Blue Power eyes Amazon

Blue Power eyes Amazon

Soapmaker hoping to tap into a wider market through online distribution

Observer business reporter

Sunday, August 18, 2019

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Soap maker and lumber distributor Blue Power Group Limited (BPow) is hoping to tap into a wider market by distributing its soap product lines through online channels.

Managing director of BPow, Major Noel Dawes, told SUNDAY FINANCE that the company hopes to sign a deal with Amazon — the world's largest online retailer and a prominent cloud services provider.

“We're looking at Amazon, but that is not being handled directly by us; we don't have the expertise to go to Amazon on it,” he said.

“One of the problems is the cost that would be associated with it; to get the soap from Jamaica to the US, to Amazon, for distribution, so we're working with one of the distributors overseas who has a line of products, who distributes for us, and has a network [already] established,” he continued.

He added that BPow has employed two different set of distributors in the US, who are networking and going through the respective chains to negotiate and attain a contract with the online retailer.

BPow's move online could open up several overseas markets for the company, as it faces aggressive competition in the Caribbean region.

The company stated in its report for the financial year, which ended on April 30, 2019, that one Caricom member country has made a number of attempts to disqualify BPow's exports to member countries on the grounds that the company does not meet the “transformation criterion established in the treaty”.

However, it added that BPow have submitted documentation and precedents to the Government of Jamaica to prove that it meets the necessary requirement and has been supported by the manufacturing sector's respective authorities. Important to note, is the company's continued debt-free operations.

The managing director told SUNDAY FINANCE that BPow currently has no interest to pay from borrowing.

“We're very prudent; we didn't feel that we needed to at this time, go to the market for any loans; we did a $80- million expansion in the last financial year and we did it out of cash flow, so why do we need to go and buy when we have generated the capital internally,” he said.

“Now, don't get me wrong, a little bit of debt sometimes is good, but [BPow] has to look at where [it] is, in terms of positioning and what is it we would like to achieve.”

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