Wincor Nixdorf expects emerging markets to drive sales
January 24, 2014 00:00 By Petchanet Pratruangkrai The N 3,041 Viewed
Wincor Nixdorf, a German supplier of information-technology solutions for banking and retail businesses, aims to grow its sales by 4 per cent net in the current fiscal year (October 2013 to September 2014), expecting strong growth in retail industries, es
At “Wincor World 2014,” an exhibition of innovative hardware, software and services for retail and banking, president and chief executive officer Eckard Heidloff said the firm projected net sales of 2.6 billion euros (Bt115 billion) this fiscal year, higher than last year’s 2.46 billion euros.
The company also projects 155 million euros in operating profit, up by a strong 17 per cent compared with the last fiscal year.
“Having completed our restructuring programme last year, we consider ourselves well placed to sustain the considerable level of growth generated in emerging markets. Sales in emerging markets, mainly in Asia, including China and Asean, could grow by 10 per cent,” Heidloff said.
Emerging markets already contribute more than 30 per cent of the group’s net sales, and Heidloff expects to see that share exceed 32 per cent this year.
To achieve the goal, the company has strategies to focus on providing state-of-the art technology to its clients, with full service concentrating more on software solutions.
Heidloff stressed that Wincor was attempting to double its revenue from software and professional services to 600 million euros within five years.
To that end, the firm has allocated around 30 per cent of the company’s investment budget for research and development on software.
He said the company planned to serve clients’ demand in each particular market.
Wincor also is banking on the world’s middle-class population doubling in the next 15 years to 4.2 billion. The firm also projects that the number of automated teller machines will increase by 6 per cent from 2.6 million now to 3.7 million in 2018.
Moreover, the company will concentrate more on mobile payment and cashless transactions, with the former growing by 35 per cent per annum, from US$163 billion (Bt5.35 trillion) in 2012 to $721 billion in 2017.
The company has found that mobile money accounts are already being used by more than 360 million people.
Thomas Fell, senior vice president for Wincor Nixdorf’s retail section, said the firm projected 35-per-cent growth in the retail sector this year, with emerging markets expanding much faster. However, it anticipates primarily organic growth rather than aggressive acquisitions to increase market share.
Fell said that although global economic growth was slowing, the firm did not expect its retail clients to invest less in hardware and software to serve their customers. He expects a slight increase in investment in the retail sector, as customers are becoming more demanding.
At Wincor World 2014, an international technical fair that began on Tuesday, about 500 exhibitors presented their latest IT solutions for retail banking and retail industry. The fair ended yesterday.
Banking and retail enterprises from 90 countries joined the event.