Vestel to take the spotlight with hygienic products
TURKISH HOME and professional appli-ances manufacturer Vest el took swift and flexible decisions during the coronavirus outbreak, avoiding order and sales cancellations in exports. Turan Erdogan, CEO, said the company will offer new products equipped with daylight technology and aims to stand out with its innovative hygiene products.
PRODUCTION CONTINUES
Vestel had previously temporarily halted production since the outbreak disrupted its logistics and prevented exports to Europe. But production was relaunched after the company implemented necessary measures.
The company’s performance in the first quarter was satisfying, according to Erdogan. Vestel’s white goods sales increased 10 percent while sales in the European market approached its target growth of 30 percent. According to Erdogan, the company prepared its crisis plans when the virus began spreading in China, assuming that borders will close. “We were able to reduce our supply chain disruptions to a minimum thanks to the successful ecosystem we created in our production base in Manisa,” he said.
Still, the company’s successful growth in the first quarter began to slow in the second due to the outbreak, as European countries - Vestel’s main export market - suffered heavily due to the pandemic. Erdogan said the impact of the outbreak will affect the results in the second half of the year. Vestel’s foreign operations were disrupted due to logistics issues but the company didn’t experience order and sales cancellations. Erdogan also believes that the postponement of the European Cup and the •lympics will create various opportunities for the company. “The impact of rising unemployment on demand, a possible second wave in the last quarter of the year, and vaccine developments will affect the outlook,” he said.
“WE NORMALIZED THE CONTRACTION”
Consumers have postponed nonessential expenditures, leading to a 25 percent decline in Vestel’s branded goods sales in March, compared to the previous year. “With our swift decisions, projects for different consumer types, online operations, and consumer-focused approach, we were able to normalize this contraction by the end of April,” Erdogan said.
According to Erdogan, consumers opted for small home appliances during the outbreak. In addition to blenders and cookers, sales of coffee machines increased as the majority of companies adapted the home-office model. Demand for large refrigerators and freezers increased as well, Erdogan said, adding that people will continue to produce and consume at their homes for some time even after the outbreak. During this period, brands with strong online channels and good consumer support will have an advantage. “We strengthened our relationship with our customers with 24/7 hygienic deliveries. •ur online channels will continue to provide solutions to our customers,” Erdogan said.
The impact of rising unemployment on demand, a possible second wave in the last quarter of the year, and vaccine developments will affect the outlook.