São Paulo – In the face of lower exports to traditional destinations, Teka, a maker of bed, table and bath linens from Santa Catarina has decided to strengthen the promotion of its products in emerging markets like those of the Middle East, Africa and Eastern Europe.
According to the Marketing and Export director at the company, Marcello Stewers, with the international financial crisis, sales to the central economies, especially the United States and the European Union, have become harder. Apart from that, Argentina adopted protectionist measures in the textile area, requiring non-automatic licenses for the imports of products in the area.
According to him, the search for expansion of business in non-traditional markets began last year, when the real suffered great devaluation as against the dollar, making Brazilian products cheaper abroad. "Our planning includes greater work to reach niches that are not so greatly explored, but we have always exported to the Middle East," said the executive, adding that the company sells to the entire region and to 17 countries in Africa. The volume of business, however, is small.
To expand shipments to the Middle East and to the emerging markets, the company plans to promote actions like visits to markets and participation in exhibitions and trade fairs. One of the objectives is to expand sales to these countries to between 8% and 10% of total company exports.
Stewers added that exports to the Middle East were stronger in the past, but over the last five years the company started focussing more on the North American market. Foreign sales currently represent between 30% and 35% of company business.
To the executive, in the sort run, emerging markets are not going to compensate the losses in sales to traditional destinations, but in up to two years they may represent an important share of foreign sales.
Teka was established in 1926 and has been exporting for 42 years. The company is headquartered in Blumenau, has another three factories in Santa Catarina and one in the state of São Paulo. The organisation employs 4,300 people.
Site: www.teka.com.br
*Translated by Mark Ament
