We discussed the point of Erse in exports and the road map and strategies they drew with Erse Kablo Export Manager Ergun Çoban.
Erse Kablo offers solution partnership based on strong ties with alternative services by establishing organic bond with export partners.
Erse Kablo Export Manager Ergun Çoban, who stated that they have reached the targets of two times growth in exports of Erse Kablo last year, evaluated the year 2019 compared to other years and discussed the point of Erse in exports and the road map and strategies they drew.
What are your export impressions and evaluations about 2018 as Erse Kablo Export Manager? Are your export targets realized in line with your expectations?
Before sharing my impressions for the previous year, I believe that it will be healthier to make a long-term and in-depth assessment in sectors whose development is shaped and determined according to many internal and external dynamics in unstable economies like ours.
Although we have taken into consideration the data of last year, have we achieved the operational, intellectual and pragmatic competence, awareness and measurable results that we have targeted as Erse export team since then, regardless of these data? I can answer that.
If I recall my interview in 2016, it will be remembered that we set out with the basic principle of “new approaches in export and breaking our prejudices in export”.
In the process, we have strengthened the human presence in our department and rehabilitated our organizational structure by considering that human beings are the basis of everything. While the number of employees increased, we determined our training and career policies in order to increase the quantity simultaneously. We have standardized our periodic meetings, reports, document documentation system and practices. All these standard definitions enabled us to establish a system that can be measured, controlled and managed transparently. As a result of this, we have been able to conduct data analysis and data mining, and we have put into use our risk and financial management system, efficiency studies, stock and cost management, customer portfolio and product analysis plans. Since Erse has a structure that focuses on the local market with its wide product range, organizing the change was a difficult process while preserving the value of the local brand.
Especially due to the economic fluctuation experienced after the second half of 2018 and the downward momentum in the growth trend in the local market, the companies narrowed their domestic shares and started to export.
Since we foresee this process in advance, we have made the necessary measures and restructuring activities an integral part of our work program and strategy. Our infrastructure for increasing the share of export sales within the company was already ready.
We have carried our export share which was around 38% in our company to 50% rapidly. As a result, we have achieved our target of double growth the export of Erse Kablo, which is within our 3 years projection, last year.
Our other main objective was to be the most successful exporter in our product groups. We take our place in TET (Turkish Exporters Assembly) and IMMIB (Istanbul Mineral and Metals Exporters` Association) rankings as the basic criteria. If we look at the development in the years in terms of our overall exports of Turkey, Electrical and Electronics Sector 79th place in the rankings over the years starting our journey, we have risen to 38th place as well.
In 2017, we ranked 57th place on the Export Honor List for $ 10 million and more, finished 50th last year.
As a result, we were rewarded for our disciplined efforts in 2018 and previous years. According to my evaluations, I see the year that we left behind as a stepping stone for the near future, where we will only achieve our long-term goals and achieve greater success.
Considering the change in domestic and foreign market shares, Export has an important position in our country. What are the difficulties of local manufacturing companies face at this point? What steps should our country follow for the development of exports?
I would like to answer your question with a single sentence. The export market should not be localized. There is a very favorite discourse: “A person can never learn what he thinks he knows.” First of all, it is necessary to understand the basic dynamics of the export business and to internalize the differences in the ways of doing business and customer expectations.
We may think we`re doing our job very well, but we should always be skeptical about if there is better? Accepting what we know most accurately; dictating our own subjective realities in exports, a trade area that is much wider in physical geography and of considerable diversity as human beings; I do not believe that we can improve.
We should be able to analyze why local markets are so fragile in the face of negative economic developments and why risks are too high to be acceptable. If i need to explain; under the main headings such as price-oriented competition, long-term, quality immaturity; it is clear that in today`s world of commerce, it cannot continue with unsustainable policies such as increasing the sales price or maximizing profitability with non-standard production.
Therefore, to specialize in branding, institutionalization, efficiency, cost analysis, finance and risk method, R&D and P&D activities, to work with qualified and competent staff; short-term transactions and the small returns of decisions with the attractiveness of the future should not be lost.
