Rausch AG Kreuzlingen: People open up markets

S-GE not only provided us with the exclusive setting for our anniversary events in the Swiss Embassies in London and Riyadh, but also gave us access to industry experts and decision-makers that we would not have been able to reach on our own.”

Sandra Banholzer, CEO, Rausch AG Kreuzlingen

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

Like any product, hair care products have their own characteristics. The hair structure of consumers varies from region to region, but the problems are the same all over the world: hair loss, dandruff, itchy or sensitive scalps. That is why our broad product range works globally, even though it was originally developed for the Swiss market. Depending on the market, one or other product line performs better: in Asia, oily hair is a more common problem, while in desert regions, sun-damaged hair is more of an issue. On the one hand, we have an advantage with Swiss quality, but 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 a fine sense of local expectations is required. A good example is our caffeine shampoo with ginseng against excessive hair loss, one of our top products. In Korea, however, ginseng as an ingredient was met with skepticism. Although Swissness is always very well received, ginseng from Switzerland did not seem credible there. We were able to react without changing the formula, because the shampoo also contains watercress and other herbs. Watercress is very well established in the Korean market, so we renamed it “watercress shampoo” for this market. We do not adapt the products, but the presentation, in order to meet regulatory and cultural requirements. It is a misconception that you can cater to the whole world from the headquarters. The key is to remain locally relevant without creating unnecessary complexity – something that SMEs cannot afford.

What do you pay attention to when selecting new markets?

We analyze different parameters like demographics, income levels and beauty spend, which is the amount spent on cosmetics. But there are too many mistakes if you only look at numbers and facts. Sometimes, affinity and experience play a role. I would never send someone to France who would rather be in Asia. If someone has a passion for a region, you can feel it. And then it often works. On the one hand, we are aiming for geographic diversification to cushion regional crises. On the other hand, we as SMEs have to focus. For example, we deliberately put France on the back burner because the market is strongly dominated by local brands. We exited the Chinese market because it didn’t fit us.

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

You have to go there and see for yourself. Of course, we do a lot of research beforehand, but you can only really understand a market if you travel there, talk to the people and experience the environment. We recently took the entire Executive Committee to Saudi Arabia and Qatar. It is not only important that the direct contact person has a feel for the market, but all our employees should be aware of the needs of our target countries. After all, our job is to support our partners on the ground as well as possible. To do this, we have to listen and understand what they need, rather than simply presenting them with our standard solutions. Conversely, we also insist that our foreign partners come to Switzerland so that they can understand what makes us and our products special.

How do you find your local sales partners?

We have employees with experience and ideally a network in the markets we serve. S-GE also helped us to open many doors and make contacts. An ideal distribution partner must know his market landscape and not only understand but also embody our brand values “Naturalness. Efficacy. Well-being.” He must understand how our products are in demand in his market and give us feedback on what we can do to support him.

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. The idea was to test and learn. We wanted to see how customers in Asia would react. We gained a lot of important insights into the Asian market, for example, how to be present on Asian sales platforms. From the beginning, it was clear to us that we did not want to limit ourselves to online only. After three years, we therefore started working with a distribution partner in addition to our online shop.

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

Events like the International Trade Forum are extremely valuable – not just 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 seek dialogue with other companies. I ask other CEOs if our export experts can exchange ideas with theirs. When we enter a new market, we always first consider which Swiss company is already active there. We benefit greatly from the open and trusting business culture in Switzerland, because we always receive concrete advice and warnings. This has saved us from some nasty surprises and, on the other hand, has also allowed us to help other companies. Sometimes someone from outside brings in a completely new perspective. In any case, contacts and a reliable network are essential for us, because export is a people’s business.