Benedikt Germanier (CEO at zai AG) – „Building a branf” is a presentation from WARP #2 – hub:raum’s turbo acclerator for CEE startups taking place in Krakow twice a year. Apply for the next edition! www.hubraum.com/apply (select “Krakow” and “Accelerator”). More information: www.hubraum.com/warp

1. zai
building a brand
Benedikt Germanier, CEO – zai AG
krakow, june 2014

2. The zai anchor
In the beginning
was the mountain
Summits and steepness
pinnacles and peaks
stony, rocky ranges
zai finds the line
reading the mountain
plays in the snow
like jackdaws in the sky
zai, the tougher ski
A titan
going his own way
not willing to compromise
not willing to die

3. objectives - chronology
 at the beginning was the product
 establishing a company around the product
 positioning the company in a distinct niche
 distribution key
 building on customer value
 leveraging the brand value

4. 2014 collection

5. entering a volume business
– creating a new industry

6. the home of zai
Am Anfang war der Berg
Geröll und Massiv
Zacken und Klüfte
Stein und Fels
zai findet die Linie
die den Berg versteht
Er spielt im Schnee
wie die Dohle am Himmel
zai, der zähere Ski
ein Titan
der weiss was er will
unbestechlich
unverwüstlich

7. a bold idea
Ist actually a bold idea:
 exceptional strong product
 playing niche – CH market potential =
2000 ski sales/year
 differentiation - it is not only about skiing
 Rising demand for luxury goods
 quality, technology, longevity, innovation
 engineered & produced in Switzerland a
„must“
...this is why it will work:
 renting vs. buying (increasing buying power)
 relative low barriers to entry, high exit
barriers, increasing competition among
existing players in a declining industry
returns
 framing: „a ski as expensive as a car?“
 luxury markets are vulnerable to income
shocks
 production in asia a „must“

8. the team

9. reshaping the business playground
 the aim is to create a brand value balance sheet vs P&L
approach
 profitability is a means but not the initial objective
 long-term, strong vision needed, short-term opportunism
dismissed
 focus on mitigating risks vs. maximising short-term returns

10. uniqueness

11. focusing on customer value
 virtual monopoly: product cannot be substituted
 long-term growth provided by limitation and customer focus, no
mass expansion
 management to secure effectiveness (vs efficiency) – quality of
the product steers resource requirements
 creating customer value becomes key (event management, after
sales service, customer relationships, CRM tools, new media
exposure)
(also see: Ricca Manfredi, Robins Rebecca, Meta-luxury – Brands and the Culture of Excellence, New
York, 2012)

12. questions – positioning the brand
 how would you define zais‘ Unique Value Proposition (UVP)?
(A value proposition is a promise of value to be delivered and a belief from the customer that value will be experienced. A
value proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or services,
Source: Wikipedia)
- moving ahead: how would you position the brand? key criterias?
- what would your distribution concept look like?

13. lessons learned
 time to market longer than anticipated
 positioning the brand and building global distribution takes time and requires
(enormous) resources
 brand value does not create immediate cash flow
 business is dependent on macrocycles & weather
 diversification: enlarging the product line while maintaining core values
 innovation & technological leadership capital intense
 insourcing vs. outsourcing = controling quality & innovation processes key

14. zai facts
2003 – establishment of zai ski AG
2004 – zai classic, the first model / entering the retail market
2005 – zai spada: stone core ski – a key innovation with exclusive rights for zai from patented technology
Tecno Carbon, Munich
2008 – zai for Hublot
2009 – zai for Bentley / EU torsion patent P5285EP00
2010 – zai nezza / EU pending patent P5879EP00
2011 – DT double tip geometry patent P7417CH00 / zai feffa / zai cassacca/ various design protections /
zai is chosen as official ski of the Fis World Alpine Ski Championships 2011 in Garmisch-Partenkirchen.
2012 – establishment of zai golf AG and zai tec AG / 12 employees /70 dealers in 18 countries / 25
shareholders with 5 making up 70% of the company/product: the sabi
2013 – strategic shift in focus from product to Distribution & Marketing
2014 – cooperation with carl f bucherer / releasing the golf putter family senda

15. moving ahead
 zai‘s 10th anniversary - an ideal time to build on achievements
 strategic shift in focus from product to Distribution & Marketing
 expanded and enhanced zai events programme
 new Client Relationship Management tool
 less new R&D, more focus on production quality and sales
 clearly defined staff structure and project management: decision, delegation,
implementation, control

17. pissiun