Strong supply chains that cater to bespoke demands and provide reverse feedback and intelligence on trends are key to success, finds Frost & Sullivan’s Homes & Buildings team
The GCC ceramic tiles market is poised for growth. Urbanisation; new construction activities in housing, infrastructure, and hospitality; proliferation of high net worth individuals (HNI); and a demand for quality and cost-effective products are factors fuelling growth. In a vastly untapped market, opportunities exist in building local manufacturing or increasing multinational brand representation.
Frost & Sullivan’s research, Opportunities in the GCC Ceramic Tiles Market, Forecast to 2020, analyses growth opportunities, challenges, drivers, restraints, and technology trends impacting the market.
To access more information on this analysis, please click here. A macro-micro overview showcasing insights relative to global trends across industries is available for the Middle Eastern & North African (MENA)and South Asian (India) markets.
“The GCC is home to a large number of HNI, making it a natural choice for luxury and high-quality products. Tiles and construction materials are no exception,” said Frost & Sullivan Homes and Buildings Team ConsultantNideshna Naidu.
“The market’s key characteristics include fast-changing business and distribution models, a significant focus on marketing and promotional activities, and increased need for product innovation, differentiation, and customization to meet evolving customer requirements.”
As the market progresses, participants will be faced with several challenges, including competition from low-cost tiles from India and China, penetration of substitute products, changing customer preferences, and high raw material and power costs. Nevertheless, the market presents vast untapped opportunities.
To succeed in a competitive ecosystem, players should:
· Cost optimize through internal process efficiency;
· Differentiate with aspects like design, material, projects, and adjacent product offerings like flooring and building materials;
· Introduce new designs in line with bespoke and changing regional populace needs;
· Develop business models that proactively address exports in a structured manner;
· Build channel and brand loyalty through a robust set of marketing and promotional activities based on comprehensive research;
“Manufacturers and importers need to focus on developing strong supply chains that can cater to the bespoke demands with agility, and provide reverse feedback and intelligence on how trends are evolving,” observed Naidu. “This will be particularly useful in catering to high-growth segments like commercial, hospitality and residential, as well as satisfying Gen-Y buyers.”
Source: Frost & Sullivan.