New topic

In our previous edition we described the famous Frankfurt exhibition, though we could not go into detail on certain brands the representatives of which we met. In this edition we would like to fill this information gap and tell our readers about well-known foreign companies working on the global dinnerware market.

Gulsum Azeri, president of Pasabahce

-         How did your sales volume increase in 2005?

-         In the last year our global sales volume, Turkey included, amounted to 5% and to 18% on the Russian market.

-         Don’t you think that a 5% increase is quite a modest result on a global scale?

-         Not if you take into account that many international producers did not manage to achieve any sales increase. Some companies even experienced a decline. Pasabahce is one of the few large producers that has been demonstrating a sustainable growth over the last few years. High rate of growth in Russia is primarily due to development of our local manufacturing facilities in the Nizhny Novgorod region.

-         Do you think that your company’s popularity and increase in annual turnover is related to advertisements placed in the “Posuda” professional edition?

-         Of course, advertising in the “Posuda” magazine contributes to the success of our company on the Russian market. Our brand is fairly well represented in Russia, it’s popular and has a good position on the dinnerware market. We are happy to increase our Russian turnover every year.

-         Do you think that placing of a commercial section at the “Posuda” first opening has brought your company a successful PR? Was the success of your company complemented by mentioning your Russian distributors in your commercials in each edition?

-         I am sure that these commercials and a well-developed marketing strategy have greatly supported the brand promotion in Russia.

-         I think that all “Posuda” readers will be interested learn the plans of Pasabahce for 2006.

-         The year of 2006 will be the year of an active growth. Our Russian capacities are already working at peak load. The Russian market grows steadily, and we have made a decision to expand our production in Russia. By the end of 2007 we will have build the second and larger plant. Besides, at the end of 2005 a large Bulgarian plant has gone into operation. We strongly believe in development of this plant producing goods mainly for the Western Europe. The plant in Russia will be as large as that in Bulgaria.

-         As you know the territory of Russia is so big that locating a plant in just one region, be it Vladimir or Nizhny Novgorod, you may have logistic issues, i.e. those concerning transportation of goods. Have you considered construction of a plant or a warehouse in any other region (Volgograd, Povolzhie or Kazan), far enough from Niznhy Novgorod to allow of direct deliveries both from the north and from the south and to exclude excessive transportation costs?

-         We are certainly considering this option; however, as I said, this issue is being considered as has not been turned into a final plan yet. When choosing a territory for plant construction it is important to take into account the attitude of the regional government to investors. A foreign investor contributes his/her capital into production, thus creating working places in the region, supporting the federal and local budgets through taxes and developing the social sector. At the same time the investor puts his/her capital at risk. Therefore, the best hosting region will have the government that has created the most favorable conditions as regards industrial infrastructure, labor, customs, tax issues, etc. at all levels. We are thinking about locating our future plant in the Central European regions of Russia.

-         What is the share of Pasabahce on the Russian market in your opinion?

-         According to the year results, the market share of our company in Russia has approached 20% in terms of value, but we are interested in the further increase achieved through enhancing our Russian production sector. The key brand promotion and sales increase success component is ongoing design development. Our designers are constantly renewing the product design and, as you can see, it has no traditional (Turkish) style, is international in its essence and has become our way to success by being elegant, universal and functional. Our dinnerware equally suits household need and the requirements of HoReCa professionals.