MATUS

Leading Distributor of

Hardworking Brands Eyes Growth

The mission of leading hardware supplier, Matus, is ‘to be the supplier/distributor of choice of tools, hardware and related

equipment’. In the last 74 years, the company has so far achieved this aim and is now looking for new opportunities

and growth as they move towards a bright future.

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PRODUCTION: David Napier

www.truweld.comManufacturer - Wholesaler - Exporter

ALPEX PTE LTD35 Tannery Rd #07-01, Singaore 347740

email: sales@truweld.comTel: (65) 6345 4780 Fax: (65) 6345 4781

BUSINESS PROFILE

//Not many companies have a history that is as long and as winding as that

of Matus. One of the top names in hardware distribution, Matus was founded in Johannesburg in 1942. Two brothers, Lukie and Sam Matus, started the business and after mergers, changes of ownership, streamlining and booming turnover, the company has grown to become what is today a resilient, preferred supplier to the industrial, construction, engineering, agricultural, retail DIY and mining sectors.

Next year, Matus will be 75 years old and, just like in the early days, there’s no sign of slowing down for this ambitious organisation. Now targeting other

infrastructure and comprehensive product offering, we have the ability to serve several new markets that we have identified. We plan to roll out the new market initiative over the next two years,” explains Young.

Africa represents a huge opportunity for Matus and similar

sub-Saharan African markets and looking at bolstering its product range and online channels, Matus is in an exciting period and CEO Greg Young is enthusiastic about the future.

“ The reason our staff come to work is a little more than just collecting a salary,” he says. “We get our people to envisage more than just selling a tool. Whether it ’s a pair of pliers or a trowel or a paint brush, we exist to help people build a better house or a school or a hospital – that ’s where all our products go and it ’s an important part of the ethos of our business.”

BUILDING & GROWING The Matus product range is made up of over 16,000 lines and includes

organisations that operate within the wider retail sector. The growing middle class and the rising wages in progressive economies such as Kenya, Rwanda, Ivory Coast, Senegal and Tanzania make for a new generation of DIY consumers; and then there’s the industrial construction sectors which are

power tools, air tools, compressors, generators, adhesives, welding and safety equipment, abrasives, garden tools, locks, tools and hardware, electrical, drill bits, fastener and fittings. Operating a wholesale model, Matus partners with hardware stores around the country and going forward, the plan is to add new products to its extremely strong range.

“The product range which includes hand tools and power tools is now being substantially enhanced. New product categories have been identified which will create significant opportunities for the business to grow,” says Young.

“We are further targeting the DIY market to include into our offering, a vast array of consumables,” he adds.

Euromonitor International detailed in its 2016 report on the home and garden sector that despite the slow economic situation, ‘home and garden continued to witness positive growth owing to the rising demand for consumer goods’. Young agrees that the economy is a challenge but there are opportunities.

“In this difficult economy, there is an opportunity especially in the lower-LSM market where there is growth. People are looking after their homes and always still strive for home improvements. This ties in with the purpose of Matus in terms of building a better South Africa,” he says.

And it’s not just South Africa where Matus is helping to build a better future. The brand has moved across the border and now operates successfully in two neighbouring countries with plans to increase its African footprint in the near future.

BUILDING IN AFRICA“We have built strong relationships in several countries in Africa and off our solid foundation, vast

thriving as Africa receives ongoing FDI as one of the last playing fields for major development projects. Globally, in 2014, the DIY/home improvement world market turnover reached approximately €399 billion but Africa was not a significant part of this growth with North America and Europe combined representing

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MATUS

//YES WE’RE IN THE DEPTHS OF THE BOTTOM OF THE CYCLE BUT IT IS A CYCLE AND WE NEED TO LOOK THROUGH THE CYCLE TO PLAN HOW WE WILL GROW OUR BUSINESS//

BUSINESS PROFILE

94% of this world market, although their joint population accounts for only 22.7% of the world population. As economies on the continent grow and general demand for retail solutions develops (with construction and home improvement being a part of that), it is vital to gain first mover advantage.

