In 2013 Istobal decided to make the move into the Italian car wash market. Since then the family run business led by cousins Rafael and Yolanda Tomás has seen a huge growth in the country. erpecnews live spoke with Chief Executive Officer Rafael Tomás to find out more about Istobal’s success in Italy and their plans for further developments.
Istobal has been manufacturing and supplying car wash systems since 1970 and are now one of Europe’s leading suppliers, with machines in 75 countries.
Since their arrival in Italy three years ago Istobal has amassed a network of 20 regional distributors, appointed three dedicated staff members to look after the Italian market and installed almost 250 machines. “Prior to 2013 the Italian market had suffered a great deal, but our performance in Italy improved greatly in that year thanks to some changes in our distribution network and by securing contracts with two major oil companies,” said Rafael.
He continued: “Some of the local competitors also ran into difficulties, as carwash buyers began to switch from their traditional local suppliers to European manufacturers.”
The majority of machines installed in Italy are top of the range which Rafael believes signals Istobal as a ‘high quality supplier.’ This differs somewhat to their business in their home region of Spain where they cover both lower end and upper markets with a similar market share in each. “When price is the main issue some buyers will still opt for local products but it is when the buyer wants a clear differentiation when we have a better chance of getting the orders,” said Rafael.
Whilst not yet available in the Italian market, Istobal’s latest product the FLEX 5 will lend itself perfectly to the Italian carwash industry, largely driven by independent retailers, due to its flexible nature. The machine can initially be installed as a 3-brush wash system, but can be adapted to incorporate five brushes allowing the client to adapt to the needs of the market as and when the time suits.
“The FLEX 5’s capacity to adapt to the volumes of the client will make it without doubt an asset in this particular market. Independents that have greater restrictions in accessing capital, but who really want to adapt to the needs of their particular local markets are without doubt the main focus group for this machine”, explained Rafael.
Sales of the Flex 5 are currently limited to certain markets, but Rafael is optimistic that the product will contribute significantly to Istobal’s future growth in the country.
Istobal has also struck up a number of corporate deals in Italy to install new machines in a selection of ENI, TotalErg and Q8 fuelling stations. Of the 250 machines installed, the majority have been rollover models but Rafael informs us they are seeing a recent increase in orders for jet washes too.
In fact the Avant model of jet wash introduced last summer has contributed significantly to Istobal’s growth and cemented their place as a driver of technology within the industry.
Rafael also highlighted a number of potential areas for growth, he said: “We haven’t been too active in the industrial market and with tunnels, but those markets have suffered particularly in this recession, but we expect growth in the coming years.
He continued: “The whole structure of the market in Italy has changed and we’re convinced that our organisation is in the right position to get a clear leadership in one of the most competitive markets in the world.”
It is evident that the growth experienced by Istobal in Italy is not an isolated case with the company reporting success across a number of markets: “Last year Istobal had a 20% growth in sales turnover thanks largely to our performances in the USA, Spain and France and not forgetting Italy of course, said Rafael.
ISTOBAL will be at Automechanika Frankfurt 2016 from 13-19 September presenting a number of new products including the M’NEX32, a machine that includes more innovative features such as a new disk wheel wash and a cascade of foam and Communications Kiosc, with a virtual personal assistant.
They will also be exhibiting the ‘n’joy experience’ in the jet washes zone, which provides a unique carwash experience with music, fragrance and special lighting.
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