P OW ER S TA R
FEATURE
Legendary TRUCK TRUCK RECORD RECORD
Frans Cloete, CEO of truck distribution company Powerstar, tells Jane Bordenave how the company has overcome the challenges presented in the years since its founding to become one that is growing rapidly.
2
www.southafricamag.com
Powerstar FEATURE
B
ased in Kempton Park on the outskirts of Johannesburg, Powerstar is the sole distributer in South Africa of trucks manufactured by Chinese company Ben Bei. Established as an independent business in 2005 by a small group of South African Businessmen and is now under the ownership of Ben Bei’s holding company, Norinco. Despite still being a relatively small company, it its clients include some of the most prominent names in the South African mining and construction industries, and already has some overseas presence. “Although we have already carried out some business in countries such as Botswana and Angola, we are looking to formalise this aspect of our business. Now that the takeover by Norinco has been completed, we can look at implementing this plan in the short to medium term and rolling out over all of southern
What makes Powerstar attractive to potential customers, both overseas and in South Africa, is the quality and price of the products offered Africa,” says Frans Cloete, CEO of the firm since 2008 who has nearly 30 years experience in the trucking business. Though the brand is perhaps less well-known than some others in the business, what makes Powerstar attractive to potential customers, both overseas and in South Africa, is the quality and price of the products offered, “what we can provide to potential buyers is a well built, reliable vehicle that is designed to be a simplified model. Our trucks have fewer ‘bells and whistles’, but we can demonstrate that they can do the job just as economically and efficiently as what our competitors are offering,” he explains. www.southafricamag.com
3
The economic aspect of the range that Powerstar has on offer has become increasingly important as companies emerge from the recession. Mr. Cloete believes that, in business terms at least, the world has changed forever due to the effects of the crisis. One of the main repercussions is the limited availability of credit and financing opportunities that were available until recent years, meaning that those firms that need trucks to run their business have to choose their investments more carefully – as Mr Cloete puts it, they need to take the emotion out of their purchasing decisions, “all companies are finding that they need to make a mind shift away from finance and towards more measured uses of capital. To take the emotion out of buying products is to take a more rationalised approach and we feel that our proposition of simplified products satisfies that need.” Part of this mind shift and removal of emotional influences that can pose a challenge to Powerstar is preconceptions and prejudices towards Chinese products; with people more accustomed to using big name European or Japanese brands, new entrants from China, such as Bei Ben, can raise potential questions for the buyer – is it reliable? Will it fully meet local and international regulations? Am I getting value for money? “The reality is, that Chinese products are up to international standards and can match any of our competitors,” says Mr Cloete, “the trucks that we sell meet many of the most stringent requirements in the world, for example they are up to Euro levels 4 and 5 on emissions tests,” Of course, most of these questions are answered by building a close relationship with potential and actual customers. Although the Powerstar sells through a series of independent, franchised dealerships, rather than direct to the purchaser, working to establish a bond between the company and its client is an important part of their business model. “Once we have identified our market segments and identified potential customers, we will pay them a visit and create the 4
www.southafricamag.com
Powerstar FEATURE
opportunity to discuss business opportunities and to present our business case,” Mr Cloete explains, “we would then hope to create more opportunities to talk with them and to build that relationship. The client needs time to get to know you in person, get to know the company and, of course, get to know the product.” Once a firm business relationship has been established, then it can become more sociable in nature, reaffirming a mutual feeling of faith and trust. Another benefit of being a Chinese owned company is the injection of Chinese values regarding training and staff benefits. With the effects of the recession receding, professional development is once again becoming an important part of business management for Powerstar; initiatives that are expected to soon take place on a rolling basis include specialist skills training, product training and general skills training, “Chinese culture puts a premium on staff development and this is something we are looking forward to profiting from,” says Mr Cloete. As well as giving its staff the opportunity to maintain and upgrade their skills, the company also offers staff a number of additional benefits that go beyond the basics like Medicaid, “We are a small company by anyone’s measure, so in order to ensure we attract the best and brightest people to the company, we give them pay and benefits on a par with what is offered by our larger and longer-established competitors. This is another very important part of Chinese culture – valuing and rewarding your workers – that we are fortunate enough to be able to bring to South Africa.” Looking to the future, as well as the planned rolling out of the business to other southern African nations, what else does Mr Cloete see on the horizon? “First and foremost, we want to grow our dealer footprint, giving us representation throughout
the area. Secondly, we will look to grow our range of products – we have consolidated our products and our presence, but we need to broaden what we have on offer in order to grow. These are our two main areas of focus for the future and this is our strategy to raise our profile to the point where we are level with the other big international players.” Differentiating itself through its Chinese product, yet remaining a solidly South African country, Powerstar is unique in its field. With the changed world that has emerged from the recession, Powerstar can offer clients a new approach that is more befitting the current situation. It is that kind of attitude that makes a successful business and it is that attitude that makes Powerstar. END
We want to grow our dealer footprint, giving us representation throughout the area
MANUFACTURERS AND REPAIRERS OF LOAD BODIES, TRAILERS, INSULATED AND REFRIDGERATED BODIES WE ARE PROUD TO BE ASSOCIATED WITH POWERSTAR S.A AND CONGRATULATE THEM ON THEIR BRANDING OF POWERSTAR AS A STANDALONE COMMERCIAL ENTITY. WE COMMIT OURSELVES TO CONTINUING THE EXCELLENT WORKING RELATIONSHIP NOW AND INTO THE FORSEEABLE FUTURE. MAY YOU GROW FROM STRENGTH TO STRENGTH
South Africa Magazine, Suite 9 and 10, The Royal, Bank Plain, Norwich, Norfolk, UK. NR2 4SF TNT Magazine, 14-15 Child’s Place, Earl’s Court, London, UK. SW5 9RX ENQUIRIES Telephone: 0044 (0)1603 343267 Fax: 0044 (0)1603 283602 emailus@southafricamag.com SUBSCRIPTIONS Call: 00441603 283573 subscriptions@southafricamag.com
www.southafricamag.com
Head Office Unit 1 Jurgens Street Isando Ext. 5 Jet Park Kempton Park South Africa Tel: + 27 11 565 5300 Email: info.sgip@supergrp.com Afterhours (17:00 to 08:00 and weekends) for parts and technical queries: +27 33 846 0500
www.powerstarsa.com