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Eisele US push
Since 2013 Eisele has pursued a course of expansion in order to develop the US market with its corresponding industries. Eisele comments that setting up a subsidiary in the US is a major challenge for a mid-sized German company with about 150 employees; however, it considers this challenge to be worthwhile.
With 324.3 million consumers and a gross domestic product of about US$18.5, the US is still one of the world’s biggest domestic markets. In addition, many Eisele customers are already familiar with the US market. The company believes it makes sense to offer them Eisele products there as well.
However, Eisele comments that German quality alone is not sufficient for a successful market entry in the US, making the point that it is necessary to sell American products of German quality under local conditions. This includes switching from European standards, regulations and units of measurement to the American equivalents. Units of measurement such as inches and Fahrenheit, other regulations such as those of the Food and Drug Administration (FDA), or other threads, such as R and NPT threads, have to be taken into account.
Since starting the US commitment, the product development strategy at Eisele has taken on an international perspective, so that products are developed for distribution both in Europe and the US.
Portfolio tailored to target market
With the founding of the subsidiary Eisele Connectors in Grand Rapids, Michigan, Eisele has therefore started producing its Liquidline connections for coolant applications with inch tube sizes and NPT threads, in order to open up the market for the US automotive industry.
The same approach has been applied to the Basicline and the Inoxline. Based on demand, the entire product spectrum will now be adapted with a view toward other industries, such as food production.
In 2016, various closely coordinated measures carried out by three employees in the US market resulted in sales of 0.5 million US dollars. By the year 2020, Eisele is planning to increase sales of the subsidiary Eisele Connectors Inc. by ten times to five million US dollars, with 14 employees.
While in 2009, 80% of Eisele products were still sold in Germany and the remaining 20% in the EU, Eisele’s goal for 2019 is to achieve 15% of sales in Asia and the USA, respectively. Europe is still planned at 20% Germany will then remain the strong national market with 50% of the total.
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