Innovation made in Greece

In Tune with the Local
Connected to the World
Special
Edition
E
X
P
O
R
TS
A driving force to recovery
JUNE 2012
“Man cannot discover new oceans unless he
has the courage to lose sight of the shore.”
Andre Gide
In the light of the adverse current international economic
environment, this newsletter, will try to show a glimpse of how Exports
through its people, can and certainly will play a key role in the growth
strategy of Greece.
Exports represent one of the most important sources of foreign
exchange income that ease the pressure on the balance of payments
and create employment opportunities. Exports can increase intraindustry trade, help the country integrate and compete in the world
economy and reduce the impact of external and internal financial
shocks.
Indicatively, the exports as a percentage of GDP among the wealthiest
countries in the world varies between 17% in UK, 20% in France, 21%
in Italy and reaches an overwhelming 27% of GDP in China and a 37%
in Germany.
On a corporate perspective, a solid path for a company to optimize its
global dynamics is to achieve a 20% exports share on total revenues
and presence in more than 2-3 countries. In this context the size
of a company is not an obstacle for exports as there are plenty of
successful small-medium scale companies with huge success abroad
(“the invisible champions”).
In the era of globalization of economic activities, Greek exporting
companies, regardless of their size, sector, capital and managerial
structure, face the issue of optimum model of internationalization.
Greek companies nowadays have serious motives to expand their sales
abroad including the significant decline of the domestic market and
the intensification of the competition. The company’s extroversion
facilitates risk diversification, boosts innovation and application of
new technologies, creates new job opportunities, enhances access to
global practices and finally, guarantees company viability.
The Online Executive News for Corporate Leaders
In 2011, Greece achieved a 37% increase in exports, a figure sensibly
higher than the European Union average which stood at 11.3%.
In absolute terms exports reached 22.4 billion Euros and contributed
10.4% to the country’s GDP. It is needless to say that there is still
plenty of room for improvement; 35% of exports executives, who
participated in our survey, work for companies whose exports
contribution is less than 10% to the total turnover. In real numbers,
12,000 companies are exporting, only the 2% of the private sector.
Contents
p1
p2,3
Editorial
First National
Exports Survey
The major challenge for Greek exporters is to deliver high quality products and services that can compete for significant share in global
markets. A strategy combined of syndicated efforts and synergies between Chambers of commerce, commercial attachés, trade
associations, increased funding and of course less bureaucracy, must
gear this effort.
p4
Skinos
p5
Korres
p6
Gaea
Specialized multi-cultural executive profiles, continuous training, advanced technology, optimum production capabilities, innovation
and R&D, are the enablers for a National Export Strategy that will consequently create an Export Culture in our country.
p7
Kallimanis
I am very confident that Greek Exports will be a significant
contributor to the GDP of Greece in the next years and quite
optimistic for the future of our country. When
the dust settles down, Greeks will turn the
page and move on as they have done at
numerous instances back in history.
“Made in Greece”,
valued worldwide.
I would like to thank all participants in this issue; it is an honor
and pleasure hosting you in our
Newswire.
Enjoy your reading!
Harris Pezoulas, President
72 offices in 46 countries
p8,9
Panhellenic
Exporters
Association
p10,11
p12
Chipita
p13
Pharmathen
p14
Sidenor
p15
Alumil
p16
Corallia
clusters
initiative
Folli-Follie
First National
What competencies are required
for a successful Exports Management team?
Flexibility/adaptability
Strategic orientation
Exports Survey 2012,
by Stanton Chase Athens
Customer orientation
upper and senior Executives.
E
xport expansion and economic development are closely
related. The high-growth countries are characterized by rapid
expansion in exports. Here again it is important to note that
export expansion is not confined to those countries fortunate in their
natural resources, such as the oil-exporting countries. Some of the
developing countries were able to expand their exports in spite of
limitations in natural resources by initiating economic policies that
shifted resources from inefficient domestic manufacturing industries
to export production.
Nowadays, more than ever, Greek exporting companies must target,
set as their priority and achieve a long-term competitive advantage in
the international markets.
The survey took place in April 2012 among 450 respondents. 60%
were at a Managerial/Director level, 6.4% were General Managers
(with double role), 6.4% were Owners while the rest were Marketers
(3.2%), New Business Development Managers (9.6%) and upper-middle level executives. Furthermore, 83.9% were male and 1 out of 2 in
the age group of 40-50. Most respondents are employed at Consumer
Products (42.4%) while Pharmaceuticals absorbs 11%, Retail 7.6%,
Energy 5.9% and Logistics & Transportation 3.4%.
The vast majority of Exports Executives believe that Greece will see
the first signs of economic recovery after 2 years (46.6%) while a
44.9% foresees recovery after 3 years. However, they are quite optimistic regarding the positive contribution of exports to the country’s total recovery. More specifically 75.4% of respondents claim
that exports will contribute significantly to the recovery of Greece and
83.9% agree that exports can be a leading contributor to the GDB of
Greece in the next 5-10 years.
A key topic is the key sectors where the major developments are
expected and in that question respondents replied in Agricultural
sector (78%), Energy sector (49.2%), Greek gastronomy (42.4%),
Services (31.4%), Industrial sector (25.4%) and Consumer Products
(22.9%). Concerning the respective developments in product categories, those are expected in Fruits/Vegetables (62.7%), Fish farming/
Aqua culture (50.8%), Cheese/Dairy (37.3%), Pharmaceuticals
(28.8%), Oil/Petrochemicals (25.4%), Aluminium (20.3%).
78.0 %
49.2 %
Greek gastronomy
Overall there is great opportunity in the development of exports
across sectors as the current % contribution of exports to the total
company’s turnover is still relatively small. Indicatively 35.6% of
respondents work for companies whose exports contribution
is less than 10% to the total turnover. It should also be emphasized that there is potential in the geographical coverage as
well. Key exporting areas are right now: Eastern Europe (79.7%),
Western Europe (72%), Asia (50.8%), Africa (44.1%), US (42.4%),
Australia (31.4%), Russia (28%) and CIS countries (25.4%).
31.4 %
25.4 %
Consumer products
22.9 %
Technology
7.6 %
Other (please specify)
5.1 %
To which geographical areas does your company export?
0%
20%
40%
60%
80%
In which product categories do you expect major exports development?
80%
Eastern Europe
79.7 %
Western Europe
72.0 %
Asia
62.7 %
60%
50.8 %
Africa
44.1 %
50.8 %
US
40%
37.3 %
19.5 %
19.5 %
18.6 %
7.7 %
20.3 %
40%
60%
It is also interesting which sub-function of Exports will be in demand
during the next 12 months: First comes Area Exports with 55.1%.
Second comes Customer Service with 39.8%, third Logistics 39% and
fourth Sales operations by 34.7%, while respondents believe that the
available job opportunities are more likely to be found in the sectors of:
1. Energy (58.5%) 2. Consumer products (55.1%) 3. Pharmaceuticals
(39.8%) 4. Retail (28%) 5. Logistics & Transportation (26.3%).
Exports executives would consider a career move provided that they will
undertake a more senior role with increased responsibility, increased compensation and benefits and an implied international relocation assignment.
The percentage of Exports Executives who wish to explore the possibility of a new career is quite high: 54.2% The most known and effective
way to achieve change in career, with a significant percentage of 56.9%,
is through Executive Search companies. After that, follows the Networking, meaning the expansion and development of the private network of
acquaintances and contacts (56%).
39.8 %
Very much
Somewhat
Not at all
31.4 %
Russia
25.4 %
20%
How interested are you in investigating a new carrer opportunity?
42.4 %
Australia
28.8 %
20%
23.7 %
0%
42.4 %
Industrial
31.4 %
Ability to work skillfully
with teams
Results orientation
Creativity
management ability
Other Responses
In which sector do you expect major exports development?
Services
33.9 %
Strongh commercial/
marketing background
Networking
Energy
for the first time to explore the “world” of Exports and its
45.8 %
39.8 %
Communication skills
Agricultural
to a series of surveys conducted either functionally or
45.8 %
Multicultural experience
In those turbulent times for Greece and in continuation
sectorially, Stanton Chase Athens took the initiative
56.8 %
28.0 %
CIS
25.4 %
12.7 %
9.3 %
5.1 %
0%
5.1 %
3.4 %
Fish farming/
Pharmaceuticals
Aluminium Other (please specify) Tubes/Pipes
Aqua culture
Fruits, Vegetables Cheese, Daily Oil-Petrochemicals PDO products
Cotton
All Other Responses
Undoubtedly nowadays executives in Exports are required to manage
complex problems in an unstable and quite difficult environment.
There are though certain reinforcers which can accelerate exports
development and the research concludes that these reinforcers are:
Quality of products (50.8%), Access to emerging markets (43.2%),
Trend for Mediterranean diet (37.3%), Tourism experience on
Greek products (36.4%), Skilled and available workforce (32.2%),
Product customization per market (26.3%), Government / banking
support and subsidizing (25.4%).
