Austria’s largest grouping

18.05.2007

Austria is the only foreign country so far where Hagebau has any involvement. There the cooperative is growing at a double-digit rate, faster than in Germany

In 1999 Hagebau’s centrally-regulated turnover in Austria grew by 30.8 per cent to 225 mio euro (ATS 3.1 bn). The 29 voluntary members of Hagebau increased their external sales to around 850 mio euro (ATS 11.7 bn).
Helmut Kus, Managing Director of Hagebau Austria
DIY in Europe discussed with Helmut Kus, Managing Director of Hagebau Austria, the concern’s basic concept and the aims of the coop-erative in this alpine republic.
DIY in Europe: What does Hagebau’s future in Austria look like?
Helmut Kus: Our concept is very successful and com-petitive. As a result we have already become the largest grouping in the marketplace in Austria after just five years. We are positioning ourselves above all in areas where the business structure is small-scale, as a neighbourhood provider and “on-the-spot DIY store and builders’ merchant”.
Our medium-term aim is to become market leader in the building materials sector and number among the Top Three in the DIY store sector by the year 2003. So far Hagebau Austria has concentrated primarily on building up the brand name and attracting new members in Austria. However, we are also thinking of internationally strategic alliances with other organisations and countries as well as expansion into the east of Europe.
DIY in Europe: What differences do you find between the German and Austrian DIY markets?
Helmut Kus: Austria has the greatest density of stores in the DIY and builders’ merchants sector of any country in Europe. As a result, structural adjustments will be coming in the next few years. For individual Hagebau members, therefore, their efficiency within the organisation is of great importance.
DIY in Europe: How do you see the relationship between members and head office?
Helmut Kus: Our business concept emphasises the independence and individual identity of our members. They have been established in their marketplace for many years and are therefore well known in their region. It is our aim to sustain this feeling of familiarity and good customer relations and to reinforce them by means of the Hagebau name.
Our members and associates have the possibility to carry other products in addition to the core product mix and to tap into the DIY store assortment. In this way distinctive regional features can be highlighted and taken into consideration. Individual Hagebau stores can take advantage of a shared corporate identity and joint advertising image. What is more, our planning department offers plans tailored to the regional conditions and competitive position of each outlet. In addition a variety of operating systems or product mixes is worked out in detail for each member and these contribute to the design of the location. Our members consequently profit from the cooperative in five areas in particular: 1. Common marketing and joint advertising image, 2. Central purchasing, 3. Best credit standing of Hagebau in Austria, 4. Support in planning and shopfitting locations and 5. Joint staff training.
The Hagebau stores are positioned as neighbourhood suppliers.
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