As Erse Kablo in 2019, what strategy will you follow for your export market targets? Can you share your first quarter impressions?
When we evaluate the first three months of 2019; We have the data that cable exports have increased in the sector but the average unit price of cable has come down, which means, value added has decreased. On the other hand, collection turnover rates tend to decrease, which leads us to the conclusion that average maturities and collection periods are extended. We understand that as a result of the contraction in the domestic market shares, there is a tendency towards a concessive policy across the sector in order to increase the export market shares of the companies and to start exporting.
I would like to make a determination. Looking at the axis of cable manufacturers there are many international cable manufacturers with more than a hundred years of establishment. In our country, we observe that the cable sector is still young and middle age.
The main market of our country is Europe. We see that some of the cable manufacturers here evolved from production to large distributors and wholesalers after a while, or directed their productions only to product groups that create added value.
One of the main supplier roles here is the Turkish cable industry. But every 4-5 years in our industry, many cable manufacturers are in financial difficulty, sold or bankrupt if we say that we are not wrong. In fact, among these companies, there are also cable manufacturers that have received awards and are a record-breaking reality. Global distributors and wholesalers supplying cables from these companies have continued their business life for a very long time; it can be seen that there is a circulating order where the new ones are constantly replaced by new ones.
If we think on this axis, we, as employees in the cable industry, never consider a competitor as a company to end its life. On the contrary, we believe that we should be in constant communication with other manufacturers that we see as our stakeholders. Because, the damage left by the companies to the sector is not permanent anymore. Falling prices do not rise again and longer maturities do not shorten again.
Our strategy includes sustainable and quality growth within a specific plan; based on feasibility and analysis, efficiency-oriented, marketing, business development, product promotion and pricing activities to cover the entire business “system-oriented” structure.
It is not possible for businesses to achieve a continuous vertical growth acceleration in their life cycle. What is important here is to make growth with parabolic curves sustainable by creating a new life cycle when the trend tends to fall after peaking.
With this perspective and strategy, in the first quarter of 2019, we continue to receive the results of our operations. Within this scope, we carried the number of countries we export to more than 50 countries, our internal sales share is over 65% in company, According to IMMIB datas, we have reached the 10th place rank among the companies exporting cable. We continue our way of export in a stable manner.
Explain that you have a strategy that focuses on the system, on this; How do you follow a common path with R&D, Production, Quality, Logistics and Marketing departments?
Erse Kablo carries out its manufacturing and logistics operations with modern and quality service approach in its facilities in Silivri, İstanbul founded on a total area of 25.000 m² consist of a closed area of 20.000 m².
Erse’s product range includes coaxial, signal control, fire resistant, telecommunication, data transmission, control and special cables.
Erse has an extending vision with the brands of Ervital and Firesafe in the fire resistant product groups, Erflex in the control cables group, Erline in the lan cables group; and it has strengthened its market power with these brands.
Erse has developed and documented "Integrated Management System" (ISO 9001, ISO 14001, OHSAS 18001) within the framework of a work approach complying with the environment consciousness and the quality standards since its establishment. Manufacturing the products based on national and international standards, Erse has the product certificates in the norms of “TSE, VDE, LPCB, Customs Union Certificate, Russia Fire Certificate, LR, BV, RINA, ABS, DNV, REACH, RoHS, CE (LVD, CPR) and SASO”.
All these elements that I mentioned bring a serious responsibility. Production of products in accordance with national and international standards, laws and regulations; We consider creating a working environment where cooperation and solidarity come into prominence by providing continuous education and awareness and applying humanitarian requirements with social responsibility awareness.
Within this scope, we carry out many activities in order to ensure the sustainability of the products, services and quality that arise in our organization and to secure the ERSE brand.
Last year we commissioned our R&D Center. We have laboratories equipped with modern test equipments. We established our own CPR laboratory with significant investment cost. All requirements are fulfilled in our factory by the framework of Construction Products Regulation (CPR).
