Business survival: Continuous innovation is necessary
When the Covid-19 pandemic hit Kenya in March 2020, the consumer market was already going through an economic crunch that had prevailed since 2017.
Key economic sectors such as construction and manufacturing have had to continually innovate to stay afloat amidst diminishing returns.
Businesses such as Comply Industries Limited read the changing landscape early enough and have been making adjustments to their product offerings to suit emerging market needs.
The business, which targets the East Africa region, manufactures particleboards, MDF boards, gypsum boards, block boards, plywood, doors and furniture.
“We have seen a rise in investors who are doing low-cost housing projects, and in response to this, we have begun focusing on the needs of such projects, which include cost-effective products and small deliveries,” says Kunal Patel, the head of sales and marketing at the company.
To meet the needs of their emerging clientele, the firm, for instance, has developed laminated flooring, an alternative to the traditional wooden flooring which is much more expensive.
“We call it high-density fibre (HDF) laminated flooring. Apart from it being cost-effective, value addition is that it is also easily replaceable after every five years if need be, without any significant breakage or loss, as it is interlocking and does not require glue to affix it to the floor,” explains Patel.
Comply gypsum boards have also made a mark in the market as very cost-effective solutions, especially in hot weather.
Through sustainable wood processing technologies, the firm has ensured consistent quality for its products over the last 20 years.
Cheap imports
The firm has been selling its products under the ‘Buy Kenya, Build Kenya’ strategy. However, the business has suffered due to the influx of cheap imports.
“The quality of what is coming into our markets is generally not good and the price is lower. This is not good for the economy as the money is moving outside of the domestic market, thereby weakening the local currency,” says Patel, adding, “The manufacturing sector is the backbone of Kenya’s economy and contributes significantly to the country’s GDP, this sector should be protected by enough macroeconomic measures and laws against dumping of cheap imports.”
To discourage their clients from the allure of incompatible imports, apart from offering quality goods, the manufacturer also offers good after-sales service.
“If we receive any complaint about the quality of our products, we send a member of our technical team to the site to observe and file analysis for action. Such personalised service is unlike what they can get with imports,” Patel argues.
The business offers a 24-hour turn-around time to get an order processed and delivered, besides, they assist in the installation of the products, and guide and advise where necessary, positioning themselves as an end-to-end solutions provider for interiors.
“For niche as well as project needs, we have an interior design team that clients work with, advising on the design of the interiors and the most appropriate fittings to use.”
To curb cheap imports, the manufacturer calls on the government to introduce duty, which will go a long way in restricting the dumping of cheap products in Kenya.
By making sub-standard goods expensive to import, local industries will grow and the economy will thrive, Patel argues.
“All stakeholders should work together to support local industries, starting with the government, which should implement anti-dumping laws, industries, to produce quality products, followed by consumers to give preference to locally produced products - all wheels of the economy train should move together in one direction, to benefit all,” says Patel. BY DAILY NATION
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