Summary
The housing recovery is finally picking up the pace, which means manufacturers of building products should be primed for growth in the next two years. However, many building products companies may miss out on key opportunities to increase sales because they have not focused on building their brand. This is especially critical since consumers and homeowners are increasingly involved in the purchase decision as they work more closely with contractors. Consider the following:
- More consumers — especially millennials — are taking on do-it-yourself (DIY) projects
- Homeowners are conducting more self-directed online research when selecting building products and relying on websites of brands more than any other online source
- Contractors also rely on brands’ websites for information about product selection
After profiling more than 30 companies in building products across several categories looking for evidence of brand leadership, L.E.K. Consulting found that companies with the strongest brand positions achieve higher margins, command stronger market share, generate pull-through demand and enjoy greater channel influence.
In this Executive Insights, L.E.K. draws upon lessons learned from the consumer products sector and gives a strong case for why branding in the building products sector matters — now.
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