An industry reinventing itself

Digitalisation, new technologies, competitive pressure and changing customer expectations are all questioning the business model followed by the electrical industry, wholesale and trade. How does the industry need to change in Germany? And where should we defend what’s been tried and tested?

Torsten Schulz, Managing Director of Hager Vertriebsgesellschaft in Germany, Markus Bruder, Managing Director of Bruder Gruppe, Holger Heckle, Chairman of the Board of the German Federal Association for the electrical wholesale industry (Bundesverband des Elektro-Großhandels e.V., VEG) and Arnold Rauf, FEGIME German Director are discussing these questions concerning the future.

They all agreed: digitalisation is shaking up markets and industries. We have to learn to adapt and draw the right conclusions. For example, Holger Heckle explains that the industry is already using digital tools to optimise its processes and increase productivity. Arnold Rauf recognises the need “to turn our focus outwards, and use digital tools to make our end users more aware of our products and services.”

The solidarity shown among manufacturers, wholesalers and technicians is a further success model, particularly since topics are becoming increasingly more complex. Manufacturers such as Hager Group drive the market forward and are making a significant impact with their innovations. Industry, wholesale and expert technicians should openly communicate the added value brought by manufacturers, possibly as part of a large-scale joint campaign, suggests Torsten Schulz. A common voice within three-tier sales model is desirable for the industry, as confirmed by those participating in the discussion – even if the interests of the three parties are sometimes different.

Torsten Schulz asks whether digitalisation will pose a risk to the traditional, three-tier sales model. Holger Heckle suggests that topics such as Smart Homes must be tackled together. “Expertise in renewable energy, energy efficiency and electromobility, in other words anything related to the energy transition is particularly important,” says Torsten Schulz during the discussion. He goes on to say, “…in the future, increasing numbers of homeowners will want to charge their electric vehicles using self-generated electricity from rooftop photovoltaic systems, and they will need powerful electrical installations and reliable energy management to do so.” Markus Bruder adds that this will also include guaranteeing top-level data security within the Smart Home world.

To Holger Heckle, it’s obvious, we need the courage to innovate now. But he’s also certain that “…we’re in the best industry in the world because the futures is electric.”

Read the whole story in the Hager Group Annual Report 2018/19.