With its domestic market in turmoil, Italian bathroom manufacturers are looking further afield for new business. Tim Wallace spoke to a range of those who attended the recent 'Made in Italy' workshop at the Sleep Event in London, which brought them in contact with UK architects and specifiers...  

Despite new Italian premier Mario Monti's plans to kick-start the country's stagnating economy with a new package of austerity and growth measures, it's no surprise to find its bathroom manufacturers turning to their export markets to boost profits. One thing the Italians can always fall back on, of course, is their proud design heritage, which was something the country's bathroom association - Assobagno - was keen to highlight at a special 'Made in Italy' workshop at the recent Sleep Event at London's Business Design Centre.  

The idea was to introduce the UK contract industry to an exclusive selection of leading Italian bathroom brands, foregrounding the union between the technical, functional, 'wellness' and aesthetic qualities of Italian bathroom design and its design culture.

Some of those in attendance are already well known over here, of course, while others, like Italian ceramics specialist Simas, are still trying to establish themselves in a UK market that isn't exactly buoyant either. Simas works on both contract and residential projects and export director Marco Oddi (pictured above right) was happy to talk through his plans for the UK, alongside Martin and Robert Kelly from UK supply partners Liquid Design.

Tell us more about your interest in the UK bathroom market...

Marco Oddi: We're trying to improve awareness. Ten years ago the UK was our main market. After that, for several reasons, we lost the market and we're doing our best to recover it. We're looking at everything, residential and contracts.

How bad is the market looking in Italy?

MO: It's very difficult. About 60% of our turnover is in Italy, the rest is exported to Europe, Asia, the United States and India. We're trying to move more of our domestic turnover abroad. We want 50% turnover in Italy and 50% abroad.

How long will it realistically take to establish yourselves?

Martin Kelly: It's for us to try to make people more aware of the products, but if you're bringing out a new bath or a new design for a WC over here, it takes a long time to establish it.

MO: We'll need at least two or three years to see growth. The UK market isn't as open to new products as elsewhere. People don't accept new products very quickly. This is my first time in London and from what I can see people aren't confident with new brands. Take a square WC, for example. Talk to 10 UK guys and maybe only one will take it. It's a very conservative market, like France.

Robert Kelly: it does take a long time to get things from the manufacturers into the showrooms to display them. They need to take a leap of faith now and see what else is possible.

How do things differ over here compared with the way you work in Italy?

MO: In Italy, a client will accept 90% of what the architect says. Maybe here people go to the showroom and choose for themselves. It's a matter of their habit, their culture.

RK: And because the market is so tight, they don't want to invest in new displays. That's a mistake, because if they don't invest in new products, their business dies.

But can you understand retailers being reluctant to rip out and change displays at the moment? There can be a big cost implication...

RK: A lot of showrooms in the UK have got the 'pigpen' attitude with tiled bays. That means you have to rip out tiling, you've got to change everything. That's not the way to do it. You don't need to tile the walls to show a product. You need to be more careful and assess how you can change things cost-effectively.

How important is having a genuine Italian design heritage in a market as tough as this?

MO: For us it's very difficult to compete on price, not only with China but also Turkey, Egypt, and India. So what we're doing is promoting our Ceramic of Italy brand, which is 100% made in Italy. We cannot compete, we only have one factory.

RK: The market has changed in the UK. The bottom end has gone for the small supplier, people go to B&Q or Travis Perkins and buy what they want. The middle market is also struggling but the higher end hasn't really changed that much. If you have the right portfolio of products you're OK.

Would Simas ever consider manufacturing any products in China?

MO: No, we want to protect our Italian heritage and quality. We're a company with 125 employees. It's so difficult to go to China and control the market or the factories there.

RK: Everyone's afraid of China but costs are going to rise in the next five to 10 years because people are going to want more money. It's happening now. China's export market has slowed down considerably in the past year or so. I don't know why people are worried about China. They should just concentrate on their own products and market them based on quality.

