Tino commercial, aggressive pricing and popular focus: a triad that explains the Nestlé Group Otoch
Otoch Joseph Abraham, 77, but it is a case in retail stores nationwide. With a policy of aggressively low prices and focus on popular products, he managed to annoy competitors like Wal-Mart and Carrefour. Born entrepreneur, who owns an impressive simplicity and humility that he is a dentist, but there is a good time do not know (or think more and to know) what is an office. For Wagner
Belmonte
"I do not work to live, but live to work." The sentence would be natural if any came from a workaholic. Not the case. The author has 77 years and works from the 13th. What can apparently not seem early for the descendant of Lebanese Otoch Jose Abraham, president of a commercial empire in the Northeast, to Abraham and Otoch Cia Ltda. With pride who got there, "Your" Otoch as it is called, explains what led him to work with such a young age. "I did not like to ask for money from my father."
With 16 branches spread across the states of Ceará, Pará, Piauí, Rio Grande do Norte, Maranhão and Goiás, northeastern businessman rejects any comparison with Samuel Klein, the creator of Casas Bahia. "I'm tiny," defines itself. Not so. The group built by him in direct competition with companies like Wal-Mart, C & A, Brook and Carrefour, not to mention that grew in an era, the 90s, where Mappin and Mesbla hitherto solid at retail, broke. Son of Lebanese
Otoch Abraham, who came to Brazil in 1895 and worked as a peddler in Ceara, Otoch account exactly where the secret of all success. "The Lebanese have the blood of merchants and industrialists, know buying and selling," boasts, an allusion to the shrewd business sense.
For those who already did, according to himself, "almost everything in life," Otoch has a distinguished portfolio: from retail shop to a company with the former governor of Ceara Tasso Jereissati in a five star hotel in Fortaleza, it is not difficult to figure out why it highlights what we affectionately call "branch" soft "- clothes, bed, bath, decoration etc.. But how to achieve all these differences in a retail organization? All their shops are selling cheaper in Ceará and Otoch dare say that this is true even for Brazil. "I assure the client that even after 60 days of purchase, if it finds a commodity cheaper than what I sold, I return the difference in cash. Nobody does it in Brazil." The boldness attracts unsympathetic comments: "Many call me crazy."
Lodges Otoch bill annually an average of $ 150 million and employ about 1,600 people. At the end of the year, 600 temporary vacancies are open to help in the production volume which tends to be higher. The goal, according to the businessman, is to grow 25% to 30% a year, something that is not always possible.
Plans for 2006 are outlined, but conditional on changes in the country. The idea of increasing the number of stores from 16 to 20 will depend on how economically and politically Brazil. If you continue with the current scenario - political scandal, high interest rates and tax burden also up there - from the top of its 64 years of work, Otoch says it is "risky" to grow. "The situation in Brazil has to change immediately or national firms will not break and that break will suffer." But he is not discouraged. "I'm very optimistic. Brazil has gone through several crises and it will win more," he says.
Born in 1928, graduated in Dentistry at only 20 years - where he served for only four - and calling itself "the largest and best executive" in life, Joseph Abraham at age Otoch has a drawback, but one differential . However, this is not the greatest. What is more surprising perhaps that will have to keep winning, something that seeks to shift to employees and establish a differential management. Grab it early on and has leveraged that over the years led him to fear no competition and, more importantly, to write an unusual story in retail.
Manager - What is your opinion on the Brazilian economy?
Otoch - I am very objective. Brazil's situation has to change immediately or national firms will not break and that break will suffer.
Manager - Why?
Otoch - As the national situation depends largely on the federal government. I'm not against the government. I am a businessman and I am not against any government, but the current situation in Brazil is very difficult. Calculating the "great" here in Fortaleza. Let me give an example from C & A, who is French, as the company of Abilio Diniz, who is now linked to another French company, the Riachuelo and Wal-Mart, which is one of the largest retailers in the world. All, without exception, are struggling. They may not even admit, but they face.
Manager - Wal-Mart is already here?
