Service, trust and innovation: Baucenter Decker-Ries reinvents itself

In a competitive market, sandwiched between France, Belgium and Germany, the Luxembourg family business Baucenter Decker-Ries has undergone a remarkable transformation. From a traditional building materials supplier, it has grown into an integrated service provider that handles renovations and new construction projects from A to Z. For European builders merchants, their approach offers an inspiring example of how to achieve growth in a saturated market.

When Laurent Decker started out fifteen years ago, most of Decker-Ries’ turnover came from traditional trading. Over the years, there has now been an ongoing transition from pure merchant activity to diversified services. This shift is no coincidence. Luxembourg is small and surrounded by major players. Competitors from neighbouring countries benefit from economies of scale and low prices. ‘We can never compete on volume,’ says Decker. ‘That’s why we have opted for quality and service. It’s the only way to differentiate ourselves.’

In concrete terms, this means that Decker-Ries not only sells building materials but also takes care of the realisation itself. The company has more than forty tilers and thirty carpenters in permanent employment. In addition, it is constantly developing new activities: kitchens, lighting, outdoor furniture. ‘We are expanding our range step by step,’ says Decker. ‘This means that customers can come to us for more and more, without having to coordinate multiple parties.’

Decker sees a clear trend: customers do not have the time or inclination to manage multiple contractors themselves. “They want one company to take care of everything, from A to Z. This has become even more clear during the coronavirus pandemic. People literally gave us the keys to their apartment and expected a fully renovated home after three months. Trust is crucial.”

For most builders merchants, this sounds familiar. The trend towards integrated solutions and turnkey projects is gaining ground across Europe. Customers increasingly expect guidance, advice and a total package.

Vertical integration has another advantage: it improves feedback to suppliers. ‘If, for example, there is a problem with a tile on site, we see it immediately. We take photos, send them on and provide immediate feedback. There are no more extra layers between the manufacturer and the customer. This speeds up communication and reduces conflicts,’ explains Decker.

For manufacturers, this means valuable information about the performance of their products in the field. For builders merchants, it can be an opportunity to strengthen their role as advisors and guardians of quality.

When offering services, it is necessary to find skilled professionals. This may even be the most significant challenge at present. ‘It’s difficult to find good people anywhere in Europe,’ says Decker. ‘After the Second World War, many Italians and Portuguese came to work in Luxembourg. They were essential to the sector. But their children often don’t choose the same path; they want office jobs. The image of skilled work has weakened. Undeservedly so, because I think there’s nothing more beautiful than to make something with your hands.’

Decker-Ries is tackling the challenge by investing heavily in people. The company has set up its own training centre for tilers and works closely with schools to attract young talent. At the same time, it looks beyond national borders, recruiting motivated employees from countries such as Ukraine and Moldova. “We are trying everything – training, partnerships with schools, international recruitment. You must keep investing in people, otherwise you lose the battle for talent,” says Decker.

In addition to service and craftsmanship, Decker-Ries also invests in experience and innovation. The showroom features a digital simulation cube called the In-Cube, which allows customers to see tile combinations projected onto floors and walls. ‘It’s mainly intended to inspire,’ says Decker. ‘Many people still want to touch materials, but with the cube they can already see combinations and play with ideas. We call it “phygital”: physical and digital combined.’

According to Decker, the In-Cube is not a direct turnover engine, but an important tool in the sales process. ‘It’s part of the customer experience. Customers think it’s “cool”: for example, they choose a bathtub, enter the dimensions and can view a 3D projection of their future bathroom, including the tiles, without the need for VR glasses.’ In the future, Decker sees the technology developing further into complete immersive holograms. These will make it possible to actually walk inside and touch your new kitchen, for example. A similar development is underway in the automotive industry.

Decker travels a lot to find inspiration: to the Netherlands, Flanders or Scandinavia, for example. ‘There, you often see showrooms that are a step ahead. That gives us ideas for innovation in Luxembourg too.’

For builders’ merchants, this is an important lesson: innovation does not always have to generate immediate financial returns. It is about building customer loyalty and increasing your competitive edge.

Although vertical integration may seem primarily focused on consumers at first glance, Decker-Ries also applies the concept in its collaboration with professional contractors, project developers and government agencies. ‘Think of the implementation of complete housing projects, or public buildings such as schools or sports centres,’ explains Decker. In addition, the company continues to supply contractors who carry out small to medium-sized projects. For them, Decker-Ries offers practical solutions, such as customised wet concrete mixes. ‘A contractor who needs 1/2 cubic meter of concrete does not have to order a whole truckload. They can come and collect exactly the right amount at our fully automatic Beton2Go machine. That saves costs and prevents waste.’ In this way, Decker-Ries also helps professional construction partners to work more efficiently and sustainably.

When it comes to sustainability, however, Decker is above all realistic: ‘Interest in ESG has waned somewhat in recent years due to all the geopolitical problems, but it remains important.’

His approach: small, concrete steps that are visible to customers and employees. ‘We have solar panels on the roof, charging stations for electric cars, and disposable plastic bottles within the company have been replaced by reusable ones. We are also looking ahead in terms of products, such as Portuguese cork parquet flooring, which is CO₂-neutral and sustainably produced. We include solutions like this in our range, but demand is not yet overwhelming.’

Decker emphasises that sustainability is primarily a marathon, not a sprint. ‘We take people with us step by step. You shouldn’t push too hard, otherwise you lose support. But the direction is clear: more and more customers are asking for technical data sheets and sustainability certificates. Even if innovation and sustainability do not always directly generate more revenue, they strengthen the relationship with customers and position our company as future oriented.’

What can other Europe-wide builders merchants learn from Decker-Ries? According to Laurent Decker, they should no longer differentiate themselves solely on price or volume, but in stead on the added value they offer. ‘Quality, service and trust form the basis for our future.’