Velux: "We help trade to activate the market"
Velux: "We help traders activate the market"SubscribeSubscribePassCreate my accountPassLog in Search Magazine Magazine NewslettersServicesReturn to LeMoniteur.frMy accountMy informationMy newslettersMy personalized newsfeedAnalysis of JurisprudencesIndices-IndexMy contract Pass Contact LogoutHome >Trading >Velux: "We help traders activate the market"
INTERVIEW - Benoît Fabre has been managing the French subsidiary of Velux, one of the group's most dynamic, since January 1 last. It announces several measures aimed at strengthening service and proximity to traders and installers.
The Velux group is celebrating its 75th anniversary this year. How did you celebrate this anniversary?
75 years ago, in April 1942, the Velux brand arrived on the market with an innovation that was to revolutionize the home: providing natural light and fresh air in uninhabited spaces under the roof, thanks to at the roof window. Today, this innovation is completely in common use. We can, of course, rejoice in the progress made. But we are focusing on what remains to be covered, because we are convinced that we are facing a very bright future.
How would you sum up the positioning of the Velux brand today?
We contribute to the development of the habitat and the living environment, through the entry of natural light and fresh air through the roof. Our purpose is to offer comfort and a pleasant living experience, whatever the type of habitat. Our ambition is to be considered as the best provider of solutions in the eyes of our customers. To do this, we must work in total partnership with all of our customers, our customers' customers, from the prescriber to the end user, therefore. And, of course, with the key players in the chain, the distributor and the installer.
"Comfort is the real trigger for work, energy savings come in addition"
What are the keys to business today?
The key in all our markets, and particularly that of energy renovation, is above all the comfort of life, which is the real trigger for work. 64% of French people place comfort as the essential element of their habitat, according to a Promotelec study. Energy savings come as a prerequisite or in addition. For works as for construction projects, comfort stands out as the number one benefit in the eyes of customers. Another need is growing, that of a “healthy” habitat. In this context, Velux solutions provide decisive added value thanks to the entry of natural light and fresh air, while contributing to the energy efficiency approach. This last question quickly arose for us since, historically, our window made it possible to create a pleasant room to live in the attic! In 1969, for example, we were the first to introduce double glazing in carpentry. The last major wave of improvement in this area dates back to 3 years ago with the launch of our new generation of VELUX windows. This is a new patented insulation material integrated into the window, Thermo Technology. We have also developed peripheral insulation equipment, so that beyond the window, which is very well insulated, the complex that connects this window to the rest of the insulation is perfectly sealed. And we will continue this process of continuous innovation.
How would you define “healthy housing”?
It's a combination of criteria. Healthy living conditions come within the framework of comfort: we are going to talk about indoor air quality, humidity levels, the supply of natural light... In the end, everything that is beneficial for health. I notice that air quality is an increasingly significant issue, for which we have a common sense solution: ventilate its interior and circulate the air... The comfortable and energy-efficient house of tomorrow is above all an open house, which lets the air circulate, but in a controlled way.
Benoît Fabre, at the headquarters in Morangis (Essonne).- © © DRClose Lightbox
How is Velux doing?
In France and abroad, our company has been growing systematically in recent years, thus generating value for distributors and installers, all with a focus on the well-being of the user. In 2015, the growth of our turnover amounted to 5% in France, and we expect identical results this year. We are outperforming the market, and this is good news for us as well as for distributors and installers. We must continue in this dynamic, to support a construction sector that has been hard hit by the crisis.
"We want to double the number of installers promoting our products"
You have been in the job for 8 months. What are your priorities for France?
On the operational level, first, we need to activate the market, to continue our growth momentum. Our strategy is to offer each of our target customers the most relevant approach. In particular, we want to double the number of installers promoting our products. To achieve this, we are developing new sales and sales support tools. Of course, this needs to be backed up with training. More than 1000 construction companies are trained each year in our training center in Morangis (Essonne), certified CERTIBAT. Each training session is, for us, an opportunity to exchange with them, through round tables.
This “activation” is based on other actions?
This activation of the installers, we relay it to the distribution, in particular to our trade customers. To do this, we first listened to them to understand their needs, through our annual satisfaction survey. Three key points stand out, which we have been implementing since the beginning of 2016. First point: with digital, knowledge is everywhere. On the other hand, the development of digital technology has not necessarily increased skills tenfold, whether it relates to technique or advice. However, this skill is the major asset of trading, and it is maintained. With this in mind, we have transformed our 5 regional agencies into as many local training centers, open and dedicated to trading. We offer half-day training sessions and through very pragmatic modules. For example: “How to better sell Velux solutions”. In our vision, the trading teams maintain leadership in the commercial relationship with installers. By the end of July, more than 1,200 trading employees had come for training.
