Bosch positions to attack competition
Nigeria is a big market with the right demography. According to economic experts, the country which is the largest economy in Africa is expected to become the third most populous country by 2050 and also a country that has one of the highest returns on investment in the world.
With about 170 million people, growing middle class which has jumped six fold to over 23 million and per capita income in excess of $5,000, it is understandable why Nigeria’s market is hard-to-ignore by multinationals and foreign consumer investors, especially as investing in Nigeria opens the doors of African market to any investor, which is a large market with over one-billion population.
It was this potential that recently lured one of the German top brands, Bosch home appliances to Nigeria after several attempts at seeking partners to enter the country. It finally found a partner in Pedini Nigeria, a kitchen manufacturer globally with over 300 showrooms in 25 countries. The companies recently opened one of the biggest showrooms of Bosch home appliances in Lagos, Nigeria.
The collaboration of both companies is to leverage the opportunities in the Nigerian market and compete effectively in both price and with quality technology products which Bosch is renowned for over 125 years. On the other hand, Pedini has for over 50 years established itself as one of the premier kitchen manufacturers globally.
With available potential in the Nigerian market and offer of high quality products to consumers, the companies said they are confident of the success in the Nigerian market as it plans to open about 100 showrooms across Nigeria over the next three years.
Confident of Nigerian potentials and the desire of BSH home appliances to leverage the market for further growth, Norbert Klein who is CEO Turkey and Head of region for Middle East and Africa told BusinessDay at the unveiling of the showroom that “We think and believe that this market has a very big potential especially big potential for quality products. Happily we found Pedini as a very good partner because the promoters are already in Kitchen business which fits perfectly with us because good quality kitchen will meet good home appliances”.
“In the past we have tried as it is not easy to find a good partner. But now we are sure that this market will develop quite fast”, he said describing Bosch Group as a worldwide and foremost in household appliances with many brands under the group. “The group has a turnover of about 13 billion Euros and our target is to get a good footprint in Africa. We have a good market share in S/ Africa and Morocco and we are sure to have a good market share in Nigeria”.
Michaell Schollhorn, member of the board of management of Bosch who accompanied Klein to witness the unveiling of the showroom explained that Bosch is a global company that employs about 400,000 people and makes about 70 billion euros in revenue and the company is globally active in 50 countries, he said.
“Our largest market is China that has surpassed Germany which traditionally used to our home market and now the number three is US. In Africa we are expecting double digit growth plans in coming years”.
Nigeria has the big market size with large population. The country has much potential, he said.
With a focus on designing appliances that are “Invented for Life,” Bosch home appliances provide precision technology and European design that simplifies life in every kitchen, says Enrico Hoffmann, the MD of BSH South Africa.
“Our home appliances are renowned for their quality, reliability and performance. As you would expect from German engineering there are no gimmicks or frills with our products – just pure, clean lines and beautiful, functional simplicity that will enhance any kitchen”.
Enrico further believed that Nigeria will be the important place for turnover for Bosch under African continent. We never had environmental fears for investing in Nigeria but the most challenge is how to run the business properly and meet the expectation of the Nigerian consumer.
Explaining the partnership with Bosch, CEO of Pedini Nigeria Limited, Chiedu Nwokolo described Bosch as one of the strongest brand names in the continent in terms of durability and technology.
On his competition niche, he said the brand is competing as it has the right mixes which include product quality, price and then growing middle class who likes good products. He also said that Bosch would also leverage after sales service to deliver value to its customers. “After sales are one of the cornerstones through which Bosch will stand and we intend to service the needs of our customers with any challenge on his/her Bosch appliances within 24 hours. It is easy to sell a product but when it comes to after sales, some don’t manage it well but we are here to change that culture. We will do our best, even if we lose money, to ensure we satisfy our customers”, he said
Further explaining the decision to open the Bosch home appliances showroom this time when Nigeria, like other economies, is going through economic difficulties occasioned by drop in oil price which has affected the purchasing power of individuals, Nwokolo said “after the rain comes the sun. Even if the economy is in recession now, we will come out of it. If you are not ready, when we are out of the recession, then you will not catch up. We are confident in the Nigerian economy and on the size of the market. We are also confident not only on the quality but price of our product”
He said the firm has also structured better arrangement that will allow customers pay for products over 12 months. Nwokolo who described him as an ambitious investor said he hopes to open about 100 shops in the next three years to deliver quality Bosch products to Nigerians.
Daniel Obi