At a media briefing in Dubai today, Kurt-Ludwig Gutberlet, President and CEO, BSH Bosch and Siemens Hausgerate GmbH, said that the focus on customer needs and investment in local distribution channels have been the key to its success in the region.
“Present in more than 50 countries worldwide with more than 34,500 employees, our annual turnover is more than 7 billion euros. We have a think-global-act-local distribution and marketing strategy, and we are the number one company in Germany and Europe, and third worldwide. We have developed strong international sales by adapting to the needs of local markets,” said Gutberlet.
He added: “In the Middle East, we have developed strategic alliances with local partners, and our distributors are the operational extensions of our local business strategies.”
BSH Middle East recorded sales worth US$125 million in the region last year and targets overall growth of 20 per cent in 2006.
Commenting on the group’s regional success, Heiko Fischer, Managing Director for Middle East, South Asia and North Africa, BSH Bosch and Siemens Domestic Appliances, said: “We have doubled sales since 2002 thanks to our local partners. Our UAE distributor Better Life has tripled sales of Siemens products since 2002 and aims for a turnover of US$12-15 million for Siemens products alone in 2006. Last year we recognised Better Life as our top Siemens distributor in the Middle East, North Africa and South Asia.”
The UAE has served as the regional headquarters of BSH since 1997. According to Fischer, Middle East turnover is small compared to the company’s global numbers, but the region offers tremendous potential.
Ajai Dayal, General Manager, Retail and Marketing, Easa Saleh Al Gurg group, said: “Research shows that the demand for luxury home appliances and built-in kitchen products in the Middle East is booming thanks to high per capita incomes, and the astonishing growth of the retail and real estate markets.”
He said: “Better Life saw sales growth of 65 per cent in 2004, which was more than our projections, and we are on course to beat our forecasts for 2005, too. We’re planning for further growth in 2006 with 11 Better Life outlets in the UAE now fully operational.”
Commenting on UAE trends in the home appliance sector, Dayal said built-in kitchen products are gaining in popularity, attracting architects, interior designers and developers as well as homeowners.
“Siemens are the pioneers of built-in appliances and today with Siemens, we are the leaders in this segment in our market.”
Dayal added: “Many families prefer to socialise at home and so home appliances have a high aspirational value, with advanced technology, multi-functional appliances accounting for a large percentage of sales. The increasing number of higher-income expatriates entering the UAE is also driving the premium segment of the market.”
BSH’s Kurt-Ludwig Gutberlet added: “This year BSH will launch split air conditioners to strengthen its position in the cooling segment, and work harder to meet demand for large capacity refrigerators. In the premium market, we are market leaders in all product categories except cooling.
”Bosch and Siemens have strong brand awareness in the region, and the expertise and network of our local partners will help us achieve successful ongoing sales and marketing strategies.”
Better Life is the only specialist home appliances chain in the UAE and is part of the Easa Saleh Al Gurg Group (ESAG). A large portfolio of world-class, Western brands includes Siemens, Admiral, Terim, Wolf, Ufesa, Binatone, Alno, Fisher & Paykel, Zanussi and Electrolux. Better Life showrooms are located in Abu Dhabi, Dubai, Sharjah, Ras Al Khaimah and Fujairah.
The Easa Saleh Al Gurg (ESAG) Group was founded by its Chairman and the UAE’s ambassador to the UK, H.E Easa Saleh Al Gurg CBE, in 1960. Today the group is associated with over 20 brands such as British American Tobacco, Unilever, Dunlop, United Colors of Benetton, and Burmah Castrol.
About BSH Bosch and Siemens Hausgerate Gmbh
BSH Bosch und Siemens Hausgerate Gmbh is a corporate group operating worldwide, which boasts annual sales in excess of 6 billion euros. It stemmed from a joint venture set up in 1967 between Robert Bosch Gmbh (Stuttgart) and Siemens AG (Munich). Today, BSH operates 43 factories in 15 countries in Europe, the USA, Latin America and Asia.
Siemens is Germany’s top company in the domestic appliance market and Europe’s leading manufacturer of integrated appliances. The brand’s traditional strengths are technology and design, especially in the cooking and laundry sectors and in integrated appliances.
For more than 150 years, Siemens has been one of Germany’s greatest industrial and technological brands with activities spanning the entire breadth of the electrical engineering industry. Management of the household appliance business under the Siemens brand has been exercised by BSH since 1967.
