Manufacturers of kitchen metals aim at C class
Valor Econômico
Driven by the growth in the demand of B and C classes for new real estate, manufacturers of metals for kitchens and bathrooms are directing investment towards such public. Companies that have traditionally focused on the higher income consumer, such as Deca and Docol have already launched lines intended for the new middle class. Fabrimar and Lorenzetti have increased the offer of products at more popular prices. Fabrimar, which has already launched the Giro line intended only for C class with a cost up to 35% below its traditional lines, is now placing new models on the market. Named Eixo, the new line will still be 10% cheaper. José Fernando Caleiro, commercial officer of the company, says R$ 10 million (US$ 5.7 million) will be invested altogether in 2010 in order to increase their production.
The new focus makes Caleiro foresees the company will grow 15% in 2010. Last year, there was just 1% growth. To reach the goal, Fabrimar invests its relationship with the builders. To compete with what Caleiro calls the Chinese invasion, Fabrimar bets in the warranty and in technical assistance. "We will highlight that our product has a 10-year-warranty and besides, that customers can call our technicians to solve problems", he says.
Lorenzetti, which entered the market of metals seven years ago, has doubled its production since 2004. Last year, it grew 12% in the segment and it expects to get to 18% in 2010. The strategy is to invest in the small neighborhood stores where the new public is located. "We begin selling in the large chains. But we increased the focus on the small businesses. The idea is to make the most of the capillarity we already have with other products", explains Eduardo Coli, Vice President of Lorenzetti. The prices of the products of the company in the segment range between R$ 40 (US$ 23) and R$ 70 (US$ 40). "We will fight for space in those [B and C] classes that have been showing great sales growth", says coli. "We have delivery channels in all States. We are in Acre, in Amazonas, and also in Rio Grande do Sul. "
Traditionally aimed at high standard products, Deca has been increasing its portfolio in the line for the middle class. According to Flavio Soares, Marketing Officer of the company, this category was first created to meet a need of the higher income public: less expensive metals that could be used in premises and free areas, such as gardens and garages. However, the line ended up reaching the public of C class as well. "Besides, it is not because the income is lesser that the consumer will no longer want quality", he says, mentioning the Hydra valve which, according to him, is present in the homes of the most varied social classes.
Regarding Docol, also intended for the high income class, it launched a line for the midmarket, the Pertutti, with a less sophisticated design. "The idea is to reach the entire population", says Guilherme Dertani, commercial officer of the company. The company that expects to grow in high standard as well foresees an income 12% greater in 2010. In 2009, there was 2% growth. Today the market of metals has nearly 200 companies operating in the country. The largest are Deca, Docol and Fabrimar.