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WIN BRIAN TURNER FOR A DAY! Imagine the benefits of popular TV chef and restaurateur Brian Turner giving an exclusive cooking demonstration in your store – for free!

MORE DETAILS INSIDE ON PAGES 14,15

FLOORCARE Cleaning power, convenience, weight, noise levels, style and durability are the parameters driving new technology and design in this competitive market.

TV: NOW AND INTO THE FUTURE It’s big, it’s high value, it’s packed with new technologies and it’s crucial to the health of the UK Consumer Electronics sector. George Cole examines the present and future of TV

GROWTH FROM KNOWLEDGE GfK hard facts and figures on full HDTV, LED, the advent of 3DTV and the impact of the Football World Cup on sales in this crucial CE sector

FROM THE BENCH TV & video components: why they fail, and their importance to long life and customer happiness

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WRITING KITCHEN HISTORY

04/05/2010 11:13

EDITORIAL COMMENT

Marlinda Conway Editor in Chief

2010

– seen by many as a “crunch year” for the UK and global economies – is nearly half over, and we are at another crossroads for our industry and for the interdependent wider economy.

We know a little more than we did at the start of the year. We have a government in place, although it’s early days yet to assess its fitness for the job. Just how hard that job will be is at least a little clearer, and the Coalition has confirmed its commitment to addressing the deficit sooner rather than later, and we have been warned that financial pain, austerity and spending cuts are on the immediate agenda. The downside of biting the bullet now is that the fragile economy could be tipped into the “double dip” recession that the previous government wanted to avoid by postponing the inevitable.

There have already been predictions that unemployment will rise to 3 million under the new, austere regime, and the spectre of being without a job is a potent disincentive to spending on household appliances.

But on the upside, the decision to get stuck into the UK’s deficit immediately plays better with “The Markets” which, like it or not, are the real masters of our fate. It’s those same “Markets,” remember, controlled by the unelected untouchables, whose greed, arrogance and hubris got us into this in the first place, and it is disappointing – although probably inevitable – that even a sovereign democracy has to knuckle under to their dictates. Whether you’re an individual or a whole country, if you owe a lot of money and

need to borrow more, you can’t afford to upset those who are in a position to lend it. Banks are “too big to fail.” Countries, it appears, are not.

On a slightly smaller scale, Vince Cable, our new Business Secretary, has promised to “get tough” with the banks who benefited from taxpayers’ money when their irresponsibility came to light. He’s promised to make sure that the banks’ commitments to lending to SMEs – extracted as a condition of the government bail-out – are honoured. And he’s also acknowledged the crucial role that small and medium sized enterprises will play in achieving a recovery. He’s brushed aside the banks’ lame excuse that there has been “no demand” from SMEs, pointing out what we all know already: that when the conditions and rates are excessive, there will be fewer takers.

It remains to be seen whether Mr Cable will follow through on these promises, or whether the need not to upset the money men will finally prevail.

So it’s a good bet that, at the crossroads, this country will take the safe turning towards the status quo: don’t change the way the Markets work; don’t challenge their supremacy; rely on SMEs to work their entrepreneurial magic and try to make a reasonable living for themselves while they keep the bankers rich.

What have electrical retailers got to work with as they play their part? White goods are looking up, for now. The World Cup and 3D may give a bit of a fillip to the CE market. Apart from that, it’s down to plain hard work and business expertise.

Plus ça change…

Terry Heath Editorial & Publishing Director

Will Dobson Creative Director

James McIntosh Consultant Home Economist

Lynne Henry Communications Officer, GfK Marketing Services

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George Cole Consumer Electronics Consultant

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The Word

In and around the industry

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Spotlight on Miele

Win Brian Turner for a day!

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Your opportunity to stage a cooking demonstration instore by popular celebrity chef Brian Turner, courtesy of Belling

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Growth from Knowledge

GfK facts & figures on the TV market

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From the Bench

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THE WORD | INDUSTRY NEWS

TV purchases help boost retail growth Warmer weather and the prospect of the World Cup helped lift UK retail sales during May. The BRC’s monthly sales monitor, compiled by KPMG, recorded a like-for-like rise of 0.8% on the same month a year ago.

