Could you please assess the year 2020 in terms of the global pandemic, the industry in general, and therefore your company specifically?
2020 has been an unforgettable year in terms of the drastic changes we experienced in business as well as in social life. Upon the supply crisis originated from China at the beginning of the year, the demand crisis via the economic shrinkage revealed the limitations of the supply chains that were called smooth and carried on with conventional methods and the adaptability of companies. The abrupt increase in demands in the markets as they were re-opened during the normalization period and the increased number of cases around the world during this time also posed another issue to deal with for businesses.

Our sector has also carried on their operations in this quickly-changing uncertain times as all the other sector. This whole period of total uncertainty, complexity, and variability was successfully managed with the flexibility, adaptability and agility of all the organizations and units of Vestel White Goods. During this period, we created permanent solutions to the problems we encountered or might possibly encounter via the process innovations we have constantly been making and situations which would be problematic were turned into opportunities to create a solid supply infrastructure by rapidly transitioning to these new applications.

What are your forecasts for 2021 regarding the changing customer demands, the market volume growth, and production and investment plans?
We have been hearing the statement “After 2020 nothing will ever be the same” a lot. There are also things that will never change. For instance, end user will continue to demand cutting-edge technologies for lower prices. Competition will get sharper in that sense. Because people are at home, online shopping will continue habitually, customers will now request many various services delivered to their homes. Shopping outside will become only a pleasure rather than necessity. The expectation of end users for comfort at every step of buying and using products will continue, if not increase.

Companies understood the importance of qualified labor in production more during the case diagnosis and isolation periods. Although more automation projects are carried out to avoid labor variables, it will be more important than ever to use the established capacity economically. Lean and flexible production will get more attention. It was seen by many businesses that it was not important if some parts of the processes (whichever deemed more important) were flexible and agile and what was important was rather the combined abilities of all the processes involved. The features of all the processes from the beginning to the end should be analyzed and calculated. We had the chance to see the benefit of handling and improving all of our design, supply and production processes altogether including the processes of our business partners during this pandemic.

We see that market volume is getting bigger. Vestel White Goods offer innovative technologies and high quality products that make life easier to the end consumer in an affordable way and grow bigger than the market. As a result of this, we keep on working on new investment plans.

What kind of a change do you expect to happen in the production and supply processes, and market and demand structures of your company and industry in the medium run? What kind of technologies and products do you consider will prove to be critically essential in the medium run?
Regional supply and localization after the impacts of the pandemic is a strategy that is getting more important. China has a strong production network in white goods, which produces 54% of the white goods worldwide; however, businesses that have their production facilities in China now steer towards adopting the “China+one” strategy which means having at least one other production facility in another country besides their facility in China. Here, selecting the right location will bring out good results in the longer run.

Vestel White Goods being a leader in Industry 4.0 practices constantly improves its efficient, agile and flexible production structure with its smart factories – smart products strategy. Utilizing smart technologies will get more important. Hygiene products will stand out more among all the goods that make the life of the end user easier.

Vestel White Goods continue to simplify the life of consumers via the technologies we develop. With the day light technology we developed, we promise extra hygiene and long life in food, dishes and laundry. Vestel dishwashers and washing machines featuring the day light technology were launched when they were the most needed for individuals who want to create more hygienic and safer environments using less chemicals. This is an important result of Vestel White Goods’ R&D approach and innovative vision which are shaped around the demands and needs of the consumers.

Considering Turkey’s place in the global value chain, what are the advantages/ disadvantages of Turkey and our industry?
Turkey has a unique geographical location, which gives her an upper hand in terms of the strategies of localizing the supply chain especially due to the effects of the pandemic. Highly qualified and diligent labor as well as the technological infrastructure of the production facilities give Turkey a certain advantage. Turkey comes second in the white goods production globally. All these make us attractive for our sector. Reducing foreign dependancy for raw materials procurement, being able to produce strategic materials in Turkey, setting up common strategies for development, and efficient incentives will make it easier for us to benefit from all our advantages.

For taking actions to use the opportunities and to take measures against risks, what should be done on the level of country, industry and companies?
Turkey has overcome many crises strongly and made herself the top player in the region with her own unique risk management organization. About all sectors in the country need incentives. Sustainability of incentive packages and making them more flexible against abruptly changing conditions are very important. Here, sector representatives have a great responsibility, as well. There should be more common projects to ensure information transfer among sector players and to gain a rapid reflex ability.

What are your expectations of your suppliers to adapt to such changes?
The time we are living in has shown how important it is to be able to adapt fast. Reviewing the supply chain down to the last detail and exposing risks, working on those risks, increasing industry 4.0 practices in production, handling processes as a whole and performing risk assessments are key. They need to apply innovative production technologies and focus more on R&D. We are in an era when we should go beyond the ordinary and take well-calculated, but bold steps while applying innovations.

What do you think BEYSAD should do in this period? Do you propose any ideas for events and activities?
BEYSAD has been successfully working for years on the development of the white goods sector and making the national white goods production infrastructure gain a better position globally. It is possible to state that carrying out workshops on individual/common risk assessments for businesses that give service to the sector and developing solutions against such risks might be beneficial. It would be good to work on consortium for producing strategic components and materials.

We would like to thank BEYSAD for your efforts to develop the white goods sector and wish you success in your future endavors.