Holzconnection has been offering made-to-measure furniture, without a carpenter’s surcharge, for more than 30 years. With 15 stores and its own production facility, the company is one of Germany’s leading suppliers of custom furniture. It can be particularly challenging for a family-run business to change fundamental things and to go with the times. Holzconnection shows how this can be done. It is a company where young and old work together to digitalize a traditional business.
A lot has happened since Denys Nagel took over the business from his father. The company started marketing on Facebook and discarded print and offline channels. The next step ultimately resulted in a change in production. "We are now a completely and thoroughly digitalized company. Paper and faxes have been eliminated," explains Daniel Gorr, Holzconnection’s head of performance marketing. Even though this long-standing company uses several channels for its digital marketing, customers are primarily acquired through Facebook. "You have to try and be present everywhere so that you can spread content a long way. Facebook is the most popular social media channel in Europe and it helps us to address customers directly." Holzconnection works with a mix of product advertising and experimental formats that are created in collaboration with agencies. They are used to convey Holzconnection's brand message in an entertaining way.
This Facebook strategy has paid off for the furniture manufacturer. Not only have sales risen by an average of 25 percent in its stores, Holzconnection has also opened five new shops in recent months and hired 15 new employees. What’s more, the company also benefits from the fact that online marketing activities provide improved measurability. This makes it easier for the company to assess customer preferences and to use this information to access new, promising locations. Holzconnection intends to enter new markets and plans to open shops in France, the Netherlands, Austria, and Switzerland.