Deep wood processing products are more profitable than the sale of raw materials
After listening to two dozen export stories, we concluded that there are very few companies that are among the foreign customers who have the first importer of their products. However, there is nothing surprising here: everything goes, everything changes. There are more profitable, more convenient options, and the first is only a mention. Well, if nice …
The first foreign partner of the Kamenetz-Podolsk small private company Podilwood Hermes-S, which it found in the “web wilds” of the Internet, was a Czech company that agreed to buy a Hermesivsky furniture panel – solid, made of hardwood. Subsequently, those who wanted such a shield were found in other countries – Israel, Holland, Estonia. But let’s finish with the Czechs – as Дмитро Байдюк, the head of the woodworking direction at Hermes-S, told this story. The Czechs refused to buy a shield, not because Hermesivtsi began to sin with its quality, but because they were no longer satisfied with the dimensional parameters. I wanted a large-format shield, and Kamenetz-Podolsky wood refiners could not satisfy such a need: to produce a shield of a different format, you need other equipment, but it is not so simple to immediately update or change the machine park.
Here is another reason that Ukrainian exporters are losing foreign customers. Our companies do not have time for various reasons – most often financial – for market changes. They lack flexibility, foresight, tracking market trends, forecasting prospects. And objectively, small companies cannot do what is powerful, in which they have great marketing opportunities, great opportunities to adjust, reorient their production capacities in time to changing market demands and needs.
The Hermes-S company is a diversified enterprise, and this gives it the opportunity to balance and regroup forces in the right direction. For some time now, on the company’s agenda is to go further to the manufacture of raw materials in woodworking, to undertake final production, which needs deep processing of wood, which is more marginal due to added value. At first it was a carpentry – window sills, stairs, doors – and there, you look, they were able to manufacture furniture. First, they “rolled in” their furniture at hotel facilities complexly being built by the company. It turns out. You can improve in furniture. Up to the point that furniture also becomes a commodity with export potential. My interlocutor understands that on the way to such improvement can not do without cooperation with reputable designers. And in terms of certification support, it is not enough just to confirm that the company is dealing exclusively with timber legally acquired in leshozes.
The company plans to enter the Polish market. So far, everything is with the same shield, necessary for furniture makers producing products from solid wood. The three main components of panel materials are being harmonized: price, quality and size. Not easy, you know, this task in the current conditions …
The section “Success Stories” was founded as part of a grant project with the support of the Swiss Cooperation Bureau in Ukraine, the name of the project: “Improving the level of cooperation and trust with joint participation in international and national public procurement” – TENDER TOGETHER.