CUBE: Bathroom September 2007 - BRG Building Solutions · 2012. 8. 24. · without bathroom and...

China Japan's INAX to Boost Sales of Bathroom Products in ChinaFrance New Independent Wholesaler's Buying Group TIMOLIAIndia India to Become Hub for Sanitary WareIndia BCCL Acquires up 16% in LIBERTY WHITEWAREPoland CERSANIT ActivitiesRussia SANITEC to Expand Business in RussiaSouth Africa ITALTILE Slow to Ride Boom in PropertySweden AHLSELL Opens Representative Office in ChinaSwitzerland GEBERIT Sees Mixed H2 Development in EuropeSwitzerland ROCA Acquires SIMILOR GROUPThailand AMERICAN STANDARD Aims for 'Economy' SegmentTurkey ECZACIBASI Construction Group Grow Through AcquisitionsUSA MASCO Corporation Reports Second Quarter Results

Topics

Bathroom Newsletter September 07

International Market Strategy

International strategic market research and consultancy on building product and related markets

Europe The European Bathroom Products in 2006

Monthly Special

BRG Consult NewsletterBathroom September 2007

China: Japan's INAX to Boost Sales of Bathroom Products in ChinaINAX CORP. will bolster its marketing of toilets and other sanitary products in China as it aims to tap that country's construction boom. INAX recently opened agencies to market its toilets and other upscale products in Xian (Shaanxi Province), Chengdu (Sichuan Province), and Dalian (Liaoning Province). The company plans to set up such agencies in 12 cities by the end of next March, up fromseven at present.

INAX is aggressively establishing sales agencies because apartments in China are usually sold without bathroom and other fixtures, making it critical for their manufacturers to reach out to consumers directly.

Source: Asia In Focus

France: New Independent Wholesaler's Buying Group TIMOLIABIGMAT, GEDIMAT and SOCODA have joined together to create TIMOLIA, the first buying group forindependent wholesalers. The Group will be specialised in independent wholesaling of building materials, but also hardware and professional tools, industrial supplies, electricity, sanitary and heating products, interior decoration and metallic products. Each company will keep its brand name and will remain autonomous in terms of commercial activities, marketing and business development.

Source: BatiActu

India: India to Become Hub for Sanitary WareIndia is likely to become the manufacturing hub for international sanitaryware brands. International brands such as ROCA, KOHLER and H&R JOHNSON are planning to expand their operations in India. The facilities, besides supplying the global market, will cater for the increasing consumer demand within India for branded and premium sanitary ware products. About Rs1,000 crore will be invested over a period of two years in the Indian sanutary ware market valued at Rs2,500 crore.

Source: INDIA BUSINESS INSIGHT

2


India: BCCL Acquires up 16% in LIBERTY WHITEWAREBENNETT, COLEMAN & COMPANY (BCCL) has acquired a 16% stake in LIBERTY WHITEWARE (LWL), a LIBERTY GROUP company engaged in manufacturing and marketing bathroom products and accessories made of ceramics.

The move is believed to help the company to increase its share in the Indian market for premium ceramic sanitary ware which is estimated to be around 2.5 lakh pieces annually and is growing at therate of 25-30% every year.

At present, this segment is mostly dominated by multi national firms like AMERICAN STANDARD, TOTO, COTTO, VILLEROY & BOCH, DURAVIT and KERAMAG. Recently, controlling stake in the largest Indian ceramic company, PARRYWARE, was acquired by the ROCA GROUP of Spain. America's leading ceramic brand, KOHLER, has also announced plans to set a plant in Gujarat to produce 2 million pieces per year.

LIBERTY has set up a manufacturing facility with an investment of Rs 100 crore at Neemrana, Rajasthan. It has a capacity to produce 3 lakh pieces of ceramic sanitary wares. This is expected tobe doubled by 2009. Machinery and the technical expertise for this production facility is imported from the world's largest ceramic plant producer, SACMI of Italy.

The products are marketed under the brand name BEACH and has five variants, BEACH Jumeira, BEACH Marina, BEACH Paradise, BEACH Gold Coast and BEACH Hawaii. These products are nowavailable in key cities of India through a network of about 40 dealers and the company.

