COMPANY PROFILE
2014
Jurgens Ci
company profile
A business at home in the wild outdoors Production: Chris Bolderstone Editorial: Christian Jordan
When Jurgens Ci was founded in 1952, no one could have predicted how far the company would go. Today, as Southern Africa’s largest manufacturer of caravans, motorhomes and specialised conversions, Jurgens Ci is a company setting a quality example to the rest of the industry.
In 2008, BBC and Top Gear presenter, Jeremy Clarkson said that there was no upside to caravan holidays claiming that these vehicles ‘clog up the roads for no good reason’. However, it seems that not many people agree with the self-confessed caravan hater. Caravanning becomes more and more popular every single year and with the quality and availability of caravans increasing all the time, it’s easy to see why people are more than happy to hitch up and head out into nature with nothing but their trusty trailer. Some people say that after the global economic crisis, international travel has become too expensive, especially for people with large families and domestic travel; camping and caravanning; especially in a country like South Africa, with all its natural beauty, is equally as attractive as going abroad. Tourism in South Africa is big business; with both international and domestic tourists contributing a huge amount to the economy. The Department of Tourism said in May that foreign arrivals in South Africa reached their
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highest level ever in 2013 as the country’s international tourist numbers approached the 10 million mark. According to figures for the period ending December 2012, direct tourism contribution to GDP grew from R83.5-billion in 2011 to R93.3-billion or 3% of GDP in 2012. At the same time, tourism contributed approximately 617,287 direct jobs in 2012, amounting to about 4.6% of direct employment in the country, up from over 591,785 direct jobs in 2011. In 2013, the South African Tourism marked the start of Tourism Month with the launch of a new marketing campaign, combined with various affordable holiday packages, aimed at growing the number of domestic travellers in the country. Domestic tourism is now seen as a vital part of the country’s overall tourist offering and former Tourism Minister, Marthinus Van Schalkwyk said as part of his Domestic Tourism Growth Strategy (2012-2020): “South African tourism was not spared the impact of the past few years’ global financial crisis… Domestic tourism provides immense opportunity for contribution to national priorities such as economic growth, job
Jurgens Ci
creation and poverty alleviation.” And caravans and the caravanning industry provide a huge contribution to the domestic tourism market, with almost unlimited potential for the amount of jobs that can be created and the amount of revenue that can be generated. The typical caravan owner demographic is changing, not just in South Africa, but all over the world and the industry is now attracting younger, more affluent participants. International business research company, Mintel said in a recent report on the caravanning industry: “This holiday style retains its greatest appeal to more working class C2D families but can also be more widely attractive for many: the imagery of gathering around the camp fire telling stories or singing, for example, still possesses an elemental power, perhaps more so in an age of growing social isolation and virtualised online social relationships. “The young family life segment (persons aged 30-39 years) may present one of the most significant opportunities for the industry over the coming decade.” And even with the departure of Van Schalkwyk as
Tourism Minister, his replacement, Derek Hanekom has vowed to continue the development of domestic tourism saying at the start of this year’s Tourism Month: “To reach our target of 18 million domestic tourists by 2020, as set out in the National Tourism Sector Strategy, we will have to work hard to ensure that tourism is more affordable and more accessible to all South Africans. “We are committed to ensuring the wonders we boast and the unique heritage we have been endowed with are shared by an ever-growing number of South Africans.” So as the domestic tourism market grows in South Africa, surely the opportunities for a company like Jurgens Ci will inevitably grow too? Today, everything looks very positive for this Southern African industry leader, now in its 62nd year of operations.
