Rohan Amirthiah, Managing Director of Würth Lanka, outlines the strategies and key factors behind the company’s 25-year success in Sri Lanka’s automotive aftermarket. Würth Lanka revolutionized Sri Lankan sales by introducing direct selling to a diverse range of customers, breaking away from the traditional approach where mechanics and vehicle owners had to independently find repair materials.
Amirthiah recounts, “We directly brought our products to the customers, letting them experience the quality firsthand. We followed the footsteps laid down by the founder of Würth, Professor Reinhold, eight decades earlier in Germany, presenting a wide array of car repair products, from small parts to larger equipment, while showcasing the best of German quality and innovation.” The company’s hands-on approach and education of technical workers on these new products were pivotal in establishing its brand identity.
Amirthiah credits WürthLanka’s success to three main factors: superior German products, a direct sales approach, and a robust market presence supported by an expanding sales team. He notes that, unlike competitors, Würth Lanka prioritized regular, face-to-face customer interactions, cultivating enduring relationships and ensuring repeat business.
“Our cross-sector strategy, from automotive to construction, underscored the value of personal connections in sales. While digital commerce platforms began to appear around 25 years ago and mostly offered low-cost, cheap items online, Würth stayed the course by investing in people who would engage with customers and give them hands-on experience with the Würth products, often lost in online settings,” Amirthiah explains in an interview, the excerpts of which follow:
What are the core competitive advantages or unique selling points that differentiate Würth Lanka from its competitors in these sectors?
Würth Lanka differentiates itself from competitors in the automotive aftermarket through a diverse product range and a robust sales force. We have the most extensive product range in the industry, offering tools, equipment, maintenance chemicals, fire and combustion products, fasteners, fittings, and personal safety products. This wide range enables us to meet a variety of technical worker needs across different fields.
Our sales strategy is proactive and personal. With over a hundred sales representatives, we’re able to directly engage with a thousand customers daily, creating numerous opportunities for sales. This direct approach sets us apart from competitors who rely more on passive advertizing and marketing.
Financially, we’re backed by a German parent company, ensuring stability and resilience against market fluctuations, political unrest, or natural disasters. Despite the influx of cheaper products from countries like China and India, we’ve maintained a reputation for quality. Our products, like Würth wiper blades, are recognized as top-tier despite higher prices. This quality-over-price strategy has earned us a leading position in the eyes of our customers.
We also place a significant emphasis on our sales team. We invest in their training to ensure they are not just product experts but also skilled in customer engagement and motivation. This approach helps us build strong relationships with our customers, offering them value beyond the product. Our vision is to be the first choice for customers, not only for our products but also for the quality and expertise of our sales team.
Over the years, Würth Lanka has built strong partnerships in the automotive, construction, and metal maintenance sectors. How do these relationships contribute to the company’s ongoing success, and what strategies does Würth Lanka employ to maintain and enhance these relationships?
Initially, we faced competition and noticed customers opting for cheaper alternatives, often leading to dissatisfaction. To counter this, we shifted our approach to helping customers generate profits through our products, transforming their perception of us from a cost to a valuable asset.
We invested heavily in brand building through sponsorships, racing events, and exhibitions. This visibility in workshops made customers demand our products, creating a pull effect. We also formed partnerships with workshops, offering free equipment and encouraging them to become exclusive users of Würth products. This strategy extended to creating Würth-branded service centres, increasing consumer trust and recognition.
In the automotive sector, we adapted to market changes, such as the inability to import new vehicles, by assisting workshops in generating revenue through product programmes that include detailing services with various options for car beautification, emphasizing the concept of value-added services. We introduced package deals beyond basic car maintenance, incorporating our products into essential services like battery care, window shutters, and brake services.
Quality became a key selling point, leading to repeat purchases. Additionally, we maintain strong relationships with our customers through annual training, staff fellowship events, and reward programmes. We advocate the importance of profitability for business sustainability, advising against undercutting prices at the expense of profits.
Our strategy also includes educating customers about the benefits of working with established firms like ours, which offer warranties and after-sales service. We showcase our warehouse and operations to illustrate our commitment to quality and customer service. This holistic approach, combining product quality, value-added services, and strong customer relationships, underpins our strategy for ongoing success and growth in the industry.
What are your plans for growth and expansion in the coming years?
In the next five years, our growth strategy focuses on expanding our product range and entering new markets. Despite a steady 20% annual growth over 25 years, we aim to grow beyond our current size compared to major industry competitors. Part of this plan includes diversifying into high-demand areas like automotive oils.
We’re enhancing brand visibility and customer experience by opening physical brand shops in major towns, primarily serving as brand ambassadors rather than sales hubs. Our move into e-commerce and digital marketing involves platforms like ApiGo, Best Buy, and Daraz, targeting a broad customer base, including those seeking DIY solutions for home maintenance.
Our expansion also strengthens our presence in underrepresented areas like construction and metal maintenance. We’re redefining our automobile segment to cover broader mobility solutions, addressing maintenance needs for various transport modes including bikes, buses, trains, boats, and agricultural machinery. This comprehensive approach aims to fortify our brand’s reputation across all customer levels, maintaining Würth as a top market choice.