2009 Window Tinting Scuttlebutt
My long time readers will forgive me if I throw my consulting hat on for the moment.
Or not!
The Window Film Industry has incredible challenges facing it in 2009. There are literally hundreds of window film shops that have ceased operation.
This is the real story in 2009. How do you stay profitable at best; and at minimum, simply in business?
What are the manufacturers doing to stay ahead of the worst economy since Roosevelt?
Well to begin with they are all (thus far) running away from the obvious financial decline and the implications on their individual profitability and impact upon their channel strategy management.
This is the time for direct conversation rather than shop worn BS. The market is downright cynical rather than skeptical.
There may be some remaining optimism for a brighter future, with much of that placed on President Obama's shoulders; but the window film manufacturers have, across the board, been MIA in creating new ideas and fostering creativity on any level!
It's simply UNBELIEVABLE!
(Take a break and go hunting click here for Monster Bucks!)
CP Films:
They have added several new products for 2009. Their VISTA nano-ceramic 80% solar film with excellent heat rejection and unbelievable optical clarity. This one may be a winner for store front glass as well as condo's and upscale homes where there is absolutely no way to detect there is film on the glass. They whipped up a new privacy film that might move some sales and a thicker clear safety film geared toward storefront security (passes that UL TEST our Madico Profillon friends have been bragging about for the last 7 years)
The new LLumar website has been upgraded recently and it's worth a quick review. As the world leader in window films (it's really not even close!) they continue to excel in developing flat glass and automotive film technologies that reduce energy consumption, etc.
For full disclosure, we are very impressed with these window films and are a strong proponent of their VISTA and FormulaOne Films.
In my opinion; they have far too many Llumar dealers with varying business standards and capabilities. This is their weakness and strength at the very same moment.
Bekaert Specialty Films BSF:
Their dealers are better known as Solar Gard, Panorama and Armorcoat. BSF's website continues to impress me. They understand the internet and demonstrate a drive for communications and dealer support materials that is hard to match. Recent security film testing has given them some additional leverage points for 2009. They are stronger in some regions over others and their mixed model of factory direct versus independent distribution seems somewhat confused.
They are also trying to leverage the climate action issues in a strategic manner. See this recent Press Release concerning California Emissions, etc.
Suntek:
They claim to be the fastest growing window film manufacturer and it's hard to argue with that boast. Their films are competitively priced and aesthetically the equal of many of the higher cost options from the various manufacturers. They are low overhead operationally and as a business model one can admire their focus and success. In my opinion this Suntek model is the compelling vision for 2009-2010. For their competition to be successful against them this will be the formidable obstacle for them to overcome.
Madico:
This is one of the old stalwarts of this business with a loyal cadre of dealers and some very talented people and distributors throughout the USA. They seem stronger in certain geography and vertical markets like government security. My perception is that they are weaker in Florida than they should be--even with this economy as a back drop.
3M:
My alma mater remains the best known consumer brand in this business. This is also a two-edged sword. Branding needs to be driven through their channel and expectations of product performance needs to match their reputation earned in their other divisions.
I'll leave the Mining. .at this point since they are not germane to this posting analysis. I am very familiar with their dealer strategies and am in direct contact with more 3M dealers than any other competitive brand for some very obvious reasons.
The essential question for all of these companies is relevancy!
Let's state my parameters for the 2009 Business Model-Window Film.
More to come. .
Starting with VISION!
Mike Feldman
For the purposes of a macro analysis I purposefully left off Huper Optik, Geoshield, Johnson Window Tinting and Solamatrix, Global and Hanita. I'll get to them shortly.
The Window Film Industry has incredible challenges facing it in 2009. There are literally hundreds of window film shops that have ceased operation.
This is the real story in 2009. How do you stay profitable at best; and at minimum, simply in business?
What are the manufacturers doing to stay ahead of the worst economy since Roosevelt?
Well to begin with they are all (thus far) running away from the obvious financial decline and the implications on their individual profitability and impact upon their channel strategy management.
This is the time for direct conversation rather than shop worn BS. The market is downright cynical rather than skeptical.
