GFK and NPD Step Up Cooperation

The Non-Food Tracking division of the GfK Group and The NPD Group are formalizing and gearing up their 20 year long cooperation specializing in continuous retail research in consumer electronics markets.

In future, the cooperation will be regulated globally by three holding companies and a Coordination Board, as described below.

Firstly, a new holding company will be set up to coordinate business in Europe, the Middle East and Asia. GfK and NPD will offer continuous retail research for consumer electronics, including in the IT, entertainment, photographic, domestic appliances, home and office telecoms sectors will be offered under the auspices of a holding company recently established in Germany in the following regions: Northern, Western and Southern Europe, Central and Eastern Europe, the Middle East, South and East Asia and Japan. GfK and NPD will be contributing their shareholdings in the individual subsidiaries in these regions. GfK has a 95 per cent shareholding in the holding company, with The NPD Group holding five per cent of the shares.

Secondly, NPD Intelect will coordinate business in the USA, Canada and Mexico. The NPD Group holds 75 per cent of the shares in the company, with the remaining 25 per cent held by the GfK Group. NPD Intelect is anticipating sales totalling EUR 45 million for 2003.

Thirdly, a new holding company will be set up for Latin American business, to coordinate activities in Brazil, Chile and Argentina. GfK has a 65 per cent stake in the company, with the other 35 per cent of the shares being held by The NPD Group.

Finally, GfK Group and The NPD Group have also established a global Coordination Board with the purpose of developing global business policy, coordinating the relationship between clients and partners in the regional holdings concerned and evolving a global service concept. The Coordination Board comprises the following members: Bert Groot Enzerink, Chairman of the GfK Asia Board and member of the European GfK Non Food Board, Dr. Gérard Hermet, Member of the GfK executive Board and Chairman of the GfK Non-Food Tracking Devision and Thomas Lynch, President of Intelect and CFO of the The NPD Group.

Hermet commented on the increased level of cooperation between GfK and NPD as follows: "This decision marks a significant step for the GfK Group, as well as The NPD Group. It strengthens our leading position globally and means that we are well positioned in Latin America for the future - an important cornerstone in our Non-Food Tracking strategy'. Tod Johnson, CEO of NPD, added: "The resources and global expertise of NPD and GfK will make a considerable contribution towards ensuring the speedy development of our NPD Intelect business'.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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