When the home market is full up

Hagebau of Soltau, Germany, sees internationalisation as the only possible way to generate even greater growth in the future. “The market in Germany is full to capacity,” is the explanation given for the cooperative organisation’s international strategy by Heribert Gondert, Hagebau’s managing director and spokesman. In particular the voluntary group is setting its sights on countries that are closest to Germany in both language and culture. Which means a concentration on Austria, Switzerland and Luxembourg. “We don’t want simply to have a presence in as many countries as possible, but rather to work on covering these three markets pervasively at the moment,” in the emphatic words of the managing director. It is the voluntary group’s aim to offer the same spectrum of products and services abroad as in Germany. This means that the focus is on all the different types of distribution in each country, though with the trade side being stepped up first, then the retail side. According to Gondert, the guarantee for the group’s success abroad lies in the fact that potential international members become partners of Hagebau Soltau without any need to set up a separate organisation in each respective country. “This approach brings great synergistic effects. We have learnt that in Austria,” says the managing director, who is also responsible for Hagebau Austria. He points to the acquisition of the services of Zeus for the Austrian Hagebaumarkt stores as one example from which all those involved have benefited tremendously. Moreover, since the beginning of 2012 a process of central invoicing through the Soltau head office has been available for the trade channel as well. As Gondert says, “That brings new momentum to the Hagebau Group, enabling us to meet future challenges more offensively through our international orientation and to create more effective processes.” The first step in implementing the group’s international strategy is a concentration on procurement. “We work towards the goal of bringing the rate of purchasing through the Soltau central office into line with the high level in Germany,” explains the MD. The second step sees the cooperative set its sights on distribution in the new markets. As Gondert well knows, a simple 1:1 transfer of services from Germany to the neighbouring countries is not possible in this area: as he explains, “All measures must be targeted precisely at the market concerned and at its particular requirements.” Hagebau has already…