Bosch Power Tools Company
The Bosch Power Tools Division
Bosch Power Tools: Successful with innovations and acquisitions
The Robert Bosch Power Tools GmbH, a division of the Bosch Group, is one of the world’s leading providers for power tools, power tool accessories and measuring tools. In 2018, its roughly 20,000 associates generated sales of 4.6 billion euros, about 85 percent of which outside of Germany. With brands such as Bosch and Dremel, the division stands for customer focus and great engineering progress. The core success factors are innovative strength and pace of innovation. In 2019, Bosch Power Tools will again launch more than 100 new products onto the German market in its four business segments power tools, accessories, measuring tools and garden tools.
A new dimension of performance for tradespeople, a world’s first for DIY enthusiasts: With Biturbo tools for professionals and the YouSeries for design-conscious users with highest needs Bosch is launching completely new cordless power tools. “Bosch Power Tools stands for innovation,” said Henk Becker, President of the Robert Bosch Power Tools GmbH. “We are shaping the technical development of the industry. It is our claim to have the smallest and most powerful batteries on the market, to replace corded tools by cordless tools in the long-term. Our new Biturbo tools for trades- people are advancing into a new dimension of performance. For the first time, cordless tools are better than corded tools.” The new power tools from Bosch for professionals are optimized with ProCore18V batteries for maximum performance. This makes them more powerful than all previous cordless tools from Bosch. This is based on the optimum coordination of their brushless motor with electronics and battery so that the high-performance batteries can be used to their full potential. In addition, Biturbo tools boast further advantages such as a light weight and an interactive display: Professionals can therefore adjust the tools according their needs.
With the new YouSeries Bosch launches power in a new format and revolutionizes the DIY world: These stylish cordless tools are defined by the slogan “small, compact, different”. Also without prior knowledge the tools’ operation is intuitive. The YouSeries consistently follows the trend towards miniaturization appealing not only conventional DIY enthusiasts. “Our YouSeries does not represent the typical power tool. These products adapt to the individual needs of design-conscious users,” explained Henk Becker. “With an initial line-up of three small everyday helpers, we are showing how Bosch creates technology invented for life with innovation.” The drill/driver, multi-sander and dry vacuum cleaner are up to 50 percent smaller, at least a third lighter and similar powerful as their siblings from the 12 volt product family. The YouSeries is surprisingly powerful, remarkably compact – and simply looks great.
Innovations drive business
“Innovations such as Biturbo and the YouSeries will also be the drivers of our business in the future,” said Henk Becker. The Bosch division achieved sales of 4.6 billion euros in the fiscal year 2018. Power Tools grew by two percent last year after adjusting for currency effects; in nominal terms, this equates to a reduction of two percent. Currency effects totaling around 200 million euros had a significant negative impact on sales figures. Henk Becker: “The economic situation is getting harsher. We are feeling the impact due to counteractive exchange rates and increasing volatility of the markets. However, we could improve our profitability last year – and we strive for further increase. Only this way we can invest in innovations also in future. This is how we ensure our success in the long-term.” This enables Bosch Power Tools to continue making upfront investments, fulfilling the future needs of users – for example with innovations such as Biturbo and YouSeries. Bosch will launch more than 100 new products in 2019, in Germany alone. In addition to innovative products and services, Bosch Power Tools also invests in the future workplace: For around 35 million euros a new office building was built at the Leinfelden location. “With the new office building we support the agile transformation at Bosch Power Tools in the best possible way. We created a working environment, enabling our cross-functional teams to work flexibly using agile methods,” said Henk Becker.
Expansion of the cordless segment for DIY enthusiasts
Bosch Power Tools is consistently expanding its cordless segment for both DIY enthusiasts and professionals. The focus is and will remain on battery systems with 18 volt. Bosch guarantees compatibility with all existing and future power tools within the same voltage class – both in systems for professionals and systems for DIY enthusiasts. This enables users to do without batteries and chargers that they do not need – saving money at the same time. New in the “Power for All” range for DIY enthusiasts is, for example, the AdvancedRecip 18 reciprocating saw. It offers DIY enthusiasts 40 percent less vibration than the previous model – and as much as 60 percent less than comparable competitor models.
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 deliver-ies of online orders to consumers were made possible at very short notice, de-spite 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 company’s 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 per-cent 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 profes-sional users, who are essentially concerned with efficient and effective work on the construction site. The presentation of the prestigious 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 user’s needs and to offer them added value,” says Henk Becker.
Optimistic forecast for 2021: Growth based on sustainability
Against the backdrop of the general economic recovery, Bosch Power Tools al-so expects a positive development for the current fiscal year. The objective is still to outperform the market in the most important industries and regions. In addition to the already existing focus topics such as the expansion of the cord-less platforms and digital services, the company will devote itself intensively to the topic of sustainability in 2021. “We are systematically working to improve the sustainability of our value chain. A special team was created for this pur-pose. It will continuously examine and implement suitable measures worldwide, for example regarding recycling of packaging and power tools.” The introduction of tool cases made of recycled plastic in the DIY segment has already led to savings of 3,000 tons of CO2 since 2019. “The main objectives are to reduce the CO2 footprint of our products in the long term and to promote a circular economy,” says Becker.
The first product made of recycled plastic from the measuring segment will be launched as early as this fall. Bosch Power Tools is thus contributing to the sus-tainability of the business activities of the Bosch Group, which was one of the world’s first technology companies to attain CO2 neutrality of its plants in 2020.