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The Asia Region: Difference between revisions
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The Asian home appliance market offered huge growth potential. At the same time there was scarcely any other region that posed such manifold challenges for BSH and its products. | The Asian home appliance market offered huge growth potential. At the same time there was scarcely any other region that posed such manifold challenges for BSH<ref>BSH was founded in 1967 as Bosch-Siemens Hausgeräte GmbH - BSHG for short. In 1998, the name was changed to BSH Bosch und Siemens Hausgeräte GmbH, with the short form BSH. Since the sale of the Siemens shares in BSH to Robert Bosch GmbH the company’s name is now BSH Hausgeräte GmbH, but still BSH for short.</ref> and its products. | ||
While efficient, space-saving appliances were in demand in urbanized parts of Asia, machines in less developed areas had to cope especially with power failures or highly fluctuating water pressure, while electrical connections and electronics varied in practically every region. Apart from technical aspects, there were also cultural aspects that had to be taken into account. In India, for example, "hand wash" does not mean gentle cleaning, but rather the thorough kneading and rubbing of heavily soiled clothes.<ref>BSH Corporate Archives, A01-0029, Business Report 2011, page 14.</ref> While 50 percent of all home appliances on the Chinese market would soon be purchased online, it was still good salespeople in India who influenced the decision to buy significantly.<ref>BSH Corporate Archives, A01-0033, Business Report 2014, page 24.</ref> | While efficient, space-saving appliances were in demand in urbanized parts of Asia, machines in less developed areas had to cope especially with power failures or highly fluctuating water pressure, while electrical connections and electronics varied in practically every region. Apart from technical aspects, there were also cultural aspects that had to be taken into account. In India, for example, "hand wash" does not mean gentle cleaning, but rather the thorough kneading and rubbing of heavily soiled clothes.<ref>BSH Corporate Archives, A01-0029, Business Report 2011, page 14.</ref> While 50 percent of all home appliances on the Chinese market would soon be purchased online, it was still good salespeople in India who influenced the decision to buy significantly.<ref>BSH Corporate Archives, A01-0033, Business Report 2014, page 24.</ref> | ||
==== China ==== | ==== China ==== | ||
[[File:Mitarbeiter Technisch Bügeleisen Nanjing China 2006 BSH media pool+.jpg|thumb|400x400px|Quality check in BSH's Nanjing site, China in 2006. (Source: Press fotos BSH Hausgeräte GmbH)]] | |||
When the Appliance Park was inaugurated in Nanjing, China, on March 8, 2006, the then Executive Vice President of BSH, Dr. Robert Kugler, described China as the "… key to the global development of BSH, and (…) a stable and highly promising market."<ref>BSH Corporate Archives, B03-0091, Address by Dr. Robert Kugler Executive Vice President, BSH Bosch and Siemens Hausgeräte GmbH. On the occasion of the inauguration of the Nanjing factory site. Appliance Park, Nanjing, China, March 7, 2006, page 4: "''... key to the global development of BSH, and (...) a stable and highly promising market.''"</ref> | When the Appliance Park was inaugurated in Nanjing, China, on March 8, 2006, the then Executive Vice President of BSH, Dr. Robert Kugler, described China as the "… key to the global development of BSH, and (…) a stable and highly promising market."<ref>BSH Corporate Archives, B03-0091, Address by Dr. Robert Kugler Executive Vice President, BSH Bosch and Siemens Hausgeräte GmbH. On the occasion of the inauguration of the Nanjing factory site. Appliance Park, Nanjing, China, March 7, 2006, page 4: "''... key to the global development of BSH, and (...) a stable and highly promising market.''"</ref> | ||
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Because the Chinese market was so strictly regulated for foreign companies, BSH decided to make its initial foray in China in the form of a joint venture. Following eleven months of negotiations, BSH and the Chinese Little Swan Co. Ltd inked a joint venture agreement on November 11, 1994 for the manufacture of washing machines in Wuxi, China. In addition to the production plant, a sales service and logistics center was also established. Wuxi Little Swan was one of the leading manufacturers on the Chinese market at this time.<ref>BSH Corporate Archives, A01-0013, Business Report 1995, page 8 and BSH Corporate Archives, A05-0017, inform 04/1994, Jg. 17, page 1.</ref> The joint venture was called BSW Household Appliances Ltd.<ref>BSH Corporate Archives, A05-0018, inform 01/1995 Jg. 18, page 27.