CEBU, Philippines - Bosch, a leading global supplier of technology and services, recently opened its first business hub in Cebu, marking the company’s first expansion venture in the country outside of Manila.
Top officials of the Bosch Group led the opening of the two-storey Visayan business hub last week, situated at Lopez Jaena corner Urbano Street, National Highway, Subangdaku, Mandaue City.
Bosch Southeast Asia president Martin Hayes said that it is timely to set up a second business hub in the Philippines which is considered to be one of the fastest-growing countries in the region.
He added that over the last decade, the country has posted a bullish impression among foreign investors buoyed by the construction boom, highly-competitive automotive industry, the sunshine industry of the business process outsourcing firms, the recent investment grade rating from Fitch and Standard & Poor’s Rating Services and the 7.8-percent growth of the Philippine economy in the first quarter of this year.
“Southeast Asia is currently the fastest growing region for Bosch. The size of the Filipino domestic market holds great potential for Bosch to expand our operations beyond Manila into other cities,†he stated.
He said that last year, Philippines posted a strong double-digit growth with the Visayas and Mindanao regions as one of its major markets and substantial dealership network.
In 2012, the German company generated sales of 52.5 billion euros worldwide wherein Bosch Philippines contributed 17 million euros.
Officials said that such sales performance was driven by the automotive technology that accounted 60 percent of the total sales turn-out.
Bosch entered the Philippine market in 1928, started its operations in Cebu by distributing automotive parts.
“It was only logical for Bosch to come back to its roots in the Visayas and expand into this region to give Cebuanos access to the most fascinating products in the market today,†Hayes added.
Not only will it serve as a service center, the 225-square-meter facility shall also house trainings and technical support for the dealers and customers.
Hayes further revealed that they are eyeing to also expand to other regions and start in key cities like Davao anytime soon.
Hayes’ statements were supported by Joseph Hong, managing director of Bosch Philippines, who said that the company’s first foray outside Manila is inspired by the strong market potential in Cebu that poses a strong cause for the local presence in the area.
“There is a tremendous growth in sales and market interest generated from Cebu alone that makes it economically viable for us to expand into. A local presence in Cebu enables us to better serve the Visayan region with our diverse range of products and solutions across industries,†Hong said.
He added that Cebu is hailed as one of the most progressive metropolitan areas in the country, providing market opportunities with its population size, high spending power, and robust growth in the real estate, business process outsourcing (BPO) and tourism industries.
The company is also positive with the province’s thriving construction industry as the local demand for commercial and housing units increase and is expected to triple this year.
William Go, country sales director of Bosch Power Tools, said that Cebu, in particular, serves as a test market for the global company of how well-accepted a new product is.
“In terms of adoption of technology, Cebu has been a barometer whether a product is a success or not. If it is accepted in Cebu market, more likely it will be adopted in the entire country,†he said.
Bosch currently has seven dealers in Cebu with more than 20 branches in the province.
In partnership with a local distributor, Bosch sells its power tools in 13 showroom locations across Cebu.
Philippines sales director of Bosch Automotive Aftermarket Sangjo Park said that the company remains confident with the growing automotive industry in Cebu and in the country as the domestic demand for automotive products is expected to remain robust in 2013 backed up by the increase of the middle-income market segment.
The country recorded around 7.5 million car registrations last year that are projected to grow to 8.1 million by 2015.
To provide expertise in the field of automotive electronics, Bosch established a Bosch Car Service (BCS) workshop and a Bosch Diesel Service (BDS) in Cebu that offer professional diagnosis, maintenance and repair services for all gasoline and diesel vehicle models. /JOB (FREEMAN)