"It is in the process of selling to the end customer that the ATC can bring its added value to the craftsman"
Have you had any feedback from the traders on these training sessions?
Yes: the merchants appreciate that we discuss both ways to sell better and everything that will facilitate the work of their installer customers, particularly in their relationship with the end customer. We have made choices and, in particular, favor the sales aspect over the technique. A technical-sales associate (ATC) of the trade has, in front of him, an installer who often has more technical skills than him. It is in the process of selling to the end customer that the ATC can bring its added value to the craftsman. For example, by providing him with the elements which show that the amortization period of the development and insulation of the attic, only 3 years, makes it an extremely profitable investment. This is how we contribute to activating the market and triggering projects.
What are your other approaches to trading?
The overhaul of our commercial organization also aims to strengthen the personalized support of trading agencies, with a deep conviction: each situation is specific, depending on its geographical location, its catchment area, the type of customer... We We must therefore stick as closely as possible to the priorities of each trading agency, in partnership with them, in order to define the most relevant levers: training, monitoring of the stock plan, joint commercial operations, etc. We offer a wide range of possibilities . The objective is for the Velux commercial duo (one sedentary, one itinerant) assigned to each trade to define a tailor-made action plan.
"Our T&Cs are more readable for trading"
You have also changed your general terms and conditions of sale (T&Cs). What purpose ?
We wanted to make them more readable and more dynamic for trading. Here too, they allow everyone to choose their priorities by deciding on which type of product to focus their efforts, for example, how each type of product is remunerated. We are also making a strong proposal in terms of stock, so that its rotation is even faster, to be more profitable.
You insist on logistics. Have you found your optimum or can you progress?
I would say that we are in a process of continuous improvement and in perpetual questioning. In terms of process, we started at the end of May the deployment of a new internet tool so that the trade can place its orders online, follow the status of the order, the delivery, consult its invoices... This software even allows them prepare quotes for customers. Everything is done à la carte.
Benoît Fabre.- © © DRClose Lightbox
In trading, the market is consolidating and the major centers are developing new IT tools. How do you interpret it?
We are fortunate to have well-structured distribution networks in front of us, whether groups or groups, and they mesh the territory very well. This organization allows them to fully understand the challenges, and we are committed to supporting them by providing them with tools, materials, content and processes to be effective on the market.
How do you assess the economic situation in trading?
The situations are very disparate in trading. Our sales have always been more dynamic north of the Loire than to the south, and this is quite logical given the culture of sloping roofs. But there are many nuances. For example, I note that certain market segments, such as light pipes, are very dynamic in the south. This illustrates our desire to be tailor-made. This is all the more important as the merchants are more or less specialized in our solutions. For example, some prefer a large stock to offer the best service to their customers. Once again, we are there to support their strategic choices. Not to decide for them.
How do you position yourself on BIM?
We are ready and our development has followed a logic of reasoning in terms of benefits for each potential user. As an industrialist, our position is that specifiers but also all other users in the value chain must have the tools necessary for BIM design. BIM Velux objects already exist, are available online, and our sales representatives are equipped with mobile tools and USB keys containing all the necessary information.
"Digital is a complementary way of addressing the same customer"
And about the PIM?
We feed the databases of all the actors who request it, with enriched content, for example photos and videos, installation instructions... This goes, if necessary, to the inspirational content, in a “deco” spirit.
What is digital changing in your job?
What seems to me fundamental to appreciate, in digital, is that it is only a complementary way of addressing the same customer. It is not a question of separating the universes: the customer, whether user or installer, is unique! He will obtain information partly from offline (catalogue, magazine, etc.), and partly from online (site, newsletter, etc.). But we are addressing the same person. Online will enrich the relationship with our customers, offer them more points of contact and services, and richer content. And, ultimately, help them make the right decision.
What are Velux France's other priorities?
Activate the market! This is why, for example, we carry out communication initiatives with the general public, in order to energize the market and trigger purchases. I am thinking, for example, of our communication work around the development of the attic. The objective is to show the individual that converting their attic and making it a living room is both easy and profitable. Profitable because you create additional m², and the payback period is fast!
"In renovation, our goal is to make it easier for individuals to make decisions and move projects into action"
What is your vision of the future of Velux in its markets?
