Dear BEYSAD Readers;
The main industry representative guest of this issue is Mr. Engin Özsayın, Commercial Director of Candy Group. Our acquaintance with Mr. Engin started with his becoming a Board of Directors member of TÜRKBESD. Afterwards, he indulged us of our invitation to the Business Dinner Meeting within the context of the Strategy Document efforts and supported us with his very valuable opinions. Again, we would like to thank him for making time for this interview in his busy work schedule …
Mr. Engin Özsayın, could you please tell us briefly about yourself and your career so far?
I have been in the business life for 27 years. I gained my first work experience in Beko Ticaret, the white goods company of the Koç Group. Later on, I worked as sales manager in Simtel Pazarlama, Türk Philips, and Electrolux. For more than 5 years I have been serving as the Commercial Director responsible for the Italian company Candy Group’s commercial activities in Turkey.
What is the key to your success? Could you please tell about your way of working and principles?
Sales business needs determination and persistence. Turkey is among the most difficult countries in the world for the white goods industry. Achieving a place in this market can only be possible through a long-term and determined effort. If you lack the principles of rising up on your feet once more after falling down the hardest and never giving up, you just cannot make it. Acting as a team by reflecting this understanding to the entire staff and being patient yield success.
What changed in the group after Doruk Ev Gereçleri that owns the Süsler brand was purchased by Candy in 2007?
All factories have been expanded. Product range has been completely revamped. Dryer machine factory has been moved from the UK to Turkey. The company has been turned into a production base that manufactures entirely for the group companies.
As the Commercial Director, where are you located in the Management chart?
There is a management structure where I report to the general director in Italy and I am responsible solely for commercial activities. Even though this situation requires an intensive information flow and coordination system, Italy does not intervene in the business here too much.
Considering Süsler and Candy together, where are the Group’s facilities in Turkey and the world located and what products are being manufactured there?
The Group carries on its production with a total of 7 factories in 7 countries which are Italy, Spain, Czech Republic, Russia, China, and Turkey. We have washing machine factories in Italy, Spain, Russia, and China; refrigerator factory in the Czech Republic, and oven and dryer machine factories in Turkey.
Could you please inform us about Candy and the Fumagalli Family’s vision for Turkey? Where does Türkiye Candy stand for the Family?
The Group places great importance on Turkey. The Turkish market, which has been growing in spite of the crisis in Europe, is very important for us just like the case for all companies. The Family foresees a significant growth in the short term with regard to the Turkish market. The quality level of the production carried out in Turkey especially makes a positive effect on the Company’s perspective.
What is your take on the position that the white goods industry attained in Turkey? Where does Süsler-Candy stand in this development?
The white goods industry in Turkey, in contrary to the crisis in Europe, grows in numbers. However, especially in the fast-selling products in the market, average prices are falling significantly. Compared to last year, reductions up to 20% are observed in average prices. In spite of this, we achieved a 40% growth in Hoover brand products.
Could you please tell us about your company’s long-term targets? Could you please mention your new product range projects so the supplier industry can be open to new developments? Are there new investment plans for Turkey?
As is known, when the Company was entering the Turkish market it targeted becoming a production base in addition to starting the sales of the Hoover and Candy brands in Turkey. When the team in Turkey successfully completed the migration with regard to the manufacturing of cooker products, the Group decided on moving the dryer machine production to Turkey, as well. As a result of these successful migrations, we are sure other products will also start being manufactured in Turkey soon.
I find it important to benefit from your experiences in different countries as an official of an international company. Could you please compare the white goods supplier industries of Turkey and foreign countries?
Currently, Turkey is the leader among the manufacturers in Europe. Accordingly, its supplier industry is developed to the same extent. The supplier industry of Turkey is definitely ahead of Europe by a large margin. Our consistency in quality and delivery durations makes us unrivaled as a country.
How much of your production in Turkey do you export and to which countries? Can I learn your opinion on the competition conditions with regard to the countries or brands you consider a rival in the Turkish or foreign markets?
We export more than 95% of our production to the entire world. Turkey is currently competing with only Poland and China. The distance of China and the workmanship level in Poland gain us an advantage.
I know that your company places great emphasis on sustainable development, innovation and energy efficiency. Could you please inform us about the new developments in these subjects?
