As we step into our roles as Co-CEOs of Simon-Kucher, we reflect on the journey that brought the company to where it is today. Our firm’s legacy is built on a foundation of science, innovation, and a commitment to creating value for our clients. It is with this spirit that we embrace the future, one filled with opportunities to redefine growth.
This year marks 40 years of growth and innovation for Simon-Kucher. Looking back, what are you most proud of?
We’re proud to have been a part of Simon-Kucher’s growth for over 20 years. It’s been incredible to witness our firm’s evolution into the world’s leading pricing and growth specialists while staying true to our roots in science and innovation.
Simon-Kucher started in 1985 as a university spinoff in Germany. Today, we’re proud to see our firm established as a fast-growing global consultancy, operating in 30+ countries with over 2,000 people. This journey reflects how we’ve spent decades mastering pricing and growth strategies, and also our commitment to continuous innovation and client success.
How have growth strategies evolved over the past four decades, and in what ways has Simon-Kucher ensured clients remain central in this journey?
It’s inevitable that market forces, technological innovation, and shifting consumer behaviors have reshaped the business world. But interestingly, many of our clients’ questions have remained fundamentally aligned with the same core goals: How do we achieve sustainable profitable growth? How can we thrive in changing economic and market environments? What untapped opportunities should we pursue?
We see this is a moment to explore the intersection of continuity and transformation: The enduring growth principles that have guided us since the beginning and the innovations that keep us ahead in a market that is always in flux.
Pricing is synonymous with the identity of Simon-Kucher. How has pricing solidified its role as a critical driver of growth over the decades?
If we have to encapsulate our firm’s growth evolution, it starts (and continues) with pricing. We are one of the earliest pioneers in the industry to focus on pricing as a strategic growth lever.
In the 80s and early 90s, growth strategies were still predominantly oriented around products, brands and market share. For many businesses, the goal was to capture as much market share as possible, expand production capacity, and dominate the market. Companies strongly pursued economies of scale, prioritizing volume and operational efficiency as their primary success levers.
Internationalization brought new opportunities for global expansion, allowing brands and companies to build global presence across borders and establish themselves as global players. With markets maturing, the focus shifted from a market share to a profitability mindset and companies recognized the critical trade-off between volume and price.
Pricing became extremely important for success. This meant managing pricing actively and systematically, just like any other commercial success lever. Instead of reactively competing on price, businesses increasingly understood the importance of value-based pricing. It wasn’t about competitor prices or target margins anymore but about setting prices in line with customer value perceptions and willingness to pay. Growth strategies began to embrace a more balanced approach, ensuring profitable growth without sacrificing competitiveness.
How did the shift from product to service- and solution-based offerings change growth strategies?
Over time and particularly in recent years, companies move beyond product-centric commercial models and increasingly transition to service- and solution-based offerings. This shift is driven by an increased emphasis on portfolio leverage and business model innovation.
As the market environment evolves, it becomes clear to firms that offering holistic customer solutions drives new growth opportunities by strengthening customer relationships and differentiating from competition. Many are innovating their business and revenue models which helps them better serve and adapt to changing customer needs and tap into new growth opportunities.
What role has digitalization played in helping businesses adapt and grow?
Digitalization is further transforming growth strategies – it facilitates better data-driven commercial decisions, more personalized customer interactions, and new opportunities for business models innovation. At Simon-Kucher, digital tools have become integral to understanding customer needs and behaviors, solving commercial business challenges, and optimizing go-to-market models.
We experience first-hand how as the pace of change accelerated, companies that embrace digital innovation are gaining significant and lasting competitive advantages.
What does growth look in the current environment?
Let’s be honest: The current business climate is very challenging. Today, the tech developments are moving extremely fast, consumer behavior is always changing, and geopolitical disruptions are adding to a volatile business environment.
But amid all these changes, one principle remains constant: Growth starts and ends with the customer.
Too often, businesses fall into the trap of internal belief systems. They base growth strategies on assumptions rather than anticipating future customer needs or closely monitoring market signals. Companies that fail to quantify their markets – by segment, geography, and value – risk missing the mark in defining their propositions, channels, and pricing strategies.
After 40 years, Simon-Kucher firmly believes that succeeding in global markets requires balancing the tension between global consistency and local flexibility. We believe that to stay on top, companies must focus on efficiency (through economies of scale) and work hard to remain relevant to diverse customer bases (through localization). This involves adapting strategies to cultural, economic, and market-specific conditions, ensuring their offerings resonate across regions.
Empowering local teams to make informed decisions fosters responsiveness, while technology and real-time data insights enable companies to predict trends and refine strategies. Through customer-centric approaches, organizations can differentiate themselves, counter low-cost competition, and thrive in the face of market challenges.
How would you describe Simon-Kucher’s way of “Unlocking Better Growth”?
Not all growth is created equal. At Simon-Kucher, we unlock a better kind of growth – one that is sustainable, value-driven, and rooted in what customers truly want and value.
Our approach optimizes every lever of commercial strategy – product, price, innovation, marketing, and sales – based on deep customer insights. This ensures that our clients achieve growth that creates virtuous cycles of loyalty, advocacy, and trust.
By focusing on long-term, sustainable growth, we help businesses move beyond short-term, finance-driven actions that can harm their future. Our purpose is to create value and opportunities not just for businesses, but for their customers, stakeholders, and society at large.
We partner with clients to thoroughly understand the dynamics of their customer base: Who they are, what they need, and, critically, what they are willing to pay.
What does the future of growth look like for Simon-Kucher as it continues to evolve and expand its focus?
As we look to the future, Simon-Kucher is committed to driving growth not only through our established expertise in commercial strategy and pricing but also by expanding into complementary commercial adjacencies. This means further deepening our capabilities in areas like digital transformation, sales excellence, and sustainability strategies to address the evolving needs of our clients and their customers.
The landscape of business is becoming increasingly interconnected, and companies require more holistic solutions to stay competitive. By leveraging advanced technologies like AI and data analytics, we aim to provide our clients with deeper insights and more innovative approaches to growth. This will allow us to address new challenges, such as navigating emerging markets, embracing circular economies, and building resilience against global uncertainties.
Our goal is to be more than a consultancy; we want to be a trusted commercial advisor and partner, empowering businesses to achieve their full potential across every facet of their operations. With a focus on innovation, collaboration, and impact, we are excited to shape the next 40 years of growth together with our clients and teams.
