During the press conference that was held yesterday in Milan, Candy presented the results achieved in 2016 and the strategies for the future. Candy Group closed the year 2016 with over 1 billion euro in revenue (1.035 billion, + 10% compared to 2015, with EBIT of 4.7%, amounting to over 48 million euro). Growth was 13.2% if reconciled to the currency effect. In addition, the company recorded a significant increase in the market share in Europe, where it reached an increase of 20% compared to 2015, according to GfK. After the positive data of 2015 and the important result achieved in 2016 (where the company grew by 8% in the first quarter and by 11% in the last quarter), in 2017 the Group expects an increase in revenue of 10%.
Candy’s success is due to the ability to segment the business proposal and penetrate the markets using both strategic product lines and brands (Candy, Hoover and Rosières among the major ones), in order to intercept the different preferences of consumers and markets. Four strategic segments represent the core of Candy’s offer: Washing, Built-In, Small Domestic Appliances and Cooling.
Among the success factors, the technological innovation adds to the segmentation capability and the effective positioning strategy. Candy Group is a protagonist in the connectivity and in the smart appliances, where it has a market share of 46.8% in Italy, 61.9% in France and 44.6% in Russia. The smart appliances play a key role in the corporate strategy: in 2014 Candy introduced on the market the simply-Fi products, a complete range of major domestic appliances, wifi-connected and manageable with a single App. Today, the Candy simply-Fi and Hoover Wizard offer also includes models with NFC technology, smart models, easy to use, designed and developed to simplify the consumer’s life. The connectivity and the use of smart appliances see their utmost expression in the latest products such as Candy Watch&Touch smart oven, presented at Milan Design Week. The launch of a highly interactive washing machine is scheduled to be presented at IFA Berlin.
The model applied in Europe is a success model that the Group intends to replicate and export to other geographic areas: Russia, the Middle East and China in particular. Candy Group recently strengthened its presence in the Chinese market with the strategic cooperation agreement with Meiling, important company in China for the production and distribution of home appliances. The objective of the joint venture is twofold: to strengthen the position in the washing machines market (with the aim of selling 4 million units in China over the next 3 years) and to launch a strategic cooperation in the refrigeration segment in Europe. Candy’s 2017-2019 industrial plan sees 105 million euro investments to relaunch the Group’s innovation and growth, with the goal of achieving a consolidated turnover of 2 billion euros over the next 5 years, in addition to other investments in marketing and communication (43 million euro invested in 2017 with an expected increase of 50% over the next two years).
Besides, another important point for Candy is the multibrand strategy to reach the different typologies of consumers: in 2016, Candy commissioned a survey on a panel of 8,000 people of various ages in UK, France, Italy and Russia in order to know the different profiles of the consumers and their needs. Based on this segmentation, the Group has the opportunity to address to the different targets its two main brands (Candy and Hoover) with different technologies and promotions (from the web to TV commercials, traditional advertising, promotions at the point of sale).
