São Paulo – There are no high seas for them. Among the talk of bad markets and weak sales, those who make a difference always find space. This is how it works for small companies that offer products and services nobody else has. According to a research by the Brazilian Micro and Small Business Support Service (Sebrae) in São Paulo, 47% of enterprises of this size develop some kind of innovation.
Tragial, a maker of car parts from Bauru, in the interior of São Paulo, is part of this team. Opened in 2004, by two "childhood friends who used to fight at school", the company entered the market disputing Chinese competition in the sector of electric locks. And, truly, innovation has been the principle since the beginning. "We wanted to develop a product that would not affect the car so much during installation, as is the case with the universal locks that came from China," explained Gilson Donato, the administrative director at Tragial, alongside partner Alexandre Carlos Guedes. "Thus, we created a different lock for each car, much easier to put in," said Donato.
On analysing the work of competitors to try to get ahead, Donato managed to establish his market with no great difficulty. "The market reacted fast to the arrival of our locks," he said. "In the end, we managed to develop a product whose installation time is 50% lower than the Chinese product, for a price that is only slightly higher," he explained. According to the businessman, the Tragial product costs between 58 and 65 Brazilian reals (US$ 34 and US$ 69), against, on average, 45 reals (US$ 27) for the Chinese product. "As it is faster to install our product, the economy in work hours makes the difference," he said.
The result of the efforts is the current production of 12,000 locks a month, sold in Brazil and exported to markets like Chile, Venezuela, Argentina and Colombia. And with the right to hiring an employee last year exclusively for the foreign market. "We are going to invest more abroad," promised Donato.
And to mention possibilities, consultant Evelin Astolpho, from the Sebrae, explained that the concept of innovation is broad and may offer different products and services, but may also result in differentiated processes in the company, targeting greater productivity. "It may even be the implementation of a new kind of marketing campaign, for example, or a change in business practices," she said.
According to Evelin, innovation makes itself present in the enterprises led by businessmen who prioritise differentiation. "They are those who accept suggestions by their employees and are ready to learn, unlearn and learn again," she said. "Stimulating creativity is fundamental. Innovation must be seen as investment, not an expense."
Among the guidance options made available to entrepreneurs, the consultant points out the Sebraetec, Sebrae’s program for technological consultancy, and similar initiatives developed by the Studies and Projects Funding Body (Finep), under the Ministry of Science and Technology, and the State of São Paulo Research Foundation (Fapesp), for companies in São Paulo.
According to Evelin, innovation means greater competitiveness and access to new market niches. "Those who do that have greater profit," she says. "Not innovating may result in higher costs for a company." Straight from Bauru, the re-inventor of electric locks agrees with the consultant. And he gives clues to those that, like him, want to escape the basic. "It is necessary to be aware, understand the market and seek opportunities, which are there for all," teaches Donato.
Tomorrow, in the series of articles about small companies that make the difference, read:
What does the woman from Bahia offer… fashion way beyond tendencies of great brands
*Translated by Mark Ament
