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Firms modernize the look of our home interiors
German ceramics manufacturer Villeroy & Boch displayed its latest designs at the Kitchen and Bath China 2015 exhibition in Shanghai last month, including bathtubs and smart toilet systems.
Joyce Chia, general manager of the company’s bathroom and wellness division in China, said the Villeroy & Boch expects sales in that division grow 56 percent this year in China.
“We are stepping up collaboration with our distributors, especially in second-tier cities where we have seen a pick-up in demand for high-quality bathroom and other ceramic fixtures,” she told a press briefing in Shanghai ahead of the exhibition.
The company expects the number of its mainland showrooms to expand to 165 this year from 124, and to increase to 200 by the end of 2016.
Sales growth will come from wider expansion across China and from new products, she said. The company will be working more with design professionals and interior decorators to lift its profile on the mainland.
"We expect China to become one of our largest markets outside of Germany,” she said. “We are very positive about the potential here."
Improved logistics are also part of expansion plans so that purchased products reach customers more quickly. Warehouse space in Shanghai will be increased.
The exhibition pointed to a concerted move by domestic companies into the profitable integrated cupboard and cabinet sector of home decor.
Fotile, one of the leading domestic kitchenware and electric appliance makers, is expanding beyond its core kitchen appliance business for the first time in nearly 20 years.
Borcci, the Fotile Group's high-end kitchen cabinet brand launched last year, has seven sets of cabinets showcased at the exhibition.
The company said it plans to increase the number of franchised distributorships nationwide this year to 200 from 137.
"Most of the new distributors will be in second- and third-tier cities,” said Huang Gangcheng, general manager of Borcci’s franchise department. “Most franchise business operations weren’t hit by the recent sluggishness in the property market.”
Kitchen cabinet sales are expected to climb 50 percent this year, Tan Xiaobo, head of Borcci's marketing department, said during an interview at the exhibition.
He attributed the increase to improved designs that are in touch with what modern consumers want in their home décor. Designs can be tailored to the preferences of individual customers.
Annual sales for Fotile are about 10 billion yuan a year, with cabinetry expected to be a major engine of growth.
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