JAB Acquires Majority of Chivasso; Will Open Branch in Warsaw
April 11, 2000
Bielefeld, Germany – JAB, the goliath-sized editor/wholesaler of furnishings fabrics, is expanding its horizons. JAB recently purchased a majority share of the 10-year-old fabric and wallpaper editor Chivasso.
''Chivasso is a young dynamic editor of furnishings fabric,'' said JAB President Chris-Jacob Schminnes. ''Within the group of JAB companies, Chivasso B.V. will remain an independent Dutch company with its own signature, image and product lines,'' he said.
Although the company will remain independent, JAB executives will sit on Chivasso's board of directors. ''We will look at whether we may be able to create synergies,'' Schminnes said.
Chivasso produces the brands Chivasso and Carlucci. Its wallpaper lines are priced in the middle to upper ranges while fabrics are priced in the $20-$23 range. Its Vogue line is offered at $80 per meter.
''Chivasso wants to be a bigger player in the international market,'' said Robert Petit, Chivasso Export Manager. ''It will be faster with JAB as a partner,'' he said.
Petit said Chivasso wants to improve service levels with more stock and faster deliveries, especially in the global market. ''We still have a lot of potential for growth in Europe,'' Petit said.
''With regard to marketing, Chivasso will continue to distribute their products in central Europe on their own,'' Schminnes said. He also said that JAB would consider integrating Chivasso products with JAB's new operation in the United Arab Emirates.
JAB also expects to open facilities in Warsaw, Poland very soon. ''We really want to be operating from this area by April 2000,'' JAB President Chris-Jacob Schminnes said during the Heimtextil Frankfurt trade show. ''The affiliate branch in Warsaw will serve Poland. From here, we will not only operate in the Polish marketplace, but also in other European countries. My vision is to be in the parts of the world so that we can know their mentality and taste.''
In mid-99, Sales Manager Piotr Kocak was hired to head the Warsaw branch.
Schminnes said that Eastern Europe is rife with opportunity at the moment. ''The economic situation in a couple of Eastern European countries is starting to improve. Also, consumers there are starting to appreciate brands, and they want to pay for them - not only for clothing, but also for high-end interior products.
''I feel that JAB Anstoetz is one of the main global players around the world and should therefore be among the first to invest there,'' he said.
JAB is already distributing to Baltic centers: Russia, Kiev. Slovakia, Czech Republic.
Schminnes said that he was satisfied with JAB's export numbers in 1999. A company Website claims that exports account for about 40 percent of JAB Anstoetz's turnover. ''We realized our budget [in '99] and we had a nice increase,'' said Schminnes. ''Export in Spain and Portugal were biggest increases in turnover percentage-wise. It's a good economic situation right now in Central Europe, Latin America. We had a good turnover in Southeast Asia.
''Right now, Central Europe, America and Southeast Asia represent our greatest chances to expand,'' he said.
JAB exports to 60 countries according to figures published on its Website. Among those, Schminnes cited America, Central Europe, France, Italy, Holland and Switzerland as particularly strong.
Meanwhile, in Brussels, Belgium, the company responded to a migration of decorators, by moving its showroom from the city center to the ring around the city. ''For 12 years, we were located in the middle of Brussels,'' said Schminnes. ''Decorators over the last six years have been leaving the center of Brussels - those are our customers. The move makes it easier for Belgian customers to meet us and have time with us. By sparing visitors a drive through the city, in some cases we are saving them three-quarters of an hour.''
JAB's Deco-Designer program also represents an effort by the company to make it easier on the customer. The on-line program, available in furniture shops in Germany, Holland, Belgium, Switzerland, Austria and France, offers residential customers to take a virtual tour of all JAB's products. ''20,000 skus - the whole thing is on-line,'' Schminnes said. ''Customers can quickly look up details like washing instructions, price. They can adjust interiors to see interactions with walls.
