Media / Press Releases
In 125 years, the Vorwerk family enterprise has grown from a small carpet factory into an international corporate group, which owes its success chiefly to three things: entrepreneurial courage, innovative ideas and a personal touch.
Wuppertal, 6 May 2008 – It all started with a carpet factory. When Carl Vorwerk founded Barmer Teppichfabrik Vorwerk & Co in 1883, he laid the foundation for today’s worldwide brand. Right from the beginning, the Vorwerk founder demonstrated entrepreneurial courage as well as a readiness to act on new ideas and to open up new markets – characteristics that would define every generation to succeed him at the head of the company. Until then, quality carpets had been manufactured only in England. Now Vorwerk produced a worthy rival to the imported article at home in Germany.
In 1904, Carl Vorwerk handed over management of the company to his son-in-law, August Mittelsten Scheid, himself the offspring of an industrial family that had been in business in Barmen since 1764. The company has remained in his family’s hands up to this day. The name of “Vorwerk” was registered as a carpet trademark in 1909. By this time, the company was already a household name well beyond regional borders and growing rapidly: expanding its carpet production plant, putting up new buildings and setting up its own machine shop. New products were constantly being added to the range, which at that time included all manner of products from automobile axles to gramophone motors.
The invention of the radio triggered the collapse of the gramophone market, but a new idea came to Vorwerk’s rescue and the gramophone motor was adapted for use in a vacuum cleaner, the Kobold. In 1929, the Kobold was something of a revolution; a handy little machine – and powerful, too. But the market wasn’t yet ready for the innovation; retailers were unable to explain the advantages of the Kobold to customers. Once again, a revolutionary idea saved the day: the introduction of direct sales in Germany – possibly the most important milestone in the company’s history. Brought back from the USA in 1930 by August Mittelsten Scheid’s son Werner, this form of distribution that focuses on close contact to the customer, became the company’s hallmark and the secret of its success. Today, Vorwerk is the third-largest direct sales company in the world. And the Kobold is also closely associated with another new departure for Vorwerk: international expansion. The company founded Folletto, its first foreign company, in Italy in 1938, for the production of the Italian Kobold variant, the Folletto. The production plants and administration building in Wuppertal were largely destroyed in the war.
A new period in the company’s history began after the war, when in 1953 Dr. Erich Mittelsten Scheid assumed sole management and initiated far-reaching changes, such as extension of the product range and further expansion into international markets. In 1968, the akf bank became the first service brand to join the group. The bank was originally established to enable customers to finance the purchase of a vacuum cleaner, but rapidly developed from its small beginnings and soon the akf group was a flourishing provider of services connected with fleet leasing and the financing of mobile investment goods.
In 1969, Erich Mittelsten Scheid handed over the company reins to his nephew Jörg, who significantly shaped Vorwerk’s fortunes between 1969 and 2005 and transformed the company into a thriving international corporate group. During his time at the head of the company, the Thermomix (1971), a multi-functional kitchen appliance that also has a cooking function, HECTAS Facility Services (1974) and the Feelina Ironing System (2002) were all added to the brand portfolio. Vorwerk also continued to pursue its strategy of internationalization, setting up its first foreign branch in China in 1990. Country-based subsidiaries in eastern Europe followed. As part of its growth strategy, the Vorwerk group expanded by acquiring innovative and successful direct selling companies and, as in the case of Lux Asia Pacific (2001) and JAFRA Cosmetics in America (2004), at the same time entered further attractive markets. Dr. Jörg Mittelsten Scheid retired from the Executive Board at the end of 2005 and was appointed Chairman of the Advisory Board. In that capacity, he is still closely connected with the family enterprise.
Vorwerk celebrates its 125th anniversary in 2008. The Executive Board (comprising Achim Schwanitz, Peter Oberegger – both Managing Partners – and Wolfgang Bahlmann, Eberhard Pothmann and Jochen Sarrazin) is keeping the company on track for growth and boosting its direct selling activities. The personal touch – with the focus on customers and sales advisers alike – remains the success formula of the Vorwerk family enterprise.
About Vorwerk
The Vorwerk & Co. KG family enterprise was founded in 1883. The holding company’s registered office is located in Wuppertal, Germany; the headquarters of the various divisions are in Wollerau, Switzerland (Divisions Kobold, Thermomix, Feelina), Westlake, USA (Division JAFRA Cosmetics), Singapore (Division Lux Asia Pacific), Hamelin, Germany (Division Carpets) and Wuppertal (Division akf group, HECTAS Facility Services, Engineering).
At the head of the corporate group are Managing Partners Achim Schwanitz and Peter Oberegger. Other members of the Executive Board are Wolfgang Bahlmann (Human Resources), Eberhard Pothmann (Finance) and Jochen Sarrazin (Controlling). Vorwerk’s core business is the worldwide direct sale of high-quality products. Vorwerk is one of the “unknown giants”. Worldwide there are around 560,000 working with Vorwerk, of whom some 30,000 are sales advisers in the business of selling household appliances and more than 500,000 working for JAFRA Cosmetics. Vorwerk generates a business volume of more than 2.3 billion euros a year and operates in over 60 countries.
Photo material and further press releases can be accessed in the press section at www.vorwerk.de.
Reproduction free of charge. Voucher copies requested.
