Idleness a Dangerous Enemy for Success

Q: How has Corev adapted to the Mexican market in the last few years?          

A: We have lived through different stages in Mexico and have always adapted and kept moving forward. 2020 will be another challenge and as a company, we have learned to adapt our operations to the cyclical nature of the economy and the construction sector’s performance. We have focused on optimizing specialized product lines that participate in market segments that are not so reliant on economic growth. For example, there is a boom in exterior insulation finishing systems (EIFS) and we offer a good solution for this market. During hard times, people do not build big but improve what they already have. Corev offers high-end decorative products and products related to refurbishment and major maintenance. 

Additionally, during 2018 we created a strategy that allowed Corev to take a step forward and directly reach the final consumer with do-it-yourself (DIY) products. We recognize that there is a huge market segment of people, from roommates to families, who prefer to do things by themselves when it comes to creating distinctive spaces in their homes.

Q: How important is your distribution network in your future development strategy?

A: Corev manufactures and commercializes products but does not install them. Corev’s core business model includes working with a distribution network. We do not compete in direct sales with our partners and we understand that their strength lies in promotion, commercialization and installation services.

Our goal is to maintain this business model, working with 180 distributors throughout the country. We will continue supporting our distributors when opening multibrand or Corev-exclusive stores.

Q: Does the Mexican market tend to favor quality over price or is it the other way around?

A: Unfortunately, in Mexico price trumps quality. This is one of the main problems in the industry. Corev has been innovative in every way and we have lost business because we are not willing to lower our quality to offer better prices. We are focused on being the best product in the market. Furthermore, all our products are 100 percent water-based. Recently we sponsored a norm with a group of companies, to outline the characteristics of bio or sustainable products. In an open-legislation market without clear rules, clients may find fake environmentally friendly products and we would like to avoid that.

Around 40 years ago we launched textured finishing products, the first products of this type in Mexico’s market, and today almost every brand has them. We continue to bet on innovation and being trend-setters, we have a high-end decor line in which we are pioneers and we always work to comply with projects specifications.

Q: What products is Corev developing for the Mexican market besides its DIY line?

A: Part of our strategy is to change our retail concept. We are moving away from being a company that packages 19L buckets only. We are becoming a company that deals with smaller packages that can be sold in big retailers to satisfy current market demands. We don’t want to lose customers that only need a small quantity of product.

Q: Where else do you want to position Corev’s products?

A: Corev is well positioned in the hotel and the health industry, both public and private. We have projects with IMSS, ISSSTE and private hospitals. We are in almost every sector. In interiors we compete with finishes similar to ours but in facades we have a wide range of competitors like stones, glass and metal used in many corporate buildings.

In the near term, we will focus on efficiency in costs and expenses and we have already started preparing in case sales stagnate. Our second priority is innovation. Our goal is to reinvent ourselves every day. After many years of doing the same things, we have started doing things differently in terms of applications and commercialization. This will carry us forward.   

Corev is a company focused on the production of decorative coatings and paints. The company was founded in 1980. It has a strong distribution network throughout the country and is present in North, Central and South America