Insights & Perspectives

Even before the outbreak of the coronavirus pandemic crisis, the German furniture trade was confronted with subdued economic prospects and declining overall sales. In February 2019 – incidentally, after a prolonged phase of moderate growth – the sector focus on furniture reported on the “ downward trend in the furniture market .” According to this report, the German furniture market recorded a decrease of 1.3 percent in 2018. Sales fell to 19.9 billion euros. A good year later the surprise came: 20.55 billion euros in sales in 2019, according to the home in March 2020, but in the same month the lockdown forced stationary trade to a standstill, while online sales skyrocketed. Are you also a cocreator of this up- and downhill ride? Has the lockdown, contrary to all forecasts, also awakened your buying mood? Especially online and with investments for within your own four walls? Then you will agree with the 61% of the respondents in the Oferista Group survey : they would rather invest in new furniture than in holidays. Kitchen, office, and garden furniture are in high demand – especially seating furniture and home-office solutions. For Jörg Balz, partner at enomyc in Berlin, this is reason enough to take a closer look at the background, the changing consumer trends, and their effects on the furniture market of the future. Which developments will have a lasting effect on the furniture industry, and which levers should be used now?

While the demand for garden furniture is rising, Lufthansa is waving the “homecoming guarantee” flag, clearly demonstrating that homogeneous customer needs can be identified and translated into intelligent and profitable services, especially in times of crisis. Which service has inspired you most recently and why? We have also asked Jan Ulrik Holsten, partner at enomyc, this question in our current podcast episode. He says, “Especially in times of crisis, when purchasing power is decreasing, the demand on the ‘customer journey’ increases. Brands and companies should now increasingly implement services or further develop their existing service portfolio.” How can the service business be organizationally anchored in the company, and what requirements result from this for service sales?

Manufacturing companies can also act as solution providers through digitization. RASTAL has done well in proving this with its Smartglass® concept. How can products be digitized in a tangible way and innovations be successfully implemented? We met RASTAL’s managing partner Raymond Sahm and the strategy expert Dr. Stefan Frings of enomyc for an interview: what did it take to develop a good idea and to transform it into a functioning product with a profitable business model?

How can companies increase their profitability by expanding their service business? What are the basics and success patterns for the further development of service as a growth driver? These were the questions we addressed last November in the first part of our blog post series on the topic of “Growth Through Service.” Economically speaking, Germany was on the verge of a recession at that time, but there were also initial signs of recovery. Today, we know that Germany will certainly enter into a recession as a result of the COVID-19 pandemic. Economic experts agree: Germany is in a state of crisis. The second part of our series of topics will therefore be devoted to service-based business models in times of crisis. What makes service-based business models particularly successful in times of crisis? Why is digitization an important driver for new service products, and how can services be developed in a customer- and value-oriented way?

While Germany is busy sewing fabric masks at home, closed stores, interrupted supply chains, staff cuts, and declining purchasing power are bringing the fashion market to its knees. Even before the coronavirus crisis, however, the fashion industry was in a critical state. Which mistakes from the past are now falling at the feet of fashion companies? It’s time for the fashion industry to take a close look in the mirror, say Dr. Christian Gerloff of Gerloff Liebler Rechtsanwälte and Dr. Michael Meister, director at enomyc. What will stationary retail look like in the future? Which hurdles will the fashion industry have to overcome, and how should medium-sized companies take advantage of the industry consolidation now? Learn more in our expert interview.

In crisis situations, companies that operate global sourcing become painfully aware of how sensitively supply chain disruptions can affect them and cause them economic damage. How can companies act proactively to be well prepared in the event of imminent or even acute supply and delivery bottlenecks? Rainer E. Volk, Managing Consultant at enomyc, has dedicated himself to the topic at hand.

Imagine that a company is in a difficult economic situation. The annual result is deep in the negative and creditors are demanding their money back. The shareholders, who also have money invested into the company, are now considering waiving part of the (interest) liabilities of the company. That sounds like a good idea. But what would be the tax consequences of this decision? What are the requirements for tax-free restructuring profits and how can the affected companies make the correct choices?