German brand Villeroy & Boch has been a player in the premium bathrooms segment. But contrary to popular perception in India, the brand is ‘within reach’ of the customers looking at premium bathrooms. Mr.Nazario Menezes, Country Manager, India & Sub-Continent, Villeroy & Boch in a candid discussion with buildingandinteriors.com brings out some of the lesser known facts about the brand, it’s positioning and how the company is moving steadily and successfully addressing it’s target segment in the region.
B&I: Villeroy & Boch has been in the India market for quite some time now. How has been the journey till now and what have been the major highlights?
NM: Yes, indeed the major highlight has been the fact that Villeroy & Boch completed more than 10 years of sales activities in India! It’s been a satisfying journey thus far- Villeroy & Boch is well appreciated as a truly premium brand which consistently fulfils its promise of quality, reliability and design.
B&I: Premium bathrooms is a tough market in a country like India. Your reaction?
NM: We see the premium segment growing year-on-year at a compounded annual growth rate (CAGR) of roughly 15 – 20%. Villeroy & Boch has never deviated from its brand philosophy of a serious player in the premium category. Having said that, we offer fair pricing – thus ensuring that we are certainly not ‘out of reach’ for customers aspiring to upgrade their bathrooms to premium.
B&I: For the uninitiated, what are the USPs of Villeroy & Boch solutions? Tell us more about the after sales service.
NM: With its more than 270-year-old heritage, Villeroy & Boch is the undisputed expert in the bathroom industry. We have constantly set the benchmark in innovation and design – in ceramics, taps, wellness and bathroom furniture. Several innovations like DirectFlush, Quaryl®, QuickRelease, and Harmonic Wave technology are very important industry benchmarks.
As Villeroy & Boch is present in India as a fully owned subsidiary, after sales service is managed and controlled by our in-house teams and ably supported by our channel partners- most of whom are also the most well-established names in the industry. Technical teams are fully equipped with various tools for in-depth training-both in the region as well as from our German headquarters.
B&I: As a premium bathrooms player, how do you see deep discounting in projects, a commonly seen practice?
NM: As mentioned earlier, Villeroy & Boch ensures we offer fair price to our customers. For this reason, we are careful not to fall into the trap of inflating MRPs and then offer high discounts. Indian customers are smart to understand that the final price they pay is what matters more than the discount percentage!
Many of our customers acknowledge they are pleasantly surprised to find our prices well balanced across the portfolio – evidence of this being the very impressive list of premium projects we supply to across the region in the residential, hospitality and institutional sector.
B&I: How much of your international range is offered in India? If an Architect selects a product for his volume project from your international range (products not offered in India), can these be made available in India? What are the lead times and volumes needed?
NM: Every product from our international offering is also available to our customers in India. Of course, we make sure country specific standards and regulations are adhered when offering products in the region. The logistics is well managed by our team in India in tandem with support from Germany and of course our channel partners who maintain sufficient inventory of the fast movers.
B&I: How is Villeroy & Boch positioned in sales if one compares project versus retail? Which are your strong regional markets within India? What are the challenges and opportunities in India?
NM: We have a 60:40 project vs retail ratio in the region with a foot-print spanning across all metros and several tier 2/3 towns. We foresee great potential to penetrate further into smaller towns to tap the latent demand for our offering from discerning customers across various demographics. Our latest offering in faucets, shower/smart toilets and innovative ceramic materials are opportunities to showcase our expertise and prowess.
B&I: How do the other markets in the sub-continent contribute to your sales numbers?
NM: We are already well established in Sri Lanka and Maldives. Our presence in Bangladesh, Nepal and Bhutan is developing at a steady pace.
B&I: What are your objectives from India and the sub-continent over the next 2-3 years? Are you looking at setting up manufacturing plant in India? If not, why?
NM: We are constantly examining how the business demand and potential in the sub-continent region is evolving. We are aware of the ever- changing and dynamic nature of the industry and business. India and the sub-continent are a very important and significant part of Villeroy &Boch’s international foot-print plan.
B&I: How do your communication mediums change in view of the current pandemic? Architects and consultants would prefer not to meet in person. How do you circumvent such practical situations?
NM: Our sales team is well equipped with the latest digital tools to communicate effectively with customers. We utilised the lockdown months effectively by conducting various webinars and online courses- both locally as well as through our global training academy in Germany. For our marketing activities, we optimise our reach through digital marketing and social media. Product information related to design, function, installation, etc. is fully available for professionals on our portal www.pro.villeroy-boch.com, as well as through simple search engines and YouTube.
