The FINANCIAL - Caparol Georgia Experiences 12% Growth, Reaching 42% Market-Share

Caparol Georgia Experiences 12% Growth, Reaching 42% Market-Share

Caparol Georgia Experiences 12% Growth, Reaching 42% Market-Share

The FINANCIAL -- Caparol, the leader in the field of building paints in Germany, ended the year 2014 with 12 percent sales growth in Georgia. Today Caparol Georgia is positioned on the local market with a 42 percent market-share.

“Since 2005 Caparol Georgia has had the yearly goal to increase its sales. During the last 10 years there have only been two occasions when we could not meet the plan, once - in 2009, when the world financial crisis was ongoing, and the second time - in 2012, when there was a period of government transition (the governmental power was being transmitted from the National Movement party to the Georgian Dream party),” said Davit Sehngelaia, Director at Caparol Georgia.

Caparol is positioned on the Georgian market with two brands - Caparol and Alpina. These brands contain sub-products which are lacquer (varnish), enamel, interior and exterior paints, decorative plasters and paints, and (facade thermal insulation systems) coatable wall coverings.

Sehngelaia said that building paints are the leading product on the Georgian market and are positioned as “the main locomotive” in Georgia. The company is represented in the premium and middle segments.

Caparol is a newcomer to the most prestigious business awards ceremony in Georgia - Golden Brand.

“There are many companies in Georgia which trade in paints or other coating materials. During the last 10 years many companies have entered the Georgian market, but could not manage to maintain their positions. The company Caparol is not just a producer or distributor company. 125 years of history and experience stand behind this brand. It is very important that customers feel support from the brand and its professionals. All customers are considered equal and deserve equal attention, whether they are a large development company or just a private individual wanting to paint a room.

“Professionalism, competence and responsibility for the products and service reflect the corporate culture of the company. I think that Caparol Georgia deserved to win the Golden Brand award because of all these features. For any brand it is very important to gain local recognition and customers’ trust. Trust in Golden Brand itself will result in confidence in Caparol’s products,” Sehngelaia said.

Q. What is the key to Caparol’s success on the Georgian market?

A. The company’s success in Georgia is a result of its employees’ everyday hard work.

German quality standards are well known to everyone. However, each brand and product needs to adjust to the local market. Taking into account Georgia’s cultural originality, Caparol’s management implemented German discipline and quality control in Caparol’s regional branch representation in Georgia.

Systematic and planned work, professionals who studied in Germany, and setting the right goals - are the guarantees of Caparol’s success in Georgia.

Q. How would you assess the current construction market in Georgia and how in demand are construction works?

A. In the past two years the construction market has grown in Georgia. Besides the growth, its development has been obvious as well. There is more interest in new systems and technologies now. Very interesting and innovative products have entered the Georgian market, such as facade thermal insulation systems. For now this is a new product and demand for it is low, but information about facade heating systems has been spreading in Georgia and its demand will increase I believe.

In general I would say that there are no quality standards in Georgia’s construction sector. In such a situation it is very difficult to compete with other companies that are operating in the same sector. Fortunately Georgian customers recognise and appreciate the quality of Caparol’s products.

However, the lack of construction standards enables the market to sell products which do not meet EU standards. As a result, this hampers the Georgian construction sector.

Q. Caparol is a German brand represented in various countries of the world. How would you characterize the Georgian market compared to others?

A. Caparol has a large number of different products. However, all countries and nations are different from each other and the products change according to the nations’ tastes/trands. The solvency of Georgian customers filtered Caparol’s production for this market.

The competence and experience of craftsmen are also very important factors, which also filtered our products. To solve this problem Caparol arranges trainings for those craftsmen who are interested in gaining more experience and knowledge.

Q. Caparol is distinguished by its innovative products. Could you please name some of those which the company offers Georgian customers?

A. During the past 10 years Caparol Georgia has introduced lots of novelties to the Georgian market. The first was a large choice of different colours. Our customers can mix the colours digitally on a computer, and then choose their preferred one.

Another innovation is the facade paint made by nano-quartz matrix (NQG) technology. With the pioneering NQG technology these paints provide clean, beautiful facades in the long term.

One of the latest novelties to have been introduced is the facade thermal insulation systems. This system makes buildings energy efficient, meaning that heating and cooling expenses are reduced by 50 percent.

Q. How does the company care for the environment, and how socially responsible a company is Caparol?

A. Despite the fact that there is no enforcement of standards in Georgia, Caparol with its German standards and quality still meets European-level standards.

The company’s products which are produced in Georgia contain no harmful substances for the environment or people. The process is conducted in a way that the waste that remains is just water, which is absolutely harmless for the environment.


Author: Galt & Taggart