Regional Head of Kumho

Mr. Daniel Lee is generating Kumho Turkey operation since 2002. He is living in İstanbul city since August 2006.

1- Financial crisis is floating around all over the world. Do you see any green light yet in the tunnel or do we have a long time to see that light?
 Turkey had financial crisis before, but this time the crisis is global that was different from the previous ones. Also this Financial Crisis is different than any-Crisis the world has ever experienced. Nobody including US, European Union, Japan knows if we have yet reached the bottom or not. They don’t expect that it will be recovered within the year 2009 at least. So it is better to have B and C Plan for the worst case scenario.
   2 - What would be your priorities during 2009; less stock? Cutting the general expenses? Price cuts?  Or something difference..
 Of course the priority has to be moving ahead. The stock has to move. The money has to flow. The sale has to go on. The tire has to run. So every possible action has to be taken. To make sales go on, the pricing has to be flexible. If sub-dealer cannot sell, the collection cannot be expected too. So in this kind of situation, we have to be flexible in every way. 
  3 - Turkish market is not so large! Against that almost all tire brands in the world exists in our local market..How do you see this? Is everybody earning?
 Basically turkey tire market has over supply problem. The local factories produce more than 2 times of domestic demand. And there are many imported brands. This over supply and over competition brings price competition. No way. It seems quite negative, but I don’t see it negative way only. Through this competition, they try their best to get costumers’ favour, and thus develop the product and marketing capacity. So the customer gets the benefit. For example, Kumho and Marshal Brand tires are quite strong in UHP category, and with its unique product such as smoke tires, it specializes in drifting motorsport. It gets quite good market share in tuning sector, and now also picking up in Runflat tire product group. So such competition brings competitiveness, and specialization, and customers have better choice.
 4 - At the spot generally pricing of a tire is the most important factor! What is your opinion on this issue?
As I mentioned in question 2, to make things going on, flexibility in pricing is for sure important, and crucial, as far as it works. I am afraid the situation when the economy is freezes even to the point that flexible pricing doesn’t work. That situation will be the time of restructuring, which goes to the optimum level where the demand and supply meets in a certain point. After that the overall economy will go on again. And also at that point of time, those who create and provide exceptional value with proper level of price, or those who can provide same value with low price which can come from low cost and high efficiency, can survive.
5 - Tire sector is one of the very competitive one among all sectors! Kumho brand is very successful; would you tell us the main success factors of your management?
Personally I think the success in tire sector can come from product development which Kumho Brand is quite successful. For example Kumho Brand continuously develop such new product like smoke tire, aroma tire that no other tire manufacture has ever developed, as well as racing tire, and runflat tire which promises future position in the sector. Another success factor is quite strategic sales which also come from creative and experienced people and the cooperative relationship between them. Some say business can be carried by system and organization, but I am one of those who believe that human resource is the main factor for success, and the last solution in time of crisis.