HDS/L Symposium in Pirmasens: Wertvoll ist besser

On 21st May, the industry met in Pirmasens. More than 100 representatives of the shoe industry and leather goods industry, from retail, fair and exhibition business and politics came to the ISC Pirmasens in order to participate in the HDS/L symposium with the title "The value of the shoe/the bag". The HDS/L Chairperson Ralph Rieker was happy about the positive resonance evoked in the industry by the symposium which has been organised now for the sixth time by the association. "We have our finger on the pulse   with our subject. The specialist retailer trade for shoes and leather goods has difficult seasons behind it and is facing serious structural changes. The market shares in the shoe and accessory range are shifting with great dynamism through the growing online business, increasing verticalisation but also by suppliers from the textile trade."

The turnover development in the footwear and leather goods industry is sending positive signals. "Slight growth in the first three months (+1.7%) and a stable employment situation is allowing the industry to look confidently into the future, according to HDS/L Chief Managing Director Manfred Junkert. On the other hand, association takes a critical view of the price trend and with it, the appreciation of the shoe and bag products. "Amazingly you can see red prices [sales] everywhere at the moment – and the real summer hasn't even started yet. Is this is the right way to motivate customers sustainably?" asks Ralph Rieker. The trade should provide a quality, reliable supply at a reasonable, decent price/performance ratio. The prerequisites for this have never been better. More and more people are developing a distinct awareness of products which are of sustainable value. Rieker: "Now we need to link sustainability and economic interests. The motto of the future should read: Valuable is better."

Pricing, added value and sustainability
After a word of welcome from David Langner, State Secretary in the Ministry of Social Security and Labour for Rhineland-Palatinate, in which he referred to the significance of the Südwestpfalz [southwest Palatinate] region to the industry, Björn Dahmen, Director of the Bonn business consultation Simon-Kucher & Partners held his lecture under the motto "Pricing. Everything you ever needed to know about prices". "The price is the most important profit driver for a business", says a convinced Dahmen. He showed how prices are optimally configured, which mistakes can be made when setting prices and how this can be avoided. "Prices are frequently based on experience, not on a customer's point of view", according to the consultant. What is more, consumers are frequently ready to pay more for an item. To be sure: "The customer will only buy the item if the customer benefit is the same or is greater than the price". A check list and practical tips for the pricing rounded off the lecture. The chances and benefits which result with the help of process and cost transparency through video analysis, were clarified by Thomas Mittendorf, Managing Director of Solme Germany GmbH in Ludwigsburg. "The aim is to identify potentials in our processes through process transparency and use them as a contribution for sustainable competitiveness", according to Mittendorf. In producing companies, for example, waste could more quickly recognised and assessed through targeted video analysis, planning times increased, resources more efficiently used and workplaces more ergonomically arranged. Mittendorf sees sustainable benefits in a reduction of costs, long-term competitiveness and security of jobs.

"Price is not necessarily the same as value" reads the thesis of Prof. Max Otte who gave participants of the symposium insight into the complex world of the financial markets. The true value of a business and thus the value of a share could considerably deviate from the price. Frequently, emotion driven, irrational over reactions to the brand participants is responsible for this. Prof. Otte showed the difference between price (what you pay) and value (what you get). "Values have to be created that satisfy long-termed customer needs. Make sure that price and value are in harmony! That is the basis of successful management", Otte conveyed to the participants. Ways out of the "Age of cheap" were the focus of the highly anticipated lecture by Uli Burchardt, former manager of Manufactum, author of the bestseller "Ausgegeizt – wertvoll ist besser" and today Lord Mayor of the city of Constance. Based on plastic examples, Burchardt shared the secret on how to distinguish between good products and marketing. Seven principles lead a business to success: Value before price, regionality before efficiency, stakeholders before shareholders, pride before adaptation, courage before market research and create benefits before cash register. "What would be missing, if it your business no longer existed tomorrow", asked Burchardt provocatively of the audience. "Don't eat the seed" is his appeal to everyone. It concerns a long-term utilisation of the resources and on deciding more frequently for quality. In accordance with the seventh principle of his strategy: "Profitable sustainability creates sustainable profitability".