On the other hand there are various obstacles which constrain the
development of exports in Greece with Bureaucracy rated as by far
the number one obstacle. Respondents also mentioned other obstacles such as lack of specialized exports marketing, not sufficient export
culture and experience, competition forces, cost issues and production
capacity issues.
0%
20%
40%
60%
80%
With regard to the priorities of the Exports Department, in the first
place is the Identification and Assessment of distributors. Second
comes the Access to International market information followed
by Product availability, Specialization of products and Back office
support.
During the last year the performance of Senior Export Managers
have been affected by Pricing pressures, Cost consciousness, Competition, Recession and Restructurings.
The role of an Exports Management team is extremely crucial during
the recession. But which are the competencies required? Flexibility/
Adaptability is by far the most important (56.8%). Other competencies are: Strategic orientation (45.8%), Customer orientation
(45.8%), Multicultural experience (39.8%), Communication skills
(33.9%) and Strong commercial/marketing background (31.4%).
If it was required to rate the capabilities based on their importance,
the hierarchy would be as follows: Customer Service, Sales Management, Marketing and Key Account Management.
5.9 %
54.2 %
Huge willingness is observed in exploring opportunities for relocation
abroad (70.4% responded positively to this possibility). With greater
ease, the Exports executives would move to the nearest more familiar
markets of Eastern Europe (71.8%). Furthermore other regions considered are: the Gulf region (67.9%), CIC countries (41.0%), Asia (37.2%) and
to a lesser degree in Africa and Latin America (24.4%). Finally respondents have spotted those skills needed in order to achieve their career
goals and the first two are related with their “own brand development”, in other words to increase the ability to become more visible in
the market (69.3%) and to develop their own marketing plan (51.8%).
Last but not least the development of personal skills, the alignment
with Executive Search consultants, the development of technical
skills and the enrichment of their academic background were also
rated as quite import for career advancement.
ExecutiveNewswire 06/12
3
Chat with Nancy Mathioudaki, Partner
On the other hand Mastiha is indigenous
to Greece and there is no other place in the
world that this unique aromatic raisin could
be found.
Demetre Steinhauer, Managing Director
Your decision to leave the corporate world:
I joined IDV Greece in 1994 initially in the
finance department and then moved into
the marketing department as a Brand
Manager.
In 1997 I moved in PILLSBURY (DIAGEO
subsidiary) as Market Manager for Haagen
Dazs business in Greece, Middle East &
North Africa. My key responsibilities were to
develop the Haagen Dazs brand either by
setting up from zero or restructuring already
existing organizations.
In 2000, I made a shift in my professional
career by joining the leading strategic
communications and public relations
agency in Greece, BELUGA & ASSOCIATES,
as a General Manager. At BELUGA &
ASSOCIATES I had the chance to work with
some of the major FMCGs and service
companies of Greece as well as to be the
leading communication partner on the
Volunteers Communication program of
ATHENS 2004.
I have always had an entrepreneurial
attitude as a professional but I made
the decision to start my own business in
2004 setting up, with my brother Alfred,
CONCEPTS an imports / exports company in
the alcoholic beverages business.
Leaving the “safety” and the structure of the
corporate world was not an easy decision.
History of the brand:
We were always looking to build our own
brand in the world of spirits to drive our
exports business.
Mastiha liqueur was an unexploited
territory, a rather forgotten category, mainly
represented by some artisanal brands with
poor presentation and non existent exports
track record.
Skinos was launched in 2005 in Greece and
soon enough became one of the fastest
growing brands in the spirits business in the
market.
Exports started in 2006, initially in Europe
and then in US, Canada and Australia.
What does the brand stand for:
The ultimate definition of Skinos is truly
a Mediterranean spirit. A contemporary
premium brand based on a unique
ingredient –with great history- that
flourishes on a small island of the east
Mediterranean.
Sales Channels:
Skinos has a wide distribution both in the
retail as well as in the HoReCa market.
Achievements of the brand so far in Greece:
Skinos is exported in more than 15 markets
with great success. Major markets for the
brand are US, Canada, Australia, Cyprus,
Lebanon, Switzerland and Germany. What is
amazing with the brand is that we managed,
in a very short period of time, to take the
brand beyond the Greek communities and
penetrate the local audiences on each of the
above markets.
Skinos is the only Greek liqueur that got the
Gold Medal at San Francisco World Spirits
competition and currently is the number
one Greek liqueur brand in exports.
Do you market the brand differently in
Greece than abroad?
Exports marketing requires a level of
adaptability to the needs and specifications
of any given market. Within this perspective
we always try to adapt our strategy to the
local needs and to the profile of the market.
Barriers to exports:
The country’s of provenance brand equity,
in this case of Greece, is reflected on the
product brand equity that is exported.
The truth is that the perception of Greece as
an exporting country is characterized by a
good range of authentic quality products.
Red tape procedures is always an issue then
again with good preparation this can be
easily resolved. Another significant barrier is
weak support of exports from the state.
The perception of a Greek entrepreneur
abroad:
I do not think that the Greek entrepreneur
is stereotyped abroad. I believe that Greek
entrepreneurs are generally flexible and
resourceful and if I had to point out a major
weakness then this would be the capacity
to focus on our targets and build a plan to
achieve them.
Future challenges:
We have just launched the first
Mediterranean value added sparkling water
with Mastiha, a product that we believe will
have a tremendous potential in the foreign
markets as well as in Greece.
Opportunities for Greek exports in general:
I believe deeply on the potential of the
Greek products as long as we, the exporters,
understand the need to implement long
term brand building strategies and the
government employs contemporary
techniques to support the exports.
Are your optimistic about the future of our
country?
The major pillar in entrepreneurship is
optimism, the faith that tomorrow things
will be better than today. From that point of
view, I am passionately optimistic.
A Success Story in Beauty.
An article by Dimitris Vidakis, CEO
By Andriana Theodorakopoulou, Consultant
the first cosmetic worldwide based on
the Nobel-awarded discovery of the
Proteasome - a result of primary research
on ‘Proteasome & Ageing’; the first natural
cream to achieve higher scores on all
comparative crash-tests with the market’s
top-selling anti-ageing creams.
The beginning
The Korres story begins at the oldest
homeopathic pharmacy of Athens. George
Korres joined the pharmacy team in
1989 while still studying Pharmacology
and though skeptical at first about
homeopathy, he was soon overwhelmed
by the power of natural ingredients.
Driven by his own passion and deep
understanding of herbs, George envisaged
the development of a natural skincare
line, which was realized soon after, led
by the pharmacy heritage, his knowledge
and understanding of over 3,000 herbal
remedies and his quest for a more natural
approach. In 1996, Korres was born. The
brand’s simple philosophy was rooted
in four core principles that remain the
same as in its early pharmacy days:
natural and/or organic ingredients; skin
and environmentally-friendly products;
clinically-tested efficacy; affordable
and of interesting aesthetics. These core
principles remain the same since the
initial pharmacy days; and due to their
universal appeal, they helped establish
Korres as a global brand, despite not
having an international customer in mind
when it first started.
Today
Korres grew into a respected brand by
focusing its research and development
efforts on addressing skincare needs with
natural ingredients without compromising
the benefits associated with conventional
skincare, and developing natural products
to help solve conditions that traditionally
require heavy chemicals. Within its 15 year
history, the Greek skincare brands count
three worldwide innovations including
The Korres portfolio now includes over
400 natural and certified organic products,
with brand presence in 30 countries. In
addition to stand-alone Korres stores –
25 stores in cities such as Athens, Paris,
Madrid and Singapore – products are also
in exclusive department stores in Tokyo,
Los Angeles, Milan, Berlin, Sydney,
Hong Kong and in over 6,500 pharmacies
in its homeland, Greece. From one single
pharmacy, one product and a team of two,
Korres has grown to an over €40 million
business (the company ended 2011 with
approximately €42.6 million sales).
Korres is currently developing its
diversified expansion abroad, moving
from the initial ‘global awareness’ phase
to a deeper mature-market penetration
strategy. The brand’s natural retail
environment due to its roots, herb heritage
and research focus, is the pharmacy
distribution network for markets where
natural cosmetics are predominantly in
pharmacies. Due to the brand’s equity
– natural and clinically efficacious,
ethical, pleasing to use, affordable and of
interesting design – Korres sits equally
well in high-end, luxury department stores
as well as specialised cosmetics retailers
and independent beauty/perfumery shops.
In department stores, products are usually
in the natural cosmetics section or in the
para-pharmacy area where available.
In some cases, the brand has managed
to secure shop-in-shop areas within the
cosmetics hall.