The company plans to enlarge its distributions network and reach out to 100 cities through 150 dealers in the next 12 months. LIBERTY also plans to retail its products through company owned concept stores, franchise outlets and in a shop in shop arrangement with Home Town.

Source: Economic Times (India)

3


Poland: CERSANIT ActivitiesCERSANIT to Complete its New Plant in Ukraine

Polish CERSANIT S.A. plans to complete the building of a sanitary ware and ceramic tiles plant in thesettlement of Chyzhovka in Zhytomyr region by November 2007.

CERSANIT INVEST is a wholly owned Ukrainian subsidiary of the CERSANIT GROUP, the largest Polish manufacturer and distributor of bathroom fittings and ceramic tiles.

The company has been operating in Ukraine since 1998.

CERSANIT Q2 Net Profit Falls 12%, Sales Double

Poland's largest sanitary ware producer CERSANIT reported a 12% fall in second-quarter net profit asasset write-downs wiped out gains from surging sales on the back of a real estate boom.

Net profit at CERSANIT, controlled by Poland's richest man Michal Solowow, fell to 37.5 million zlotysfrom 42.7 million a year earlier. The revenues almost doubled year-on-year to 385.8 million zlotys after many Poles bought new apartments boosting demand for tiles, bathtubs and washbasins.

Source: Ukraine Business Daily

4


Russia: SANITEC to Expand Business in RussiaOn 28 June 2007, the SANITEC GROUP signed a Joint Venture agreement to acquire 60% of the Russian ceramics manufacturer DELLA, company 40 km east of Moscow.

The DELLA factory is two years old with high standard manufacturing equipment and a current annualproduction capacity of 600,000 pieces. DELLA employs 300 people.

DELLA is part of the KERATON GROUP, a leading Russian Group in the building material industry.SANITEC’s aim is to continue manufacturing of DELLA brand products.

DELLA will remain as a brand on the Russian market and will extend sales activities together with SANITEC Russia, which already today handles all sales and marketing of SANITEC branded products in Russia.

DELLA

DELLA started to manufacture bathroom ceramics in 2005 with a production capacity of 600,000 pieces per year. The plant has very high standard manufacturing equipment and is considered the most-advanced ceramic factory in Russia. DELLA is located 40 km outside Moscow.

DELLA is a part of the KERATON GROUP, a leading Russian Group in the building material industry.Apart from DELLA, KERATON includes production of porcelain tiles, ESTIMA, and production of adhesives, LITOKOL.

In 2006 the Keraton Group net sales reached more than USD 100 million. The group employs around1,000 people.

Source: www.sanitec.com

5


South Africa: ITALTILE Slow to Ride Boom in PropertyThe ceramic tile and sanitary ware retailer ITALTILE said yesterday that although it grew revenue by14% in the year to June, it had not fully benefited from South Africa's growing economic and construction climate.

The company said revenue grew to R2,578 billion from R2,253 billion last year. Net profit grew 15%, from R241 million to R277 million, in the same period. Between last year and 2000, the company reported compound annual growth of 21% and net profit growth of 32% over the same seven-year period.

However, the company felt the results were "less than optimal" against a background of a good economic climate and the "prevailing construction boom".

CEO Gianpaulo Ravazotti said the company was seeking to reclaim its historical growth trend by ensuring there was a range of quality fashionable products at its outlets. In addition, it sought to improve service levels and align its supply chain with its growth objectives.

Ravazotti said the group's CTM chain, which was extending its retail network into traditionally black residential areas, would accelerate roll-out as soon as it had stabilised customer reaction and turnover.

Reaction was favourable as customers appreciated stores being closer to home, which offset the shortage of transport in such areas, Ravazotti said. The company was looking to expand its store base but did not have a specific target, instead seeking suitable locations in which to open stores thatwould allow for store expansion. Regulatory delays and rapid rises in development and land prices had slowed roll-out, the company said.

Ravazotti said as more competitors entered the market and prices were being cut, margins were being placed under pressure. However, he was confident that consumer spending would not slow down as, despite slowing residential construction, consumers would continue to invest in property through renovations.