BRC Director General Stephen Robertson said: “The run-up to the World Cup helped sales of televisions, though this was largely discount-driven.

With the tournament getting closer there should be a further uplift….”

Non-food Non-store sales, which include Internet, mail order and phone sales, were 21.9% higher than a year ago, and up from 15.9% in April.

Customers were reported to have taken advantage of the many online deals and promotions, especially on televisions, clothing and footwear.

BCC Economic Forecast holds concerns for future growth The British Chambers of Commerce (BCC) has warned that the UK economy is not out of the woods yet and could face a double-dip recession as the crisis in the eurozone and turmoil in the global financial markets threaten to dampen the nation’s growth prospects.

Documented in the BCC report were concerns about unemployment, which is expected to rise from 2.51 million to a peak of 2.65 million (8.4% of the workforce) in the first quarter of 2011. According to BCC Chief Economist David Kern, better than expected labour market

Bank holiday weekend launch for Best Buy’s second UK store Best Buy opened its second store in the UK on Friday 28th May at Hedge End Retail Park in Southampton, offering prices up to 60% off and a number of competition prizes to entice consumers from surrounding areas.

Amongst the deals on offer during the opening weekend were a Sharp 32” HD Ready LCD TV for £199.99, a saving of £130 on the regular price; Samsung 32” LED HD TV for £399.99 (£300 off); Panasonic 42” full HD Plasma TV bundled with the Panasonic DMPB045 Blu-ray player and Sherlock Holmes Blu-ray disc for £689.97, a saving of £400.

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developments since mid 2009 mask some “worrying trends”. Inactivity is increasing at a rapid pace, full-time employment is falling, and private sector employment has declined sharply.

BCC Director General David Frost, meanwhile, warned of the effect of VAT rises on the job market, saying the tax should only be increased in conjunction with a full reversal of the 2011 employer National Insurance hike.

“If any increase in NICs is allowed to go ahead, it will act as a handbrake on job creation,” he commented.

BSH has laid the cornerstone for a new €50 million technology centre for laundry care at Siemens’ Technopark in Berlin.

The six-storey “green building” has 32,000 square metres of floor space and incorporates stateof-the-art heating and cooling systems designed to save almost €300,000 and more than 1,500 tons of carbon dioxide per year. The building is expected to be ready early in 2011.

See www.gcmagazine.co.uk for the stories behind the news…

` Digital radio listening increases 19% year-on-year to ‘all-time high’ Almost 35% of UK homes have DAB radios

` Consumer confidence trickles back Confidence at highest level since 2007, but “big worries” persist

` Services sector fails to deliver

Ultimate Products acquires Appliance365’s SDA business Ultimate Products has bought the small domestic appliance business of Appliance365 and appointed Guy Weaver, a director and shareholder in Appliance365, as sales director of its SDA division.

Appliance365 was established by Guy Weaver and Peter Brazier following the collapse of their previous company PABL. The firm produces products under the names of celebrity figures such as Rosemary Conley and Oz Clarke, and supplies large retailers such as Argos and Tesco, as well as smaller outlets.

The company, which is also involved in product sourcing from the Far East and White Goods, had found it difficult to maintain the investment required for the SDA side of the business, Weaver told GC. Ultimate Products claims to be the UK’s largest, independent full service product sourcing and design business. According to Weaver, the firm’s current turnover is £80 million and it is on target to make £100 million this year. Recent acquisitions have helped boost organic growth. In 2009, Ultimate acquired Intempo Digital after it fell into administration.

