South Africa Steinhoff Expands Market By Acquisitions

In a recent article, Steinhoff from South Africa was called "Africa."

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The company sells things like IKEA, all kinds of furniture, but also sells cars and rentals.

The South African company has gradually become a global enterprise and its performance has been growing. In the past nine months as of March 31st, the revenue of the company has increased by 45%.

Now Steinhoff, like IKEA, is selling furniture to the world.

Steinhoff family leader Bruno Steinhoff 1964, founded the company in 1996, selling Western Germany furniture to East Germany to make money.

After a period of business in Eastern Europe, Steinhoff bought a South African furniture company in 1997, and then listed it on the South African Stock Exchange in 1998 years.

The key to Steinhoff's success is also low price.

For example, in Britain now, Steinhoff produces 1800 mattress mats every day, covering all kinds of brands and distributing them to Tesco, Marks & Spencer, etc.

Because the company started to build its own factory from the production stage, and the scale of the company was huge, bargaining power was strong, so the price of the product was reduced to the maximum extent.

Although many people call it "IKEA in Africa", Sean Summers Summers, chief executive of Steinhoff, does not agree with his own company and IKEA analogy. He said: "the only retailer to pursue the philosophy of" changeless and changeless "is IKEA.

Steinhoff is different in nature. "

Steinhoff is more of a market expansion through acquisitions. Now Steinhoff has covered 20 countries and has about fifty thousand employees, and more companies are letting local management run.

Although a large number of acquisitions have been made in various countries, Summers said, "it is vital that every entrepreneur be allowed to live, sleep, dream and eat in that country."

Recently, Steinhoff bought Mattress Firm, the largest professional mattress retailer in the US for about 2 billion 400 million US dollars. It is believed that Steinhoff began to expand to the United States.

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Steinhoff said the acquisition would create the largest number of Companies in the world.

The mattress retail sales network, with the help of Mattress Firm 80 distribution centers and 3500 stores, will quickly access the American mattress supply chain and retail channels.

This is only the latest acquisition of Steinhoff into the local retail market. Last month, they bought Poundland, a British retail store with about 900 stores, at a price of 597 million.

Almost all the stores in the company founded in 1990 are priced at one pound, and Steinhoff is buying it for retail business in the UK and Europe.