"We continue to invest in our existing stores and extending our product offer to provide an improved retail experience to our customers." Ravazotti said there was not likely to be a shortage of contractorsin the home-improvement sector as informal tilers continued to enter the economy and queue outsideoutlets for contract work.

In Australia, where the firm established a presence in 1998, its eight retail outlets in Queensland andNew South Wales made a small contribution to group profits. Consumer demand in the segment hadsoftened because of "the less buoyant real estate market in New South Wales". This resulted in the market being oversupplied and placed pressure on prices.

Source: AllAfrica.com

6


Sweden: AHLSELL Opens Representative Office in ChinaAHLSELL is opening a representative office in China to develop contacts and monitor the Asian markets for products within the sectors of Heating and Plumbing, Electricity, Tools and Machinery andRefrigeration.

There is considerable growth in China and the rest of South East Asia, which means that developments in this part of the world will be vitally important for the expanding global market.

"Developments in China can have a great effect on our business. With a base in China we can make important contacts with suppliers in China and the rest of Asia. This is the principal reason for opening an office in China", says Göran Näsholm, President and CEO of AHLSELL.

The representative office will participate in purchases from China and South East Asia, be instrumental in building up supplier contacts and follow developments in the Chinese and other SouthEast Asian markets.

Source: www.ahlsell.com

Switzerland: GEBERIT Sees Mixed H2 Development in EuropeGEBERIT AG expects an uneven development across Europe in the second half of the year, CEO Albert Baehny said recently.

Baehny expects growth to slow down in Germany, GEBERIT's main market, judging by the decline innew building approvals. Falling unemployment is however still supporting RMI projects. In the first half of 2006, German sales rose 18.9% compared to 2005.

In Asia and the Middle East, Baehny expects double-digit growth rates in the second half of the year.

In addition, Baehny said the company had not raised its prices in the first half to make up for increasing raw material costs, but would compensate for this in the second half.

Source: AFX International ProFeed

7


Switzerland: ROCA Acquires SIMILOR GROUPSIMILOR GROUP, the Swiss market leader for sanitary faucets, was taken over by the Spanish ROCA GROUP. It has replaced Madison Private Equity Holding, Denges/VD, as the owner. The integration of the company known under the brand names of SIMILOR KUGLER, ARWA and SANIMATIC into one of the most important groups of the sanitary industry in the world will facilitate access to the international markets for the SIMILOR GROUP. With approximately 340 employees and production sites in Carouge/GE and Wallisellen/ ZH, the company has achieved an annual turnover of more than CHF 110 million.

The family-owned ROCA GROUP, with more than 20,000 employees in 80 countries and with sales exceeding CHF 2.5 billion, is one of the leading global players in the bathroom industry. The companyhas a complete portfolio of ceramic sanitary ware products ranging from shower systems to wellnesssystems and faucets. ROCA is world-market leader in the field of ceramics with production sites in 20countries. Since 1999, the ROCA GROUP is also very familiar with the Swiss market due to the acquisition of the Swiss industrial-ceramics specialist KERAMIK LAUFEN AG.

Madison Private Equity had gradually increased ownership in SIMILOR HOLDING AG from the founding family beginning in 2002. After a successfully initiated succession, the ARWA AG was takenover in the course of a buy-and-build strategy in 2003. As a result, the SIMILOR GROUP became theundisputed Swiss market leader. Since the take-over by Madison Private Equity Holding, the company has grown by more than 40%.

For the CEO of SIMILOR GROUP, Martin Sägesser, the ROCA GROUP is the ideal industrial partnerfor the company’s next growth step: “ROCA opens the door to the world for our quality brands. We would be too small for this on our own.”

From the perspective of José-Miguel Roca, CEO of ROCA GROUP, the focus is on two main arguments: “The programme of the SIMILOR GROUP is complementary to that of KERAMIK LAUFEN – at the same time, we see a major potential for the international marketing of Swiss quality faucets. ” The new owner has stated that it plans to maximise the synergies of KERAMIK LAUFEN and SIMILOR, but each group will keep independent management, in particular with respect to marketing and sales.

