Alfred Karcher GmhH has all along been bringing in innovations specially focusing either on high-end market or low-end market segments. However, this time Karcher won the ISSA Interclean Innovation Award at Amsterdam for designing a MopVac, manual tool with automation. Delivering solutions of such kind, especially to countries like India, China and Brazil, Markus Asch, Deputy Chief Executive Officer, Vice-Chairman of the Board of Management, Alfred Karcher, Chairman of the Cleaning Systems Association of the VDMA (German Engineering Federation) and President of EUnited, the European Engineering Industries Association and Ruediger Schroeder, MD-Karcher India, talk about many more products in the pipeline in this range.
Markus Asch: Innovation often indicates that the product is something complex and complicated with IT and a lot of technology. There are ranges of machines with fantastic technology, but our understanding of innovation is something that provides value to market segments. We introduced a product in the borderline of two markets – between manual and automatic machines.
When B60/10C MopVac was developed, there were challenges and concerns as it was something that existed nowhere. On the one hand, we found it opening up new market possibilities and on the other hand, we knew it was simple. But, we were so enthused when the first customer saw it and said “that’s what I need”. When customers reflect and try what we do, we already have the first possibilities of the locations where this product is needed. So we had the courage to invest and to say, we don’t come with a freaky fantastic innovation, we come with an innovation that opens a totally new category and a totally new possibility. I honour the statement from the jury of the Innovation Award: “Nobody ever has thought of a similar system”. Looking at India and other similar countries where there are people to clean, the need for electronics or batteries or even machines is least. But here we have a system that will improve productivity so heavily.
Market Segments
Ruediger Schroeder: The main targets for Karcher India, right from the beginning, have been shopping malls, airport, hospitals, etc. In the coming years, in a lot of these places, especially malls, we will see mops being replaced with B60/10C MopVac, as it is more efficient and cleans better. The product looks more like a system than just a mop.
Markus: There are two major differences between the two mops: A regular mop just evenly distributes the dirt. It is a tough message but it’s what it is. But the new Karcher mop system applies water on the surface and takes it off too. So at least, we get a permanent injection of fresh water and not always a detergent-water-dirt mixture on the floor. Secondly, the biggest challenge with regular mopping is wet floor and it creates a safety problem. A huge amount of development has gone into the new B60/10C MopVac based on revamping the usual movement of mopping to generate a pneumatic that takes away majority of the water and after a very short time, the floor is actually dry and safe.
Sophisticated system for India
Ruediger: Today, we have different market segments with customers who are looking for newer and better solutions and are willing to spend that money rather than the ones who find them too expensive and continue with manual labour.
The market is big enough and we see a good success in the near future with this system, especially in the BSC sector. These systems do require after sales service but less on a machine and more on the mop.
Ruediger: There is a market developing for steam cleaners and Karcher last year introduced a high powered steam and vacuum system for kitchens, hospitals and also for shopping malls. The costing may be high here but there are enough customers in India looking for solutions and want to be detergent free.
Markus: We figured out that market requirements are different in various regions. Earlier, we used to develop products for the bigger and advanced markets in Europe and America, where we could cover 50% of the market. In India, China or Brazil it would be just 10% forming the top segment.
If we want to cover 50% of the market segment in all countries, it means a different solution in India and in the US or even in Singapore. We have launched more and more products, though not for the entry level user segment. The focus of such machines is more on simplicity and reliability and not on too many gimmicks.
An innovation for the purpose of innovation might be nice, but what is the value addition?
– Markus Asch
Typically in India, the machines are used for longer duration compared to Europe and North America and are focused on ease of service. We are launching a vacuum cleaner wherein in 37 seconds a turbine can be changed. Turbines offer up to 400 hours and can be replaced by undoing just three bolts.
We have launched pressure washers with exactly the same focus because they are being used 18-20 hours a day in India. Looking into the future, we will also launch scrubber dryers with the same focus – very simple and adapting to the local requirement. In innovation, there is simplicity and ease of service.
Marketing Strategy
Ruediger: We need a good distribution network and we already have 10 branch offices in India with trained sales people who can go in all major areas, explain new products and do demonstrations. The branches are also equipped with equipment which can be used to explain to the customers the performance of the machine as promised by the sales.
