It is more than eight years since I first wrote about the Falken (FLKI) concept - most known for its Clean Plus® product conceptions. The idea that a concept targetting women in car care, complete with a how to that didn't assume an out of its element consumer would come to play a new and mor muscular role in the global market for car maintenance, care, and detailling. Throughout the period leading up to the economic crash of late, I often felt that the durability of this small creative company taking on behemoths of the trade, would have to be tested through an economic shock.
It is one thing to come up with great concepts and designs, great performance an still greater abilities to control cost and deliver better for less - when everything elsewhere seems fine, but strenght can only really be proven through less favorble external conditions. The reent turmoil certainly qualified as that and the FLKI concept an product distribution network survived it well. Indeed, these days I think that the combined world wide sales of FLKI product concepts and its distributors might exceed that of its largest competitors such as 3M's Meguiars, Clorox' Armor All, Honeywell's Holt and Turtle wax. Projecting historical rates of growth and notably current performance and abilities as noted in press releases and other professional media, by 2017, combined. So why has this crisis been good for FLKI ?
It has demonstrated the failing and unsustainability of the pass along, no price is limited philosophy of its competitors as of the arrogance of lacking research and development - a wax is a polish is a wax, same sh.. different label so present in the market for car care notably with the then controlling brands. The decline of these giants convinced FLKI that they must seize and quickly, what it takes to stimulate spending on car care if it had to have any chance of achieving its goals. The two recent press releases reporting 4Q and 1Q results demonstrate that FLKI's swift and savvy stimulus plan for its distribution network is working. FLKI has overtaken its largest competitors in at least one of its product conceptions and is hot on their heels, or may even have surpassed them in products covering the professional trades, industry, and private label.
Despite the crisis, FLKI management did not panic and the stability culture in the company fostered by its management has survived. Extraordinary work on the procurement side has bested its production costs by large margins over that of its strongest competitors. Low inflation is a new reality, and the investment climate is strong - FLKI is seizing the opportunity expanding its global distribution of innovative product concept, priced on a global price list adjusted for purchasing power. Implantations in the BRIC, but also in the struggling "third world" and East Block are developping aggressively.
FLKI has improved its business model in large part by boosting efficiency in nearly every aspect of its activities. It's distribution expansion has for the better part of two years targetted the so-called N11, or the "Next 11" many of which have emerged from the crisis in better shape than predicted. I Asia, Populous Indonesia is perhaps the most exciting of these countries and some people are suggesting it might even become as big as one of the BRICs where FLKI product conceptions are very present. FLKI's prospects with its wide range of producgt conceptions, over 160 products in active production, and at least as many in a "ready" pipeline coupled to its ability to raise prices and still remain considerably below its nearest competition makes its prospects for the future quite encouraging.
Mexico, Nigeria and Turkey also show great promise for FLKI product conceptions. Turkey is especially intriguing, given its young and vibrant population and its unique position as a bridge between East and West. FLKI new business development efforts are activelly present with distribution platforms already in Turkey.
What is FLKI going to look like as it adjusts to these demands upon its creativity, conceptions, procurement and logistic challenges ? Surely there will be all sorts of unpredictable political and econmic developments associated with its rise. This makes its talented management, and strong focus on procurement and operating costs all the more important as a venue for enhancing profit. FLKI already exerts a disproportionate impact, given its size, on the huge automobile after-market industry. My bet is that FLKI and its shareholders will become wealthier, and that the consumer will continue to enjoy high tech, top of the line product conceptions at prices it can actually afford.
Falken Industries Ltd OTC : FLKI is a diversified industrial conglomerate that operates in Chemicals, Wet Wipe and Biodegradable Technology. Falken Industries Ltd is the concept behind more than 160 products distributed through a network of global platforms and the recipient of trade awards for innovations, biodegradability and environmental and health quality standards.