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Gulf CEO Business Review

KOHLER’S FORMULA FOR Gracious Living

For Kohler Kitchen & Bath, the Middle East is a key market. According to Jérôme Michel, President EMEA, Kohler Kitchen & Bath, “The diversity of the markets in the Middle East and the types of projects offer us an opportunity to tackle some of the world’s most interesting challenges when it comes to creating a customized, luxuriously comfortable bathroom experience that meets the Arabian taste and the desire for sustainable products. Also, the popularity of the Kohler brand is very high among citizens from Europe, Asia and GCC who are investing in this region.”

Having begun life as a general-purpose foundry in 1873, the Wisconsin, US-based Company has grown to become a US$6-billion global business. “Kohler remains a family-driven company; the CEO, Mr. David Kohler, is involved daily in the business,” said Michel. Kohler’s philosophy is centred on the aesthetic, with five design offices worldwide – in the US, London, Paris, Shanghai and India.

“Through these five offices we incorporate design influences from all over the world,” Michel explained. “Each of those teams works with the marketing team of their region, to innovate and create the best possible products for those territories. And the chairman of the Kohler Company, Mr. Herbert Kohler, himself approves each design.” This approach, adopted in its early years, has enabled Kohler to position itself as a style brand. The company’s all-black Kathryn Suite, which made its debut in 1929, has found a home in New York City’s Metropolitan Museum of Art. “It’s all about product art and gracious living for our consumers,” said Michel. “We probably have the widest portfolio in the industry – about 30,000 products.” Michel added that despite a value-engineering trend in the Middle East, many investors are still looking for high-end brands, for long-term investments, and Kohler products are “meeting this demand”.

“We differentiate on three levels: innovation, design and quality. The richness and completeness of Kohler product lines, whether you’re designing a custom luxury shower, remodelling the kids’ bathroom or simply replacing a showerhead, has positioned Kohler as a solution provider across the region.”

DEFINING THE FUTURE

Form is certainly important to Kohler, but function also takes a leading role. In June this year, at a trade show in Shanghai, the company introduced Kohler Konnect, which embraces the Internet of Things to deliver a smart bathroom system Konnect combines a number of Kohler products in an all-in-one solution, which is controlled through a mobile app. From a smartphone or tablet, users can customise the company’s VibrAcoustic® bathtub, Numi® Intelligent toilet, DTV+TM intelligent constant-temperature shower system, and many others. All of these appliances can be configured to their master’s or mistress’s particular whims; and each member of the household is treated as an individual, able to store their own preferences within the Konnect system. When someone is grooming, the mirror will automatically adjust the ambient music to the appropriate mood. The extractor fan will operate in response to the sound of a flushing toilet. The bath will be run to studious perfection – room lighting, temperature and music all predetermined by the user.

We differentiate on three
levels: innovation, design
and quality

THE MIDDLE EAST STORY

Kohler’s Middle East story predates that growth cycle. It began distribution in the region in the early 1980s, appointed its first regional sales executive in Abu Dhabi in 1988, and opened a branch in Dubai in 1994. “Now we employ 10 people in the UAE, covering the entire Middle East region, and our brand has a great reputation with products that are known for their excellent quality and design that meets all tastes,” said Michel. “This is a great marketplace because you have people here from all over the world.” Such diversity has helped Kohler to feed both of its business pillars – retail and project – amply. “In retail, it’s all about the end user and the products they want,” Michel explained. “A project is all about interior designers and specifiers working with developers and contractors to find the best products to meet specified requirements. With our portfolio we can satisfy all styles, from traditional, to modern, to what we call transitional.” Kohler’s showrooms demonstrate the breadth of its portfolio. Faucets, for example, come in 13 different finishes – from polished to matte, black to bronze – and all are machined at one of the company’s 60 manufacturing locations, spread across six continents.

“But it’s not all about the product range, it is also about service,” Michel pointed out. “When you are an interior designer working on mega or exclusive projects, you don’t want to go through a 400- page brochure of products. So we have trained our team to handle projects’ specifications and discuss with designers, ‘Okay, who is this for? Is it for Hilton? Jumeirah Group? Is it four-star? Fivestar?’ Then we will propose two or three different choices for the designer, taken from our portfolio.”

GROWTH AND EXPECTATIONS

GROWTH AND EXPECTATIONS From 2011 to 2015 Kohler doubled its sales in the Middle East, according to Michel.

“The two main markets for that growth were Saudi Arabia and the UAE.” he said. “But we also have significant projects in Qatar, Bahrain, Jordan and Oman. Industry-wise, we are seeing most growth in the hospitality space, in four- and fivestar hotels. We won significant hospitals in Kuwait, Qatar and the UAE, and we are working on the medical cities in Saudi. Our recently won projects include the Hilton Salwa Hotel in Qatar, which will be the largest resort in the world, and the three luxurious hotels in the Habtoor City in Dubai.”

In addition to hospitality, some of Kohler’s regional growth comes from residential projects and private palaces. The company has also targeted commercial projects and won projects such as the Emirates National Schools and ADNOC’s headquarters in the UAE. Despite the ever-present spectre of an oil crisis, construction projects in the GCC are proceeding apace, and Michel is optimistic about the coming years. “In 2016 and 2017 we expect to see some growth, albeit slower than in previous years, but there is still a huge pipeline of projects in the region. A lot of that is in the UAE, but also in Qatar for the World Cup. Saudi also has the medical cities and the Makkah and Medina extension.”

As a 140-year-old family-business brand, Kohler has much to be confident about and is comfortable in the chaotically competitive Middle East construction industry. As it continues to mop up opportunities, the future, in the region and beyond, holds no fear

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