Bathroom and kitchen specialist Kohler believes it has finally resolved the design and distribution issues that have dogged its progress in the UK market. Jeff Mueller, president - global faucets, tells kbbreview more about its plans...

Times may be tough but when a global KBB giant like Kohler does hospitality, it doesn't do things by halves. Its recent editors' conference at the company's HQ in Kohler, Wisconsin, saw journalists from all over the world enjoy a packed three-day programme of events and presentations amid the five star luxury of its American Club hotel and spa.

That said, of course, the market for Kohler is as challenging as for anyone else, a point underlined in the opening address from company president and chief operating officer David Kohler, who admitted 'below-par performance' and predicted a 'slow, protracted recovery'.

Despite growth in its Asian and Middle Eastern markets, it's no secret that Kohler has also had problems getting a foothold over in the UK, a point conceded by UK business director Leigh Leather in an interview with kbbreview back in November 2010.

Back then, Leather admitted the company hadn't had enough European-designed product and was probably taking too many US-styled products and trying to fit them into the UK market. Kbbreview caught up with Jeff Mueller, Kohler's president - global faucets, for an update on the company's progress since then...

Q. How is Kohler now faring in the UK?
A. The Kohler brand in the UK market has been a challenge but we've worked hard to get the product offering right and to align well with our distribution partners. Clearly, for several years we've had problems on delivery, but we've recently moved warehousing back to the UK. We believe having localised distribution - with our own warehouse and stock right near the motorway - is the most effective way to meet customer needs. That shift took us longer than we wanted it to but we now have the stock in the right place to meet the delivery needs of the market.

Q. How do you persuade UK retailers to buy into the Kohler proposition?
A. The best way I've found is to actually sit down with a retailer, see what they want to accomplish, see if it's aligned with our ideas and then bring them to see what we've created in other areas. I've often found bringing a retailer to Kohler, Wisconsin, is very effective, not just to see the displays but also havethem understand our manufacturing process and what the Kohler brand is and who the family are. I've been delighted with the commitment from West One to open in Clerkenwell. It's been a fantastic venue for us and done very well in winning specifications.

Q. So is the architect and design market going to be the main focus?
A. We want to have the best UK showroom partners in each market. We want to be selective and have a few of the best in each market we compete in. We're looking more at 'market and selling areas'. We want to work effectively in certain geographic areas with great partners.
 
Q. How is Kohler's retail network faring?
A. Good question. I think in a number of areas we're looking to 'right size' it. We haven't been a perfect partner during the course of the past three years, principally on the delivery front. That said, we're looking to work with existing partners to show we can still deliver value and grow with them. But we don't want to be over-distributed, we want to be selective. We want to be loyal and selective partners with the best local distribution in each marketing area. We came in with a bang, then we drew back and said OK, we have to get these things right. You can't be over-the-top flashy and you can't force it. You have to learn about the customer and meet their needs.

Q. In an interview with Kohler's UK business director Leigh Leather back in November 2010, he said the problem was more to do with products lacking a genuinely European style than about distribution...
A. We have several things we need to get right; the delivery needs to be right, we need the right distribution. But last month we relaunched the brassware offering in the UK, and that's been about bringing to the UK a curated offering that has the right skews for each and every configuration. We've learnt there are certain skews in the UK, which allow you to fill out a full suite of products on the brassware side that is specific for the British market.

Q. Is it a good time for Kohler to be trying to ramp up its profile in the UK?
A. I don't know that it's a great time to be spending tons of money entering the market but it is time for companies to make sure they're supporting their customers. It's all about great delivery, the right products and the right configurations of products.

Q. What's your target in terms of UK showrooms?
A. It depends on how the market evolves, but I never want to be in more than 200 showrooms. We've lived by that rule for the past six to eight years and continue to live by it. We don't want hundreds of distributors, we want a select few and to build something unique.
 
Q. So you're looking to offer retailers exclusivity?
A. Selectivity is the correct term. We hang our hat
on being selective and aspirational.
 
Q. How would you sum up the current UK market?
A. Since the austerity measures, it's certainly slowed. There's been deterioration in the average unit price that the market will have to bear. But it's not as if the volume has fallen off significantly. People are looking for good value and great products. Ultimately we've managed to improve our share overall and we're happy with that. We're also helped by the fact that the Mira brand is highly regarded in the replacement and renovation market. If it was all new-build, we'd be seeing some further degradation.

Q. What would be your advice to any independent retailer in the current climate?
A. The mid-market stores need to understand who the key influencers are in the market. They have a job to be in touch with anyone on the architect, designer or specifier side in each market. They also need to do enough advertising and be in the right venues to bring people into the showroom. It's difficult in this economy. When I look at the impact the austerity measures are having in the UK, I think the affluent consumer wants to be courted, which often means they want to discover the showroom, not be screamed at with large billboards. How you allow your showroom to be 'discovered' is key and it starts with having the right relationships and putting together a showroom that draws people in.

Q. Are UK bathroom showrooms lagging behind the rest of the world?
A. I've been in showrooms in Brazil, Thailand, China, Vietnam and the Middle East, in the past six months. The average Kohler showroom size has been about 8,000sq ft, ranging from a low of 4,000sq ft up to some at 15,000sq ft. I'd say showrooms in the UK are evolving. The environment has evolved significantly since 2001 and is moving at a reasonably rapid rate, but even in London it's clearly almost a birth of the bathroom as a destination, an experience that hadn't been in the UK previously. It's wonderful to watch and the consumer is having an awakening in terms of what the options are. It will move briskly from here. But it's tough on the UK high street. You have to adapt and do more with a smaller space.
 
Q. What do you find is the best way to set out a small showroom?
A. Having the big lines of sight and a feeling of openness adds to the experience. If you put too much in it becomes clutter. A few well laid-out vignettes are far more effective for the consumer than jumbled suites.
 
Q. Which showrooms have most impressed you on your travels?
A. I'm blown away every time I walk into our exclusive 20,00sq ft showrooms in Nanjing Road, Shanghai. There are also some amazing showrooms in Qatar and Bahrain that I quite enjoy, and I went to the grand opening of a store in Ho Chi Minh City which was phenomenal. They build dreams, it's about vignettes, they may be as much as 500sq ft, but it shows what can be accomplished.

Q. Are there any new market trends that are interesting Kohler at the moment?
A. The advent of digital into the bathroom is quite exciting. Look at our new Numi WC or the prompt valve. The bathroom is getting a brain, it can think about what you need and deliver it. The products are fun but simple and easy to use. The prompt valve was the first global digital thermostatic valve when we launched it back in 2005. And now the Numi, one of the world's most expensive toilets at $6,400, provides a bit of customisation. The ability to do that is being facilitated by the brain inside of the product.