Companies of Rio Preto and region opt to internationalization and break boundaries as a way of increasing competitiveness and strengthening the brand in the region of the regional national territory of Rio Preto that has a strong entrepreneurial DNA and it is the birthplace of brands that have achieved national recognition. After conquering space on Brazilian soil, they have followed the path of internationalization.
Franchises and companies of various industries, born in Río Preto and nearby cities have broken borders and today are spread over several countries. Products or services created by entrepreneurs of the region can be consumed by Americans, Angolan, Colombians, Argentinians and, a little further away, by the Iranians.
The process of internationalization of the brand has been gaining strength in recent years in the area of Rio Preto, but it is not only now that it is happening. iGUi network from Cedral, is the first franchise in Brazil in number of units outside the country, 38, according to the ranking of the Foundation Dom Cabral Foundation 2016, which considered data from 2015.
From 2015 to 2016, the presence has increased from 23 to 38, with new units, mainly in Central America and the Caribbean. In the internationalization index, iGUi holds the second place with 17.9%, behind the Dudalina, which owns 19.2% of operations abroad.
According to Filipe Sisson, Chief Executive Officer of iGUi, there are more than 200 shops abroad, including six factories, three in Argentina, one in Mexico, one in Portugal and one in Paraguay. Internationalization began in 2005 in Argentina. “We are managing to establish a franchise in Iran and overseas operation now accounts for between 15% and 20% of income,” said Sisson.
The global expansion plan aims to achieve the majority of the countries of the world in 2020. To do this, the network intends to grant license to factories (Masters franchises) for opening and consolidation of new markets, as well as to present different business models. This year, it is intended to achieve the goal of 50 countries and expand its operations in the United States, with the opening of two new franchises. Today there are already two.
iGUi was born in 1995 in Rio Grande do Sul to work with the manufacture and sale of fiber pools as well as filtering equipment . Arriving to Cedral in the year 2000, when it opened the first factory outside Rio Grande do Sul. The town of Cedral was chosen to be the company headquarters, in 2008, under the potential of the market of Rio Preto, for being in the Southeast parto f the country and also be a quiet city.
Process
The process of internationalization can be adopted by any company, said Thiago Brandão Farias, Director of Sebrae-SP, which varies, depending on it, what matters is the time of maturation, i.e. If you would need more or less work for that. “The first question is to know the company and what should be improved to reach the international market,” he said.
SEBRAE has an online tool that allows this diagnosis and who shows what it takes to be prepared. For example, if there is knowledge of the culture where the product is going to come in, if there are people who master the language, if the product needs adaptation. “Then comes the action plan for internationalization, where two points are fundamental: the product or service and which will be the market that you intend to start.” am I going to choose a cultural or geographically closest market? Is there any need to re-adapt the product or the brand? These are issues that are part of this stage, “he says.
To get an idea of the adaptation, Kibon maintains the same symbol in the countries where it operates, heart spiral, but every place has a different name (in Portugal is Hello, in the United Kingdom and China, Wall´s and in France, Miko, for example). This is a form of adaptation of the brand.
The main advantage of internationalization is the reinforcement of the brand within the country itself. Alliances with external partners also bring improvements in the operational part, with the knowledge of new technologies and market trends. “And there is still profit increase due to the reduction of the cost of production by increasing the scale,” he added.
Second, the preparation of the World Cup and the Olympic Games brought evidences to Brazil and aroused interest in some products such as swimwear and fitness, typical drink and food.
The internationalization is not limited to open a physical space, explains Farias. He says that exports through sites of business-to-business (B2B) are a way for small businesses to own participation in trade fairs abroad and international missions. “The entrepreneur needs to follow the trends in the world of the industry to face competition coming from outside.”
Source: Diario-Diario de la Region
