40 years of Better Growth in industrials

Looking back on 40 years of growth

For Simon-Kucher, forty years is not just a number but a journey of people, ideas, challenges, and joint achievements.

Our work with industrial firms has been at the heart of this journey. From manufacturing giants to “Hidden Champions” – a term that we first defined at Simon-Kucher in 1990 – we’ve stood side by side with organizations navigating seismic shifts in their industries.

These 40 years haven’t unfolded in a vacuum and growth hasn’t been a straight path. It has been a dynamic evolution, marked by changing needs, bold decisions, and constant learning. Our industrials experts have captured this journey in a simple but meaningful framework, one that not only reflects where we’ve been but also hints at where we’re headed.

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Three phases of growth: Building the foundation together

Looking back, we see three distinct phases of growth - Smarter, Broader, and Faster - that have defined our evolution in the industrials sector. Each phase feels like a chapter in a larger story, one that resonates not just with us but with our clients.

Value extraction (1985-2005): The era of global pricing experts
Volume expansion (1995–2020): Beyond pricing
Accelerated efficiency (2005–today): Redefining growth

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Value extraction (1985-2005): The era of global pricing experts

When you hear “Global Pricing Experts,” one name comes to mind: Simon-Kucher. It’s a reputation we’ve earned through decades of pioneering work, stretching back to our very first days as a firm. Helping companies truly understand the value they bring to the market, and ensuring they capture their fair share of that value, has been at the heart of our mission since day one.

Back in this era, we were doing groundbreaking work. We brought academic rigor into the business world, introducing and applying concepts like the Van Westendorp and Gabor-Granger price tests. But we didn’t stop there – we pushed boundaries to new heights with advanced conjoint analysis, even when that meant using primitive tools by today’s standards: Early CPU software and yes, paper mailings!

These were the days when “data collection” sometimes meant waiting weeks for stacks of surveys to come back by post.

Did You Know? Simon-Kucher was founded in 1985 by Hermann Simon, Eckhard Kucher, and Karl-Heinz Sebastian in Bonn, Germany. The firm began as a small academic consulting venture, inspired by a shared passion for applying rigorous, data-driven approaches to solve real-world business problems. Learn more about our legacy here.

This was an age of discovery, all about diving deep into the concept of willingness to pay. We worked at a granular level to identify how customers perceived value and helped companies realign their pricing strategies, whether it was setting the right price point or restructuring the entire pricing model. The goal was always the same: To achieve a better balance in how value was shared between buyers and sellers.

Even as technologies and industries have evolved, this work remains timeless. Today, companies across the globe continue to grapple with pricing, often underestimating the importance of a systematic approach to understanding their value. Pricing continues to be the strongest profit lever, with well-executed strategies ensuring direct margin impact faster than increasing volume will. Yet more often than not, companies underprice their products, leaving potential value on the table.

This era wasn’t just the foundation of Simon-Kucher’s story; it was the foundation of modern pricing strategy. The lessons learned and methods developed during these years still guide businesses today, proving that understanding value is more than a phase, it’s a mindset.

Simon-Kucher is the world’s leading pricing consultancy."

- The Economist, 2005

Volume expansion (1995–2020): Beyond pricing

As the industrial landscape evolved and markets expanded globally, so did Simon-Kucher’s mission. Between 1995 and 2020, the concept of growth took on new dimensions, not just in profitability, but in scale, reach, and impact. This was the era of volume expansion, a time when businesses sought to grow their customer base, enter new markets, and maximize potential. For Simon-Kucher, it was a period defined by bold thinking and innovative strategies to help our clients unlock this potential.

Embracing digital transformation

Remember the rise of the internet? The period from 1995 to 2020 saw one of the most transformative shifts in business history. For industrial firms, the internet disrupted traditional go-to-market strategies, sparked entirely new business models, and fundamentally reshaped how companies reached and engaged customers. Suddenly, e-commerce platforms became a primary sales channel, businesses moved away from transactional selling to value-based approaches, and digital tools enabled firms to scale in ways never before possible.