Quarterly value and volume sales fall below expectations

` BBC urged to put listeners first Commercial radio challenges BBC with 5-point plan for the future of radio

` Project Canvas falls outside UK merger control jurisdiction “Great news for the digital television industry,” says Humax Commercial Director

` Retail business failures expected to fall by 8% Insolvencies in the sector peaked at 3,600 in 2009

` Government must stop banks overcharging shops and customers, says BRC Retail survey reveals excessive charges for card payments

THE WORD | INDUSTRY NEWS

Sony offers the complete 3D experience A full range of Sony 3D hardware and content has gone on sale in almost 600 retail outlets around the UK, and Sony has committed to introducing a raft of 3D movies, games, videos and bundled incentives.

The initial range of 3D hardware – televisions, Blu-ray players, home cinema systems and PS3 consoles – will be completed with the introduction of cameras

Trading updates Q4 sales at Comet fell 4% on a like-forlike basis, but the electricals chain maintained its market share and improved its gross margin trend. Parent company Kesa Electricals reported total Group revenue down 1.2% (like-for-like) in the period from 9 January to 30 April.

In a trading update for the 28 and 52 weeks ended 1 May 2010, DSGi reported underlying Group sales in the second half up 8% in sterling and 6% like-for-like, while full year sales grew by 4% and 2% on the same basis. Gross margins fell 0.2%, resulting in a flat performance across the full year. UK & Ireland Electricals grew 6% in the second half, but was dragged down by a poor performance from UK Computing, which fell by 11%, resulting in flat sales for the period and an overall annual drop of 5%. Underlying Group profit before tax is expected to be in line with market expectations of £80-£90 million.

Sales at B&Q UK & Ireland in the 13 weeks ended 1 May 2010 fell 2.1% to £1,048 million (-2.8% LFL). Bigger ticket project sales were reported to be broadly flat, but kitchen and appliance sales performed well, rising by 6% during the quarter. Retail profit grew 12.0% to £67 million.

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Like-for-like sales at Argos fell 8.1% in the 13 weeks 23 February to 29 May 2010 compared to the same period last year. Revenues of £889 million represented a total drop of 5.2%.

The retailer said the video gaming market was weak and TV sales were disappointing.

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Sony posted lower net sales, but a reduced loss and an operating profit for its financial year ended March 31 2010. The company said a sales decline of 6.7% to ¥7,214.0 billion ($77,570 million) was due in part to reduced sales in its consumer products and devices segment. Operating income, at ¥31.8 billion, showed an improvement of ¥259.6 billion on the previous year. Net losses fell from ¥98.1 billion to ¥40.8 billion.

in July and 3D VAIO laptops later this year.

“This is just the start of the journey,” said Andy Benson, Sony UK commercial director. “Each Sony company is fully behind 3D, focused on creating great content and, in the very near future, enabling consumers to create their own. For Sony, 3D is a continuation of our efforts to raise the experience of entertainment.”

“Potential security risk” on 30-year-old audio equipment Yamaha has, as the result of its ongoing quality assurance tests, identified a potential security risk associated with some amplifiers manufactured between 1980 and 1982. The affected models are: A-760; A-760II; A-960; A-960II; A-1060; M-50; M-70; B-6.

The Company has issued advice in a statement, reported at www.gcmagazine.co.uk, and can be contacted in connection with the safety notice on 01908 369213 (9:00am – 5:00pm); by email to service@yamaha.de; or via the Yamaha support page at http://uk.yamaha.com/en/support/ Yamaha has also requested anyone who knows of others in possession of one of the above devices to pass this information on to them.

Proposed VAT rise will cost 163,000 jobs, says BRC The British Retail Consortium is predicting that increasing VAT to 20% would cost 163,000 jobs over four years and reduce consumer spending by £3.6 billion over the same period.

An independent study carried out for the BRC by the Centre for Economics and Business Research (CEBR) showed that in year one, a VAT rate of 20% would reduce the budget deficit by £11.3 billion but by the end of that year there would be 30,000 fewer jobs in the UK. That figure would rise to 163,000 after four years. Consumer spending would be £1.6 billion less after year one, and £3.6 billion less after four years.

