produced an extremely high quality home digital media center to play digital multimedia files on your TV/home entertainment or computer system. It is HD compatible, playing a variety of media formats from a 500GB internal hard drive. It is expected to be an aggressively priced product providing tremendous value to the end user while producing a high quality media experience.
Our Strategy
Easylink is a product development and consumer retail specialty company whose mandate is to develop proprietary and private label products with broad and functional appeal at popular price points. The target demographic is in the $50,000 - $150,000 annual income range but they will also target a younger customer base particularly with lower price items at their online store.
Plans also include B-to-B and B-to-C sales, targeting corporate gift giving with customized account management and volume pricing options. Exclusive Easylink private label items may also have client corporate logos imprinted on request.
OEM Manufacturing
The Company believes that controlling the manufacturing of its product is the simplest and most direct way to lower product cost and increase bottom line revenues. Other players in the sector who did initially strive to be fully integrated have taken their eyes off this key part of the integration process and focused their efforts more exclusively on managing day to day sales. The result in the case of several companies in this sector has been that margins were not high enough to produce healthy net revenues. Easylink's policy is to exclusively design and sell products that are quality manufactured to its specifications. Management has engaged direct product sourcing experts in each desired manufacturing region to advise on obtaining the best combination of price and quality for each individual product.
Multiple Sales Channels
Easylink is a fully integrated sales company, delivering its own OEM products to the market through four proven sales channels united by "As Seen On TV" style branding and marketing.
Demonstration Direct Sales at Select Home and Trade Shows
Direct Response Television (DRTV) infomercials
Retail Stores
e-Commerce Web Stores
Demonstration Direct Sales at Select Home and Trade Shows
Every year there are hundreds of consumer trade shows as well as state and county fairs, exhibitions. Other venues for demonstration direct sales include kiosks in malls, rentals in large retail stores, etc.
Consumers who see our products at these shows are likely to make further purchases buy by going online, through our magazine, or by purchasing from a retail outlet as a result of the branding. The concept of pitching items directly will be carried on through our television infomercials, retail outlets as well as with demonstration areas and/or looping videos of product demos. Demonstrators will be involved in the infomercials and the direct sales at shows and through guest appearances and trainings at our select retail stores.
Direct Response Television (DRTV) infomercials
By tapping into the $200+ Billion DRTV market, we market our products on television to generate sales and to create consumer awareness of our products. This in turn drives demand and sales in the other three sales channels.
Retail Stores
Products with sufficient demand are sold through various retail stores ranging from specialy "As Seen On TV" stores to larger national retail chains.
e-Commerce Web Sites
Most products sold through our other sales channels have accompanying e-commerce web store that serve to capture additional and repeat sales from all the sales channels, present additional options and accessories for purchase, and provide consumers with valuable information about the products.