INDUSTRY LEADING RANGEOne of the key drivers behind the success of Matus to date is its unparalleled product range. Supplying everything from overalls to welding machines, Matus can meet any demand that might arise from a professional contractor to a one-off DIY project.

“Matus is the proud brand owner and product developer of sought after brands such as MTS, MAT-WELD, MAT-SAFE, MAT-AIR, Fox Tools and Fox Abrasives.

“At the higher end, we have high quality products for which we are distributors, brands such as Hitachi Power Tools, Sykes-Pickavant, GROZ, Stahlwille and RACO, all international brands

This online service is being developed with the customer very much in mind. Partnering to best suit the end user is of benefit to both Matus and its existing customers. This is why the company is also looking at rolling out a digital training scheme. This platform will not only help develop the end users product knowledge but also educate our customer’s sales staff, a move which is certain to drive sales.

“It’s very important for us to build a relationship with not only our customers but our customer’s sales staff and the end user. We want to build loyalty through a training initiative where we can deliver a lot of information regarding our products through an online training portal. We can also reward our customer’s staff for going onto that website to complete the training by allowing them to earn points. The more they know about the product, the better equipped they are to sell that product and that benefits not only our customers but ourselves,” the CEO explains.

that we have exclusive local responsibility for. We also have an array of other brands where we are the non-exclusive distributor and in most cases, are the largest distributor of these brands in South Africa. They include, Sellotape, Stanley, Gedore, Black & Decker and many more. It’s because of this that we are known as a one stop supplier for tools, hardware and related equipment,” explains Young.

“Our new product lines will target the broad spectrum of end users from the DIY enthusiast all the way through to the professional user serving the manufacturing and construction industries,” he says.

Helping to make the enviable range even more successful in the country’s hardware stores, Matus is frequently investing in its distribution channels, both

7 DECADES OF SUCCESS Despite the positive environment that Matus has created for itself, there’s no hiding from the fact that the SA economy is currently not performing well. Unemployment is high, the Rand trades low and general confidence is waning. This creates a difficult environment for businesses that are looking for growth. However, Young is bullish about the future, saying that when the economy inevitably returns to strong positive growth, Matus will be well-positioned to build on its considerable market share.

“The SA economy is driven a lot through mining and that whole cycle; yes we’re in the depths of the bottom of the cycle but it is a cycle and we need to look through the cycle to plan how we will grow our business,” he says. “Things are tough now and probably will be for the next year or two but the cycle will turn and we will be prepared for that in the industrial sector and the DIY segment.”

A big part of the company’s success in these less than favourable times comes from its

physically and digitally. “Some time ago, Matus invested

in a website called tradecounter.co.za, at the moment it’s just a reference page where any end user can go online and find out details about all of our products and where they can be purchased.

“We most certainly do not sell directly to the end user but we do want to be able to market to them. One of our objectives in the next two years is to improve the functionality of that website to give the end user a lot more information about our products and help them to compare. We believe that there’s an opportunity for a win-win with our current customers as this website can make their stores a whole lot bigger by customers being able to identify products online,” says Young.

history. This is a brand that is well known in the market; it has a loyal set of partners and it is responsible for products that will always be required. This all stems from hard work over the years and this will be the base of the business going forward.

“Matus being a sizeable organisation; has the ability to see the difficult times through and we’ve been around for 70 years. South Africa has been through many challenges; Matus has been there in that time and we plan to be here for at least another 70 years. We are very responsible in the way that we trade and we make sure that we add value to our customers,” Young concludes.

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MATUS

MATUS

+27 (11) 681 9100 info@matus.co.za

www.matus.co.za

//SOUTH AFRICA HAS BEEN THROUGH MANY CHALLENGES; MATUS HAS BEEN THERE IN THAT TIME AND WE PLAN TO BE HERE FOR AT LEAST ANOTHER 70 YEARS//