ARX division aims to double sales within five years

21.03.2023

Discussion with Petar Orbanić, Director of ARX division

ARX began preparing a strategy for the ARX programme last fall, in which we set goals and activities for the next five years. A larger team was involved in its preparation, including the director of ARX division and colleagues from the sales team, as well as heads of production, development, quality, procurement, and HR. In the strategy, we established strategic guidelines for all areas of our business, with a focus on sales. Petar Orbanić, the director of ARX division, presented key goals and strategic orientations during the discussion.

What is PC ARX's strategy for the next five years?

In the strategy, we set out to double the hardware programme's sales in five years while also ensuring 5% annual growth in the component programme. This includes both the products we market under the ARX brand and the hardware we manufacture under customer brands, with the primary goal of increasing door programme sales. We will also increase sales by expanding the range of so-called merchandise, which are products that we do not manufacture but are linked to our sales programme. At the same time, we set a five-year goal of increasing added value per employee to 60,000 euros as well as increasing profitability.

What are our strategic markets and products?

We concentrate on markets with higher purchasing power, namely Western European countries. We'll also look for ways to enter or expand into the American market. These are the countries where, in the coming years, there will be an even greater emphasis on achieving environmental goals and the associated promotion of energy-efficient building renovation, which will result in increased demand for our products. We divided our sales programme into four sales groups in the strategy. In addition to window hardware and door locks, we specialise in sliding wall hardware and so-called merchandise.

Who are our strategic customers?

We will continue to invest in developing our ARX brand and adapting our sales programme in order to meet as many customer needs in the market as possible. However, there is fierce competition in this particular segment, so we see our opportunity in adapting to customers who are looking for partners in the development of innovative solutions. Larger manufacturers are typically not prepared to adapt to customer needs, but we are able to function as a niche manufacturer. Our customers appreciate the exclusivity of our offer, which adds more value.

What are the strategic guidelines for development?

Door locks remain the primary focus of development as we add more value to these products. There are also more opportunities for innovative solutions, such as the development of so-called smart home solutions. At the same time, one of the most important tasks is the creation of new features that will benefit both the installation and use of our products. This includes, for example, the renovation of our current sales range, which contains a large number of items. We want to make it easier for customers to choose by offering multiple functions in one product. This will simplify the selection process for both the customer and our production, resulting in fewer different items and larger batches. We will soon launch the ambitious ARX 2.0 project, which will be discussed further in the coming months.

What do the strategic sales and development directions mean for production?

On the one hand, fewer items due to the enhanced functionality of the ARX sales programme products mean larger batches. Smaller batches, on the other hand, are the result of a niche approach and adaptation to customer needs. This implies that there will be changes in production to ensure greater flexibility and the introduction of new technologies to meet the needs of new products.