Interview with Hein Gericke Paul Liao

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Interview with Hein Gericke Paul Liao
Hertler

Sports & scene

Interview with Hein Gericke Paul Liao

What’s going on with Hein Gericke?
Old bosses, new bosses

Paul Liao is the boss of the Spanish-based Chinese helmet manufacturer LS2. He wants to reorganize the insolvent Gericke chain through takeover. In a MOTORRAD interview, he described the plans with Ralf Baches, who was still managing director at the time. Shortly after the editorial meeting, Liao announced that Baches ’had left the company.

Michael Schumann

04/10/2014

With the takeover by Chinese investors, represented by the new managing director Paul Liao, the Hein Gericke Europe GmbH emerged from the insolvent Hein Gericke Group.

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Old bosses, new bosses

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Please describe the current situation in the stores to us, how will the changes affect customers?

Ralf Baches: The inventory has been increasing continuously since mid-February. The aim is for customers to find the full range in stores again at the start of the season. In principle, Hein Gericke should continue to exist as a brand and shop chain, there are no changes planned. We have the advantage that we don’t start from scratch because the brand is accepted.

Paul Liao: When it comes to the range of goods, speed is now required, so goods have to be delivered to the warehouse and shops as quickly as possible. But as I said, it’s already running. We are also planning to significantly increase the number of employees, especially in the shops, from 140 at present to over 200 in order to offer our customers better service. The number of shops is also to be increased. Hein Gericke currently operates 52 shops in Germany, 70 are planned. We are also thinking about expanding existing shops.

What period are we talking about here?

Paul Liao: The next catalog will be available for 2015 at the end of 2014. There will be a lot of completely new products in it. And as far as the general development of Hein Gericke Europe is concerned, I think in five-year steps. It was the same with me up to now. I started LS2 in Spain in 2007, and after around five years we were represented in 80 countries around the world. For Hein Gericke this means that the company’s situation in Germany and at the other Hein Gericke locations in Europe, i.e. Austria, northern Italy, Poland and the Benelux countries, must stabilize over the next five years. We have to regain customer trust. We have also regained a foothold in Great Britain, where Hein Gericke had practically completely disappeared from the scene. At the same time, we want to launch our own stores in Spain and France and also supply dealers who offer Hein Gericke house brands such as Pro Sports, Bullson or Tuareg. The second five-year step is then an international expansion. The goal is the global market – Asia, America – so many things are conceivable. First of all, however, one thing is clear: Hein Gericke has to become number one again in Germany.

With which products do you want to achieve this?

Paul Liao: Basically exclusively with motorcycle accessories and with offers that are aimed at motorcyclists. There will be no more experiments, for example with ski clothing. The range should consist of around 50 percent clothing and around 25 percent helmets and 25 percent technology and accessories. We not only want to keep Gericke’s own brands Pro Sports, Bullson and Tuareg, but also expand and improve them. In addition, the top brands in the industry are to be offered. Hein Gericke is to become a premium supplier again in the motorcycle sector.

But premium always also means expensive. Where does Hein Gericke want to place himself in terms of price?

Paul Liao: Clearly not as cheap Jakob. We also see no point in entering a price war against Polo or even Louis. Since we as a manufacturer come from the Asian market ourselves and know this market and its resources very well, we have clear advantages there in purchasing, which is done directly from the manufacturer. We pass these advantages on to our customers. But not in the form of cheap products, but of better quality
and better design at good prices.


Interview with Hein Gericke Paul Liao


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Big round in the conference room: The editors Jorg Lohse, Stefan Kaschel, Michael Schumann and Michael Pfeiffer (from above) spoke to the Gericke bosses (left).

What role will LS2 products play in this??

Paul Liao: They are offered like others. It is already the case that our helmets and other LS2 items are offered by specialist retailers in Germany.

Will Hein Gericke remain a German brand in the long term? Or maybe the company headquarters in Dusseldorf – in Barcelona, ​​Spain – should be merged with that of LS2?

Ralf Baches: The DNA of Hein Gericke, product development and design has always been in Dusseldorf, everything was created there and continues to be created there.

Paul Liao: Hm, Barcelona is an interesting idea (grins broadly, editor). But seriously: No, that’s not planned. For a company like Hein Gericke, Germany is the best location. This is the case simply because of the mentality of the people.

Managing Director


Interview with Hein Gericke Paul Liao


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Managing Director Paul Rutian Liao.

Paul Rutian Liao
On February 1, the industrialist from the province of Guangdong northwest of Hong Kong took over the management of Hein Gericke. In 1999, after studying for an MBA in China, Paul Liao joined his brother Arthur Liao’s helmet company MHR. This resulted in Jiangmen Pengcheng Helmets (JPH, two million helmets annually). In 2006 the JPH brand LS2 was created. Liao has headed their company headquarters in Barcelona since 2007.


Interview with Hein Gericke Paul Liao


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Managing Director Ralf Baches.

Ralf Baches
The retail salesman started at Hein Gericke under the aegis of the founder and namesake and has been responsible for purchasing and product development since the mid-1980s. Baches retained his position after the first bankruptcy and the takeover by the US company Fairchild. In 2009 Baches acquired the brand together with his future co-managing directors in the form of a management buyout. After the takeover in 2014, Baches remained in the management of Hein Gericke Europe for just under two months under the chairmanship of Paul Liao. At the end of March, Liao Baches announced that he was leaving.

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