Otoch-It is here and it will open more stores because it has the resources of a multinational. Money help: they manage resources 3% to 4% now, here, at least, firms get serious at 30% per annum. Those who are not serious become the 4% who "manage" each year in monthly interest, ie pass the bill to the consumer. Interest rates have to duck to avoid unemployment - already at the national level - and nobody has taken action. Even the vice president has "hit" on the government to lower interest rates. The interest has to lower tax burden and also because it is very high. Perhaps the world's largest and if not first, occupies the second or third. We have to compete with China, which is a country that opens and has practically subsidized interest. The payment, there occurs an average of $ 40 per month of mass employment, but in compensation the government gives all the official. Here, we have the INSS it was to give everything to the employee. All employees must have a private health insurance. I consider it absurd.
Manager - There is a cut-throat competition?
Otoch - That's what I say. But I'm very confident, I'm very optimistic. Brazil has gone through several crises and win on this one. I thank God, "go along" as an entrepreneur. I have sixteen branches. I have stores in Goiânia (GO), Natal (RN) in Mossley (EC), São Luiz (MA) Teresina (PI) and Bethlehem (PA). Thank God, my firm will professionally as well. It could go much better. We only hope that federal, state and city help the entrepreneurs in the earth, but, soon, we'll have to speak English, French and other languages because large firms are foreign and have all these facilities.
Manager - How old are you?
Otoch - I have 77 years. I was born on February 21, 1928. Working since 13 years, 64 years ago.
Manager - Why did you start working so early?
Otoch - By necessity. I did not like asking for money to my father and my uncles was earning a salary equivalent to $ 300.00 today. I've always been very independent. I graduated in dentistry, I graduated at 20 years and was the youngest student so far who has left the faculty of dentistry Ceara and the entire university. I worked as a dentist only for four years. I worked as assistant to the best dentist in Fortaleza, Augusto Mota Borges. When we entered the college, has started working. I was a dentist in the Santa Casa de Misericordia, I made a dental care with a colleague near the prep school. Then I decided to enter the branch tissue. Already working in the field of textiles 57 years ago. Eventually we had 55 stores in Brazil, from Sao Paulo to Bethlehem, including Brasilia, Goiania and Belo Horizonte. In March this year, we made a division, I was left with 16 stores and my brothers and nephews with 30 stores. It was to be half and half, but gave up part of the I was right. I'm going very well, fighting, working. Today, we have department stores and work on everything in the branch "soft." What I call "soft industry" are the sunglasses, watches, CDs, clothing for babies, children, bed and bath, decorating, etc..
Manager - Why do you call a soft branch?
Otoch - The "hard class" are the appliances, the soft branch is the branch that we have everything except appliances.
Manager - In Ceará are many stores?
Otoch-In Ceara, we have six stores in the capital and one in Maranguape in the Metropolitan Region of Fortaleza.
Manager - Altogether there are 16 stores. Where are other?
Otoch - In several lugares.Temos in Goiânia, Natal are three, have one in Mossley, we also have a fairly large in Teresina, St. Louis and two in Bethlehem
Manager - how many people you employ, you Otoch?
Otoch - On average, more or less 1,600 people directly. From January to June, the number varies between 1400 and 1500. After passes from 1600 to 1700, starting in July. There goes until December.
Manager - which led him to not follow in the field of dentistry and migrate to the retail area?
Otoch - I am of Lebanese descent. The Lebanese have the blood of merchants and industrialists, they know to buy and sell. Vim a city that is 15 minutes from Beirut. My father came here with one year of age, in 1895, when he was 21, went to Lebanon and married my mother, even at 13. I mean, I'm of Lebanese descent "thoroughbred."
Manager - What was the city of your parents?
Otoch - Zahle, a town located fifteen minutes from Beirut.
Manager - Why did your parents came to Ceará?
Otoch - The Lebanese are equal to Ceará: much like to migrate. There, the city was too small, considered the Paris of the East. Arabs and Jews had to go to Lebanon forever, especially when the holidays arrive, as Beirut was considered the Paris of the East. But it came civil war that mad with Syria, the Palestinians, the Jews and almost ended with Beirut. Today, she's recovered and is still as before: a city almost new, because almost everything is rebuilt, and after that absurd murder of a Lebanese ministers, it became independent from Syria. Syria is more than Muslims, regardless, is completely different from what is Lebanon.
Manager - The parents of Mr. came to Brazil when?
Otoch - in 1895. My grandfather fell in Rio de Janeiro, Belo Horizonte and went through came here. When he came here, liked the Ceará and decided to stay. My father was one year old, my grandfather came with two children. Here, the family had eight children, all of Ceará.
