Interview with Marc Smit

The interview with Marc Smit is taking place at the head office of Smit & Zoon. It is located in an unobtrusive business park in Weesp, North Holland, bordering the river Vecht. Seen from the outside it is not a building that seeks to be imposing. It looks solid and functional. Inside, the impression is no different. No fuss with design and desk clerks who are there to impress. The person who speaks to me works at a desk behind a screen. She interrupts her work to welcome me. I am deliberately too early, much too early in fact. To have the opportunity to taste the atmosphere again and to take in the reception hall, better than I had done till then. What I saw outside, I see inside as well. No newfangled need to impress. Rather an apparently consciously intended reliability and functionality. No hip office garden, but a neutral space with an open spiral staircase in the middle. At the side, rooms where the doors are open and where I, looking in, see people communicating with each other.

In the compact seating area where I drink my coffee, I focus on the details of what’s on the walls. There I make unexpected and interesting discoveries. They give me an impression of what kind of company Smit & Zoon is and wants to be. I walk up to the lady working at her desk and ask if I can take pictures with my mobile. Careful observation of what is inconspicuously in a niche or on the wall almost carelessly reveals important information about the company. Information that I can use to understand the company. I see a kaleidoscopic range of prizes and acknowledgements that have come to the firm. From my field of view and the images captured on my mobile, I notice several confidence-inspiring pats on the back for the company. Enough discussion material to elaborate on later in the conversation with Marc Smit. For example, as evidence of praiseworthiness among others: Believing Award. Best performing 2012, Company of the Year 2012, Entrepreneur Award, 2013/2014, Declaration Certificate Climate Neutral 2017, EY Family Business Legacy Award 2018. In a somewhat larger format, but still inconspicuous, almost hidden in the coffee corner, I still see something on the wall. I read: “Presented by the staff. 1821-1971. Amsterdam-Weesp. The Two Stockfish.”

The meaning of the massive emblem, brimming with symbolism, is clear. A gift from the staff on the occasion of the 150th anniversary of the firm Smit & Zoon. The designer adopted the move from Amsterdam to Weesp into the symbolic language. The history of Smit & Zoon with the stockfish trade has also not been overlooked. Two fish, depicted as holding swords, form the heroic heart of the artwork. But what do I see above it? Let’s just take a closer look. Yes indeed: a coronet graces that heart!… At that time the royal standard apparently already lived spontaneously and from within the company...

The Two Stockfish, a replica of the emblem on the façade of the former business building on the Brouwersgracht in Amsterdam.

To my initial question as to what his main strategic motivator is as owner of the private limited company Smit & Zoon comes a firm answer.

MS “I want to leave something behind for future generations. More than just a smooth-running company. A company in which not only employees, but also society, can take pride. By making the industry in which we are active more sustainable. As a father, as a citizen and as an entrepreneur, I am very well aware that the leather industry is a polluting sector. We are therefore doing

a lot to reduce the burden on the environment. In the production chain of the leather sector, we are situating our tannins closer and closer to the end products. We want to prevent the negative aspects of our footprint as much as possible, or at least keep them as small as possible. An example of that is what we are doing to minimise and eliminate the use of polluting chromium compounds.”

RL From what you say, I understand that the company is strongly committed to sustainability. Does that go hand in hand with profitability? Among the prizes you have won I also see some for strong entrepreneurship. Aren’t sustainability and attention to the environment at odds with each other?”

MS On the contrary. They go hand in hand. Provided you approach the dilemma in the right way. You have to find a way to create a win-win. The needs of society change and as a company you have to take this into account. You can contribute to finding solutions and be accountable for your policy. That sentiment is very strong at our company. I don’t know whether it is related to the fact that we have been a family business for about 200 years.

RL With regard to the prizes you have garnered. Can you tell us anything about the considerations of the juries? Is there a kind of greatest common divisor in the business world when it comes to the criteria for assessing the best management? I am asking the question because I want to investigate a bit further whether such a thing as an optimal ratio of a company’s individual pursuit of profit to its social responsibility exists.”

MS If you understand entrepreneurship primarily as the optimisation of profit, then I don’t think we as a company are the best example of this. It goes without saying that we are a company that strives for profit. And of course we want to achieve a healthy return. But the profit is not there exclusively, or even primarily for the shareholder. We want and must be able to use it to finance our investments, so that we can also be successful in the future.

RL In the past it was often thought otherwise about that. For a long time, the primary pursuit of profit was all-important. Costs not directly attributable to a company were gladly tossed over the fence at society. Did it personally cause you effort to think differently about that? And what did the company think about that when you took charge there?

MS Because of their long-term vision, family businesses are often very caring. They want to have an impact, the feeling of leaving something positive behind, a legacy. Thinking in that way is really something of our time. Many companies started up after the Second

World War. Young, start-up companies are often strongly focused on profit and less on long-term survival. I was raised, undoubtedly also because of our long company history, with the idea that a family business should be able to pass the business on in a positive way to the next generation. And that business does not only consist of maximising profit as quickly as possible. As a company, we have always been focused on the long term. I had no problem whatsoever with that, in fact: it led to a change of company culture that was desired by the family and felt as necessary within the company. Together with my sister Valerie, I was the driving force behind it.

RL In your time, you folks have made a number of acquisitions. In an interview a few years ago I read that, in an isolated case, one such foreign adventure was not worth repeating. Because of cultural differences and the lack of leadership there to deal with them at the time. What is your overall experience now? Do acquisitions still fit into the company’s strategy?

MS Acquisitions fit into our strategy as long as they add value and we can create synergies. I don’t believe in takeovers purely to increase turnover. When it comes to acquisitions, we pay close attention to whether they enable us to improve the leather chain from the sustainability objective. The takeover of the Italian company Codyeco is a good example of this. This acquisition brought us to the table with major brands in segments where we were not yet active, including the luxury segment for handbags and shoes. These brands were and are very actively involved in sustainability. Together you can make faster progress.

RL You are one of the top players in the industries in which you operate and as a family business you are even the largest. What are your ambitions? In which direction do your thoughts go about the current positioning?

MS I can easily integrate my personal ambitions into the company’s objectives, they actually run parallel. First of all, it is my wish to leave the company better than when I took over from my father. Believe me, that’s a huge challenge. In addition, I want to achieve something that the company can also use in the long term. The fact that we are known worldwide as a company that you would like to do business with, indeed in order to be successful yourself. A company that has a solid customer base and an innovative image, with demonstrable opportunities for future growth. And, certainly not to be forgotten, that it happens with the material leather, which then comes to be seen generally as an extremely beautiful and durable product.

Exhibition stand of Codyeco at the Lineapelle International Leather Fair, Italy, 2018.

RL Am I looking at a satisfied person?

MS Absolutely, but a lot can even be much better. For example, I think that our sustainability policy can be even better, while keeping in mind that the market should still be able to follow us. It is also not good to move too far ahead. We have to continue our mission to be both a sustainable and profitable company. We see that we are on the right track. Our image has greatly improved. It goes along with what kind of company we want to be. Compared to before the millennium, our portfolio has almost completely changed. Our customer base as well. You make products in which you try to get the best out of yourself and the company. We notice that it is appreciated. That we get the customers we deserve.”