The future
Research will remain fundamental to the
company’s growth in terms of product
development; identifying natural ways
to activate specific biological paths that
enable cells to prolong their healthy
life-cycle. Korres realizes science and
technology today have made possible the
use of several raw materials in a way that
allows us to develop clinically effective,
natural and sustainable formulations that
are as good as conventional solutions yet
more skin and environment compatible,
without compromising on performance.
To that end, the company has just
strengthened its anti-ageing and hair care
portfolio [2012 launches] consistent with
its continuous effort to introduce natural
problem-solving products addressing key
concerns. In terms of its global presence,
Korres is set to continue growing, through
targeted initiatives focusing on its top
international markets, aiming to further
strengthen the brand’s presence in both
mature markets [US, UK, Germany,
Spain] and those that present great
potential [Russia, Scandinavian countries].
Crisis
Despite the adverse financial environment, 2011 closed with sales and market
share growth [Pharmacy Network] in
Greece for the KORRES Group - The
Group achieved a 6% sales increase
in Greece alone [Pharmacy network],
enhancing its market share by 50 bps,
reaching 10% in 2011 vs. 9.5% in 2010.
Outside Greece, the Group has further
strengthened its international presence
with its export sales increasing by 15% [in
fact the sales growth for priority markets
such as Germany, Spain and Russia was
18%]. The crisis is partly an opportunity
mainly due to an exceptional shift in consumer buying behavior; not only because
of the bias towards Greek brands but more
so because of the need for affordable and
efficacious skincare; the number of consumers going to the pharmacy in search
of affordable dermocosmetics - instead of
expensive, luxurious creams found in the
selective market – is constantly growing.
ExecutiveNewswire 06/12
5
Out to lunch
with Harris Pezoulas, President
Overview of Greek exports and of
Greek companies’ extroversion
Although Greece produces a wide variety
of top quality food products thanks to the
excellent climate that makes the earth fertile,
most Greek food companies until recently
were either trying to make some short term
profit by selling their products mainly bulk or
were focused in the domestic market which
before the crisis used to be a very lucrative
market. Nowadays, a substantial number of
good Greek companies producing excellent
products realized that they cannot rely any
more exclusively or predominantly to the
Greek market for survival. At the same time
they realized that exporting is not easy, nor
can you develop distribution networks and
sales internationally in a fortnight by a change
in your priorities. The realities of the crisis
will change mentalities, and will eventually
create a dynamic group of Greek companies
with strong export orientation and strategies
geared for the international markets.
Company presentation and
corporate actions abroad
Gaea was founded in 1995 upon the
realization that Greek agricultural food
products, despite their inherent high quality
and good taste, were absent from the
international markets. Our company’s vision
and mission is to offer high quality, authentic
Greek products with the aim to make the
brand name “Gaea” the leading Greek brand
internationally synonymous to quality,
traditional, authentic and innovative Greek
specialty food products, promoting “meze” –
the culture of sharing as the authentic Greek
Mediterranean culinary experience. Gaea sells
its products in most developed markets of
the world and exports account for 82% of our
company’s annual turnover. The other 18%
of its turnover is achieved in the domestic
market, where Gaea is the number one brand
in the organic olive oil and organic olives
category. Gaea manufactures all its products
in its state of the art factory using the highest
quality natural and organic ingredients
available. All of our products are 100% natural
and free from additives or preservatives
supporting consumer wellness through a
healthy tasty and balanced diet. Gaea has
strong presence in most international markets
yet our focus is in N. Europe and the US.
Our major markets are: Germany, UK, USA,
Russia and Scandinavia. According to Nielsen
statistics Gaea is: number 3 brand overall and
leading Greek brand in the olive oil category in
Germany, number 3 brand and leading Greek
brand in the olives category in the UK, number
1 brand in the olives category in Norway and
number 2 brand in the olive oil category in
Norway , number 1 brand in the organic olive
oil and organic olives category in Greece,
number 3 brand in the olive oil category in
Russia, while it is the fastest growing brand in
the olive category in the US.
Aris Kefalogiannis, CEO
Future challenges / opportunities for
development
Gaea is now expanding in Austria, Slovenia,
Poland, Cyprus, China, Italy. Our goal is to gain
wider market share in all other countries in
which we do have presence as well as to enter
new markets such as the Balkan countries
and the Arabic peninsula. In addition,
our company is now moving forward in
expanding our range, entering into new,
exciting product categories in cooperation
with Greek companies and producers of high
quality products under our new concept
“cooperation – synergasia” and dual branding,
with one goal – to create a basket of authentic
– quality Greek products and to promote the
best of Greece in the entire world.
Challenges for the exports’
executives
The biggest challenge that an executive from
Greece faces today in the international markets,
is the poor image of Greece and the low morale
of Greeks, as a result of the economic crisis and
the bad publicity on our country.
The other major challenge relates to the
short-termism of the strategies adopted by
Greek companies that have been spoiled in
the past by the easy profits made in the Greek
market. On the contrary, export markets
require long term strategy, consistency, reliability and focus on the values and goals of
the company.
Current situation - impact of the
crisis on the specific sector
Gaea is seeing the crisis as an opportunity
to expand and assist other Greek businesses
who are struggling to survive the collapse of
the domestic market. Given Gaea’s international distribution network, consisting of the
absolute market leaders in the distribution
of specialty food products in their respective
market, the company is working with other
Greek businesses that supply the very best
authentic food products in developing joint
ventures with them with a long term view
of taking these products to the international
market. At the same time Gaea keeps expanding the sales of its core product range,
growing our sales in all international markets
despite Greece’s poor image internationally
because of the crisis.
Ways to overcome the crisis
The deep economic crisis is the result of
bad practices, consumerism and state
bureaucracy and control of economic activity,
plus a society that lost values and vision. The
reforms are an absolute necessity as well as
the transformation of our society and the
inspiration that a new vision and values will
bring. If the reforms take place I believe that
then Greece will positively surprise the world
with strong and healthy growth.
Discussion with
Andriana Theodorakopoulou, Consultant
Overview of Greek exports and of Greek
companies’ extroversion
Company presentation and corporate actions
abroad
Future challenges / opportunities for
development
Challenges for the exports’ executives
Current situation - impact of the crisis on the
specific sector
Ways to overcome the crisis
Every cloud has a silver lining; crisis has urged the Greek
entrepreneurs to «reinvent» their market position and, by
boosting their national identity, to make their entrance in the
foreign markets that are still fans of the Greek culture and nature.
Consequently, during the last years, Greek exports not only have they
flourished but they have also made a small miracle in 2011 when the
export increase reached 37% while the value of Greek exports over the
same period was estimated at 22.4 billion Euros. This is a historic record,
since Greek exports have never before surpassed 20 billion Euros. In the
forthcoming years, we expect this upward trend to be repeated with
double-digit growth rates in Greek exports.
KALLIMANIS Group of Companies is a Greek corporation with
an unrivalled reputation as a national leader in the Greek
frozen fish and seafood market for more than half a century.
Today, the Group has 200 employees, headquarters and two factories
located in the city of Aegeon in Peloponnese, branches in Athens and
Salonika and annual turnover of 60m euro. Over the last few years, the
Group has realised successful exports in both the retail and HO.RE.CA
channels that are expected to represent 15% of the annual turnover by
2012. The Group has already achieved a strong and holistic presence in
Balkans and SE Europe, Germany, Italy, and Spain and prepares its
entrance to new emerging markets. Regarding exports, KALLIMANIS
Group is investing in long term cooperation with reliable onsite agents
as well as in the branded demand of its export products. Its export
plans include the launching of new products in the existing markets,
enhancement of the export activities and expansion in new markets.
Greece has not yet fully exploited the export opportunities
arising from the single market and SE Europe -an area of
strategic importance to Greece and a main destination for its
exports that has embarked on a dynamic growth path, despite shortterm difficulties. Moreover, Greece has globally a strong national identity,
which, if stressed out by the marketing of their export brands, can
become a significantly competitive asset. In specific, regarding the food
sector there are significant yet unexploited opportunities to promote the
Mediterranean diet in destinations such as Russia, USA and Canada.
Konstantina Kallimani, Executive Director
Greek Export Managers have the unique opportunity to
cross the country’s borders and work in an international
environment; however at the same time they are challenged
to enhance the level of their professionalism and become more
sophisticated for they are automatically considered as spokespersons of
the Greek spirit and consequently any lack of professionalism from their
side will inevitably affect our country’s image in the global markets.
Financing difficulties and overall lack of liquidity due to
economic recession is a significant challenge for the exports.
Furthermore, the export enterprises face additional
disincentives that prevent their smooth financial operation, the severe
bureaucracy being one of them. Currently, the main problem that
directly affects the liquidity of the exporting firms is the complex
procedures for VAT exemption and the delays of the repayment of the
VAT return. Moreover, the delay and inflexibility of customs procedures
is an equally important factor for the decrease of competitiveness of
the Greek products in the international markets, and, due to this, Greek
products become more expensive and business more unreliable
because of the length and the low reliability of the procedures.