''We don't want to take the job from the designer, but we want to make his life easier,'' he said. ''Consumers get impatient.''
The company has created 25 new designs for Spring shown in a modern book and a silk book.
''Chivasso is a young dynamic editor of furnishings fabric,'' said JAB President Chris-Jacob Schminnes. ''Within the group of JAB companies, Chivasso B.V. will remain an independent Dutch company with its own signature, image and product lines,'' he said.
Although the company will remain independent, JAB executives will sit on Chivasso's board of directors. ''We will look at whether we may be able to create synergies,'' Schminnes said.
Chivasso produces the brands Chivasso and Carlucci. Its wallpaper lines are priced in the middle to upper ranges while fabrics are priced in the $20-$23 range. Its Vogue line is offered at $80 per meter.
''Chivasso wants to be a bigger player in the international market,'' said Robert Petit, Chivasso Export Manager. ''It will be faster with JAB as a partner,'' he said.
Petit said Chivasso wants to improve service levels with more stock and faster deliveries, especially in the global market. ''We still have a lot of potential for growth in Europe,'' Petit said.
''With regard to marketing, Chivasso will continue to distribute their products in central Europe on their own,'' Schminnes said. He also said that JAB would consider integrating Chivasso products with JAB's new operation in the United Arab Emirates.
JAB also expects to open facilities in Warsaw, Poland very soon. ''We really want to be operating from this area by April 2000,'' JAB President Chris-Jacob Schminnes said during the Heimtextil Frankfurt trade show. ''The affiliate branch in Warsaw will serve Poland. From here, we will not only operate in the Polish marketplace, but also in other European countries. My vision is to be in the parts of the world so that we can know their mentality and taste.''
In mid-99, Sales Manager Piotr Kocak was hired to head the Warsaw branch.
Schminnes said that Eastern Europe is rife with opportunity at the moment. ''The economic situation in a couple of Eastern European countries is starting to improve. Also, consumers there are starting to appreciate brands, and they want to pay for them - not only for clothing, but also for high-end interior products.
''I feel that JAB Anstoetz is one of the main global players around the world and should therefore be among the first to invest there,'' he said.
JAB is already distributing to Baltic centers: Russia, Kiev. Slovakia, Czech Republic.
Schminnes said that he was satisfied with JAB's export numbers in 1999. A company Website claims that exports account for about 40 percent of JAB Anstoetz's turnover. ''We realized our budget [in '99] and we had a nice increase,'' said Schminnes. ''Export in Spain and Portugal were biggest increases in turnover percentage-wise. It's a good economic situation right now in Central Europe, Latin America. We had a good turnover in Southeast Asia.
''Right now, Central Europe, America and Southeast Asia represent our greatest chances to expand,'' he said.
JAB exports to 60 countries according to figures published on its Website. Among those, Schminnes cited America, Central Europe, France, Italy, Holland and Switzerland as particularly strong.
Meanwhile, in Brussels, Belgium, the company responded to a migration of decorators, by moving its showroom from the city center to the ring around the city. ''For 12 years, we were located in the middle of Brussels,'' said Schminnes. ''Decorators over the last six years have been leaving the center of Brussels - those are our customers. The move makes it easier for Belgian customers to meet us and have time with us. By sparing visitors a drive through the city, in some cases we are saving them three-quarters of an hour.''
JAB's Deco-Designer program also represents an effort by the company to make it easier on the customer. The on-line program, available in furniture shops in Germany, Holland, Belgium, Switzerland, Austria and France, offers residential customers to take a virtual tour of all JAB's products. ''20,000 skus - the whole thing is on-line,'' Schminnes said. ''Customers can quickly look up details like washing instructions, price. They can adjust interiors to see interactions with walls.
''We don't want to take the job from the designer, but we want to make his life easier,'' he said. ''Consumers get impatient.''
The company has created 25 new designs for Spring shown in a modern book and a silk book.
