WINTERSTEIGER Takes the Leap into the Middle Kingdom
Rising sales growth in plot combines and seeders led to the establishment of a dedicated subsidiary in China in 2006. Feedback from long-standing Chinese customers was very positive, and there were more than 500 additional Chinese universities, academies, and institutes that needed WINTERSTEIGER products for their research and breeding activities. With the resources available in Ried, it was therefore no longer possible to adequately serve this vast market and provide good after-sales service.
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In Sandra Lutz, members of the WINTERSTEIGER Management Board Günther Kamml and Roland Greul, along with Seedmech Director Martin Schubert, found the perfect candidate to send to China: Ms. Lutz had already gained initial experience and acquired language skills—both ideal prerequisites for taking over management in Beijing. The first step was to find an office, and the decision was made to locate it on one of Beijing’s main thoroughfares, Chang’An Avenue, near Tiananmen Square. Together with her first assistant, Li Dan, she obtained a tax ID number and the necessary licenses—most importantly, the full license for importing machinery. At the same time, salespeople and service technicians were hired.
The most important factor for the subsidiary’s success was gaining access to customers and expanding its network. To achieve this, Sandra Lutz and her team focused on several areas: On the one hand, they leveraged existing local contacts with global key accounts such as Monsanto, Syngenta, and BASF; on the other hand, they capitalized on their strong relationships with Chinese regular customers, drawing new customers’ attention to WINTERSTEIGER’s specialized solutions. The initial contact with the government agency CAAMS, with Ms. Qi as the point person, was not neglected either: Ms. Qi had been ordering machinery from WINTERSTEIGER for many years.
In addition to Sandra Lutz, her colleagues from Ried—Hans Schwarzmayr, the Area Sales Manager, and Frank Farkas, the service technician—were among the key players during the company’s founding phase. Frank Farkas was extremely popular with customers: He had machines specially adapted for China and, during numerous training sessions, convinced customers of the correct way to use them—and even the right time to harvest!
Conclusion: The decision to establish a subsidiary in China came at exactly the right time—even before competitors could gain a foothold. An understanding of the local culture and the tremendous dedication of the team members made the launch a success story.