U N I V E R S A L PA I N T S
UNIVERSAL PAINTS
Paint Supremo Targets
Universal Coverage PRODUCTION: Timothy Reeder
Offering an end product developed by expert technical teams, Universal Paints makes a locally-produced, quality-guaranteed paint, and focuses on producing and selling quality in every colour it produces through its many affiliate stores.
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INDUSTRY FOCUS: CHEMICALS
the last 35 years. “We won’t look outside of South Africa,” for the moment,” states Diab. “Currently, we are primarily looking at regional - so within our Gauteng region - and then we will look at possibly expanding toward other regions, like the Cape and KwaZulu-Natal provinces.”
UNIVERSAL PAINTS CEO RHONE DIAB
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The specialised expert advice which Universal Paints offers is the result of many years of experience in this highly technical industry, which allows it to supply and service a broad base of consumers who understand the value of quality, longevity and expert service. It is a company which, although relatively young, is steeped in history, which CEO Rhone Diab makes clear as he takes us through the beginnings of its operations in South Africa. “If we look back to the very start, some 35 years ago, Universal Paints began as a family-owned business,” he explains. “It has shifted over time from being based around retail stores into manufacture, and then slowly moved away from the retail side to starting our own distribution outlets. Today, we have a factory and 16 privately owned distribution outlets.
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“It is quite a unique model as our route to market is through our Universal outlets - we don’t sell direct to anyone else apart from these license holders.” There are already plans in place to further build upon this current figure of 16 outlets, primarily to help secure its position within a competitive industry, as Diab details: “Last year, the family business was bought out by private equity, with the aim of allowing it to expand and grow rapidly. We operate in a very tight market at present, where we are not seeing huge growth, and as a result the only way to ensure exponential growth is through rolling out new stores. “Most recent, in April we opened a new outlet, and are hoping to open more before the end of the year.” These opportunities for the growth Universal Paints seeks, will be found exclusively within the domain where it has become so solidly established over
DIVERSIFICATION Along with its physical expansion and increased footprint, Universal Paints is targeting diversification in its product offering to tie in with its overall plans for dominance. “Incidentally, we have just brought out a whole new colour range, introducing 10 new colours in addition to the basic colours that we offer as standard. We will be looking at developing a couple of new product ranges that we have never put out before - more water-based products, like enamels, primers and wood care products. “That said, if an opportunity arose to buy a business we would certainly look at having it run in parallel to what we specialise in.” Universal Paints carefully selects its representatives, assessing each potential location for a new Universal store to ensure that it will be in line with the company’s overriding ethos. Evaluations are done on the prospective new owners as well as sites to ensure that it is in alignment with the Universal Paints strategy. There are supply agreements between the two parties, and all new stores need to comply with the new corporate identity. “We then help with the store set up, to be ready for trading. We are involved in staff training, and product knowledge. This is a logical way of operating, as well as highly innovative, and contributes to Universal Paint’s own bid to cover more ground over a larger area. “Each store has a large amount of independence,” Diab adds, “as long as they are not selling competing products to our paint, they are allowed to sell complimentary product that do not compete with the Universal Paint product.” This is a unique way of working and
UNIVERSAL PAINTS
gives Universal Paints an ever-increasing base of new customers. Aside from the constant view to expanding its store network, research and development is a key aspect of the company’s plans moving forward. “We’re always trying new raw materials and new resources, in order to create a better and more competitive end product. “We constantly have our eyes and ears open for anything that will fit into our model. If it is available, we will certainly explore the viability of acquiring those businesses,” says Diab. A STRONG MIX The key to ensuring Universal Paints continued success going forward will be through continuing to build the awareness surrounding the brand, as Diab explains: “Since I’ve been here we have re-updated the website and explored a lot more
//WE’RE ALWAYS TRYING NEW RAW MATERIALS AND NEW RESOURCES, IN ORDER TO CREATE A BETTER AND CHEAPER END PRODUCT// into using various social media and radio advertising, among other methods, order to get our message out there.” While not the biggest player in a highly competitive market, Rhone Diab highlights a number of key characteristics which serve to keep Universal Paints at the top of its own game. “Our turnaround time and deliveries to our stores are both very quick,” he says, “and we place a huge importance of the quality control of the product that we make. We make smaller batches of paint which means that we can spend much more time on ensuring
the quality of each individual batch. “The reason that we are able to offer such a superior product at a cheaper price than would normally be expected, is due the fact that we cut out all the associated middle man costs. As our tagline says - we make it, we sell it, you paint with quality.”
UNIVERSAL PAINTS +27 (11) 462 4284 marketing@universalpaints.co.za www.universalpaints.co.za
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Issue No.61
www.enterprise-africa.net
JEGIE PADMANATHAN:
People Are The Power
of Bidvest Prestige ALSO IN THIS ISSUE:
CCI South Africa / Thebe Tourism Group / RPP Developments / ALG Estates
A S F E AT U R E D I N
ENTERPRISE AFRICA
AUGUST 2017