Deciding on the Mode of Operation in Africa

Alfred Kärcher SE & Co. KG (Kärcher) has been active in Africa for decades. Like other companies, it started with seizing ad hoc business opportunities and a purely export-based business approach. In 2010, the management of Kärcher decided to focus more on the opportunities in Africa and develop the business and the market. They decided to shift the mode of operation from a purely export business to a more localized market approach. Besides the nearly 40-year-old subsidiary in South Africa, Kärcher founded sales representative offices as regional hubs. They were tasked with overseeing sales activities as well as business and dealer network development in the respective country and region. The aim was to profitably grow the business. This approach seemed to work until COVID showed the limits of not having one’s own warehouse and logistics, local sales and marketing teams, and local technical support, which lead to a further localization.