"There's no such thing as a quick deal"
In many west European countries the human aspect takes a backseat to price and proficiency. In Russia it's the other way round. It's a touchy-feely thing.
While product quality is important, it takes second place for the Russians, says Gunther Geisweid, managing director of Hera GmbH, Enger.
Mr. Geisweid, so what comes first when doing business in the country of the rouble?Russians do business differently from what we're accustomed to in western Europe. That is equally as true of exhibition appearances as of all other activities in this market. First, you get to know one another, build up a relationship with the business partner, develop bonds of trust. The process involves a lot of talking and eating - and the odd glass of vodka as well. As I said, the quality of the products you're looking to sell is important, but it comes second, closely connected to a company's service and reliability. Only then does the price of the product or service enter into the equation. In Germany and many other west European countries the order is reversed. I repeat: In Russia you need to take a sensitive approach and the long view.
How long have you been active there?We began canvassing the Russian market at the beginning of 2001.
What exactly made you opt for this huge country with a population of 143 million?Russia is an enormous market, offering western companies good sales opportunities. As the people there become more prosperous, they are prepared to spend more. Besides which, there is great interest in product design and functionality. But you need a lot of patience, and above all good contacts to get a toe in the door.
How did you achieve this?The German furniture industry's EMG export marketing society headquartered in Herford gave us active support with consultancy, providing office space and infrastructure plus a staff member, whom Hera took over at the beginning of 2005 as its chief representative. Since then we have been present in Moscow with our own representative office for the Russian Federation. A step of this kind is vital to capturing and building on business with key accounts in the country.
What part do trade fairs play in this context?In the opening years (2001-2003) we exhibited as part of a joint German stand at Mebel in Moscow. At that fair you'll find both furniture manufacturers and contractors, which is not necessarily beneficial to product development by manufacturers - our clients. Since 2004, when ZOW premiered in Moscow, we have exhibited there. The show is organised by Survey Marketing & Consulting GmbH & Co. KG headquartered in Bielefeld. It is tailored specifically to the needs of contractors. The spring date is right, the focus is on the products, and the open workshop atmosphere fosters communication with customers. Only decision-makers at companies are invited, guaranteeing effective exhibition contacts. This has resulted in some good accounts for us.
How do you cope with the logistics?Survey makes things as simple as possible for exhibitors: You book a complete package in a set stand size of 30, 45, 60, 90 or 120 m2, which, in addition to stand construction including power supply, lighting, carpeting et cetera also comprises visitor admission and the entire catering. Transportation and delivery of the exhibits are also taken care of.
What advantages does this organisation have for you?In a confusing market such as Russia it's priceless! Without an all-in package of this kind the costs for a midsize company would be incalculable.
How does your in-house exhibition organisation work?With transport and delivery of the exhibits, a large part of the exhibition organisation is handled through the ZOW organisation company or its service partners. Development and selection of the exhibits are the responsibility of our research and development and sales departments at Hera's headquarters in Enger. The head of our representative office in Moscow deals with internal operational fair organisation on site.
What special considerations have to be taken into account at Russian fairs: Do you adapt your stand architecture in any form?The stand architecture is determined by the exhibition concept. The uniform stand design at ZOW creates an open, transparent picture conducive to exhibitor-visitor communication. This also gives smaller companies the chance to present themselves adequately.
What do you consider particularly important for success at the exhibition stand?Stand personnel proficient in the country's language is one of the key prerequisites for an exhibition appearance in Russia.
Important product leaflets and brochures should be available in Russian. Giveaways always go down well. At the last fair we gave away a little energy-saving LED reading lamp that you can clip onto an open book. It was very popular with customers.
Do you see trade fairs as opening doors to new markets?Exhibition appearances are an important tool for tapping new markets. The more precisely you can reach your clients at a fair, the better. Which show is the right one is something that every company must ultimately find out for itself. We are confident of having found the right platform in ZOW and plan to exhibit there again in 2006. The quality of the contacts gathered is good, and we are gradually turning this into hard euros and cents.
Exhibition appearances aside, what do you perceive as vital to long-term success in Russia?A representative office in Moscow and/or St. Petersburg, carrying out important assignments as a contact and local coordinator. Interview: Christine Seizinger
m+a report Nr.5 / 2005 vom 12.08.2005
m+a report vom 12. August 2005