SPOTLIGHT ON GERMANY MADE IN GERMANY THE GUARANTEE OF QUALITY – BUT WHY? With its continuing AAA economic rating, Germany is the strongest driving force behind the European economy, and it is used by many global electronics manufacturers as a European headquarter location, or as a test market before attempting to attack other European countries. In today’s issue, IFAInternational decided to focus on the German market rather than the European market as a whole. Europe of course differs from the United States, but is similar to Asia through the fact that it is made up of many countries, with different languages and cultures. Germany for its part even has major cultural differences between its different regions. But Germany has a single trade mark when it comes to manufacturing: “Quality”. But just what IS German quality, and how is it obtained? In the next pages, we talk to some of the most influential players in the German home electronics markets about what makes them different on the global scene. A LEADER IN EUROPE Germany has the largest national economy in Europe, and arguably the fourth largest GDP in the world. A quarter of the total value added to the German economy every year can be attributed to industry. Germany is the world’s third largest exporter, and 75% of all German exports come from the highly innovative manufacturing sector and 90% of total spending on research and development in Germany is devoted to industrial companies. In Europe's other developed countries, the average is around 70%. With a quarterly growth rate in the second quarter 0.7%, Germany helped lift the euro zone out of an 18-month period of contraction. [ Interview by Richard Barnes ] “Kärcher entered the consumer market in 1984. Since then this business segment has developed very well. In recent years, our Home & Garden and Professional ranges have basically contributed half of our sales revenues. Kärcher is well-known as a manufacturer of pressure washers for private use and we are steadily increasing our recognition as a producer of domestic appliances for indoor applications. Our decision to bring to market the Kärcher Home Line, an exclusive range of white goods for specialist electrical retailers, contributes daily to this further recognition. How has Kärcher been weathering the difficult economic times? Even during the global financial and economic crisis in 2009 we created jobs and increased our global market share. As a family company we plan for the long term. While exercising great financial discipline, we have continued to invest in key areas such as customer service, research and development and production. That has enabled us more quickly to take advantage of the economic upswing. How are your sales channels evolving? Kärcher relies on a variety of sales channels that always keep our customer’s needs in focus. Our customers want to buy our machines in places where they purchase their other domestic appliances, so three years ago we decided to bring to market the Kärcher Home Line designed specially for electrical retailers. Our aim is to become a full range provider in partnership with specialist electrical retailers. In Germany we have established our distribution network in less than three years and IFA will be an important opportunity to consolidate relationships with our trading partners. What product segments are attracting interest? Our window vacuum continues to be a great hit with customers and will be on show at IFA with a new extension pole that increases Region Family Firm Takes Long-term View Having expanded into the consumer market over 30 years ago Kärcher continues to grow this side of the business Formally known principally as a supplier of industrial cleaners, today Kärcher continues to expand its consumer product range. Hartmut Jenner, Kärcher’s Chief Executive Officer and Chairman of the Management Board, describes the German company’s growing ambitions in the consumer sector… Hartmut Jenner Kärcher’s Chief Executive Officer and Chairman of the Management Board reach. Our steam cleaners also attract great interest, our research showing that steam removes 99.99% of common household bacteria from hard floors. What are Kärcher’s core values? Everything we do is based on values that have always been a fixed component of our corporate culture. They include, first and foremost, the aspiration to deliver top performance for our customers. We are able to do so because we do our work with dedication, discipline and ambition and are not content just to make good products, but also to keep on striving to improve them. At the same time, responsibility for our own work, for the company and its people are things we take seriously. These values are the driving force of all that we do and will secure our growth sustainably. Yours is a family company rather than a publicly owned company. How does this differentiate Kärcher from other companies? As a family company we can plan and act sustainably. That is possible because our partners give backing to the firm and do not extract profits but reinvest them in the company. That enables us to think in ten-year periods rather than from quarter to quarter, and to set ourselves forwardlooking goals that we pursue without allowing ourselves to be overly impressed by conditions in individual markets or sectors at a particular time. That is the way to achieve continuous growth over long periods, including through difficult times. Passage Hall 2.1/4.1 Stand 101 54
