Online accessories retailer Mobile Fun will launch its own distribution business in early 2014.
The firm says that it will utilise its existing supplier relationships, in-depth knowledge of consumer preferences, strong supply chain and financial position to help it to build a successful distribution business.
Mohammed Hussain, managing director of Mobile Fun, said: “We already have a successful business model in terms of supplier relationships, infrastructure, product range and international coverage, so now we are ready to scale up and target business customers as well as consumers.
“Our retail business is now growing on a global scale, and we believe that we can create a similarly successful distribution business.”
Hussain added that the firm is making a “significant six figure investment” into the new venture in terms of set up costs and working capital.
“We have a fairly modest target, which is to reach £1 million of annualised sales within the next 18 to 24 months. Given the size of the industry, we may well revise this figure upwards post launch,” he commented.
Mobile Fun’s distribution business will focus on up-and-coming brands from the firm’s network of suppliers and manufacturers, as well as the company’s own-branded products.