L-R - Shiozawa Kazuyuki & Kokubu Yohei San
What according to you is driving the demand for premium sanitaryware across India and how do you plan to tap that demand.
Shiozawa Kazuyuki - Post-Covid, people are spending more time indoors, prioritizing hygiene and cleanliness. Historically, bathrooms in Indian culture haven't been a focal point, but I've observed a shift. Many now seek bathrooms as spaces for relaxation, inspiration, and mental rejuvenation, beyond just personal hygiene. Recognizing this, we see a growth opportunity to promote our products, centered around hygiene, cleanliness, and confidence.
Kokubu Yohei San – To tap the growing demand, we are enhancing communication with Indian customers. Previously, content from Japanese headquarters didn't resonate locally. Customers praised our brand but sought Indian relevance. To address this, we're introducing a new strategy featuring Indian actors, context, and dramatic storytelling to promote our integrated toilet and electric bidet. We're also planning other activities aimed to connect with Indian customers and better understand their needs.
What are your sales and distribution network expansion strategies
Kokubu Yohei San - We have a strong network of 100 outlets in India, mainly in tier 1 and 2 cities. However, we've identified potential in tier 2 and 3 cities and rural areas. From this year to 2027, we plan to double our network presence. While TOTO is known for premium products, we also aim to cater to mass market demands. As the next generation's purchasing power grows, we'll adapt our marketing strategy to meet their needs in the Indian context, expanding our network strategically.
We offer more than just quality products; we provide comprehensive services. Therefore, our sales network expansion isn't solely driven by logic. Without robust sales support, customers may be disappointed with our services. Over the past decade, we've focused on strategically expanding our sales network, particularly during peak seasons
How are you planning to scale up the after sales services?
Shiozawa Kazuyuki - Our technicians receive global training, adhering to a unified curriculum worldwide which is same across India, Vietnam, Japan, New York, and China. So, every year we do some planned exercises for them. We have sixty technicians on our rolls in addition to technicians of the distributors. We regularly arrange training sessions for the technicians and upskilling them.
TOTO India plans to enhance its regional presence and strengthen its dealership network through its Authorized Channel Partner (ACP) and Authorized Channel Dealer (ACD) programs, ensuring better accessibility and availability of its high-quality products nationwide. By increasing market penetration, especially in Tier-2 and Tier-3 cities, TOTO seeks to bring its innovative and sustainable sanitary ware solutions to a broader audience.
What are the challenges for the company?
Kokubu Yohei San – Our business relies on understanding customers and educating them. We thoroughly test every aspect, from dimensions and performance, measuring each and every aspect of the product so that their quality and performance justify their cost. However, customers often prioritize price over performance. This presents a challenge - communicating our products' performance to customers. Only after using our toilets do, customers appreciate their true value. To address this, we're targeting the premium market segment and then making way to other market segment through word of mouth and our focusing on domestic utilities to cater to Indian customers' specific needs.
What is TOTO’s ‘Make in India’ philosophy of growth?
Shiozawa Kazuyuki - TOTO marked the 10th anniversary of its state-of-the-art manufacturing plant in Halol, Gujarat. Since its inception in August 2014, the plant has been producing products that adhere to Japanese quality standards and has significantly contributed to the company's growth, with output increasing by 400%. Employing nearly 1,200 workers, 80% of whom are from the local community, the plant exemplifies the brand's commitment to regional development and employment.
Currently, India forms about 4% of TOTO’s global market and it caters to Indian demand only. India is a strategic market for TOTO, and we are excited about its immense growth potential. The increasing urbanization, rising disposable incomes, and growing awareness of hygiene and wellness are driving the demand for premium bathroom solutions. We aim to strengthen our foothold in Tier-2 and Tier-3 cities by expanding our dealer network and introducing a wider range of products to cater to diverse consumer preferences.
What are the future plans for the Indian market?
Shiozawa Kazuyuki - We are witnessing steady rise in demand for our products. Our goal is to triple the sales volume by 2030. Apart from growing the retail business, we are now focusing on partnering with top developers in each city to drive expansion. There are plans to launch a new range of products, further solidifying our presence in the market. By combining its manufacturing prowess, innovative product portfolio, and expanded dealer network, TOTO aims to become the preferred choice for premium bathroom solutions in India.
Kokubu Yohei San - By 2030, our objective is to build robust brand awareness, expanding into high-potential regions, and adding consumer-centric products informed by market research. Considering diverse Indian preferences on colour, usability, and utility from architects, designers, developers, and consultants, we'll adapt to regional needs. With India key to our global growth, our focus areas are expanding presence, enhancing offerings, and communicating durability and profitability to clients.
