IoT and cloud-based solutions specialist Buddy Technologies Limited (ASX:BUD) has eclipsed its previous record for largest set of smart light orders after receiving purchase orders for units of LIFX White totalling over US$2.6 million from existing retail and distribution partners.
CEO, David McLauchlan, said this represents a 14% increase in unit volume of lights ordered over the previous record. These orders are intended to meet Black Friday / Cyber Monday demand, with devices built under the orders to be shipped to North America for sale in the US and Canada.
Black Friday (this year, November 27) is the traditional start of the American holiday sales period, and Cyber Monday is the following Monday; together they bookend what is annually the busiest shopping weekend in North America.
Mr McLauchlan, said that while it would normally be unusual to receive purchase orders this early for that timeframe, given the size of these orders and the irregularities in global supply chains due to COVID-19, some retailers are being more proactive in advance ordering than might otherwise be the case. The purchase order terms are commercially standard for orders of this nature and no additional retailer deductions or accruals will apply.
With these orders, following the initial stocking orders for LIFX White and the subsequent incremental orders that the company has received (and does so in the ordinary course of its business), orders for just LIFX White lights in 2020 are now greater in number than LIFX sold of all its varieties in total in 2019. This is a remarkable milestone, and makes LIFX White the most successful new product to be introduced by the company in its history.
Customer demand for our breakthrough US$9.99 low-cost light is clearly very high, and we have expectations that it will only increase,” Mr McLauchlan said.
“This is a product that appeals to everyday consumers, with a price point that is affordable and a setup and installation experience that is second to none. LIFX White offers the consumer a seamless entrée into the benefits of smart lighting, and its role in driving upsell of our higher-end products is already evident with customers returning to purchase more advanced and higher price point products in the LIFX range.”
Mr McLauchlan said that while these orders are solely for LIFX White, the company continues to receive regular replenishment orders for the full range of its smart light products, and in future those replenishment orders may include LIFX White as well.
The A$3.6m purchase orders disclosed herein are solely for the U.S. and Canadian markets, and the Company does anticipate further orders for other regions in which LIFX smart lights are sold.