Bosch, a leading global supplier of technology and services, closed its 2015 fiscal year with USD 50 million (45 million euros) in consolidated sales in the Philippines. Compared to the previous year, the company achieved a strong double-digit growth of over 35 percent, marking the second consecutive year in which the Philippines was one of the fastest-growing markets for Bosch in Southeast Asia. This momentum was driven by a strong performance across the company’s diverse portfolio of products offered in the country and particularly related to power tools, security systems, and the automotive aftermarket business. Furthermore, Bosch’s Drive and Control business division officially commenced operations in the Philippines in April 2015. Over the course of the year, Bosch increased its workforce in the Philippines by over 50 percent to around 460 associates.
“Along with our expansion efforts in the Philippines, I am confident that our strength in innovation will continue to drive our growth”, said Andrew Powell, managing director of Bosch in the Philippines. “It is a very exciting time to be in Southeast Asia right now, particularly with the Philippines contributing strongly to Bosch’s growth in the region.
Nationwide business hubs to increase proximity to customers
In 2015, Bosch began the construction of its third business hub outside of Metro Manila, the other two being in Cebu and Davao. Aimed to address the rapid development in the Mindanao region, the Cagayan de Oro business hub is scheduled to open in August 2016, and will provide showroom areas, training, sales, and after-sales support for Bosch products and solutions across every Bosch division that is present in the Philippines.
The new hub will be especially beneficial for Bosch’s Industrial Technology business sector, as it will unlock opportunities to offer solutions in industrial applications. Cagayan de Oro has been referred to as an emerging city owing to its fast growth, and offers tremendous potential in the manufacturing sector with the proliferation of factories locating in and around the area. The Drive and Control business division, specializing in hydraulic technology and factory automation under the Rexroth brand, will help improve the production efficiency of industries such as biofuel and sugar milling.
Bosch is exploring other provincial areas such as Iloilo and Baguio to establish additional business hubs and come closer to its customers.
Positive development across all business sectors
The steady progress of the Philippines’ property development market enabled Bosch´s Consumer Goods business sector to maintain its ninth consecutive year of double-digit growth in the country. To address the needs of the growing, price- conscious local professional builders, the Power Tools division launched the Contractor’s Choice, a new range of power tools which feature the performance and reliability of Bosch’s professional tools at an affordable cost. The division also successfully entered into a partnership with Lazada Philippines to provide customers an online retail source for Bosch power tools.
The Mobility Solutions business sector continued its momentum of growth, with the Automotive Aftermarket division etching a double-digit increase in sales compared to the year before. The division strengthened its distribution network across the Philippines, bringing more products and services closer to the market, particularly in Visayas and Mindanao. In addition, the number of Bosch Car Service and Diesel Centers increased from 40 workshops in 2014 to almost 70 over the course of 2015.
The Energy and Building Technology business sector experienced positive growth in 2015, with fire alarm systems being one of the fastest-growing product categories. Overall growth in this sector was also attributed to exclusive projects for key property developers across the Philippines, as well as notable project such as KidZania where Bosch video, public address, and background music systems were installed.
Bosch Group worldwide business outlook for 2016
Following a record year in 2015, the Bosch Group wants to continue its growth trend this year. The leading global supplier of technology and services expects worldwide sales to grow within an exchange rate-adjusted range of 3 to 5 percent in 2016. Speaking at the company’s annual press conference in Germany in
April, Bosch CEO Volkmar Denner said: “We plan to grow not only with innovative products, but also with innovative services.” In the connectivity business, Bosch focuses on the “3S’s”: sensors, software, and services. The company is increasingly using connected services to build on its broad basis in the hardware business. As it does so, Bosch benefits not just from its technological diversification, but also from its wide-ranging industry and domain expertise. The newly created Bosch Global Service Solutions division, the recently established Bosch IoT Cloud, as well as the Bosch Smart Home System launched at the start of 2016 contribute to this strategy.
In Asia Pacific, the Bosch Group boosted its sales in 2015 to a total of USD 21.3 billion (19.2 billion euros), thus registering a nominal growth of 17 percent on a comparable basis (2.8 percent after adju sting for exchange-rate effects). At 27 percent of total Bosch sales revenue, the region’s share of sales remained at the high level of the previous year.