São Paulo – The Brazilian auto parts manufacturer Fras-le is gaining ground in the Arab market, and one of the reasons is growing sales to small distributors. A year ago, in June 2014, the company inaugurated a distribution center in Dubai, which enabled it to reach out to wholesalers not accustomed to importing, who buy small amounts, Fras-le’s commercial and technology director Paulo Gomes has told ANBA.
“These are clients that purchase in smaller volumes, who have a hard time dealing with non-local suppliers,” says Gomes. Companies with no English-speaking staff or no import department fit this profile. In order to serve them, Fras-le keeps its products in storage at the distribution center in Dubai. The parts stored at the facility are sent in from the company’s plants in Brazil and China.
The commercial director remarks, however, that Fras-le keeps exporting from both plants to its network of distributors that buy larger volumes, in whole containers. These buyers resort to the distribution center only when they are short on some of the products. “We’re going capillary,” says Gomes. The distribution center was officially launched during the Automechanika Dubai 2014 expo, in June.
The executive says operations are still timid this first year, as expected this time of year. “But our experience is a very positive one,” he says, regarding the strategy of having distribution centers around the world, and the growth they afford. Fras-le has similar units in Germany, the United States, China and Argentina.
According to Gomes, Fras-le is doing well in the region and sees a potential for very strong growth there. From June 2nd to 4th, the company will take part in Automechanika Dubai 2015, in a space organized by the National Union of Auto Parts Manufacturers (Sindipeças). The fair has editions in other countries, such as China, Germany, South Arica and Argentina, which the company also attends.
The exhibition is a place at which to seek out new business and meet local clients. “It is a rendezvous with our clients in the region,” says Gomes, mentioning that visitors include distributors of Fras-le’s auto parts in Egypt, Saudi Arabia, Iran, Iraq, Turkey, India, North Africa and other places. The Fras-le will feature personnel based in Dubai and Brazil.
The results released by the company last week show the Middle East’s share of overall exports by Fras-le has grown in Q1 this year. As previously reported by ANBA, the region was the target of 4.1% of the company’s foreign sales from January to March 12015, and 3.7% in the comparable period of 2014.
*Translated by Gabriel Pomerancblum