Our marketing department presents very effective products in a simple framework for our markets in terms of reflecting our corporate line, image and managing brand perception correctly.
Catalogs, company profile, product demos, cable unit stands, promotional materials, web site, such as a lot of marketing equipments, we offer our business partners in a meaningful corporate integrity.
How do you follow Erse Kablo`s approach to customers regarding quality and service? In order to create quality awareness in the cable sector, many companies in the sector establish an approved R&D Center. However, non-standard cable is sold at a very high rate. How is this matter evaluated for external customers?
As a manager who has witnessed all stages of demand and supply points of developing quality consciousness for many years in the cable sector; According to 10 years ago, we can say that we have come a long way.
However, the issue of quality is still not at the desired level due to the suppressive elements of the sector and the lack of qualified human presence. When we look at the current Turkish dictionary, we see “qualification” as the meaning equivalent of quality. There are also many definitions made in different sources. It is necessary to make a non-subjective definition of such a subject that is open to interpretation.
If we consider the concept of quality as conforming to standards in cable production, your products are either quality or not. In this context, the first expectation of the users of the products is to meet the need. Even in the context of cable engineering applications is a very specific and unknown issue; The perception at quality point is the ease of application and laying of the cable, followed by ensuring the integrity of the circuit. However, cable production is a job that requires experience and expertise. The quality of the cable is related to the continuity of operation over many years and the degree to which it meets the requirements when its content is necessary. For example; in fire-resistant cables, the function of the cable only occurs in the event of a fire. The same applies to halogen-free cables that do not produce toxic gas and smoke.
Another disadvantage is the lack of visibility of the cable, which means that it is a product which is used under plaster. When you enter a shopping center, the lights of the shops and the appeal of visual products dazzle us. However, all kinds of living centers are fully equipped with cable. In this respect, the cable is actually life itself and it is in every area. For example, how dangerous would people be if they thought that emergency lighting would not work and fire prevention systems would not be activated because of the cable configuration? Or the owners of the business need to be repaired in a short time instead of the cables that they can safely use for many years; If they knew that many risky cables were used, including job losses due to short circuits and similar reasons, how would they shape their preferences?
For this reason, the quality of Erse products is ensured with quality certificates, integrated management systems and management approach at every stage from raw material inputs to production, packaging and shipment. All domestic/foreign customers who prefer Erse are guaranteed by the "Product Liability Insurance" and protected against the physical and material damages that may arise from the products manufactured up to 20 Million Euros.
At this stage the quality of the cable equals standard and sustainable product point; different and preferred criterion is superior customer service.
Having experience in the foreign markets, Erse has a significant position with its exports to all over Europe, especially England and Germany; over 50 countries in Asia, Middle East and Gulf Regions. Besides, Erse plays an active role in the development and change of international trade through all its export operations.
First of all in terms of customer service and marketing activities; I want to give information about the way we do not follow. We do not follow a strategy of accepting the cheaper prices, longer terms and inefficient demands of our competitors` firms to our company portfolio.
Customer is still the most important and valuable factor of business life. It will continue to do so. In an industry where the first choice criterion is not benefit but price, the role of sales managers is to determine the optimum price and potential in the market; I believe that this is the decision to make the most efficient and effective use of price and potential for the operating conditions.
By providing simplification and specialization in product groups; efficiency, cost analysis and improvement activities; finance and risk, as well as stock and expense management; production speed, service superiority and quality by providing standardization needs to convert into added value.
We are not looking at the companies we work with, but through the eyes of business partners that we can walk together, develop and earn. In this context, we develop an organic bond with our business partners and offer alternative services and options in the face of ineffective demands that we cannot meet in the equation of price, service and quality and develop a solution partnership based on strong bonds.
The feedback we receive about our service and product quality, which we regularly measure through our online customer satisfaction surveys, is very pleasing. Based on these data, I can easily state that our brand is in a different position and that we are fully perceived as a European manufacturer.