Vorwerk $2.5 Billion In Sales, 10% Increase

Reiner Strecker, Vorwerk


The Vorwerk Group can look back on a successful year 2012: Total revenue has risen to almost 2.5 billion euros compared to 2011 by ten percent. Because of the excellent start to the 2013 count, the personally liable partners in the now 130 Fiscal year with a positive development of Vorwerk and plan investments of 130 million euros.

The Vorwerk & Co. KG is a family-founded in 1883. The holding is headquartered in Wuppertal (Germany). At the top of the corporate group are Managing General Partners Managing Partners Walter, Reiner Strecker and Frank van Oers. Vorwerk's core business is the worldwide direct sale of high quality household products (Kobold, Thermomix kitchen appliance, products of Lux Asia Pacific) and cosmetics (JAFRA Cosmetics).

2012 was a very good year for the Vorwerk Group, was the conclusion of the General Partner of Vorwerk Walter Managing Partners, Reiner Strecker and Frank van Oers. The Vorwerk Group achieved € 2.494 billion the highest ever total sales, of which 814 million euros in Germany. The volume of business including new business akf group climbed to 2.8 billion euros. The equity ratio now stands at 64 percent, Vorwerk has posted cash in the amount of 884 million euros.

For the current 130 Fiscal year, we expect the 3-billion-euro mark in the volume of business to crack, said the general partners. This forecast is based on the continued good performance in the first four months of this year between January and April 2013, the Group recorded a sales increase of ten percent compared to the same period last year.

Vorwerk is designed as a family on a long-term, profitable growth. How sustainable this strategy was successful in the past years, you can see the ten-year comparison between 2002 and 2012, we have been able to double our sales, said the general partners.

With a focus on innovation and modern product design succeeded in 2012 to strengthen corporate and sub ??brands fundamentally. This strategy uses Vorwerk in the future its strengths and investing for the 130th Birthday targeted in different areas of the group: But are planned EUR 130 million, of which 30 million for the plant location Wuppertal.

Worldwide, almost 623,000 people working with Vorwerk, of which around 610,000 as an independent consultant – that is about more than 20,000 consultants in 2011. Through its own sales companies in Europe, Asia and America as well as a wide network of distributors, there are products and services of Vorwerk in 75 countries around the world.

The divisions at a glance
The Goblin division increased its sales significantly in 2012 and now reaches a volume of 810 million euros, an increase of more than eleven percent. The Kobold vacuum cleaner continues to make it the best-selling product range of the Vorwerk group. The oldest foreign subsidiary of the Vorwerk Group, Folletto in Italy, this year celebrates 75 Birthday. With the growth of nine percent on a turnover of 491 million euros, Italy is still the number one in sales for the division. Also in Germany, the second largest country of distribution, managed to increase sales by year again: Goblin Germany reached a volume of 202 million euros, which represents an increase of almost 19 percent over 2011. The positive results show that the innovations in Goblin bear fruit. Provide innovative products and additional sales distribution channels new customer contacts. The success confirms: Direct sales using all the most modern distribution channels in the world.

98 percent of customers recommended the multifunctional Thermomix kitchen appliance – an outstanding value. So it is the division once again managed to raise the results of 2011 with an increase of almost 16 per cent on a turnover of 684 million euros. This success is all contributed Thermomix countries. Particularly high levels are again France, Italy, Germany and Spain grew. The highest rate of increase of the quartet reached Germany with an increase of 27 percent and a turnover of 153 million euros. However, the medium-sized and smaller countries and the export increased sales. Reason for the continued success in 2012 – in addition to the excellent product – quantitative and qualitative increase in staff at all levels. A total of almost 28,000 representatives worldwide are now already working for the Thermomix – and the trend is rising.

The akf group provides for more than four decades of financing and leasing packages tailored for SMEs. Its portfolio ranges from dealer wholesale financing, sales financing to direct financing of capital goods. In addition, the akf takes increasingly in Germany, Spain and Italy in the consumer finance finance the sale for direct sales Thermomix and Kobold. In 2012, all divisions of the akf group have performed well, which has led to an overall growth in new business to 687 million euros. Sales also increased compared to last year and is now hovering at 408 million euros, an increase of seven percent.

Sales of JAFRA Cosmetics, the cosmetics division based in the U.S., has grown during the year to almost 466 million euros, an increase of about six percent. The largest share of the Mexican distribution company again. JAFRA Mexico, with sales of nearly 362 million euros, an increase of nearly six percent over the previous year. JAFRA's second largest market, the USA, revenues totaled more than 54 million euros, or almost seven percent over last year. Again clearly positive, with around 20 percent JAFRA is in Brazil, with sales of over 16 million euros. The JAFRA established European companies show very stable. Overall, they come to a sales volume of almost 30 million euros, or about three percent more than last year. Is scheduled to open sales in Indonesia later this year. Worldwide, there are now more than 570,000 JAFRA-C onsultants.

Under the brand name Lux Asia Pacific, the Vorwerk Group sells in Southeast Asia high quality water filters, air cleaners, washing machines and vacuum cleaners and related materials. The Business Unit reported a turnover of 35 million euros, up three percent over last year. Lux Lux Royal Indonesia and Thailand are the two most important national companies of the division.

Vorwerk Carpets have been able to compete again in a shrinking market of textile floor coverings and the industry trend towards successfully produced. While alone among the members of the Association of the German Home Textiles Industry sales declined by ten percent in Tuftingbereich in 2012, Vorwerk Carpets were able to maintain their revenues with over 74 million euros in the previous year. In 2013, the first carpet manufacturer have started marketing of design flooring, thus expanding its range with hard floors. With the castor oil-based, ecological production version of the new hard floor has a unique selling proposition.

About Vorwerk

The Vorwerk family also includes the akf group, Vorwerk Carpets and HECTAS group as a sister company. Worldwide, almost 623,000 people working with Vorwerk, of which around 610,000 as an independent consultant. Vorwerk generates consolidated sales of EUR 2.494 billion (2012) and is active in over 70 countries.

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