Besides demonstrations, we are also conducting seminars for our customers like we were doing along with Clean India Journal earlier. We have just finished a series of eight seminars held every two months where we introduce technologies. The next eight seminars will be on steam cleaners. We try to educate the customers and help them to understand the technologies and cleaning solutions that are available so that they can decide whether they want to spend money on them or not.
Markus: Two years ago, the Association – VDMA – started the training programme in India. The whole purpose of starting this programme is to raise the level of knowledge of technology and its benefits. So we are through training organizations, training cleaners to get to a higher level and to drive efficiency. We have been recognized within the Association as a shining star for imposing and introducing training programme and therefore, providing quality to assist cleaners.
Ruediger: We are also initiating to get recognized for this education from the National Skill Sport in India. This is in the process and by the end of this year, we hope that we will be recognized by the government and this will boost the programme even further.
Karcher India positioning in the global map
Markus: Products by itself will not bring about the difference. Right products with right solutions and as per the local requirement is what we provide internationally. India is big and quite different and that is why we are heavily investing in every region. While we have regionalised operations, sales and services, the quality, knowhow and technology has to be transported. One of the first tasks is to develop the region, develop the people and develop the competence step by step based on priorities.
Education process is very important in India as people don’t know what is available.
– Ruediger Schroeder
One side it is not like you spend a couple of lakhs you need the products but you also need the organization for it.
Filling this gap
Ruediger: In principle, the market dynamics in India are not very different from that of other markets. Since labour is easily available, the right ways of cleaning are not always followed. So it is a process we can only try with training, education and publications to educate people and make them understand what is right. It is a process and cannot happen overnight. But we see a lot of companies in the BSC sector, the bigger ones and also the middle level companies that are quite progressive in their approach. I am very optimistic that the standards of cleanliness and hygiene will grow very fast in India in the coming years. We will try to do our best to help the market.
Markus: We had a meeting and discussed the need to raise the awareness of cleaning in the market in totality.
You deserve the right for a clean toilet in the hospital and airport because you paid for it. A BSC cannot bring about the change and even if you speak to the customer of the BSC, they too would not be able to do anything. But if you ask the public, they will do it. If we raise the value of cleanliness in the public this will change the way our industry will go. And this is our plan. We try to do it now with many Associations in Europe; it’s a vision and a dream.
The question is, why is it that today companies invest in nice coffee machines because they want to treat their people right. But they reduce their cleaning schedule – five times or three times a week. This is because nobody first of all understands the value and sees what’s happening.
In India, in hospitals people are now starting to understand that hygienic places are required. But still there are hospitals where people have not understood the message as yet. It will come.
If you take the shopping malls, about 20% of them are of top class. They are clean. People have spent money on that because they know if it is not clean, they will not have the audience. Others will see that and follow. Cleaning is not an investment in India but a necessary evil and an expense.
Markus: For us India is a challenge on one side and a fantastic opportunity in the future. We know it takes investments in building the future and that’s what we are willing to commit than what we are doing presently. What we can state is that we have a clear commitment to India.
Ruediger: Karcher has a very clear vision for India. When I joined I was very convinced that it will be a lot fun to work for that company because they really see the potential of India and they also see the challenges; they are committed and are willing to invest to make India one of the key players in the future. If the development in India continues to grow hopefully 8-9% annually, we see a lot of growth and we want to do it right. We want to be the market leader in India. There is only one way India can go…
Steen Fellenius
Vice President, Business Development
Nilfisk Advance
In the global perspective, we have a strategy for fast growing economies – China, India, Russia, Brazil Mexico and Turkey – where we would like to do something more and India is a very interesting market.
Middle East is also an interesting market to us and at the same time is a difficult market to operate in. As a western company operating in these countries, having local partners and building relationship with them is extremely important. It is similar to India and that is also one of the reasons why it is a challenge to get a strong foothold in India.
