Taiwanese Exhibitors Upbeat About Automechanika Istanbul
Only those supplying hard-to-copy products at popular prices can survive
2013/10/04 | By Steve ChuangTurkey's most influential trade fair for the auto parts industry, Automechanika Istanbul 2013 rounded off on April 14, in TUYAP Fair, Convention and Congress Center with a larger turnout compared to the 2011 edition.
Despite the half-day flight to the country, some 20 Taiwanese companies took part to find new customers and mostly thought the efforts substantially paid off.
In a brief interview with CENS (China Economic News Services), Dennis Khang, general manager of Khang's Industries Taiwan Co., Ltd., an auto parts supplier, was pleased for the considerable business opportunities, despite having a poorly located booth in the Hall 1.
“Seriously attending this show to find new customers is better than expected, not just because we meet lots of new buyers but most of them are not locals but from South Europe and the Middle East, hence enabling better access to other markets,” says Khang.
The first-time exhibitor comments that this emerging market brims of opportunities for sure, with price being priority and copying a serious problem, issues that make the market quite competitive and unfavorable for mediocre players. Only those supplying hard-to-copy products at popular prices are more likely to survive, says Khang.
However, Khang is still confident of building a profitable niche in the market, for Khang's Industries specializes in making and exporting auto parts specifically for European makes and models like Audi and Volkswagen since its establishment in 1974, with some supplied on the OEM (original equipment manufacturing) basis, being obviously a seasoned supplier.
Following years of business with local customers, Shiniest Industries Inc., an auto parts and accessory supplier, took part in Automechanika Istanbul for the first time and was impressed by ample international buyers, according to its office manager, Candy Liu.
“Potential buyers steadily filled our booth. Most were from Southern and Eastern Europe, and a few were locals, but generally they were interested in our products. I think this show links Turkey with nearby countries in Europe and Asia, which enables us to efficiently explore other markets,” says Liu.
The Turkish market is not easy to penetrate for most Taiwanese companies for now, partly due to the flood of counterfeits and also language gap. “But shipment to the country still generates modest revenue for my company after only a few years of development. We keep working hard in the market and believe bigger sales will be achieved,” says Liu.
Liu's optimism is driven by her company's strong R&D capability. Since founded in 1983, Shiniest has focused on developing auto parts and accessories mainly for the aftermarket in Europe, the U.S. and Australia. Backed by skillful engineers, Liu claims that the company steadily develops new products every quarter, which not only helps customers to boost sales, but also sets market trends. Such concentration on R&D enables the supplier to keep afloat in 2012 during the global recession.
The rapid development of the Turkish automotive industry triggers considerable local demand for auto repair and maintenance equipment and tools, motivating Rich Star Precision Industry Co., Ltd., a well-known supplier of spray guns and accessories under the Star brand in Taiwan, to attend Automechanika Istanbul this year for the second time.
Tony Wu, Rich Star's marketing and sales representative, was surprised that Automechanika Istanbul 2013 saw a larger turnout and better organization compared to the 2009 edition that disappointed his company in return-on-investment. Wu noted that Turkey is today a market full of energy with tremendous potential.
Since Rich Star has branched into automotive spray guns from textile and construction, Wu hopes that Turkey will drive sales growth and he is more upbeat after witnessing the success of Automechanika Istanbul this year, also its emerging automotive industry.
While local consumers are mostly price-sensitive, Wu believes the Star brand is focused on the mid-to-high-end segment for professional spray guns that should be popular in the market due to solid quality and improved functionality. To that end, the company debuted its newest SMP-106F-J and EVO-T-106F-J spray guns with an aluminum and plastic cup, respectively, at the show. The two spray gun models both feature strong forged body with anodized finish, quick treading for air caps and fluid caps, and ergonomic design for easy operation. “The guns have attracted ample attention amid visitors over the past few days to make us confident of hot sales,” says Wu.
Founded in 1970 in Taichung City, central Taiwan, Rich Star is noted for manufacturing and seasoned R&D capability, with products proven to be sought-after by professionals in the U.S., China, Europe, Australia and Southeast Asia.
Tracy Yen, sales executive from Elmen Precision Industrial Co., Ltd., a supplier of turbocharger parts as turbines, compressor wheels, nozzle rings, bearing housings and cartridges, says that Automechanika Istanbul lives up to its reputation as a door to the Turkish automotive market.
“We took part to observe the market and came away with better-than-expected results; and we also saw overwhelming crowds reflecting the dynamic market. As Elmen Precision concentrates on promotion in the European market, our company may continue to attend this globally reputable show again to strengthen presence in the market,” says Yen.
Competing on superior quality and innovation to create added-value for customers in the aftermarket, Elmen Precision has been successfully building presence mainly in Europe for years, supplying turbo charging equipment for agricultural vehicles, buses and trucks, engines. “Our company posted banner growth in the first quarter of this year and will try to maintain the momentum by participating in more trade fairs globally in the remainder of the year,” says Yen.
Cecilia Chen, sales & marketing representative of Tong Hong Automobile Parts Co., Ltd., a veteran maker of engine gaskets in Tainan, southern Taiwan, was kept busy handling visitors and introducing products, showing positive business atmosphere.
Following years of development, this show has actually evolved into a globally influential trade fair that can attract a large number of high-quality suppliers and buyers from home and abroad, especially Turkey's neighboring countries. “Taking part in this show to speed promotion in the regional market can be an ideal option—this is what we aim to do,” says Chen.
While local buyers are price sensitive, Chen says that, based on some 10 years of experience in the market, Tong Hong can still remain competitive against local rivals, due to emphasis on reliable sources of top-caliber materials that may not be accessible to peers. The supplier enjoys solid reputation in both the aftermarket and OEM segment worldwide.