What gives you the edge in such a highly competitive market?
Thanks to our presence over the last 30 years and the recognised quality of the products, Ariston continuously increased its presence in this market, with several competitors appearing and disappearing in terms of the competitive scenario. In the water-heater sector, Ariston is the major player in the UAE market, with internal marketing estimations giving us a market share about three times larger than our nearest competitor.
What are some of the major trends impacting on the market here? Are green building and sustainability major drivers?
As a group, yes, this is a focus, with big investment in solar systems, heat pumps and energy-saving appliances. In the Middle East we are in the starting phase, with a lot of interest being expressed in solar. It will still take some years to reach a mature market level in this regard. Sensitivity to energy efficiency has still not matured here. I am sure this will happen in the next few years.
The low cost of electricity is not pushing users to save on energy consumption. However, the government is putting much effort into this new green trend, and the results will soon become apparent, with solar systems becoming more and more popular in both domestic and commercial buildings.
How has the economic downturn affected business regionally and globally?
Of course, the second half of 2008 and the whole of 2009 presented us all with a challenging scenario. From this altered economic perspective, new opportunities emerged, and if markets such as Dubai showed a slowdown, others such as Abu Dhabi, Qatar and KSA kept on at high levels, guaranteeing an overall good performance for the area. Emerging markets are still showing strong growth. Globally this has been the occasion to revise some procedures in order to consolidate the growth of previous years and to be even more competitive as soon as the markets again start pulling in the sales.
What is your outlook for the year ahead?
In our sector we probably still have to face the impact of the stopping of many real-estate projects in the region. Few new construction projects have commenced in the last 18 months, and this will mean little demand for water-heating appliances during 2010 and 2011. However, as stated, this will be compensated for by new markets that we are exploring, along with new opportunities arising from the new product lines that we are launching.
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Latest technology for the Middle East
The Ariston Thermo Group has launched a new range of electric storage water heaters (50 to 100 litre capacity) in the Middle East. Anticipating continuous technological innovation, and in respect of the latest European standards on energy efficiency, the Ariston worldwide product offering has been updated. Commercialisation of the updated range in the Middle East began in January 2010.
Technical specifications such as the heating element power rate, voltage, tank working pressure and external dimensions have not been changed at all. However, building on the strong foundation of the renowned quality of Ariston products, certain improvements have been introduced to all models in the range.
These include Nanomix technology, which guarantees improved performance due to new internal components, a new unbreakable external thermometer, new finishing technology for the external casing, new Italian-designed aesthetics and more resistant carton boxes.
The new PRO ECO model, thanks to electronic control, presents a wide range of features, including the BEST control system, the ECO function for energy-saving, a front LED control panel with a ‘smart’ thermometer, an ABS safety package that includes active electric safety, an anti-overheating system, an anti-dry heating function, an auto diagnosis function and an anti-bacterial function.
Titanium Plus glass-lined is offered on the PRO ECO model.
The existing Ti Tronic and Ti Tronic BEST ranges will be replaced by the new PRO ECO range. The existing SG R range will be replaced by the new PRO R range, while the existing SGHP range will be replaced by the new BLU R range.
The Ariston Thermo Group, a global leader in heating and hot-water products, has a leading position in three key sectors: water heating, central heating and air-con, and components. Its range includes wall-hung and floor-standing boilers, water heaters, solar systems, heat pumps and air-con.
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