New focus

Since it closed its 40-year-old factory in Las Piñas in November 2004, American Standard Phils. has reinvented itself into a distribution company eyeing the high-end market.

"What the plant was producing was not being absorbed by the local market, more so the other markets in Asia. The local market preferred Europe-inspired designs," said country manager Felipe Bernardo.

Last year, the sanitary wares business sold 500,000 units, largely divided among three major players, all of which are foreign brands. This year, the industry is expected to grow by 10%, mainly from the high-end or premium lifestyle market.

"Housing starts and office buildings have been escalating and this is due to the growth in the level of remittances of overseas Filipinos," said Bernardo. "Even in existing buildings and homes, there is a growing trend towards refurbishing units for more minimalist bathrooms and for life-stylish comfort."

Positioning

The Philippine company is wholly owned by American Standard USA, the world’s largest kitchen and bath company.

Locally, the company’s current focus is in supplying bath tubs, jacuzzis and spas that could cost as much as P300,000.

"We intend to make more products available locally. We also intend to reestablish our dealership network. We want to actively promote our designs innovations (like the freely health feature in all our product such as anti-bacterial fixtures in the seat covers and water closets) and new technologies such as low lead content faucets, fittings, and showers," said Bernardo.

In the medium-term, the company will introduce the replacement market for parts and fittings as well as after sales service.

"These are entirely new concepts in the sanitary wares business. Once we have done this, our company can be truly called a provider of total bathroom solution," said Bernardo.