When a relatively unknown Scandinavian retailer is planning to open upto 200 new stores across Britain and create around 7,000 jobs nationwide, it's a good idea to find out who they are and why they feel so confident in the UK economy right now. What makes the Clas Ohlson expansion like watching master marketers at work?
Clas Ohlson sell electrical goods, hardware, bathroom and kitchen accessories and are Sweden's 3rd largest retailer - the other two being Ikea and Clothes chain H&M. Big acts to follow, you might think. Founded in 1918, their success can be compared to a slowly maturing vintage wine.
Starting off as a mail-order company in a tiny village, the first shop was opened in 1926, and the second one a whopping 63 years later, in 1989. A large shopping centre in Stockholm was chosen which proved to be such a success, they have become the largest hardware store in Sweden and employ 3,200 staff. They also distribute a massive 6.2million mail order catalogues around the world.
So far so good. But what do they see in the UK economy that others don't? Especially considering that some of the biggest home stores (like Woolworths) bit the dust in the early part of the recession.
They want to market the Nordic model - they've proved it works in Scandinavia and they are confident it is right for the UK market right now. They have observed that:
a) it's easier to get sites when the economy is down and
b) there is a gap in the UK market that is not being filled by anyone else.
Since all their new stores are targeted for the High Street and City Shopping Centres - they could be right. How many shops selling those particular goods can you see in your City Centre right now?
"When we look at the UK, we think there's the same need for consumers to solve many of the small practical problems in life." says Klas Balkow, talking of the success of his company in the Nordic nations.
Let's hope they are right. B & Q have also had a rethink and are planning to change its large out-of-town stores into smaller formats in a city near you soon.
Could be tap wars at dawn!
What's interesting is the way Clas Ohlson have put their years of experience to work and are continually evolving to reach new markets. That truly is the sign of a master marketer at work.
As we look on, maybe now is the time to spare a thought as to how you can create more income for your own business. Seeing the way Clas Ohlson have expanded over the years, its obvious that they take marketing very seriously and don't use hit and miss techniques.
If you want a slice of success for yourself, visit the following link. http://www.earnyourwealth.co.uk
We take marketing very seriously indeed and are not known for wimpy results. If Clas Ohlson can expand working master marketing techniques - so can you.
Olive Bush is an online marketer teaching people from around the world to make money online and how to build their home based business. To learn more about Olive and her business please visit http://www.earnyourwealth.co.uk.
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