LEADING PRODUCT LIST After opening up in 1952, this Pretoria based organisation is now the ‘go-to’ name when it comes to caravanning. Its experience and knowledge comes from years of innovation
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company profile
Established in 1947
SPECIALISTS IN : • SCREEN & PAD PRINTING • TOOL ROOM & PATTERN SHOP • DESIGN & TECHNICAL SERVICE • LASER CUTTING
• VACUUM FORMING • INJECTION MOULDING • PRESS MOULDING • PLASTIC FABRICATION
INDUSTRIES SERVICED INCLUDES : • CARAVAN WINDOWS • COSMETICS • INDUSTRIAL
• PHARMACEUTICAL • LIGHTING • MEDICAL
Tel: +27 11 248 8000 Fax: +27 86 524 8132 email: sales@durattract.co.za
and development and the pioneering company is always on the look-out for chances to expand. Jurgens Ci is Southern Africa’s largest manufacturer of caravans, motorhomes and specialised conversions. “You can count on us for unmatched expertise and experience. Our network of dealers throughout South Africa and Namibia, and our exports to Australia, Holland and New Zealand, offers a full range of products, after-sales service and sales of parts and accessories. “As for our products, we offer you four world-class caravan brands as well as specialised units that meet the demanding needs of off-road enthusiasts and 4x4 travellers,” the company states. Jurgens Ci, owned by Imperial Holdings since 2007, has a vast product range with many different models. This includes the Splash, Sprint, Swing, Gypsey Regal, Expo, Fleetline, Classique, Elegance, Exclusive and Penta models, but it’s probably the Sprite range for which the company is most well-known. This compact but functional range provides excellent value for money. The Sprite range is lightweight, making it easy to tow and manoeuvre, and it’s also easy on the eye. The Sprite Tourer, according to Jurgens Ci, is: “Ideal for a couple
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• ELECTRONICS • TOBACCO • FIRE & SAFETY
P.O Box 438, Crown Mines, Johannesburg, South Africa, 2025 Website: www.durattract.co.za
or a couple with one child. There is a double bed plus the dinette converts into a single bed. You can camp at out of the way places where there are no electricity points as you have your own battery system that charges while you are driving. You also have a pull out kitchen and the pull out fridge/ freezer can be accessed from either inside or outside.”
STRONG BUSINESS MODEL The business model of Jurgens Ci is almost the perfect business model; build quality, offer convenience, value for money and great service, and maintain strong relationships with clients. If all businesses followed this model, we would surely have many more companies lasting 50 and 60 years. Jurgens Caravans are sold through more than 36 dealers countrywide and are also exported to foreign markets. Because of this convenience, customers are not left waiting or wanting from a manufacturer that is hundreds of miles away or in a different country or continent. The focus on quality comes right from the very roots of the company and founder, Mr Geert (Oubaas) Jurgens, a coach builder who emigrated to South Africa in 1950 and started Jurgens Ci in ’52 after built his first (horse-drawn) caravan in 1938. The first Jurgens caravan, affectionately
Jurgens Ci
Amada’s 3-axis linear motor drive system provides unmatched speed and precision – enabled by true closed-loop feedback of the head position directly to the AMNC control.
C UT P ROCESSING T IME IN HALF WITH AMADA ’ S
The 8-station changer automically changes, cleans and calibrates the nozzle based on material processing requirements.
F IBER L ASER .
Amada’s FOL3015AJ 2000w and 4000w fiber laser series is specifically designed for various lot/volume production cutting. Additional benefits of the state-of-the-art system include: • Faster cutting of thin material ( up to 6 times that of a comparable CO2 laser, dependent on the material) • Superior speed and edge quality in material thicknesses of up to 22mm compared to other solidstate systems • P. R.E. (Process Range Expansion) by providing the ability to cut copper, brass, titanium and other materials that were previously difficult to process Amada offer a full range of laser cutting systems from 1kW to 6kW that feature the latest advances in both CO2 and fiber laser technology. Further proof that Amada is uniquely positioned to help you choose the best technology, system, software and automated solution for any sheet metal application.
Tel: (011) 453 5459 • Fax: (011) 453 5442 • E-mail: RickFerreira@amadaJHB.co.za • Barry@amadajhb.co.za Stand 225, Albert Amon Road• Millennium Business Park • Meadowdale Ext. 7 OCT 14 PAGE 5
company profile
called the ‘Bokkie’, was the result of a total family effort since the curtains and cushions were hand-sewn by Mrs Jurgens. Today, this elaborate focus on quality remains and the ‘eye for the small details’ that exists only in the world’s finest companies is most definitely present here. And it’s not just in caravans. Jurgens Ci is a company
committed to the outdoor experience, offering complimentary products such as tents, trailers, camping furniture, and a range of other camping gear – and all of this boasts the same quality levels of the caravans and motorhomes that have made the company so popular over the years.
TM
LIVING FOR QUALITY AL-KO’s functional and reliable automotive and trailer components provide optimal driving safety and excellent driving comfort. High-quality product solutions like axle systems, brakes, couplers, and innovative caravan accessories are designed in Germany and guarantee controlled and safe transport and enjoyable driving. AL-KO is your reliable partner in SA and worldwide.
Please find more about us on
www.alko.co.za I www.al-ko.com Contact:
info@alko.co.za or phone 016 421 4791 | T: +44 (0) www.ap-group.co.uk
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Jurgens Ci
NLA Imported Timbers NLA has been importing and distributing timber, board, decking, steel garage doors & accessories and related products into South Africa and neighbouring countries for over 26 years! With a combined experience of over 120 years in the industry, NLA have developed solid relationships with reputable and reliable suppliers worldwide, which enables them to provide their valuable customers with their specific product and service requirements. With a national warehousing and logistical capability, NLA is able to deliver their products quickly and efficiently nationwide. NLA are living their mission of “exceeding customers expectations through exceptional service and sincere relationships”.
