Bonn: Simon-Kucher, the Germany-based consultancy and renowned pricing specialist increased its revenue by 20 percent in 2012 to a new high of 145 million euros (USD 190 million).
It grew its professional headcount by 16 percent to reach 660 worldwide. New partners were elected at he start of the year. so that 62 now drive the consultancy's business.
CEOs Klaus Hilleke and Georg Tacke commented, "Once again we've succeeded in doubling the industry's growth average. Our rigorous globalization strategy is undoubtedly a reason for this success."
All of the firm's regions and industries contributed to its growth; even in the currently weaker southern European markets generated double-digit growth rates this past year.
Market entry in Latin America
Simon-Kucher continued its ambitious international business expansion. Over the course of 2012, it opened new offices in Dubai and Istanbul to serve the highly dynamic and promising Arab and Turkish markets. With the addition of these two offices, Simon-Kucher now has 25 offices in 19 countries.
Approximately 45 percent of the firm's revenue is already being generated outside of its home market, Germany.
This percentage is expected to continue rising, as Simon-Kucher will be opening new Latin American offices in Brazil and Chile. "We've already conducted countless projects in Latin America. To serve our many clients in that region even better, we'll soon be opening new offices in São Paulo and Santiago de Chile" said Hilleke.
Strong growth to continue in 2013
While economic uncertainty is being reported in many countries, the consultancy does not see any signs of a crisis.
"In most regions, the actual economic situation is better than what the media portrays. We anticipate double-digit revenue growth in 2013 which will push us well above 160 million euros (USD 210 million)," Tacke commented.
For 2015, the firm's five-year plan projects over 200 million euros revenue (USD 260 million). To keep up with this growth rate, the consulting team will also have to expand. 150 new hires are planned for this year — about half of them outside of Germany.
Growth through focus
Simon-Kucher's clear focus is on profit-oriented growth. Since its inception 28 years ago, the consultancy has specialized in pricing, sales, marketing and strategy.
Hilleke and Tacke observed that many companies, especially in the last couple of years, have dramatically cut their costs and thereby significantly boosted efficiency.
"Companies have reached the end of the road with regard to cost cutting. If they want to grow, they have to become active on the market side. And this is precisely our area of expertise," Tacke commented.
The recently published Global Pricing Study, surveying nearly 3,000 managers, reveals the immense potential in this area. Companies could easily generate 25 percent higher profits, the study reports, if they overcome their deficits in pricing and sales.