Bathroom Business School 2020-12-25
This year’s epidemic has hit the bathroom industry, and some companies have seen a decline in retail sales. Under the crisis, bathroom companies have made efforts to save themselves, one of the main forms is to expand their online business. Recently, Delta Faucet (Delta Faucet) announced the acquisition of the online bathroom company Kraus, and said the latter’s strong online sales capabilities will strengthen the company’s market leadership position. Under the recurring epidemic, “touch the network” has become an important way to achieve increased revenue for sanitary ware companies.
Acquisition of online sanitary ware companies Kraus
On December 22, local time, Masco Group (Masco) of Delta Faucet (Delta Faucet) announced that it has signed a definitive agreement with its parent company Masco to acquire the assets of Kraus, an online bathroom company focused on providing modern, high-quality sinks, faucets and related products. Delta said the transaction is expected to close in the first quarter of 2021, subject to related closing conditions and regulatory review. Upon completion of the transaction, Kraus will operate as a subsidiary of Delta.
Founded in 2007, Kraus is headquartered in the Kraus area of Port Washington, New York, with 100,000 square feet of consolidated warehouse space and currently employs approximately 100 people. kitchen sinks, and other products, sold primarily through the Internet. It is reported that Kraus’ leadership team will report to Delta’s Vice President of E-Commerce, Jill Ehnes, until the closing of this transaction.
On the other hand, Delta is a well-known brand of Masco, the main products include kitchen faucets, bathroom faucets, shower heads, shower systems, toilets and related accessories, Delta President Ken Roberts said he was looking forward to Kraus to join the company, Kraus products and strong online sales capabilities will strengthen Delta’s market leadership.
Foreign sanitary ware companies to force online business
Since the epidemic, has been on the online business is not warm foreign bathroom companies also began to change their attitude, the Delta acquisition of online bathroom companies Kraus, apparently also intends to strengthen the online business. In addition to Delta, recently there are many foreign bathroom companies to move their business online, the frequency of social media posts also increased linearly, some companies invest in their own or with the help of third-party platforms to expand their online business.
In October this year, Lixil Group adjusted the organizational structure of its 100%-owned subsidiary, “LIXIL Living Solution”, and the online sales business carried out by the subsidiary (LIXIL Online business) will come under the Group from January 1, 2021. Lixil said that the decision was made as it continues to streamline its business to improve operational efficiency. Lixil has already launched online services involving repair parts, etc., and will take over the online sales business of LIXIL Living Solution in parallel.
Also in October, Villeroy & Boch announced a strategic partnership with Bathstore, which has a large bathroom product line online sales platform. Villeroy & Boch’s move was opposed and criticized by some dealers, one dealer said it would make the Villeroy & Boch brand cheap. Villeroy & Boch said the cooperation is still in the experimental stage, and currently only provides a limited number of products to the Bathstore, and only in selected stores, in order to raise brand awareness. Although Bathstore’s online store is still not on the shelves of Villeroy & Boch’s products, but do not rule out the possibility of subsequent shelves. There are also companies in the original online platform based on the enhanced user experience. This year, the Japanese bathroom company Takara Standard shelves a 3D channel, through the computer browser can be seen in the virtual space with the space of the product effect, the scenario-based experience to the Internet.
The platform also supports VR devices, consumers can experience at home close to the physical store shopping experience. Some online bathroom sales platforms have also expanded their business this year, with Victorian Plumbing, a UK-based online bathroom store, having received more than 750,000 orders in the past 12 months, and revenue jumping 37% to £207 million in the first three quarters of 2020, which ended in September. To that end, the company is recently conducting a new phase of its hiring campaign, targeting 20 percent new staff, or about 80 jobs, within three months.
In addition to the ToC business, some companies are also shifting their internal operations to be held online. For example, bathroom drainage system manufacturer Viega previously closed its seminar centers in Colorado and New Hampshire, but is also offering free online training to contractors, distributors and other practitioners.
The epidemic is driving more companies to “go online”
Since this year, the development of the global epidemic has shifted industry exhibitions to online, with global kitchen and home exhibitions such as Kitchen & Bath Show 2021 (KBIS), Bathroom Show 2021 (ISH) in Frankfurt, and International Furniture Show 2021 (IMM) in Cologne having switched to a purely online format.
A large number of online activities will undoubtedly promote foreign sanitary ware companies to accelerate the layout of online business. In the situation of the global epidemic repeatedly, through this way, it will enable companies to reach more potential customers. Moreover, the online form of product display and promotion, but also to promote the enterprise to carry out online business is very beneficial, in line with the consumer trend.
If online business used to be only an optional item for business development, under the epidemic, this kind of non-contact business has become a must-do issue for business development. Especially in Europe and the United States, due to the mature development of the traditional offline market, many companies previously showed some resistance to online business. However, under the influence of the epidemic, some enterprises began to change their way of thinking, and “touching the Internet” has become an ideal way for these enterprises to achieve increased revenue under adverse circumstances.