That is correct. Our environment-friendly products have been in the market for a long time now. Our nature-friendly status is also certified by the UK-based Carbon Footprint Company. Our “Green Ray” series of products are designed in a manner which will leave minimum carbon print on the nature. In built-in machine and dryer machine groups, we have products whose patents we solely own and these are offered to the global markets in a manner that grants us a difference.
Could you please tell us of your R&D activities?
As we are the cooker base of the Company, our Cooker Group’s R&D activities take place in our Eskişehir facilities. The know-how for new and unique products is created in those facilities. All designs are entirely made by our own engineers.
What are Süsler-Candy’s greatest expectations from / criteria for its supplier industries in purchasing processes?
Quality takes the priority in Candy’s purchasing criteria. The compliance of each material to the required criteria as well as their logistical service quality is vital for us. Affordable prices come right after, which is among the most important requirements for being a competitive company in the market. Additionally, continuity and our supplier’s being a partner in terms of all aspects are also important for us.
Purchasing process beings with the audit of the purchasing department and continues with quality audit sampling, first sample approval and preliminary production series. Generally, amount and price agreements are made annually and raw materials (metal sheet, aluminum, copper, etc.) are hedged. Apart from these, cost analyses are conducted for 90% of all components.
At which point do you have the most significant problem with your suppliers? Could you please share your evaluation in terms of quality, logistics, and price elements?
Significant problems can be encountered in quality, which arise from the fact that our suppliers do not keep their processes under continuous control. This, in turn, can lead us to encounter significant problems in the market such as losing customers. Our problems in logistics are linked to our suppliers’ not conducting their raw material connections in a correct manner, which can lead to problems in timely delivery. We cannot mention having significant problems in terms of prices as we make use of price analyses.
Could you please compare your domestic and foreign suppliers in terms of their positive and negative sides? If there is “superiority” on a country basis, at which point do you think this exists, what are the superior aspects of the better country?
The most important superiority of our domestic suppliers is that they can promptly meet our changing production programs; in other words, their capability of making flexible production. At the same time their price policies are more tolerant than foreign suppliers. However, their ability to act quickly and meeting the demands in a short time occasionally cause quality problems. Considering that we provide our forecasts, if they would keep their stocks in accordance with our annual production amounts (this is what the foreign suppliers do) I believe they could meet the demand in a short time without encountering quality problems.
Are you carrying out joint works with your suppliers and at which phases?
Yes, we have joint improvement efforts in terms of processes, prices and quality with almost all our suppliers. Our R&D department conducts joint studies with some of our suppliers.
How do you announce your expectations to your fellow industrialists, do you reassure their investments? How do you support your supplier industries, especially the Turkish supplier industry?
We make annual agreements with our suppliers and this especially provides them with a certain level of foresight for themselves. Apart from this, we occasionally make special agreements of 3-4 years with the suppliers whom we request them to make investments or who will make investments.
Following the sale of Candy, have you had foreign suppliers from abroad that came here to make production for Candy?
Yes, we have had such suppliers before and still have such suppliers. Actually, this is not only about Candy but rather about that Turkey is a good investment area and has a strong market.
How much domestic and foreign supplier industry do your factories utilize? (I heard the use of domestic suppliers was higher). What can be done to further increase the utilization of domestic suppliers??
Whereas the ratio was 80% foreign and 20% domestic in the cookers group in 2008, today we are working with domestic suppliers at up to 90% level. In the washer group, the fact that plastics raw materials (ABS, PP) are imported from abroad demonstrates that the work is being conducted with foreign suppliers 60% in terms of value.
What are your policies regarding your suppliers? Do you have any messages for them?
It is important that they ensure consistency in their quality processes first. Only after that can customer satisfaction be achieved at the highest level. Thus, there will be no need for foreign suppliers, as domestic suppliers are already quite advantageous in terms of price and service.
What are your production and export number foresights in white goods sector for 2023?
It would not be possible for me to give a consistent amount.
What are your opinions on or expectations from BEYSAD? In addition to the efforts for the strategy document, what else can we do for you as the Turkish supplier industry?
BEYSAD is among the architects of the position our country attained in the white goods industry. It is quite obvious that achieving any position without being organized is not possible. We hope that BEYSAD plays a role in our country’s ascension to the global league by gathering all white goods supplier industries under its umbrella.
We wish the continuation of your successes in your new position and address as a TÜRKBESD Board of Directors member. Thank you.