The current Greek export model is irrelevant to modern
requirements. Today, Greece is being asked to develop a new
strategy for its export policy; a strategy which will be aligned
with the new developmental model that is applied in the economy for
the confrontation of the recession. The ultimate goal is to support the
Greek companies, and within this frame Greece must develop new
policy which should be primarily focused on removing administrative
barriers to exports by simplifying legal requirements for export-related
activities as well as by financing their extroversion. However, taking
into consideration the unforeseeable
financial environment in
Greece, Greek
entrepreneurs should be
ready to lead their own
way abroad based mainly
on their own forces.
ExecutiveNewswire 06/12
7
Panhellenic
Exporters Association
Christina G. Sakellaridis
Profile of PSE
The Panhellenic Exporters Association
(PEA) was established in 1945 and
represents the entire body of Greek
Exporters. It is the main export
organisation in Greece, and its members
are enterprises, cooperatives and
organisations engaged in exports
of various export sectors from all
geographical regions of Greece
Members of PΕΑ produce, manufacture
and export a large variety of industrial
and agricultural products to practically
every country in the world.
Contact with interested parties
abroad
PΕΑ’s scope is to promote the interests of
exporting enterprises, to bolster export
activity and to assist all interested parties
abroad in familiarising themselves with
Greek export production and in finding
the products they are looking for and the
people or companies who sell them.
PEA is in a position to inform foreign
importers about export opportunities
for all products exported by Greece
and to provide its services in arranging
meetings between interested enterprises
and Greek exporters. For that reason
it has launched: Τhe Greek product
Importer File Service.
PEA issues:
• Newsletters for the progress and prospects of the Greek
exports
• Alerts, Key Notes and Circulars on export issues
• Researches, Studies, Case Studies for goods and services,
key markets
Furthermore, PEA undertakes
activities such as:
• Networking and clustering businesses and promoting
cooperation
• Special events for the promotion of the Greek exporters
• Seminars, conferences and galas
• Meetings, consultations and round tables of exporting
companies region, by exporting market and by product/
service
• Vocational training activities
• Promotion of goods and services
• Joint participation in Exhibitions, Conferences and
Seminars
• Access and support to UN and EU procurements
out to lunch with
Nancy Mathioudaki, Partner
What are the needed requirements to become
an exporting company (certifications, memberships etc)?
Christina Sakellaridis: Today, it has been
estimated that the export formalities involve
5 different ministries, 28 departments and
organizations, and require almost 30 different
certificates, permits and approvals. This results
according to a research by the Pan-Hellenic
Exporters Association, to an extra charge on
the cost of production of exportable Greek
products of the levels of 15% of their value.
According to the World Bank, in 2009 the export
of a cargo of Greek products required 20 days
and its cost was $ 1,153. The OECD member
states’ averages are accordingly 10 days and
$ 1,032.
The consequence of these distortions is
impaired competitiveness of Greek products
over competing countries, but also overall
deterioration of terms of trade, since the
corresponding distortions involve the import
of raw materials, the refinement and the reexportation of products.
The Panhellenic Exporters Association has
already submitted proposals both to the
Ministry of Development and the Task Force for
Greece, in order to facilitate external trade and
exports.
Gladly, some of these proposals will be
implemented both to e-custom procedures
of ISISnet, starting from April 2nd 2012 and the
Single Window for Exports by 2013.
By then, for an enterprise to export, the first
step will be to enlist in the Chamber Commerce,
to the Exporters Annex. In the Panhellenic
Exporters Association everyone that is
interested to be an exporter should address to
our 24/7 Helpdesk, through our website www.
pse.gr .
What are the top 10 exporting sectors? Have
there been any significant changes / shifts within
the last couple of years?
ChS: Last year was also a period of changes
in the ranking of export goods. Number
one in exports are always the petroleum
goods, but the big protagonist of 2011, was
the aluminium, rising to the second place,
surpassing pharmaceuticals. Fish and rods of
steel-iron complete the TOP 5 and the rest 5
places belong mostly to the agricultural sector
and food. With the exemption of pipes, we find
in the TOP 10 ranking products like vegetables,
apricots & cherries, cheese, cotton, olive oil and
furs.
Generally speaking we could point out as main
exporting sectors, with the exemption of fuels,
foods & drinks, pharmaceuticals and construction materials.
What are the top 10 countries where Greece is
highly accepted for its exporting products?
ChS: In 2011 there have been significant
changes in the TOP 10 export markets for
Greek products. Italy has become the No 1
destination, overtaking Germany for the second
time after 1945 (the first was in 2008) and
Turkey, gaining 3 positions, has risen to the
third place, above Cyprus. In the 5th place we
find the SUPPLY of SHIPS, that in international
trade terms consists of a totally differentiated
market itself, pointing out the significance of
the geographical position of Greece and its
advantages in maritime.
Bulgaria comes 6th, followed by the US, while
UK has dropped 3 places to 8th. The TOP 10 finds
also France (9th place) and Romania (10th), both
losing one place since 2010.
What are the current trends within these turbulent times?
ChS: Since 2009 when Greece experienced a
steep decline of its exports, losing in 12 months
time, all the gains from a 5year rise between
2004 and 2008, there has been a shift towards
a new kind of openness of the economy, a new
kind of what we call extroversion.
The crisis of the Greek economy has resulted
to a significant drop of domestic demand and
consumption. Greek enterprises of all sizes
faced the same dilemma: where and how do
we channel our products. It was the time when
the Panhellenic Exporters Association put
into the Greek Development Agenda the
Topic of Extroversion, as the only and the
fundamental choice for the rebound and
sustainable development.
There was a broad consensus, in a political,
social and entrepreneurial basis, for the
importance of the support of export
enterprises, in terms of transferring knowhow, of boosting cash flows and dealing
with red tape barriers.
As a result of this consensus and the
entrepreneurial reflexes for survival, more
that 2.000 Greek companies tried for the
first time to export their products abroad
in 2010 and 2011. These companies either
were focused in the domestic markets or
are new, start-ups with international market
orientation.
Now we are estimating about 12.000
companies trying to compete in the global
market each year.
What are the opportunities that Greece
might demonstrate (medium term and long
term)?
ChS: Greece has some great advantages: its
position between West and East, its role in
the Med Basin, the climate and the people.
These are all factors of successful international trade. Greece can trade with the
world its renowned foodstuff and traditional
products, such as olive oil, feta cheese, fish,
fruits & vegetables. Its soil is rich in raw
materials, such as aluminium. And it has also
proven that it is competitive in fields of high
tech, innovation and know-how. Renewable
energy resources, pharmaceuticals, software
applications and constructions expertise are
some good examples of big Greek achievements worldwide.
We should never forget that 62% of Greek
products are exported in developed countries in the EU, almost 70% in the OECD
member states. These are markets that select
their imports in a firm cost-value analogy.
What about the challenges?
ChS: A survey of the Panhellenic Exporters
Association between Greek Exporters
pointed out 3 main challenges for export
enterprises:
1. Red tape barriers
2. Cash flows
3. Transfer of Know-How.
The red tape cost is estimated to 15% of the
Greek products value, making them more
expensive and less competitive in the global
market. The elimination of these trade
barriers should be a top priority of every
Greek government. Hopefully soon we will
see some results.
Cash flow, on the other hand is the main
issue. Heavy taxation, delayed VAT refunds,
coupled by the problems of Greek private
banking system consists a kind of a time
bomb threatening the exports growth.
The NSRF (National Strategic Reference
Framework) 2007–2013, or ESPA can provide
useful tools in that direction. Programs
like “Extroversion & Competitiveness”
and “Extroversion ECIO” are some good
examples of funding export activities. The
European Investment Bank Programs will
also be a great relief for export enterprises
for the months to come.
Last but not least, effective ways to transfer
know-how especially to SMEs will also be an
indirect boost of extroversion with longterm benefits for the Greek Economy. In this
context, the PEA will put in to effect a big
nationwide program of vocational training
by the second semester of 2012.
Are you optimistic about our future in Greece
given this unprecedented crisis?
ChS: The French philosopher Emil Chartier
used to say that “optimism is a matter of will”.
We, the people of trade, are optimists by
nature and by trade. Furthermore the data
of the Greek exports show a dynamic that
cannot be overlooked. Products of technology, know-how and expertise are steadily
gaining shares in the world trade since 1988.
Greek foodstuff is strongly identified as part
of the Med diet. Greek exporters have come
a long way in terms of branding, packaging
and promoting their products.
Of course there is a lot more to be done.
Some should have been done years ago.
But as the Chinese say “the best time to
plant a tree was 20 years ago. The second
best is now”.
The only thing I would like to emphasize
is that today exports are not a risk, they
are a wise entrepreneurial option and
choice. They are the answer to the crisis
and the means to recovery. In the time
of information and IT, we possess the
necessary tools to find the right partners, to
secure our payments and to fund our export
businesses.
