Gardena is the number one watering brand in Europe. It is recognized for high quality and market leading product innovation and design, strengths that provide substantial competitive advantages. There are many opportunities to leverage the business by expanding core product segments geographically and by expanding the offering in core markets.
The division incorporates the Gardena brand, complemented by the Neta brand in Australia and New Zealand. Net sales in 2015 amounted to SEK 4.7bn (4.2), representing 13 percent (13) of total Group net sales. The operating margin rose to 12.7 percent (9.1), excluding items affecting comparability.
The division operates globally, although more than 90 percent of sales are currently in Europe. As consumer shopping behavior is increasingly turning to online purchasing, distribution is evolving towards a multi-channel environment: retail, dealer and online. However, distribution still is dominated by the retail channel.
Watering products are highly seasonal and sales are also weather dependent. To support quick delivery readiness, production facilities are located in the core market Germany and in the Czech Republic and are optimized to achieve short lead times.
A leader in consumer watering
Gardena offers the broadest range of gardening products in its markets and leads the market in Europe for watering and hand tools. Its products are typically in the medium to high price ranges. The product range is characterized by a solution and system character and much of the success has come from systems such as the Original Gardena System in watering products (garden hoses, connectors, sprinklers, pumps, etc.) and the Gardena Combisystem for hand tools (digging tools, secateurs, loppers etc). The level of customer support is also an advantage, for example, for offering watering planning and spare parts availability. Maintaining this strength and exploiting it further into online is a key going forward.
The brand for passionate gardeners
The Gardena brand enjoys strong brand awareness and recognition in the consumer segments in the European markets, but the main focus is on end-customers with a passion for gardening. These users take pride in crafting unique results and truly enjoy the different activities involved in gardening. For this reason, they demand reliable, user-friendly products with high quality.
Robotic, electric and connected products
Electric and battery-powered products such as robotic mowers built on the great experience from Husqvarna Automower®, lawn mowers, trimmers, hedge cutters and shrub shears are also included in the offering. Further building on these positions is key since they are the fastest growing segments. In 2016, Gardena will introduce a new concept enabled by connectivity and Internet of Things technology. The concept connects intelligent garden sensors, watering equipment and controls and robotic lawn mowers. A smartphone application lets the consumer control and monitor the devices to optimize and automate watering and mowing.
Opportunity to expand geographically
Gardena’s core markets are Germany, Austria, Switzerland, Belgium and the Netherlands. Gardena is also well represented in other areas of Europe as well as in Australia, Canada and South Africa. There are significant opportunities to expand the core offering beyond the current core markets, as well as to leverage on Gardena’s brand strength into new or adjacent product categories.