LEADING FROM THE FRONT In a recent change for the Jurgens Ci business, in April/ May 2014, there was a leadership adjustment with industry veteran Keith Laing moving to another part of the Imperial group and Bradley Salters, a man steeped in the Imperial tradition, taking the reins at the caravan specialist from July 1st. Keith has given much to Jurgens Ci, and the camping and caravanning industry in general, over the past 19 years but Salters is a man with much experience in the motor industry which is sure to stand him in good stead for the challenges ahead. And it seems that there will be challenges. In the same Mintel report mentioned above, the research company said: “Online retailing presents both an opportunity and a challenge for the industry.” And with quality imports being offered from European competitors, it looks as though people will have the opportunity to access a bigger, more diverse market place. But Southern Africa’s industry leader is well positioned to weather such challenges and with a product that is the envy of so many rivals, you wouldn’t bet against Jugens Ci remaining in the industry leading position for at least the next 60 years.
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For more information on the company’s product range, go to
www.jurgensci.co.za
and don’t worry about Mr Clarkson’s objections; get out into nature!
John Clement Sean Robin Reena
083 603 1774 Johannesburg 079 402 4228 Johannesburg (Break-bulk) 083 603 1777 Cape Town 084 717 8624 Port Elizabeth 083 603 1780 Durban
www.nla-timbers.co.za OCT 14 PAGE 7
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Bradley Salters: A man with the outdoors close to his heart In July, Bradley Salters took over from Keith Laing as MD of Jurgens Ci. Bradley, who has been with the Imperial Group for a number of years, tells IndustrySA that he has been a camper all his life and is looking forward to a big caravanning trip next year. He also explains more about his plans for growth and development of this fantastic brand… How has the transition been, moving from Imperial into the Jurgens Ci business? Jurgens is owned by Imperial Holding; I’ve been an employee of Imperial for eight years in various financial roles. I started off in one of the truck businesses, I moved to a divisional MD role and then took over as one of the main division CFOs. As part of that responsibility, I was a director of Jurgens from 2009. I’ve been a non-executive director, representing the shareholder for the last five years. I knew the business fairly well and interacted with the previous CEO and finance team on a regular basis. When Keith, the previous MD, decided to change course, the opportunity came up and I put my hand up to take on the role. It wasn’t something new that I was walking into; I had an understanding of the business and the challenges that came with it. I saw through our year-end from a financial point of view into July and started here officially in the last week of July. There hasn’t been any surprises, I know the company
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well. Certainly, Keith eluded to it when he left, you need new thought processes and new ideas in order to generate change. The market here in SA is not the strongest, it’s been a flat to declining market over the past few years. So we needed to do things differently to generate different results and that has been my main task since coming here. I’ve tried to find different ways of pushing the product from a retail point of view instead of just manufacturing the product and hoping we sell it.
Has there been a lot of pressure to follow on from Keith who had a lot of experience and knowledge of the industry? I like to do my own thing. One of the great things about the business is that it has a very strong management team and I’ve let them carry on doing what they do. My focus in the short term is on the marketing side and making sure that we drive sales through our dealer network. We have 33 dealers out there which are independent of
Jurgens Ci
Bradley Salters
the business and the focus is to generate retail sales and get customers onto their floors so that we can drive the volumes up over time. The first thing we did is split sales and marketing. In the past, one man ran sales and marketing but now we’ve separated the two so that our sales manager now talks with dealers and helps them to push targets, grow their business and improve their business. We’ve appointed a marketing manager and we’ve appointed a new advertising agency and we are about to launch a new campaign which goes live on November 1st. This was decided prior to my taking over so the wheels were in motion before I arrived. We’ve put incentives in place for our dealers which they haven’t had in the past. If they hit certain targets, they’ll get money back from the factory which is an idea from the motor industry - I come from a retail background, I was involved in motor retail with Imperial. Product is a long term process. We are busy working through information to understand how product lifecycles work and ensure that we have something for all times
because customers want new things. Our best seller remains the Jurgens range and within that a van called the Penta. It’s the standard family caravan which is where most of our market sits but at this time of year we also do well with the larger vans, the Exclusive and Elegance – more high-end items. Our biggest challenge sits with our entry level products and this is a reflection of people’s disposable income. Our Sprite range, our lightweight entry level caravan, is where we’ve seen the biggest decline in volumes. This is because of the economy; the guys that can afford our caravans are still buying and the customers that are borderline are falling. To address that in the short term, we’ve been talking to banks and putting finance packages together so people understand that they can pay a caravan off on a finance deal at a reasonable cost per month. It seems to be taking some traction, we’ve been pushing it for two/three months now and it seems to be coming through. It will be offered through the bank, we don’t have a direct relationship with them, we not allowed to offer finance ourselves but we have
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engaged with Nedbank and we will probably also work with FNB WesBank in the short term. This works well at entry level in the motor industry, customers say ‘I can afford so much per month, what can I get for it’ and that thought process has never been pushed in the caravan business.
