The 2024 fiscal year was characterized by considerable economic challenges. The ongoing effects of the war in Ukraine, high inflation, disrupted supply chains, and rising commodity prices are still impacting consumer behavior and production costs, and these factors led to a decline in sales in the first half of the year. At the same time, dynamic market development, especially in emerging countries, also offered opportunities due to increasing urbanization and growing middle classes. This, together with favorable climatic conditions in the northern hemisphere, effective sales campaigns, and new product launches in the second half of the year, contributed to the fact that we managed to slightly surpass both the sales volume and Group turnover of 2023 and the 2024 plan, despite the challenges. With a view to future development, we further expanded the global network of authorized STIHL dealers and adapted our product portfolio to the changing needs of our customers.
Markets
As in the previous fiscal year, geopolitical tensions, weather conditions, and inflationary pressure posed major challenges for STIHL in the global markets in 2024. Higher prices had a negative impact on consumer demand and customers’ willingness to invest. Political uncertainties and regional instabilities also affected sales to retailers worldwide.
In the first half of 2024, these uncertainties in Europe, North and South America, and Oceania led to sales trends below the previous year, with only the developing markets of Africa and Asia having sufficient momentum for a slight increase.
Despite the uncertainties, there were also opportunities in the past fiscal year: After the supply bottlenecks in 2022, many retailers increased their stocks. These high inventories were reduced over the course of 2023, meaning that retailers’ replenishments normalized over the course of the 2024 season, which had a positive impact on sales. Newly launched products, particularly in the second half of 2024, and the extensive range of special offers successfully supported this development. As a result, 2024 was positive overall compared to 2023 and the planning for 2024. It also underlines a forward-looking perspective for the coming fiscal year, in which our customers’ expectations for STIHL products remain high. We are well equipped to meet these expectations in 2025 with exceptional support and a growing range of digital solutions.
Battery transition for major commercial customers
When should a major STIHL customer convert its gasoline fleet to battery power? Which product groups should they convert first? And how can they ensure their employees always have enough battery power where they need it?
These questions in key account consulting also remained a focus for STIHL’s market experts in 2024. The key to providing the best possible advice to major commercial customers is to determine how STIHL and authorized dealers can best support them during the changeover – because the switch from gasoline to battery products is comprehensive and remains a crucial strategic step for major customers. With Commercial Solutions Management (CSM), STIHL is pursuing a new sales approach to optimally support this change and live up to our sales philosophy of “best advice, instruction, and service,” including during this transition. Large-scale customers think in terms of entire fleets, not individual machines – so they require comprehensive battery solutions. Charging management plays an important, complex role in this.
In the 2024 fiscal year, STIHL continued to evolve from a pure product provider into a solution provider. We support major customers with energy management and STIHL connected in switching drive types. Individual customer solutions, training, and product demonstrations – at the dealer’s store or at the customer’s premises – support the transition of major commercial customers from gasoline to battery power.
Through its authorized dealers, STIHL reaches a broad commercial target group – from gardening and landscaping companies to local authorities and public institutions. STIHL authorized dealers remain the key partner and first point of contact for major customers.
ALL SERVICES AT A GLANCE
STIHL OFFERS ITS CUSTOMERS COMPLETE SOLUTIONS FOR BATTERY SYSTEMS. WITH TOP APPLIANCES, SMART SOLUTIONS, APPS, AND END-TO-END SERVICE AT ALL LEVELS.
Focus on dealer network
The development of the STIHL dealer network remained a central component of the market strategy in the 2024 fiscal year. The aim has always been to ensure long-term success by increasing efficiency through the targeted identification and systematic development of market potential among authorized dealers.
As part of this strategy, dealers with high growth potential were identified and supported in 2024. Sales and Marketing adapted their strategies based on end customer potential in order to provide authorized retailers with the best possible support. Targeted support for dealers through personal assistance, special offers, help with sales promotion initiatives, product and sales training, and marketing support was data-supported and based on the identified composition of end customer potential in a dealer’s area of reach. In close cooperation and through regular exchange, STIHL communicated concrete development goals to its authorized dealers to increase their appeal to the identified target group.
Ten years of STIHL Colombia
In the past fiscal year, STIHL celebrated another anniversary in South America. Following STIHL Brazil’s 50th anniversary celebration in 2023, it was the turn of STIHL Colombia to look back on its history. The STIHL Group has had a sales company in Colombia for over ten years. At the beginning of March, over 100 guests, including employees, the longest-serving dealers, and guests of honor from all over the world, celebrated STIHL’s ten-year presence in the Colombian market.
Since 2014, the product range at the South American company has been greatly expanded. Despite the sometimes difficult political and economic conditions, the market share has been continuously increased and the dealer network expanded and modernized, paving the way for the battery-operated products line to enter the Colombian market. Today, we are the market leader for our core products. The company has recently added emerging market products such as power tillers and water pumps to its extensive range of STIHL power tools, making the range even more attractive.
In 2024, two of the Group’s international production companies also celebrated their 50th anniversary: STIHL Inc. in the USA and STIHL Kettenwerk in Switzerland. Read more here.