Werner Schnorf, CEO of Madison and founding partner of Zurmont Madison Management AG, is convinced “that the strategic initiatives and operative efforts of the preceding five years have put the SIMILOR GROUP in a very strong position. Together with the ROCA GROUP, the SIMILOR GROUPwill be able to expand from a position of strength in the home market.”

The previous management will continue to operate the SIMILOR GROUP under the new owner.

Source: www.similorkugler.ch

8


Thailand: AMERICAN STANDARD Aims for 'Economy' SegmentSanitary ware manufacturer AMERICAN STANDARD B&K (Thailand) is concentrating on the "economy" sector this year in response to decline in purchasing power, which has reduced demand inboth retail sales and RMI projects.

The company has seen flat growth in retail sales since early this year, managing director Jon Rigg said yesterday. Meanwhile, a greater number of project clients with one- or two-year contracts are focusing on condominium projects with smaller and cheaper units.

Speaking at the opening of the company's first flagship store in CentralWorld, called AMERICAN STANDARD BATHAUS, Rigg said the economy sector of the sanitary-ware market would achieve higher growth than the middle and premium sectors.

He said a total of 15 new economy models would be launched this year, up from five last year. The new models will cost between Bt2,000 and Bt4,000 a piece, although he insisted the quality would bethe same. With AMERICAN STANDARD still holding a significant share of the Thai market, recognised as one of the most developing markets in the Asia-Pacific, he was confident the companywould achieve sales of Bt2.6 billion this year, up from Bt2.5 billion last year.

AMERICAN STANDARD has allocated a budget of Bt100 million for sales and marketing campaigns,showroom development and promotional activities this year, such as the recently launched "Becomea Millionaire with AMERICAN STANDARD" campaign.

The company also recently opened a new customer-care centre in Pattaya, an addition to its other three in Bangkok, Chiang Mai and Phuket.

AMERICAN STANDARD yesterday also launched the AS Club, specially targeted at architects and interior designers and set up inside its flagship store at a cost of Bt10 million.

The 410-square-metre club has a conference room, information centre, library corner, WiFi Internet access and all-day refreshments. The club is meant to strengthen company relations with architects and interior designers, who strongly influence end-users' bathroom choices, while giving them the opportunity to widen their networks. It will also help AMERICAN STANDARD receive feedback on itsproducts and keep in touch with customer expectations.

Rigg said the AS Club was the first such concept to be tried by AMERICAN STANDARD, but he wasnot sure whether it would be employed in other countries, due to varying market environments.

Source: Nation (Thailand)

9


Turkey: ECZACIBASI Construction Group Grow Through Acquisitions

ECZACIBASI Construction Group is eyeing up Central Europe, the United Kingdom, Russia and the United States markets with plans to expand its business. The Group intends to increase its activities through buying companies in these new regions. Atalay Gumrah, the CEO of ECZACIBASI subsidiary INTEMA, said that Eczacibasi has a growth strategy that involves buying important brandsin new markets.

Gumrah pointed out that INTEMA has been responsible for the sales of ECZACIBASI Construction Group products and would play an important role in the growth of the group in the new regions. "TheECZACIBASI Construction Group is open to acquisitions and joint businesses to support our expansion strategy. INTEMA will be responsible for the marketing of foreign brands that the Group buys," said Gumrah.

Global vision: According to Gumrah, ECZACIBASI, which has bought two ceramic firms in Germany, is planning to be a global player in the ceramic sector. "One of these firms has production facilities also in France," noted Gumrah."Russia is a very critical market for our plans. Our group is planning tobuild a ceramic made healthcare appliances factory," he added.

As a notable proportion of the revenues of INTEMA are in Turkish Lira, the latest volatility of the dollarrate has not made any difference. "Cheap but low quality Chinese products are entering the Turkishmarket, but Turkish consumers are very conscious and selective. Therefore, the market share of these new entries remains very limited," said Gumrah, who also noted that Turkey is one of the leading ceramic exporters of the world.

Source: Turkish Daily News

10


USA: MASCO Corporation Reports Second Quarter ResultsMASCO Corporation recently reported that net sales from continuing operations for the quarter endedJune 30, 2007, including the positive effect of acquisitions and currency translation, declined 8% to $3.1 billion compared with $3.4 billion for the second quarter of 2006. North American sales declined10%, whereas international sales increased 14%. In local currencies, International sales increased 6% compared with the second quarter of 2006.

