21 companies are looking for new markets through the trip TET organized with BEYSAD’s cooperation.

Having become the production center of Europe for white goods, Turkey offers its products to many countries across the world. White goods industry has experienced rapid growth in Turkey since the country saw its first locally manufactured washing machines and refrigerators by the late 1950s. This expansion in the white goods sector led to the creation of the white goods supply industry as of the early 1970s. The sector started making exports in the 80s. As the white goods supply industry has achieved a production growth of USD4 billion, the sector has had several companies which are distinguished by their potential for making exports. With a view to carrying their advantageous position along the technology, quality and price axes to new markets and increase their sales abroad, white goods supply industry members joined forces under TET’s and BEYSAD’s leadership. And now the sector has Brazil and the South American market as its target… 

The current position Turkey has achieved in white goods production and exports leads to the strengthening of the supply industry, as well. The industry mainly exports to Europe and it has significantly increased its standards in quality and technology. Our country now boasts direct and indirect white goods supply industry exports worth USD2 billion, and the intermediate goods manufactured for the white goods industry is worth more than USD4 billion. Having turned into an industry sector in its own right and demonstrating a rapid line of development, the sector provides employment to thousands of people in spite of having to deal with problems concerning raw materials and the lack of a qualified workforce. Companies of the sector, providing 53% of the intermediate goods required by the Turkish white goods industry, are aiming to make use of new market opportunities to improve their exports performance.

A project called “White Goods Supply Industry External Promotion Team (TURKHAS Team)” is being carried out by TET (Turkish Electro Technology Exporters’ Association) and BEYSAD (White Goods Suppliers’ Association) along with 21 companies operating in the sector, within the framework of the “Communiqué on Supporting the Development of International Competitiveness” (N.2010/8). Within the scope of this project, a trade delegation visit was organized between 24-29 November 2013 to Sao Paulo and Curitiba cities of Brazil with the Economy Ministry’s support and with the participation of 13 officials in total from 10 member companies of the Team. Investigating the possibilities for Turkish companies to engage in cooperation with the manufacturers in Brazil; TET organized visits to the facilities of Whirlpool and Electrolux in Brazil. Taking place in the country’s industrial capital of Sao Paulo, the delegation’s visit also included bilateral discussions with Brazilian firms.

Taking part in the trade delegation visiting Brazil; Fatih Kemal Ebiçlioğlu, Board Chairman of Turkish Electro Technology Exporters’ Association (TET) said: “Our white goods industry holds a very good position in terms of quality and technology, and possesses a significant power. The TURKHAS Team we created with the Economy Ministry’s support given under UR-GE (Communiqué on Supporting the Development of International Competitiveness) engaged in important meetings in Brazil. In addition to being the 6^th largest economy in the world, Brazil is the largest economy of South America, as well. Our Trade Delegation has created a significant environment where they can make use of their advantages in advanced technology and quality.”

A total of 5 factories were visited during the trip including those of such global brands as Elextrolux and Whirlpool. The opening of the bilateral discussions was made by FIESP – Brazilian Chamber of Industry, and a total of 6 companies including the global brands Hitachi and Mabe as well as Brazil’s largest local manufacturers Esmaltec, Colormaq and Mueller were invited to the event. The trade delegation worked with World Trade Center (WTC), a global brand, for the organization of bilateral meetings and the formation of the delegation. Frost & Sullivan, an A-class accredited consultancy firm was engaged for the Latin American Market Analysis Report which represented the first phase of the preparations made prior to the trip.

14.5 hours of flight took up the first day of the trip. The delegation went to Curitiba on Monday (the second day), and the team was separated in three groups to visit 3 different companies in this city.

One of the groups met with FOGOES BRASLAR, a local Brazilian manufacturer of industrial cookers and ovens.

The second group held a meeting with ELECTROLUX. At the meeting’s beginning, our commercial counselor Ramazan Kısa who accompanied the delegation gave a short introductory briefing and a speech of thanks. Afterwards, Electrolux’s Purchasing Manager Marco Rebello made a presentation on their company and gave general information about the white goods market in Brazil. Later on, the introductory movie prepared for the TURKHAS Team was shown and all firms briefly introduced themselves and told about their productions. Following the presentations and briefings, the companies had the opportunity to engage in direct meetings with the relevant purchasing units of Electrolux. By the end of the meetings, several company representatives from the group that visited KIN also came here and they also had the chance to meet with the related purchasing unit managers.

The third group met with KIN, a Brazilian manufacturer of semi-automatic washing machines. During the facility visit made after the meeting, the group got to see the showroom where the goods the factory produced were displayed. Group members learnt that demand is high for semi-automatic washing machines in the Brazilian market and therefore, production numbers for fully automatic machines are low. The delegation returned to Sao Paulo in the evening of the same day.

