Unicasa Móveis - Relações com Investidores

The Company / Strategies and Competitive Strengths

Competitive Strengths

Leadership in the Brazilian furniture and fixture market, and a portfolio of well-known and complementary brands for all income brackets  

We are one of the largest companies in the customized furniture and fixtures market in Brazil, in terms of gross revenue. Our brands Dell Anno, Favorita, New and Casa Brasileira are well-known in the national market and we believe they are purchased by nearly all income brackets without significant cannibalization. With such varied profiles, we significantly invest in marketing campaigns for our brands, including campaigns involving fashion models, celebrities, architects and designers seeking to increase our brands’ credibility in the worlds of design, architecture and fashion, along with the respective audiences they tend to reach. Furthermore, we frequently presented our brands and products in tradeshows and exhibits around the country, such as Movelsul, Movelpar, Casa Brasil and Casa Cor. Moreover, we are one of the sponsors of the 2012 Milan Furniture Fair in Italy. We believe that our brands are the foundation of our development and profitability.

Broad distribution network delivering products throughout Brazil and abroad.  

We have developed a solid network of authorized distributors, strategically located, standardized and suited to each of our brands. With a presence in each Brazilian state, as of December 31, 2013, our distribution network consisted of 832 Exclusive Dealers and 2,852 Multibrand Sales Points in Brazil, as well as 16 Exclusive Dealers and 19 Multibrand Sales Points abroad, located in the following countries: Paraguay, Uruguay, Martinique, Angola, Costa Rica, Chile, Colombia, Mexico, Argentina, Peru, Guatemala, Mozambique, Namibia, South Africa, Tanzania and Dominican Republic. The extension of our distribution network, as well as varied customers and markets, allows us to obtain knowledge about each market and its peculiarities, strengthening our brands and their ranges.

Product development and innovative design at a state-of-the-art and highly efficient manufacturing facility.

Our research and development team stays current with market trends, continually assessing indicators in the areas of aesthetics, functionality, fashion and behavior, in order to regularly launch new collections with innovative designs. The advanced technology used at our manufacturing facility helps us to quickly launch new products and provide quality workmanship on a large scale. Furthermore, the modern equipment used at our facility allows us to work with a product line that offers multiple options in surface finishing, without impairing economies of scale. This provides us a competitive advantage, since we can develop more comprehensive product lines, in terms of surface finishing’s offered, at a lower cost.

Ability to identify and react to growth opportunities in the industry on a timely basis. 

Our industry has benefited from growing consumption, credit and income throughout Brazil, as well as the boom in the Brazilian real estate market. We believe we are well-positioned to seize these market opportunities, as we have adapted our structure following these recent economic changes, so as to be able to promptly react to prospective opportunities. For instance, in 2009, as middle-class consumption began to grow, we created the New brand, focused on customers in this income bracket. Similarly, in 2010, with the rapid growth of the real estate market, in terms of residential, commercial, hotel development and construction in general, as well as Brazil being awarded the World Cup and Olympic Games, we created a corporate department, Unicasa Corporate, to provide customized services to our customers in this business.

Company’s own structure of stores.

In April 2013, the Company started operating its own stores, five of which are located in São Paulo and one in Manaus, all of them under the Dell Anno brand. This structure is supported by the Company’s own network of sales consultants, project reviewers and assemblers. We believe this structure is unique in the market as we will directly interact with end consumers through a trained team that is aligned with our beliefs and principles. This way, we will be able to offer a differentiated service to the demanding customers of the Dell Anno brand.

Strong cash flow.  

We have not invested significant capital (other than in production facilities), we maintain a low inventory of finished products (our products are made to order), we have short sales deadlines and low investment in property and equipment (when considering the company’s entire supply and distribution chains, the manufacturing plant and related equipment are the main property and equipment the company holds), which has allowed us to grow while generating cash flow. In addition, we estimate that our manufacturing facility’s production capacity may be expanded by approximately 40% without significant additional investment, which reduces our need for short- and medium-term capital investment without compromising our business plan for the next three years. We believe our business model provides us with potential to grow with strong cash flow, resulting in high rates of ROIC, which totaled 31.2%, 36.0% and 28.2% for 2011, 2010 and 2009, respectively.

Human resource policies focused on results and the customer. 

Our business relies upon a sales model that begins with the development of a project, followed by product assembly and continuing through the moment of sale and the post-sale services. We are aware of the importance of motivated sales personnel committed to the principles of each of our brands and to providing good service to customers and specific professionals in the area (such as architects and designers). In 2007 we implemented Unicasa Corporate University, a pioneering initiative designed to train our employees, Exclusive Dealers and their teams, and to guarantee support and disseminate best practices for each step of the business process. This initiative has provided us with an improved performance from the better results obtained by our employees and Dealers, as well as preserving our image and increasing the value of our brands.

Management with ample experience in the sector and a high degree of professionalism.

Some of our founding shareholders that are members of our board of directors and executive officers have been active in the furniture business for over 20 years. In addition, our management team is focused on results, continuously improving management’s practices and increasing returns on investment for our shareholders. Our management and executive team has been the foundation of our consistent results and the growth of our company throughout our development providing us with the ability to quickly develop new business lines. 

 

Strategies

Benefit from growth opportunities.

We plan to intensify our efforts to create growth opportunities by investing in the training of Exclusive Dealers to make them more efficient so as to strengthen the positioning of our brands, encourage the implementation of improvements, increase investment in team training and business management. 

Obtain greater economies of scale and operational efficiency through an increase in sales.

We plan to achieve growth and to consolidate our leadership position in the customized furniture and fixture industry by improving our operational efficiency. We expect maintaining our sales growth and continually investing in technology will allow us to obtain additional economies of scale and operational efficiency, which will help dilute fixed costs, increase our negotiating power with our suppliers, improve productivity and optimize our manufacturing capacity.

Drive the profitability of the dealer base and sales.

In 2013, we continued the process of repositioning our dealer network, closing down small, low revenue operations with little impact on the result. This initiative was aimed at homogenizing our dealer network so that we can focus on more profitable operations to increase returns to both the dealer and the Company. 

Continuously increase our range of innovative products offered.

We believe that regular innovation is an important element for the image of our brands, our competitiveness and our growth. Additionally, we believe that we are known for our focus on research and development and will continue to manage our product mix in order to anticipate trends and surprise our customers. 

Increase sales by our corporate business.

We believe the span of our network of Dealers, combined with our logistics structure, production capacity and flexibility, places us in a privileged position to capture significant benefits due to the growth of the corporate business, resulting from the significant real estate market growth in Brazil that is expected as a result of the 2014 World Cup and the 2016 Olympic Games. We plan to keep expanding our business relationships with corporations such as hotels and construction companies, which will allow us to leverage our sales in this business.


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Dell Anno Favorita New Móveis Casa Brasileira Unicasa Corporate

Rodovia Federal BR 470, Km 212, 930 - Bento Gonçalves - RS - CEP: 95707-540 - Caixa Postal: 2505 - Phone: +55 (54) 3455 4444 - SAC: 0800 6464 226Developed by Anderson Triacca Ideas Design