Photo: Woodworking
Philipp Blum
Blum has reported its annual sales have increased by 24.7 per cent, to nearly 2.4 billion euros, over the previous year.
The fittings manufacturer reports it was able to achieve these positive results thanks to the strong demand for top-quality kitchens and furniture from consumers wanting to spruce up their homes.
However, shortages in raw materials, especially in steel, have put severe pressure on supply chains.
Blum’s 2020/2021 financial year ended June 30, and its growth represents an increase of 470 million euros over the previous year.
The unforeseeable surge in demand for furniture caused by the COVID-19 pandemic has led to an above-average increase in turnover, the company says.
“The crisis has prompted people all over the world to attach more importance to their homes,” says Philipp Blum, managing director of Blum.
“At the same time there has been a shift in private consumption – away from traditional leisure time activities to investments in home improvements, for example in kitchens and furniture.”
Development of international markets
Although furniture stores had to close their doors for long periods of time during the lockdowns, the demand for furniture and interior refurbishments increased dramatically all over the world.
Western Europe recorded strong growth, particularly in Italy, France, the UK and Germany. Major increases were also posted in Eastern Europe, for example in Poland, Russia, the Czech Republic and Turkey. Business also went well in North America. Sales figures also rose in Asia and Oceania, with China again contributing significantly to the business results. In addition, last year also proved to ba positive for Blum in Africa, South America and the Near and Middle East.
Blum delivers to customers in more than 120 countries. And with the recent establishment of Blum Indonesia in the spring of 2021, the company has 33 subsidiaries and representative offices worldwide. Philipp Blum is convinced that the company’s international orientation and policy of having local organizations and sales teams on site close to customers was very important during the pandemic. The distribution of Blum turnover by region remained the same as in the previous year. “We still achieve most of our turnover, that is to say 44 per cent, in our domestic market, the European Union,” says Philipp Blum. “With a share of 13 per cent, the US. is the company’s largest single market; other markets worldwide account for 43% of total turnover.
Employees are key success factor
“We’re delighted with the demand for kitchens, furniture and consequently Blum products but it poses extreme challenges, especially in the field of production,” says managing director Martin Blum.
“We owe big thank you to our employees. It’s because of their commitment and flexibility that we’ve been able to deal with this extraordinary year.”
Blum employs 8,778 people worldwide and continues to attach great importance to its apprenticeship program, i.e. training young people to become specialists. The goal is to counteract the shortage of skilled professionals and be well equipped for the future.