B&I: Traditional sales channels are being challenged regularly. Do you also work on alternate sales channels?
NM: Although we do not so far see much traction in the e-commerce and DIY space in India yet, internationally we have a high degree of experience especially in Europe. Thus, once these channels are setup in India, it should be a quick roll-out for us.
B&I: Premium segment in building materials is a tough market in a country like India. Your reaction?
NM: We see the premium bathrooms growing year-on-year at a compounded annual growth rate (CAGR) of roughly 15 – 20%. Villeroy & Boch has never deviated from its brand philosophy of a serious player in the premium category. Having said that, we offer fair pricing – thus ensuring that we are certainly not ‘out of reach’ for customers aspiring to upgrade their bathrooms to premium.
B&I: For the uninitiated, what are the USPs of Villeroy & Boch solutions? Tell us more about the after sales service.
NM: With its more than 270-year-old heritage, Villeroy & Boch is the undisputed expert in the bathroom industry. We have constantly set the benchmark in innovation and design – in ceramics, taps, wellness and bathroom furniture. Several innovations like DirectFlush, Quaryl®, QuickRelease, and Harmonic Wave technology are very important industry benchmarks.
As Villeroy & Boch is present in India as a fully owned subsidiary, after sales service is managed and controlled by our in-house teams and ably supported by our channel partners- most of whom are also the most well-established names in the industry. Technical teams are fully equipped with various tools for in-depth training-both in the region as well as from our German headquarters.
B&I: How do you see deep discounting in projects, a commonly seen practice?
NM: As mentioned earlier, Villeroy & Boch ensures we offer fair price to our customers. For this reason, we are careful not to fall into the trap of inflating MRPs and then offer high discounts. Indian customers are smart to understand that the final price they pay is what matters more than the discount percentage!
Many of our customers acknowledge they are pleasantly surprised to find our prices well balanced across the portfolio – evidence of this being the very impressive list of premium projects we supply to across the region in the residential, hospitality and institutional sector.
B&I: How much of your international range is offered in India? If an Architect selects a product for his volume project from your international range (products not offered in India), can these be made available in India? What are the lead times and volumes needed?
NM: Every product from our international offering is also available to our customers in India. Of course, we make sure country specific standards and regulations are adhered when offering products in the region. The logistics is well managed by our team in India in tandem with support from Germany and of course our channel partners who maintain sufficient inventory of the fast movers.
B&I: How is Villeroy & Boch positioned in sales if one compares project versus retail? Which are your strong regional markets within India? What are the challenges and opportunities in India?
NM: We have a 60:40 project vs retail ratio in the region with a footprint spanning across all metros and several tier 2/3 towns. We foresee great potential to penetrate further into smaller towns to tap the latent demand for our offering from discerning customers across various demographics. Our latest offering in faucets, shower/smart toilets and innovative ceramic materials are opportunities to showcase our expertise and prowess.
B&I: How do the other markets in the sub-continent contribute to your sales numbers?
NM: We are already well established in Sri Lanka and Maldives. Our presence in Bangladesh, Nepal and Bhutan is developing at a steady pace.
B&I: What are your objectives from India and the sub-continent over the next 2-3 years? Are you looking at setting up manufacturing plant in India? If not, why?
NM: We are constantly examining how the business demand and potential in the sub-continent region is evolving. We are aware of the ever-changing and dynamic nature of the industry and business. India and the sub-continent are a very important and significant part of Villeroy &Boch’s international footprint plan.
B&I: How do your communication mediums change in view of the current pandemic? Architects and consultants would prefer not to meet in person. How do you circumvent such practical situations?
NM: Our sales team is well equipped with the latest digital tools to communicate effectively with customers. As a result, we utilised the lockdown months effectively by conducting various webinars and online courses- both locally as well as through our global training academy in Germany. For our marketing activities, we optimise our reach through digital marketing and social media. Product information related to design, function, installation, etc. is fully available for professionals on our portal www.pro.villeroy-boch.com, as well as through simple search engines and YouTube.
B&I: Traditional sales channels are being challenged regularly. Do you also work on alternate sales channels?
NM: Although we do not so far see much traction in the e-commerce and DIY space in India yet, internationally we have a high degree of experience especially in Europe. Thus, once these channels are setup in India, it should be a quick roll-out for us.
