Ariston, the foremost and an international brand in the Ariston Thermo Group, is the global expert in the heating and water heating sector. The firm which has become a strong force to reckon with since its foray into the Nigerian market continues to make a strong statement through the quality of its products. In this interview with Businessday, Director, Central Africa, Ariston Thermo Group, Gaurav Bisaria speaks on the significance of the Ariston Comfort Challenge, the drive by the company to tap into Nigeria’s enormous potentials and how the business is approaching prevailing economic challenges among other issues. Excerpts.
You recently introduced Ariston Comfort Challenge in Nigeria, what is the challenge all about?
Iam sure a lot of people would equally be wondering what it is all about and what we intend to achieve. Essentially, Ariston Comfort Challenge is a mission, actually the biggest mission that the Company has ever undertaken. Since 2018 Ariston has supported science and research in Disko Island, in Greenland, thanks to the Ariston Comfort Challenge: a mission to bring sustainable comfort to everyone even where it seems hard or impossible to find.
Ariston has donated a warm shelter to the University of Copenhagen’s researchers to study what happens to the Arctic ecosystem during wintertime, the consequences of climate change on the ice sheet and glacier, on the wildlife and on people that live in the area. Looking for a way to improve both ourselves and the community, taking care of our environment and developing knowledge and common consciousness of our footprint. The project was also a confirmation of the quality of our products through what can be described as a Product Torture test. The Challenge offered us the opportunity or privilege to showcase to the world the quality of the products that we offer.
As a company, we place a high premium on sustainability and would ensure that whatever we do beginning from product design, the environment we operate and all other things, sustainability remains at the core of it all. For us, we remain committed to our vision of delivering sustainable comfort everywhere in the world, even where it seems impossible. If you look at what is happening around the world, climate change has been a topical issue that organizations, countries are now looking at to determine what the future of the environment would look like.
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Given what our business represents, we felt it would be significant to take a bold step by supporting research that would help improve the cause of knowledge in science as far as climate change was concerned. Besides, the Challenge also offers the opportunity to see what is possible for some of the products if put into use in extreme weather conditions.
With the Challenge, the company has been able to prove that regardless of the climatic conditions, our products stand miles ahead of others owing to the quality.
Why do you think the Comfort Challenge is relevant to the Nigerian Market?
For a country like Nigeria with a huge market, it is imperative to showcase the Challenge so that Nigerians can begin to see what is possible with Ariston Water Heater products. Ariston Comfort Challenge is not only a global campaign, it is a mission which represents Ariston’s values. So, it would not be out of place if Nigerians get to see some possibilities about the products especially when you are found in extreme conditions. This alone reinforces the product quality and superiority. With such a Challenge, our focus is to drive brand awareness and affinity.
You have started to deepen your market share in Nigeria, Africa’s populous market, what informed this recent move? What are your market penetration strategies?
For me, I think setting up a branch in Nigeria was a strategic move that is aimed at bringing focus on SSA’S largest market because we see a huge potential in the Nigerian market. In Nigeria, factors such as high population, growing Middle Class and extremely low penetration remain key drivers for growth for this category. People are starting to realize the importance of a good quality water heater at home.
With regards to penetration, I think, as the market leader, we are driving adoption and category awareness led by “Importance of Hot Water” and we are delighted that it is yielding fruit.
We provide a safety valve which when properly installed protects the Water Heater and consumer against high pressure. The product also comes with Safety & Cut Out thermostat to cut off heating when it reaches the desired temperature.
We understand that there are different sizes of Ariston Water Heater products in the market, how pocket friendly or affordable are they?
I can categorically say that Ariston is highly competitive among the product offerings in the market. I think the major challenge for us is that consumers in Nigeria do not know that they can afford the Italian Quality Ariston Water Heater for a family starting as low as N16, 000 for Instant WH and approximately N25, 000 for a storage WH. It depends on product size and customer requirement. However, it is good to know that things that are beginning to change.
Statistics show that your annual global sales value is 1.7 billion Euros, how much of these sales are from Africa, Nigeria?
I think, going by the penetration of Ariston products in Africa, there has been a quantum sales figure but I would not want to go into that. But by and large, sales in Nigeria and other markets are growing.
Satisfactorily, we are doing quite well and we aim to keep on growing thanks to all the investment in innovation and sustainability, which guarantee to offer our customer a wider and wider range of products, with very high quality and durability. We are hopeful that Africa would strengthen its position as a major market for Ariston products in the nearest future.
Ariston is into water heater production and sales, how does your product compete with others in the market and what would you say is the importance of hot water for bathing?
As far as the Water Heater industry is concerned, we are the most preferred brand in Nigeria. This is because our products are noted for their superior quality and are made in World Class Manufacturing (WCM) facilities. Beyond that, we have way ahead of the competition as we constantly involved in innovation which comes as a result of research and insight from our customers. This research has contributed a great deal in upgrading in product features, efficiency and range. We are transparent in the service we offer to customers. Take for instance, if we say water heater is 15Litre it has 15Litre capacity, unlike some other brands.
Also, what stands the brand out from other competition is the fact that the Power options for the most popular storage capacities in our product portfolios are carefully selected to 1.2 & 1.5 kw unlike some other brands offer higher power.
The importance of the hot water bath is legion. Hot Water bathing induces feelings of comfort and easiness. It is an action that allows our mind, and subsequently, our body, to relax. Besides, it enables us to sleep better. Besides, hot water bath helps to relieve body pain and make them heart-healthy, and a temperate bath with hot water can also help our immune system to better fight off germs.
You have 26 production sites in 15 countries, what factors will make you think of having a factory in Nigeria?
I think having a factory located in a country like Nigeria is subject to some factors. Right now, certain factors are critical which I discover could hinder the chance of setting up a factory in Nigeria. As we speak, one major hindrance to setting up is the size of the market. Currently, the demand for water heater has not reached a level that would require establishing a factory. Although the market is growing in leaps and bounds, it is hoped that it would grow to become a major part of the economy.
What do you see as the peculiarities of the Nigerian market when compared with other markets in Europe and Asia?
The Nigerian market is a very challenging one compared to any European or even Asian market. But I think the biggest challenge comes on account of the not-sogood experience faced at the Port as well as the ever-increasing logistics cost that put so much pressure on the companies. As a result, businesses including ours are left with no choice but to pass on these costs to the end consumers. From experience, sometimes the cost involved in getting the container from Italy to Nigeria is lower than transporting it from Apapa to Ikeja within Lagos.
Another big issue is the lack of awareness on the part of the consumers to know which one is of great quality or substandard. This challenge has led to the increasing influence of middlemen who now make a quick buck from hapless and poor consumers. Another major issue we have to contend over time is poor installation undertaken by unskilled installers which sometimes give the first impression about our products. But we are delighted that things are already changing thanks to the big effort we have undertaken in training professional installers.
We are doing quite well and we aim to keep on growing thanks to all the investment in innovation and sustainability, which guarantee to offer our customer a wider and wider range of products, with very high quality and ‘ durability
