Upbeat outlook from Simon-Kucher.
Bonn: Strategy consultancy Simon-Kucher & Partners has offered an upbeat financial outlook after breaking the €120 million revenue barrier for the first time,
Revenue was up 15.1 percent to €121.3 million in 2011 and it expects to turnover €200 million by 2015.
The firm's professional headcount rose by 17 percent during the year; it now employs 585 associates worldwide.
Co-CEOs Klaus Hilleke and Georg Tacke say they are very satisfied with the results. "Our strongest growth was in the traditional core consulting markets," reports Tacke. "These markets will continue to support us in the future."
Almost all of the company's divisions and regions contributed to the rapid growth. The firm says that business developments were, "outstanding in the more cyclical industries of consumer goods, automotive and technology. Growth in these areas was almost double the rate for the firm's business as a whole."
Globalization continues — new offices in São Paulo, Dubai and Istanbul
Simon-Kucher's CEOs attribute the firm's success to its clear focus on strategy, marketing, sales and pricing combined with a policy of global expansion. The company currently has 23 offices in 17 countries, and generates over 40 percent of revenues outside its home market of Germany. This percentage is expected to increase in the coming years. In December 2011 the firm's partners decided to expand to South America, the Middle East and Turkey, with new offices opening in São Paulo, Dubai and Istanbul in the next 15 months.
Positive outlook for 2012 — no sign of a crisis
Simon-Kucher says it sees no signs of an impending crisis in the consultancy sector. "Demand is strong and stable in every region," states Tacke. "We expect our growth to continue in 2012, and that it will be another record-breaking year for us." The firm aims to raise its revenue by more than 15 percent to at least €140 million. For 2015 its revenue target is to top the €200 million mark. The workforce will also continue to grow. Simon-Kucher plans to hire 150 new associates in 2012. Eight new partners were elected in January 2012, bringing the total number to 59.
Growth potential remains high — market share of only three percent
Simon-Kucher's says its consulting activities focus on 'smart profit growth'. The company specializes in pricing, marketing, sales and strategy. In this specific segment it holds a market share of just three percent.
"There's tremendous potential for us here," says Hilleke. "Lots of companies are at the leading edge of technology but aren't able to turn their expertise into good profits. That's where we come in."
Simon-Kucher's recent Global Pricing Study, which surveyed 4,000 companies worldwide, revealed that profit remains an area with tremendous scope for improvement. Some 65 percent of respondents sacrifice one-fourth of their profits by having the wrong pricing, sales and marketing strategies.