Rausch AG Kreuzlingen: People Open up Markets

How can a Swiss SME meet the needs of a wide range of countries?

Like every product, hair care products have their own special characteristics. Consumers’ hair structure varies from region to region, for example, but the problems are the same all over the world: hair loss, dandruff, itchy or sensitive scalp. This is precisely why our broad product range works globally, even though it was originally developed for the Swiss market. Depending on the market, one or the other product line will do better: in Asia, greasy hair is more of an issue, while in desert regions, it’s more about sun-damaged hair. On the one hand, we have an advantage with our Swiss quality; on the other hand, it means that the products cost a little more. However, we can compensate for this with better service.

Is a Swiss solution suitable for the whole world?

In principle, yes, but sometimes you need a keen idea of local expectations. A good example is our caffeine shampoo with ginseng to combat excessive hair loss – one of our top products. In Korea, however, it was the ginseng that met with skepticism. Although Swissness usually goes down very well, ginseng from Switzerland did not seem credible there. We were able to respond without changing the recipe, as the shampoo contains pennywort and other herbs besides ginseng. Pennywort is very well established in the Korean market, which is why we renamed it “pennywort shampoo” for this market. We don’t adapt the products, but the way they are presented, in order to meet regulatory and cultural requirements. The idea that you can satisfy the whole world direct from your headquarters is a fallacy. The key is to remain locally relevant without complicating things unnecessarily – otherwise as an SME we wouldn’t be able to manage it.

What do you pay attention to when selecting new markets?

We analyze various parameters such as demographics, income levels and beauty spending, i.e. expenditure on cosmetics. But only looking at facts and figures results in too many mistakes. Sometimes affinity and experience also play a role. For example, I would never send someone to France who would rather be traveling in Asia. When someone is passionate about a region, you can feel it. And that often leads to success. On the one hand, we are aiming for geographical diversification in order to mitigate regional crises. On the other hand, as an SME we need to stay focused. We deliberately put France on hold, for example, because the market is heavily dominated by local brands. And we got out of the Chinese market because it didn’t suit us.

How do you stay up to date with developments on the international markets?

You have to form your impression on the ground. Of course, we do a lot of research in advance, but you can only really understand a market if you travel there yourself, talk to people and experience the environment. We recently traveled to Saudi Arabia and Qatar with half the management team. It’s not only important that the direct contact person has a feel for the market; all our employees should be aware of the needs of our target markets. After all, it is our job to provide our local partners with the best possible support. To do this, we need to listen and understand what they need, instead of simply presenting them with our standard solutions. Conversely, we also insist that our foreign partners come to Switzerland so that they understand what makes us and our products special.

How do you find your local sales partners?

We have employees with experience and ideally with a network in the markets we serve. S-GE has also supported us in this process, enabling us to open many doors and establish contacts. An ideal sales partner needs to know their market landscape and not only understand our brand values of “Naturalness. Effectiveness. Wellbeing.” but also embody them. They need to understand what the demand for our products is like in their market and give us feedback on what we can do to support them.

Do you always rely on partnerships or do you choose different paths?

For us, local distribution partners are usually the first choice. But we are also willing to try new things. For example, we opened our own online shop in Singapore to get to know the market better. This was our first online shop outside of Switzerland. It was all about a “test and learn” approach – we wanted to see how customers in Asia reacted. This enabled us to gain a lot of important insights into the Asian market, such as how to compete on Asian sales platforms. We knew from the start that we did not want to limit ourselves to online in the long term. After three years, we also started working together with a sales partner.

How do platforms such as the International Trade Forum help you?

Events like the International Trade Forum are extremely valuable – not only because of the content, but also because of the people you meet. I firmly believe in human relationships and that it makes sense to invest in them. We aim to engage in dialog with other companies. I ask other CEOs if our export specialists can talk to theirs. When we enter a new market, we always consider first what Swiss company is already active there. We benefit immensely from Switzerland’s open and trusting business culture, as we frequently receive specific advice or warnings. As a result, we have been spared some nasty surprises and have also been able to help companies ourselves. Sometimes someone from outside brings in a whole new perspective. In any case, contacts and a reliable network are essential for us, because exporting is a people’s business.

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