MO: We have the service, the quality, the style. 'Made in Italy' means a lot. The problem is, in our district, there are a lot of companies that import and resell saying it's made in Italy but it's not true.

Imperial Bathrooms is bringing production back to the UK from China, would you say this is likely to be a growing trend?

RK: Yes, if fuel and transport costs go up, it might be cheaper to produce locally.

MK: Let's hope they do, because China is going to become expensive. Transport costs will increase. It will become more practical to manufacture in the UK. It will come back as long as we can produce at the right cost and quality. Most of us would rather buy from European companies and it makes sense to keep business in the European community.
 
Which markets are you most optimistic about?

MO: The main markets are Russia, Ukraine and eastern Europe. Also India; this year is the first time for us over there and I don't know how it will go in the future. It's a potential market like China and Brazil, but Brazil is difficult. The USA is very close and they have different traps so the standards are not the same.

'London is the centre of the world...'

Gianluca Marvelli (pictured above left), president of Assobagno, explains the thinking behind targeting the UK...

"Special events like this one help Italian bathroom manufacturers introduce themselves in the export market. London is the centre of the world for this kind of activity. We are here to show our companies to the professionals. Italian manufacturers are looking to explore the level of competition in the UK, plus tool costing, logistics and service. This is an opportunity for them to not only work in local markets, but other markets such as the UK.

In the past we've tried it in Turkey, but this is the most important market, and we'd like to introduce this event in other parts of the world, like Singapore for example. The market in Italy is very difficult.

Italy is also looking at the BRIC countries where we have the most important opportunity to develop business. Russia is important, also Brazil although we have the problem of a very high level of tax.

We hope that with the new political situation, we can become more confident, but at the moment it's a confusing picture. That's why we're looking at the export market."


'Why we're here...'

A selection of opinions from those who attended the Made in Italy workshop at the Sleep Event in London...

Tony Evans, group sales and marketing director, UK Heating Group

I work closely with Italian radiator specialist the Caleido Group
We work with a selection of Italian suppliers. For Italy you can read every economy in Europe at the moment with even the Germans having problems. It has to be a worry for everyone.
Business for us was more difficult in 2011 than in 2010. The market in the UK is challenging but it's not a desperate situation. We supply under the Radiator Company banner but they will have Caleido branding and are manufactured in Italy.
The situation as far as China is concerned is that you have to embrace it as a global manufacturer, but for design and image Italy still leads the way. You have to recognise that it will follow from Japan 30 years ago and consume its own wealth, and products will then be made elsewhere.
What we invest in is our ability to bring leading-edge design to the market. We've achieved that over the past 10 years or so. We offer a choice but we follow that up with really good customer service. In this market-place, consumers demand high service levels.
We have a sliding scale of displays based on the amount of investment the retailer is prepared to put in. It's an agreement based on what we can do with that retailer. The Bank of England can't predict what will happen next Friday, let alone next year. Look at Thomas Cook - holidays are discretionary purchases. They're not essential. We need to get housing transactions improving, when they improve things will improve for us.

Lorna Wainwright, UK manager, Teuco

One of the most significant market trends we have seen at Teuco is a notable increase in demand for customisable products - a situation reflected in the immense success of our Duralight lines.
Thanks to the Teuco Unlimited service, in conjunction with our contract division in Italy, we are able to offer bath tubs, basins, basin tops and shower trays in bespoke guillotine-cut dimensions - a factor of particular relevance to our ever-increasing client pool of architects and interior designers.
This ability to produce individual, one-off items (for minimal extra cost, with standard lead times) is in stark contrast to the 'production-line' mentality associated with today's Chinese manufacturers and therefore has the additional advantage of being another weapon in the war against low-cost, inferior-quality imitations

Fabio Oggero, marketing and sales director, Aquademy

We are new to the UK, it's a new brand but a company that's been in the market for over 20 years. We've worked with Jacuzzi, Porcelonosa and others.
It's not easy to break into the market, the key thing is to make contact with architects and let them know our products work effectively, even on low pressure. For the next five years the architects will be key to the market. They're the ones specifying the products.
We're also working with a luxury distributor in the UAE, and in India, Canada and the USA. In Brazil, we have problems with export taxes. In Russia, a lot of interesting showrooms want to work with us.

