In the fiscal year 2017, the global multi-brand company BSH Hausgeräte GmbH boosted sales to EUR 13.8 billion, growing considerably faster than the market itself. While the worldwide home appliance market gained an average of 2% last year, BSH sales revenue climbed a substantial 5.8% from the prior year (3.5% in 2016). Here we explore the four key factors behind its success.
Growing region by region
In its two saturated markets, Europe and North America, the home appliance company enjoyed slight revenue gains (Europe: + 2.1%; North America: + 0.1%). BSH expanded its market share in Europe, consolidating its position as the region’s market leader. In BSH’s other three regions it generated double-digit revenue increases in 2017. Performance both in the Asia-Pacific (+ 14.6%) and Greater China (China, Hong Kong, Taiwan (+ 14.1%)) were especially outstanding. Sales revenue in the T-MEA-CIS region (Turkey, Middle East, Africa and CIS countries) also showed extremely good performance, gaining 14%. On a local-currency basis, this BSH region even gained 25.1%, benefiting from vigorous sales growth in Turkey (+ 31% on a local-currency basis).
A larger workforce
In 2017, the workforce at BSH achieved a new record size. At the end of the fiscal year, the company had 61,856 employees worldwide, about 3,500 more than in the previous fiscal year. The company created new jobs in every region – 1,825 in Europe, some 400 of which were in Germany.
BSH again increased its worldwide expenditures on capital investments as well as on research and development, putting itself on course for sustained growth. “We’re right on track to achieve our long-term growth targets, while at the same time pursuing the cultural and digital transformation of BSH,” said Karsten Ottenberg, Chairman of the Management Board at BSH. Digital services for smart home appliances, marketed under Home Connect, are playing an increasingly important role. They offer consumers customizable added value and tap additional sources of income for BSH with new, digital business models. “The way people live, cook and do housework is changing. We want to remain consumers’ first choice all over the world, so we’re aiming to offer people exciting new possibilities. That’s why BSH continues to pursue its transformation into a Hardware+ company that provides not just excellent home appliances, but an increasing range of digital, individual services,” Ottenberg explained.
As in previous years, BSH invested vigorously in the future last year. Investments (about EUR 637 million, or about 4.6% of revenue) and spending on research and development (about EUR 622 million, or about 4.5% of revenue) set new records. Three new factories started operations last year, two in Poland and one in China. Giengen, Germany, the pace-setter in Industry 4.0 excellence for the entire global BSH Group and the industry in general, saw operations start up at one of the world’s most up-to-date, fully connected production facilities within the home appliance industry. Further investments saw BSH open numerous brand stores and showrooms both in metropolitan centres like Vienna, Shanghai and Chicago and in growth markets, specifically in booming cities like Cape Town, Marrakesh and Mumbai. The company is also testing services that enable consumers who use heavily frequented social networks (like WeChat in China) to custom-configure their home appliances online.
With these figures, BSH is on track with its plan of achieving a sales revenue of EUR 20 billion by 2025.
BSH | bsh-group.com