Appliances giant BSH heralds new era of globalisation for GCC

Gulf countries have for decades been home to a large number of suppliers, ranging from low budget to the highest quality products, but things are changing with the larger companies beginning to squeeze out competition.

Smaller brands are beginning to struggle and fall out of the market as the larger companies, such as Bosch, LG, Siemens and Whirlpool continue to grow at an increasing rate.

Bosch Siemens Hausgerate's managing director, Heiko Fischer, explained he expects only a few globally operating brands to survive in the region within the next five to ten years.

"This is an extremely growth oriented time for the larger domestic appliances manufacturers in the GCC and unfortunately the smaller brands are suffering as a result. For example, BSH Middle East alone has quadrupled turnover in the last five years to a (market selling) turnover of over (US) $150million in 2006.

"The high disposable incomes currently being enjoyed throughout the Gulf means people are willing to pay more for well known, high end brands, which are quite rightly synonymous with reliability, high performance and environmental friendliness. The extraordinary investment in luxury real estate developments further accelerates the trend."

And the trend towards globalisation within the industry is good news for consumers according to Fischer.

"With increasing populations and demand, consumers are also benefiting, as economies of scale enjoyed by these larger brands are making premium appliances more affordable, with no detrimental effect upon quality, innovation or selection."

With sales in 2006 of over US$11 billion and a workforce totalling around 38,000, BSH Group is among the top three home appliance companies in the world measured by turnover and employees. Comprising more than 40 companies in over 100 countries, BSH has 45 factories worldwide.

Being present by exclusive agents for more than 25 years, the company started to invest directly in the region ten years ago and has since gone from strength to strength, winning consumer satisfaction awards for superior product quality, product performance, and unrivalled ease of use.