MG International Fragrance Company Deputy General Manager Konca Provides Sector Assessment

International fragrance producer MG International Fragrance Company overcame the adverse conditions experienced in domestic and foreign markets last year and focused on 2021. The company, which views 2021 with optimism for the chemical sector, also has investment plans for this year. Bülent Konca, Deputy General Manager of MG International Fragrance Company, provided assessments on the sector. Supplying fragrance compositions and raw materials to approximately 4,000 global manufacturers in over 72 countries and domestically, MG International Fragrance Company creates the scents for many well-known brands and products recognized by consumers. [caption id="attachment_123399" align="aligncenter"] Bülent Konca[/caption]   The company, ranked among Turkey's top 750 industrial firms, operates a robotics-integrated facility producing over 200 fragrance formulas and 280 different raw materials using more than 4,500 raw materials. The company's fragrance compositions and raw materials are used to scent products manufactured by brands operating in cosmetics, personal care, hygiene, household cleaning and paper products segments. MG International Fragrance Company continued production without losing momentum during the pandemic period that affected the world adversely, and maintained its investment planning. Adapting to sector fluctuations experienced in 2020 and working in cooperation with its suppliers, MG International Fragrance Company developed a new working policy in line with pandemic rules, prioritizing health in the conditions facing our country. Following a period of sector transformation, MG International Fragrance Company is focusing on its expanded targets in 2021. Bülent Konca, Deputy General Manager responsible for Marketing at MG International Fragrance Company, stated that while maintaining employment in the chemical sector against last year's challenges, they continued production to meet increasing demand in certain product groups in domestic and foreign markets, and achieved their year-end targets in both domestic and foreign markets. Noting that the increasing demand for hygiene and cleaning products offset the contraction in premium cosmetics products sold through retail channels, Bülent Konca said, "The first quarter of 2020 passed with growth and success for the chemical sector. However, the pandemic, which could not be anticipated in target planning and action plans to achieve these targets, brought along disadvantages such as important market closures for manufacturers and customs restrictions during the rest of the year. The pandemic began to show its first effects in March, April and May 2020. Adaptation to new dynamics and controlled normalization from June reflected in the domestic and foreign sectoral market. Increasing interest in disinfectants and household and personal hygiene products that pleased manufacturers contributed to production increases and strengthened cooperation with local suppliers. This formed a brief summary of the success in achieving 2020 targets," he said.

CHANGES IN CONSUMPTION HABITS POSITIVELY IMPACTED THE SECTOR

Stating that when viewed globally, the pandemic period caused contraction worldwide and numerical and volumetric losses in some product categories, Konca added that during this period, increasing demand for medical, hygiene and cleaning products in our country and worldwide, combined with the dynamism provided by product formula changes that increased consumer convenience, largely compensated for losses experienced in other product categories. Konca stated: "Interest in alternative private label (PL) branded products with similar effects and quality in soaps, colognes and disinfectants, which are the seasonal flagship products of our sector, increased. We saw the impact of this in our exports during the first 10-month period. In these product categories, there was an increase of approximately 50% compared to the same period last year. This process changed shopping habits and priorities in our country and worldwide. I believe that in 2021, new PL branded products will be added and interest will continue to grow."

LOCAL SUPPLIERS WILL GAIN IMPORTANCE

Deputy General Manager Bülent Konca stated that new experiences were gained in supply chain management in every sector, and that the process was learned by experience and led to the development of new perspectives. Konca said: "During all this process, import problems and increasing logistics costs reminded every manufacturer of the necessity of not being dependent on a single supplier. This necessity brought dynamism and diversity to the sector. In short, supply chain management during and after the pandemic will be reviewed and reorganized. Countries and manufacturing firms will bear certain additional costs and prefer to procure from their own regions or nearby, easily accessible and sustainable places. Local suppliers will gain importance and sectoral cooperations will develop. Due to our country's position and logistics advantages, the trust placed in our brand, the richness of our product palette, service speed, timing and subsequent supply preference and process management will put us at the forefront."

INVESTMENT WILL BE MADE IN TECHNOLOGY

Bülent Konca announced that they will add another line to their state-of-the-art robot production line in the first quarter of 2021; with this investment, they plan increases in both capacity and efficiency, and stated: "Maintaining our stable growth rates from the last 5 years, we will produce more for our friends in the sector. Exports are very important for us and our country. To increase our own foreign exchange reserves, we will continue our export drives and 2021-2022 will be the private label year." Regarding his sector outlook, Konca said that his forecast is that hygiene product consumption will steadily increase over the next 2 years, and they believe that household care and personal care products will see greater demand in consumer habits. Expressing his belief that in the subsequent period, consumers will act much more consciously, conduct more detailed examinations regarding product contents, and make new purchasing decisions accordingly, Konca said, "This essentially means that consumer preferences are directing sector dynamics," and added: "As MG International Fragrance Company, we work with both internal departments and sector stakeholders as well as official institutions to protect public health, prevent the spread of COVID-19 and ensure supply chain continuity, and we continue our work with certain precautions to get through this period safely and ensure production continuity."   For more information; www.mgfragrances.com