Strategy for profitable growth
But we also want to grow through acquisitions of kitchen businesses that are compatible with the Group's existing structure and where synergies can be found. Realising efficiency opportunities is an important part of the strategy.
Strategic focus areas
- Product development
- Economy segment
- Production structure
Nobia invests in omnichannel, which means that the customer experience is to be identical regardless of whether the customer visits a website or a store. Websites and stores are interlinked and the same level of service should be provided in the various channels. With a higher degree of digital tools, we can capitalise on high customer involvement and help them progress smoothly through the purchasing process. Some of our brands offer e-commerce, and we are continuing to develop digital solutions and new store concepts and are thus at the forefront of omnichannel in our industry.
As a leading kitchen specialist, Nobia’s ambition is to be the first to market with new products. Our centrally controlled product development continuously introduces new kitchen solutions that differentiate our brands from our competitors. The strategy going forward is to continue developing new products according to the latest consumer Group’s total range by reducing the number of components. This allows us to realise additional economies of scale.
The ability to recruit employees and retain and develop skilled colleagues is vital to delivering results. Accordingly, Nobia invests in raising commitment among employees, developing leadership skills, increasing the company’s attractiveness as an employer and strengthening the internal talent supply. A leadership profile was introduced to the organisation in 2017 and a company-wide career website has been launched in 2018.
The economy segment is a growing area of the consumer kitchen market where Nobia is focusing on expanding its market share. Simply Magnet – Magnet’s range of ready-to-assemble kitchens – has been highly successful in recent years and and in the Nordic region, we also sell ready-to-assemble kitchens via the electronics chain Power’s store network. Buying our high-quality, flat-pack kitchens should be easy and offer good value.
The vast majority of Nobia’s production volumes follow the same standard dimension. The long-term trend is towards more large-scale and brand-independent production, which means larger investments are concentrated to fewer production facilities. In 2018, the existing production structure of five plants in the UK, six in the Nordic region and two in Austria will be reviewed. Moving ahead, measures are being planned to have a system in place with fewer and more specialised plants.
The strong financial position creates many opportunities for growth through acquisitions. Nobia’s aim since it was founded has been to contribute to the consolidation of the European kitchen industry. Since 2014, three acquisitions of UK kitchen companies have helped increase sales and resulted in a stronger position in the UK kitchen market. The acquisition strategy targets profitable kitchen companies operating in attractive markets and that supplement the Group’s existing structure.
The strategy can be summarized in the foundations Efficiency and Growth.