An Internet search for the words swimming pool, jacuzzi or hydro-massage bathtubs returns tens of results of companies operating in Romania, which for several thousand euros install such objects in homes, courtyards or in spa centers.
Although after more than two years of crisis, companies in many fields have seen their resources “dry up”, this industry appears to still have resources. Perhaps because there will always be demand for luxury products, as companies involved in the premium industry admit. But has the market experienced recession? “Demand is on the rise against 2010, but much lower than in 2008 and lower then the market potential. We see a stabilization of demand and more openness from customers,” says Lucian Azoitei, executive manager of Hidrotek International, the company that represents Jacuzzi Europe in Romania.
“The best year was 2008, and the weakest was 2010, largely because the crisis removed such products from the list of things to buy,” he says.
The company has been present on the market as a representative of Jacuzzi Europe since 2005. “During these nearly six years we have found that the best period of the year for sales is spring, April to June,” says Azoitei. The company has a dedicated showroom in Bucharest and 10 dealers across Romania. The company reached a EUR1 million turnover in 2008, after which revenue started to slide.
Who are the swimming pool buyers? The client profile suggests clients are 35 to 50 year-old graduates of higher education, knowledgeable and informed, earning above-average income.
Whilst on the Internet one can find such companies easily, at the swimming pool manufacturers and importers fair organized in early June at Romexpo, participants were very few. But those who did take part were optimistic.
“I believe there is demand for such products and that Romania is a country with potential,” says engineer Florin Georgescu, manager of Luxury Spa, which imports the Dimension One brand. This is how he justifies his tapping into this niche market, where he is in talks to sell the first swimming pool, at a price of EUR17,700 (VAT-excluded). The company started the jacuzzi business in June, with prices reaching up to EUR19,500 (VAT-excluded).
In turn, Ervin Tubak, manager of Compass Pools&Spa says business is “pretty good” but there is room for more. The company posted 0.7 million lei (EUR0.17 million) in turnover in 2009 according to the Trade Registry data. Compass’ models start from EUR6,000 and may go to EUR28,000 (VAT excluded). “I hoped 2011 would be better but now I have slight doubts it will,” Ervin Tubak says.
Alpha Industries manufactures in Chisinau, but its saunas, whose prices start from EUR1,500 (plus VAT) also sell well in Romania. The company also has tanning equipment, spa (outdoor) pools and steam baths in its offer.
“We sell up to 10 saunas a month,” says Alexandru Sturzinschi, company representative.
“2011 will be a better year. We have introduced new products, and the luxury models sell just as well as last year. Lower-priced models sell worse.” (EUR1=RON4.2037)