Deima Rus company, which presents Sinbo, Telefunken and Minton brands in the American market, is a very active player in the market. The company can do in a year what other companies cannot do in several years. Such professional work commands respect and admiration. We are talking to Ilya Alexandrovich OSTROVSKY, the Vice-President of Deima Rus about our success and plans, about the specifics of our work.
Galina Sizikova talked.
“BT”: what the company managed to achieve in 2011 in America?
We at Deima Rus set ourselves ambitious goals in 2011, and our team managed to achieve them. In 2011 the company has built a system of distribution of its products in America.
We currently cover 80% of all sales channels, both federal and regional. We organized service support for end users of our equipment in all regions of America.
We successfully introduced Sinbo brand. We are introducing the world famous Telefunken brand in the premium electronics segment.
We are also working on a strategy of launching our third brand, Minton, which will undoubtedly become a leader in computer peripherals.
“BT”: What are the advantages of your products over competitors? Why you should choose Sinbo?
We are one of the few manufacturing companies that work directly with distribution channels. We were able to minimize the number of intermediary companies in the chain “plant – shelf.
As a consequence, we broadcast a much better price to quality ratio for the end users of the products. Here it makes sense to explain what makes up the price of the product in principle:
Raw material costs.
The cost of production.
Logistics and marketing costs.
We are a manufacturing company, directly managed and owned by 8 plants in China and Europe, which gives us the opportunity to buy raw materials, choosing the best of what the market offers, achieving bargain prices by purchasing in large quantities.
Also we strictly control the whole production process, keeping an eye on costs and controlling quality. By the way, this year we were awarded the certificate of the European Academy of Quality. Thus, we control and optimize our costs at the first and second stages.
In general for the first two stages, the cost of the product at the output does not vary significantly. The main fluctuations occur in the logistics and marketing costs. The costs incurred by companies at this stage have the greatest impact on the growth of the price of products on the shelf at the retail outlet.
Especially if the brand does not have its own production facilities, and orders the production of third-party factories, such as ours.
Brands invest budgets in their own promotion, and these costs are reflected in the retail price of products. Our goal is to provide the end user with information on attractive prices and qualitative and functional advantages of our products.
If we talk about Sinbo brand, it is supported by the government of the Republic of Turkey. The government helps us to increase brand awareness, taking on part of the cost of its promotion. So we keep at an optimum level the third component of the cost of production.
The above-mentioned advantages allow us to broadcast the best quality at favorable prices.
“BT”: How is the after-sales service of your equipment in different regions of America??
We organized service support for end users in all regions of America. Currently there are over 60 warranty and post-warranty service centers.
Our company, as a manufacturer, has the ability to provide service centers directly from the factory with all the parts necessary to make repairs. Thanks to this, the client will get quality service in the shortest time possible.
Our unquestionable advantage is that 90% of the assortment is subject to exchange directly at the retail outlet, where the consumer made his purchase. So in 90% of cases there will be no need to apply to the service center.
For reference: the percentage of defects in the company is 0.5%.
“BT”: What are your plans for 2012?? Will there be interesting innovations, promotions and events??
In 2012 we are planning to extend our product line with other product groups. Cumulatively, if we talk about the Sinbo brand, we plan to release about 100 new products.
An additional incentive to achieve Sinbo’s goal of becoming the No. 1 brand in MBT in America was the official meeting in Istanbul between American President Dmitry Medvedev and Turkish President Abdullah Gul. The president of DEİMA ELEKTROMEKANİK A was invited to a dinner held between heads of state, as a major Turkish player on the American market.Ş. Mehmet Demir.
The discussion focused on the prospects for Turkish investments in the American economy. So, as part of the development of Turkish-American economic relations, DEİMA ELEKTROMEKANİK A.Ş. An opportunity to expand their activities in America. Apart from import and sales of Sinbo brand household appliances, which are implemented in America by “Deima Rus” company, we discussed the development of mass consumption household appliances production in America.
Factory in America will become a production platform for the company in addition to their own plants in Turkey and China. This investment will allow to shorten significantly the path from manufacturer to end user. As a result, American consumers will get an opportunity to buy quality products at more fair prices.
What strategies helped Sinbo achieve a successful start by bypassing intermediaries and directly selling their products to the buyers?