Mabe to bring its own brand to Brazilian market
Valor Econômico - 02/15/2008
A new brand of refrigerators, stoves and washers will reach the market in the second half of this year. The name - Mabe - may be unknown to Brazilians, nonetheless Mabe has known Brazilians for quite a long time. The Mexican group produces and sells the products of the white line of the American Multinational GE for all Latin America, including Brazil. Mabe is the owner of the Dako brand, national manufacturer purchased by GE in 1996 and leader in sales of stoves in Brazil. This year, the Mexican multinational, the greatest producer of the Latin-American white line, decided it was time to bring its own brand of electric household devices into the Brazilian market. "Mabe will have an intermediate position between GE and Dako", declares Patrício Mendizabal, in charge of the operations of the multinational in the Mercosur (South Cone Market). GE is aimed at the high-income public, whereas Dako is popular. Mendizabal admits that the building of the Mabe brand in Brazil will be a difficult mission. The company already faces, together with GE and Dako, the strong competition of Electrolux and Whirlpool, two of the world major white line manufacturers and absolute leaders in refrigerators in Brazil. Specialists also believe that is not always the best strategy. Whirlpool, for instance, wasn't willing to take risks in Brazil, where it continues investing in the local Brastemp and Consul brands. Currently, with Dako and GE, Mabe has a market share of 17% in the white line Brazilian market. "It is the smallest participation of Mabe in Latin America", says Mendizabal, who foresees the improvement of the performance with the launch of a third brand. Mendizabal doesn't say how much will be invested - the marketing allowance is still being budgeted, he says -, but the building of a brand is not something cheap. "It will be the greatest isolated investment of Mabe in Brazil", says Mendizabal. The Mexican group took over the operation of GE in the Brazilian market in 2003. Since then, it invested US$ 200 million in the country. The effort, however, is worth it. In 2007, the sales of Mabe in Brazil increased 40% and are already at approximately US$ 500 million a year. In Brazil, the group has three factories, two in Itu and one in Campinas - both in the State of São Paulo.