We at the Panhellenic Exporters Association
will stand side by side to each and everyone
that wants to expand abroad, regardless of
company size, sector and experience.
Christina G. Sakellaridis
Born in Athens (Plaka)
Studied Law at the Athens University and at the FACULTE DE DROIΤ
of Paris
She speaks French and English fluently
She is married with George Sakellaridis-businessman
FINANCIAL SECTOR ACHIEVEMENTS
Chairperson of Board of MARGIN GLOBAL ASSET MANAGEMENT
MFMC [2011-present]
President and CEO of INTERINVEST (One of first Investment
Companies in the Athens Stock Exchange) [1991- 2010]
Former Member of General Board of the Bank of Greece [1994-2004]
Co-Founder and Vice President of FACT HELLAS SA (1st Factoring
Enterprise in Greece) [1995-1997]
Co-Founder and CEO of ELLINIKES EUROPAIKES EPENDYSEIS
(Investments and Tourism) [1989-1992]
INTERNATIONAL TRADE ACHIEVEMENTS
President of Ch.G.S, Strategic Export Management & Business
Development Consultants [1966- to date]
Co-Founder and Vice President of INTRADE (Trading Company)
[1997-1999]
Exclusive representative of MARKS & SPENCER and JAEGER OF
LONDON for Greece [1977-1986]
INSTITUTIONAL ACHIEVEMENTS
President of the Panhellenic Exporters Association (1992-to date)
President of the Export Credit Insurance Organization-ECIO (1994to date)
Former President, Now Vice President of the Hellenic Foreign Trade
Board-HEPO (2010- to date)
Member of the EURO 50 Group
Member of the Greek National Exports Council
Former Vice President (1987-1994) and Now Member of the
Athens Chamber of Commerce and Industry (1994- to date)
Former Vice President of the International Chamber of CommerceICC (1983-1994)
Former Member of Board of the Greek-Arab Chamber of Commerce
and Development (1994-2004)
DISTINCTIONS:
“Les insignes de Chevalier de l΄Ordre national du Merite”, by Decree
of the President of the Republic of France, Nicolas Sarkozy (2009)
“The International Chamber of Commerce Award”, for her services
as Vice President of the ICC, 1983-2004
“The Europe 2003 Award”, established by the President of the
Republic of France, Jacques Chirac and the European Counsil (2003)
“Self Made Entrepreneur Award for 2002”, of the Athens Chamber
of Commerce and Industry
“Woman of Europe Award”, by the Greek Committee (1994)
“Le Diplome d’ Honneur de l’ Ordre Europeen”, (Brussels 1998)
West Attica Rotary Club (1995)
Athens – North Rotary Club (1993)
ExecutiveNewswire 06/12
9
A global
success
story
Interview to Nancy Mathioudaki, Partner
Folli Follie Shanghai Flagship Store
Group has grown over the last 30
years from an innovative, groundbreaking jewellery brand into a
global power in the fashion scene. The Folli Follie Group, apart
from the brand Folli Follie, comprises of Links of London, the
successful and awarded British Jeweler and Official Jeweler of
the London 2012 Olympic Games, a strong wholesale/ retail
sector, the travel retail sector and a fairly new Cosmetics and
Perfume sector. Operating in 28 countries worldwide, with approximately 700 points of sale and more than 6,000 employees, Folli Follie Group products reach millions of consumers.
challenge with an “external” and an “internal” side to it. In terms
of how a Greek corporation needs to deal with the crisis, the
challenge is to identify the opportunities, adapt and aim for
further growth. In terms of how others view a Greek corporation
within this crisis, the challenge is to reverse the negative climate.
And this is something that we aim to accomplish and prove with
our hard work and positive results and we aspire to accomplish
with the “Crazy for Greece” campaign. The global appeal of
the campaign enhances Folli Follie’s efforts to promote positive
connotations about Greece, especially during a period when it is
more necessary than ever.
It is worth mentioning that the Folli Follie brand has a very
strong presence in 24 countries globally and an established
presence in the travel retail sector and in-flight retail. With more
than 50 points of sale in the travel retail sector, its impressive
progress has been acknowledged by the DFNI magazine in the
2010 product awards, when the brand was awarded with “Best
Watches Campaign at Asian Airlines” and “Best New Jewellery
Store at Hong Kong International Airport”. It is important to
mention the in-flight presence of Folli Follie that started with
Eva Airlines and British Airways has evolved in a collaboration
with more than 40 airlines reaching more than 1,000,000
passengers on a daily basis.
The international “Crazy for Greece” campaign, both print
and digital, will be featured in newspapers and in the biggest
fashion titles worldwide, will run online, will be hosted on
TV shows, and will be featured on billboards in Europe, Asia
and North America. Creative media in the most esteemed
publications globally such as the South China Morning Post that
bears impressive readership, sensational outdoor presence and
groundbreaking digital campaign set the ground for the launch
of a project that brings forward the very spirit of the Folli Follie
brand, linking strongly with its brand heritage.
The Folli Follie Group long term strategic objectives are of course
for the two brands of the Group, namely Folli Follie and Links of
London, to become world brands, to strengthen the product
portfolio of the Group’s retail/wholesale business and to
gain market share especially on the back of the recession in
Greece and the opportunities that come from this environment.
For the travel retail sector we view the expansion of selling
space for all channels, but also expanding opportunities like
e.g. marinas. And of course, our immediate goal is to further
Flagship store in the New York’s SoHo neighbourhood
invest and establish our presence in the strategically important
markets of Greater China, North America and the UK.
The economic crisis that has affected the global scenery and
Greece in particular, should be viewed as an opportunity
rather than a setback, despite the fact that it has a very
powerful impact especially in the fashion industry. Folli Follie
as a brand has always had an excellent brand positioning that
has helped it come through the crisis even stronger. The fact
that Folli Follie is marketed as an affordable brand that at the
same time comes in a luxurious “package” that the Folli Follie
shopping experience and feel-good factor offers, is one of the
many reasons why Folli Follie has so far come intact from this
strenuous global financial condition.
In the context of the recent global financial developments
we have also been asked to answer a big twofold challenge; a
Moreover, through the Folli Follie stores the campaign will be
featured in 480 points of sale in some of the most hi-fashion
streets in 24 countries.
The “Crazy for Greece” campaign was also presented in
Baselworld, the world watch and jewellery show, in Basel,
Switzerland, from 8th to 15th of March, in the context of Folli
Follie Group’s participation to the show. The visitors of the show
welcomed the new campaign with enthusiasm,
making very positive remarks.
The campaign has received very positive comments in China,
Spain, Hong Kong, Taiwan and Korea where the respective press
presentations have already taken place.
We are positive that the whole world and the Folli Follie fans
will embrace the new campaign, when it is officially launched,
allowing it to transfer them at that iconic Greek summer.
In Folli Follie we have always promoted the extroversion
of Greek corporations, acknowledging their dynamics and
appealing to the “Ulysses spirit” that is imprinted in the DNA
of every Greek. Greeks, if any, know how to
set a goal and stay loyal to it, overcome
any difficulties that may come across
the way, learn from their mistakes, turn
obstacles into opportunities, ultimately
succeed and do so “enjoying” every bit
of the “journey”. Greece is already a global
power in industries, such as shipping,
and we should not underestimate
the possibility of seeing Greece as an
emerging power in sectors, such
as fashion, where Greek
corporations and
individual designers
demonstrate
impressive
initiatives with
global appeal.
George Koutsolioutsos,
CEO Folli Follie Group
ExecutiveNewswire 06/12
11
Interview to
Nancy Mathioudaki, Partner
What’s your opinion about Greek exports and
Greek companies’ extroversion?
Pavlos Katsivelis: Greek export performance
cannot be characterized as impressive when only
a small number of the Greek companies report
sales from export activity. This picture reflects the
limited competitiveness of Greek products, and
their inadequate differentiation and penetration
into foreign markets. Furthermore, we should not
undermine the psychological factors – absence
of confidence - that holds back most Greek
companies.
Being a small economy located at the periphery
of the EU, we have benefited greatly from
the opening up of South-Eastern European
economies in the early ‘90s and the related
increase in trade links with this region. The
redirection of Greek exports towards these
markets was reinforced by the high growth of
these economies, the “first mover” advantage,
and the “privileged” position due to its
geographical proximity.
Could you share with us some information about
Chipita’s international activity?
PK: Chipita has laid the foundations for creating
an innovative company with a strong international footprint. We consider ourselves as a «born
global» firm since during the last 20 years we
have managed to grow rapidly mainly through
global expansion. Today we have manufacturing operations in ten countries with facilities in
the United States, Europe, and Middle East and
sales throughout the world with Greece currently
representing less than 15% of Group’s sales.
For Chipita it was critical to grow big enough and
strong enough in its home market—in Greece before expanding abroad. Building a strong domestic base before venturing into overseas markets
provided us with the level of strategic thinking
needed to manage an international organization
as well as managers with the necessary breadth
and depth of experience.
