Interview with Georg Gayer

on the TAKKT AG internationalisation strategy
(March 2003)

Excerpts from an interview with Georg Gayer on the TAKKT AG internationalisation strategy, focusing on the start-up in Japan.

The complete interview can be found in the Annual Report 2002, page 55 ff.

The recent years have seen the TAKKT Group grow dynamically through numerous new business start-ups and acquisitions.  Georg Gayer, Chairman of the Management Board of TAKKT AG, outlines the Group’s internationalisation strategy.

Question:  There are different ways of making inroads into new foreign markets and expanding a company.  What is the strategy of the TAKKT Group?

Gayer:  We want to strengthen and expand our company’s core business on the basis of a consistent internationalisation and growth strategy.  In more specific terms, this means that we expand into selected product segments and markets of the B2B mail order sector which represent an appropriate complement or addition to the portfolio of the TAKKT Group.  Our internationalisation strategy rests on two foundations; on the one hand, we make acquisitions, on the other hand, we establish new companies to expand the business activities of existing brands to new markets. The resulting economies of scale allow us to cut our costs significantly.

[…]

Other advantages, which apply […] to all new start-ups, include new customers and, hence, additional turnover for the TAKKT Group, better purchasing conditions due to increased volumes, optimised cost structures and greater clout in the market.

[…]

Question:  In January 2003, TAKKT made inroads into a new continent by mailing the first KAISER + KRAFT catalogues in Japan.  What do you expect from this step to the Far East?

Gayer:  KAISER + KRAFT EUROPA’s expansion to Japan exemplifies our strategy of transferring our systems business to promising new regions.  The TAKKT Group has an almost nation-wide presence in the European and North American plant and warehouse equipment markets, so Asia was the next logical step.  In the medium term, we intend to open up the Asian region for the TAKKT Group.  After intensive studies, we chose Japan because it has the best infrastructure and the biggest potential for successful mail-order activities. For us, our expansion to the Japanese market is also a learning process.
The first catalogue, which was mailed by KAISER + KRAFT Japan in early 2003, is confined to basic products.  Following a test phase, we will analyse customers’ response and gradually expand and modify the product range and also increase catalogue circulation in line with the economic situation. As long as the economy remains weak, we will continue to focus on our core competencies. In the case of KAISER + KRAFT Japan, this means “quality before quantity”. We will then decide on our further expansion in Asia.

Question:  TAKKT’s expansion has so far been characterised by high speed.  What will the coming years look like?

Gayer:  We will continue to consolidate and optimise our existing divisions in order to safeguard our profitability - without giving up our growth strategy. The TAKKT Group will continue to strengthen its portfolio by expanding its regional and international market presence in a selective manner. Whenever opportunities for interesting acquisitions arise, we will review them and make use of them. At present, however, we attach priority to the organic growth of all divisions; the individual companies are now increasingly focusing on penetrating their markets.