Geberit AG

GEBN: XSWX (CHE)
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CHF 774.00LwnnsZgfbxplh

Geberit's Reputation and Sales Model Supports Best-in-Class Profitability To Be Maintained

Business Strategy and Outlook

Geberit’s strategy is aimed at reinforcing its competitive advantage, which supports the group’s exceptional returns on invested capital and high profitability. Geberit’s “push-pull” sales model has successfully created long-term brand loyalty by educating and turning key decision-makers (wholesalers and installers) for sanitary products into business partners. Behind-the-wall products place particular importance on brand reputation and relationships with key-decision-makers that are incentivized to sell higher-value products, which makes it extremely difficult for competitors to penetrate Geberit’s existing core markets. Continuous product innovation and product range extension justify price increases, which are ultimately passed on to the end consumer, who lacks understanding on behind-the-wall sanitary matters and relies on support of their intermediary.

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