The Vorwerk Annual Report 2OO8

MANAGEMENT REPORT THERMOMIXdemonstration. Here it is often only a small step from the initial enthusiasm to a purchase. Thequalified presentation at home, in which the Thermomix is demonstrated and the delicaciesenjoyed, allows the special features of the appliance to be convincingly highlighted and thebenefits clearly shown, something which arouses the desire to purchase. Since this is so successfulwith the Thermomix, not only is the number of customers constantly growing but the numberof representatives too.The Thermomix Division has managed to convincingly combine a product, salessystem and growth strategy into a successful business model. Thermomix achieved a turnoverof 386 million euros worldwide with an increase of 17 per cent. No other Vorwerk company isgrowing as dynamically as this. In this respect it has been possible to support the businesssuccess from an increasing number of countries and thus to further strengthen independencyfrom regional fluctuations. Besides the core countries of Italy and Spain other, to-date smallercountries are developing considerably. In this context the talk today cannot only be of a successfulproduct for Southern Europe but of one for the whole of Europe. For the very first time some400,000 appliances were sold worldwide, a fact which also presented challenges for productionand distribution operations.Italy just had the edge in 2008 in the sportsmanlike competition to be ranked the largestThermomix company. The Vorwerk sales organisation there, Contempora, achieved an increasein turnover of 7 per cent to 114 million euros for its “Bimby”, the name of the Thermomixappliance in Italy i.e. another new record. Spain, in the previous year just ahead of Italy, had toaccept a decrease in 2008 with sales standing at 102 million euros. The cause of this is not onlyto be found in the already difficult economic situation in Spain before the global financial marketcrisis, but also in the structural consolidation, something Italy has already been through. Themeasures initiated represent a good basis to enable Spain to once again grow at rates achievedin previous years. However, the financial crisis will probably hit Spain harder than most otherEuropean countries.The most pleasing signal in the Thermomix Division was the extraordinary success inGermany. The sales volume here was increased remarkably by 60 per cent to 66 million euros.Germany was thus able to impressively maintain its third place ranking among the largest Thermomixcountries. The readjustments made in recent years, whilst accepting possible losses in the numberof representatives, are now beginning to pay off to the full. A particularly attractive finance24