Exclusive interview: Martín Castro Director for the southern region at Whirlpool Latin America

"We want our exports to exceed imports"

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With the regional director of Whirlpool we analyze the market, the evolution of the white line products and the projections of the new Pilar production plant, from which they have already started exporting frontal cargo washes to Brazil.

How did you see the market and the white line sector, for 2022 and what goes this year?
In general, it is a market that is showing a very accelerated growth rate. From the last year and what goes from this to August, it is almost twenty months and the last nineteen the white line showed growth in units against the same month of the previous year. It is a market that in volume is strongly traction and is growing, because the pandemic generated an attraction to aggiornar the house, remains a place of refuge of value for technological innovations and an attractive market for the Argentine consumer that grows with a positive rate and in which from Whirlpool we are gaining market share.

"We want our exports
exceed imports "


Do that market growth have measured?

In the first quarter it came around 20% growth compared to last quarter. In the second quarter it slowed down and in the semester it has been growing around 12% or 14%. We can detect that the market is going to slow down, but it has double digit growth.

How do you analyze it for each category?
Refrigeration, cooking and washing show equal growth. They will keep in mind the investment we made at the Pilar plant, between 52 and 54 million dollars in the company's most modern factory worldwide. Our fort there is to develop frontal loading washes and have a calendar year of 300,000 units, with two thirds for export and more than 100,000 units for the local market. Front loading is one of the market growth drivers, and we leverage it with our upper load line, a category that works very well.

How do you see ice cream makers and kitchens, segments where they also have new products?
Unlike other markets, the great fort are still cyclic ice cream makers, with 70% participation. However, both non -frost and cyclic, have growth rates and kitchens, which with less volume grow year against year and add innovations.

Even with a lower volume, does Non Frost's participation about cyclicals grow?
It is not having the growth that we as a company seek. The main limitation is the high disbursement that the consumer has to make when comparing cyclicals against Non Frost. In most foreign markets, cyclicals is a category that tends to disappear. The Argentine market has certain similarities with that of Europe, but not necessarily with that of the United States and this depends on what type of products is compared and on what origin, if we are more consumers of the European or American segment.

Commercial balance
"Our goal is to have a supervital trade balance," said Castro, referring to the import and export policy. "This would position us as the only electro industry in that situation. When one looks at all the electronics industries in Argentina, it is seen that they are deficit from the point of view of the trade balance. Our interest is that exports exceed imports and for that we made investments in the Pilar plant."

In washing notorious differences with other regional markets?
The Argentine market is very leveraged in the frontal cargo washing machines and in Brazil is totally the other way around, where the upper load predominates. When we thought about the development of the plant, the decision was that Argentina integrates into the company's productive matrix at the regional level, but with all the expertise at the level of the consumer here, where front load washing is preferred. The plant was installed to complement what exists at the regional level and, by that expertise, we are going to export frontal freight washes in the rest of the markets.

Is the policy export to Brazil Front Load washing machine and develop that segment there?
Clear. In a first stage from Argentina we will supply the Brazilian market with frontal load and as we have more volume we will supply the rest of the markets in Latin America.

Are there concrete plans to go to any or some of those other markets?
All markets are open to the development of our products. We have the company's most modern plant worldwide and there is avidity in the markets for having this type of products. We are still in the learning curve. When that curve ends and we have the volume we were talking about, beyond supplying the Brazilian market we will supply the rest of the markets where we operate.

How much did they already export to the Brazilian market?
We started in March and 30% of the entire manufacturing volume was exported to Brazil. Last month we closed around 60% of the total production generated by the plant.

PRODUCTION
"In the current context it is very significant that we are taking 150 more people in the plant," Castro said.

In the future, do you also plan to produce other appliances?
Today 90% is intended for the development and production of frontal load washing machine and we also assemble higher load washing and kitchens.

How is the strategy for whirlpool and luxury link in the consumption target of each?
Luxury link is more than 70 years in the country and Whirlpool More than 30. Each brand has a different situation and independently of the socio -economic level, litraje or technological innovation, we try to cover all consumers and complement the two brands to the entire category.

