Ceramic  tile domestic market

Domestic consumption fell in 2016.

Brazil has been the world’s second largest ceramic tile market with816.300.000 m2 (2015);  605.400.000 m2 (2008).

68% floors  24% walls.  Brazil´s Porcelain tile consumption growth over the past decade.

Consumption highly concentrated in the southeast region (São Paulo, Rio de Janeiro, Belo Horizonte, Guarulhos, Campinas, etc.)

Ceramic tile is widely used in every construction project. Good porcelain tile consumer image.

Ceramic tile companies in Brazil

Sales (million of Real in 2015)

Portobello   1.060,4 (30 million m2; +130 own stores; premium brand)

Eliane              730,7 

Cecrisa            652,7 (70% Vinci Partners)

Fragnani         431,8 (Incefra, Incenor, Tecnogres)

Others:  Elizabeth, Pamesa, Roca, Ceusa, Biancogres, Delta, Embramaco, Via Rosa, Villagres.

According to Anfacer, 70% of the total R $ 957 million of investments planned by the ceramic tile industry for 2014 and 2015, are directed to porcelain tiles. 

Porcelain tile capacity is only about 10% of the ceramic tile production.

Imported ceramic tile

No more than 5% of the total consumption.  Porcelain tile: the leading player was China (Brazil imposed a very hefty duty on tiles imported from China in August 2014)

Italy (Imola, Florim, Gardenia-Orchidea, Emilceramica, Italgraniti, Mirage, Atlas Concorde, Casalgrande Padana, Fap, Cerdisa, Kale, Ricchetti, Refin, Leonardo, etc.);   Spain (Aparici, Apavisa, Navarti, Porcelanosa, STN, Zirconio, etc.) They participated in Expo Revestir fair in Sao Paulo, Brazil.

Distribution Channels

Top Retailers:  leroymerlin.com.br  (Groupe Adeo);  dicico.com.br (Falabella); telhasnorte.com.br (Saint Gobain);   cec.com.br;  Balaroti.com.br;  cassol.com.br;  BR Home Centers (tendtudo.com.br   casashow.com.br);  portobelloshop.com.br;  + ceramic tile stores.

Only 15% of small retailers are in Buyers Club.

Business Opportunity

Develop an online platform based on porcelanato.com to lead the Internet in 5 years.

Benchmarking:

Tegels.com: a family ceramic tile retail. Rebranded to tegels.com. N°1 in Google.nl (tegels means tiles) And the name is important.

Blinds.com:  The company was purchased by Home Depot in January 2014. Home Depot believed that Blinds.com offers advantages when it comes to selling blinds on the Internet.  N° 1 in Google.com. In strategic website Home Depot trust.

Build.com:  The company was purchased by the giant plumbing and heating distributor  Ferguson (Wolseley Int. company group).  In 2010 rebranded to Build.com

Kitchens.com:  It is a comprehensive consumer resource on kitchen design. N°1 in Google.com

Merola Tile:  The New Jersey Division, located in NJ, was created as a National Distributor for The Home Depot in 1999. The tile selections are sold online at homedepot.com and in hundreds of The Home Depot stores located across the United States.

Saint-Gobain is a benchmarking because is adopting a multi-channel approach (1). Owns TelhaNorte, a top retail in Brazil.  Saint-Gobain has formed a partnership with Impulse Labs, a start-up incubator in Paris.

Starting a new business online requires much less risk than investing the company dollars into a brick-and-mortar. 

There is a tremendous opportunity to Develop a strategy Involving distribution and brands on the Internet.

If a company does not own stores, and / or powerful partnership agreements with distributors: Who is responsible for the marketing of your product?  The distributor? Even premium brands become commodities to be abandoned to their fate.

Exploring the links between ceramic brand and consumer:

¿who? and ¿how much?

It is through:

1: a ceramic sample; 2: holder rack; 3: the seller; 4: promoter; 5: ad in a home magazine; 6: the fair for architects and clients; 7: big board in a stadium; 8: website; 9: own shop; 10: the CEO,...

Use the power of digital to create new value. Empower your business and brand with Internet presence.

Julio Sol

More information :  www.estrategiaweb.com

sources:

anfacer.org.br   anamaco.com.br   valor.com.br   aspacer.com.br  exporevestir.com.br   icex.es   laceramicaitaliana.it   confindustriaceramica.it   comtrade.un.org   nrf.com  

references:

(1) estrategiaweb.com:  "Distribution is king: Low price porcelain tile - Wolseley strategy - Saint Gobain strategy"

glossary:

benchmarking:  a level of quality that can be used as a standard when comparing other things.

strategic domain:  URL.  Intuitive. Easy to remember and type. Word commonly used.  Related to a business.

tegels: tiles (dutch)