</ref> Production was expanded at the end of 1995 to include cookers, cooktops and extractor hoods. Just one year later, BSH succeeded in extending its position on the Chinese market by entering a further joint venture and thus expanded its product portfolio in China to include cooling appliances. BSY Cooling Appl. Ltd. was founded in Chuzhou together with the Yangzi Group. The Siemens cooling appliances had captured a market share of ten percent by the time the year was out, thus also outstripping the local Chinese Yangzi brand. | Because the Chinese market was so strictly regulated for foreign companies, BSH decided to make its initial foray in China in the form of a joint venture. Following eleven months of negotiations, BSH and the Chinese Little Swan Co. Ltd inked a joint venture agreement on November 11, 1994 for the manufacture of washing machines in Wuxi, China. In addition to the production plant, a sales service and logistics center was also established. Wuxi Little Swan was one of the leading manufacturers on the Chinese market at this time.<ref>BSH Corporate Archives, A01-0013, Business Report 1995, page 8 and BSH Corporate Archives, A05-0017, inform 04/1994, Jg. 17, page 1.</ref> The joint venture was called BSW Household Appliances Ltd.<ref>BSH Corporate Archives, A05-0018, inform 01/1995 Jg. 18, page 27.</ref> Production was expanded at the end of 1995 to include cookers, cooktops and extractor hoods. Just one year later, BSH succeeded in extending its position on the Chinese market by entering a further joint venture and thus expanded its product portfolio in China to include cooling appliances. BSY Cooling Appl. Ltd. was founded in Chuzhou together with the Yangzi Group. The Siemens cooling appliances had captured a market share of ten percent by the time the year was out, thus also outstripping the local Chinese Yangzi brand. | ||
[[File:BSH-Taiwan 2012 ribbon cutting Vertriebsgesellschaft BSH media pool.jpg|thumb|400x400px|Ribbon cutting at the grand opening of BSH branch in Taipeh, Taiwan in 2012. (Source: Press fotos BSH Hausgeräte GmbH)]] | |||
A sales company was opened in Nanjing in 1997, which marketed the products of both production plants nationwide. BSH acquired the shares of its Chinese partner in the refrigerator plant in Chuzhou in 2000 and then a few years later acquired full ownership rights to the washing machine factory. A major Appliance Park was established in Nanjing in 2004, which developed into a production location for five sectors.<ref>BSH Corporate Archives, A05-0022, inform 03/1999, Jg. 22, pages 8-9 and BSH Corporate Archives, A05-0023, inform 04/2000, Jg. 23, page 16.</ref> | A sales company was opened in Nanjing in 1997, which marketed the products of both production plants nationwide. BSH acquired the shares of its Chinese partner in the refrigerator plant in Chuzhou in 2000 and then a few years later acquired full ownership rights to the washing machine factory. A major Appliance Park was established in Nanjing in 2004, which developed into a production location for five sectors.<ref>BSH Corporate Archives, A05-0022, inform 03/1999, Jg. 22, pages 8-9 and BSH Corporate Archives, A05-0023, inform 04/2000, Jg. 23, page 16.</ref> | ||
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==== Asia and Oceania ==== | ==== Asia and Oceania ==== | ||
Following its successful entry to the Chinese market in 1994, BSH began to further expand its market presence in the Asia region. Locations were established in Hong Kong and Singapore in 1995 and 1996 as ''regional headquarters'' for Asia and the Pacific as a whole<ref>BSH Corporate Archives, B03-0091, Press Release Singapore, December 2, 2006 and BSH Corporate Archives, A05-0018, inform 03/1995, Jg. 18, page 6.</ref> and acted as a basis for establishing further locations in | Following its successful entry to the Chinese market in 1994, BSH began to further expand its market presence in the Asia region. Locations were established in Hong Kong and Singapore in 1995 and 1996 as ''regional headquarters'' for Asia and the Pacific as a whole<ref>BSH Corporate Archives, B03-0091, Press Release Singapore, December 2, 2006 and BSH Corporate Archives, A05-0018, inform 03/1995, Jg. 18, page 6.</ref> and acted as a basis for establishing further locations in Indonesia, Malaysia, New Zealand, Taiwan, Thailand and also in [[The Australia/Oceania Region|the Australia/Oceania region]]. Most of the locations in Asia had been successfully established by 2006. BSH's presence in Asia was also further expanded in the years that followed. At celebrations to mark the 10th anniversary of the Asian headquarters in Singapore, a doubling of revenue growth in the Asian region, excluding China and India, was set out as a corporate goal.<ref>BSH Corporate Archives, B03-0091, Press and Public Relations (external), press clipping, 2006.</ref> | ||
[[File:MCIM01943091 BSH-Technology-Center-India-Inauguration.jpg|thumb|400x400px|Inauguration of the BSH technology center on 21. November 2016 in Adugodi, India. (Source: Press fotos BSH Hausgeräte GmbH)]] | |||
==== India ==== | ==== India ==== | ||