|
|
|
| . |
|
|
CEO Peter Graf says the company has chosen to focus on the lower end of the market since most of its customers are over 35-years old and belong to the lower and middle-income economic brackets. "We are somewhat in a comfortable situation as most of our competitors are focusing on luxury fashion," he notes. "Nobody likes working in this end of the market because most people think that this business is not fun." The company believes that their approach is wise, considering that the local population is getting older. By 2005 -- according to official forecasts -- the number of people above 35 years old will outnumber the number of people under 35. Graf also explains the rationale behind standard merchandising. The company has noticed that the typical customer either does not enjoy shopping or has no time to shop. In fact, the time people spend shopping has dropped by 50 percent in the last ten years. "In order to address this problem, the layout in our stores is very simple. All stores look the same, and items are organized by sizes. So the customer just comes, takes, buys, and goes. We want to help the customer make fast and easy decisions," Graf explains. The 1980s marked a turning point for Voegele as it started to expand abroad. Germany was the first target and Austria, starting in 1994, the next step. That was followed by the Ntherlands and Belgium in 1999. "Germany was easy because it was close to Switzerland and people have the same mentality. But when we started in Austria, I remember that everyone in the industry told us it would be very difficult to do business in the country. Also, the company we took over was a young fashion brand and, when it saw our assortment, they said we could never sell in Austria," Graf recalls. Currently, Voegele generates about 41 percent of its business in Germany and 20 percent Austria. In the two countries, the company took youth-oriented brands into the fold of the Voegele family-type merchandise. "When we are looking for chains, we focus on location and size rather than choosing prime locations. We prefer shopping centers in the suburbs rather than the high streets," Graf explains. And, in an attempt to attract even more customers, Voegele has distributed around 11 million catalogues. Meanwhile, the retailer has completed another step to consolidating its position in Europe through the acquisition of the Dutch retail group P&C. The move gives the company a network of 106 shops in the country. The acquisition is part of plans to make Voegele a leading fashion retailer in Europe. Currently, Voegele has nearly 700 stores under its management and seeks more acquisitions to expand its network across Europe. It aims to open 100 new stores every year in its existing markets, allowing the company to reach more than two-thirds of its intended customers. Voegele has set its sights on Britain, Scandinavia, and Eastern Europe next, where liberalization in the retail sector is expected to encourage consumer spending.
|
Ricola www.ricola.ch Hilti www.hilti.co.jp  |
Under CEO Peter Graf, Voegele has successfully sharpened its focus on the budget-minded customer.