Bernd Müller, Central European Sales Director of the Power Tools Division of Robert Bosch GmbH" />

Power Tools

Bosch Power Tools: Continuing success Bernd Müller, Central European Sales Director of the Power Tools Division of Robert Bosch GmbH

  • on the occasion of the press conference in Leinfelden on March 15, 2012
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  • March 15, 2012
  • Power Tools
  • Presentations

press release

Ladies and Gentlemen,

The German market for portable electric power tools grew by nearly four percent in value in 2011. At the same time as this increase in value, the number of units sold declined by two percent. The trend towards high-quality brandname products continued.

Bosch gains market shares in Germany
Bosch’s performance exceeded market growth. In Germany, sales with portable electric power tools from the Bosch and Skil brands increased by six percent. This means that Bosch was able to gain an additional percentage point of market share – at the expense of no-names and private label brands. At 38 per­cent, the market share is now significantly higher than that of the three strongest competitors, who have a combined share of 33 percent.

Cordless tools market enjoys above-average growth
The drivers of the growth in market value were once again cordless power tools. While the overall German market for corded tools declined by one percent, the market for cordless tools increased by ten percent. Bosch managed to further strengthen its market leadership in the cordless segment and now has a market share of 36 percent.

Increasing demand for measuring tools is also boosting our business. The market for measuring tools grew by two percent. Bosch also managed to strengthen its leading position in this segment by one percentage point to 57 percent of the market share in 2011.

So-called minitools, which are extra-small and handy power tools, are also becoming increasingly popular. The overall German market in this sector grew in 2011 by 15 percent. Bosch has covered this segment with the Dremel brand and was able to increase market share here by five percentage points to a total of 52 percent. In homecenters it was even 64 percent.

Growth with professional power tools
The sale of professional power tools is very much influenced by the market development of the building trade. This industry had an especially good year in Germany in 2011, achieving growth of about eight percent. This increase can be mainly attributed to the lively activity in housing construction. Private housing construction especially is booming because interest rates are low and many people are investing their money in property for fear of rising prices. The specialist retail market for professional power tools grew more than five percent in value and two percent in volume.

Bosch benefited disproportionately from this development: sales with specialist retail outlets increased for portable electric power tools from the Bosch brand by more than ten percent. Market share grew by one percentage point to 24 percent.

Lithium-ion technology on the increase
Professionals are increasingly using the advantages of cordless tools. Their share of market volume has grown on average by five percent every two years since 2007 and now amounts to 45 percent. Lithium-ion technology is increasingly displacing nickel cadmium or nickel metal hydride based batteries. The market share of lithium-ion batteries has risen from 26 percent in 2007 to 85 percent in 2011. Bosch has been instrumental in driving forward this development and outperformed the market in 2011: our share of lithium-ion cordless tools was 90 percent.

The market success in recent years has been based on several factors. With its product offensive in the cordless segment, Bosch has launched a total of more than 50 new tools onto the market since 2009, and these tools have enjoyed great popu­larity among professionals. Depending on the application, the professional can choose a suitable tool from four cordless systems with 10.8 volts, 14.4 volts, 18 volts and 36 volts. The offering ranges from very compact tools through to cordless tools with the same power as a corded tool.

More than 500,000 L-Boxxes sold in Germany
The Bosch mobility concept, which includes the L-Boxx, has also been well received by professional tradespeople. In 2011, we exceeded the mark of 500,000 L-Boxxes sold in Germany. The reasons for the high level of acceptance are the great flexibility that the boxes offer for transport in the car and on the jobsite and also the intelligent marketing concepts such as “Clic & Go”, which enables professionals who buy an initial tool with two batteries and a charger to combine it with other tools in the same voltage class, for example with saber saws, multifunction tool, angle grinder or rotary hammer. All of the tools are supplied in the L-Boxx. What makes the L-Boxxes special is their click system that enables them to be connected to each other and transported in one move. This concept has boosted sales of the L-Boxx.

750 retailers in Germany are “Bosch Cordless Specialists”
More than 750 retailers in Germany have joined the “Bosch Cordless Specialist” sales concept, which offers advantages to both specialist retailers and professional tradespeople. The retailers benefit from the marketing support for the salesroom, while their customers benefit from the free “24-month ProService” ? a two-year repair service which goes well beyond the usual manufacturer's guarantee and covers the tool, battery pack and charger. The growth in sales achieved by specialist retailers with this concept shows just how precisely it meets the requirements of customers: Bosch Cordless Specialists were able to increase their sales with Bosch cordless tools by 34 percent in the period from January to December 2011, while the market for cordless tools only grew by eight percent in the same period of time.