Michela Arbellia, commercial director, Scirocco

Globally our market is decreasing, we're seeing the opposite of a recovery. But we are looking to broaden our horizons, so instead of retail we also want to focus on contracts to try to expand. It's because we have the ability to customise. It's a strong theme.
All our products are manufactured in Italy. We could do it cheaper in the Far East but we don't want to. We are strong on design and we have to stay like that. At the moment, we're looking at central London but all this can expand. It's not easy in this market. There's a lack of construction and renovation.

Martin Roberts, national sales manager, Bemis Carrara & Matta

We have one manufacturing plant in Italy and one in the UK. We produce toilet seats and now we've introduced accessories. We already deal with Holland, Germany, Italy, Switzerland and Austria.
We launched in the UK this year. It's a different market, but it's been well received. Year on year turnover is pretty flat though, we're consolidating on where we are.
Accessorires have got potential. It's about getting the brand out there, so we've done advertising on the side of buses in Manchester and London.
We think we have something that will interest architects working on projects. We want the same quality. We've always done the KBB show so to see the Sleep Event and the new route to market through hotels, etc, opens your eyes a little.


Companies that took part:

Arlex Italia
Furniture producer focusing on wash basins, closets, mirrors, and the customisation of products and tailored projects for contracts, hotels and residential hotels.
www.arlexsrl.com/eng.htm

BEMIS Carrara & Matta
Toilet seat and bathroom accessories manufacturer for areas of high usages - hotels, hospitals and communities, with hygiene as a key driver. Characterised by style, practicality and high levels of functionality.
www.bemiseurope.com

CO.GE.FIN (Caleido)
CO.GE.FIN is a leading Italian manufacturer distributed under the Caleido brand specialising in designer radiators, towel warmers and bio-fireplaces.
www.caleido.bs.it/CO.GE.FIN srl

Deltacalor
Hi-tech, high-quality radiators and towel rails. Products designed for domestic comfort with high technology and design content.
www.deltacalor.com

Jacuzzi Europe
Founded by the Jacuzzi family to provide luxury bathroom and spa interiors for homes, spas and hotels.
www.jacuzzi.co.uk

Koh-I-Noor
Specialises in a range of accessories for bathroom furnishings and body care including mirrors, bath seats, shower curtains and hair brushes.
www.koh-i-noor.it

Newline
Italian trading company specialising in the supply of innovative and functional bathroom accessories focusing on electronic bidets and mirror defoggers.
www.newlineitalia.com

Rapsel
Contemporary bathroom systems identifying objects with highly innovative content and great quality of aesthetics and form.
www.rapsel.it

Regia
Founded in 1988, the company designs complete bathroom collections, producing avant garde
products using hi-tech engineering and new, exciting materials.
www.regia.it

Rifra
Bathroom furniture manufacturer whose products include basins, towel rails and shelves, focusing on new technologies and exploring new interpretations of modern bathrooms.
www.rifra.com

Scirocco
Specialists in radiators and towel heaters for bathrooms and living spaces.
www.scirocco.it

Simas
Creators of ceramic sanitaryware including wash basins, bath tubs and WCs (see Q&A).
www.simas.it/uk/simas_uk.htm

ST Rubinetterie
Bathroom appliance manufacturer specialising in brass metal taps and shower heads.
www.strubinetterie.it

Teuco
Using the concept of 'water as an experience' to design complete bathrooms, including bath tubs, showers, basins and taps.
www.teuco.it

Webert
Bathroom fittings company, established in 1975 specialising in taps with the core values of refinement, reliability, functionality and value for money.
www.webert.it