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Day 5 - IFA International

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News Euronics Is Back On

News Euronics Is Back On Track European consumer electronics sector has ‘noticeably recovered’ according to Euronics Klaus Lahrmann Managing Director of Euronics International As reported at the company’s IFA press conference, Euronics International, Europe's largest buying group for the CE market, achieved a sales volume of e15.1bn in 2010. With an increase of more than 7% compared with 2009, the international purchasing and marketing co-operative is back on the path to growth. "The European market for consumer electronics has noticeably recovered in the past two years. Even so, we are still seeing considerable differences in individual markets,” said Klaus Lahrmann, Managing Director of Euronics International. “Euronics experienced positive market developments in the previous financial year, especially in Germany, Russia and the Ukraine. In contrast, the group had to accept substantial losses in Spain, Poland and Croatia. Euronics International is represented in 29 European countries at approximately 11,000 locations and thus reaches over 600 million consumers. "The European market for Hans Carpels President of Euronics consumer electronics and home appliances continues to be characterised by intense competition, with high pressure on prices and Euronics International is represented in 29 European countries at approximately 11,000 locations and thus reaches over 600 million consumers. margins. From an industry and retailer perspective, the current precarious position in the global financial markets is also contributing to the intensification of competition.” Lahrmann added: "However, I am certain that with a comprehensive brand campaign and new sales concepts on a European level, we are now providing the answer to the challenges of the market. The future of the Euronics retail trade lies in a strong brand with successful, high-quality marketing on a Europe-wide scale, and consequently we are adhering to our goal of achieving sales of e20bn by 2015." Thanks to the affiliation with new Ukrainian partner Foxtrot Home Appliances in September 2010, Euronics achieved an important milestone in its strategy for Eastern Europe. "The membership of Foxtrot is an important signal for our Eastern European members,” said Hans Carpels, President of Euronics. “As the leading retailer, Foxtrot currently represents a market share of 21% in the Ukraine and 33% in Moldova, with 243 locations in total. The membership of Foxtrot will produce numerous bestpractice examples for other Eastern European countries that have similar local market structures and similar trends in consumer behaviour.” The group believes that another requirement for continued growth in the European market is the rigorous expansion of its added-value strategy. "With a new selective sales concept and flexible marketing opportunities for high-quality CE products, which take into account the different market requirements, we will strengthen the position of our members in a sustainable manner over the next few months,” Lahrmann said. Euronics members of every size are therefore able to offer their customers clear added value. "The complexity of the products is growing, driven by digitalisation, innovation and convergence. The Euronics retail trade must prove its high-quality advisory skills – in the future, a successful and sustained approach to consumers will result from skilled dovetailing of the topics of products, consumer advice and service. We are creating the prerequisites for this across Europe." 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