Jotun Decorative is a leading paint supplier to commercial buildings, public buildings and homes, serving both professionals and home owners, directly and through a substantial network of Jotun Multicolor centres.
Another good year
Jotun’s record-breaking performance in the Decorative Paints segment was supported by improved gross margins due to the stabilisation of raw materials prices, solid growth in premium paints and growing success in the medium range market. Due to slow economic conditions in some countries in the Middle East and South East Asia, Jotun experienced a decline in sales in the project market, which lowered overall volume. However, Jotun exceeded expectations in some markets (e.g. Egypt, Turkey, Cambodia and Myanmar). And even in larger, more challenging markets like Saudi Arabia, Jotun gained market share and outperformed competitors.
Jotun’s global network of about 8 500 dealers delivered significant profits in 2019. The company’s success was due in part to the introduction of a number of programmes to support dealers. For example, the company completed the implementation of a programme providing shop owners with detailed financial data and incentives to make better business decisions. Jotun has also implemented a programme to train shop sales staff, intended to create a better shopping experience for customers. These programmes, combined with an ongoing effort to encourage dealers to invest in shop upgrades, have supported positive growth.
In markets where Jotun’s business relies on professionals, Jotun trains and certifies painters. Jotun is also working more closely with project owners, architects and consultants to ensure Jotun products are specified. To promote Jotun’s colours and finishes, Jotun Decorative also offers architects and designers a two-day training course to teach them the art and science of how to use colours and different paint finishes to enhance both the appearance and durability of buildings and living spaces.
While Jotun Decorative will continue to focus on the premium market, the company has also launched medium range products in all regions, including Durosan Action and Easycoat in the Middle East, Jotaproff Prima Air in Scandinavia, Jotaplast in South East Asia, and Fenomastic Macun in East Europe and Central Asia. Jotun has also launched an internal training initiative to improves sales within the project market.
Taken together, Jotun’s focus on product innovation and the development and implementation of internal and external programmes to support different stakeholders, will help the Decorative Paints segment continue to be Jotun’s most consistently profitable business in the years ahead.