Patchy development

The global power tool market attained a volume of € 7.3 bn in 2004. This corresponds to a decline of one per cent compared with 2003, but resulted in growth of three per cent at constant exchange rates. The volume of the European market increased by three per cent. In North America the market grew by one per cent, in Latin America by around 25 per cent and Asia achieved growth of five per cent, according to market researchers at Bosch.
The trend in Central Europe
In Central Europe the power tool market exhibited a recessive trend in terms of value in 2004. The decline in Germany was six per cent, in Switzerland five per cent and in Austria three per cent.
On the other hand, the European market as a whole grew by three per cent compared with the previous year. The growth is attributable to countries that have already shown increases in the last few years such as the UK, Spain and Greece. The market in Russia developed especially strongly and was up by 15 per cent.
In contrast to the trend in years past, the German market experienced a fall in volume for the first time in 2004. The drop of two per cent is seen by Bosch market research specialists as an indication of the fact that the market is saturated with cheap goods. Even rock-bottom promotional prices for cheap goods attracted fewer and fewer consumers into the large-format stores.
The average price of each power tool sold in large-format stores fell again and is now € 42, whereas the speciality trade succeeded in increasing the average price, which now stands at € 187. The large format store must now sell nearly five tools to achieve this sales value per power tool sold. Thus gaining one percentage point in volume has been sufficient for the speciality trade to add four per cent in value and gain a market share of 52 per cent.
Looking at the market trend in the large format distribution channel underlines the significance of brands for the quality of the sales, Bosch researchers believe. Brands achieved a 72 per cent share of sales in the large format stores with 40 per cent of the volume. This proves that trading success is closely linked to brand ranges.
DIY professionals go for branded products
Sales of power tools to trade consumers has continued to be influenced in Central Europe by the subdued construction business cycle. The influence of Germany on neighbouring countries is unmistakable here. Fewer employees in the trade means fewer users, and businesses are putting off replacement purchases, resulting…