COVER STORY/ FOCUS ON ESSENTIAL: THE CENTRAL STRATEGY OF MONDIAL AND AIWA

Positive vision, hard work, discipline, and a commitment to excellent customer service have enabled Mondial to occupy a significant place in the Brazilian industry and expand beyond its borders.

The day began early at 5:30 AM. We headed to the rowing lanes at USP in São Paulo to meet a prominent Brazilian executive. Giovanni Marins Cardoso, co-founder of Mondial and now part of the MK Group (which owns both Mondial and AIWA), follows this routine nearly every day. He is a rower at Corinthians, and come rain or shine, he starts his day practicing this sport at sunrise. For Cardoso, “rowing is about teamwork.” Many American and European universities incorporate rowing into their curriculum, drawing parallels between the sport and the corporate world. When a team works in sync, with technique, effort, discipline, and focus, the results are positive.

By Igor Lopes

We spent 1 hour and 20 minutes observing his training before he headed to his office, where he keeps a full schedule of meetings from early in the morning until late at night. “The day starts early, and it doesn’t have an end time,” he jokes. In his showroom, with over 460 products from their current catalog strategically displayed, we discussed the company’s origins, its average annual growth rate of 33%, international expansion, and, above all, its positive outlook on Brazil and the market.

What inspired you to start Mondial? How did it all begin?

Giovanni Marins Cardoso: I was born in Palmas, a small city in Paraná. I always studied in public schools in the countryside. My mother was a teacher, which motivated me to study hard, and my father, a businessman, instilled in me a sense of responsibility and the importance of work. From the age of ten, I worked in the cash register and purchasing department of his business, learning a lot. After finishing high school, I moved to Curitiba for my pre-university course and later got accepted into Electrical Engineering programs in São Paulo and Florianópolis. I chose São Paulo, a metropolis I was drawn to even before seeing it in person. During my third year at university, I applied for an internship with a major German multinational company. Out of over 500 applicants for 16 spots, I got in and was initially placed in marketing and later moved to sales. Things progressed, and I worked for an American company that was eventually bought by national and international groups, and later by a French company that led the European market for small appliances.

Multinationals viewed Brazil differently. They mainly targeted the upper class, but I realized that Brazil offered opportunities across all classes, A, B, C, D. So, I decided to start Mondial. I invited Alberto Baggiani, my partner to this day, to join me. He had expertise in administration and finance. Together, we built a company with strong management foundations.

Mondial has grown rapidly. In the first edition of Eletrolar Show, your stand was 9 sqm. In 2024, it will be 900 sqm. Does this reflect the company’s business?

GMC: We started with just one product, a 30cm fan, made in a 1,000 sqm facility. From the beginning, we had a vision that there were opportunities in Brazil for anyone who worked focused. We grew by launching products and expanding our infrastructure. Today, we have over 460 products in our portfolio.

I believe that any Brazilian who looks will find a Mondial product in their home.

GMC: In our campaign with our ambassador Rodrigo Hilbert, we highlighted this point: “You should have a Mondial at home, go ahead and look.” On average, there are four Mondial products in every Brazilian home. We’ve made significant investments in recent years. Our market share is growing. This year, we’ll generate more than BRL 6.2 billion in revenue. We’re entering new segments and will reach BRL 8, 9, 10 billion quickly. We’re competitive and we do everything with planning, organization, and strategy.

To maintain market share, one must invest, grow, and keep an eye on the customer. How is your strategy drawn?

GMC: It’s about working every day. Market share is the result of hard work. You need structure, investment, and a clear vision of the path you want to take. Here, we run the company with the mentality of founders. Our focus is always on delivering the best product and service to the consumer, whether through e-commerce, physical stores, hypermarkets, or wholesale. We love factories and people. We always say: “less foam, more essence.” A retailer or consumer who buys one of our products will be very satisfied.

How much was invested last year?

GMC: Just in our Bahia factory, we invested over BRL 200 million in machines, molds, equipment, and expansion. The company’s industrial capacity is growing by 76% in Q4 of 2024. This is fantastic! We’re entering 2025 strong. We’ve already hired 1,700 new employees this year, increasing our team from 5,500 to 7,200 in less than 12 months. It’s a big leap! In two years, we’ve hired more than 2,100 people. The company is thriving, stable, and the market is good. We’re going to grow well, and that progress is very rewarding.

How is the relationship with the community where the Mondial factory is in Bahia?

GMC: When we went to Bahia, we chose a small town to adopt. We are in Conceição do Jacuípe, but many are already calling it “Mondialand.” We chose a place where the people are welcoming, and the workforce is very committed. We’ve grown, and today we have a factory and distribution center with 232,000 sqm of built area and 4,900 direct employees, with a projection of 35,000 indirect jobs. The town has about 7,500 active residents, so more than 60% of them work at the company. For us, it’s a great pride, but also a huge responsibility to the region. We’ve invested in the town, and we’re an apolitical company, just doing our job for the municipality. We’ve helped refurbish schools, invested in daycare centers, and invested around R$ 200 million in the region. The local economy is thriving, and the town has grown. We’ve brought development to the interior, which helps keep employees in their hometowns. We’re also focused on social issues and do our part to improve the region.

