Neveast swivels to home market
Early in the novel coronavirus pandemic office furniture suppliers got the rug pulled out from under them due to the rapid shift to remote working, but Neveast Supplies Limited was able to capitalise on the new demand in the home office market.
While the temporary lockdown of the country last year brought operations and sales to a screeching halt, Neveast’s General Manager Christina East told the Jamaica Observer that the company received a flood of orders for office equipment and supplies from stay-at-home workers.
“In 2020, sales dropped by 15 per cent but picked up by November and now we’re almost on par for sales pre-COVID-19. More people are buying office furniture for their homes, so we have had to ensure that we fill the need and it has worked out pretty well,” she said.
“Online purchasing of furniture is becoming a big deal. More and more people are not leaving their homes and they want instant gratification. People buy the furniture in increments, they purchase the desk first and then you’ll see them come back and get the chair, and then stationery, until they have an entire office at home,” East added.
Since the health crisis, Neveast has partnered with companies, in particularly those in the local global services sector, to provide the necessary stationery and furniture required for a seamless transition to remote working for their staff. This also included providing personal protective equipment and hand sanitisers.
Established in 1962 as a stationery provider, Neveast then expanded into offering furniture and office supplies, and now civil works and interior construction for companies. It currently operations from two locations — 10 Skibo Avenue, Kingston, and Bogue City Centre Unit, Montego Bay.
The company, founded by Neville East, is now run by second-generation members of the family, who oversee a workforce of 55 in both locations.
Neveast’s best-sellers, the 48-inch desk and mesh task chair, was featured in an Instagram-led marketing campaign, which centred on the ergonomically and cost-effective furniture the company offers.
East noted that alongside the new home offices market, there was an emerging demand for school equipment for children at all school levels due to the rise in online schooling.
“You’re not only setting up yourself, but also your kids as everyone has to work in tandem from home. We imported [classroom furniture] and they moved pretty quickly so we realised that there’s a demand there. Importing is really pricey, because we try to buy stuffs of quality that will last. A desk purchased for a 15-year-old should be able to continue to serve them at the university level as well,” East told the Sunday Finance.
HIGH PRICES, LOGISTICS CHALLENGES
The general manager told the Sunday Finance that the company, which imports from Canada, the US, China and India, faces transport and logistics issues due to the health crisis.
“We have no control over what COVID-19 does in another country but it slows down their production which slows down our deliveries. When you order a container from China, and yours is ready to move, the shipping company won’t allow the ship to leave the dock unless it is completely full. So the production time of your items make take three weeks, plus another three weeks to get here, but there is a delay because the shipping company is not ready to move,” East explained.
Furthermore, East noted that because of COVID-19, the freight charge of containers have increased significantly.
“We’re talking from US$3,600 to US$8,000, so it’s a major jump that affects your landed cost here in Jamaica. We have to increase our prices in some areas, but we try to honour as best as possible what we quoted our customers. In most cases people pay a deposit for any of their contract on special order items,” she continued.
To this end, the company has implemented contingency plans in the case of dramatic fluctuation in the exchange rate.
“We only know how to win, we don’t know anything else, and when we do lose we take it personal. Regardless of what anyone thinks, I think that Neveast is the number one company in stationery, office supplies and office furniture,” East said, indicating optimism in remaining a dominant player in the local office equipment and supplies industry.
She indicated that the company has acquired the 15,000-square-feet property adjacent to the Kingston location on Balmoral Avenue. In dedication to Neveast’s late director and her husband, East shared that the David East Building will then become the company’s warehouse and showroom, and is scheduled for completion by 2022.
“[David] was institutional in making sure that this land was acquired. It was a significant hit and loss on the company because he was a key person to Neveast due to his vision on the growth of the company and how and when we delivered,” she expressed.
Neveast also has the revamping of its website on target for 2022, with the expectation to expand its delivery division.