Eurocell Bucking The Trend On The Markets

In what is a fairly turbulent time for the window and door industry and it’s biggest companies, you could be forgiven that ever single major player is looking over their shoulder. We have seen the demise of Entu. The share price collapse of Safestyle UK. Bad rumblings out of the likes of Everest and Anglian. If you’re a supplier to any of our industry’s biggest you’re probably getting a bit itchy yourselves.

Even the share price performance of some of our biggest suppliers such as Epwin Group and Pilkington have been pretty shaky of late.

But out of the doom and gloom, there is one name which is performing pretty well throughout all of the turmoil, and that is Eurocell.

Strong price performance

You only need to take a look at their share price performance over the past month or so to see that investor confidence in the company is pretty good:

Credit: Bloomberg

Over the past month Eurocell’s share price has driven upwards quite nicely over the past month or so. It’s in stark contrast to the fortunes of many other major industry companies trading on the markets.

So why have they been able to dodge the volatility better than many others? For a start, Eurocell is far more than just a systems company. They have a large network of trade centres supplying trade and retail customers with all sorts of over the counter products, from silicones to rainwater solutions.

They’re also a huge systems company, but that has worked to diversify their portfolio to suit as wide a range of customers as possible. For example, they have their flush Modus system for the higher end and those looking for something with character. They also have their shiny white stuff for the value end of the market. Add to the mix products like Skypod and their Aspect bi-fold doors, there is enough here for an installer to source most of the products they need, for all budgets.

In short, they have adapted their business model as the market has changed. You look at the companies struggling now and its clear that those who have remained stagnant and refused to evolve are now in quite sever danger.

Never stand still

There’s a saying, if you’re not innovating then you’re dying. Not my saying, and yes, a bit dramatic. But there’s plenty of truth in it.

Look at the trouble Safestyle find themselves in now. A vastly outdated business model that hasn’t changed with the times. They are now at the mercy of a brand new, ultra-aggressive competitor and a home owner market keen for something more bespoke.

You have to always be looking to evolve and adapt. That means looking at new and trending products. Changing your sales methods to how customers want to be sold to. Tweaking your services to suit new demands. Keep your marketing fresh so that it stays relevant and appeals to the right audience.

There are some companies who get this, especially the marketing bit, and have found themselves in a pretty decent position. There are plenty though that are simply blinkered and refuse to change because they prefer to do things the old way. Just look at the fortunes of the two companies mentioned in this post. Results are pretty clear to me.