Kobe Plans Large-Scale Expansion

September 20, 2000

Valkenswaard, Holland - The Dutch distributor, Kobe, will expand its current headquarters and warehouse from 6,000 to 16,000 square meters next year, according to Roger Duffhuis, Kobe marketing manager.

As part of the company's twenty-fifth anniversary ex-pansion, the biggest in its history, Kobe expects to crack new markets through the use of 'shop-in-shop' merchandising displays in as little as 25 square meters of retail floor space, said Duffhuis. The new space is needed to showcase these collections. ''We expect to add two to three markets per year with these new 'shop-in-shops,''' said Duffhuis. ''We cannot support too many new markets at once. Our goal is to continually improve our service levels as we expand. We intend to use the Internet for improved service levels in the future.

Kobe has also been expanding its sales 12-15 per cent per year for the last four years, Duffhuis said. Employee count is up from 95 to 150 in the past four years to handle the growth.

''We don't plan to grow by purchasing other distributors,'' said Duffhuis. ''We have our own staff serving accounts in Germany, Austria, Switzerland, Benelux, Denmark, Finland, Norway and Sweden. We sell our product lines through other wholesalers worldwide.''

''We are helping the retailer communicate with the end user. We're offering a different way - not oriented to a particular supplier or product category - to merchandise soft furnishings,'' he said during a recent open house event showing all of the Kobe products.

During its two-week open-house event in June, it was obvious to even an un-trained eye, that Kobe's current displays are taxing its current showroom facilities to the maximum; hence the need for an expansion plan. ''These displays are for sophisticated customers who want an integrated collection of draperies, upholstery, trimmings, throws and cushions,'' he explained.

''We want to solve problems for consumers in non-technical terms. We expect to increase our product distribution and put more Kobe- designed product on the retail shelf,'' he said. Kobe has been converting more of its product lines than ever before, suppliers confirm. The company plans to have its suppliers and friends visit during Decosit. ''We are a wholesaler so we cannot exhibit at Decosit, but we want the world to see us during that time.''


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