Further gains in market share with measuring tools
We have also further strengthened our market leadership in the measuring tools segment through innovations. In 2011, we managed to gain one percentage point and increase our market share to 49 percent. This is thanks not least to our closeness to the customer: a nationwide roadshow in Germany with over 300 events, called the innovation tour, enabled more than 25,000 professionals to experience the advantages of Bosch measuring tools in practical tests.

Increasing demand for new media
We are also intensively responding to the trend that shows professionals increasingly making use of new media. With our electronic newsletters, for example, we are maintaining intensive direct contact to about 90,000 Bosch users. Increa­sing numbers of members are being registered by both our Bosch Facebook Community, which has a large proportion of people aged 20 to 40, and our “Bob” Bosch Professional Community. 16,000 registered members already use “Bob” to discuss specific everyday work problems with expert colleagues, pose their questions directly to the Bosch team of experts and give suggestions themselves. We are supporting the professio­nal's mobility with the new Bosch Smartphone App: it enables him to get information about our products and services, search for his local dealers or make contact with the Bosch hotline anytime and anywhere.

Bosch’s success in slightly declining market for DIY tools
The German market for DIY products declined slightly in 2011. It lost about two percent in value, while the number of power tools sold declined by about six percent. Bosch managed to disconnect itself from this development and even grow by three percent in value. Bosch therefore further strengthened its market leadership with the Bosch and Skil brands by two percentage points to 53 percent.

The trend towards brandname products continued in German homecenters. Although the number of brandname power tools that were sold actually declined by three percent in 2011, private label brands and no-names lost eleven percent. This once again demonstrates people's great willingness to buy innovative quality products: 19 of the 20 best-selling power tools in German homecenters are from Bosch.

Trend towards tools with lithium-ion battery
Do-it-yourselfers increasingly prefer tools with a lithium-ion battery. This segment's share of overall sales with cordless tools increased in 2011 by five to 72 percent. Bosch's market share here is 61 percent. Bosch was able to increase its market share in the important cordless drill/driver product segment from 45 to 52 percent in 2011 due to the launch of a new model series. The high level of customer satisfaction with these Bosch products is shown by many positive ratings from users on the internet.

Ixo campaign causes a sensation
We started a broadly based campaign to support sales of the Ixo under the slogan “Little Big Moments”. With TV and print advertising we achieved more than 60 million contacts in the target group. In addition to this, there were 350,000 contacts via the “Social Media” channels Facebook, Twitter and Youtube. The Ixo website attracted more than 500,000 interested visitors.

The Ixo was the best-selling power tool in Germany in 2011 and sold more than ever before: over 300,000 units. That is nearly twelve percent more than in the previous year. Due to the Ixo, Bosch's market share in cordless screwdrivers for do-it-yourselfers is also constantly growing. It is now 69 percent.

Electronic measuring tools are popular
Do-it-yourselfers are working more and more with electronic measuring tools. This submarket has dynamic growth and increased in 2011 by six percent in value and five percent in volume. Measuring tools from Bosch are succeeding in the market: Bosch is the market leader in all three categories, namely measuring, detecting and leveling. Nine of the ten best-selling measuring tools in German homecenters in 2011 were from Bosch.

The Quigo line laser launched by Bosch in October 2010 is in fifth place on this ranking. We communicated its impressive advantages, especially its easy operation, with over 150 Quigo events in German homecenters in 2011. The motto of these events was “Giant Quigo on Tour”. The strategy of a direct, on-location customer approach has once again proved successful.

Bosch XXL-Shop: Shopping experience in an area of over 80 square meters
Bosch has for many years put its faith in the Bosch Shop-in-Shop concept in German homecenters, and has as a result proved that the combination of high-quality product presen­tation and expert advice can lead to significant increases in sales at retail outlets. Now there is also an XXL version of this concept in an area spanning over 80 square meters. Home­centers with an XXL-Shop achieved leaps in sales of 50 percent and more year-on-year.

We want to amaze users again in 2012 with our new products and use sales and marketing activities in all channels to make the buying decision easy for them. We will do our utmost to accomplish this goal and further strengthen our position as market and technology leader.

RF00150 - March 15, 2012

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