Consider a world without washing machines. A time when people cleaned their clothes by pounding them on rocks and then rinsing them in flowing water. Voyagers at sea would place their laundry in a strong cloth bag and toss it overboard, letting the ship drag it for hours.
As the idea of forcing water through clothes to remove dirt evolved, the laundry business has developed into a multi-billion dollar industry. The drive to make your whites whiter and colors brighter brought in greater novelty and more efficiency.
With the launch of the latest range of Blomberg appliances by Turkish white goods giant Arcelik, the company believes it has brought the industry to a new level of innovation.
In an industry that sells over 282 million units per year, Blomberg believes its new line of products, positions it to be the most admired premium brand in the household appliance market by 2010.
If it succeeds, the Blomberg story may be seen as one of the great comebacks in the white-goods market ““ “the re-launch of the Blomberg brand.”
Founded in 1883 as a metal industry company, German-based Blomberg began producing washing machines in 1947, moving to the forefront of the industry in the Eighties when it manufactured the first fully electronic machine. It was also the first to produce a machine with water consumption of less than 100 liters.
But the momentum slowed through the Nineties as sales stagnated and competitors gained control. By the turn of the century, Blomberg had lost a large portion of its market share, and had started looking for alternatives.
In 2002 it found a solution in Istanbul-based Arcelik. The Turkish company acquired Blomberg, along with Austrian company ElektraBregenz, for an undisclosed amount, moved the operation to Turkey, and set out on a strategic plan to re-establish the presence of the Blomberg logo in the average home.
Faced with a strategic choice after the acquisition, Arcelik’s management decided to “stay with and develop an international name that people already know,” rather than creating a new brand under the Arcelik flag.
The gamble paid off, and the combination of the Blomberg name and Arcelik managerial and organizational resources has already born fruits. It claims to have produced a range of appliances that will set trends both in style and technology.
The launch in Israel in November through local distributors Crystal, brings a new kind of washing machine, dryer, dishwasher and cooking appliance to the country as part of the first stage of Blomberg’s international rebirth. It has embarked on a carefully planned campaign that will initially focus on infiltrating Russia, Denmark, Belgium and Israel.
“Our aim for 2005 is to establish ourselves in the dealerships in Europe,” said Turgut Soysal, group director for production and technology. “After that, we plan to bring in more aggressive advertising.” He added that the US will come later, and even further down the line, the Far East.
As part of the Arcelik empire, Blomberg joined what is widely known as Turkey’s most successful company. In 2003 the group had consolidated net sales which totaled 1.9 billion, of which exports constituted more than half. Its international sales of household appliances in 2003 reached 5.7 million units.
The company boasts the largest front-loading automatic washing machine plant in Europe (in Cayirova, in greater Istanbul). The spotless factory, which employs over 1,480 workers, covers 35,000 square meters and produced approximately two million units in 2003.
The plant uses the Japanese method of Total Productivity Management (TPM) ““ a program designed to focus on employee productivity and increase the contribution each one makes in handling resources.
Arcelik has separate factories for the manufacture of its refrigerators, dishwashers, cooking appliances, which prepares the company to meet the mass demand it expects.
So for those who, like me, think a washing machine is a washing machine is a washing machine, think again! Each appliance has a variety of features, and Blomberg says they were all designed with everyday family life in mind.
In the world of household appliances that means clean clothes, well-preserved, well-cooked food, and shiny dishes.
But the Turks’ greatest challenge lies in re-creating the emotional power and recognition of the brand. Blomberg has employed accomplished German design studio Frog Design to ensure the products remain accessible and emotionally appealing.
Its 2004 line may be the start of a new era for Blomberg, and the reassumption of its role as market leader.
From business.jpost.com