SOUTHERN PRODUCTS, INC.
dba SIGMAC USA
A Unique New Mid-Priced Brand of Consumer Electronic Products
Southern Products, Inc. (OTCBB: SNPD) is a publicly reporting consumer electronics company incorporated in the state of Nevada. With a newly-engaged, exceptional management team in place, Sigmac intends to establish a globally recognized line of consumer electronic products. The plan is to begin by entering into a series of large-scale distribution agreements for the sale of branded, mid-priced televisions, monitors and peripherals in the United States, and then expand internationally as brand recognition is developed and new markets become available.
Significant recent events in the television industry contribute to the timeliness of this plan:
· The current volume leader, Vizio, has recently revised its pricing structure and repositioned itself from the low price leader to the most expensive high priced tier and solutions.
· Sony, the brand recognition leader, has announced the elimination of its consumer electronics manufacturing capability and its intention to become strictly a reseller of Sony branded products from third-party manufacturers. Sony has also lost significant market share over the past year.
· During the recent recession, the lowest priced, third-tier brands experienced significant losses and have abandoned the market.
As a result of these events US national retailers are searching for stable, knowledgeable companies to provide mid-tier, level two pricing with excellent service and industrial designs. They believe that Sigmac, with its strategic relationships and experienced management, is well positioned to fill this strategic need. Indeed, initial negotiations with major retailers and distributors in the US have resulted in initial test sales of over 6000 Televisions in 2012 to the following Dealers/Distributors:
The current world market for LCD Televisions alone exceeds 72 billion dollars U.S. per year and is growing at a rate of 24% per year (Business week, Bloomberg article). According to CNET the US market exceeded 12 billion for flat panel Televisions in 2010 and Vizio itself shipped over 2.6 million flat-panel Televisions in the 4th quarter of 2010.
They have recently established a facility necessary for Research and Development in China, and another designed for Assembly, Customer Service, Sales and Marketing in the United States. Their component parts are manufactured to the highest quality international standards in state of the art, ISO – 9000 certified facilities in Japan, Korea, and China and then shipped to the U.S for assembly. To assure a high product quality, maximize supply chain buying power, and minimize production costs, They have developed strategic relationships with leading manufacturers of the component product parts in these countries.
A highly qualified management team lead by Mr. Edward Meadows is in place with a track record of successful international business development experience, established sales relationships and existing contacts with major U.S. distributors, including Wal-Mart, Costco, Best Buy, Fry’s Electronics, and Tiger Direct. The following is a brief discretion of Mr. Meadow’s background in the consumer electronics industry.
Edward Meadows, Their newly appointed President, Chief Executive Officer, Chief Financial Officer, Treasurer, and Director, has over 20 years experience in the consumer retail industry. Mr. Meadows graduated from The Ohio State University in 1969 with a major in accounting and a minor in marketing. He passed the CPA exam in 1970 on his first sitting for the national exam. For the past five years Mr. Meadows has provided financial consulting and sales management expertise to multiple companies including westinghouse Digital and various other large entities in his own consulting practice awaiting the proper opportunity to reenter the consumer electronics channel. He was formerly the interim CFO of the television manufacturer westinghouse Digital, LLC, and prior to this period he also worked as an auditor with PricewaterhouseCoopers. In addition to his financial experience, Mr. Meadows has over 20 years extensive experience selling to the national accounts of Wal-Mart, Costco, Fry’s Electronics, Best Buy, Office Depot, Staples, Target, Tiger Direct, Sam’s Club, and Radio Shack which are current and or long term goals for SIGMAC USA.
Additionally, Their new Director of Sales, Mr. Jim Hill, is returning from retirement and has over 25 years’ experience selling to the following national retail accounts: Wal-Mart, Sam’s Club, Costco, Office Depot, Staples, Fry’s Electronics, Circuit City, Tiger Direct, Best Buy, Buy.com and Radio Shack. He has held senior sales positions with HP, Xerox, TEAC, Maxtor, Priam and Nero and also sold to OEM accounts at HP, Texas Instruments, Motorola, Gateway Computer, Dell Computer and Compaq. In addition to his sales experience, Mr. Hill brings a strong technical background and has managed technical support organizations.
Initially They intend to raise $2.5 million US. This funding will be used to finance production runs for distribution to major U.S. retailers and expand assembly and distribution capacity in satisfaction of current purchase orders. The company is currently domiciled in Santa Ana, California, but planning a move to a facility in Nevada.