Texture as a DiferentiatorThu, 01/11/2018 - 12:19
Q: How has Corev’s learning curve venturing in the Mexican market been?
A: Corev started 38 years ago due to the lack of texturized products on the market. Our business line has partly evolved from previous experience with similar products. When entering the Mexican market, we had high sales volumes, as there was no similar option. But texturized products soon became an asset and the added value we provided evolved as we began to differentiate ourselves with high-quality products that can be combined with other materials to provide decorative details to projects. So, we moved from big volumes to a differentiating value. Nowadays, our market competition is based on similar substitute products, but there is not yet an identical offering.
Regarding finances, the company started with private capital and private banking. Corev is a 100 percent private owned company, so we do not have any public offerings or listings. We look for private financing when needed, such as when developing our plant in Colombia four years ago. Something to highlight is that our products are water-based, implying greater sustainability. Because we are positioned as a quality provider, we import many of our raw materials form North America.
Q: What is the main added value that your products offer?
A: All our products are sustainable, technologically advanced, made with high quality materials and ready to use. We have an EIFS system for light facades with thermic isolation. This system was developed after WWII for quick infrastructure reconstruction, so it has the advantage of allowing a fast and insulated application. Market trends are calling for LEED certifications and the EIFS system provides credits for this rating system. It was not easy to introduce this technology to Mexico, but now it is in high demand.
Q: Who are Corev’s main clients and partners?
A: Our main clients are from the hospitality, health, commercial and residential sectors. For example, we have been closely working with important private and public hospitals in the remodeling and interior design of several health facilities. We do not sell directly, so we do not bid for any projects in tenders. We also have a strong relationship with prestigious and well-known architecture firms, such as Legorreta and Serrano Monjaraz. Nowadays, however, emblematic projects are no longer managed only by brand name firms and small studios are becoming more and more important. We are also diversifying our market channels, testing new ways to reach our market directly. For example, for our decorative lines, we are implementing a do-it-yourself application set of products that we will soon launch.
Q: What is your assessment of the US and Mexico’s markets for texturized finishings?
A: I think the US and Mexican markets are very similar regarding finishings. The difference lies in the distribution chain. In the US it is very hard to find a construction distributor as the business model is more mainstream. In Mexico it is more common to have turnkey distributors that buy and commercialize products and also provide installation services. Our plant in Houston mainly supplies Texas and other nearby areas, while in Mexico and Colombia the logistics and distribution allow our plants to supply across each country.
Q: What is the legacy that Corev wants to leave in Mexico and what are the company’s growth plans?
A: Our vision is to continue as the market leader with our sustainable and technologically-advanced products. It is not only about having a different product in the market, as all our competitors are also investing in developing new projects. It is about finding different ways and channels to use our products. We are leaders in the differentiation for architectural finishings in Mexico. We still have a great deal to accomplish in the country, but we plan to remain positioned as such. We are focused on current projects and are not currently developing any new markets.