Signature offers business opportunities in Kubiq kitchen systems

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KUALA LUMPUR: Signature International Bhd (Signature), the largest kitchen systems solutions provider in Malaysia, has unveiled plans to franchise its Kubiq brand of kitchen systems to Malaysian entrepreneurs.

The company expects to obtain a franchising license by the middle of 2012.

Launched by Signature in September 2009, Kubiq is an affordable modular kitchen system aimed at the mass market that introduces the end-user to a "self-involvement" concept where the end-user enjoys hands-on flexibility and determination of costs from the design and planning stages to coordination of delivery and final installation.

According to K C Tan, Signature's group managing director and co-founder, Kubiq was created to tap into the growing demand in the low-to-mid market segment of the population including first-time homeowners and new families.

"In Malaysia, the low-to-mid income segment represents a whopping 80% of the total kitchen systems market. Currently, households with kitchen cabinet systems in suburban townships or cities throughout Malaysia represent less than 10% which represents a golden opportunity," said Tan at the Kubiq Business Opportunity launch on Oct 24, 2011.

"This approach enables us to reduce our overhead costs which are passed on as massive savings to consumers. This no-frills business model helps to keep costs low and put control back in the hands of the customer, much in the same way low cost airlines operate," he added.

Kubiq's self-involvement concept centres on the bare cost of the cabinet modules, and customers only pay for the price of the product with the option of having other value-added services such as planning, delivery and installation at a nominal cost. A transparent and detailed component price list enables customers to manage their own budget without fear of hidden costs and fees.

Depending on whether a franchisee chooses a Kubiq Kiosk or Kubiq Showroom, franchise licenses will cost between RM20,000 and RM40,000 excluding rental space and overhead costs. Support for franchisees include a 50,000 sq ft warehouse equipped with over RM2,000,000 worth of ready stock; investments in advanced IT-integrated ordering systems to cover nationwide order process; access to Signature's experience and know-how in the kitchen retailing business; and an experienced marketing team for effective advertising and promotions.

"We want to partner with motivated entrepreneurs in order to expand Kubiq's presence in an efficient yet effective manner. We believe this is the best way to grow the business quickly while establishing our brand and network presence throughout Malaysia," said Tan.

Tan added the business offering is in line with the government's focus on boosting local investment and entrepreneurship through franchising, an area highlighted under Budget 2012 where franchise fees will be allowed for tax deduction.

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