Paint Market in Slovakia

An Expert's View about Sales in Slovakia

Last updated: 25 Jan 2011

MARKET BRIEF: Paint Market in Slovakia; 2009.

2009 MARKET BRIEF: Slovak Paint Market Demand & Success Factors © Pavol Kopec, MARKETiN Key Players & Distribution Channels August 2009 Associations & Trade Fairs SLOVAK PAINT MARKET The paint market in Slovakia is quite saturated, and very competitive. There are both local and international brands competing in the paint market. Quality for reasonable price is the key for success in the market. Demand & Success Factors The economic downturn has strong impact on the construction industry, and thus has implicitly quite a significant impact on the paint market in Slovakia, too. Sales of paints have been copying the sales in the construction industry over the last six month. So, construction firms as customer are buying less than last year. In terms of demand for paints and accessories, the biggest customers used to be big developers, but now smaller building firms and DIY customers are taking over the lead. DIY customers will continue visiting especially the smaller stores. There are a lot of quality products on the market, but low price and high brand awareness are now key success factors. Nevertheless, there is a potential for new breakthrough or innovative (not necessarily high-quality) brands/products, which represent high value for money, and must be heavily promoted through mass media (TV, billboards, newspapers, etc.). As price is still considered as one of the key success factors, in general, prices are expected to go down. Although, master painters and retailers are the customers who still prefer to buy cheaper products and are quite sensitive to price changes, majority of end users do not always look at price. They are accustomed to purchase in their preferred store with a good customer care, discounts and promotions. They seek advice from the paint shop owners, and are ready to buy even premium brands. However, such brand must impress them with their outstanding quality features (e.g. the ability of the paint to be applied only once). Key Players & Distribution Channels PRIMALEX Slovakia is the major local manufacturer, followed such producers as NOVOCHEMA or COLOR Company. PRIMALEX brand is a market leader with approximately 80% share on the Slovak paint market. In this situation, when existing brands are fighting for the market share, there is not much market potential left for new entrants in Slovakia. In general, it is deemed as very difficult to introduce new untraditional brands to the market, especially during these times of economic downturn. There are 12 local paint manufacturers in Slovak paint market. The following nine of them are members of the Association of Chemical and Pharmaceutica Industry ? ZCHFP ( ? associated within the Section of Paint Manufacturers: ? COLOR Company, s.r.o. ? EURO-VAT, s.r.o. ? FARBOL, s.r.o. ? CHEMOLAK a.s. ? INEX, s.r.o. ? NOVOCHEMA, dru?stvo ? PAM-ak, spol. s r.o. ? PRIMALEX SLOVAKIA, s.r.o. ? SLOVZINK a.s. MARKET BRIEF: Slovak Paint MARKET Page 2 of 4 LOCAL PAINT MANUFACTURERS TOWN WEBSITE COLOR Company, s.r.o. Dubnica nad Váhom ELASTIK, s.r.o. Bohdanovce FARBOL , s.r.o. Bratislava Farby-Laky Ko?eca s.r.o. Ko?eca H-COLOR, s.r.o. Nitra CHEMOLAK, a.s. Smolenice INEX, s.r.o. Bratislava MATADORFIX, s.r.o. Bratislava NOVOCHEMA, dru?stvo Levice PAM-ak s.r.o. Chorvátsky Grob PRIMALEX SLOVAKIA, s.r.o. Dolný Kubín SLOVZINK, a.s. Ko?eca Then there are also many brands of Czech manufactures (such as BAL Praha, COLORLAK, BALAKOM, BARVY TEBAS, etc.) present on the Slovak paint market. But there are many other representatives of foreign manufacturers operating on the Slovak market - e.g. Caparol (Germany), JUB (Slovenia), HELIOS (Slovenia), DuLUX (U.K.) and many others. There are mostly importers supplying paints and accessories (e.g. COLOR EXPERT ? belonging to the Color Expert group of biggest European distributor of paint tools, SCHULLER EH´ KLAR, FINESA farby, etc.). Wholesaling is rarely used as a distribution channel. Manufacturers often distribute their product directly to retail stores. Distributors are often bypassed as they are not able to serve all smaller brands. As regards retailing, there are mostly single specialized stores, and a few small retail chains present in the Slovak paint market. But some products are also sold through such DIY supermarkets as BAUMAX or HORNBACH. With 32 retail stores operating under the same brand name ?Kúzlo farieb? (Magic of Colors), BAL Slovakia s.r.o. - a representative of Czech paint manufacturer BARVY A LAKY HOSTIVA? a.s. ? belongs to the biggest retail chains in Slovakia. COLORLAK, a Czech paint manufacturer operating a retail chain with the brand name ?Svet profi farieb? (World of Profi Colors), has its local daughter company COLORLAK SK, s.r.o. in Slovakia, which also operates a chain of stores under the brand names FEB (12 stores) and ColorProfi / Technicolor (3 stores) . U.S.-based manufacturer KolorMax operates a chain of 10 retail stores under the brand name ?Dom farieb? (House of colors), plus another 4 retail and 9 wholesale shops. Other retail chains include BBG s.r.o. with 8 retail stores or BLISS a.s. with 4 retail shops. As for alternative distribution channels, is claimed to be the biggest on-line shop with paints and tools. Associations & Trade Fairs Associations: ? Guild of Painters in Slovakia ? CEMAS:; Tel./fax: +421 (0)36 6345328; ? Association of Chemical and Pharmaceutical Industry (Section of Paint Manufacturers) ? ZCHFP:; Tel.: +421 (0)2 48209001; Fax: +421 (0)2 43638047; Trade Fair: ? Incheba a.s. ? organizer of the largest construction fair in Slovakia (upcoming fair: 23 -27 March 2010; see: MARKET BRIEF: Slovak Paint MARKET Page 3 of 4 CONTACT MARKETiN You are welcome to contact the author of the document. Pavol Kopec (PhD.) Director & Senior Consultant MARKETiN Tel.: +421-33-7878811 E-mail: Pavol Kopec, Ph.D. - Director & Senior Consultant As a director and senior consultant of MARKETiN, Pavol has led and conducted numerous market research, competitive intelligence and strategy consulting projects, especially for leading global companies from heavy- industry and related business-service sectors, and assisted them in entering Slovak, Czech and other CEE markets. Besides his experience as a business strategy and marketing trainer for various companies, Pavol also acts as a marketing lecturer at the University of Economics in Bratislava. Prior to establishing MARKETiN in 2003, he worked for such companies as Euromonitor International, Bauer Consulting, Accor Services, Ability Development and Satur Travel. Pavol recieved a masters degree in Trade & Marketing and Ph.D. in Industrial & Cross-Sectoral Enonomics at the University of Economics in Bratislava. Pavol is fluent in English, Slovak and Czech, and able to understand some German, Spanish and Russian. For more information about MARKETiN, please visit our website: MARKET BRIEF: Slovak Paint MARKET Page 4 of 4
Posted: 15 January 2011, last updated 25 January 2011

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Paint Market in Slovakia   By MARKETiN CEE s.r.o.
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