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We pursue a premium strategy”
Christine Steingaß, Managing Director of BASF Coatings Services GmbH in Eugendorf since the beginning of the year, gives an initial outlook on her strategies for the Glasurit, R-M and Salcomix brands on the Austrian market.
We pursue a premium strategy”
Automotive industry: What general conditions do you find on the Austrian market and where do you see a specific need for action?
Christine Steingaß: The Austrian market is stagnating overall. There are sometimes long-standing business relationships characterized by personal connections between customers and paint suppliers. There are hardly any new players in the market, although we are observing that the price-sensitive segment, which is not necessarily focused on quality and service, is growing - at the expense of the premium brands. To grow in such a market environment, we must clearly differentiate our value proposition from those of our competitors. Overall, we would of course like to see Austria's economy gain momentum, additional jobs be created and the economic climate revive. This has an indirect impact on consumer confidence and thus on the number of new vehicle registrations. That’s good for the paint business.
How do you specifically want to implement the experience you gained in Asia in Austria?
In Asia, I was responsible for BASF's construction chemicals business in Singapore and Malaysia. There I experienced how a qualified, well-coordinated and hungry sales team with the right focus can make the impossible possible. I also want this spirit from our team.
What strategies are you pursuing with the individual paint brands Glasurit, R-M and Salcomix?
With Glasurit and R-M we are pursuing a premium strategy – with a premium offering including our services. We deliver more than just paint and see ourselves as a provider of comprehensive solutions. The highest quality standards, regular training for paint and color as well as a service program tailored to the customer make up our premium claim. The range of accessories, including our Rodim brand, rounds off our portfolio very nicely and meets all the requirements of a modern, efficiently working paint shop. Our field service knows the situation and challenges of workshops very well and is a reliable and competent consultant/partner on site. With R-M we have a premium brand in our range where we have not yet exhausted the potential. I met some painters who were very enthusiastic about the R-M product portfolio, but the brand itself is currently not as well known in Austria as our Glasurit brand. Salocmix belongs to our industrial coatings segment. The boards of BASF and Akzo have decided that BASF will divest its industrial coatings business to Akzo. The “closing”, i.e. the concrete transfer of the business to Akzo, is expected in the fourth quarter of 2016.
What technical innovations does BASF want to use to strengthen its market position?
BASF continuously works on innovations and regularly expands into new markets and areas of application. The new generation of clear coats and the UV primer filler released this year are just two examples. We also think a lot about the topic of sustainability. The increasing demand for electric vehicles, among other things, and the greater awareness of environmentally friendly products require new concepts that we also want to meet. Modern service concepts go far beyond the pure paint program; for example, we also provide free energy advice for our customers.
What exactly does your consulting offer for paint shops look like?
We put ourselves in the shoes of our customers as entrepreneurs and offer a comprehensive service with the aim of making our customer businesses even more efficient and profitable. This includes a systematic analysis of the painting process with concrete recommendations for improving operational processes. Our service extends across all areas of work right up to workshop planning.