There may be some remaining optimism for a brighter future, with much of that placed on President Obama's shoulders; but the window film manufacturers have, across the board, been MIA in creating new ideas and fostering creativity on any level!
It's simply UNBELIEVABLE!
(Take a break and go hunting click here for Monster Bucks!)
CP Films:
They have added several new products for 2009. Their VISTA nano-ceramic 80% solar film with excellent heat rejection and unbelievable optical clarity. This one may be a winner for store front glass as well as condo's and upscale homes where there is absolutely no way to detect there is film on the glass. They whipped up a new privacy film that might move some sales and a thicker clear safety film geared toward storefront security (passes that UL TEST our Madico Profillon friends have been bragging about for the last 7 years)
The new LLumar website has been upgraded recently and it's worth a quick review. As the world leader in window films (it's really not even close!) they continue to excel in developing flat glass and automotive film technologies that reduce energy consumption, etc.
In my opinion; they have far too many Llumar dealers with varying business standards and capabilities. This is their weakness and strength at the very same moment.
Bekaert Specialty Films BSF:
Their dealers are better known as Solar Gard, Panorama and Armorcoat. BSF's website continues to impress me. They understand the internet and demonstrate a drive for communications and dealer support materials that is hard to match. Recent security film testing has given them some additional leverage points for 2009. They are stronger in some regions over others and their mixed model of factory direct versus independent distribution seems somewhat confused.
They are also trying to leverage the climate action issues in a strategic manner. See this recent Press Release concerning California Emissions, etc.
Suntek:
They claim to be the fastest growing window film manufacturer and it's hard to argue with that boast. Their films are competitively priced and aesthetically the equal of many of the higher cost options from the various manufacturers. They are low overhead operationally and as a business model one can admire their focus and success. In my opinion this Suntek model is the compelling vision for 2009-2010. For their competition to be successful against them this will be the formidable obstacle for them to overcome.
Madico:
This is one of the old stalwarts of this business with a loyal cadre of dealers and some very talented people and distributors throughout the USA. They seem stronger in certain geography and vertical markets like government security. My perception is that they are weaker in Florida than they should be--even with this economy as a back drop.
3M:
My alma mater remains the best known consumer brand in this business. This is also a two-edged sword. Branding needs to be driven through their channel and expectations of product performance needs to match their reputation earned in their other divisions.
I'll leave the Mining. .at this point since they are not germane to this posting analysis. I am very familiar with their dealer strategies and am in direct contact with more 3M dealers than any other competitive brand for some very obvious reasons.
The essential question for all of these companies is relevancy!
Let's state my parameters for the 2009 Business Model-Window Film.
- This is the worst economy in the last 50 years. I am directly familiar with the last 35 years- which only demonstrates the age factor at play!
- The manufacturers may wish to consider selling direct to consumers (residential-commercial-automotive) but given the limited operating income, high cost of labor and limited talent within their organizations this is not a workable alternative.
- The manufacturers channel or lack of channel is the key win/lose factor in 2009-2010
- Branding strategies are limited in 2009 based on the high cost of advertising and profitability concerns.
- There will be continued attrition of dealers throughout 2009.
- The continued decline of the new car markets in the USA will reduce operating capital and the liquidity of the major window tinting manufacturers. This will be a year where the old expression "less is more" will become a daily mantra.
- While energy cost concerns are certainly being embraced by a rapidly aware society; the energy efficiency of window films remains a best kept secret. As such consumer education will remain limited and awareness will continue to be driven (such as it is) by local independent family owned dealers.
- The winners in 2009-2010 will be those companies who take full advantage of the Internet. Direct Mail, yellow Pages, radio and TV and newspapers will lose market share in the next 18 months.
- Those companies (manufacturers/independent dealers) who attempt to be "all things to all people" will fail.
- The THREE WINNING STRATEGIES ARE: VISION-VISION-VISION Followed By Superior Execution
More to come. .
Starting with VISION!
Mike Feldman
For the purposes of a macro analysis I purposefully left off Huper Optik, Geoshield, Johnson Window Tinting and Solamatrix, Global and Hanita. I'll get to them shortly.
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