Germany’s Hansgrohe accelerates India expansion with ambitious retail strategy

MUMBAI: German sanitary fittings giant Hansgrohe is expanding its operations in India with plans to open 50 new stores across the country this year.

Known for its high-quality faucets and showers, Hansgrohe currently operates in 78 Indian cities with 170 stores. This expansion follows the launch of a new ceramics line, now assembled locally in India.

A key player in the Indian luxury bathroom fittings sector, the company is delving deeper into the premium segment, leveraging its established brand reputation to capture a broader customer base as demand for high-end bathroom solutions grows in the country.

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"India is a very exciting growth opportunity for the organisation. We saw the momentum in the past six years, but even more, we see huge potential in the future," Marc Andre Palm, head of global brand marketing at Hansgrohe SE, told Mint. He emphasized that this substantial potential stems from rising purchasing power and a growing inclination towards luxury home products.

Gaurav Malhotra, managing director of Hansgrohe India, elaborated on the company's strategic initiatives, "The initiation of our assembly operations marks a pivotal step towards adapting our business model from import-heavy to a more sustainable, localized production. This not only helps in reducing costs, but also in strengthening our market presence." According to him, the assembly facility is in its initial phase, focusing on delivering products that cater specifically to Indian preferences and standards.

The retail expansion aims to not just increase Hansgrohe's footprint but also to transform how luxury bathroom products are retailed in India. By the end of the year, Hansgrohe plans to have a presence in close to 100 cities, including tier II and tier III cities, which are increasingly becoming significant market contributors.

Beyond expanding physical stores, Hansgrohe is actively engaging with the architectural and design community through its "Partners in Excellence" campaign. This initiative is designed to foster collaboration on creating luxurious, high-quality bathroom spaces. "We are positioned to be the go-to brand for designers and architects looking to create dream bathrooms that offer unparalleled levels of comfort and aesthetic appeal," Malhotra added.

The company's efforts are also visible on digital platforms where they run extensive campaigns to educate and engage potential customers about their offerings.

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Hansgrohe is keen on integrating a holistic bathroom approach, moving beyond just faucets and showers. "We are now looking at providing complete bathroom solutions that maintain a harmony of design and functionality across all product categories," Malhotra said. This holistic approach is aimed at ensuring that all Hansgrohe products complement each other, enhancing the overall user experience.

For Hansgrohe, India is the fastest-growing market and part of the top 10 markets globally, trailing behind major markets like Germany, China, the US, France, and the UK.

The Indian market offers substantial growth opportunities for Hansgrohe, driven by an expanding middle class and a notable shift towards premium home products. The luxury bathroom segment, although nascent, is rapidly growing due to increased consumer awareness and aspirations for luxury home décor.

Hansgrohe's strategic expansion taps into this potential, aiming to bridge the gap between luxury and premium offerings in the market, and positioning itself favourably among aspirational consumers seeking high-quality and innovative bathroom solutions.

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"We are now clearly among the top players in the luxury segment and are gaining significant visibility in the premium market as well. Although we don't have formal data, our leadership in luxury has always been established, and our presence in the premium space is becoming increasingly prominent. We estimate the total market opportunity in the luxury segment to be around 250 million euros," Malhotra concluded.