Does the investment include a lot of technology, like AI and IoT, to make the factories more productive and provide employees with more resources? How does the MK Group approach this?

GMC: Today, we have more than 180 injection molding machines that work 24 hours a day, 30 days a month, and most have robotic accessories. This has greatly improved the efficiency of the factory. Many pad printing operations are now done by robots. Small appliances require many components, so they still need to be assembled manually, which creates jobs. At the headquarters, we’ve created an innovation hub to integrate Artificial Intelligence (AI) in a structured way. We hired a company that supports us. For example, we provide product briefings to the design team and to AI. Then we analyze the ideas from both sides and choose the best development paths.

“Just in the Bahia factory, we hired contractors and invested over BRL 200 million in machines, molds, equipment, and expansion. The company’s industrial capacity is growing by 76% in this Q4 of 2024.”

How does the Group approach after-sales service?

GMC: After-sales starts with engineering, which develops high-quality products. The first challenge of after-sales is to create products that don’t need any after-sales actions. But even so, we have over eight million components in stock to provide technical support. Need a carafe for a coffee maker from three years ago? We have it in stock. We obsess over providing high-quality service. Beyond the brain, our heart is also in the business. For instance, in the MESC awards, we received the highest rating ever given in the “mystery shopper” survey, where researchers call companies pretending to be customers. Our back-office team gave all the solutions. They’d ask: “How much will it cost to use my Air Fryer model X?” Our team would check the energy cost in the consumer’s region and answer. When the mystery shopper simulated bad reception for 10 seconds due to an imaginary tunnel, in most cases, 80% of attendants would hang up. In our case, the attendant would continue waiting, asking, “Did you get out of the tunnel?” We have a customer service DNA, and we love it.

Do you think a lot of training is needed for that?

GMC: Yes! Training is essential, but it’s not just about training. It’s the company’s essence, which is reflected in how the employees act. It’s the culture of a company that loves to serve. For us, this is natural. We have a culture of good service. There’s a lot of essence in this company.

Let’s talk about AIWA. How has the experience of licensing the brand been?

GMC: Internationally, Japanese companies are reducing their TV production. New competitors have entered the market, and they’ve been competitive, reducing the share of Japanese companies. In Brazil, Sony decided to stop. Essentially, they chose us to continue their legacy of high performance. We bought and paid for the factory in Manaus even before visiting it, because we knew it was a cutting-edge industry with a Japanese DNA and culture.

Did you buy it as a turnkey operation?

GMC: Yes, with everything in place. The factory is excellent, but the crown jewel is our employees. We hired all 222 employees who already worked at this plant, and today we have over 1,400. We’ll be over 1,600 in a few days. It’s more responsibility, but it’s very gratifying. We’re here to progress. With the purchase of this factory and the licensing of the AIWA brand, we’ve entered a new territory, entertainment, with high-fidelity TVs and audio. We have the Mondial brand, which has a line of kitchen, home, ventilation, and personal care products. And AIWA has a lot of credibility in electronics. Many consumers over 35 years old have owned an AIWA and have fond memories of it.

That was my first discman.

GMC: Look at that, and you remember! It was good, wasn’t it? So, since we bought the factory that belonged to Sony, nothing better than having a brand that used to be Sony. Everyone has a lot of affection for AIWA, so we licensed the brand. We’re going to compete, especially with the big multinationals. And that’s good! We like to compete.

What is the global strategy of the MK Group, which has been growing beyond Brazilian borders?

GMC: We have a Mondial presence in Paraguay, Uruguay, Argentina, Bolivia, Guatemala, and even the United States. We’re doing well, step by step. In the United States, initially, we entered with “Made in Brazil” products to operate in the world’s largest market and bring knowledge from there to our operations in Brazil.

What are the next steps?

GMC: We’ve already purchased new areas in Bahia and are expanding Manaus as well. Today, we have more than 700,000 square meters of total area and are scaling up our business. Now, in addition to portables, ventilation, and personal care, we’re entering electronics and white goods more heavily, working with both the Mondial and AIWA brands. Our strategy is to be attentive to all opportunities.

Now, let’s “push the buttons” and scale the possibilities. In portables, we started from scratch and reached a 40% market share. In electronics, with TVs, we have 6% and we’re going to work to reach 10% or 12% share next year. In electronics, with Mondial brand speakers, we have a 28% share. That’s what I call a founder’s mentality that sees the entire structure, takes care of the cash flow, the end customer, the products, sales, cost control, after-sales, the entire 360° of the company. This kind of mentality makes the company grow well and positively.

What advice do you give to entrepreneurs who want to chart a successful path in Brazil, even with the country’s problems?

GMC: First, you need to have a positive vision and see the real opportunities in Brazil and believe in it very much:

• A country with 214 million inhabitants, a large market.
  • A single language.

• 79 million households with electricity.
  • Low saturation index of products.

• Positive demographic bonus until 2030.
  • Vast reserves of mineral commodities.

• Potential for expanding arable land (breadbasket of the world).
  • 78% of renewable energy from wind, light, and water.

• Rapid modernization of distribution and sales channels.

Second, it’s important to define objectives, research markets, and have a business plan.

And finally, focus on quality products with the best cost-benefit ratio and sell.

Source: Eletrolar News ed. 164