By NISHA RAMCHANDANI

HOME-GROWN electrical products outfit Gain City is focusing on managing costs and preserving its talent pool in today's tough times - efforts that it believes will stand it in good stead to weather the downturn.

'Our cost-cutting measures don't include retrenchment. In fact, we're still hiring,' says marketing manager Evonne Lee. The company is looking at other ways to cut costs.

For instance, instead of 30-day credit, it now opts for seven days or cash on delivery. 'That, overall, reduces our cost,' says Ms Lee. Additionally, Gain City can seek discounts because it buys in bulk for its divisions.

The company's business segments include retail, residential/commercial and industrial projects, wholesale, manufacturing, import and export, as well as the installation, maintenance and repair of air-conditioners.

Gain City has made a major effort to strengthen its relationships with both suppliers and dealers. 'An economic crisis is a confidence war, not only just with consumers but business partners as well,' says Ms Lee.

So the company makes sure that its business partners are paid promptly to build confidence.

Established in 1981, Gain City's core business was selling, installing, maintaining and repairing domestic refrigerators and air-conditioners. By 1983, it had expanded to cater to the audio-visual and electrical home appliance market.

And in 1984, a wholesale department was set up, supplying various product brands as well as spare parts and air-conditioner related items to other industry players.

Over the years, the company continued to branch out, taking on industrial, commercial and residential projects in 1992.

The following year, it set up an export department as a platform to venture into foreign markets. Today, its import and export operations are in Asia, Oceania and Europe.

Gain City has just over 500 employees, most of whom are local. As such, it will benefit from Budget 2009 initiatives such as the Jobs Credit scheme. This scheme gives employers a cash grant amounting to 12 per cent of the first $2,500 for every employee on the CPF payroll.

Given the economic uncertainty, the cash grant will certainly come in handy. 'No one really knows how long this recession will last. This help from the government is a cost saving,' says Ms Lee.

But the downturn also means opportunities. 'For hiring, there is bound to be an increase in the pool of talent we can choose from,' she says. 'People are our greatest asset because we are in the service business.'

Despite the slowdown in the second half of 2008, the company still posted growth for the full year - turnover was up 22 per cent to more than $120 million. Currently, the retail business contributes most.

Even in the last quarter of 2008, Gain City's sales continued to grow, though at a slower pace.

'Customers are still shopping but they are more cautious about what they buy,' says Ms Lee.

'The brand, features and price tag have become even more important. And with utility costs set to go higher, customers are turning to energy-saving appliances.'

Gain City puts a lot of emphasis on training and certification. It was awarded ISO 9001:2000 certification in 1999, which means that it is 'equipped with the expertise and capabilities to undertake projects professionally'.

In recent years, it has landed such major projects as the 47th International Paris Air Show 2007, the Singapore Airshow 2008 and the 2006 International Monetary Fund-World Bank Conference.

'Whenever there is a tender, any big corporation will consider a company's reputation,' says Ms Lee. 'As such, quality of installation is important. We are continuously upgrading our skills.'

As far as expansion goes, Gain City is still on the lookout for new retail locations. Except for its outlet at Marina Square, its stores are in heartland areas. 'This puts us close to our customers, and at the same time, rents are much lower,' says Ms Lee.

The company also strives continually to expand its product categories by bringing in a wider range of items based on new technologies.

This article was first published in The Business Times on February 03, 2009.