Geberit Is Well Positioned to Navigate a Challenging Outlook for European Construction Market

Geberit is the largest player in the European bathroom sanitary sector with a full range of capabilities on both sides of the wall. Exceptional and stable profitability is due to its brand reputation and close relationships with the key decision-makers for sanitary products, such as plumbers and retailers. While Geberit's brand reputation for reliability underpins its pricing power, its relationships with intermediaries is equally important to withstand competition. Geberit's end customer lacks meaningful expertise in behind-the-wall sanitary products and instead places complete reliance on specialized installers such as plumbers. 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 the intermediary.