Corona Virus Boosts Growth for Dymak
The CEO has observed a significant demand within his segment. He expects growth of 25-30% this year, as well as the coming years, meaning the volume will likely double within the next three years.
CORONA VIRUS BOOSTS GROWTH FOR DYMAK
While many others have lost sales and fear the consequences of an economic recession during the corona pandemic, Claus Bøgelund, owner and CEO of Dymak A/S, can’t help but smile. He supplies large retailers like Walmart and Salling Group, growers and garden centers all over the world with pots, planters, baskets and home and garden accessories. In the fiscal year 2019/20, Dymak has increased its sales by almost 30%, meaning that the Odense-based company’s revenue has more than doubled in four years.
The CEO has observed a significant demand within his segment. He expects growth of 25-30% this year, as well as the coming years, meaning the volume will likely double within the next three years.
“We made a corona budget already in April, when the pandemic was a reality because we knew that our plans would be challenged. We had experienced our suppliers in China shut down and there was a great deal of uncertainty. However, it quickly turned out that with our product segment within home and garden we were comfortably positioned, as many consumers are now focused a lot in this area. We are currently riding on a wave wave and plan on doing it for years,” Claus Bøgelund says.
Dymak is not alone in this. The Danish grass seed company DLF has seen an immense demand from garden owners who suddenly want to tend their lawns. The paint supplier Flügger is also experiencing record sales because people want their homes to look nice, since they’re not leaving them as often as they used to. This trend is boosting Dymak’s growth in Europe and the USA, which is their largest market, as well as in other regions.
Winners of the Crisis
“There are winners and losers in every crisis. With so many who have to stay indoors to work, sleep, play or learn, we spend the money we would otherwise have spent on trips, experiences, parties, etc. on furniture, decorations, kitchens, gardens, plants, window-boxes and flowerbeds. This is where we will see some of the winners,” States Louise Byg Kongsholm of Pejgruppen, which follows current trends.
She believes it will continue for some time.
“When we experience a loss of control and are housebound, the least we can do is take control of our environment and work on our homes and gardens. And the world has actually become a more dangerous place, so many will stay home in the coming months. For this reason, there will be a greater focus on what is close, at least until we have a vaccine and it could easily be 2022 or later before it is widely available”, the trend expert believes.
For some years, Dymak has worked towards establishing suppliers from countries besides China. This focus has intensified due to the United States being in a trade war with China, increasing tolls on “made in China” products as a consequence and because customers in general, following the Coronavirus pandemic, wish for companies to source from other geographical regions.
“We’ve opened sourcing offices in Mexico, Vietnam, and India and are now looking into possibilities in Indonesia, the Philipines, and Bangladesh. Within a few years, we expect to be present in ten countries. The local presence, with people familiar with the culture and close contact with the suppliers, is essential,” Claus Bøgelund emphasizes.
Local Aid
When logistics were challenged during the coronavirus lockdown in China in the spring of 2020, the locals were a great asset. As a small, locally known, and agile player, Dymak succeeded in solving problems other big organizations could not. With the help of the locals, Dymak managed to, for example, carry out the transportation of containers with products from the factories to the shipping harbors on the east coast.