On the third day, the delegation went from Sao Paulo to the city of Campinas and visited WHIRLPOOL’s facility. Here, Whirlpool’s Country Purchasing Manager Andre Camargo met the delegation. The delegation was once again separated in three by joining the other purchasing officials; one purchasing official was assigned to each group and facilities were visited. Once facilities and production lines were seen, the groups were brought together again; a presentation about Whirlpool was made, and information concerning the company’s process of choosing suppliers was given. Following the introduction of companies, delegation members proceeded to bilateral meetings.

After lunch break, the delegation set out to the facility of IMBERA, a manufacturer of commercial coolers/refrigerators. Following company introductions, relevant firms in the delegation proceeded to bilateral meetings with Imbera’s Logistics Official Pedro Mendoza Perez and Coordinator Luiz Gustavo Bueno. The delegation returned to Sao Paulo in the evening; Turkey’s Consul General to Sao Paulo Mehmet Özgün Arman gave a reception for the delegation and hosted the Team members at their residence. At the end of the reception; head of delegation and TET’s Board Chairman Fatih Ebiçlioğlu presented the Consul General with a plaque.

On the 4^th day, bilateral meetings were initiated at ITAM Meeting Hall of Tivoli Hotel where the delegation stayed during the visit after Antonia Bessa, FIESP’s Sector Manager, made a presentation and video display regarding the Brazilian market. Mr. Bessa provided details of Brazil’s economic conditions and foreign trade, and also shared information with the delegation members about the prominent industries in the country and the possible advantages of investing in those sectors. Once the meetings, which were carried on in a Q&A format, were over, TET’s Board Chairman Fatih Ebiçlioğlu presented a plaque to Antonio Bessa.

After Mr. Bessa’s presentation, Sao Paulo Commercial Counselor Ramazan Kısa gave a detailed presentation about Brazil. At the end of his presentation, he shared statistical data concerning Brazil’s white goods industry. He provided an evaluation of the customs duty rates implemented by Brazil on basis of the customs tariff numbers of the goods that the participating companies are manufacturing. Following his speech, TET’s Board Chairman presented him with a plaque.

The delegation proceeded to bilateral discussions following the break given after these speeches and presentations.

A total of 6 companies, including such global brands as Hitachi and Mabe as well as Brazil’s largest local manufacturers Esmaltec, Colormaq and Mueller were invited to the activities. The invited companies (ARIM COMPONENTS, COLORMAQ, ESMALTEC, HITACHI, MABE and MUELLER) had meetings with almost all members of the delegation.

During some meetings, officials from the ELETROLAR industry fair, one of Latin America’s largest white goods fair which is held in Brazil every year, introduced the fair to the Chairman and Vice Chairmen of TET’s Board of Managers.

Bilateral discussions went on following the lunch. During these meetings, Turkish firms found the opportunity to learn more about the Brazilian market by getting in touch with local firms and to evaluate together the potential in their respective target markets. Thanks to bilateral discussions and facility visits, each company from Turkey had the chance to meet 6 corresponding firms in average.

On the fifth day, which was the last day of the delegation, a city tour was made after checking out from the hotel and company representatives gained information about Sao Paulo’s social, commercial and touristic aspects.

As BEYSAD, we would like to extend our gratitude to all participating member firms, especially to the managers and employees of İMMİB-TET who contributed greatly to this organization. We also would like to thank Hande Celayir, Project Officer at TET, for the support she gave for the preparation of this news.

ASSESSMENT

The Trade Delegation Visit to Brazil was organized by TET within the scope of our project which has been realized by bringing together TET members operating in the White Goods Supply Industry, majority of which are also BEYSAD members, and this project was initiated with the Economy Ministry’s support given within the framework of “Communiqué on Supporting the Development of International Competitiveness” (N.2010/8). This visit proved to be immensely beneficial in terms of both participation and commercial relations. Positive outcomes are expected in the coming term with regard to increasing the exports our Team-member firms make to Brazil, establishing new business connections between the firms, and raising the awareness on Turkish companies in the Brazilian white goods market.

During the preparations made prior to the visit, one-on-one meetings were held with PR companies; as a result of these, an agreement was achieved with World Trade Center, and all preparations were undertaken in coordination with our Commercial Consultancy at Sao Paulo. Choosing and working with the correct PR company as well as organizing all steps of the visit in coordination with our Commercial Consultancy had direct effect on the success of our main delegation. Making a good evaluation of the manufacturing and sales profile of each Turkish company made it possible to pinpoint the right correspondent among Brazilian counterparts who took part in bilateral discussions. During the evaluations made with Turkish companies, our firms told that the areas of operation of Brazilian companies who participated in the discussions were spot on with theirs, and this showcases how fruitful the trade delegation’s visit turned out to be.

The trip assessment survey which was conducted with 10 participant companies showed that they gave a success rate of more than 90% for the trip. Stating that they would be interested in taking part in future delegations if organized, the firms expressed their desire for trips to be arranged under the TURKHAS project especially to such countries as Mexico, USA and Russia.