- 5 days ago
The fourth episode of Inc. Arabia’s podcast series with GROHE explores a topic that resonates deeply with homeowners across the GCC: renovation. Stefan Schmied, Leader IMEA at LIXIL International, shares insights on how renovation trends are evolving in the region, particularly in bathrooms and kitchens, and how GROHE’s solutions combine durability, design, and smart technology to simplify the process for consumers.
Category
🛠️
LifestyleTranscript
00:00Stefan, welcome back to Incarabia.
00:03Andy, always a pleasure.
00:06So we've already discussed technology, design, and sustainability.
00:12Today is a topic that I feel close to the hearts of many people,
00:17especially people living in the Gulf who are expatriates or residents of the Gulf region.
00:22It is renovation, right?
00:25It's something that I'm sure we all have gone through.
00:27So renovation is a big theme across the region right now.
00:32What is driving this shift?
00:34And what are the homeowners really looking for when they start this endeavor?
00:40Actually, if you look at our industry, if you want to cut our industry in very simple pieces,
00:45it's basically new building, the renovation.
00:47And this is a big project, like a renovation of an airport or a hotel or a small like,
00:53then it's you and me renovating their bathrooms.
00:56And on the other hand, within this market, if you look at renovation, we see different cycles.
01:02So if you look at Europe, Europe has a cycle of renovating maybe every 15 to 20 years the bathroom.
01:08If you go to India, you're down to seven to five years.
01:11If you look in our region now, especially Dubai, you see a huge boom of renovation.
01:17That's driven basically by a couple of underlying, let's say, macro and micro, let's say, drivers.
01:24One is like you have a lot of off-plan.
01:26You have a lot of additional volume coming on the market.
01:29So that's all new built.
01:30It's all new.
01:31And we still have now an aging housing stock in the UAE.
01:36So that now also is driven to renovate because they have to keep up with the new stock that is
01:44coming on as well as ownership increased.
01:46So a lot of people who now own said, I don't like it anymore.
01:49I want to renovate.
01:51So this aging house stock and the pressure also for investors to renovate their older properties,
01:58to keep up with all the new and very nicely designed property, residential property that now actually comes on the
02:05market.
02:05If you go around Dubai, brings this pressure to renovate.
02:10I think we see it now for, and it's not new, it was always there, but we now really can
02:16see.
02:16And I think everybody who lives somewhere in a bit, an older community, you have at least two, three neighbors
02:21renovating.
02:23I mean, where I live now, they also renovate all the entry paths.
02:29They renovate all the parts of the building also now inside.
02:34So we can also now see the big developers and maintenance companies.
02:37They're not just renovating, they start also seeing that everybody renovates their own apartment.
02:44Now everything outside in the common area.
02:46So we see that trend ongoingly now and actually gaining very good momentum.
02:51And I can imagine specifically like kitchens and bathrooms, you know, we spend a lot of time in these places.
02:58So they become a point of attention.
03:01You had mentioned 15 years in Europe, seven years in India.
03:06What about our region and the Gulf region?
03:08It really depends.
03:09And that is quite interesting.
03:11If you're a homeowner, you really focus on different topics when you renovate.
03:15You focus on durability, really focus on quality.
03:19That is where GROE actually is coming in, as well as we have these more investor-oriented who say, okay,
03:26fine, I need something that is durable but not too expensive.
03:30That's also where we actually come in quite well.
03:32But I think a main issue or a main problem that we often see when you renovate your bathroom or
03:38your kitchen, you get a bit distracted by the shiny appearance of certain products.
03:44And you underestimate that actually after a couple of years or even months, it's not working anymore.
03:51Then you have an issue with service.
03:52You have an issue with spare parts.
03:54You have an issue that you maybe have leaks when you're on holiday or gone.
03:57So we see that one also as a major issue or problem all over when you actually renovate as a
04:04private person.
04:05What are some of the most common areas of difficulties for consumers renovating their bathrooms?
04:12And how can consumers avoid the most common mistakes that people tend to experience when they undergo bathroom renovations?
04:22So I said that renovation is not something you as a private person do regularly.
04:26So that's why it makes sense to work together with a certified showroom or installer.