Our international expansion over the recent
years has been fueled by joint ventures with local
companies. Choosing partners that can make tangible business contributions, aligning strategic
priorities, safeguarding intellectual property and
ensuring operational control are critical for joint
ventures success.
What’s the key lesson you’ve learned about how a
company builds a global competitive advantage?
PK: Everybody is talking about going global, but
hardly anyone understands what that means.
I strongly believe that the only way to gain
lasting competitive advantage is to leverage
your capabilities around the world so that the
company as a whole is greater than the sum of its
parts. Being an international company—selling
globally, having global brands or operations in
different countries—isn’t enough.
In fact, most international manufacturers
aren’t truly global. They may have acquired or
established businesses all over the world, but
their regional or national divisions still operate as
autonomous entities.
To us, competitive advantage means having
the best technologies and processes for
designing, manufacturing, selling, and servicing
your products at the lowest possible costs.
Our objective at Chipita is to integrate our
geographical businesses wherever possible, so
that our most advanced expertise in any given
area—whether it’s bakery technology, financial
reporting systems, or distribution strategy—isn’t
confined to one location or one division. We
want to be able to take the best capabilities we
have and leverage them in all of our operations
worldwide.
What is Chipita’s future plan regarding international expansion?
PK: In Chipita our strategic choices are based
on the following principles: Growth in existing
markets and expansion into new markets on a
global scale; rapid and widespread geographic
distribution; emphasis on close, long-term
business collaboration; and constant reappraisal
and improvement of distribution methods in
tune to changes in the market.
Talking about international expansion, company’s
growth strategy is based on brand development,
innovation and emerging markets penetration.
Our success is very much based on inventing,
consumers’‘lovemarks’, such as 7DAYS, that
become the source of competitive advantage.
This year we started commercial activity in
Nigeria, one of the fastest growing economies
in the world, a market with an extraordinary
demographic profile that is ideal for our products.
In parallel, we are working hard to be able to enter
Turkish market – the 5th BRIC - within 2013.
What are the challenges companies are facing
in the area of Human Resources when talking
about going global?
Pavlos Katsivelis
Regional Managing Director
South & East Europe – Nigeria,
Turkey and Joint Ventures
PK: The development of new businesses requires
companies to transfer their skills, and expatriates
continue to be the most effective means to that
end. Especially in emerging markets, where
establishing relationships, adapting to local
cultures, and transferring skills and technologies
all take a lot longer than they do in developed
ones, the need for expatriates is particularly
pressing, even when a joint venture is the chosen
entry vehicle.
So, one of the main difficulties for us has been
and remains human resources. It’s been quite
difficult orienting our people to work internationally. We need our best people abroad, people
who are good with people and who can translate
into the local market Chipita values.
Based on our expansion model, we rely on
relatively few expatriate employees. What we try
to do is have an operating platform that provides
the systems and key processes to run the
business. Through this way we get direction in
terms of how we go about doing things and how
we manage people.
How did current economic crisis affect exporting activity and what could companies do to
overcome it?
PK: As I have already mentioned, until the beginning of the crisis, Greece was a relatively closed
economy. However, the economic crisis has led to
an internal market shrinkage and consumption
reduction. This spells bankruptcy for the majority
of Greek firms if they do not go international.
Consequently, over the last two years, the export
activity was remarkable despite dire economic
conditions reflecting the growing tendency
of domestic enterprises to look beyond the
country’s borders in an effort to offset the drop in
demand in Greece.
A major barrier to international expansion as a
result of economic crisis, is the lack of liquidity.
Even the healthiest companies have seen the bank
credit lines either closed or at predatory rates. Another major challenge is the Greek image. Greek
exporters are making huge efforts, to convince
potential foreign buyers not only of the quality of
their products, but also for their credibility.
More importantly, Greek companies’ immediate
challenge is to break out of the mind-set that
we couldn’t compete successfully on the global
stage. Once freed of that burden, we have to
find and implement strategies in which being a
late mover is a source of competitive advantage
rather than a disadvantage.
Exports and Extraversion
of the Greek Businesses
By Nelly Katsou, Vice President & Managing Director
to Virginia Argyratou, Principal Consultant
Greece historically has been a country were trade and exports
played a vital role to the development of the society and the Greek
civilization in general.
India, which give us the advantage to be the only vertically integrated
company, from the API (Active Pharmaceutical Ingredient) to the finished
product, in Greece and one of the few in Europe.
Unfortunately, over the last decades, we forgot our heritage and instead,
we became more introvert due to several factors that had to do with the
political and social evolution of the Greek society and state. So very
often, business and industrial profitable activities were “demonized” and
in many occasions had been even sabotaged for the benefit of state-run
companies. We never had in place a coherent national exporting
strategy, a plan of methods or incentives, or any support of any kind to
that direction. As a result many Greek businesses developed a “Homesweet-home mentality” preferring the comfort and safety of the local
market, instead of taking the risk of international expansion. With this
lack of exporting culture, even the businesses that wanted to have an
international expansion lacked both the recourses and the track record to
attract professionals with international business knowledge and mentality.
Furthermore, Greek businesses, operating solely in the local market, were
more often unable or unwilling to commit valuable financial resources to
research and innovation, which could give them the necessary advantage
in the international markets.
Over the last years the company also had to face and respond to the effects
of the global and in particular the Greek economic crisis. Pharmathen
nevertheless achieved an increase in both its domestic and international
presence, and despite the crisis the company has grown by 22% since
2009 and in 2012 we also anticipate 27% organic growth. The fact
that our exposure to the Greek market was well balanced even before the
financial crisis, allowed us to take all the necessary strategic actions in
order not only to secure, but also to reinforce significantly our position in
the local and international markets. New products were added to our
pipeline, new strategic alliances with large pharmaceutical firms
were pursed, new geographies were added to our international
presence and by streamlining further our existing operations we managed
to provide immediate results for the company. During 2011 alone, more
than 1000 marketing authorizations were acquired, more than 10 new
generic products were developed, over 20 new patent applications were
submitted and 2 projects regarding innovative products were completed.
All the above have resulted in continuous growth in all levels and for 2012
we target revenues at around €175 million, while at the same time we have
secured a very strong cash flow position.
For us in Pharmathen those were the elements in mentality but also
operationally, that we needed to overcome in order to pursue a course of
international expansion. In the mid 1990s it became apparent to us that
due to the size of the local market and due to the framework of the Greek
pharmaceutical market, the international expansion was the only viable way for sustainable growth. The three most important factors
that have contributed to the overall success of Pharmathen, are in
the core of our philosophy for global expansion, the philosophy of
the three I’s: Innovation – Integration – International expansion.
Coming from Greece, an EU country, we knew that we would not be able
to compete in the international market in terms of price. The solution
was to try to provide the international market with added-value
products, which possessed some kind of differentiation and could be
competitive. We invested heavily therefore in our R&D activities
and simultaneously we worked into penetrating important and
targeted markets like the EU and North America. R&D therefore was
the first and most important step towards international penetration and
sustainable growth. The increased international presence of the company,
especially over the last decade, has resulted today in that more than
75% of Pharmathen’s sales turnover is generated from its exporting
activities in more than 85 countries worldwide. This had a great
impact on the organization and its operations, as Pharmathen had to deal
with ever increasing manufacturing and logistics needs. Indicatively,
Pharmathen exported more than 16 million finished packs (tablets,
capsules and injectables) in 2009, while in 2011 the exports surpassed 30
million finished packs. This rapid international expansion also led to
the construction of our new state of the art manufacturing plant
which was inaugurated in 2010 in Sapes, Northern Greece, and the
establishment of three R&D centres in Athens, Thessaloniki and
Furthermore, through this growth Pharmathen has been able to employ
a more diversified and skilled workforce to keep us moving forward
innovatively. Over the last 2 years we successfully integrated more
than 150 new employees into the structure and philosophy of
the company. Specific to our growth strategy, key persons with vital
market knowledge and experience have been employed and they are able
to feed back this market knowledge in order to maximise our potential
in each and every market – on a global scale. This increased global
expansion therefore, which was already monitored through our Business
Development headquarters in the UK, was also further facilitated with
the recent establishment of new offices in key regions. In particular,
over the last 3 years, Pharmathen has established regional offices
in Jordan in order to penetrate more effectively into MENA region,
established permanent representation in South America and
recently established regional offices in China (Shanghai) aiming to
further expand and reinforce its presence in the very promising APAC and
Far East markets.
Overall, the aggressive strategy we adopted in order to deal with the
Greek financial crisis has also significantly strengthened our position
in relation to our competitors, particularly in Greece, but also in the
international markets. The success of our strategy, especially over the
last years was repeatedly recognized publicly through several awards
and distinctions (True Leaders Greece 2011, Best Workplaces 2012,
Diamonds of the Greek Economy 2011, EBA Ruban d’Honneur Import/
Export Award 2011 etc), for our performance in the international markets
and the creation of an exceptional working environment.