The research concluded that there is no silver bullet that will allow the Government to raise large amounts of revenue without having a substantial effect on the economy. Employment, consumption and GDP would all be hit significantly by tax rises.  Read the full article at www.gcmagazine.co.uk

BCG gears up for another Big Tour Kitchen, bathroom & heating distributor BCG has confirmed that its ‘Big Tour’ retail roadshow is back again this year. The 2010 event is said to be bigger, and better, boasting the presence of some of the biggest brand names in the industry.

Independent retailers can expect to see major appliance brands such as Electrolux, Glen Dimplex Home Appliances, Indesit Company and Fisher & Paykel exhibiting.

Last year’s Big Tour 3 attracted a record number of customers. BCG Managing Director Chris Honer described the support and enthusiasm for both the tour and the launch of the firm’s Airmiles incentive scheme as “phenomenal”.

“2009 saw the industry go through turbulent times, and we watched almost every one of our competitors cut costs and spending,” he said.

“We took a tough decision not to, and I believe we played the ace card. Our decision to go ahead with Big Tour 3, coupled with the tremendous advertising and editorial campaign we ran, saw BCG’s profile within the industry rocket.

“In the nicest possible way, we feel obligated to do it all over again. BCG’s commitment to the industry is unequivocal. We want more exhibitors, more customers and more benefits for all those involved.”

An extra challenge faces Big Tour 2010. This year, with the help of ‘Action for Children’, Big Tour is aiming to donate kitchen and bathroom essentials to a number of children’s projects.

“Our aim is to complete this challenge before we get to Big Tour in November, giving us the opportunity to show the industry what a handful of businesses can achieve when working together,” said Honer.

The Big Tour 2010 schedule is as follows:  Scotland: Hampden Park, Thursday 4th November  Birmingham: National Motorcycle Museum, Wednesday 10th November  Manchester: Manchester United FC, Friday 12th November  Bristol: University West of England Exhibition & Conference Centre, Tuesday 16th November  London: Mercedes-Benz World, Weybridge, Thursday 18th November

THE WORD | INDUSTRY NEWS

GDHA transfers BSH records positive performance for F/Y 2009 hob production to Prescot GDHA has transferred the production of the new Belling CRS60 MK5 hob to the group’s Prescot factory as part of its continuing commitment to “home-grown innovation”.

Steve Dickson, commercial manager for Belling, said: “We are extremely proud of our heritage and want to design and manufacture our products in the UK, for UK customers, so our product development matches the needs of British consumers and their unique cooking habits.”

All Belling hobs are now 100% made in Britain and the brand is the only remaining UK-based manufacturer of built-in, freestanding and range appliances.

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JUNE 2010

PURE takes control of digital radio switchover

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Independent retailers and consumers confused about the future of digital and FM radio now have access to information clarifying the process of digital switchover and the execution of the Digital Economy Act. DAB radio manufacturer PURE has developed materials providing retailers the tools to quickly answer any questions consumers might have about the digital switchover. A ‘quick reference’ pocket guide and a poster featuring FAQs are available, and a dedicated e-mail address (switchover@pure.com) has been set up for retailers that may need further clarification of any aspect of the switchover.

Colin Crawford, director of marketing at PURE, said the company had spoken to many independent retailers confused by recent messages from the industry. “As category leaders in digital radio, we believe it is our duty to help retailers relay clear and positive messages to consumers.”

PURE is also providing a “Digital Radio Explained” booklet for consumers. This will be made available in quantity with a compact dispenser for use in-store. The firm’s website (www.PURE.com) will provide comprehensive background information both for trade and consumers.

BSH posted total 2009 Group revenues down slightly on last year, at €8.405 billion. EBIT increased by €12 million to €534 million and pre-tax earnings rose from €510 million in 2008 to €517.

CEO Dr. Kurt-Ludwig Gutberlet, speaking at the BSH annual press conference in Munich, said: “We coped with the turbulences of 2009 much better than we expected only 12 months ago.“ He said it was “remarkable” that BSH was able to strengthen its market position in many regions of the world and succeeded, despite a slight fall in total sales revenue, in improving its overall operating result.