As digital technology evolved, so did Simon-Kucher. Instead of painstakingly mailing out surveys and waiting weeks for responses, we were among the first consultancies to embrace digital methods for understanding customer behavior, using advanced analytics and online tools to deliver insights faster and more effectively. Today, with Simon-Kucher Engine and Simon-Kucher Elevate, we provide clients with specialized software solutions to combine technology, data, and creativity with commercial consulting expertise and grow in this competitive digital landscape.

Monetizing innovation

One of the hallmarks of this era was monetizing innovation, an approach we pioneered to bridge the gap between creativity and commercial success. Industrial companies faced the challenge of transforming breakthrough ideas into tangible revenue streams. Whether it was launching new products, entering untapped markets, or repositioning existing offerings, we worked with clients to ensure that every innovation delivered measurable results. We helped companies go beyond just launching a product, finding the perfect combination of pricing, positioning, and messaging to maximize its impact.

Did You Know? Our 2014 Global Pricing Study revealed that 55 percent of all new products flop, and almost 75% of companies admitted that none of their new products fulfilled profit targets. Despite this, new products remained the best means of achieving higher market prices, emphasizing the importance of well-executed monetization strategies.

Today, our most recent Global Pricing Study shows that on average 45% of innovations reach expected profit targets. Coincidence? Or the impact of a little Monetizing Innovation magic?

Source: Simon-Kucher press release, Simon-Kucher Global Pricing Study 2024

Expanding horizons: New markets, new opportunities

During this time, globalization brought immense opportunities and challenges for industrial firms. We partnered with clients to navigate complex market entries and drive targeted M&A strategies through rigorous analysis, leveraging our Transaction Services and Private Equity (TSPE) service line. We also provided Private Equity (PE) investment strategy support, helping clients expand into Asia, Eastern Europe, and beyond through acquisitions and organic expansion. For many, the key was understanding not just how to sell more but how to sell smarter. This meant tailoring strategies to regional dynamics, understanding local buyer behaviors, and refining go-to-market models to drive sustained growth.

Our expertise also extended to subscription models and recurring revenue strategies, which began gaining traction. For industrial companies traditionally reliant on one-time sales, this shift was transformative. We helped businesses transition to models that encouraged long-term relationships with customers, boosting both retention and profitability.

“If industrials know how to do one thing, it’s how to make products and sell them one at a time. However, we will see a fundamental shift toward digital-driven service offerings for industrial businesses. This will enable charging customers in ways more directly correlated to the value provided—whether it’s on a per-user, per-month, or consumption-based model.”

- Adam Echter, 2019

Did You Know? In 2018 we hit growth figures of 23%, a rate far above the industry average. This double-digit growth was spurred by the high demand for consulting support with digital topics such as dynamic pricing, as well as the industrial Internet of Things.

By 2020, this journey of volume expansion had culminated in a more sophisticated understanding of growth. It was no longer just about selling more units but about building lasting relationships, entering new territories with purpose, and turning every innovation into a scalable opportunity. This era proved that expansion wasn’t just a phase for Simon-Kucher – it was a mindset. With the right strategy, growth becomes more than just a goal, but a way of thinking that transforms businesses and markets alike.

Simon-Kucher shows companies how to carefully identify target markets and build products for target customers with specific prices they would be willing to pay for the innovation, as if it were already real"

- Philip Kotler, S.C. Johnson & Son Distinguished Professor of International Marketing, Kellogg Graduate School of Management, 2016, Monetizing Innovation: How Smart Companies Design the Product Around the Price.

Accelerated efficiency (2005–today): Redefining growth

The 2008 Global Financial Crisis reshaped industries, forcing companies—especially in the industrial sector—to rethink their business models. Cost-cutting was no longer enough; firms had to optimize pricing, streamline operations, and find new ways to create value amidst economic volatility. Those that adapted emerged stronger, with a sharper focus on profitable growth rather than growth at all costs.

Then came another major shock: COVID-19. The pandemic, combined with rising geopolitical tensions, exposed vulnerabilities in global supply chains. Governments, recognizing the risks of over-reliance on foreign production, turned toward protectionist policies, investing in domestic industries such as semiconductor manufacturing and implementing tariffs to safeguard national interests. In this rapidly shifting landscape, businesses need agility and resilience, not just efficiency.