Manager - The war prompted his grandfather to come to Brazil?
Otoch - No. In Beirut had no job and he came to organize their lives.
Manager - And you no longer dentist ....
Otoch - I graduated with 20 years, and March 19, 1949, I decided to enter the field of tissue. I devoted myself to dentistry because my father had stopped working in 1937. I went to college because he wanted to be a doctor, but he had a brother who was studying in medical school here in Ceará and decided to join some courses in dentistry because I had done and would only missing.
Manager - But what led you to the area Retail?
Otoch - I thought you just could not work for me, it should be a merchant. Earlier, it had a retail shop, I shop for wholesale, then replayed to the stores from all states of Brazil, then went to a clothing shop. Then I also began to real estate, companies have had with my brothers in the construction of apartments. Practically did everything in life.
Manager - Have you been to the area as a retail dealer or manufacturer?
Otoch - As a merchant. My specialty is more as a businessman, but then I started to be industrial.
Manager - When you came to be industrial?
Otoch - More or less in 1972, then I also began to real estate - construction of flats for sale - I was a member of the Group of Vicunha Nordeste SA and was a close friend of the father of Benjamin Steinbruch. I was his partner for 23 years: from Christmas 1969 to December 1992. So we decided to separate us, but we remain good friends. Then he had a lung cancer, died, and Benjamin, Ricardo and mistress Dora continued life.
Manager - You entered the retail in the developmental leap from the 50's, the decade of populism in Brazil.
Otoch - intensified the entry into the retail economy until 1959 and also joined in the attack. In 1964 there was a revolution the military, which was until 1985. It was one of the times in which Brazil has grown more because, among the military, I think, was not no rich. Had the White Castle, who died in that accident, then came the Medici etc., but the others were all very good and competent. It was the time when most growth. Then the time of Sarney. Incredible! When interest rates reached to 90% per month, was the best time for my company in Brazil.
Manager - Why did you decide to invest in retail in a decade in which Brazil had the government Vargas, Café Filho and Juscelino?
Otoch - You saw what Lula said he would not be the Getulio Vargas will not commit suicide. It will not be a Quadros. He wants to be a Juscelino, but says he wants to be recognized in his lifetime. For this, he will have to change much. But I always bet on our government because I am no politician, I'ma businessman. That decision, back to the time it made sense that the market was. Ali was the greatest chance for growth, solidifying the organization's structure. Today, in theory, things are even more difficult for the beginner.
Manager - How many employees your group will have until the end of the year?
Otoch - Normally, I get to 1800 and earlier this year I get 1,400. Now with 16 stores, all retired and nearly'm modernized. Now I am leaving to open new stores. And I will open only when I feel that Brazil deserves the confidence we should have. For now, we keep 1,600 jobs.
Manager - You must have 1,800 employees by the end of the year. In early 2006 there is an indentation. Why?
Otoch - Yes, because yields in the period September to December I admit employees for 90 days. Granted provisional or temporary bond with because when it fires, it is not paid notice, finally, some things are unpaid which encumber the company. When he arrives on December 31, dismiss employees. All contracts with a maximum of 90 days.
Manager - Mr. has been much compared to Samuel Klein?
Otoch - No, because I'm tiny. Casas Bahia, when they came to Fortaleza, has gone to Rua Barao do Rio Branco, where was the Ark of the Covenant. I consider him a great Australian, an opinion maker, well, I admire him very much. I have respect for whoever wins. I never said I am or was Samuel Klein of the Northeast.
Manager - How do you explain the success of your company?
Otoch - work, competence, integrity, humility, and I will also copy the lives of those who win because when we create, we win or misses. When we copy, we just copy who wins. Then, the possibility of winning is practically 100%.
Manager - Copiar o exemplo dos que vencem. Quem, por exemplo?
Otoch - Copio, me inspiro e me espelho em todos os brasileiros que vencem. Eu leio excessivamente a Folha de S. Paulo, o Estadão e o jornal O Globo. A coisa que eu mais gosto de fazer é ler e aprender. Eu copio os que vencem; os que não vencem, procuro esquecê-los. Sou muito otimista. Eu continuo trabalhando com tecidos, que foi o primeiro ramo em que trabalhei, e, como os outros não trabalham com isso, levo grande vantagem sobre enormes redes como a C&A, como o Wal-Mart, como todos, enfim, porque eu compro muitas oportunidades e trabalho hoje, exclusivamente, dentro da moda. Não trabalho com o tradicional, com o supérfluo. Working with fashion only. I believe today that Otoch stores are selling cheaply in Ceará, and perhaps in Brazil. I guarantee that customer, even after 60 days of purchase, if it finds a commodity cheaper than what I sold, return the difference in cash. Nobody does that in Brazil. Many call me crazy.
