Italy-based Candy Group is entering into the regional electronics market with its wide range of white products. Company's Director Marco Corno is in Dubai to sign a formal distribution relationship with Eros Group.

Braving the current financial reality, the Candy Group intends to launch its range of products this summer with a month-long advertising budget of $100,000 (Dh367,200).

When asked about the need to launch during this time of crisis, Corno conveyed the silver lining and said "the worst is over and we are not here to launch a seasonal product, but here to stay, so it's never a bad time to launch the products.

"And we are also confident that summer holiday time, complemented with early Ramadan and Eid, will help boost the products and our brand."



Why launch a brand in these grim circumstances?

Launching a brand is a long-term investment and we are investing in the region for long term. That's why we have tied up with one of the leaders in electronics retail [Eros Group] and with their capable sales and marketing effort we are confident that we will achieve what we intend to in the region.

In addition, we have been told by our local partners that summer vacations are a good time for shopping and with Ramadan and Eid soon afterwards will definitely contribute to our efforts in the successful launch of Candy in the region.

Isn't Hitachi, distributed by Eros Group, one of your competitors?

Hitachi is a very healthy competition for us. But we are here to face the competition like elsewhere in the world and not run away from it. Candy will add to the efforts of Eros Group to increase their market share and we are certain that they will handle the two brands separately and with deserving attention.

What market share are you expecting in the region and how do you intend to achieve that?

We are a European brand and maintain a steady 10 per cent of the market share. We intend to duplicate the same share of the market and for that we count on the pedigree of our range of products.

The company is nearly 70 years old and our investment in R&D and the wide range is going to be the USPs (unique selling points) to make Candy a successful brand. We have a distinctive range of products that we are confident will appeal to the local population.

How much do you intend to spend on advertising and marketing?

Our annual marketing spend varies from region to region, but in Europe we spend around three per cent of the revenue. Of course in this market the figure will go as high as five to eight per cent, as we understand from our partners.

What is the current status of your company and the business in view of the economic crisis?

Candy is a privately- owned business, which always invest its own money. In all our acquisitions, we do not borrow money from outside but in fact invest our own capital. In the past we have acquired publicly listed companies in various parts of the world, including Turkey, China and Russia, but Candy acquires them completely and adds to its privately owned business.

As a result, we were not over exposed as large corporations and limited in the impact. Of course we have noticed the recession and after the third quarter of last year, we have recorded downward trend in sales in all our markets. However, that seems to be reaching a plateau and we feel that the worst is over.

The advantage of a global company is that while we have seen a sharp decline in Russia and some countries in Europe such as the UK and Spain, China and other countries of the region have compensated for the decline in business. Germany and France have been good for us, and they are already showing signs of recovery.

What is the strength of Candy range of products and how has it been growing in the recent past?

We identify ourself as a privately owned multinational company based in Europe with headquarters in Italy. In the recent past we expanded to other countries also for the purpose of manufacturing and distribution. The company has opened manufacturing units in Turkey, Russia and China.

Washing machine was the first product made by Candy in 1968 and even today it remains our strength with 57 per cent of our product line dedicated to producing washing machines. Other range of products include cooling products (18 per cent) and cooking ranges (15 per cent).

Last year company had sales of €1.5 billion (Dh7.6bn) and an indication of steady climb in the recent past. In 2007, our annual sale was €1.107bn and €1.054bn the year before. In volume, we have recorded more than 10 per cent of growth with 7.7 million units in 2007.

What is your investment plan for the region?

As of now we have set up a representational office in Dafza (Dubai Airport Free Zone Authority). This office will be for operations and distribution purpose only and we will be operating in close links with our partners Eros Group in the country. For later expansion and investment we will be keeping a very vigilant eye on all prospects.

 

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