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PLENTY NEW IN <strong>THE</strong> EAST<br />
HOW DUROPAL IS FARING WELL IN <strong>THE</strong> VOLATILE CHINESE MARKET<br />
“When i first visited China over<br />
20 years ago, i could not imagine<br />
ever successfully conducting business<br />
there”, Volker Lange says of<br />
his first impressions. a great deal<br />
has happened since then. the<br />
rapid economic and social developments<br />
in China have completely<br />
altered the face of the country and<br />
the market. today, China is one of<br />
the most volatile and contrasting<br />
business locations in the world.<br />
and in the middle of it are Volker<br />
Lange and his team of the Pfleiderer<br />
asia-Pacific representative<br />
office.<br />
one of the most important tasks<br />
of thomas Erhardt, Jessie Bi, Nick<br />
Wang and office Manager Volker<br />
Lange was, and still is, to establish<br />
duropal as a quality brand on the<br />
Chinese market. No easy job, when<br />
one considers that nine out of ten<br />
German projects in China fail with<br />
monotonous regularity. “the problem<br />
frequently lies in the approach”,<br />
according to the analysis of Volker<br />
Lange. “anyone who comes here to<br />
make a fast buck, and thinks that<br />
they can conquer the market in the<br />
blink of an eye has actually already<br />
lost.” For Pfleiderer aG with its<br />
brands of duropal, wodego and<br />
Pfleiderer industrie, one thing was<br />
clear from the beginning: China is a<br />
long-term investment.<br />
a fast contract conclusion does<br />
not count – instead they rely deliberately<br />
on key accounts, which are<br />
looked after specially. “Here we are<br />
12,000 kilometres away from each<br />
other — including culturally. it is<br />
12 _ HPL World<br />
w<br />
therefore all the more important to<br />
know exactly what the customer<br />
wants.” in order to come to terms<br />
with these special circumstances and<br />
requirements, one must first allow<br />
oneself some time. the main priority<br />
is getting to know each other<br />
personally and developing mutual<br />
trust. While the culture for new<br />
business relationships in Europe is<br />
for many procedures to take place<br />
automatically, and all that often<br />
remains is to agree on ways and<br />
means, in China the foundations of<br />
a business relationship have to be<br />
built from the ground up. Everything<br />
has to be specified down to the last<br />
detail, in order to avoid misunderstandings<br />
from the very beginning.<br />
if possible, Lange takes his Chinese<br />
business partners with him to<br />
arnsberg, in order to demonstrate<br />
to them on the spot the high performance<br />
capability and the development<br />
expertise of the duropal<br />
brand. the close cooperation as<br />
early as the product development<br />
stage is a major decision-making<br />
criterion for many Chinese partners,<br />
since this gives them a decisive lead<br />
in the highly-competitive domestic<br />
market.<br />
the concentration on key accounts<br />
and a customer-orientated<br />
marketing strategy are however<br />
only a part of the secret of success.<br />
the fact that duropal is one of the<br />
leading imported brands in China is<br />
also due not least to the selection<br />
of the right sales partner. “today’s<br />
trade network, which covers all<br />
the major cities, has its origins in a<br />
20-year cooperation with our main<br />
distributor, and his vision of publicising<br />
the duropal brand”, emphasises<br />
Volker Lange.<br />
How well the umbrella brand<br />
of Pfleiderer aG (and, in turn, duropal)<br />
is integrated in the Far East<br />
market was shown in June 2008.<br />
on the initiative of the Pfleiderer<br />
asia-Pacific representative office<br />
and a good friend in Beijing, several<br />
large furniture manufacturers<br />
came together to form a partnership.<br />
this was an extremely unusual<br />
occurrence in the Chinese<br />
business world, which is characterised<br />
by takeovers and cut-throat<br />
competition.<br />
No less unusual was the place in<br />
which this cooperation was sealed.<br />
the signing ceremony was held in<br />
the Great Hall of the People in the<br />
Square of Heavenly Peace, an honour<br />
granted to very few Chinese<br />
companies, let alone foreign manufacturers.<br />
the ceremony was also<br />
attended by Chinese business tV,<br />
which broadcasted it live throughout<br />
the country.<br />
an invaluable image coup, which<br />
contributes towards strengthening<br />
the awareness of Chinese consumers<br />
for quality and brand products, and<br />
making other companies aware of<br />
Pfleiderer and duropal. and Volker<br />
Lange is sure of being able to fulfil<br />
the expectations which have been<br />
aroused with his team. in his view,<br />
there are four decisive factors in favour<br />
of duropal. First, the consistent<br />
orientation to the circumstances<br />
and needs of customers; secondly,<br />
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