► {snippet 2}Mr. K.W.
► Customer: HettichGruppe>
► Location: Jakarta / Tangerang
► Time frame: 2 years (mid 2013 / mid 2014)
► Role: Managing Director
► Turnover: 800 million Euro
► No. of employees: 6000

► About the Customer
Hettich is one of the world’s largest manufacturers of furniture fittings. Over 6,000 members of business, Hettich is at home in Kirchlengern, Germany. Indonesia had been identified as the key market for future growth due to its large retail demand for furniture, high growth rates for Hotels and Condominiums as well as an established furniture export business with customers in the US and western Europe. Hence, the decision was made to enter the market with a wholly owned subsidiary.

► Situation (Challenge)
Hettich fortunately had some brand recognition in the market through the earlier work of a local distributor. However, lack of presence, service and product availability had left the market to established European competitors and low cost Chinese imports.
Due to the sheer geographic size of the market, a pure direct sales organization was considered too costly and an efficient dealer network needed to be established as support.
Complex legal and government hurdles as well as constantly changing rules and regulations make the setup of a corporation and the application for an import license unpredictable.

► Solution (Achievement)
A small but very efficient team of 8 people was put together. These included a country manager, technical support, sales representatives and administration staff.
Selected key accounts were approached with a highly targeted sales and communication strategy.
To service the broader market a dealer network was setup and trained and developed to cover all relevant regions (Jakarta, Surabaya, Yogjakarta, Semarang, Bandung)
Identify a suitable consultant to facilitate the legal hurdles for the setup of the corporation and obtain the import license.
Search and identify a Partner which can perform warehousing and logistics (customs clearance) to Hettich standards. Eventually, the best cost performance ratio was found with the local office of a German forwarding company running a dedicated warehouse for PT Hettich Indonesia.

► Final Result
The team is stable and has proven to be able to penetrate key accounts.
Local presence, technical competence and a high service level and product availability
support dealer sales throughout the region.
Low overhead cost ensure profitability already after one year of operation.
Turnover development from 500 kSG in 2012 to 4 million SGD (2014).
Outlook for the coming years defines realistic growth rates between 25-35% per year.