About Flügger / Strategy and Values
Strategy
In the summer of 2024, Flügger launched the ‘Flügger Organic’ strategy.
The Flügger Organic strategy continues our core commitment to be ‘co-creators of a greener industry.
Additionally, the strategy clarifies Flügger’s market position through commercial choices, with the aim of achieving organic growth that contributes to an overall increase in profitability.
Flügger Organic consists of five strategic focus areas:
Nordics
Flügger’s Nordic markets, where we have a leading market position, are stable. However, they are subject to cyclical fluctuations that follow market trends.
We need to increase the number of small and medium-sized professional painter customers in our own sales channels. This is to be achieved through stronger relationships, product and application training, and improved access to data and digital services that simplify daily work.
Adjustments are currently being implemented to ensure alignment with market conditions specific to the Swedish market. In the new strategic period, Flügger aims to consolidate its position through collaborations with professional building supply retailers that supply the professional craftsmen.
International
In recent years, Flügger has experienced significant growth outside the Nordic region. This growth has been achieved through a combination of acquisitions, exports, as well as through Flügger-owned stores and production sites in Poland. The plan for Poland and Lithuania involves the opening of additional Flügger stores.
In terms of new export opportunities, the company has successfully identified a number of new target countries for expansion and has established a comprehensive strategy for each.
Furthermore, initiatives have been set up in existing export markets in collaboration with local distributors, depending on whether they are new markets for Flügger (product and concept training), developing markets (support for the expansion of the local distributor network and new product categories), or mature markets (assistance with channel additions such as online and architects/designers).
Brand
To support the company’s growth in both the Nordic and international markets, Flügger leverages its brand as a key strategic asset. Flügger represents high-quality craftsmanship and well-designed surface solutions that are also considerate of the environment.
Specifically, the Flügger brand will be introduced and expanded within professional building supply retailers. The store format will be reimagined to better meet the needs of core customers. A marketing platform will also be established to enable both Flügger’s own units and local distributors to easily reuse and replicate marketing efforts across markets.
Simplify
In order to better serve our core customers, leverage Flügger’s core competencies, and enhance profitability, it is essential to maintain the right focus.
This includes closing business units that do not significantly contribute to the core business and strategy, gradually aligning and consolidating labels and formulations to ensure consistency across customer segments and streamlining contract principles for building supply retailers and DIY chains to better fit the value chain.
Robustness
The operational infrastructure must be able to support commercial decisions. IT systems are integral to this and should enhance the customer journey. At the same time, production, logistics, and warehousing systems must be in place to ensure product availability during market expansion and the establishment of new partnerships. For the purpose of warehousing and logistics, a ‘centre of gravity’ analysis will be conducted to optimise distribution and reduce transportation and handling costs.
The Overall Rationale for the Strategy
Flügger has reached a natural upper limit in the Nordic markets with its original business model. In order to address the ongoing rise in costs, the company must explore alternative strategies for its continued growth.
With Flügger Organic, the goal is to expand market potential by establishing partnerships with professional building supply retailers while also driving international growth. This approach aims to achieve the right economies of scale and increased profitability across all markets—organically.
Values
Our purpose is to be co-creators of a greener building materials industry while promoting the craft of painting through high-quality solutions, reliable partnerships, and inspiring design choices.
Drawing on our Scandinavian foundation, we are positioning ourselves for organic growth by strengthening our core segments in the Nordic countries and expanding internationally. As of 2024, more than four out of five litres of our in-house produced liquid products were eco-labelled, and we are committed to continuing this progress until reaching 100 %.
We are a family-founded and family-led company—large enough to make a difference, yet small enough to maintain our entrepreneurial spirit. Our dedicated and skilled employees approach their work with passion, building unmatched expertise from within the organisation.