Manager - Do you want to open new stores?
Otoch - want. I'm finishing the last store, making shopping and plenty of highly professional competence. My shops are the best. I want to offer more to consumers by a systematically lower price.
Manager - And you want to open as many stores and when?
Otoch - this years, retired almost everything. If the government allows, I will open. That will depend on the national situation because you know we depend largely on federal, state and municipal levels. If there is no real help from governments, the economic part, the scene is now different. I enjoy walking with their feet on the ground and how we are businessmen and are not politicians say that my shop has no religion. All religions are good. I'm Roman Catholic, but I respect the Mason, the Protestant, evangelical, etc.. Currently, there are all kinds of churches: Universal, Bethesda, every day you create a different. In my store there is no requirement for nothing. I do not have racism. In Brazil, many people say they have, but in fact does have, and I think this is absurd. The key is to sell. When I'm talking to a person of Fortaleza, Fortaleza I am when I'm talking to someone I know is of Ceará, Ceará I am, I'm the one who wins: I want to be an overall winner. I even play with everyone: I am the biggest and best executive in my company. I mean that in fact, I meet with my executives and I am an executive like them. Who has an opinion different from mine and prove by A plus B to his thesis is accepted, the employee prevails even simpler. Am I the only company that gives away the Ceará Ticket Supply for everyone. In the matrix, I take breakfast, lunch and also for some who earn less - for the lowest salary is R $ 397.00 - two baskets to give each of which earn less.
Manager - You will open new stores next year if ...
Otoch - I have no idea how far it will be, but everything will depend on the government.
Manager - But how many stores?
Otoch - I do not want to go from 20 shops. I want to open another five stores and ready. I'm 77 years old and I'm very much down to earth. I will only go as far as I can.
Manager - then you want to open five more shops ...
Otoch - Until the End next year.
Manager - Until the end of 2006?
Otoch - Yeah. As I said, will depend on how Brazil is. If it stands currently, I think a crazy expand. I'm expanding and renovating. Every store I reform, increase of 600 meters to 1,200 square meters. I'm growing up and looking much the cost of that growth. I grow with the same manager, the same sub-manager. Just admit manpower lower level, with more basic training, which produces. The other, employees who have greater responsibilities, because I already have today, and think very eye to fixed costs that affect the company.
Manager - This is not unfeasible, For example, a career in business?
Otoch - Seeking to give opportunities to my employees. He grows and then goes to supervisor, then passes the assistant manager, then to management. Sometimes I'm up to 15 buyers. Then, come to buyers, others go for management, others for the audit - because I have to audit all stores. I know, every day morning, as I sold, I sold what and why I sold it. My credit card is my strength, I do not negotiate my credit card, only the third card.
Manager - How so?
Otoch - I'll explain: My credit card is 100% automated, all online and it is the customer's life. I do not negotiate. He is considered one of the top five of Ceara. My credit card is entirely its own. I approve and have pretty much default. If the client was delayed by health problems or for any other reason, I renew for six months with subsidized interest rates from almost 2.5%, because if I put in an undertaking as Fininvest or as Credicard, would kill the goose gold. The hen that lays golden eggs is not my client gives me a default.
Manager - From the office of clerk to the manager, how it changes the salary?
Otoch - The lowest wage that I have is exactly £ 397. A manager wins usually £ 5000. The position of the buyer, also a U.S. $ 5 000. We have an employee who earns $ 10,000, but is a general manager, director-general.
Manager - With the opening of five stores, how many jobs will you create?
Otoch - I imagine it will generate about 600 more jobs throughout Brazil.
Manager - What do you think of CLT?
