Dölf Früh, Chairman of the Board of the new Media Swiss Group, is becoming a top player in the Swiss online market.A few weeks ago, Dölf Früh caused a stir in the Swiss media world when his Media Swiss AG, operator of www.gate24.ch, took over the e-business provider Xmedia with its successful Scout24 online platforms.Dölf Früh? The entrepreneur has so far worked in the background. However, the success story of why he will in future be running Switzerland's biggest competence center for online marketplaces and cross-media services could provide the material for a "textbook for entrepreneurs".
From its headquarters in Teufen, Appenzell, the Media Swiss Group today operates with 350 employees. The success story began just over 20 years ago with telephone stickers. In addition to important telephone numbers, these also featured advertisements from local businesses. Dölf Früh developed his business by producing village plans and geographical maps for local authorities. Traditional map publishers were too expensive for many communities. In this situation, some localities approached Früh with the request if he could realize map production at more favorable prices.
In 1986, Dölf Früh printed the first "rudimentary maps" and financed them with local advertising. "Unfortunately, the big cartographers didn't want to cooperate." So the self-made man started producing the maps himself on the basis of data from Swisstop. Since then, he publishes a new edition about every three years. "Today, we have a standard that is absolutely top of the line. We are the market leader and have covered the whole of Switzerland."
The entrepreneur Dölf Früh grew up as a farmer's son, did an apprenticeship as a craftsman, continued his education as a businessman, and then took the second educational path to earn his Matura. Even then, he financed this education by working in the field. "My basic business insight was that I realized early on that we operate in predatory markets everywhere. Whoever is stronger in marketing and has the stronger sales wins," says Früh, summarizing his recipe for success. In the spirit of strong sales, the tall Appenzeller already gathered a number of salespeople around him in his early days. According to Früh, he "slipped into the media industry rather by chance" at that time, but has consistently followed this path, built up know-how and trained people. Today, the new Media Swiss Group employs more than 100 sales staff at Media Swiss and, since the merger, an additional 50 sales staff from the Scout Group. Without doubt one of the most remarkable sales divisions in the Swiss media landscape. Dölf Früh was still on the road himself as a front man in the sales force until 1997. "The exciting thing was that I was able to go through all the stages myself, from a one-man operation to an entrepreneur with 350 employees."
What drove him? In view of the continuously growing business successes, Früh could soon have afforded a more peaceful life. Früh explains why he has not reduced his commitment despite his successes to this day: "The man on the street says, 'When I have a million, or maybe five, I'll go to the Bahamas. But you probably only have thoughts like that until you're financially satiated. Then other things come to the fore. The fascination of the work. The fun of developing. A company is like a river. When it stops flowing, it starts to stink." What flows must also grow. "That's when you're stuck in a fascinating task, you just want to keep moving forward."
For Dölf Früh and his ventures, this flow also meant constant adaptation to different media. "We try to link the old economy with the new. Doing one thing and resolutely tackling the other. This maxim of action helps us move forward again and again."
Media Swiss entered the still young medium of the Internet back in 1998. At first, Früh only carefully observed the developments. "Instead, we found a business model that yielded profits right from the start." Media Swiss also held out at the beginning of the new millennium when the Internet bubble burst in 2001. "Today, it's the case that the Internet is growing strongly and print remains reasonably stable." For Dölf Früh, this is a comfortable situation, since he is present in the interesting media genres with the cards and his Internet portals.
With all these activities, a third pillar inevitably had to be added if Media Swiss was to manage its finances properly. Since most of the approximately 100,000 customers come from the SME sector, many entrepreneurs here work with WIR money. His company has to "accept high seven-digit sums of WIR" per year. In order to be able to bring this WIR money back into circulation, Früh has built up his involvement in the real estate sector. "We constantly build on about ten construction sites and realize well-kept superstructures, which we then rent out and sell."
With Gate24 and now also with the various portals of Scout24, the Media Swiss Group, which was newly formed in 2007, has market-leading portals on offer. What have Dölf Früh and his new business partner Daniel Grossen done better than the competitors? Früh sees the basis for success "in the fact that we are shaped by the classic publishing environment. Many Internet marketplaces came into being because publishers knew that they would also have to go the Internet route. But a publisher with his classic publishing house has two souls in his chest: every franc that flows into the Internet breaks three francs out of the print business. "So you cannibalize yourself. But until you're ready to cannibalize yourself, it takes years in a publishing house for the decision to mature." With online-only portals, there is a different mindset and a different business plan. "We have free rein." Dölf Früh sees a major advantage for the future in the Scout24 umbrella brand. Competitors offer their services through several brands, "which requires a lot more marketing power and technology."
Today, various competencies are concentrated under the umbrella of the Media Swiss Group. In addition to 150 people in sales, the company has numerous specialists in technology and in the field of information technology, who are already providing support for interesting customers abroad.
A company with the new name Media Swiss Group since February sounds ambitious. "Yes, it's true, we have defined the strategic path to becoming a major group of companies," says Früh. Since German Telecom is also on board via a stake in Scout, the entrepreneur in Teufen can also imagine increased expansion abroad in the future.
The future of online marketplaces is undisputed for the managers of the Media Swiss Group. Media Swiss wants to "consolidate and expand" its leading position. Früh and Grossen want to occupy another field just as strongly in the near future. Their portals currently have "around six million visits per month. That's around 2.9 billion page impressions per year." And on sites that are used so intensively, advertising can be placed. "Here, we've marketed virtually nothing yet. That's about the same as if newspapers printed blank pages alongside their journalistic articles," Früh says.
And he reckons that there is still huge potential for his company to exploit here if the slowly awakening online advertising market of just under two percent in Switzerland eventually approaches the European average of ten percent.
Andreas Panzeri