In addition to all these projects, we are working on the growth of tomorrow. It is based on the notions of relevance of our products and, above all, of our solutions. It is simplistic to speak only of products. These are our solutions which, as a whole, contribute to the comfort of life. We are thinking about how we will be able to continue to activate the market, to revitalize individual housing, our natural market, but also, in new buildings, collective solutions. In renovation, the objective is to facilitate the decision of individuals and the passage to the act of projects, for example in the case of development of attics or elevations.
You also offer ranges of blinds under Star Wars license. For what ?
Whatever the need we have to offer a solution. We are, in this specific case, in a logic of decoration: it meets a need that is not only functional, in this case to hide the light. There's Star Wars this year, but there were also characters like Mickey, Winnie the Pooh... And the diversity of colors is phenomenal! Customers appreciate it.
You are also distributed in GSB. This network is an integral part of your strategy. ?
We want to be present wherever our customers are. We are distributed in GSB because it is a channel where the individual can visualize complete solutions, put in situation, and with a merchandising adapted to the general public: the customer can obtain the equipment of our windows like the sun blind, the blackout blind, the roller shutter… You should know, for example, that we sell on average one roller shutter for four roof windows. And there are still efforts to be made so that installers systematically offer this equipment as soon as the window is installed. But each point of sale has its specificities. Some businesses also have a strong orientation towards the individual. We then work with them on specific merchandising.
"Sharing information with the trade is more than ever a key element"
Velux has its own e-shop. What is its purpose ? Direct selling?
Our online store was launched in 2009. It has three reasons for being. Its first objective has not changed: to ensure an effective presence of the VELUX brand on the Internet, where the end customers are also, rather than seeing lower-priced players do it for us. Then, this site is primarily intended for the end consumer. He can discover 1500 references there, a variety of choices that it is impossible to present at a physical point of sale. The vast majority of these are blinds and accessories, and this allows us to highlight a wide variety of finishes and colors. Finally, this site is also commercial, of course, but this is not its primary vocation: online sales are infinitesimal in our turnover. The e-shop The online store helps us better understand the needs and constraints of our Trading customers when they sell online themselves: what information does the customer need, for example.
Ease of installation is a recurring project. Do you work a lot on this axis, for example in a logic of "do it yourself"?
The installation of our roof windows is carried out in the vast majority of cases by a professional installer. Our thinking is more like this: how can we provide better service to installers and make their job easier? The challenge is met because the ease of installation is combined with robustness. The installation guarantees peace of mind for users throughout the life of the product.
What messages have you sent to traders since taking up your post?
I emphasize to them the exchange of data, especially inventory and sales data. The fact that the trade shares them reinforces the relevance of our actions and allows us to propose better stock plans and commercial animation, therefore, to improve the profitability of the trade. This sharing of information is more than ever a key element. It is based on a win/win approach.
"Our role is to defend value"
Price pressures are being felt in trading. What is your position ?
The price is set by the market. Our role is to defend value, which is based on innovation. The current rate of our commercial operations, 3 to 4 times a year, seems sufficient to us. But a commercial operation can see its value increased tenfold if we also formulate a clear message on innovations of all kinds. One of our latest operations involved, for example, our polyurethane roof window. Its particular added value is that it does not require maintenance. This message is positive for everyone.
On April 25, your group joined the Global Buildings and Construction Alliance for the Climate. What is it about?
This Alliance was implemented following the Cop21, and it brings together several players from the construction world. What seduced the VELUX group is the concrete and operational aspect, which joins our DNA. "One experience is better than 1000 expert opinions", said our founder, Villum Kann Rasmussen! The Alliance allows signatories, which are companies, research centers, to share their lessons and their experiences of sustainable buildings, around a program of operational, reproducible and appropriable actions. This is part of our vision of social responsibility. The building sector absorbs 40% of total final energy consumption, and represents 36% of total CO2 emissions. So we can have a strong impact! Especially since 90% of the buildings that exist today will still be in service in 2050! We must therefore commit now to designing solutions for a healthy renovation of the existing one. And, I repeat, comfort must be the common thread in this implementation of energy efficiency.
Velux in figuresCA of the VKR Group (head holding company of the Velux Group)
€2.3 billion in revenue in 2015
The VELUX Group is present in 40 countries
9500 employees
11 production sites worldwide, including 8 in Europe
Velux France
France is in the Top 3 of the Group's markets in terms of turnover, with Germany (the group does not communicate results by country)
5% growth in turnover in France in 2015. An identical dynamic is expected in 2016.
5 sales offices
280 employees for the commercial company (900 jobs including the workforce of the production sites)
4 production sites in France
Source: Velux, June 2016
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