0.00%
1.65%Significant influence over the supply chain, consolidating all points of contact from raw material to retail outlets across an extensive product offering, has resulted in consistent margins raised barriers to entry and provided competitive advantages. The strategic product offering focuses on furniture, beds and related homewares, and in Africa includes integrated raw material and logistics operations, and the retail of automotive and building supplies.
Geographically, Steinhoff’s manufacturing and sourcing operations are located in low cost/developing markets such as eastern Europe, Asia and southern Africa – while its consumer-facing businesses mainly focus on the volume segment of developed markets, such as the UK, western Europe, Australia and New Zealand. Each region employs the most appropriate supply chain given the strength and opportunities inherent in that individual market. This geographical diversity and the group’s shared knowledge base have provided us with a competitive edge that has endured varying economic conditions.
The vertically integrated model is one of flexibility and balance in production, sourcing and supply to the internal and external customer base. Further balance is provided by the diversity of exposure to different industries. This versatility facilitates the management of concentration risk and protects and enhances margins.
Provision of logistics services through supply chain solutions and effective management of warehouses and distribution networks remain essential to each of our businesses. Services range from hauling saw logs from a forest to the ultimate delivery of household goods to the end consumer. Control over the supply chain gives rise to better service levels and guarantees product delivery within a competitive cost structure.
Our operations are positioned towards the mass-market consumer segments. However, ownership of aspirational brands and designs exposes us directly and indirectly to additional market segments.
Within the European business, the fragmented furniture industry is consolidating and Steinhoff is well positioned to grow its market share both organically and through selective investments in this environment. Our investments within our diverse industrial African group over the past three years has provided the platform for continued growth in these operations.