Review 2005 - preview 2006: stable growth expected
[12-16-2005] After office furniture manufacturer Wilkhahn from Lower Saxony in Germany had already posted excellent growth last year, it looks as if the company is in for increasing sales in 2005 too. Management also expects further growth in 2006 on the basis of a high number of incoming orders in the last few months and positive project prognoses for the coming year.
Bad Münder. It is however not yet plain sailing at Wilkhahn. But at least there are satisfied faces around. On a global level, the company is regarded as a specialist for high-quality furniture solutions for conference and lounge interiors, and office chairs. "We had hoped for a little more for 2005 but in view of the restrained market development, particularly in Germany, we can be satisfied bottom line." explains Holger Jahnke who is responsible for global sales. In total, Wilkhahn will close with total sales of approximately EUR 66 million (consolidated turnover) in 2005, which would correspond to a growth rate of five percent compared to last year. International business now accounts for almost two-thirds of total sales volume and is on the increase. As long as the domestic market only continues to recover at a sluggish rate after the slump in the industry three years ago, while international markets continue to grow strongly, this pattern will become even more marked.
Top of the league: Neos, the new Wilkhahn office chair (design: wiege)
Even greater internationalization
In line with the development in the industry in general, Wilkhahn will post a slight growth rate of approximately three percent in Germany compared to last year. On an international scale, some Wilkhahn markets will even contribute double-digit results to group results. Above average growth rates in 2005 were reached in particular in Spain, Eastern Europe, the Middle East, Japan and Wilkhahn Asia-Pacific.
There is a clear upward trend in Switzerland, the Netherlands, Belgium and Scandinavia too, while the positive mood in Great Britain has been damped on account of the terror attacks in July, and both Austria and France are developing at a much slower pace. Jahnke explains the differing trends in foreign markets as follows: "In addition to overall economic developments in individual markets, projects and company-specific aspects always play a key role too."
New products - new markets
Managing director Jochen Hahne feels that the product strategy has also been confirmed by the development in 2005. "We have strengthened our position in the high-quality segment even more, which is slightly less sensitive to cyclical and price fluctuations", Hahne remarks. For example, Neos, the new office chair, is one of the best in its category in terms of quality, workmanship and functionality, as is Aline, the new multi-purpose chair. The latter has met with highly positive response and sold very well right from the very start. Hahne is delighted that "both products are excellent examples of how we gain market segments successfully in which we had not worked before or had stopped working, and how we score well there with typical Wilkhahn quality". We have also moved up into high gear in marketing as well. "With many new product brochures which we have published this year, we have also spruced up our longsellers in terms of communication. In addition, we have brought out a References Book on our conference furnishing projects which serves to underline our goal and focus of becoming global leader in the high-quality bracket". Branding is playing an increasingly important role, especially in international markets. Hahne explains the brand strategy: "The claim of design made in Germany helps us in Asia in particular to transport the qualities of Wilkhahn design in a precise manner."
Successful in the new market due to innovation: Aline, the stackable, multi-purpose chair (design: Andreas Störiko)
Growth prospects for 2006
As new products and marketing instruments will only become fully effective in the coming year, Wilkhahn expects a marked growth in sales for 2006; at around ten per cent compared to last year, this is quite an ambitious goal. Yet Hahne also points to further indicators to underscore his optimism. The last few months in particular have witnessed a strong rise in incoming orders in Germany; more and more people are coming to realize that saving at any price turns out to be much more expensive in the long run than investing in quality and lasting utility value. Most importantly, Wilkhahn has the ability to produce growth under its own steam: "We are boosting investment in product development and working the market. Next year we will be participating in six to eight key international trade fairs. We will stage a series of international events and lectures, and will be exhibiting at Orgatec, the leading fair within our industry." Providing there are no global economic catastrophes, reaching this growth target should therefore not be problem that cannot be solved. Hahne smiles when he adds: "Nobody should really be astonished at our claim and goal of being much better than the average in our industry, not only in terms of product quality and means of communication. In spite of that, many in the industry may stare at Wilkhahn in surprise."
For further details and images, please contact:
Wilkhahn
Wilkening + Hahne GmbH+Co
Press + Public Relations
Fritz-Hahne-Straße 8
31848 Bad Münder
Germany
Phone: ++49 (5042) 999-169
Fax: ++49 (5042) 999-450
burkhard.remmers@wilkhahn.de
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