The launch of new product lines and the expansion of the nationwide coverage by the addition of a new distribution partner will form the basis of Gorenje's growth on the domestic market, according to the company's general manager, Tone Prislan.
The company saw its turnover rise by 20% to 17.5 million euros last year, and it estimates the launch of new products will account for 60-70% of this year's growth.
"We will launch at least two product ranges in 2007 and we will add a new retail partner to our portfolio, thus focusing on the expansion of the national coverage. We will also focus on the built-in segment, because this segment has grown by more than 50% to 10,000 units last year," said Prislan. He added the company intends to boost sales by 40% on the segment of built-in home appliances this year, mainly because it estimates a surge in demand as a result of the construction of several residential areas throughout the country.
In a bid to strengthen the company's image on the market, Gorenje will launch in Romania product lines similar to those developed over the recent years in partnership with Pininfarina and Swarovski, even if they are niche products and are not sold in large volumes.
Gorenje products are distributed on the domestic market through more than 1.030 stores held by the company's ten large retail partners, prioritised depending on the sales volume, according to the data provided by the company. "We sell approximately 20% of the 90,000 units through the cash&carry networks such as Selgros and Metro, more than 25% through the specialised national networks such as Altex, Flanco, Domo and Bricostore and some 54% through independent distributors. We are currently in talks with a new distribution partner," said Prislan.
After it strengthened the Gorenje brand on the domestic market, the company plans to boost the sales volume by 10% to approximately 100,000 units in 2007.
"From a conservatory point of view, the sales will grow by 5% this year, while from an optimistic point of view, we will see a 10% rise. We are an optimistic company. First, we have to act in response to the market, because no one knows in January what will happen in August or September," Tone Prislan also said.
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