ExecutiveNewswire 06/12
13
Nikolaos Mariou interview to Nicholas Vasilikiotis, Partner
Please describe us a little about your company’s activities, basic fiscal
data, and participation of export activity in the overall company
operation.
and North Africa as our main markets and our sales expand to more than
40 countries worldwide. It is noteworthy that we export not only in the
region but also in demanding markets like Germany, UK, Singapore etc.
Νikolaos Mariou: SIDENOR Group represents VIOHALCO’s steel
production, processing and trading arm and is currently the largest
producer of long steel products in Greece and Southeast Europe.
Also, we are proud to say that Sidenor and its affiliated company AWM of Italy
sell innovative patent-protected technology and machinery internationally.
SIDENOR’s dynamic corporate history dates back to 1962 with the
establishment of VIOHALCO-SANITAS, which has been the foundation for
creating a vertically integrated Group of companies with 20 subsidiaries
and associated companies in Greece, 16 abroad and production plants in
Greece, Bulgaria, Russia and F.Y.R.O.M.
SIDENOR Group’s activities are fully vertical, aiming for optimal
operational efficiency and they are distinguished in the following sectors:
Mini-mills, Pipes, Tubes and Hollow Sections, Downstream operations,
Sales and Distribution.
The products cover even the most demanding needs of SIDENOR
customers in Greece and abroad and stand out for their excellent quality,
high reliability and particularly innovative features.
Given the technological advantage on a production level and the
extensive sales network within and outside of Greece, SIDENOR
group maintains its leading position by investing in state-of-the-art
technological equipment and by offering a completely customerorientated approach to its activities.
The Group’s established production base includes plants in Thessaloniki,
Almyros in Magnesia, Kilklis, Thisvi, Pernik in Bulgaria, Nikolic in F.Y.R.O.M.
and Polevskoy in Russia. These production plants encompass all stages
of production, processing, sales and distribution of an extensive range of
steel products giving SIDENOR and its subsidiaries the opportunity to produce high quality products, that cover any relevant need of its customers.
When did you begin expanding abroad and what is your company’s
current export status? What are your countries of main focus?
NM: In order to maintain the competitive advantage on the production
level and market presence, SIDENOR group remains focused on
continuously upgrading and expanding its plants and its distribution
network. A proof of this commitment is the implementation of an
extensive long-term investment program, which exceeded EUR 730
million between 1998 and 2011.
Today SIDENOR Group is oriented as an export company with 20% of
the local Greek market and 80% abroad. We consider Balkans, Europe
Νikolaos Mariou,
Strategic Business Planning Director and Commercial Director
Mr. Mariou, is a Chemist, graduate of Athens University and holds a
postgraduate degree (M.eng.) in Biochemical Engineering from University
College London, as well as an MBA from Imperial College London.
His previous experience was as Area Sales Manager
at VIORYL SA, as Category Marketing Manager
at COLGATE PALMOLIVE HELLAS, as Marketing &
Exports Manager at P.D. PAPOUTSANIS SA and
as Deputy General Manager at APIVITA SA. Mr.
Mariou joined Sidenor in 2004 as Commercial
Manager and since 2007 is Strategic Business
Planning and Commercial Director of the Group.
This is clearly exemplified by the development of the new Synthesis™
technology for the industrial prefabrication of reinforcement.
Synthesis™ machines have already been a major success since their
introduction in the Greek market 2 and-a-half years ago by SIDENOR,
leading the reinforcing industry to a point where currently more than
80% of all constructed stirrups are being made in Synthesis™ machines.
By perfecting the manufacturing process with a fully integrated single
production line, mass production of highly fragmented prefabricated
reinforcement of any complexity is now achieved at very low cost.
Since the official launching of the Synthesis™ machines, some months
ago, sales have already been accomplished to very important and
respected customers worldwide – NATSTEEL and BRC of Singapore.
Do you believe that exports have helped you survive and develop in the
middle of the global economic and local crisis and in what way?
NM: Sidenor has been expanding abroad since its establishment. Our
export oriented policy was further enforced after the crisis (2009) and
the significant decrease of the Greek steel market. Our established sales
network combined with our top quality product range were our key
competitive advantages that supported our significant increase in export
sales and helped us recover the decreasing volumes of the local market.
Which are the main obstacles and barriers for your further international
expansion? How could the Greek State facilitate your company in
achieving your exports activities targets?
NM: Today the main obstacle is the deep economic crisis in Europe which
affects the demand for the steel products, not only in the European
countries, but also in other areas of the world. As the demand is low,
there is overcapacity and overproduction in the area and this leads to
intense competition and therefore limits our export sales potential.
We should also have in mind that transportation expenses is a key factor
to steel exports, as steel is mainly commodity product at relatively low
price vs other more expensive metals.
Within this context, the Greek state although declares with pride that
our exports are increasing, not only is not helping this dynamic industrial
sector, but on the contrary increases the energy costs, (tax on natural gas,
high electricity cost), ports are expensive and inefficient, there is lack of
sufficient state credit insurance for exports, currently the banking system
lacks liquidity etc.
Moreover business diplomacy and expansion plans to new developing
markets should take the lead.
For example, Libya will be in the near future an interesting market
in our neighborhood. A lot of industry segments (construction
materials, construction companies, food etc.) could benefit from this
development. The Greek business diplomacy should be active to promote
collaborations. Turkey is a good model for such activities.
However, SIDENOR having invested for years in modern production
facilities, sales networks and international business relations is able
to compete among the strong Turkish, Italian, Spanish and other
competitors in the region.
Discussion with
Vana Mehleri, Consultant
The Largest Privately-Owned
Aluminium Extrusion Group in
South-East Europe
Alumil S.A. is the largest privately-owned
aluminium extrusion group in South-East
Europe (2000 employees), in terms of
production, distribution network and range
of aluminium profile systems. It is among the
top suppliers of branded aluminium systems
for architectural use in Europe. With more
than 30 years of experience, Alumil is one
of the most advanced companies globally
in the design and production of aluminium
extrusion products (100.000 tons) with state –
of – the art production lines in its 20 factories
(14 in Greece, 1 in Albania, 1 in Serbia and
1 in Bosnia and Herzegovina, 1 Romania,
1 Egypt, 1 Bulgaria). Alumil produces
aluminium systems which are designed
and developed in the Group’s Research &
Development Department and then tested
and certified by internationally accredited
certification institutes and laboratories, such
as Ift Rosenheim (Germany), A.A.M.A (USA),
Instituto Jordano (Italy), etc.
It has an extensive international sales network
in 42 countries worldwide and 27 subsidiaries
companies in Europe, Africa, Middle East,
Russia and the United States of America.
Alumil International
Alumil International is Alumil’s business unit
which promotes its worldwide advanced
architectural aluminium systems. Almost 50
experienced engineers support large construction projects all over the world and we are a
member in European Aluminium Association.
Market Overview today –
The impact of the economic
crisis in Aluminium extrusion
companies
The construction activity in Greece has
been experiencing a constant decline as a
direct effect of the harsh economic crisis.
Inevitably, Aluminium extrusion companies as
many other related industries, suffered from
negative growth.
The following indicators vividly depict the
industry’s negative growth: in 2011 the
construction activity in Greece reached the
extremely low level of 23.14 million m2 when
in 2005 it was 102.24 million m2 and 59.41
million m2 in 1999, without any emerging
recovery evidence.
However, Alumil is a global company and
its focus is international. In 2011 we had
an increase 4% in sales due to focusing in
markets such as West Europe, Russia, North
Africa, Turkey and Middle East.
Development Barriers
The upturn in the industry is not possible
in an economic environment such as that
prevailed in the country during the period
September 2011 - February 2012, where the
actions and policies of the principles that
determine the economic development in the
country, resulted in an extremely low level
of consumer and business confidence. Real
estate investment decreased -23% in 2011
and is expected to further decline in 2012 at a
rate of -15%.
The significant decline in real estate
investment has contributed to a GDP by
about 0.95 percentage points in 2011,
compared to negative effects by -1
percentage point in 2010, by -1.4 percentage
points in 2009 and -2.3 percentage in 2008.
Additionally, banks –compared to the past treat all new loan applications submitted for
real estate investment with an increasing rigor,
resulting in an increased rejection rate that
further impede the already stagnant market.
Finally, and due to the unstable political
situation, Greece’s image is described as
“uncertain” affecting thereby any outwardlooking attempt of Greek exporting
companies, left alone in managing all the
consequences of the almost non-reversed
situation.
Lambros Yannouchos,
Commercial Corporate Director
Mastering leadership since many years,
Alumil plays a significant role in the domestic
industry attempting to reverse the negative
climate and the aggregate demand. The
company keeps investing in innovation and
in new promising areas such as renewable
energy, bioclimatic architectural design
and safety. In all these growing parts of the
market, Alumil is the leader not only in Greece
but in S. E. Europe.
