When the Berlin wall came down in late 1989 and the Cold War ended, new market opportunities arrived for Thule. The company exported its first products into Eastern European markets in 1993, and opened the first sales office in Poland four years later. Since then, consistent double-digit growth rates have made the region one of the most important growth areas for the entire Thule Group. The Czech Republic and Poland are now among the top ten markets for Thule Vehicle Accessories in Europe.
“Eastern European countries today show similar consumer behaviour to Western Europe,” says Wolfram Dittmer, Thule’s Sales Director for Eastern Europe. “More and more people go biking in summer and skiing in winter,” he adds. “And Thule has been early in those markets, which has proven to be a successful strategy.”
Shaping the market could only happen by finding the right distribution partners for the journey ahead. After several initial changes, Thule’s distribution network has steadily grown and today it comprises 25 partners in the most important markets of the Czech Republic and Poland, and a further 25 partners in other Eastern European countries.
“Many of our partners are former sports enthusiasts who came across our products by using them themselves, investigated the market potential and approached us to agree on a distributor’s agreement. We took cautious steps in the beginning as we had to shape the market first and introduce the concept of rack solutions,” Dittmer recalls.
Wide Distribution Drives General Market Growth
Doing business in Eastern Europe nowadays demands the same level of professionalism as in other European countries, but it is even more important to build relationships with customers right from the start.
“We are often dealing with privately owned companies where trust is a precondition for further growth,” Dittmer adds. “Payment conditions, delivery reliability and end consumer support are key ingredients to building the markets from scratch. In markets like the Czech Republic and Slovenia we already have visibly higher sales per capita than in some mature markets. This says a lot about the dedication of our importers but also about the future market potential.”
After starting up in a market you always arrive at a point where you need to expand your distribution footprint. The broadening of Thule’s distribution partner base has led to rapid increases in sales, especially in Poland. In the Czech Republic, domestic competition has had a positive effect on Thule as the market segment broadened and more consumers became aware of Thule’s products.
As in the rest of Europe, the main distribution channels are related to the car aftermarket. European giants, with whom Thule already has good relationships, are opening shops on a broad scale in the region, which makes the region an even more interesting market opportunity for Thule. Additionally, Thule is expanding its distribution footprint into other channels.
The Brand as the Most Important Asset
“Internally we ask ourselves why we have been able to gain substantial market share in Eastern Europe in recent years,” Dittmer continues. “A very important asset for our success has been access to the Thule brand,” Dittmer explains. “Our Scandinavian heritage with the combination of first-class quality, safety, function and design is very appealing to the end consumer base,” Dittmer concludes.