04:33So we as Grohe in the region, we train installers regularly.
04:38So we train them in Saudi, for example.
04:40We have our own buses basically driving to the furthest corner of the kingdom to educate and train installers.
04:48We also have our showroom partners who really know how to install the product.
04:51So to help the end user or the consumer planning this endeavor, because it's always different.
04:58It's never the same.
04:59And you don't do it often as a, let's say, as a private user.
05:04In summary, so you need a partner or partners who help you with the planning.
05:10The second is what people often forget, especially when you own the place, you maybe want to retrofit later.
05:17And you don't want to rip out everything again.
05:19So what you put behind the wall, like a flushing system, concealed cistern, or a shower concealed, you need to
05:27have durability.
05:28You want to leave it there for the next, hopefully, 20, 30 years.
05:31But you must be able to change the trim set, the front where you basically have the handle.
05:36So can you change the handles?
05:38Are there new handle designs available?
05:40So that's interesting.
05:41And the last point, I think you must be installer friendly.
05:43Because the quality, the knowledge in the region of the installer is still very transient.
05:50And it must be easy to install to avoid mistakes, to avoid leaks, to maybe avoid at the later point
05:56that you have to open the wall again.
05:58So that is basically where the growing products are clearly leading in the region.
06:02That also shows a bit our success we're having.
06:05Absolutely.
06:05So, you know, in a definition, renovation doesn't really mean tearing down everything and starting from scratch again, right?
06:13How do you define smart renovation?
06:17So smart renovation is also seeing what's already in the wall.
06:22Because Grover as a brand and our products are for over 50 years in the region.
06:28And as the market leader, we have this huge installed base.
06:32So we often say, like, yeah, check first what's already in the wall.
06:36Maybe you can leave the wall and you can just change for the flushing system.
06:39For example, the flush plate.
06:40Or as I said, for the shower, the trim set.
06:42But smart renovation means also when you renovate, think ahead what you like to have.
06:47So, for example, in our new flushing system, we already have everything installed for a shower toilet.
06:54So shower toilet is something that we see as a big trend here next to the shutoff valve.
07:00Then also in the kitchen, we have smart is also having reverse osmosis, having filter systems that you basically improve
07:10the quality of your water.
07:12So there today, there are way more technologies and new ideas and trends that you really can improve the health
07:21and also the quality of water in your house.
07:25In a way, it's, you know, just like any project, you need to plan for it, right?
07:30And I think what you've just explained touches on the technology side, smart features, the sustainability side, and the design,
07:39right?
07:40And now when we're talking about renovation, it pulls everything together into one story.
07:45Which grow hay solutions are most relevant for renovation projects and specifically, you know, for this region?
07:53We have, I said, to differentiate between really a hard renovation, you rip everything out and replace it, or a
08:00soft renovation, where you simply do the faucet or the shower head.
08:04But if you're really opening the wall, it's very important, I said, to focus on the concealed product.
08:13So we have, I said, the concealed system.
08:15We also have our new shower frame that actually helps you to install everything you need for a shower renovation
08:23within 45 minutes.
08:24So the speed in the renovation, because you don't want to have your bathroom on the renovation for weeks, preferably
08:32for a couple of days.
08:33You put the concealed system parts, you put the tiling, and then basically put the trim set, put the faucet
08:39ceramics, and you're done.
08:40So with all these products, Growya has actually a clever solution that is fast and easy to install.
08:49And with the help of our showroom partners, and then also our trained and qualified partners here in the region,
08:57there's always a way to make it very quick and painless, as I would say.
09:02Because renovations, that's often a strain on the whole family.
09:05Absolutely.
09:06Absolutely.
09:06So how do you balance a design-led approach with durability?
09:14It's not always about the looks, but it's also about how durability is, specifically in our region, where sustainability, water
09:22are key issues for us.
09:25As Growya, we have various, let's say, solutions here for the region.
09:31I mentioned before the filters.
09:32So we now have showers where you really have, we call it aqua pure, where you push a button and
09:40it filters the water, because we know all the water quality here in the region is sometimes a bit not
09:46so optimal.
