Kohler eyes grabbing 25% of sanitaryware market

Kohler, founded in 1873 by John Michael Kohler, is an American manufacturing company based in Kohler, Wisconsin. Globally popular for its bathware and sanitaryware products, the company started its journey in Bangladesh in 2015 through its local distributor Executive LifeStyles Limited. Meghna Executive Holdings, the parent company of Executive LifeStyles Limited, has years of experience in introducing high-end luxury products to the country, and is also behind the presence of other luxury brands like Apple, BMW, Penthouse Livings, etc.  

Since 2015, Kohler has come to occupy close to 3% of the sanitaryware market share in the country.

However, the company's vision is to grab 25% of the total market of Tk15,000 crore to Tk17,000 crore within the next four to five years, said Mydul Karim Nagib, deputy general manager and head of Sales and Operations at Executive LifeStyles, during a recent interview with The Business Standard.

Mydul Karum Nagib. Sketch: TBS

When and what motivated Kohler to enter the Bangladesh market? How does the company perceive the potential for growth and development in the local market? 

Kohler started its journey in 2015 in Bangladesh joining with Executive Lifestyle (a concern of Meghna Executive Holdings). It is the sole distributor of the foreign luxury bathroom products manufacturing company Kohler in Bangladesh. 

A 160-year-old company, Kohler manufactures bathware and sanitaryware items, as well as power generators. But here in Bangladesh, we are working with Kohler's bathroom and sanitary parts only. 

The reason for entering the Bangladesh market is luxury. People in the country are now very luxury product oriented, especially a certain class and those frequently who travel out of the country. 

As Kohler is an old brand with luxurious, lucrative and durable products, it is often considered as the initial choice of the upper class in Bangladesh. So the growth potential is also good.   

Competition in the market is huge though. And our main tool to compete with other companies is our products' quality and design. However, our competition takes place mostly with the importers of foreign luxury products.

Can you highlight a few projects and partnerships of Kohler in Bangladesh?

We have completed a number of hospitality projects in Bangladesh with our products. In 2023, three five-star quality hotels were built, and bathroom products of all those hotels were supplied by us. Of these, our most recent projects include InterContinental Dhaka and Renaissance Dhaka. 

Another mentionable project is Evercare Hospital in Chattogram, which has used our products. Besides, we have some other big projects running, while some more are in the pipeline, including a few five-star hotels. 

How does Kohler tailor its products and strategies to meet the unique demands and preferences of Bangladeshi consumers?

Kohler deals with luxury products. And washrooms have now become an integral part of their lifestyles. 

People now spend more time in the bathroom than any other part of the apartment. So, naturally, they want to make it unique and luxurious. 

This boosts the demand for luxury and innovative bathroom products. And Kohler always deals with innovative products. We now have 12,000 types of products here by Kohler including some innovative and intelligent products. 

We differentiate our products in two ways – analogue and digital. Digital products have sensors and can be used without any touch. 

As we, Kohler and Meghna Executive Holdings, have been working together for over eight years, we have a quality after sales service too. After sales service for these products is needed as people here do not know how to install the products, or how to maintain them. So we have trained plumbers and technicians to do it better.

We also have an experienced team for sales of luxury bathroom products. 

How does Kohler engage with local stakeholders in Bangladesh, and what role do these partnerships play in the company's growth strategy?

Our customers are high profile personnel. Builders of most of the high-end apartments choose our products. Some of them are collaborating with us.

Besides the high profile customers, the top level developers — Asset Developments, Shanta, BTI, Bay, Southbridge — and some renowned architects are our customers and well-wishers. They often refer our products to their clients. 

What are Kohler's long-term aspirations and vision?

In the future, Kohler may spread its sales prospects massively. Our target is to spread our business across the country. 

Currently, our outlet is only in Dhaka. We have plans to expand this to other cities including Chattogram and Khulna since markets in those cities are also booming now. 

The sanitaryware market of Bangladesh is worth around Tk15,000 crore to Tk17,000 crore per year as of last year. Foreign brands hold 20% of the share, while the rest of the market is filled by local brands. We occupy less than 3% of the sanitaryware market share. But our vision is to grab 25% of the total market within the next four to five years.

Although our product prices are high, we are thinking about how to reach more people. To this end, we are conducting studies and assessing the market now. 

Maybe Kohler will go into manufacturing in Bangladesh in the future. This will enable a sustainable market in this country and the prices will also come down. But it is a long-term plan. 

Furthermore, we are the sole distributor of Kohler in Bangladesh and we have yet to appoint any sub-dealers. Soon we may provide dealerships.