Company name: Loewe
Company size: Large
Company web site: http://www.loewe.de
Date of Foundation: None
Nr. of Employees: 250<
When a very successful company is faced with sudden technological changes in its marketplace it has to react quickly or see its Market disappear. Loewe, a long established German TV manufacturer, was faced with a situation where its Customers were abandoning the old Cathode Ray Tube Technology and embracing the New flat screen televisions and doing it at a far faster rate than the company had expected. CRT televisions were suddenly out of fashion and prices fell sharply. Profits changed into losses and the company faced a crisis. It faced this challenge by investing heavily in the Design of top end Products that combined Quality, flat screens sourced from a partner in Asia and modern minimalist Design. It worked closely with External designers to create a range of visually attractive Products that started to win back Customers and re-inforced a valued Brand. Between 2004 and 2006 nearly 40 innovations were introduced and sales of these Products climbed and profitability returned. “We underestimated the dramatic impact of flat screen Technology on the Premium Market” said CEO Dr. Rainer Hecker. The head of Design and Design Management at Loewe, Edmund Englich, develops New Design concepts. These are then outsourced to a Design studio that shares Loewe’s Culture and values. This partnership and approach has resurrected the company and placed them back on a Growth trajectory.
Using design to position the company in the premium segment
The picture of a company changes depending upon the economic position it finds itself in. There are times a company can have great ideas and enjoy the success that comes from them and there are times, perhaps due to external market factors, that a company must face difficult challenges and find new solutions…