Finland


	The Japan Times WORLD EYE REPORTS FINLAND

©THE JAPAN TIMES	Sunday, March 10, 2002

A history of trust and profitability

Kaukomarkkinat is the largest and most diversified Finnish trading house operating internationally. Present in over 14 countries around the world, it is also one of the leading suppliers of sporting goods, watches, and electronics in Finland. Now in its 54th year of operation, Kaukomarkkinat has divided its business into three separate sectors: the international technical trade, the import and marketing of branded goods, and the Tahti Optikko chain of eyeglass stores. The company's long partnership with Japanese companies for the marketing of their products in Finland is a source of particular pride for its chief.

Its Finnish base benefits the company's core areas of expertise -- including the forestry industry, plastics, packaging, foodstuffs, and the raw materials needed for their manufacture. The acquisition of Telko, one of Finland's leading specialists in the technical trade, rounds out the company's portfolio of high quality raw materials, accessories, machine and equipment companies.
Kaukomarkkinat President and CEO Hannu Närhi is proud of his firm's vital Japanese connection.

Across the border in Russia, where it has been operating for over 50 years, Kaukomarkkinat is also benefiting greatly from the opening and growth of this potentially lucrative market.

In addition to their industrial interests, Kaukomarkkinat is also the oldest importer of Japanese goods into Finland, part of an alliance with Citizen watches. "This is an incredible success for Kaukomarkkinat, and something that I am particularly proud of," said Hannu Närhi, president of Kaukomarkkinat. "Business simply isn't done this way anymore, and we are one of the only companies in the world to still have relationships such as this. It is a testament to how well we have managed Kaukomarrkinnat that our record is better than anyone else's, considering our market share."

"Panasonic also is a proud partner of Kaukomarkkinat, and today we have a relationship extending back nearly 30 years." Närhi continued, again stressing the length of time and commitment that exists between the Espoo-based company and many Japanese export driven industries.

Developing into a global competitor means looking for new avenues for success, and Kaukomarkkinat believes it has found the way. While the branded goods business will continue in the Nordic markets, the company is firmly entrenching itself as a partner in a variety of knowledge-based industries. The shift has had a profound effect on the company, transforming them into a materials and solutions provider for industries ranging from construction to plastics. "Our own company has gone from being a technology importer to a knowledge and technology exporter," explained the company president.

"It is critical to have a solid history," he said. "In 1952 we started doing business with mainland China, and now we have offices in Bejing, Shanghai, and Hong Kong. This history has put us in closer contact and provided us with a better knowledge base for the region than most other European companies."

With sales growth of 23 percent in the first half of 2001, along with established and growing businesses in China, Russia, Poland, Eastern and Central Europe, the Baltics, and Sweden, Kaukomarkkinat looks ahead with optimism. "Our goal has always been to seek organic growth, and develop our business as the market evolves to support it," said Närhi. "We plan to continue this strategy while seeking new and profitable avenues to take advantage of our core competencies and expertise.

"We are changing from a paper exporter and a branded goods importer to a company that really utilizes staff and suppliers' knowledge to combine them into an attractive package," he concluded. "This means we need to encourage the constant pursuit of new knowledge among our staff. We are involved in many areas, but we mainly try to focus in areas where we foresee the possibility of high growth."

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