FMCE Exchange

Company History

In 1982 Bernhard Vehns opened an innovative high-end consumer electronics retail store in Munich, Germany. This marked the very beginning of the success of today’s FMCE enterprise.

By 1986, the business had expanded and took on the company name HIFI COMPONENTS BERNHARD VEHNS GmbH. By 1991, HIFI COMPONENTS were able to offer mail order trade, aimed at customers throughout the German market with the first HIFI COMPONENTS’ catalogue. Home shopping and home delivery made shopping with HIFI COMPONENTS more attractive for customers.

In 1993, HIFI COMPONENTS opened its doors on Berlin’s most famous shopping street - the Ku'damm in central Berlin. Only a year later the next HIFI COMPONENTS store opened in the heart of Munich (Oberanger 42). While the stores and classic mail order trade flourished, Bernhard Vehns sensed the growing potential of online shopping. In 1996, HIFICOMPONENTS.DE was launched to make the most of the growing importance of the internet. In the following years HIFI COMPONENTS established itself as the German market leader in consumer electronics online trading. The implementation of the innovative bricks and clicks concept offered customers further ease in ordering, as they were able to conveniently access both the mail order catalogues and individual portfolios of regional stores online. The business that had started as a retail store in 1982 had become one of the pioneers in the field of online trading for premium consumer electronics in Germany.

Nationwide distribution developed quickly. In order to meet the steadily increasing needs within the market, a larger logistics center opened in Hanover in 2003. Due to the growing number of European and international customers, the website was completely overhauled and redesigned in 2005. The new online portal led to the internationalization of the brand name HIFI COMPONENTS. After a few months HIFI COMPONENTS became renowned throughout Europe. Subsequently, the company further concentrated on specializing in the following areas: sales, logistics and customer service.

In 2006 HIFICOMPONENTS.DE re-launched with a new focus on the European market. Due to HIFI COMPONENTS' European-wide professionalism, innovation and importance of customer satisfaction, the demand for merchandise increased considerably within a very short time. The office space was increased and staff members with multilingual skills were employed, in order to meet the growing demand.

HIFI COMPONENTS' offices were relocated to a new multi-storey office building, providing high quality infrastructure, the best technical equipment, and premium information technology structures in the heart of Munich. In order to meet customer demands, HIFI COMPONENTS expanded its purchasing team and simultaneously implemented further quality controls.
The expanding retail stores, combined with the bricks and clicks concept, and high-quality services built a solid basis for the future growth of HIFI COMPONENTS.

At this point, HIFI COMPONENTS recognized online trading as the channel holding the highest growth potential. Nevertheless, the needs, complexities, and challenges in this industry increased on an annual basis. This led to daily obstacles concerning pricing policy, sudden price cuts, ruinous competition, pressure from end customers, supply shortages, stock keeping, legal issues etc.

HIFI COMPONENTS' strong market sensing ability enabled the company to take the lead once again. It is not pure luck; rather it’s about taking the right decisions at the right time.

HIFI COMPONENTS decided to close the online trade section as the top-selling channel, in order to analyze the specific challenges and requirements that online retailers face, and have to cope with, on a daily basis. Together with experts from various divisions, HIFI COMPONENTS GmbH established a one-of-a-kind success concept that merges the individual requirements of the companies involved. This integrated solution was the basis for a new milestone in the company’s history.

The brand name HIFI COMPONENTS is well known for professionalism, quality, and service throughout Europe and has been known for this since its early online trading days. The HIFI COMPONENTS business management meets the demands and requests of many German and international corporate groups, as well as medium-sized enterprises, and the wholesale portal FMCE Exchange helped to further develop the successful company. All relevant channels and retail structures were thus utilized. More than 500 partners have so far been invited to benefit from HIFI COMPONENTS’ know-how. Partners can now serve their markets independently, and free from additional requirements, without facing the typical market difficulties. Considerations like liquidity, pricing, or stock-keeping are no longer issues.

Due to the swift expansion, new business segments are developed: marketing of consumer electronics (LCD and plasma televisions, blu-rays, camcorders, hifi systems, game consoles), photo equipment (D-SLR and digital compact cameras), telecommunication devices (GSM), and small domestic appliances (high-end coffee machines, vacuum-cleaning robots, kitchen machines, lifestyle products and personal care articles).

In October 2007, HIFI COMPONENTS BERNHARD VEHNS GmbH was renamed HIFI COMPONENTS GmbH, to focus on further expansions. At this point, it was the holding company of three businesses and its complex capital structure is based on a strong rating.

The degree of brand awareness for FMCE Exchange constantly expanded and before long, the wholesale channel had become the most important and solid basis of the company. The success formula is based on the market leader’s long experience in e-commerce. For this reason, HIFI COMPONENTS GmbH is able to quickly recognize and meet customer needs. The FMCE Exchange service package was synchronized with customer demands and challenges. This enables an improved positioning in the specific market segment within a short time span.

The year 2008 was, despite the financial crisis, the overall regression, and the closure of the online retail sector, a highly successful year for HIFI COMPONENTS GmbH with strong sales increases.
In August 2009, FM Consumer Electronics GmbH was launched, and at the same time, the brand "FMCE Exchange" was registered as a European Trade Mark.

Through continuous adjustments to the growing requirements of the fast moving consumer electronics market, and a steady increase of business partners, the progressive and innovative group of companies was able to keep its position as one of the leading and most prestigious traders in Europe in 2010 and 2011.