Interview with Georg Gayer

Just what has made KAISER + KRAFT so successful?
(1999)

Question: Just what has made KAISER + KRAFT so successful?

Gayer: A whole array of factors. We have long been a company with an international outlook. Since the late 1960s and the early 1970s we have been active abroad and we have been building up our international know-how. Our international character is a very important asset. Firstly, apart from helping to spread our knowledge base, it makes us independent of economic fluctuations to a very large extent. Secondly, we have always given priority to maximising the benefits of economy of scale - by which I mean: central procurement, central funding etc. - and that is one reason why our efficiency and profitability are so high. Nevertheless, we have never optimised economy of scale effects to the detriment of market proximity. As much centralisation as necessary, as much market proximity as possible ... that is our philosophy. This organisational principle of subsidiarity is another success factor as it permits us to manage our subsidiaries without breathing down their necks. On the contrary, we encourage the spirit of enterprise at grass roots level. And last but not least we have an unbeatable service package. The combination of our products and services is simply unique.

Question: But does not your very internationalism act as an obstacle to economies of scale? Surely you cannot treat all markets as though they were the same.

Gayer: Nor would we want to! Each country - or rather: each region - has its own product requirements. Just think of all the different standards and of all the customers with different cultural roots. We understand these differing peculiarities and specific product requirements. Thanks to our different companies covering perfectly the requirements in a given region, we are at home anywhere in the world. But we do not just know the differences; we also know the similarities, the common denominators. This allows us to organise a core product range on a centralised basis and supplement the choice by means of region specific selections. Furthermore, our overall range of goods is tailored to the local market. In this way, we achieve an optimum market proximity without having to give up the advantages of centralisation. Of course this demands of us the highest performance in terms of product range and logistics - which is why, to bundle and implement all these different skills, we manage our companies in three different business divisions: KAISER + KRAFT Europa, Topdeq and K + K America. This enables us to achieve the greatest possible proximity to the regions and to the specific markets whilst maintaining high performance efficiency.

Question: What are the advantages you offer as a mail order company to your customers?

Gayer: Our companies provide more than 20,000 articles. There are hundreds of suppliers behind this product range. We cut the ordering process short and make it easier for our customers to obtain the products they need: without calling for brochures, without visiting retail stores and without having meetings with commercial travellers. Our customers can find what they wish in our catalogues. We also minimise the risks attached with a purchase because we offer the right to return the goods and our guarantees are customer friendly. And finally: We deliver promptly due to stock in our warehouses and distribution centres.

Question: How do you view the strengths of TAKKT AG compared with the competition?

Gayer: Our strength lies in the fact that our names are well-known. Our customers know that we are professional and trustworthy business people - and not by chance either. From a service point of view we are the best, something our customers value highly, and the 1.6 million customer base we manage is proof of this. In fact, every single order is evidence of our capabilities. That is why our recognition level amongst production managers, workshop managers and buyers is above 70%. They realise that we deliver business equipment solutions and that we, with our products and services, can solve the specific problems that they are experiencing at work. Our high reputation and our high recognition level we enjoy with these experts is a company asset that should never be underestimated.

Question: What image do you think your company has with the customers?

Gayer: KAISER + KRAFT is known for having a competent and high quality product range. We have a reputation in the market for being trustworthy and customer friendly. These factors are important to overcome impediments many people have in dealing with mail order companies. Topdeq operates from the unique - almost patented - position of: "ordered today, delivered tomorrow". No-one else can match that. Topdeq is also the up-to-date design oriented catalogue. Though the outstanding image of our brands - to name but two here - must naturally be maintained, we hope to use the new company to demonstrate our joint strengths. For me personally, that will mean improving our profile as a Group. We are international, we have the best range of products in the world and we operate logistic systems that no other company in the trade can aspire to. In other words, the customer can order the best products in the world from us direct and does not have to wait six weeks until the his order finally arrives from Japan or the USA by sea. TAKKT will come to stand for speed, flexibility and reliability as well as for a uniquely wide range of international products.

Question: Talking about speed, when do you see e-commerce playing a tangible role?

Gayer: E-commerce is already playing a major role here in Germany. Of course we have all heard the common joke that nobody has ever earned a penny from the Internet boom apart from the people who produce the necessary hardware and software. Seen from our perspective, however, such objections simply miss the point. As a business, we have been around for some time now and we were always the first to respond positively to any innovation. Take our printed catalogue for capital goods. Even that was a new medium when we introduced it in 1945 and, at the time, many people laughed at us. But in our experience - and because we are good traders - we know that one should never be too hasty with a final assessment. The Internet and e-commerce are opening up totally new avenues: they will fundamentally change the whole market. Using the Internet, we will be able to connect up to our customers' merchandise information systems, for example. With our catalogue already in the Internet, we are well equipped for new developments even if it does take a while before they come- virtual company mergers as a result of networked merchandise information systems. But come they will. The customers will have real-time data at their disposal: all they have to do is call up the product on their computers, order it and monitor the leadtime, if they want to. They can have a better look at alternatives, supplementary fittings or completely other products than they would have using a printed catalogue. This decreases customers´ costs. Now that is what I call value added! Once we have set up an internal connection to the customers' company, we will have reached a further milestone in the evolution of the mail order business, an evolution that we are paving precisely because e-commerce is already playing a vital role at our company.

Contacts:

Georg Gayer
Phone +49 (0)7 11.50 01-239