Hansgrohe posted almost EUR700 million in sales in 2010, and an EBITDA of EUR140 million, which shows the German business was not hurt by the global recession, reads BUSINESS Magazin.
Germany accounts for a quarter of the company’s business and the key to Hansgrohe’s success was its focus on the local market and emerging countries, which were less touched by the crisis or not at all.
In Romania, sales started falling in 2009, but considering many builders have their operations frozen, this was only natural to happen.
Rennau says the growth potential of 2012 is significant. It is not just the crisis that is hampering companies in the field. Considering almost 50% of the population is not connected to a water and sewage network, things no longer look that good.
Hansgrohe’s boss says that such a percentage seems huge for Europe. Out of the 22 million potential clients around 11 million are left, he adds commenting on the clearest indicator about the current potential of the market. On the long-term, though, this situation will be the growth driver, but no sooner than five years.
The German company bets on the shaping up of a well educated middle class, with above-average incomes, which will drive up demand for high-quality products, to boost its current market share of below 3% and revenue of around EUR1 million annually.
According to retailers consulted by BUSINESS Magazin, the market of bathroom sanitary appliances has halved from 2008, as most real estate projects are frozen. This is why the only niche these days is home renovation.
The amount of money a client is willing to spend on sanitary ware is much lower than in Slovenia, Croatia or Serbia. Over 50% of the market is dominated by Chinese products, compared to around 10% in the countries of the region, as domestic production covers only a small part.
On the market revolving around one million units sold annually, producers of luxury sanitary ware are fighting for the 10-15% of target-public relevant for their business.
(English version by Catalina Apostoiu)