Company History: From Carpet Factory to Internationally Successful Enterprise
In 125 years, the Vorwerk family enterprise has grown from a small carpet factory into an international corporate group, which owes its success chiefly to three things: entrepreneurial courage, innovative ideas and a personal touch.
Wuppertal, 6 May 2008 – It all started with a carpet factory. When Carl Vorwerk founded Barmer Teppichfabrik Vorwerk & Co in 1883, he laid the foundation for today’s worldwide brand. Right from the beginning, the Vorwerk founder demonstrated entrepreneurial courage as well as a readiness to act on new ideas and to open up new markets – characteristics that would define every generation to succeed him at the head of the company. Until then, quality carpets had been manufactured only in England. Now Vorwerk produced a worthy rival to the imported article at home in Germany.
In 1904, Carl Vorwerk handed over management of the company to his son-in-law, August Mittelsten Scheid, himself the offspring of an industrial family that had been in business in Barmen since 1764. The company has remained in his family’s hands up to this day. The name of “Vorwerk” was registered as a carpet trademark in 1909. By this time, the company was already a household name well beyond regional borders and growing rapidly: expanding its carpet production plant, putting up new buildings and setting up its own machine shop. New products were constantly being added to the range, which at that time included all manner of products from automobile axles to gramophone motors.
The invention of the radio triggered the collapse of the gramophone market, but a new idea came to Vorwerk’s rescue and the gramophone motor was adapted for use in a vacuum cleaner, the Kobold. In 1929, the Kobold was something of a revolution; a handy little machine – and powerful, too. But the market wasn’t yet ready for the innovation; retailers were unable to explain the advantages of the Kobold to customers. Once again, a revolutionary idea saved the day: the introduction of direct sales in Germany – possibly the most important milestone in the company’s history. Brought back from the USA in 1930 by August Mittelsten Scheid’s son Werner, this form of distribution that focuses on close contact to the customer, became the company’s hallmark and the secret of its success. Today, Vorwerk is the third-largest direct sales company in the world. And the Kobold is also closely associated with another new departure for Vorwerk: international expansion. The company founded Folletto, its first foreign company, in Italy in 1938, for the production of the Italian Kobold variant, the Folletto. The production plants and administration building in Wuppertal were largely destroyed in the war.
A new period in the company’s history began after the war, when in 1953 Dr. Erich Mittelsten Scheid assumed sole management and initiated far-reaching changes, such as extension of the product range and further expansion into international markets. In 1968, the akf bank became the first service brand to join the group. The bank was originally established to enable customers to finance the purchase of a vacuum cleaner, but rapidly developed from its small beginnings and soon the akf group was a flourishing provider of services connected with fleet leasing and the financing of mobile investment goods.
In 1969, Erich Mittelsten Scheid handed over the company reins to his nephew Jörg, who significantly shaped Vorwerk’s fortunes between 1969 and 2005 and transformed the company into a thriving international corporate group. During his time at the head of the company, the Thermomix (1971), a multi-functional kitchen appliance that also has a cooking function, HECTAS Facility Services (1974) and the Feelina Ironing System (2002) were all added to the brand portfolio. Vorwerk also continued to pursue its strategy of internationalization, setting up its first foreign branch in China in 1990. Country-based subsidiaries in eastern Europe followed. As part of its growth strategy, the Vorwerk group expanded by acquiring innovative and successful direct selling companies and, as in the case of Lux Asia Pacific (2001) and JAFRA Cosmetics in America (2004), at the same time entered further attractive markets. Dr. Jörg Mittelsten Scheid retired from the Executive Board at the end of 2005 and was appointed Chairman of the Advisory Board. In that capacity, he is still closely connected with the family enterprise.
Vorwerk celebrates its 125th anniversary in 2008. The Executive Board (comprising Achim Schwanitz, Peter Oberegger – both Managing Partners – and Wolfgang Bahlmann, Eberhard Pothmann and Jochen Sarrazin) is keeping the company on track for growth and boosting its direct selling activities. The personal touch – with the focus on customers and sales advisers alike – remains the success formula of the Vorwerk family enterprise.
About Vorwerk
The Vorwerk & Co. KG family enterprise was founded in 1883. The holding company’s registered office is located in Wuppertal, Germany; the headquarters of the various divisions are in Wollerau, Switzerland (Divisions Kobold, Thermomix, Feelina), Westlake, USA (Division JAFRA Cosmetics), Singapore (Division Lux Asia Pacific), Hamelin, Germany (Division Carpets) and Wuppertal (Division akf group, HECTAS Facility Services, Engineering).
At the head of the corporate group are Managing Partners Achim Schwanitz and Peter Oberegger. Other members of the Executive Board are Wolfgang Bahlmann (Human Resources), Eberhard Pothmann (Finance) and Jochen Sarrazin (Controlling). Vorwerk’s core business is the worldwide direct sale of high-quality products. Vorwerk is one of the “unknown giants”. Worldwide there are around 560,000 working with Vorwerk, of whom some 30,000 are sales advisers in the business of selling household appliances and more than 500,000 working for JAFRA Cosmetics. Vorwerk generates a business volume of more than 2.3 billion euros a year and operates in over 60 countries.
Photo material and further press releases can be accessed in the press section at www.vorwerk.de.
Reproduction free of charge. Voucher copies requested.