Second quarter 2007 results were adversely affected by lower sales volume of installation and other services, assembled cabinets and windows and doors in the new home construction market and a continued moderation in consumer spending for certain home improvement items. Results were aided by recent acquisitions, increased sales volume of paints and stains and international operations, particularly plumbing products.

As part of its profit improvement programs, the company has been focused on the rationalisation of itsbusinesses, including sourcing programs, business consolidations, plant closures, head count reductions and other initiatives.

While results in the second quarter of 2007 were below the second quarter of 2006, reflecting a decline of over 20% in housing starts (following a first quarter comparative decline of 30%), results were better than the company anticipated when it updated its full-year 2007 earnings guidance in May. Results in the second quarter of 2007 were aided by recent acquisitions, the favourable effect of currency translation, profit improvement programs and selling price increases, partially offsetting commodity cost increases and lower sales volume.

Economic conditions, however, remain uncertain in the company's markets. Housing starts have declined dramatically in the last 12 months due to previous excessive speculative buying, rapidly rising home prices in recent years reducing affordability and less attractive mortgage terms. As a result, the company has reduced its 2007 housing starts estimate to approximately 1.4 million, or the low end of its previous range of 1.4 to 1.5 million. In addition, the company continues to see a moderation in consumer spending for certain home improvement items, such as cabinets, and currently estimates that the company's 2007 full-year sales will decline mid single digits compared with 2006, a change from the previous estimate of a decline of low-to-mid single digits.

Headquartered in Taylor, Michigan, Masco Corporation is one of the world's leading manufacturers ofhome improvement and building products, as well as a leading provider of services that include the installation of insulation and other building products.

Source: PR Newswire

11


Monthly Special: The European Bathroom Products in 2006

In August 2007, BRG CONSULT published full country reports on Bathroom Products in 30 Europeancountries. These market studies analyse the 2006 market and are available forthe following:

- 16 West European countries: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK;

- 14 East European countries: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia,Lithuania, Poland, Romania, Russia, Slovakia, Slovenia, Turkey and Ukraine.

The reports can be purchased in different packages (30 European countries; 16 West Europeancountries, 14 East European countries) or per individual country. The product sections covered in thereports are as follows:

- baths

- shower trays

- ceramic sanitary ware and alternatives

- taps and mixers

- shower enclosures, conventional shower cubicles and bath screens

- hydromassage baths, hydrotherapy cubicles, combined products and shower panels.

Overall Trends in the European Bathroom Products Market

New Housing Construction

In 2006, the overall new housing construction in the whole of Europe grew only slightly by some 2% compared with the previous year. This growth has been mainly fuelled by buoyant new housing markets in Eastern Europe, particularly in Russia, Ukraine and Turkey. On the other hand, new housing construction in Western Europe offset this growth and declined by 1.5% (as a result of significant decline in Greece and Spain).

Total housing construction reached an estimated 3.6 million new dwellings, of which some 65% wereapartments and 35% were 1-2 family houses (this is to be compared to a ratio of 63:37 in 2005). In general, the trend is moving towards the construction of new apartments rather than family houses.

12


2006 Bathroom Products Market

Overall, sales of bathroom products increased in the whole of Europe in 2006. In West Europe, totalsales recovered from the decline experienced in 2005 and grew only marginally. East Europe, on theother hand, recorded another year of strong growth with sales rising particularly in the hydrotherapy and taps & mixers markets.

The total market value of the European bathroom market was estimated at over €10 billion, of whichmore than 80% was generated in the West. In volume terms, however, West Europe accounted for just under 70% of sales in 2006, with the remaining 31% coming from the East.

If you wish to receive more information on the developments in the European bathroom markets in 2006, please email [email protected] or call +44 1227 766 810.

Source: BRG CONSULT

13

Date post:	22-Aug-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

CUBE: Bathroom September 2007 - BRG Building Solutions · 2012. 8. 24. · without bathroom and...

Documents