1 year ago

Day 5 - IFA International

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Trade Talk Clever Ways

Trade Talk Clever Ways to Sell the Smart Home Media-Saturn launches new sales support concept to help customers “get smart” MEDIA- SATURN TAKES OVER RTS Media-Saturn-Holding last month signed an agreement to acquire a majority shareholding (90%) in the RTS Group. The company RTS, which is headquartered in the Bavarian town of Wolnzach and last year generated revenues of 136 million Euros with approximately 1,200 employees, provides services for electrical goods throughout both Germany and, via partners, Europe. RTS will allow Media- Saturn to further expand the range of services it offers, including planning, installation, inspection, maintenance and repair of various products, ranging from household appliances to smartphones, TVs and entire smart homes. It is planned that in the future all of these services will be available not only in the stores but also at customers’ homes. In addition, the online services and the established business of RTS will be further expanded. This comprises the management of returns and repairs (incl. spare parts management) for end customers on behalf of manufacturers. The transaction is subject to the approval of the relevant antitrust authorities. With sights set on becoming Europe’s leading CE digital commerce company, Media-Saturn is on the cutting edge when it comes to developing new marketing concepts. Part of this development comes from a huge presence at IFA, where such ideas are discussed at the highest level. We asked Sergio Klaus-Peter Voigt, Chief Procurement Officer and member of the Management Board, what he saw as being the biggest groundswell trend at the moment. I’d like to say it’s going to be “smart home”. It’s something the whole world is talking about, but many consumers don't really know what it means. All devices can be connected, but who is really able to connect these devices and maintain the system? We, as retailers, need to create and fulfil customer expectations when it comes to connectivity in the home. This is one of the major reasons why we the fact of sending staff into peoples’ homes enables us to further add value recently took over a service and solutions organisation – RTS – as one of the major players in this field in order to fulfil customer needs when it comes to smart home. People don’t want to buy hardware; they want to buy a solution, so we are bundling hardware with services. In the future, this bundling will grow in importance. Furthermore, the fact of sending staff into peoples’ homes enables us to further add value, as the technicians, through being in direct contact with the end user in their home environment become part of the CRM process. You can easily up-sell or crosssell at home as the customer feels without pressure. For instance, the technician may note that the customer’s fridge is nice, but is totally out of date with regard to energy consumption, so he can explain why it’s a good idea to change, and we can deliver the next day. What kinds of people from your organisation come to IFA? I was once asked by a former colleague of Metro – our major shareholder – “How many people are going to attend the IFA fair from our group?” I told him to guess and he said “Around 60”. I said, no, we have well over a thousand people. Technical innovation is not just an issue for our buyers. We want to also get our sales people involved with the latest technology; otherwise how can they provide customers with the right advice? Each country organisation comes to the IFA, every department leader, and a lot of sales people as well. That’s important, because in the past we were only talking about consumer electronics, but now we talk about smart home, wearables and white goods, and the computer industry is moving from CeBit to Berlin. Then there’s smartphone. I wish we could have three extra days at the show! How do you personally leverage the show? Talking with the people. It is important to get in touch with the industry leaders, to share their thoughts, and to be part of this movement in which technology is changing the world. To do this, we need to communicate. And I also hammer the message home to every single supplier: ‘Train our people.’ We want our sales people to be extremely professional when dealing with customers. Box moving is long over. Sergio Klaus-Peter Voigt Chief Procurement Officer and member of the Management Board, Media-Saturn How important is IFA? I have been a big fan of IFA since 1988, the very first time I visited the show. It is a very important - even mandatory task for decisionmakers to be here, to get in touch with the industry and improve relations with the industry - knowing them, talking to them, where they want to go with their sales strategy; new products, and getting a holistic overview of the industry. That’s what IFA offers all of us. This is the “big bang” for the high season, because this is where the buyers place their orders. So it’s a kind of barometer to know whether it’s going to be a good season. And is THIS going to be a good season? It will be. 14

Trade Talk Telering and Markenprofi Take off into Cyberspace The goal has been set for all telering and Markenprofi stores to establish a presence online There are some 2600 telering and Markenprofi specialist electrical stores in Germany. Each one carries the IQ logo, which stands for Quality Always. IFA International asked CEO Franz Schnur how business is going so far in 2015 The electrical home appliances business is very healthy. But as we expected, the consumer electronics business is down on last year. In 2014 year we had positive results in TV sales in the run-up to the FIFA world Cup, and of course we didn’t have the same experience in 2015. We expect to have achieved some growth in our overall business by the end of the year. What have been some of the high points in your business recently? In the TV business we have continued to focus on highquality smart-TV models with UHD technology. In audio, we are encouraging our members to focus on multiroom products. In the kitchen, SDAs in the food preparation category and coffee makers are most successful. With MDAs there is a trend towards washing machines with high capacity. And we are having some success with dryers and dishwashers; the built-in business is strong too. How is your organisation's channel philosophy changing with time? For the traditional highstreet retailers, the links between offline and online marketing activities are very important. In this area we are helping our dealers to establish an the links between offline and online marketing activities are very important Franz Schnur CEO, Telering and Markenprofi online presence with our Markenliq ‘automatic homepage generator’ concept. This enables telering and Markenprofi dealers to create their own professional websites simply and cheaply. Today most people go to the internet first for company profiles, to find out about products and to find the addresses and opening times of retailers. Dealers who aren’t online can lose out. For this reason we have the clear goal of ensuring that all telering and Markenprofi dealers have an online presence with their own professional websites. What are the benefits of your partnership with IFA? IFA is the leading trade show for our industry; it’s where we learn about the technology trends of tomorrow. It’s very important for us to maintain a close partnership with the IFA, so that we can keep up-to-date and understand future industry trends. INSIGHTS OF AN IFA JOURNALIST VETERAN Luboš Horˇcic has been editor-in-chief of the Czech and Slovak AV monthly, Stereo & Video Magazine, for 22 years. A keen observer of trends in the consumer electronics market, he told IFA International his favourite trends at IFA 2015 and also provided a few wise tips. What for you is the most important trend to follow this year at IFA? Why? Personally I appreciate the comeback of real and fair hifi products, like turntable and vinyl. For me, this trend is a welcome return to the roots of consumer electronics , when I started my passion for music and high-quality listening. At the time I had no smartphone in my pocket. Today I want to value the harmony of highspeed internet connection, multifunctional tiny computer and heavy retro oldies singlepurpose audio devices. What are your key reasons for coming to IFA? I´m no technician, I study journalism. I learn all the time, IFA is perfect place for study. I´ll meet dozens of interesting and clever people, engage THE CRITICAL EYE – AND COMMENTS OF THE MEDIA AT IFA Each day in IFA International, we will be bringing you feedback from media at the show, helping buyers and manufacturers take the right direction in the coming months. Luboš Horčic Editor-in-chief of the Czech and Slovak AV monthly, Stereo & Video Magazine with lot of amazing products, and listen to enlightening presentations. Last but not least, I´ll celebrate and praise with industry their winning products at the EISA Awards Ceremony. What do you appreciate most about the show? I´m happy to see and enjoy attractive formats like ShowStoppers at IFA. What tips or advice would you give to international journalists visiting for the first time? Use the boxes in the locker room, ignore the fashion and dress code and dress in comfortable shoes. Also have a comfortable bag/backpack with the bottle of water inside. Prepare carefully your time schedule and don´t wear a poker face. IFA International • Tuesday 8 th September 2015 15

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