Goodwin: Bet on the premium segment

Relative to the previous year, we have grown by about 16%. And although initially the plans were more ambitious, on the whole I am happy with the results. In the ratio of systems of economy class and premium there was a good castling, the emphasis shifted to more expensive systems. As a result, the share of wide 70-ies systems in the premium segment increased. Due to the strict selection of components from German brands, we managed to enter the middle + and premium segments. In Ukraine, this niche only appears, and we are one of the few companies on the market that can produce large volumes of premium segment products - up to 1000 units per day - and ensure the proper quality. We took a rather serious bridgehead in this segment and continue to develop. I consider this to be the most important achievement of last year, especially considering the depressed state of the Ukrainian window market. The market growth in 2017 was about 15%. This is a positive moment. From the negative - the weak awareness of the end customer and the fact that neither producers nor sellers are working to improve the situation. This is a rather difficult path, and very few people want to go on it. As a result, the customer buys low quality products, even without realizing it. What the client expects from the product from the category "plastic-plastic European windows", so far that does not comply with the European quality standards.
As a result, the market is increasingly saturated with low-quality products. And the longer this continues, the more difficult it will be to change the "reputation" of the brand "metal-plastic windows" for the better in the eyes of the buyer. If the confidence in metal-plastic windows in people will continue to fall, this will negatively affect all market players. Therefore, the attitude to quality sooner or later will still have to change. We are ready to participate in the introduction of qualitative changes in the window market as part of specialized organizations, collectively. But I do not see any prospects in this direction. Many companies are simply busy with the issues of survival and are struggling for a place in the sun. The primary goal of the majority is to produce as much as possible products and earn money.
On an individual basis, we do a lot to popularize a quality product. An important event of 2017 was the opening of Goodwin show room , where it is shown that metal-plastic windows can perform much more important for comfort and energy-saving functions than simply closing an opening in the wall.
We want to inform the market that there is not only a cheap economy segment, which is most often offered to people. I want to show how this market is seen by its ancestors - Europeans, in particular, the Germans. This is the highest quality product that is created using the right technological processes. The first reaction was different. Some initially reacted with caution, perhaps even felt some kind of competitive environment for themselves. But, realizing that the showroom was created for the benefit of partners (in the new show-room dealers have individual access, convenient time to visit, comfortable conditions for negotiations, - Ed.) , began to actively lead potential customers. I'm sure that they will change. The trend of energy efficiency has become global, energy resources will continue to appreciate, and in such a vast territory with a large population like Ukraine, this is inevitable. Therefore, in any case, the requirements for energy efficiency of windows will increase and quickly approach the European ones. Actually, there was no reorientation per se. Complex systems have always been our guide. Even at the time when we worked with other profile systems, the major part of the components was German profile systems and German fittings - from 70% to 90%.
Full transition to European components is the next stage of the company's development. Compared with the development of the whole market in the next 2-3 years, the premium segment will lag slightly behind, and then it will begin to grow rapidly. The fact is that 3-4 years after the boom of sales in the economy segment, everyone who has set up such windows will be able to see in practice the minuses of their operation: these are high payments for heating, and wear of components, and general discomfort from the "cold " window. When negative information about the operation of cheap windows will become widespread, the premium segment will begin to grow. Yes. Economy segment will be popular still some time. In parallel, stronger players will strengthen their positions in the competitive market and then begin to think in the future and make a quality product. And then to replace the "cheap windows" will come windows of the middle + and premium segment. We will act step-by-step and work in all directions. We will expand, having previously strengthened the main positions of (in the East, Southeast and in Central Ukraine, - Ed.) . Our key goal is to increase the quantity of products and increase the average + and premium segment.