São Paulo – With sales in 18 of the 22 Arab countries, Fanem, a maker of hospital and medical equipment that focuses on neonatal equipment, inaugurated an office in Jordan in January, to boost sales in the region. Today, the countries of the Middle East and North Africa receive 35% of company exports and, with the new base, the target is to reach 45%.
"In January we sold almost US$ 2 million in the Arab world alone," said Marlene Schmidt, executive director at the company. Currently, the main foreign market for Fanem is Latin America, but the company believes that the Arabs should reach the top position this year. To have an idea of how trade with the Arabs is progressing fast in 2011, in the 12 months of 2010, sales to the region totalled US$ 5 million. The main Arab buyer of company products is Morocco, followed by Iraq and Saudi Arabia.
The office in Jordan will have two main functions: increasing sales to the Arabs and offering technical support to clients in the region. "We are going to send some equipment to aid in distribution to other countries," said Marlene. She explains that one of the employees at the local office is an engineer who should work on installation, training, repairs and maintenance as a whole. "There will be units for spot supply," she explained.
To increase sales by the company representatives in the Middle East, North Africa and Asia, the company counts on a trader in the Jordanian office. In the Arab countries alone, Fanem has representatives in Syria, Lebanon, Palestine, Iraq, Oman, Yemen, Saudi Arabia, the United Arab Emirates, Sudan, Morocco, Algeria, Egypt, Libya, Kuwait, Bahrain, Qatar, Jordan and Tunisia.
Among the main products sold to the Arabs are incubators, heated cribs, equipment for phototherapy, common cribs and incubators for transport. Fanem also produces other equipment under license for other Arab countries, under its own brand and for other companies, under the client’s brand. Among the countries with this kind of demand are Egypt and the United States, among others.
After the office, the factory
In Brazil, the company has its offices in São Paulo and a factory in Guarulhos. In April, it should inaugurate its second industrial unit, in India, where the company has had an office since 2009. When asked whether the office in Jordan is also the first step for inauguration of a factory in the country, Marlene says it is, clarifying that it will still take a while to prepare the necessary market studies.
Fanem has been in operation since 1924, having been created by Marlene’s grandfather. She prides herself of maintaining a family business in a prominent position, both in Brazil and in the foreign market. The company has an 85% market share in Brazil, rising as high as 98% in the market in São Paulo. "Brazil is growing, we are sought and even copied," she says.
The executive adds that competition on the international market is great and explains the work developed to remain in the Arab nations. "To face a market that is as demanding as the Arab market, we are working on two main aspects: quality and low cost. We also deliver complete equipment, with all parts," she said.
Other Fanem strong points that Marlene points out are design and innovation. She explains that all the company products are patented. Among the 300 employees in Brazil, 10 are engineers turned to the area of research and development.
Exports to the Arab world began in 1998, to a Saudi client who visited the Fanem stand at Hospitalar fair, in São Paulo. And it is at the fair that, from May 24th to 27th this year, the company is going to establish a stand in honour of the Arab world. From decoration to presentation of belly-dancers. All to celebrate the inauguration of the new office. Marlene added that she is going to invite the Jordanian consul to visit the stand at the event.
Regarding events, during participation in the Arab Health this year, a fair that takes place in Dubai, in the United Arab Emirates and in which the company has been participating since 2002, Fanem awarded its main distributors in the region in categories like distributor of the year, partner, best performance and friendship.
Award-winning exports
Apart from awarding, Fanem is also an award-winning company. Last month the organisation won, for the second time, the Exporta São Paulo award, offered by the Federation of Trade Associations of the State of São Paulo (Facesp), the São Paulo Trade Association and the Institute of Technological Research (IPT), for its high volume of exports, as well as for its growing international operation. In 2009, the company also won the Apex Brasil Award for Excellence in Exports, in the New Market Opening category.
Fanem currently produces 4,000 incubators a year. Apart from neonatal products, the company also makes coolers, centrifuges and autoclaves, among other equipment for laboratory use. Of all production, 50% goes to the foreign market.
Apart from producing, the company also helps educate professionals to work with the products. At the company showroom, Fanem receives nursing students from schools and hospitals, on average 3,000 students a year.
*Translated by Mark Ament