Otoch - The labor law in Brazil, sorry to tell you, is an obstacle. When Vargas created the labor law, he created something very advanced for that time. Today, the law is preventing jobs. For example, in December I work with that system for 90 days said that, but I have to waive in 90 days. I keep good employees and shooting those who no longer have the potential to grow. Another thing, this wave of unemployment is caused by the labor law must be changed. It's much obliged, and the government does not return much. The INSS and receives much government gives nothing in return. Until the health plan you pay half and half employee. What we pay in Social Security is absurd. And if employees depend only on Social Security, he makes an appointment for six months afterwards. Someone with a serious illness can go after six months? You can not. He has to have a plan of his own health. Sometimes, the firm helps and sometimes can not help. My son in law owns the best Hospital Ceara. Now it is among the top 25 hospitals in Brazil and I am also a member. Are only four owners: My son-my daughter, my wife and I, but the main partners are my son in law and my daughter. I have done the will to give everything to him, for my daughter. My other son also works here with me and I live very independent. Now, mind you, President Lula was here recently. The only hospital that remained on guard, to give full assistance to the presidency and all the staff, because our work was 24 hours.
Manager - What's revenue last year and what is the outlook for this year?
Otoch - The average income hovers around $ 150 million per year. But sometimes it is larger and sometimes even gets around that. Now my goal is to grow, with the shops that I stayed an average of 25% to 30% per year. I subscribe to all small firms, medium and large in Brazil. Few firms are growing. Some are not even selling what they sold in 2004.
Manager - Does your company offer something like PLR?
Otoch - Not quite an interest. I give a target for sale. If the goal is reached, all employees - from the simplest to the manager - get 10%. If they are sold 10% more, give more than 10% of the coefficient of the target if he sell the 20%, 20% give more. It an incentive: the more he sells, the more he wins. And I do not give only to the manager. When one wins, everyone wins.
Manager - Mr. invests in training for employees?
Otoch - Very. I do a lot of courses: those who know more teach those who know less, and I also collaborate with outside courses, eg "how to captivate the customer," "how to sell more," "how to produce" etc.. I invest much of it. In all courses, I collaborate a lot. I understand that the employee must have access to modern tools for sale.
Manager - But you are investing in internal training?
Otoch - Internal and external.
Manager - What factors do you attribute your success?
Otoch - because I'm sure I gave a guy that I sacrifice a lot. Live almost exclusively for work. Never smoked and liked to drink socially. Since the age of 60 do not drink a drop of alcohol. I say today that does not work to live, but live to work. I'm practically a pure Lebanese.
Manager - Not all Lebanese worked as you ...
Otoch - I say this sincerely: I think I was not born to have a career. I made one because my dad had not worked since 1937 and resumed working in 1949 when I did 20 years ago. Aged 21, I sent the firm throughout. And I said, "I want to work not only for my work, I have," because the person who chose the career liberal only work for her. On the day he will take leave, she gets nothing. The guy who runs a company makes money when you're working, enjoying holidays and all.
Manager - And the competition?
Otoch - I'm not afraid of competition. Came the Wal-Mart, the world's largest network, and I sell them cheaper. Came to C & A, I am a neighbor of C & A, I'm with them every day and do not fear competition. I face up to competition from supermarket: Extra, Carrefour. Carrefour came there. He specializes in decor, bed and bath and did not affect me. In fact, everyone who comes gets a "fatiazinha" cake in the world. My life is a lot. I've been consulted by several people from St. Paul to write a book about my life and I would not pay anything, because I call too much attention. I was invited to, in Bethlehem, to an industrial and Fortaleza as well. I already received all the awards we received a dealer. I received the "Golden Mermaid", which is the best award given to a merchant. I no longer receive any awards. Maybe I will get some more prizes. I spent many years as a major contributor to the state of Ceara.
Manager - Are you a member of Tasso Jereissati?
Otoch - I was a member of Tasso Jereissati at the hotel but it was sold to a group of Portuguese because all the hotels in Brazil were losing money. Before that came a proposal by the Pestana Group, which worked only six months and ten days came and bought the Portuguese group. Tasso Jereissati is an example of integrity and competence. I already have 77 years and has 57 Tasso. He is a great businessman. Indeed, here we are lucky with the governments. We have had three governments with Tasso Jereissati.
Manager - How many people are employed in the industry you?
Otoch - I actually have, when the whole group was together, 10 thousand jobs. They were, more or less, a thousand people in apartment construction, another thousand in the hospital and the others from all the stores, before splitting with my family. At this time, we generated 40 000 indirect jobs.
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