Growing GROHE in Saudi Arabia

The Kingdom is a priority market for the pre-eminent German brand

Global Supply Chain was especially invited and present at the recent launch of the GROHE flagship store and showroom, the largest in the Saudi Arabia, in Bayt Alebba, the prominent bathroom and kitchen accessory repository in Jeddah, the Kingdom’s Red Sea bustling commercial port city.

GSC: How are the current market conditions looking for GROHE in Saudi Arabia?

FD: Market potential for GROHE in the Kingdom looks promising and we are optimistic about the future going forward. We anticipate further growth in business going forward.

GSC: In June 2022, GROHE established a new Regional Distribution Centre (RDC) in Dubai Logistics City…in partnership with Kuehne + Nagel. GROGHE currently has three Regional Distribution Centres (RDCs) in Dubai, Egypt and Turkey—do you plan to set up more?

FD: Currently, we do not anticipate setting up additional RDCs in the region or in Saudi Arabia and will professionally evaluate the requirement and viability. Our current network adequately serves us well but we continually monitor and review our processes and evaluate efficiencies in our system. Decisions are made if we can justify the case.

GSC: How did GROHE fare in 2022 relative to 2021, and what is your outlook for 2023?

FD: Our financial numbers for 2022 are good and we are very buoyed by our performance. We fully intend to maintain this momentum going forward in 2023.

GSC: Do you envisage production / manufacturing prospects in the region?

FD: This is an interesting question, and the short answer is I will not commit one way or another. I don’t rule out the possibility either for the long term.

As a pioneering company with high production and durability and reliance standards we have to professionally make a good case and carefully examine the ramifications of this move. It is based on multiple parameters including costs, investments, compliance, sustainability regulations, productions processes and a whole host of other considerations.

Suffice to say GROHE always takes these considerations seriously and evaluates and vets all factors before taking decisions of this nature and magnitude. I guess in short we will cross the bridge when we get there…in a manner of speaking.

GSC: Talk to us about GROHE’s CSR and Sustainability endeavours including water conservation and UN Sustainability Development Goals (SDGs)?

FD: GROHE is deeply committed to our CSR goals that include adhering to water conservation and the United Nations SDGs. Furthermore, GROHE is constantly developing and improving water technologies that meet our environmental sustainability goals.

GROHE offers a number of opportunities for consumers to reduce their environmental footprint, for instance, GROHE’s water-saving

Fawzi Dernaika

Leader, KSA, LIXIL MENA

Fawzi Dernaika has worked with GROHE since 2016. Currently, Leader, KSA, MENA; Fawzi develops, leads, and drives GROHE’s channel management strategy, cultivates relationships with customers in the region, manages national accounts, drives new business development, and specializes in full-scale project management, including budgeting, team management and establishing internal processes.

Known for his dynamic leadership style, exceptional problem-solving and analytical skills, Fawzi brings more than 17 years of experience to the role. He has built, led, and inspired teams to succeed and has a deep knowledge of the Saudi Arabia market.

Seasoned business development and project management professional, Fawzi has several milestones to his credit in achieving and exceeding sales forecasts while streamlining operations to increase efficiency, team motivation and profitability.

Fawzi holds a bachelor’s degree in Computer Science from the University of Balamand in Lebanon.

EcoJoy technology used in showers delivers the same luxurious showering experience while reducing water consumption.

GSC: What is your vision (short term & long term) for GROHE in Saudi Arabia?

FD: As the official at the helm for GROHE in the Kingdom of Saudi Arabia, I am mindful of the tremendous responsibilities I carry and will do my best to vindicate the trust reposed in me.

One of the top priorities for GROHE is sustainability which is now our corporate credo. We are deeply committed to reducing and even possibly eliminating our carbon footprint in the long run.

Zero carbon emission is our goal and we are confident we will fully comply with the ambitions of the Saudi Vision 2030 to attain these aspiring targets.

LIXIL aims to achieve world-leading technology and innovate to make high quality products that transform homes through meaningful design, an entrepreneurial spirit, a dedication to improving accessibility for all and responsible business growth.

GSC: What distinguishes the GROHE name?

FD: Focused on customer needs, GROHE creates intelligent, life-enhancing, and sustainable product solutions that offer relevant added value, as every product is based on the brand values of quality, technology, design, and sustainability thus mastering breakthroughs in the industry.

