Household items made in Argentina are going through a very good moment. Product lines are extended, there is import substitution and sales multiply. Winco is one of the companies that best reflects this situation. The brand was very popular for its jukebox in the 60s and 70s, until it went bankrupt in the 80s. But it returned in 2003 when it was bought by two businessmen. From that moment on, it began to grow and multiply its offering into areas such as cooking, cleaning and personal care (it has 150 items). In 2020, with the pandemic, household needs multiplied and Winco managed to add many sales and new products. In addition, the situation strengthened the online marketing channel, which today represents more than 50 percent of its total sales.

To talk about this thriving Argentine industrial sector, Hernán Zaleski (General Manager of Winco) was interviewed in a new MicroEconómico Podcast episode. Below is a fragment of the exchange.

“In 2020 we sold 45 percent more than in 2019”

How did Winco do in 2020 and 2021 and what outlook do you have going forward?

Last year began with a lot of uncertainty and concern about the advance of the pandemic. But when we were able to return to work, according to the new regulations, we quickly understood that people, being at home for a long time, were going to have to equip themselves better. And in many areas in which we can contribute, such as cooking, cleaning, personal care or audio. And we had a lot of demand, because help of all kinds was sought. We even lacked merchandise, but there is never a demand.

To what extent did sales increase in 2020 and 2021?

In terms of units, in 2020 we sold 45 percent more than in 2019. And in 2021 we expect to close 15 percent above 2020.

“50 percent of what we sell is national industry”

What changes were generated in this scenario of higher sales?

We had to give greater development to the national industry; and today we manufacture 500 thousand units per year with a maximum production capacity. Of what we sell, 50 percent is national industry. That forced us to professionalize the different areas more. And we add the development of more and more products, which we previously imported.

What determined the increase in production in Argentina? Did it have to do with the rise of the dollar or other regulations?

A little bit of everything. As in any business, the different variables are evaluated, and the most profitable is chosen. What we do with national production, we do it because it yields more to us than if we imported it. There are incentives for the national industry and also prohibitions on importing finished products due to dumping policies. That's why there are products that we used to import and that we manufacture here today. We have the most complete line on the market; and our products are of increasingly better quality at a very good price. People value and appreciate that.

“Last year we quadrupled sales in online channels”

How has the pandemic changed shopping habits? How much did the online channel grow?

Precisely the household appliances category is one of the most adaptable for online sales. The same does not happen with others such as textiles. The photo allows you to see the design and analyze the price. Last year we quadrupled sales in online channels, greatly favored by the context. Before there was a problem with logistics, and today it is very well developed. If it is easier to buy, there is more consumption. It's like that. Today more than half of our sales are through online channels.

Zaleski highlighted in the exchange that Winco is a family-run SME, and that large multinational companies are the biggest competition: "we try to compete with ingenuity. We develop technologies, we seek innovation and we want to adapt to demand. For example, last year we saw that people spent a lot of time watching movies and series at home; and we thought that a pochoclera would be very useful. And we launched it to accompany the user's needs," he noted.

When asked about the possibility of exporting products, the interviewee stated that at this moment they do not have export items, but that it is a possible project to come: "approximately eight years ago we developed a 100 percent national heating panel, and we did all the necessary procedures to start exporting it," he concluded.

By Sebastián Di Domenica / HiperEconómico