Chapter 8 History of DENSO Sales Middle East and North Africa
2010 The Business Set Up: Incorporation of DSMN
Formed in 2010, the driving force in the establishment of DENSO Sales Middle East and North Africa (DSMN) in the United Arab Emirates is to strengthen its business foundation by providing aftermarket products and service for the Middle East and African Region.
Established strategically in one of the free zones in Dubai, DMSN intentionally set itself up as the go-to-logistics hub in the United Arab Emirates with the view of stabilizing its corporate regime and infrastructure, enhancing its human resource investments and expanding its recognition as global industry leader.
The management team took cognizance of the founding purposes and aspirations on which DMSN is to be established. It was clear from the inception that the company is built to ensure quick and accurate distribution of products and services, collect reliable market information, expand its services network and provide high-quality technical trainings in order to further improve product and services to the customers. They further have conjured up the idea that DMSN will become the forefront base for the African market. The philosophy behind this is to contribute to the regional mobility society as an essential infrastructure with its partners.
2011 Operating as a Start Up & DSMN Office Completion
As one of DMSN’s shareholders, DENSO Singapore LTD was tasked to manage the incorporation of DSMN in Dubai, United Arab Emirates. They prepared, collected and processed all the corporate, commercial, legal and compliance requirements for the business set up in Dubai Free Zone in close coordination with and support of DENSO Headquarters. Shortly after DSMN’s incorporation, it started its business operations followed by the completion of their office in 2011.
To get the company off the ground, gradually they hired talents who will accept orders and provide support to its customers. Among the challenges that DSMN faced at the onset, is how to have the same set up as that of DENSO Singapore, hence, they requested DENSO INTERNATIONAL ASIA PTE. LTD. (DIAS) to send their key personnel to support DSMN Team for every functionality.
2011 Start of Sales
As the team started their sales operations, diesel, car AC and maintenance products were among the first products sold and for about 150CBM worth 3M USD. Admittedly, the operations during the early stages weren’t easy as there were quite significant concerns to be addressed. Building a company in such a scale was met with certain difficulties specifically on import regulations, customer mindsets and behaviors, customer relationship building, understanding company internal system, product knowledge, and pricing structure. In order to address and overcome these challenges and concerns, DMSN provided on the job training to its salespeople and assign people for every country that will invest time to better understand the market, the internal system, their customers, their languages and culture. The outcome was significantly positive.
2012 Opening Ceremony & Chairman Mr. Fukaya Visit
Eventually, as it gradually gained momentum in the MENA market, DSMN office was officially inaugurated in May 2012. The President, Mr. Kato graced the opening ceremony which was attended by DENSO’s directors, executives, associates, invited guests and customers from GCC. It was also in the same year that Chairman Mr. Fukaya visited DSMN’s office.
2013 Introduction of Original Equipment Spare Parts to the Market
At this point in the startup lifecycle, DSMN wanted to accelerate its customer base and satisfy the growing demand of spare parts in the MENA Region. Originally, DSMN was selling after-market products like compressors, evaporators, condensers, spark plugs horn, wiper blades, etc. including climate control products. Then subsequently, the Original Equipment Spare Parts (OES) was added into their business in 2013. At the time, the market has wide acceptance of OES parts due to its high quality and high durability. Among the challenges they have faced however, is that OES customers always expect that DSMN would keep sufficient stocks. After promptly implementing PSI analysis and monthly Key Performance Indicator (KPI) review, the DSMN team was able to resolve the problem. It was also around this year that DSMN started to operate independently from DIAS.
Marking its own footprint in the region, DSMN was able to get its brand to be recognized swiftly in 2014 by setting up a first-class automotive product sales company having basic functions like marketing, service, logistics etc., a strategy well thought of and implemented by DSMN.
2015 Transfer of African Operations from DIAS
In 2015, a decision was reached transferring all African operations excluding South Africa from DIAS. DENSO took a two-prong approach in the operational transfer: First, obtain the knowledge and experience needed to operate in the MENA region; Second, once experience was gained, DSMN will manage the whole African continent. Resultantly, the transfer widens the company’s customer base.
2016 Relocation and Business Expansion
A year later, due to the expansion of its business operations and the need to increase its manpower in order to cater to all its customers, DSMN office was relocated to a bigger space. This move proved to be a sound decision as the company grew not only in size but strength in its corporate brand.
2019 South Africa Sales & Service Operation Transfer to Joint Venture DSSA
By 2019, the transfer of operations from DIAS to South Africa was likewise completed. Even the sales and service operations from DIAS to South Africa were also transferred to joint venture DSSA; DENSO having 51% stake while Smith took 49%, with the intention to expand its business and make DENSO brand known in South Africa.
2020 Establishing the Nairobi, Kenya Branch
In 2020, the Nairobi Branch was established in Kenya as a conduit to establish the DENSO presence in the region. One associate was deployed as Sales Engineer to understand and manage the market, while three associates from DSMN led the team that ensure every requirement was addressed to successfully set up the branch office.
Today, the DSMN team continues to look back on the rich legacy of its perseverance and achievements, building and improving on what already is in place and driving change while reinforcing company’s purpose, goals, culture and core values.