Growth in new markets

Last year the European market for electric garden tools contracted by nearly two per cent to a volume of € 843 mio. The number of units sold remained constant at 13.7 mio. The market was already falling in 2009, when it lost nine per cent by value (€ 856 mio) and seven per cent by volume during the year. These figures were recently released by Bosch. A sales volume of € 307 mio in 2010 for the sector as a whole in Germany, Austria and Switzerland (known as the DACH region) amounted to a decline of some 1.3 per cent. The number of units sold was down by 7.5 per cent to a total of 2.75 mio tools. The figures reveal that garden tools powered by lithium-ion batteries developed at an above-average rate in Europe: this segment experienced growth of five per cent by value in 2010 (2009: 13 per cent). The year 2011 started off downright positively for the market. However, the changeable weather later on ensured that business became more difficult. Sales for the first six months in the DACH region were 4.8 per cent below the same period year-on-year, while the number of units sold was 8.5 per cent down. Bosch acquitted itself extremely well within this environment, in the eyes of the head of the garden division: last year saw the company increase sales in the garden segment by 2.4 per cent to around € 223 mio. After exchange-rate adjustment the sales figure remained at the previous year’s level. However, no growth was achieved by the manufacturer in its core market of western Europe. This contrasts with the increase of six per cent recorded in eastern Europe. Bosch grew garden sales by 38 per cent in Asia, and by 17 per cent in the Middle East and Africa. The division obtains more than 90 per cent of its turnover from Europe. Sales in Germany, Austria and Switzerland were 4.6 per cent up on the previous year. Today Bosch claims a 24 per cent share of the market for electric powered garden tools throughout Europe. For the past year the company has been opening up a new market in India. It has established a distributing operation with a staff of twelve in the country, and already has 200 specialist dealers selling the tools, 50 of them straight garden specialists. Further growth is to be created through event marketing, which includes the organisation of 300 demonstration days per year. This year Bosch is pushing the “Green and Clean” concept in India: garden tools are being marketed in tandem with pressure cleaners. The expectations are high: it is hoped that sales…