Socioeconomic status:
In 2013 the economy grew by 7.7%, its lowest growth rate in the past decade. After a period of intense development, the country is now working on the consolidation of a more balanced,consumer-oriented model. The Government has openly committed to liberalizing the economy and stimulating local demand by implementing far-reaching structural measures. For example, it aims to implement new urban development schemes to accommodate population migrating from rural areas. As a test bench for the economic reform, the Shanghai free trade zone was opened in September for a trial period of three years.
Business developments and prospects:
The increase in labor costs has greatly affected all industries and has forced us to make extra efforts to maintain operating margins. Despite the cooling market and the depreciation of the yuan, we have managed to improve sales figures and slightly increase our gross profit. The Group’s comprehensive bathroom space, reinforced by faucet and shower launches, has proved decisive to maintain the confidence of the country’s leading construction companies and gain market share. Roca and Laufen continue to sell well as premium brands due to a strategic presence in high-end hotels and the launch of Roca’s new Alba series, which meets this market’s demand for total technology solutions. With the aim of consolidating our brand image and creating a space for engaging with product recommenders, we opened the Roca Shanghai Gallery in June 2013.
Relevant facts:
• China Kitchen and Bath Fair in Shanghai
• Key projects: present in over thirty 5-star hotels
• Sponsorship of Ma Qinghua, first Chinese F1 driver
• Launch of Roca’s new Alba series