Since 2010, the largest cooperative partnership in the European retail sector for consumer electronics has been run by President Hans Carpels (left) and Managing Director Klaus Lahrmann.
Europe's largest buying group achieves sales volume of EUR 15.1 billion in 2010 / Expansion of brand presence at the core of the group's strategy / New sales concept strengthens value added strategy / New group member Foxtrot Home Appliances writes success story
Berlin, 2nd September 2011. EURONICS International, Europe's largest buying group in the CE market, achieved a sales volume of EUR 15.1 billion in the 2010 financial year. With an increase of more than 7 percent compared with 2009, the international purchasing and marketing cooperative is back on the path to growth. "The European market for consumer electronics has noticeably recovered in the past two years. Even so, we are still seeing considerable differences in individual markets," said Klaus Lahrmann, Managing Director of EURONICS International, at the press conference held on the occasion of IFA (Internationale Funkausstellung) in Berlin. EURONICS International experienced positive market developments in the previous financial year, especially in Germany, Russia and the Ukraine. In contrast, the group had to accept substantial losses in Spain, Poland and Croatia. EURONICS International is represented in 29 European countries at approximately 11,000 locations and thus reaches over 600 million consumers.
"The European market for consumer electronics and home appliances continues to be characterised by intense competition, with high pressure on prices and margins. From an industry and retailer perspective, the current precarious position in the global financial markets is also contributing to the intensification of competition," Lahrmann stated. He is certain that "with a comprehensive brand campaign and new sales concepts on a European level, we are now providing the answer to the challenges of the market. The future of the EURONICS retail trade lies in a strong brand with successful, high quality marketing on a Europe-wide scale.. We are adhering to our goal of achieving sales of EUR 20 billion by 2015."
Successful integration of Foxtrot Home Appliances
Thanks to the affiliation with our Ukrainian partner Foxtrot Home Appliances in September 2010, EURONICS International achieved an important milestone in its strategy for Eastern Europe. "The membership of Foxtrot is an important signal for our Eastern European members," stated Hans Carpels, President of EURONICS International, at IFA. As the leading retailer, Foxtrot currently represents a market share of 21 percent in Ukraine and 33 percent in Moldova, with 243 locations in total. According to Carpels: "the membership of Foxtrot will produce numerous 'best practice' examples for other Eastern European countries that have similar local market structures and similar trends in consumer behaviour."
Focusing on added-value strategy
The group believes that another requirement for continued growth in the European market is the rigorous expansion of its added-value strategy. "With a new (selective) sales concept and flexible marketing opportunities for high-quality CE products, which take into account the different market requirements, we will strengthen the position of our members in a sustainable manner over the next few months," explained Lahrmann in Berlin. EURONICS members of every size can therefore offer their customers clear added value. "The complexity of the products is growing, driven by digitalisation, innovation and convergence. The EURONICS retail trade must prove its high-quality advisory skills – in the future, a successful and sustained approach to consumers will result from skilled dovetailing of the topics of products, consumer advice and service. We are creating the prerequisites for this across Europe."
EURONICS showcased in hall 23A
EURONICS International is represented at the trade show with an attractive stand display in hall 23A and is thus underlining once again the importance of IFA as a key industry gathering in Europe. Members and trade visitors will find the IFA product highlights, current connectivity solutions for the latest CE products and an exclusive presentation by selected suppliers at the stand, amongst other attractions. For EURONICS members, the stand acts as a central point of calm away from the hectic daily routine of the trade show where they can enjoy EURONICS' all-round service. In order to appeal to the numerous retailers and end consumers alike in the best possible way, the cooperative partnership is once again positioned right in the middle of the public area. Visitors will be given exclusive product presentations in cooperation with Intel and Whirlpool. They will also receive valuable tips for the imminent analogue deactivation as part of the 'We digitalise Germany' campaign from the consumer advice stand. In addition, various activities will be offered at the stand, such as the interactive dealer search, attractive competitions and much more.