The Bosch Power Tools Division
Bosch Power Tools
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 2016, its roughly 20,000 associates generated sales of 4.5 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. The division generated about one third of its sales in 2016 with products that have been on the market for less than two years. In 2017, 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.
Bosch Power Tools achieved record sales of 4.5 billion euros* in 2016. In local currency, that equates to a growth of seven percent; nominally, Power Tools has grown by four percent. “For us, 2016 was the most successful year in the company’s history,” said Henning von Boxberg, President of the Robert Bosch Power Tools GmbH. “We sold more than 50 million power tools and increased sales yet again. Our products are well received by do-it-your-selfers and tradespeople alike.” Power Tools is focusing on the specific needs of the user: More convenience for do-it-yourselfers, more productivity for tradespeople. Cordless tools, such as the Ixo, are still proving very successful. In addition, Power Tools introduced numerous connected power tools in 2016. Von Boxberg commented: “In future, we will continue to focus on innovations that offer added value to the user. We see opportunities for growth online and in emerging markets in particular.”
Growth in all regions
In 2016, Bosch Power Tools increased sales in all continents. In 33 countries, the company achieved a double-digit growth. The division was particularly successful in important Western European markets such as Germany, the Iberian Peninsula and the United Kingdom in 2016. In total, European sales grew by nine percent in local currency; Germany saw a 12 percent increase. In North America, Power Tools achieved a seven percent growth in revenue. Despite lower growth in Brazil and China, Power Tools also increased sales in emerging markets: In Latin America, the company experienced a five percent increase, while the Asia-Pacific region saw a growth of two percent. Business performance in India was positive, with a ten percent increase. On the African continent Bosch has grown, too.
Growth segment emerging markets
Bosch Power Tools sees great potential in emerging markets such as Africa. They are home to many first-time users of power tools. These tradespeople first need to be convinced that switching from a traditional hand tool to a power tool brings benefits. “A decisive factor for success in emerging markets is the availability of affordable products and on-site service,” said von Boxberg. Bosch Power Tools plans to introduce 20 new products to Africa in 2017 alone − a whole range of professional products that are affordable as well as durable and easy to maintain. “Our focus is always on the user. We are building up our own sales organizations in Africa and creating a tight network of service centers, in order to meet local needs.”
Success through innovations for the user
An important key to our success is the innovative strength of Bosch Power Tools. In 2016, the division once again generated around one third of its sales from products that had been on the market for less than two years. “This is the DNA of our success; recognizing the needs of our users,” said von Boxberg. In industrial markets, cordless tools continue to be in great demand. “For us, the cordless segment is an important growth segment which we are consistently developing – we are launching innovations which offer added value to the user.” These innovations include the FlexiClick cordless drill/driver system for professionals, now also available as a 12 volt version: With its bit holder with bit locking, drill chuck, off-set angle and angle adapters, it is the most versatile system on the market – and the shortest cordless drill/driver in its class. Many do-it-yourselfers are already familiar with interchangeable adapters from Bosch’s smallest cordless driver, the 3.6 volt Ixo. From autumn onwards, a high-performance 18-volt equivalent will be available, with impact drill mode and drill chuck, eccentric and angle screw adapters. All the systems mentioned here offer maximum flexibility to the user and make light work of hard-to-reach areas.
Cordless segment expansion for both do-it-yourselfers and professionals
Bosch Power Tools is consistently expanding the cordless segment – in both DIY and professional tools. In doing so, the division is focusing on flexibility: In the DIY range, all cordless tools in one volt class are compatible, as are those in the professional range. “If you buy a cordless tool from Bosch, you can use it immediately, without worrying about whether it fits,” said Henk Becker, Managing Director of Robert Bosch Power Tools GmbH with responsibility for development, production and quality, as well as measuring tools, professional and DIY tools. In the “Power for All” range for do-it-yourselfers, Bosch is now introducing a cordless angle grinder and a random orbit grinder. The professional range includes three new cordless angle grinders with power equal to that of a 1 000 watts mains-powered tool. This is thanks to a brushless motor and the new, high-performance EneRacer battery. “We are using a new cell technology, improved power connectors and a new manufacturing procedure − which means that higher currents can be drawn from the battery pack over a longer time. This results in increased power that can be used while also having the most compact battery size and the lowest weight compared to other high-performance batteries in the 18 volt class,” said Henk Becker.
In DIY tools, an optimum coordination of key components such as the motor and the gearbox, combined with an intelligent electronic system called the “Syneon Chip”, gives do-it-yourselfers the optimum power and maximum runtime for every project.
Intelligent and connected products, even higher ease-of-use
Occupational health and safety also drive innovation. Bosch sensors are used in impact drills and rotary hammers for both do-it-yourselfers and tradespeople to reduce the risk of injury caused by kickback. The new professional angle grinders are also equipped with this “KickBack Control”. Additional benefits include a new user interface, which enables the user to see and control the most important information and settings, and the connectivity function. By connecting the angle grinder to a smartphone, the user can customize tool settings and receive troubleshooting tips in the event of the motor, electronics or battery pack overheating, in addition to tool information. Bosch currently offers 14 professional tools that can be connected – from a worklight through to a remote-controlled combi laser. Henk Becker: “Our long-term goal is to connect all of Bosch’s professional power tools and thus to offer users an even higher level of convenience − and to increase their productivity.”
Do-it-yourselfers can also rely on connected products from Bosch, for example, the new Indego 400 Connect robotic lawnmower, or various laser measures. An inspection camera is due to be released in the DIY range shortly. This allows the user to easily inspect dark and difficult-to-see areas around the home, and document the results as an image.
Bosch Power Tools is one of the world’s leading providers for power tools, power tool accessories and measuring tools. It has a workforce of some 20,000 associates at 34 locations in 17 countries around the world.
*Due to special effects, the turnover in 2016 is only comparable to an extent with the turnover published in the previous year. The specified growth rates are based on comparable values.
Robert Bosch GmbH
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