📋 Tender Overview
Bosch Power Tools achieved sales of 5.1 billion euros in more than 190 countries in the fiscal year 2020. This growth corresponds to nine percent adjusted for currency effects six percent nominally compared to the previous year. We achieved record sales in 2020 in a very dynamic environment induced by the pandemic. This record was primarily due to the trust which users and customers placed in our company as well as the dedication of our employees says Henk Becker President of Bosch Power Tools. Business developed much better than initially expected. Following the drastic drop in turnover in spring demand in the industry rose substantially in the second half of the year as a result of changes in the purchasing behavior in the wake of the corona pandemic.Double-digit sales growth in around 30 sales organizationsIn 2020 the company experienced double-digit sales growth in around 30 sales organizations. Following currency adjustments the divisions turnover in Europe rose by a total of 13 percent. The increase in Germany was 23 percent. In North America Bosch Power Tools saw its sales rise by 10 percent while the corresponding figure in Latin America was 31 percent. Asia-Pacific was the only region to record a decline. Here sales were around eight percent below the level of the previous year. This can be attributed to the restrictions caused by the much longer and stricter lockdowns than in other regions. India and the ASEAN region were particularly affected by these lockdowns. In 2020 the addressable markets for Bosch Power Tools grew by 5 percent globally which means that the company gained market shares as a result of the reported sales increase.Innovations a multi-channel strategy and a strong brand as growth driversThe reasons for the overall very successful year 2020 are manifold but can be attributed to three overriding factors Product innovations geared to user needs a multi-channel strategy focusing on different target groups a systematic brand management and the resulting positioning of the Bosch brand.Long before the start of the corona pandemic Bosch Power Tools based its activities along the entire value chain on an agile set-up in order to systematically focus on the users needs. We dealt with the subject of agility in a consistent manner at a very early stage. The principles upon which this is based such as short-cycle iterative work in sprints are experienced and improved by us daily concludes Becker. In his opinion the early and lasting involvement of users is always the starting point for innovations. The company again successfully launched more than 100 products on the market even in this very dynamic environment. The expansion of the cordless tool portfolio proved to be a special highlight last year. For example more than 30 new tools were added to the portfolio for professional users. Particularly significant are the Biturbo tools which attain performance dimensions that were previously reserved for corded tools. The Bosch cordless miter saw GCM 18V-305 GDC Professional is one of these new tools. The success story of innovative products for home and garden in the DIY segments was also continued. The Atino for example is a line laser with an integrated measuring tape. This laser makes it easy to align and affix objects to a wall without a second person having to help. Another convenient product is the EasyPump a light and extremely compact cordless pneumatic pump weighing just 430 grams. Featuring an autostop function for the required pressure it can be used to inflate different types of tires or balls in any location.The company has been continuously investing in the digitalization of sales and marketing processes for years and the flexibilization of its value chain and was thus ideally prepared for the rise in online purchases. As a result direct deliveries of online orders to consumers were made possible at very short notice despite the restrictions in previous months. This has enabled the division to take advantage of the trend towards digitalization and actively shape the associated change. This affects both the sales channels and the companys actual value proposal. For example online purchases proved to be a major growth driver last year. Their share increased substantially and accounted for almost 25 percent of sales. Since there has been a rapid change in the information and buying behavior of our users we expanded our digital information and interaction services as well as our cooperation with multi-channel and online retailers says Henk Becker.Bosch Power Tools is systematically implementing the relevant brand promises in the marketing mix both in the segments for DIY and for professional users. This results in two brand worlds The green world is geared to the needs of DIY users who want to turn their own ideas into reality in their home and garden projects. The blue world on the other hand is geared to the needs of professional users who are essentially concerned with efficient and effective work on the construction site. The presentation of the prestigious Best Brands Award 2021 in the category Best Brand Overall in February this year clearly indicates that this strategy fulfills users needs.What makes the awards so special is that they are based on a representative consumer survey conducted by GfK. Two criteria are decisive The actual economic success of a brand Share of Market as well as the attractiveness of the brand as perceived by consumers Share of Soul. 72 percent of the participants stated that they trust Bosch as a power tools brand the highest rating across all brands. Satisfaction with the brand also led to the highest cross-buying readiness in the award. This award is a motivation to further focus consistently on our users needs and to offer them added value says Henk Becker.
