PAINT IS MORE THAN JUST COLOUR

PROFESSIONAL PAINTING: Flügger Farver is quickly developing from being a regional Scandinavian paint manufacturer to becoming an international player

When painting contracts for construction projects in Scandinavia are costed, the paint itself accounts for only around 13% of the total price. The rest is mostly labour costs. So for the painting contractor it is vital that the paint is easy to apply, preferably gives a proper finish in one coat, can be applied even to moist surfaces, and adheres well.

For ordinary consumers, price is the main competition parameter, but for professional painters the mantra is quality, quality, quality.

Market leader

“That is one of the reasons why we are proud to be a market leader for paint in Scandinavia, especially to the professionals,” says group chief executive Søren P. Olesen of Denmark’s Flügger Group. With factories in Denmark and Sweden which produce water and oil based paints, more than 500 Flügger stores in Denmark, Norway, Sweden, Poland, Iceland and China, and revenues of more than DKK 1 billion, the group is rapidly developing from a regional to an international player on the market.

“Although Norway, Sweden and Iceland are technically abroad, we consider these markets to be a part of our home market,” says Olesen. “It is only when we move out into parts of the world where Nordic languages are not spoken, that we talk about exports. And here our revenues are strongly increasing, from 3% three years ago to 10% today.”

Group chief executive Søren P. Olesen of Denmark’s Flügger Group

Paint for China

Flügger is expanding mainly in Poland. But now also China, with its boom in building activity, is waking up to the quality of Danish paint.

“Like so many others, we have outsourced a number of labour intensive processes to China. But in addition we have a large licensed production of paint in Beijing. We also buy most of the materials for our paint brushes in China. But instead of just sending empty containers to China to collect the outsourced products, it made good economic sense to send finished products to China. Results are far in excess of expectations, and the potential is enormous.”

Support

 Flügger’s success is largely built on the chain store concept. The group owns about a third of the 500 stores, while the rest are run on a franchise basis.

“When you target the professional segment like we do, it is vital to be present where the work is carried out,” says Olesen. “You need to be open when painters start work, and have professional people in the stores who can advise and provide support when it is needed.”

http://www.flugger.dk

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