Lately, Alumil has developed a series of
specialized aluminium support systems for
photovoltaic structures (fields, roof etc). The
company already holds a leading position
amongst other competitors since all the
largest photovoltaic parks were made with
Alumil’s Helios support system.
Challenges for executives
engaged in international
activities
Future challenges /
opportunities for growth
Alumil Group can be easily characterized as
an outward-looking company since nearly
80% of its business activity derives from
foreign countries.
Taking into consideration Greece’s market
conditions Alumil intensifies its exporting
efforts as these remain a strong growth
development factor since the early days of
the economic crisis. The company’s strategic
planning emphasises in strengthening its
market shares in Russia and Southeastern
Europe, along with continuous development
of its commercial network in Western Europe.
A short notice for the Greek Market: ALUMIL is
always looking after the Greek market despite
its orientation to the international markets.
In the era of market globalization and
internationalization of economic activities,
all companies - regardless of size, sector,
origin, composition of capital or institutional
and administrative structure face problems
associated particularly with the organization
and optimizing of their international activity.
Nevertheless, Alumil as a leading, innovative
and intercultural character group with
corporate culture characterized by teamwork
and collective effort encourages initiative,
freedom and participation in decision
making, constantly offering new challenges
for managers who want to advance
professionally and deal with international
activities.
ExecutiveNewswire 06/12
15
Innovation made in Greece
Presentation to Nicholas Vasilikiotis, Partner & Stavros Daniel, Consultant
What is Corallia? How it was created? By whom?
What types of companies are your “partners”?
What is the vision for such an initiative?
Vassilios Makios: The Corallia Clusters Initiative
-or in short Corallia- is the first organisation
established in Greece for the structured and
systematic management and development
of clusters, with the strategic aim to develop
cohesive and productive innovative ecosystems
within which actors operate in a coordinated
manner, in specific sectors and regions of the
country and where a competitive advantage and
export orientation exists.
In those clusters, Corallia acts as Cluster
Facilitator (cluster initiative/organisation)
implementing specific support actions, which
involve all innovation ecosystem actors,
including industry, academia, research labs,
venture capitals, business angels, regional and
central governmental stakeholders and creates
favourable conditions for growth, exploitation
and promotion of innovations developed within
clusters at both national and international level.
With a vision to amalgamate the brand name
Innovation Made in Greece, Corallia primarily
focuses on the development of innovation
clusters, which have the potential to compete
in international markets and assist the country
towards gaining global market share in value
added services and products.
From its establishment up to date, Corallia has
supported the development of highly-specialised
clusters in knowledge-intensive thematic sectors
with a strong exports-orientation, possessing
examples of success stories, such as the the
mi-Cluster (microelectronics), si-Cluster (space
technologies & applications) and the gi-Cluster
(gaming and creative content).
Founders of Corallia are Prof. Vassilios Makios,
Dr. Jorge Sanchez and Dr. Nikolaos Vogiatzis .
How do companies benefit from their
participation in this initiative?
VM: Corallia acts as a catalyst creating favourable
conditions for clusters to expand and make effec-
tive use of and promote Hellenic innovation at
both national and international level. It portrays
the mutual vision of all innovation ecosystem
actors, undertaking systematic actions to support
the: acquisition of third party funding (R&D and
non R&D projects, VCs, BAs, Banks), operation of a
one- stop-shop (consulting, mentoring, coaching
-mainly- for founders), organisation of networking
events (networking days, user days, open days,
webinars), internationalisation events (trade fairs,
exhibitions, roadshows), manage the web presence (social networks, knowledge base, virtual
exhibition area), operate incubation areas (office
space and amenities, data centres), business areas
(meeting rooms and amenities, printing services),
exhibition areas (physical and virtual booths) and
conferencing facilities, match job needs (career
days, career matchmaker platform), implement a
PR office (newsletter, news-stream, news-watch,
branding) and organise training events (business
acceleration programme, patenting, etc).
Do you collaborate with other countries for
similar programs and if yes are there any Greek
companies participating in those efforts?
VM: Corallia has been working continuously
towards raising the level of cluster excellence and
management and in transferring its operating
model within Europe via its participation in the
European Cluster Alliance and its involvement
both in the European Cluster Observatory (in
its Advisory Board), and the INNO-Net TACTICS
project (in its Reflection Group). To achieve
transnational and interregional cooperation,
Corallia participates in EU Programs: LEAD-ERA,
POOLING4CLUSTERS, SEENECO, ClusterPoliSEE
targeting the formation of a common policy
framework for the collaboration of cluster
members in Europe.
Corallia has also initiated collaborations and
international business relationships on a bilateral
basis with other clusters and cluster initiatives,
incubators, business parks, regional and national
offices related to cluster policies, for example,
through the signing of an MoU with the Sophia-
Vassilios Makios is a Professor Emeritus at
the Dept. of Electrical and Computer Engineering of
the University of Patras, Greece and at the Dept of
Electronics of the Carleton University in Ottawa, Canada,
has been involved in numerous scientific projects, has
a lengthy publication record and was influential in the
establishment of prototype development companies
in the telecommunication industry in Greece and abroad.
Antipolis Foundation and the Hungarian Pole
Programme Office.
Given the turbulent times in which young Greeks
live, should they stay here or should they move
abroad to pursue a career?
VM: It is undisputable that innovation can offer
solutions to critical problems facing society today.
Our country’s future is clearly in the hands of the
young generation, and it is for that reason that
Greece can’t afford to lose more of its brain power
and talent. We are strong supporters of young
people and believe that Greeks are flexible and
creative, with an innate talent in sciences.
With our work at Corallia, we aim at providing
young generations with a vision and inspire them
to join us in our efforts to establish “Innovation
Made in Greece”. Our continuous efforts for the
creation of favourable business conditions, where
different actors interact, share experiences and
work towards meeting common goals, may be
proven to be useful for the rising generation of
Greek young entrepreneurs.
Acknowledgments
Corallia Clusters Initiative is hosted at the Research Center
«Athena», under the auspices of the General Secretariat for
Research and Technology of the Hellenic Ministry of Education,
Lifelong Learning and Religious Affairs and the Ministry of Economy,
Competitiveness and Navigation.
Corallia’s activities are supported and co-financed by the European
Regional Development Fund (ERDF) and National funds under the
National Strategic Reference Framework (NSRF), the private sector,
the Operational Programme Competitiveness and Entrepreneurship,
the Regional Operational Programmes for 2007-2013, the Public Investments Programme, the 7th Framework Programme for Research
and Technological Development of the European Union, the Interregional Cooperation Programme INTERREG IVC, the Competitiveness
and Innovation Framework Programme of the European Union, and
donations from private organisations and benefactors.
Jorge-A. Sanchez-P holds Dipl.-Ing. & Dr.-Ing.
degrees in Electrical and Computer Engineering. He is
co-founder and the Director of Strategy and Cluster
Development at Corallia Clusters Initiative. Prior to
Corallia, he had participated in numerous research
and development projects and directed teams in the
Academia, Research labs, Industry and Governmental
organizations in the EU and the US.
Nikos Vogiatzis holds a Ph.D. in
Communication Electronics & Information Systems,
a Masters certificate in Professional Project
Management, and a Diploma in Electrical and
Computer Engineering. He has accumulated
international experience in managing high-risk R&D
projects and has been instrumental in forming alliances
among industrial and research partners across Europe.
AMSTERDAM • ATHENS • ATLANTA • AUCKLAND • AUSTIN • BALTIMORE/WASHINGTON • BANGALORE • BEIJING • BELGRADE • BOGOTÁ • BRUSSELS • BUCHAREST • BUDAPEST • BUENOS AIRES • CALGARY • CARACAS • CHENNAI
CHICAGO • COPENHAGEN • CURITIBA • DALLAS • DELHI • DOHA • DUBAI • DÜSSELDORF • FRANKFURT • GUANGZHOU • HAMBURG • HELSINKI • HONG KONG • HYDERABAD • ISTANBUL • JOHANNESBURG • LAGOS • NEW YORK
LIMA • LISBON • LJUBLJANA • LONDON • LOS ANGELES • LYON • MADRID • MEDELLIN • MEXICO CITY • MIAMI • MILAN • MONTEVIDEO • MONTRÉAL • MOSCOW • MUMBAI • MUMBAI FS • NASHVILLE
STOCKHOLM • OSLO • PANAMA CITY • PARIS • PRAGUE • PUNE • RIO DE JANEIRO • SAN FRANCISCO • SANTIAGO • SÃO PAULO • SHANGHAI
SOFIA • STUTTGART • SYDNEY • TOKYO • TORONTO • VIENNA • WARSAW • ZURICH
Regional Newsletter for Southeast Europe and Middle East