tci 2016 a cross-sectoral approach for an industrial reconversion
TRANSCRIPT
Titel presentatie[Naam, organisatienaam]
Working Day - Track: Managing learning networksCluster development success factors
Joaquim Solana
A cross-sectoral approach for an industrial reconversion
Promoting innovation in Home and contract furnishings
Joaquim SolanaTCI, Eindhoven, November 2016
A cross-sectoral approach for an industrialreconversion: from furniture manufacturer to
hotel interiors services provider
Furniture in Southern Catalonia: a well known case study
Microcluster know in the 90’s (On competition, M. Porter)
Harvard business school case (Antmobel), 1995
Local production system characteristics
- Mainly located in one small town (La Sénia)- Specialized in home furniture manufacturing and distribution (modular, modern style)- High concentration in just one industrial sector (surrounded by olives and mountains)
The “Golden Age”: 2000-2007
In 2007: 700.000 houses built in Spain(more than UK + Italy + Germany)
Home furniture retail booming:Internal market increases more than 10% per year
Companies strategic positioning:- Commercialization is limited through traditional shops- Costumers demand big production flexibility (industrial artisans)
The Golden Age consequences
- Focussed on manufacturing: attending the big demand
- All atention to internal market -> neglect exportations
- Loss of competititiviness (imports increase)
- Lack of innovative stimulus:- Trend followers- No branding to final costumers- Traditional bussiness model: no verticalization- Little technology innovation
The nightmare
Housing bubble burst + strong crisis
New houses construction in Spain
And the 5 axis perfect storm:
1. No new houses construction2. High young unemployement3. High employement risk perception: no sails of not essential goods4. Bank credit reduction to a minimum5. New distribution systems (traditional shop desapearsing) and cheaper
products solutions (DIY)
2000 2002 2004 2006 2008 2010 2012 20140
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2000 2002 2004 2006 2008 2010 2012 20140.00
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2000 2002 2004 2006 2008 2010 2012 20140
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2000 2002 2004 2006 2008 2010 2012 2014-10,000
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Catalan furniture sector recent evolutionNumber of companies
EBITDA (thousand euros)Anual turnover (thousand euros)
Workers (thousands)
The crisis affected lots of companies5 of the 7 founder companies of the cluster went bankrupt
Cluster companies need to find urgently new markets
What would you do as a cluster?
Poll “N5 Furniture strategy”. TCI - App
1.- Promotion of exports: market intelligence, consortiums
2.- Inspiring companies verticalization: B2C, branding, own shop…
3.- Channel change: hospitality furnishing
4.- All of them
Crisis, what crisis ?
TourismContinued growth in Spain during the crisis
High hotel occupation rates:• External causes: sun&beach tourism forward from other places• Internal causes: tourism diversification & cities attractiveness
Consequences:• More hotels needed• Hotel interiors refurbishing
Is it a real opportunity ?
1) Hospitality market already has big operators
2) Furniture manufacturers don’t want to act just as subcontractors but to arrive to prescription (architects) and costumer (hotels):
• Longer position in value chain -> higher profits• Reducing risks (not to depend on others)
3) Big oportunity to make the shift from product to service
Strategic Oportunity vs Strategic challenge
New skills are needed:• Develop a marketing message attractive for architects• Complementary products knowledge: lighting, flooring…• New suppliers (or partners) for complementary products• Installation capabilities• Acces to medium term financing
Crisis was intensifying in retail and companies were in a hurry
The cluster role
Help companies in the strategic challenge development but…We also have to learn!
Phase 1: Personalized strategic planCompany needs detection, planning, KPISkills detection (sectorial), contents preparation, training
Phase 2: Looking for complementary partners
Phase 3: Jumping to the market
Looking for complementary partners
Complementary partners for completing the product offer:Lighting, flooring, home textile, bath, decoration
Economies of scale and economies of scope (synergies)
WEcontract (www.wecontract.bcn) 13 complementary companies in a permanent consortiumStrong rules to ensure no competence
Sharing: • Space (premium area)• Sales staff• Costumers
Looking for costumers
Toruism is a BIG marketSpain: third world position in tourism17.000 hotels, 1.800.000 rooms, 14.000 M€ (hotels turnover)
Hotel interiors fragmented demandHotels ownership distribution: 40% chains, 60% SMEs
Hotel chains: few professional buyersHotel SME: lots of uneficient buying
Oportunity for a Marquet Place creation!
InteriHOTEL: www.interihotel.com
Description:• Marketplace focused 100% on Hotel interiors• Main market place in Spain (Top 5 in Europe)• 152 exhibition companies (80 showrooms)• 3.000 professional attendants (architects, hotel buyers)• 20% international
Reasons for succeeding:• Growth from a little seed• Focused on giving value to companies not to organization • From the cluster cradle (far from markets) to Barcelona and others• Moving forward “traditional fair” concept:
networking + knowledge + experiences + products in an atmosphere
Cluster transformation
Strategy of focusing in a business -not in a sector- allowed the cluster:• To develop a connected set of sales projects: InteriHOTEL, Wecontract• To acquire a big market intelligence• To foster technology projects related to this business approach
www.furnit-saver.eu , www.eco4vet.com
As consequences: • Increasing cluster attractiveness for companies from other sectors :
- Other manufacturers (lighting, flooring, home textiles…)- Project management co.- Distributors
• Nowadays just 30% of companies of the cluster are furniture manuf.• Change from mono-sectorial to cross-sectorial cluster
Future challenges
What do suggest us to do in the future?
Poll “N5 Future strategy”. TCI - App
1.- Internationalization (something more than exporting)
2.- Furnishing other spaces: nursing homes, AAL elderly, shops…
3.- Win market share by upgrading offer (new materials, author design, smart products…)
4.- All of them
Internacionalization
- Actions for market intelligence in emerging touristic markets
- Planning a COSME – Go international proposal (EU funding)
Do you know home interiors, hotels, building, architects clusters?
Please, contact us:Joaquim Solana
[email protected]+34 607 82 19 10