It is important to have a good networking and a detail understanding of how to operate in India. In the past years what we missed is the understanding of the Indian cleaning market and that is why we have Sunil Kapoor in India with a good networking. We are a very small player but I can see times of great improvement in the future. We will be giving full support for India.
When we defined the strategies specific for the six countries, what we decided was to give more attention and increase visits to several times during the years to understand what is happening in each of these countries. We also decided to invest more in these countries compared to other parts of the world, like Holland or Germany.
We have a good range of equipment and when it comes to human factor, we are making sure that there are right kind of people who understand the customer and their cleaning requirement, we have the time to establish relationships and gradually improve the sales. We also know that in India it is not just important to improve sales but it is also important to have good after sale service. Further, there are already established brands in India which are stronger than Nilfisk. We acknowledge that it will take time for us to establish ourselves but we are determined to do it.
Looking in the rear view mirror when we studied the six countries, we probably underestimated our competitors, who have already established themselves in several of these markets invest in India. We came in late too and did not sufficiently and heavily. We also underestimated the differences in these markets in terms of the culture and market dynamics and what we specifically need to do in these markets in order to be successful. We are still learning.
keep on investing in Indian market with this positive spirit.
Alessandro Costantini,
Export Sales Manager
Tecno Trolley System SRL, Italy
In the last few years, TTS has carefully monitored the requirements of Indian professional cleaning market and has successfully introduced a complete product range for janitorial, healthcare, housekeeping and waste management segments. TTS has presence in many market segments in professional cleaning – FM, industries, community, HoReCa and healthcare through distributors and partners in India. Our aim is to elevate the quality standard of healthcare market providing the best of our innovation and problem solving products like Clean Glass and Magic trolleys to FM/cleaning contractors; Hotels, Restaurant, Catering(HoReCa) market with high professional solutions combining both luxury and functionality.
Productivity (time & manpower saving) is not always considered a priority and on the other hand, if a cleaning system is nice and efficient, users recognize and appreciate it immediately. The market potential is huge but it really takes time to be expressed. Training and seminars for users and sales team are essential to increase professional awareness.
We have noticed an increased interest in India for high quality cleaning solutions, combining simplicity and high performances. The market is moving slowly, but with consolidated firm steps in the direction of innovative systems.
Our new challenge is now to expand the presence of Trilogy – a unique double sided cleaning frame with its multitasking assortment of microfiber mop heads (Tri Mop) – and Dosely, a new concept to soak all mop heads on demand directly in the trolley.
TTS is considering strategic increase of awareness, information and training on the latest cleaning technologies and innovation. From this point of view Clean India Journal and Clean India Shows are playing a key role.
Brad Betz, Vice-President, Betco, USA
Barrett Betz, Business Development Representative, Paul Betz, CEO and Brad Betz
Betco has been participating mostly in end user shows in USA and has made its debut at ISSA Interclean this year. About 98% of Betco’s sales are in the United States, Canada and Mexico. “We have been coming to this Show for the last six to eight years now but this year we participated to see what kind of opportunities come about. We see unique and interesting opportunities.
We are focused on growing our international distribution and have partnered with Klinox for marketing our innovative products in the large Indian Market. There are a billion people living there in India and the opportunity is enormous.
We have a full line of cleaning products from chemicals to equipment and other specific products focusing on total solutions for solving user needs and providing a cleaner and healthier environment for those markets.
India is a growing economy and it needs cleaning innovations to help sustain the health of the country and so we are hopeful about providing solutions for a cleaner environment for the people who work and live in India.
We have a packaged programme for product marketing and sale support training focusing on the US market. Hiren Modi of Klinox who has learned how we go to market will take that learning and deploy them in India. We will have the opportunity to leverage our 60 years of business experience in understanding India.
Stefano Salducco, Product Manager, Menikin pulito e Benessere
The basic strategy for selling is in showing the machine to the end customer. The best way to display is to participate in exhibition where you can educated the people about the product. In this way they can understand the technology and the application of the machine. Then in time we are sure that people are aware about the product.
Participating at ISSA Interclean, especially in the Steam Cleaning pavilion along with the competitors, we were a bit afraid at first. But the concept is good, as only the people who are interested in steam are here.
Mohana M.