Bosch continues robust growth in Cambodia: Sixth consecutive year of double-digit sales increase

June 15, 2017, 1 p.m.

 

 

Annual Press Conference 2017 in Phnom Penh

 

 

  • Construction and automotive industries key growth sectors for Bosch

  • Bosch Automotive Aftermarket achieved record-breaking triple-digit growth

  • Increasing brand awareness through multi-channel corporate brand campaign of how Bosch helps make a difference in Cambodia

  • Up-skilling of more than 100 trainers and trainers-to-be in 2016 through vocational training

 

Phnom Penh, Cambodia – Bosch, a leading global supplier of technology and services, registered strong sales growth in Cambodia for fiscal 2016. The company has been growing at a double-digit rate since establishing its presence in the country in 2010. “Cambodia continues to be an important growth market for Bosch in Southeast Asia, thanks to the steady economic growth of the country at around seven percent, particularly in the automotive and construction sectors,” said Andre de Jong, Managing Director of Bosch for Cambodia, Laos and Myanmar.   

 

Strong development across all business divisions

 

Bosch’s Automotive Aftermarket division was the main contributor to the company’s overall growth in Cambodia in 2016. It achieved a record-breaking triple-digit growth, boosted by the country’s growing automotive market. According to the Ministry of Public Works and Transportation, the number of registered vehicles in Cambodia reached 3.7 million in 2016 - a 16 percent increase year-on-year. “Cambodia’s automotive landscape is diversifying in terms of the number of makes and models of vehicles in the country. Bosch is supporting this trend by expanding our product range offered in the country,” said de Jong. “In parallel with the enhanced efforts of the Ministry of Public Works and Transportation to improve the safety of trucks, we are also expanding our portfolio to bring in a wider range of equipment and machinery spare parts (off-highway product segment).”

 

The Power Tools division maintained its momentum of positive growth, largely buoyed by the kingdom’s growing construction industry. By end 2016, total investment from approved construction projects in Cambodia had increased by over 140 percent compared to 2015. This amounted to USD 8.5 billion from more than 2,600 projects. “Bosch aims to contribute to the technological advancement of Cambodia’s construction industry. To support this booming sector, builders must have access to the right tools. In 2016, we therefore launched the “Heavy Duty” power tools series, a range of precise and long-lasting tools specifically tailored for heavy duty construction work,” said de Jong.

 

The flourishing construction industry also presented opportunities for the Security Systems division to offer safety and security solutions for property developments such as condominiums, offices, and hotels. The division registered a strong double-digit sales growth in 2016 compared to the previous year, with security cameras and access control systems as the main drivers.

 

The Drive and Control division performed well in 2016, too. The division currently offers solutions for the manufacturing, agriculture, mining, energy, and construction industries. Bosch has also broadened its product offerings in this area, to include frequency converters to help increase a building’s energy efficiency.   

 

Building a strong corporate brand in Cambodia

 

To support long-term growth in the country and to heighten awareness of the company’s business activities and local presence, Bosch launched its first Southeast Asia-wide corporate brand campaign last year with the slogan, “We help make a difference”. Brand-building activities carried out in Cambodia.

 

mainly focus on digital media including a microsite with a connected Facebook app that is linked to other touch points in print, television, and outdoor brand placement on billboards, buses and bus shelters. In 2017, Bosch is set to roll out the second phase of the campaign with details to be informed at a later date.    

 

Enhancing the quality of life for the local community

 

Bosch’s corporate philosophy of enhancing the quality of life extends beyond its business practices to social commitment in the countries where the company operates in. In Cambodia, Bosch has been actively providing vocational training to trainers and trainers-to-be from various vocational training entities since 2010. In 2016, Bosch provided training to more than 100 participants, and donated its products to vocational training centers. “Bosch has had a long heritage in supporting vocational training. It is our lifelong commitment and passion to help make a difference to the local community by imparting technical know-how and skill sets,” said de Jong.

 

Bosch Group: Global strategy and business outlook for 2017

 

For 2017, in light of a subdued economic outlook and geopolitical uncertainty, Bosch aims to achieve sales growth of between three and five percent. And despite still heavy upfront investments in safeguarding the company’s future, results are set to rise. “Business success today gives us the leeway to shape

tomorrow’s world,” said Dr Volkmar Denner, Chairman of the Bosch Board of Management. “As an innovation leader, we are shaping and driving

transformation,” Denner added. The focal points of this transformation are changes in the mobility sphere and IoT connectivity. By 2020, all Bosch’s new electronic products will feature connectivity. The key to this is artificial intelligence (AI). Over the next five years, Bosch will be investing 300 million euros in its own center for artificial intelligence.

 

In Asia Pacific, Bosch recorded a hefty 8.3 percent increase in sales in 2016 to 20.8 billion euros (exchange rate adjusted +12 percent). Bosch now generates 28 percent of its total sales revenue in Asia Pacific compared to 27 percent in the previous year.

 

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