Mr. Bühler, last year Conrad Electronic closed the majority of its B2C stores. How did this come about?

Ralf Bühler: Five years ago, we changed course at Conrad from a traditional technology retailer to a B2B procurement platform. We have now completed the majority of this transformation and are clearly focusing on business customers and digital business. Here, too, e-commerce and the associated possibilities of modern procurement are becoming increasingly important in order to optimize purchasing processes and make them more efficient. However, major transformations also require us not to shy away from necessary changes. Closing our B2C branches was not an easy step, but it was a necessary one in order to consistently implement and continue our strategy.

In this context, can you explain the individual components of the Conrad Sourcing Platform in more detail?

Ralf Bühler: As an entrepreneurial B2B distributor and in line with our Conrad DNA, we don't just want to sell products, we want to optimize the procurement processes of our business customers and make them more efficient. We create the conditions for this with our platform, which combines all parts of our range: with our own range and that of our 500 or so marketplace partners, we offer companies in Germany a range that is both broad and deep, with over 7 million products on offer. But, as I said, that's not all: we see ourselves as a solution provider that scores points with customer-centric solutions, tailor-made services, expert advice and individual support.

Can you give us an example of this?

Ralf Bühler : We have tailor-made e-procurement solutions in our portfolio to help companies of all sizes and from all sectors to streamline their procurement processes and thus save time and costs in purchasing. We have already implemented 3,000 electronic connections in Germany and want to grow beyond the market in this area. On the other hand, we have always been close to our customers' needs. This enables us to develop and offer tailor-made solutions: For example, an entrepreneur in Frankfurt needed a new irrigation and monitoring system for his mango farm in Senegal. Our customer advisors worked closely with him to find the right technical solution. On top of this, we were also able to provide him with all the necessary parts via our Marketplace.

B2B stores will now also be added to the range. How do the Conrad Profistores fit in with the business model of a procurement platform?

Ralf Bühler: We listen to our customers and are therefore of the opinion that there is still a need for stationary formats among business customers. Accordingly, the Conrad Profi-stores, whose product range is clearly geared towards B2B requirements, are intended to supplement our online offering with supporting on-site services. On the one hand, there is a lot of so-called 'unplanned demand' in the B2B sector, which can be covered by an immediately available product range on site. On the other hand, we enable our business customers to experience higher-priced products such as an industrial drone or a cobot live in our professional stores. This is also not possible with a purely online concept.

What role do the stores play in this overall structure - also with regard to the Conrad Marketplace?

Ralf Bühler : We deliberately refer to the professional stores in Hürth, Regensburg and Mannheim as pilots. The fact is that they naturally have to be economically viable. It remains to be seen whether our analysis of the needs and requirements of our business customers in the branch business is correct and whether the Profistores prove to be sustainable and viable for the future. They currently serve as an extension of online retail. In addition to our core business as a retailer, we have been operating our own online marketplace in Germany since 2017. Our goal was to double the marketplace's annual turnover and we have achieved this. We are now approaching a three-digit million figure. Accordingly, we have decided to internationalize this model: 2021 saw the launch of Conrad Marketplace Austria. In 2022, we added an online marketplace in the Netherlands in July and in Italy in December. We also have cross-border procurement on the agenda in this regard.

Keyword supply chain: many companies are complaining about material and component shortages. How do you see the current situation and do you expect it to ease in 2023?

Ralf Bühler : We have seen improved availability of individual electronic components in the last few weeks of 2022 and expect this trend to continue in 2023.

How can companies safeguard their supply chain? How can Conrad support them as a distributor?

Ralf Bühler : This is where we benefit from 100 years of experience as a distributor: we can ensure a high level of product availability thanks to our international supplier network, which has grown over many decades. At the same time, we are expanding our Marketplace network to provide our business customers with even more product choice via a large number of connected sellers. However, we are not losing sight of product quality: from the outset, we have opted for a curated marketplace model and therefore only allow verified manufacturers and distributors. If a particular item is still not available, alternatives are proactively displayed on conrad.de. And if the worst comes to the worst, the Conrad Procurement Service team can also be brought on board to search for the desired product worldwide.