Thinking about luxury link and its 70 years, how does a brand evolve that was conceptually determined for a whole generation and can mean something totally different for later?
One of the tasks of the marketing team is to continue to aggiornate the brand, and make it attractive to the new generations. Both with luxury link and with Whirlpool we update us so that our consumers continue to choose. We are clear to what consumer segment we are talking about and how we talk to you, especially to the new generations that tomorrow will be recurring consumers of our products.

What scenario or industrial and commercial situation are planned to reach when they reach 300,000 units/year manufactured?
Our estimate is that these 300,000 units generate more than 50 million dollars in exports and with that we would have a zero or positive trade balance, achieving a very competitive position with respect to our competitors in terms of the commercial balance.

Are they going to rely on that balance surplus or will develop more local suppliers, both from parts and supplies?
Es una excelente pregunta. Antes de desarrollar la planta veníamos trabajando en el desarrollo de proveedores locales y cuando ya teníamos la fábrica montada tuvimos muchas charlas con la Secretaría de Producción, porque es una responsabilidad nuestra generar el desarrollo de estos proveedores y seguir desarrollando la industria nacional. Con la Secretaría fuimos trabajando en qué tipo de proveedores locales necesitábamos desarrollar, para que nos ayudaran a encontrarlos. Este año redujimos entre 7 y 9 millones de dólares las importaciones por el desarrollo de proveedores locales y para el año que viene estimamos alcanzar entre 15 y 17 millones.

¿Cómo ves el futuro inmediato, respecto al consumo y a los canales de distribución?
Como compañía, veo que tenemos mucho espacio para seguir creciendo y desarrollando productos. Creemos que el consumidor argentino siempre está ávido de tener nuevos productos y seguir invirtiendo en ellos.
Desde el punto de vista de los canales, uno de cada 4 productos que comercializamos pasa por el canal online y tanto los distintos tipos de clientes, como la compañía, fuimos desarrollando todo lo que tiene que ver con la venta digital y me parece que esto va a seguir pasando. Hay mercados que en la post pandemia volvieron a una plataforma online un poco menor, otros al revés y todavía hay una posibilidad de desarrollar esos canales de forma mucho más grande. El canal retail todavía se está acomodando por la pandemia y pospandemia y lo que pasó con players como Garbarino, Ribeiro o la salida de Falabella.

Aún con los casos que mencionaste, no se produjo una concentración notoria.
No, todo lo contrario. El canal sigue atomizado si lo comparamos con Chile, o Estados Unidos, donde los canales de venta están mucho más centralizados. Nosotros, en promedio, atendemos unas 200 cuentas por mes, pero hay compañías que tienen más de 1500. El mercado argentino tiene muchos puntos de contacto con los consumidores.

¿Cómo gestionan en la planta las políticas de sustentabilidad?
Cuando proyectamos la planta pensamos en que fuera sustentable. Tiene mucha iluminación natural, por lo que el consumo de energía es muy bajo. Recolectamos el agua de lluvia para todo el uso de agua que se necesita y no enterramos desechos, además de generar una plantación de árboles para compensar cualquier tipo de impacto ambiental que pudiéramos estar provocando en el Municipio de Pilar. La planta incorpora tecnología de última generación que nos permitirá enfocarnos en la exportación de productos con alto valor agregado y estándares de calidad World Class Manufacturing (WCM), los cuales aseguran eficiencia a través de la última tecnología de fabricación mundial y permiten desarrollar una producción basada en operaciones y prácticas sustentables.

¿Hay algo que no te haya preguntado?
Creo que tocamos todos los temas. Solo destacar que estamos incorporando el segundo turno de contratación en la planta. En el contexto actual es más que significativo que en agosto estemos incorporando a 150 personas más para tener un nivel de exportaciones significativo. En Pilar nos instalamos en 80.000 metros cuadrados de los cuales ya tenemos construidos 30.000 y compramos un terreno contiguo con otros 80.000 metros cuadrados, pensando, a futuro, desarrollar una nueva fábrica.

Por Rodolfo Pollini / rdpa2005@gmail.com

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