Tell us more about the business model. How does the company run all business line through the dealer network? Imperial owns five of the 33 dealerships and the others are independent, owner operated businesses. That’s how we would like to keep it, you need someone who is passionate about the product and the lifestyle to be able to sell it well and to go the corporate route with having people run the business who are working for a salary rather than themselves, I don’t think will serve the industry well in the long term. Imperial bought out four businesses that were failing and they were fairly key in terms of location. The location is why we acquired them and the other one was where no one else was willing to open but they don’t fall under my management. They are all Campworld dealers and they distribute anything to do with camping. In South Africa, we manufacture caravans, anything from R140,000 right
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through to R400,000, we manufacture trailers (luggage and off-road), we have a division that supplies camping gear and we have a canvas business that makes the tents for our caravans and runs a brand called Howling Moon which is now a worldwide brand exported to the UK, Europe, USA and Australia. Those business lines all flow through our dealer network and we’ve recently added a 4x4 fitment offering called Safari Centre. A fully fledged Campworld dealer will be able to sell a new caravan, a used caravan, new trailers, used trailers, they’ll have a workshop to service all these products, they’ll have a retail shop for all the camping gear and they’ll have a 4x4 fitment centre for suspension upgrades, bumper replacements and those sort of jobs. There’s 33 dealers, five are owned by Imperial and we have a further three trailer Campworld dealers who don’t do caravans but do trailers and camping gear. There’s also four standalone Safari fitment centres as well. With the fitment centres, the idea of installing them at the dealers gives those dealers another revenue line; they already have a workshop and technical skills for the caravans so they can grow without investing in new infrastructure and equipment. We have put these into eight of 33 so far since the beginning of this year.
Jurgens Ci Do you want to see the business grow more across the border on the African continent? We only have dealers north of the border right now in Namibia, a business called Bushwackers in Windhoek and Swakopmund. The difficulty is Africa is that the customer base is different. The facilities from a camping point of view and the roads are not the same as SA. Botswana has potential for expansion of our off-road product range but other than that, most of the guys who travel use off-road motor homes and we don’t participate in that market – they will import from Germany or the USA or Australia so I don’t see huge potential north of the border for our caravan business. For the other product lines, we will certainly be able to offer our canvas products in Africa; roof top tents, trailer tents etc. This is the one business that we will look to grow into Africa with right now and the Safari Centre products; off-road suspension and bumpers will certainly grow in Africa in time. We also hope to grow the business of our factory in Australia. We make the major components of the caravan in SA; the fibre glass parts, fronts, backs, roofs, chassis etc. and we flatpack all of that into containers and ship that to Australia, to Melbourne where they assemble the caravan and put all the furniture, electrics and gas in. This business has been running for six years and we now have a target of manufacturing 2000 caravans each year there, similar to what we produce here locally.
Tell us about the market place. Do you consider yourself industry leaders? Yes. For traditional road-going caravans, we sell 90% of the caravans in SA. For off-road products we sell just short of 50% of all products sold in SA and if you combine the two we have around 80% of the market locally. On the off-road trailer side of the business, we own about 40% of the market so we are the biggest player in all three of those sectors and definitely see ourselves as the industry leader. Most of our competitors are niche players, no one with real volumes. On the caravan side I think there’s six or seven other companies that take the remaining 10% of the market and sell 20 each every year. We are the dominant player and anything we lead with gets copied over time. We do expect the Chinese to come into the market at some stage but whether they’ll be able to export and sell at a reasonable price, I don’t know. At a squeeze you can get two caravans into a container and when you add these shipping costs, the price goes up very quickly.
Are you a caravan/camping type of person at heart? I grew up with it. My family always was. I’ve been caravanning and camping ever since I could afford to do it myself. I haven’t been recently but next year I will be getting the family out there. I love the bush and a like to take the route out of the caravan parks, more off-road. I plan to get up to Botswana and Namibia with the family and also visit Kruger Park.
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+44 (0) 1603 411569 info@industrysa.com East Coast Promotions Ltd, 2 Ardney Rise Norwich, Norfolk NR3 3QH
www.industrysa.co.za