Annual Report 2010 - Frauenthal Holding AG
Annual Report 2010 - Frauenthal Holding AG
Annual Report 2010 - Frauenthal Holding AG
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44 <strong>Annual</strong> <strong>Report</strong> <strong>2010</strong><br />
Strength through diversity<br />
Wholesale Plumbing Supplies division (Sht group)<br />
demand on the wholesale plumbing supplies market<br />
was subdued in <strong>2010</strong>. how did Sht manage to<br />
post growth of 3.5 % in such a difficult environment?<br />
Moser1 : SHT is extremely well placed – the extensive service<br />
and sales network, broad product range, high-quality<br />
logistics services and the innovative mySHT online portal<br />
give us a competitive edge – and help us to gain market<br />
share. The main problem facing the market is the drop in<br />
contract business over the past three years. Public sector<br />
orders have dried up and commercial construction is not<br />
expected to pick up again until 2012. And as the market<br />
contracts, some of our competitors are doing whatever<br />
it takes to generate sales. On the whole we are not interested<br />
in confronting those companies head-on. We are<br />
increasingly focusing on the renovation business – especially<br />
the private segment which expanded sharply last<br />
year. The heating business helped to shore up demand,<br />
recording growth of more than 3 % last year, which reflects<br />
strong public awareness of environmental issues.<br />
Sht is streets ahead of the competition on the austrian<br />
market. how will you continue to generate additional<br />
growth?<br />
Pollak2 : Our new Innsbruck site is helping us to gain<br />
ground in western Austria. In the east of country, the<br />
priority is defending our dominant position. We have<br />
already stretched our service and sales network to the<br />
limits. So now our focus will shift to adapting our ser-<br />
„…‚tailor-made‘,not ‚one size fits all‘“<br />
vices to individual customer requirements. Our market<br />
research shows that different customers have different<br />
service needs, so our guiding principle should be “tailor<br />
made”, not “one size fits all”. We will also be adding<br />
new functions to the mySHT tool. There is also room<br />
for improvement in telephone sales, and our aim is to<br />
be there for our customers whenever they need us. Our<br />
wide-ranging product portfolio is constantly generating<br />
growth opportunities, including adjustable residential<br />
ventilation and alternative energy sources. A well established<br />
own-brand range is the perfect complement to<br />
the branded products we offer.<br />
1) Chairman of the Executive Board of SHT Haustechnik <strong>AG</strong> and member of the <strong>Frauenthal</strong> <strong>AG</strong> Executive Board<br />
2) Member of the Executive Board of SHT Haustechnik <strong>AG</strong><br />
3) Member of the Executive Board of SHT Haustechnik <strong>AG</strong><br />
high-performance logistics is a decisive competitive<br />
factor, and an area where Sht has already invested<br />
heavily. is there still room for further improvement?<br />
Knezek3 : Our logistics performance indicators are now at<br />
exceptional levels. Error rates are down to less than 0.25 %<br />
and the early-morning delivery service we offer in some areas<br />
is unrivalled. But advances in modern technology mean that<br />
there is always scope for improvements. We want to set the<br />
industry benchmark in terms of availability, reliability and<br />
efficiency at all stages of the logistics process.<br />
how will customer needs change and how can Sht<br />
extend its market leadership in the long run?<br />
Pollak: We are witnessing lots of changes in the alternative<br />
energy and energy efficiency segments. We believe that<br />
building regulations will promote the use of solar cells and<br />
photovoltaic arrays, and other measures aimed at cutting<br />
„We are responding by broadening our product<br />
range even further and giving customers<br />
the benefit of our expertise and first-rate<br />
service.“<br />
energy consumption. Styria is a pioneer in this regard. We<br />
are responding by broadening our product range even further<br />
and giving customers the benefit of our expertise and firstrate<br />
service. The plumbing product portfolio is expanding all<br />
the time, but there is a danger that customers will find the<br />
range of different products overwhelming. In addition to the<br />
excellent service provided in our Bäderparadies showrooms,<br />
we will also be trying to give the customers more support<br />
when it comes to purchase decisions by integrating additional<br />
functions into the mySHT platform.<br />
does Sht see any potential for growth outside the<br />
austrian market?<br />
Moser: We are well placed to branch out into neighbouring<br />
countries, but to do that we will have to acquire established<br />
sales and distribution structures. We are looking in detail at<br />
all options for acquisitions, but the financial conditions have<br />
to be just right.
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