BSH Continues Double-Digit Growth in Emerging Markets Region
Forex - The Emerging Markets Region (REM), one of the four main management areas of BSH, Europe's leading home appliance manufacturer, maintains its pioneering position with its strategic importance and operational success. Since overseeing the region from Turkey in April 2020, it has also made notable achievements in 2024. The performance of the region in 2024 and its future goals were shared by Gökhan Sığın, CEO of BSH Emerging Markets, and Sedef Ataman, CFO of BSH Emerging Markets and Vice Chairman of the Board of BSH Home Appliances.
In his assessment, Gökhan Sığın stated, “We are closing a strong year in the Emerging Markets Region, which is the largest geography BSH touches with its 38 factories and over 60,000 employees worldwide. In our region, which encompasses 130 countries and a large population of 4.6 billion, we are delighted to continue growing in 2024. With 13 subsidiaries, 9 factories, a robust global brand portfolio, and innovative products and services, the Emerging Markets Region will maintain its growth potential in 2025.” Sığın indicated that investments in the region will continue, especially in Turkey.
A new factory in Egypt is set to open in early 2025.
The Emerging Markets Region, home to a quarter of the world's 600 largest cities, also witnessed significant developments in 2024. A new factory under construction in Egypt is expected to open its doors in the first months of 2025. This factory, which will produce 80,000 ovens annually, is also making strides in sustainable production technologies, such as hydrogen fluoride (HF) filters. Gökhan Sığın noted that growth momentum continues in Saudi Arabia, Southeast Asia, and South Africa, as well as a new era in dishwashing in India. Highlighting the development of the dishwasher category in a country where handwashing is prevalent, Sığın stated, “With our next-generation products, we provide savings in water and energy compared to handwashing, while also offering a more hygienic washing experience in a shorter time.” He emphasized that these developments further strengthen the region, stating, “The driving force behind our success in the Emerging Markets Region, we must proudly express, has been Turkey. As the largest production facility of the group is located in Turkey, we export to 150 countries from here. With over 8,000 employees and nearly 400 R&D staff, along with Turkey’s first certified R&D center, we are positioned as the heart of the Emerging Markets Region.”
Over 500 million euros investment planned for Turkey in the next 5 years.
BSH Turkey, with over 8,000 employees, connects consumers with champion products in technology and sustainability under the Bosch, Siemens, Gaggenau, and Profilo brands. The Çerkezköy facility, which houses 5 factories, an R&D center, and logistics areas, is one of BSH’s largest production sites. With a manufacturing capacity of approximately 7 million, exports are made from this facility to 150 countries worldwide. Emphasizing the unique position of Çerkezköy, Sığın said, “BSH Turkey leads the region in many areas from production to sales. One of these is digital transformation. The Future Lab innovation center opened in Çerkezköy leads global end-to-end traceability and connectivity projects. With the training and experiences offered here, Turkey guides BSH’s digital journey.”
Lastly, Sığın stated that investments will continue in the region due to its successful momentum and potential, adding, “Our investments will continue in both Turkey and the Emerging Markets Region. We plan to invest approximately 500 million euros in Turkey over the next 5 years.”
Double-digit growth expected in 2024.
Sedef Ataman, CFO of BSH Emerging Markets and Vice Chairman of the Board of BSH Home Appliances, evaluated the financial performance of the Emerging Markets Region, stating that they expect to close the year with double-digit growth again. Reminding that the region has grown over 10% each year, Ataman said, “The year 2024 brought many global and local challenges along with opportunities. We took cautious and rational steps in line with our growth strategy. As a result, we maintained our growth and hope to close the year with an increase of around 10% again.” Ataman, who mentioned that people lie at the heart of their business, stated that they reach consumers with products and services aimed at enhancing the quality of life with over 10,000 employees across the region, sharing that the household appliances market in the region is expected to reach 51 billion euros by 2030.
Opportunities and challenges in 2025.
In her evaluations for 2025, Ataman shared the expected critical opportunities and challenges for the future of the home appliance sector. Among the opportunities, she mentioned increasing consumer demand, stating that the expanding middle class and urbanization are driving the demand for home appliances. “Additionally, the demand for innovative home appliance products suitable for smaller and modern living spaces is rapidly rising. The demand for energy-saving products is being promoted by both consumers and governments, while regional energy standards are directing manufacturers to develop highly efficient products. On the other hand, IoT and smart home technologies offer opportunities for digitalization investments,” said Ataman, pointing out that challenges such as economic imbalances and high inflation exist. Ataman continued, “The imbalances in global and local economies create significant pressure on cost management and pricing strategies. High inflation can reduce consumer purchasing power, leading to fluctuations in demand and affecting profitability targets.”
Ataman stated that challenges in areas such as infrastructure deficiencies, political fluctuations, and climate change negatively reflect on cost management and trade conditions, adding, “Furthermore, with rapidly changing technology and digitalization, the need for skilled labor is increasing, while deficiencies in this area can limit growth and innovative projects.”
Ataman emphasized that the diversity of the Emerging Markets Region is its greatest strength, concluding her remarks by stating, “The Emerging Markets Region has experienced many opportunities and challenges that could be considered firsts for the rest of the world. Along with this unique experience, the diversity of our teams makes our region resilient to all kinds of fluctuations. As the Emerging Markets Region, we will continue our stable growth in the coming years.”