As regards quality, GROHE looks for an excellence that goes way beyond the surface

GROHE local collaboration:

To amplify its message of sustainability across the Kingdom and strengthen its relationship with Saudi society, GROHE brand is connecting with influential Saudi talents. The company teamed up with the Saudi architect and designer Khalid Hashim, founder of KH Elite Architecture. A champion of quality local resources, Khalid is a close collaborator with leading brands that translate important innovations in the best and most efficient way possible. Thus, GROHE’s collaboration with him is built on shared values and mission. Khalid is excited to incorporate the latest GROHE technologies and solutions in his designs.

of the products. In fact, from design to production and customer service we aim for nothing less than perfection at every stage. GROHE’s history of great German engineering, severe internal tests and numerous external certification processes are what gives the customers complete confidence in a name they can trust.

On the technology front, GROHE aims for the best ways of technological innovation, and works to take part in the latest digital advances by creating smart solutions that enhance customers’ experiences. GROHE’s team of in-house experts looks for ways to make the consumers experiment enjoyable, even when it comes to water.

GSC: What is GROHE’s marketing strategy for the GCC markets?

FD: GROHE brand has been committed to creating exceptional experiences for its consumers and to delivering the best with its engineering, innovation and design activities which strengthens the customers’ confidence in the brand.

It is GROHE’s commitment, to introduce more sustainability in the GCC, as the products work on conserving water, energy, and other natural resources across the value chain from procurement through production, distribution, end use, and product disposal.

GROHE brand is delighted to introduce this practice in the GCC, as they are seeking

Bayt Alebaa

long-term partnerships within Saudi, to support the nation with products that deliver sustainability, profitability, and efficiency.

GROHE brand also looks forward to increasing the opportunities offered by Saudi Arabia’s booming construction sector and pave the way to creating new innovations. GROHE is proud to support the Kingdom’s ongoing transformation, guided by the ambitious Saudi Vision 2030, as it sees tremendous potential for growth in Kingdom’s federal housing program and its robust hotel supply pipeline.

GSC: What differentiates GROHE from its competitors, and what will it add to the Saudi market?

FD: Construction output growth in Saudi Arabia is anticipated to rise by 3.2 percent in 2022, with a further annual average growth rate of 4 percent between 2023 to 2026 as indicated by Global Data. Quality construction is only possible with high quality specifications.

With GROHE, our Saudi Arabian customers are assured of an exceptional product experience.

As experts in water technology, it is our mission to develop superior products with outstanding features. Just like cars, showers have engines too. The exceptional quality, precision and sheer number of internal parts set GROHE showers and faucets apart from those of our competitors.

Bayt Alebaa is a specialized company that provides the best cladding and finishing solutions since the mid eightes as it follows the concept of ‘Raising the quality of life in society’. Bait Al Ebaa provides a unique finishing and building experience that gives its customers the space to express themselves and their unique choices based in the latest lines and best materials in the market.

Grohe

GROHE is a leading global brand for complete bathroom solutions and kitchen fittings and has a total of over 6,500 employees in 150 countries around 2,600 of them are based in Germany.

To offer ‘Pure Freude an Wasser’ (Pure Joy of Water) every GROHE product is based on the brand values of quality, technology, design and sustainability.

Focused on customer needs, GROHE creates intelligent, lifeenhancing, and sustainable product solutions that offer relevant added value and bear the ‘Made in Germany’ seal of quality: R&D and design are firmly anchored as an integrated process in Germany.

In the past ten years alone, more than 460 design and innovation awards as well as several top rankings at the German Sustainability Award have confirmed GROHE’s success: GROHE was the first in its industry to win the CSR Award of the German Federal Government.

All GROHE products come with a seal of exceptional quality, having gone through numerous quality and endurance tests before they go on sale. Our brassware, showers and thermostats and all the components that go with them have to endure the simulated effects of 20 years’ daily use – with especially hard water.

GSC: What is GROHE’s regional expansion and business outlook for this year? What is in the future for GROHE?

FD: As the global demand for commercial and residential real estate grows, along with government-led efforts to improve sanitation standards, there are ample growth opportunities for the market.

There is a definite trend towards more luxurious products. GROHE are committed to work with regional partners in the upcoming years to deliver seamless and sustainable designs to support sustainability and growth throughout the globe.