SPOTLIGHT ON GERMANY Region The Power of a Brand Bosch builds on years of consumer confidence to beat crisis After announcing record results with a turnover of 9.8 billion euros for 2012, Bosch und Siemens Hausgeräte (BSH) has a cash reserve of 1.4 billion euros, selling four million devices from thier Super Efficiency Portfolio in Europe alone last year. The Managing Director of Bosch Germany, Harald Friedrich, told IFAInternational what lies behind the company’s continued success... [ Interview by Richard Barnes ] Our core values are longevity and perfection in every detail. When you add sustainability through advanced energy and water-saving technologies, plus our huge range of products, Bosch is a very attractive brand. Of course here in Germany, we have the extra advantage of being very well established and consequently, we have great brand awareness. The fact that we now have 320 products in the A+++ category is also an important part of our success. When people are thinking about which washing machine to go for, we can offer an appliance that consumes 75% less electricity than a machine of 15 years ago - 150 Kilowatt hours per year as opposed to 600 – representing a saving of over 100 euros per year at current energy prices. And our most efficient dishwasher uses only 6 litres of water for a full cycle, which is really a very small amount of water indeed. How much further can you go in the field of energy saving? Of course the absolute potential is declining simply because to achieve a further 50% reduction in energy consumption, we are already starting from a very low base point. But the ways we reduce energy consumption are part of every aspect of an appliance, from the airflow through to the insulation, so there is still some potential for further reductions. There is always the possibility to add more features like the i-DOS system, which is fully integrated into the housing of the washing machine and that automatically doses the washing product according to how dirty the clothes are. Because there is no excess of detergent, the quantity of water needed to rinse it is also reduced, so you get perfect results every time with the absolute minimum energy and water consumption. How important is IFA and its official daily IFAInternational in your yearly marketing plan? IFA is a key anchor for our marketing planning, and of course we invest considerable amounts of money in our presence there because the stand is our shop window for the world. On top of that, the timing of the event sits well with the yearly product cycle, but perhaps the most surprising thing that has happened since IFA introduced white goods to the event six years ago, is that this has contributed to the attractiveness of the category. What I mean by that is that when white goods were included there, this fact alone generated a lot of press and media coverage. Alongside that, the very nature of white goods has changed profoundly in that same period, and consumers now better understand the features and innovations like the Zeolite drying system in our dishwashers. They are more engaged, because it’s “… the ways we reduce energy consumption are part of every aspect of an appliance…” impressive, so I’m happy to say that white goods are really a hot topic these days. As for the magazine, when I’m at IFA, I read IFAInternational every day, it’s the most powerful way to reach out to the industry, it’s concise and therefore quick to read which is important for time-pressed people, and I like the fact that it is also online for much broader availability. Hall 3.1 Stand 101 KEY USPs Elements Swarovski Variety of colours Option to customize DIAMOND COVER GIVES YOU SWAROVSKI Sparkling Swarovski stones-- from pastel shades to bright colors on classics such as white, black or gold, as well as numerous sizes and shapes-- can give a mobile phone a personal touch, says Diamond Cover. Made in Germany ( workshops close to Munich and Berlin airport), Harald Friedrich Managing Director, Bosch Germany ADVERTORIAL Diamond Cover signed its exclusive branding contract in 2012 to become one of the first in Germany to make handcrafted lifestyle products with Swarovski Elements, the premium brand for Swarovski Crystal. With these crystal treasures, smartphones become unique works of art. Diamond Cover can also realize any individual design wishes--decorating tablets, speakers, and other accessories with Swarovski Elements. http//www.diamonds-cover.com » HALL 15.1 / STAND 217 www.ifa-international.org IFAInternational • Saturday 7 th & Sunday 8 th September 2013 55
