BSH Home Appliances Corporation Executives Share Four Key Trends Reshaping Real Estate
Innovation is a driving force in the thriving multifamily market, and BSH Home Appliances Corporation is equipped to help builders exceed expectations. With three brands under its umbrella – ultra-luxury Gaggenau, luxury Thermador, and luxury mass premium Bosch – the company caters to developers who are looking for top-tier quality, says Charles Cote, Western Regional Builder Sales Manager. “We have a unique offering with our wide spectrum of products, which is unmatched by our competitors,” Cote says, adding that the brand’s cachet is finding a welcome audience. “Builders know we tailor our products to a sophisticated clientele so they aren’t dissuaded by our higher price points in today’s increasingly upscale properties.”
This movement toward more bespoke developments is just one of the trends BSH Home Appliances Corporation’s builder sales managers are observing. The Real Deal sat down with Phyllis Overstreet, Builder Sales Manager for Texas and Louisiana, and John Ulitsch, Builder Sales Manager in Northern California and Hawaii, along with Cote, to explore some of these themes.
Trend 1: A boom in the prestige rental market
With an extensive background in the Texas market, Overstreet has noticed recent dramatic shifts. In addition to rapid growth despite the potential economic slowdown, she’s seen a notable flight to quality, even in the rental market. That’s leading developers to embrace BSH’s premium brands, choosing them over cheaper names which had traditionally been used to outfit rental buildings.
The reason behind the change is clear, Overstreet says. “People aren’t renting only because they have to, but because they are choosing to, which means they are looking for more prestigious brands in rentals.” She has about 15 such projects in the works availing themselves of the full line of BSH products, with Bosch in the lower floors and Thermador at the top. Another high-end project she’s recently specified is Four Seasons Private Residences Lake Austin, which is comprised of 190 private residences whose master chef’s kitchens will be completely outfitted in Gaggenau and Thermador.
“While appliances may represent a small part of the overall property, there’s no arguing that it’s one of the most noteworthy parts,” she says. “The kitchen is the most branded room in a home, which allows it to really make an impression. When potential renters see that the builder stepped it up with these sleek Bosch, Gaggenau and Thermador appliances, it just sets the mood for the entire project.”
Ulitsch echoes this shift, mentioning that while he was initially concerned as the market appeared to turn, he quickly noticed developers having success in higher-end multifamily projects. “They understand not just the value inherent in a better brand, but that we will support them throughout all stages of the project. They’re willing to spend more on their appliances because they feel confident we will stick behind them along the way, which is particularly crucial given that projects can take several years to come to fruition.”
Trend 2: Bespoke service addresses builder and customer needs
On that note, builders are gravitating toward the elevated experience BSH provides every step of the way. The company has built an impeccable reputation for catering to builders’ needs with an ethos of service that matches its deluxe products. Overstreet believes the company sets itself apart through top-tier service. “There’s no one else in the industry that makes the process turnkey, starting at the very beginning all the way to the end,” she says.
She prefers to get involved early on, meeting with designers and architects as they make initial decisions on the kitchen layout. Then they remain connected throughout the project, even after a customer moves in. “For example, we’ll do FaceTime tutorials for the end consumer, teaching new renters how to load their dishwasher or use the steam oven.”
One surprise perk they deploy is holding luxury appliance workshops to train the developers, architects and builder sales team on the ins and outs of the product. They’ll bring key stakeholders to BSH Experience and Design Centers (EDCs) located in key markets for hands-on demonstrations. “It’s not like they come in and just listen to us present a PowerPoint,” Overstreet assures. “We put them in aprons, and they start cooking. It’s an unforgettable team-building experience and they leave our showroom with a new appreciation for the products we offer.”
They also offer a VIP service program where factory technicians do pre-walks even before the drywall is in to confirm the location of the plumbing and the electrical on the first floor. “We don’t want the builder to get four floors in and realize they have to rip out all the water lines because they put them up too high,” she says. Once the project is complete, the factory techs do post walks on every single unit. They inspect for damages or faulty usage installation, making note of every model and serial number that needs attention.
The BSH team even helps with marketing, Overstreet says, mentioning builder brochures that are co-branded specifically for every project. In one recent property, she hosted a factory chef in the common area who cooked for consumers while she demonstrated the appliances.
The reason for this attention to detail is very clear, Cote says. “We don’t just see this one project, but the next 10. We want a long-term partnership so we do what’s needed to build a successful relationship.
Cote cites Hawaii as a market where they’ve been gaining additional traction and share, largely because of Ulitsch’s commitment to communication and education. “He’s taken the time to become invested in the market – to really listen to the developers’ opportunities and pain points and work together to identify the right product offering that helps them accomplish their goals,” Cote says.
Trend 3: Emphasizing sustainability
BSH Home Appliances Corporation was an early adopter of climate-friendly practices. The entire corporation worldwide has been carbon-neutral since 2020 and aims for 100-percent green electricity at all of its sites by 2030. This impressive environmental commitment resonates with builders, Ulitsch says.
“The developers I work with want to make sure that they’re protecting the planet, and they use these climate-friendly claims as a marketing benefit,” he says. “They want to partner with suppliers like BSH that are dedicated to forward-thinking, environmentally sound practices, which they tout in their marketing.”
Some regions have regulations in place that support the use of more sustainable options, such as California, which will require all new construction to use electric-powered cooking products. This direction caused some initial panic, which Ulitsch was able to assuage. “We adopted a consulting role with our partners to reassure them that we have excellent product options that will offer great performance to their customer and actually serve as an upgrade.”
Other areas are sure to follow suit, positioning BSH well given its innovation in induction technology, which makes it perfect for high-end projects. The team predicts induction cooking will continue to be a coveted technology in the kitchen of today and tomorrow, an area when BSH excels. “As pioneers, we are the ideal partner to help educate their consumers on the benefits of this technology,” Ulitsch says.
Trend 4: Building for a Cause
The final trend revolves around builders’ flourishing desire to give back and make a positive impact on the world through charitable efforts. BSH Home Appliances Corporation’s philanthropic affiliations are well aligned and present another element their builder partners can feel good about promoting, Ulitsch notes. One special feature is the ownership structure of the Bosch Group. The Robert Bosch Stiftung GmbH, a charitable foundation, holds around 94 percent of the shares in Robert Bosch GmbH and is financed by dividends. As a charitable Foundation, it does not have any entrepreneurial activities. It has transferred the voting rights of the shares to Robert Bosch Industrietreuhand KG, an industrial trust. Since its establishment in 1964, the Robert Bosch Stiftung has spent around 2.2 billion euros on its charitable work.
Another of the company’s highest-profile integrations is with St. Jude Children’s Research Hospital, involving approximately 52 houses each year. They partner with builders who raffle them off and 100% of the proceeds are donated to further support the kids of St. Jude. “We donate the appliances for every one of those houses every year, giving builders access to the entire portfolio,” says Overstreet.
These philanthropic endeavors are just one of the many ways that BSH Home Appliances Corporation shows its commitment to its builder partners, as well as the consumers who will eventually live in and enjoy the homes.
“We value relationships,” Cote says. “Our clients choose to work with a company they feel comfortable with and trust, but they also prioritize the people they want to work with, and that’s definitely part of our success story.”
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