Brand names more in demand again

In 2006 the world market for power tools expanded by 3 per cent to reach an overall volume of approximately € 8 bn. Market researchers at Bosch ascertained growth of 4 per cent in volume terms for a total of 160 mio units. The size of the market in Europe rose by 5 per cent to € 3.3 bn last year. The greatest growth of 9 per cent was recorded in the markets of eastern Europe, and for the first time in five years the markets of western Europe displayed above-average growth of 4 per cent overall in 2006. Eric Lüscher, sales director Europe, Middle East and Africa for the power tools division of Bosch, identifies the strong demand for branded power tools in the professional sector as the basis for this growth. Furthermore, as Eric Lüscher confirms, “In 2006 there was a remarkably welcome development in the European market for power tools: for the first time in a number of years the market volume grew more strongly in value terms than in the number of tools sold. Which put a stop to the trend of falling prices. Buyers rewarded the quality and performance of the branded products more than previously, at the expense of the no-name or trading brands.”The European market has seen growth of 2 per cent in volume terms. The number of tools sold in the DIY market in particular was down, although the market remained constant in value terms at € 1.2 bn. This means that the average price of DIY power tools has risen once again, with market share shifting in favour of brand suppliers, according to the market research from Bosch.Sustained strong growth in eastern Europe and Scandinavia continued to make a positive contribution. However, the DIY market for power tools in the UK experienced a percentage decline in terms of both value and volume that almost reached double digits.High growth rates were achieved by professional power tools in the European market. This segment expanded by 8 per cent in both value and volume terms. It was not only the traditional growth regions of eastern Europe, Spain and Scandinavia that contributed to this expansion, but also the strength of sales in Germany, Benelux, France and the UK above all.As Eric Lüscher explains, “This development profited from the growth of GDP and the increase of construction activity in Europe.” As in the previous year, building activity in eastern Europe experienced above-average growth amounting to 11 per cent in terms of value. More buildings than expected went up in western Europe as well, which led to an…