09:47So we have this filter technology, as I mentioned, but also something which is often forgotten.
09:53It's like when you try to have the right water temperature.
09:58It is always a bit of a hassle with the lever, you try to get it right.
10:02Too cold or too hot.
10:03Too cold or too hot.
10:04So the right Goldilocks position of that handle is always very hard to find.
10:08So we have this thermostat technology.
10:11It's actually a very old technology.
10:12But interestingly enough, in the whole Middle East, it's not very common.
10:17And what we saw that the customers who come to the showrooms, who like to renovate their apartment, also say,
10:27yeah, but what is this thermostat?
10:30What really helps that you have the right temperature and the right water, let's say, flow rate with the push
10:38of a button?
10:39So we have the smart control.
10:41We will also now launch the Groeterm Aquatiles, which is a new product.
10:45And there also how many outlets you want to have.
10:49Do you want to have two outlets for a hand shower and a head shower?
10:52Or do you want to have three outlets with a special spray in your head shower or even up to
10:56four or five?
10:57So there are different variances and different options now that you can really use very clever.
11:04And again, for this, then you need to plan how many shower outlets.
11:08Brings me back to what we discussed before.
11:09You need a partner who can really plan that and explain you the options and the possibilities.
11:15So I think here in this region, yes, it's durability, but it's also luxury.
11:18It's also really the investment that we have in these big bathrooms.
11:23The bathroom size here is way bigger than in other parts, let's say, for example, Europe.
11:30So we see there are a lot of opportunities here in the Middle East.
11:34So how do we ensure technology and smart technology does not complicate our lives?
11:42You know, where is this balance where technology doesn't become a burden on consumers?
11:48I think that the two things must be easy to use.
11:51It must be easy to maintain.
11:52And if you have an issue or you should have an issue, you need a partner who's really here.
11:57And I think that's where, yes, the technology, we often use new technologies.
12:02And then maybe we're not sure.
12:05And in the bathroom, I said once it's in, it's in.
12:07Or once in the kitchen, it's in.
12:09It is installed.
12:11So there is where we see the service component really.
12:15Okay, I maybe want to do a maintenance or I want to do an upgrade.
12:20What shall I do that you have a growing partner in your countries all across the region that can help.
12:27And we have this from Morocco to Egypt to South Africa.
12:30We basically have it all around the region, especially in our stronghold here, the GCC countries.
12:35We have within the same day, more or less, we can send you one of our service partners or even
12:43our own service people immediately to your home to check and support.
12:47So if I am to zoom back into our region and specifically the Saudi market, you know, consumers and developers
12:55are planning renovations.
12:57We're obviously watching all the growth that's happening in Saudi specifically.
13:02What does doing it right look like from a Grohe perspective and from Stefan's perspective?
13:09Saudi is, again, we discussed a couple of times Saudi in our last previous podcast.
13:16I think it's still a tremendous growth story there for construction.
13:22It's mainly new built.
13:24We have to be very clear.
13:26Also, the renovation there is more a full renovation.
13:29They take down the buildings and then rebuild the whole thing.
13:33So renovation is smaller.
13:34But what we're really trying to do is there, what made us also successful in the UAE, is the installed
13:43base.
13:44And having the support to renovate the installed base.
13:48Because also in Saudi, for example, in terms of flushing system, our position is so strong.
13:54Also in terms of faucet, the installed base is so strong.
13:57So if we talk about the faucet, you don't need to take out the whole faucet.
14:02Maybe you can just replace the lever.
14:04Maybe change the cartridge inside.
14:08And you're basically done.
14:09So you can do very small tweaks to the renovation there.
14:13But from our focus, clearly in Saudi for now, it's still mainly new built.
14:20Excellent.
14:21Thank you very much, Stefan.
14:22Always a pleasure having this conversation.
14:26I do have one last question for you.
14:30What's your favorite Grohe product?
14:32My favorite Grohe product?
14:35The smart control.
14:36I still love the smart control.
14:38Because you push the button, immediately you have the right water.
14:42You have the right temperature.
14:44It is by far my favorite product.
14:48Thank you, Stefan.
14:49Always a pleasure having you on board.
Comments