Record year for Simon-Kucher: strongest growth in over ten years
The consultancy grew significantly more strongly than the industry in 2018, with revenue of 309 million euros (360 million US dollars). The most important revenue drivers were US business and digitalisation.
2018 was another record year for the global strategy and marketing consultancy, Simon-Kucher & Partners. Revenue grew by 23 percent over the previous year, climbing to 309 million euros (360 million US dollars). This puts Simon-Kucher’s growth rate far above the industry average, and is the firm’s strongest growth in over a decade. Moreover, for the first time in its history, the consultancy has surpassed the 300 million euro revenue threshold.
Digitalisation was again pivotal for this exceptional performance, explains CEO Dr. Georg Tacke. “Many companies have invested enormous amounts in digitalisation over the past few years. But they are seeing extremely low impact. The solution is therefore to focus on smaller, clearly defined, and highly profitable digitalisation projects, rather than just digitalisation for digitalisation’s sake. This is exactly where companies turn to us for our support and expertise,” explains Tacke.
Strong business in the US also contributed to the top result in 2018. Here Simon-Kucher’s revenue grew by a total of 35 percent. The Software/Internet/Media industry was a significant driver here. “The industry is booming, and we are profiting strongly from this development. We have recently worked with 29 unicorns (innovative start-ups and young companies with a valuation over 1 billion US dollars, such as Uber). This is likely unique for the consulting industry”, adds Tacke.
Furthermore, this above-average growth is spurred by the high demand for consulting support with digital topics, such as dynamic pricing in the tourism and leisure industries as well as the industrial Internet of Things.
The UK saw a particular boost from these industries in 2018. “It was a great year for us in the UK. This was especially true in more data driven industries where we’ve been working to build client capabilities in dynamic and digital pricing”, says Board Member & UK Managing Partner Mark Billige. “We’re looking forward to another strong year building on this base and growing our office in the UK. In addition to that, we’ve recently been selected as finalists in 3 categories at the Management Consultancies Association 2019 Awards, a great result for everyone involved.”
Business in China has also been very successful last year, and has grown by more than 40 percent over 2017. “China is becoming increasingly important for the international consulting market. At the moment the share is still low – but if the positive trend seen in recent years continues, China will soon become a permanent fixture for the industry,” says Tacke.
The forecast for 2019 is equally optimistic, with a revenue target of 350 million euros (400 million US dollars). The consultancy will also significantly strengthen its manpower: In 2019 Simon-Kucher is planning to hire over 400 new associates. The company currently employs around1,300 associates worldwide.