Vectron Systems AG

Vectron Systems AG
Market environment
Despite an ongoing financial crisis and economic downturn, the market of POS
systems is still pretty stable with slight cyclicality in sales compared to other
industries. In fact, the macroeconomic factors weakly influence the POS system
market. Of course in times of economic slowdown, consumers buy less goods, but
they still making purchases, just shopping differently, shifting their buying
preferences from expensive goods to cheaper ones. Therefore, the demand for
POS systems changes less drastically in comparison to the demand for other
goods.
Advances in technology, lower prices, and a need of modernization have been
some of the factors that have fuelled POS market till 2007 when the market had
been increasing both in terms of value and quantity. Over the period 2005 till 2007
the European market was on the growing path but with a declining trend
afterwards. Thus, the overall amount of units sold (installations) in European
market has been ranging within 890 to 1004 thousand units. However, according to
the estimation of IC Consulting, the European market development of POS system
will turn positive in 2009. This trend will sustain till 2011 reaching 988.7 thousand
units at an average annual growth of 1.8%.
The development of the European POS systems market in units (in thousands)
1200
1000
800
600
400
200
0
812,5
Source: IC Consulting 2009; CBS Research AG
The cyclical trend of European market is mostly attributable to fluctuations of
Western European market (UK, Germany, France, Italy, Spain, Austria,
Switzerland, Benelux and Nordic countries) which achieved market saturation on a
high level. The market size in Western Europe ranges between 812.5 to 900
thousand units over the period 2005-2011E period indicating an annual average
growth rate of 1%.
In comparison, the markets in Eastern European countries show a sturdy growing
trend in the given period and will rise to 128.6 thousand units in 2011E with the
average annual growth rate of 8.6%. In fact, the biggest retail chains are expanding
faster in Eastern European countries than in Western Europe. Poland, Hungary,
Slovakia, Czech Republic and Romania are widening and modernizing their retail
markets, which includes shops automation and an increase of POS demand in
these countries. However, the market share of Eastern European countries within
the total European market is still small.
www.cbseydlerresearch.ag
852,9
890,8 943,2 1004
899,9
848,1 784,9 820 860,1
952,3 891,8 937,2 988,7
78,3 90,3 104,1 104,2 106,9 117,2 128,6 200
2005 2006 2007 2008 2009E 2010E 2011E
Europe (Western and Eastern) Western Europe Eastern Europe
POS market less prone
to current economic
downturn
IC consulting expects
for the European
market a growth of
1.8% in 2009
1200
1000
800
600
400
Close Brothers Seydler Research AG | 21
0
Saturated market in
Western Europe
Eastern European
markets still on a
growth path