Every 20 years, a new challenge reshapes the global economy. And each time, Simon-Kucher helps companies not just survive—but monetize and thrive.

Did you know? Our B2B Commercial Trends Study 2023 revealed that around 50% of companies lacked plans to counter economic downturns, underscoring the importance of proactive strategies in volatile markets.

Source: Understanding the growth opportunity presented by volatile times

From productivity to purpose.

Industrial firms have long faced pressure to do more with less, but the challenges of the past two decades have redefined what that means. Rising raw material costs, increasing global competition, and the urgency of sustainability have forced companies to look inward, scrutinizing their operations to find efficiencies without sacrificing quality or innovation.

At Simon-Kucher, we’ve been helping our clients reimagine what efficiency looks like. This work has ranged from streamlining pricing and sales processes to developing comprehensive strategies that optimize supply chains and improve cost structures. Whether it’s introducing leaner pricing models, aligning incentives across teams, or finding ways to reduce waste, our focus has been on creating systems that support long-term growth.

Sustainability as a driver of efficiency

Efficiency optimization in today’s world is inseparable from sustainability. Companies are increasingly focused on reducing their carbon footprints and aligning with ESG goals while maintaining profitability. Simon-Kucher has been at the forefront of this shift, helping industrials firms integrate sustainable practices into their operations without compromising on growth. From redesigning product portfolios to exploring new business models like circular economies, we’ve shown that efficiency and sustainability can go hand in hand.

"The fatal disconnect that is killing sustainability doesn’t exist between what customers say and what they do. It exists between how companies view consumers and how consumers view themselves. We refer to this disconnect as the green mirage."

- Nicolai Broby Eckert, 2024

Read The Demand Revolution to discover how businesses today can balance the dual pressures of meeting customer needs and regulatory demands while pursuing sustainability.

Did you know?

74%
of European industrials companies aim to reach net-zero by 2030,compared to 59% in North America

˃50%
of industrial companies struggle to monetize their sustainability initiatives

Source: Commercializing B2B sustainability

Harnessing the power of Generative AI

One of the most exciting advancements of this era has been the rise of GenAI, unlocking new levels of efficiency by automating processes, improving decision-making, and driving innovation. We’ve helped companies use AI to refine demand forecasting, optimize production schedules, and personalize customer experiences at scale. GenAI also plays a role in revolutionizing pricing, allowing for real-time adjustments based on market trends and customer behavior. By leveraging these tools, our clients have been able to achieve not just incremental improvements but step-change efficiencies that push their growth, innovate their commercial strategies, and redefine their operations.

Did you know? Our B2B Sales Survey revealed that 44% of top-performing wholesalers using AI for customer lifetime value prediction and lead qualification, significantly boosting sales efficiency and streamlining customer acquisition. 30% of top manufacturers leverage AI for dynamic pricing and customer lifetime value (CLTV) prediction, improving alignment with customer needs and boosting sales effectiveness.

Source: B2B sales study

Efficiency as the foundation of Better Growth

Today, efficiency optimization is a mindset that underpins everything we do. It’s about using every resource wisely, whether that’s time, money, or technology. At Simon-Kucher, we create systems that don’t just work harder but work smarter, enabling companies to grow in a way that’s both sustainable and scalable.

From reflection to action: Achieving Better Growth

Today, we stand on the shoulders of these phases. They’ve taught us that growth goes beyond size or speed to create real value, innovate with intent, and build a legacy that matters. Better Growth is our guiding principle for the decade ahead, evolving together with our clients, partners, and markets to meet the challenges of a changing world.

This isn’t just Simon-Kucher’s story. It’s about all businesses who believe in growth that’s smarter, bolder, and better.

But what does “Better Growth” really mean for an industrials company today? We’ve developed a practical framework that helps businesses focus on three critical areas:

Together, these three dimensions form the foundation for accelerating growth that is not only impactful but sustainable in the long run. Through this actionable framework, you’ll discover how to leverage the same principles and strategies that have driven Simon-Kucher’s success over the past 40 years.

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