22 Oct Interview with Kinga Rekowska, CEO-COO, and Marion Kandler, CEO-CFO, IMS Group, Liechtenstein
How does IMS Group stand out as an innovative producer of furniture and home goods?
IMS Group is composed of several segments. We operate as producer in Poland and trader in Central Europe. Having production entities for case goods and upholstery one of our major achievements has been fostering collaboration to create a furniture look. We recognize that customers value modularity alongside aesthetics; they want customization without the hassle of sourcing individual items. By integrating expertise from Benelux, Liechtenstein, Germany and Poland, we have created a cohesive portfolio that enables customers to purchase both sofas and case goods in one place for a fully personalized living room or bedroom with various options for colors, fabrics and styles. This sets us apart from competitors who often only have one production facility for either case goods or upholstery. As customer preferences shift, our strategy aligns with their desire for a complete and customizable look that they can achieve with a single click.
What is IMS Group doing to overcome challenges faced by designers and manufacturers in 2024?
Kandler: We did not anticipate significant growth this year due to a saturated market and economic challenges influenced by the pandemic and ongoing crises. Our primary focus has been stabilizing operations and enhancing resilience in the face of inflation, which has affected us significantly and contributed to the recession. We have concentrated on strengthening internal processes and implementing new enterprise resource planning systems to prepare for sustainable growth in the years ahead. Given the intense competition across Europe, we have worked to deepen our relationships with both suppliers and customers.
Rekowska: We are assessing our strengths and examining our portfolio, particularly in the mid-range segment, which is shrinking. We face a strategic decision; should we remain in this segment or shift our focus to luxury or more affordable furniture? We are also exploring new opportunities in the business-to-business (B2B), direct-to-customer (D2C) and hotel, restaurant and café/catering (HORECA) segments. The furniture market remains challenging, and consumer demands are evolving. We recognize the need to adapt our product portfolio to include urban, customizable and modular furniture that appeals to millennial and Gen Z consumers. Additionally, we aim to strengthen our e-commerce presence and prioritize sustainability by focusing on eco-friendly materials and local production in Poland.
What new products is the company bringing to the market in 2024?
We are excited to introduce our new D2C brand, BELURO, which will launch with one sofa and one storage piece designed to complement each other while offering room for individual customization. The launch is scheduled in Poland, with plans to expand throughout Europe in the coming year. BELURO will serve as our design brand. We focus on original creations that combine design and function rather than replicating Italian designs. While high-end pieces can be costly, our goal is to provide stylish yet affordable options. Our independent research into the European market and customer demand has allowed us to identify what clients genuinely want rather than just following trends. This approach is especially important in a competitive market where price wars can lead to unsustainable margins.
While many competitors are moving into the direct-to-consumer sector, they risk straining B2B relationships by offering lower-cost products. We aim to leverage our expertise to maintain quality standards without compromising our partnerships; some of our entities have been established for over a century. We are also expanding into the HORECA and office sectors. This November, we will participate in the Paris Furniture Fair and lay the groundwork for our expansion into these segments in 2025 and 2026.
What new digital technologies is IMS Group employing to increase efficiency?
We are currently implementing Microsoft Dynamics, including its Copilot feature, to enhance internal reporting and operational efficiency by stabilizing our internal processes. Externally, we are addressing the increasing demand from customers who want to visualize furniture in their own spaces. We have begun using augmented reality for cupboards and upholstery as traditional photos often fall short of customer expectations. Our new B2B website is currently being launched. We also plan to integrate chatbots that utilize artificial intelligence on our D2C website to assist with customer inquiries. With the launch of our new brand BELURO, we will gain deeper insights into customer behavior through artificial intelligence to better meet their needs and improve how they visualize our furniture. On the manufacturing side, we remain committed to handcrafted quality. Many may not realize that our upholstery is still predominantly handmade. We do this to preserve jobs and maintain a high standard of craftsmanship. Moving to large-scale machinery requires significant investment and would fundamentally alter our operations.
What efforts is IMS Group making to promote sustainability and lower its carbon footprint?
We prioritize sourcing from local European suppliers for two main reasons: sustainability and stability. Recent crises have underscored the risks of disrupted supply routes. By sourcing locally, we can lower our carbon dioxide emissions and promote sustainability. We also engage in tree-planting initiatives and are installing solar panels on our rooftops to significantly lower our carbon footprint. We emphasize using certified wood and pet-friendly fabrics and carefully consider the origins of materials. Additionally, we are committed to eco-friendly packaging, with a particular focus on minimizing the environmental impact of transportation.
What new markets is the company considering under its current growth strategy?
With our D2C launch and our expansion into the HORECA and office furniture sectors, we are reassessing our portfolio. To support this growth, we recently hired a new sales director to explore new markets. One promising opportunity is Africa where the mid-range sector is expanding — unlike in Europe. Additionally, while China tends to favor local products, our reputation for high-quality European goods could offer us a competitive edge in the market. We have learned that flexibility is essential for navigating a challenging environment. The past four years have underscored this need, and we anticipate future challenges as well. We remain open-minded and always seek to understand the full context before making decisions.
What personal priorities do each of you have in 2024 to achieve success for IMG Group in the long term?
Kandler: For me, achieving sustainable growth is essential. While we do not anticipate significant increases in the coming years, our goal is to be a strong market player and a European leader. This can only be achieved through steady and sustainable growth. We are focused on strategic investments and maintaining a resilient balance sheet to strengthen our position against external factors. By concentrating on areas within our control, we aim to build a flexible organization that can adapt quickly to shifts in the market and customer needs and ensure our products consistently meet demand. Our mission is to help turn a house into a home with every product we offer – so visit BELURO.COM.
Rekowska: I am incredibly proud of our team. We stepped into management roles just before the pandemic with both of us new to board-level positions. Initially, our direction was uncertain. However, have since experienced rapid growth while retaining nearly the entire management team. I commend the team spirit and resilience at IMS Group that has guided us through challenging times. Our flexibility and creativity have allowed us to innovate where many competitors have struggled. Over the past four years, our team has worked tirelessly on our brand, focusing on design details like fabrics and functions. We have built a strong workshop culture and friendships that continue to grow. While we face challenges, I have immense trust in our team, which I believe will lead us to future profitability.