Bosch (BSH Hausgeräte GmbH), a Germany based company and a global supplier of technology and services, is launching its home appliances business in Pakistan.
The company started its automotive aftermarket, power tools and security system operations in Pakistan three months ago. Now, Bosch Group is looking to expand its product portfolio and is looking for partners and official distributors. It will launch a wide range of home appliances in Pakistan.
The announcement was made during a briefing session at the company’s Head Office in Lahore. The CEO of Bosch UAE, Gokhan Sigin, was also present during the announcement. He said that Pakistan is the world’s sixth biggest country in terms of population, making it one of the most attractive business markets in the world. Bosch plans to expand with long-term goals in mind.
Sigin said “For Bosch, it becomes a very lucrative business proposition and in the coming years, we want to become the number one home appliances brand in Pakistan.”
Bosch is a premium home appliances brand, typical of companies from Germany. They tend to make high quality products but with heavy price tags. Pakistan already hosts multiple cheap Chinese and local brands. The German manufacturer is aware of this and do not plan to compete based on prices. The company will compete with high quality products and expects the consumers to choose quality over price.
When answering a question regarding price and quality, Sigin said “We can not be knocked out on the basis of quality as we have huge factories, and we know our technical strength. If rivals are providing low-priced products, it means their production line is cheaper than us which is where we defeat them”.
He compared Bosch to expensive cars, saying “I can see most expensive cars on the roads in Pakistan, which clearly suggests that people have an appetite for quality products as well. It is secondary that they are expensive”.
Bosch will be opening at least three flagship stores in every major city of Pakistan to highlight the premium brand. However, the high standard of after sales service, which Bosch is known for, will be strictly maintained by both, Bosch official retail stores and distributors.
Sigin hinted that Bosch might start a local assembly line in Pakistan as well. The company will be directly investing in Pakistan and wants to make products aimed for the local market.
Hence, after Bosch has assessed market demand, it may invest in a local assembly line. However, it will depend on the consumers and Sigin was cautious not to reveal any concrete details.
It doesn’t look like Bosch intends to compete with the local and Chinese brands. Rather, it is going to aim at certain types of customers who prefer quality over everything else.
Encouraging Pakistani consumers to pay extra for a long-serving highend product might be a bit difficult, which will make it tough for Bosch to compete in the Pakistani market when its products go on sale initially. But with the company’s long term ambitions, expect that not to be an issue.
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