Legrand's Pricing Power Supports Margin Expansion Despite Declining Volumes

Legrand has established itself as a dominant player in electrical equipment, enjoying a leading market share in two thirds of its product ranges. Its brand reputation for reliability and an extensive product range have created close-knit relationships with the key participants in the sales channels, creating high barriers to entry and resilient profitability. While the majority of its products are sold via major distributors, the key decision-makers in electrical equipment are electricians, who act on behalf of the end user. Legrand’s push-pull strategy reinforces its close relationships with stakeholders by offering distributors an extensive product range of over 300,000 products and frequent training on its regular product innovations to installers, who are largely insensitive to price and who value reputation and ease of installation above price.