The German market was reported to be “particularly crisis-resistant” in 2009 and, unlike the European market as a whole, was able to expand. Sales increased by 4.4% to €1.85 billion, boosted by a strong demand for energy-efficient appliances. Sales of small consumer appliances, including vacuum cleaners, also performed well, increasing by 9%.

Digital Radio UK, the bod y responsible for preparing the nation for digital radio switchover, has appointed Digital UK’s Jane Ostler as Marketing and Strategy Director and former Intellec t Director of CE Laurence Harrison as Operations Director.

PURE has followed its expansion into global markets with the appointment of Peter Blampied as Director of Sales. · Best Buy has signed a dea l to become the official consumer elec tronics retail sponsor of The O2. The 5-ye ar contract will give Best Buy benefits across the site, including the arena, indi gO2 and the naming rights to the VIP Lou nge which has a capacity of 750. Log onto www. gcmagazine.co.uk for the full story Electrolux has been nam ed one of 130 Global High Performers and one of the top five companies marketi ng consumer durables in Forbes Global 2000.

Which? magazine has crow ned Miele ‘Best Domestic Appliance Brand’ for the third time since the publica tion’s annual Awards were established.

Miele received 36 Which? UK Best Buy Awa rds in 2009, landing it in the top ten Bes t Buy brands during that year.

Outside of its home market, BSH said it is “well positioned on the international stage.” It had been quick to establish a presence in Asia, particularly China, where revenue increased by almost 26%.

In North America, sales fell by 11% (euros); Western Europe slowed 6%; Eastern Europe produced a shortfall of 12%, and overall decline in the UK market was around 5% (sterling). However, the company said it performed better than the market as a whole in almost all countries in these regions and was able to strengthen its market position.

For 2010, BSH is anticipating a stabilisation of the home appliances market worldwide. Dr. Gutberlet highlighted the fact that the company has had a strong start to the current year, with a revenue growth rate of more than 10% on last year. “Generally speaking, we are expecting our revenue to grow in 2010 at a rate somewhere midway between 1% and 10%,“ he concluded.  Read the full story at www.gcmagazine.co.uk

Sky is to acquire Virgin Med ia Television (VMtv) for a total conside ration of up to £160 million in cash. The acquisition will expand Sky’s portfolio of basic pay TV channels and eliminate the carriage fees it currently pays for distribu ting VMtv channels on its TV services .

Tom Trew has been awarde d the title of Siemens Area Business Man ager of the Year for 2009. The London region ABM, who has worked for Siem ens for almost 10 years, is the first to win the title three times in the history of the UK Company.

MDA brand Amica has announced the expansion of its UK operation with the appointment of National Accounts Manager Peter Sherwood-Clarke. · Loewe UK has appointed Marc Nikolai as Managing Director following the decision of cur rent MD Kevin Kelly to leave the company at the end of July this year after three years at the helm.

Loewe said Kelly and Nikolai will work closely together in the coming weeks to ensure a smooth transition. n.

Indesit Company UK has opened a new Service Training Centre of Excellence at its Head Office site in Pete rborough.

The facility will enable the company to support in excess of 1,000 staff training sessions over the coming year.

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Spotlight on Miele

the passage of time GC reports from miele in GÜtersloh, Germany A new turn

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ThE sTaTE-of-ThE-arT MiElE GallEry, loNdoN W1

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Admiring the products and displays in the luxurious yet minimalistic showroom of what is arguably Europe’s most respected MDA brand, I was passed by a lady who must have been all of 80 years old, if not more, inching her way around with the help of a tartan-like fabric shopping trolley. The accessory seemed to steady her walk. At the same time, business was being conducted with retailers eager to see the latest appliances on display in the showroom, and a party of enthusiastic media visitors, keen to learn about the company’s global operations, surrounded an impressive, lighted dome showing the presence of its subsidiary operations worldwide. Just a few steps away in the same building, a museum exhibiting the history of the firm and the products manufactured throughout the decades of its existence was hosting a group of people similar in age to the aforementioned lady. At Miele, everyone is welcome. This is a family affair.

M

iele has a proud and enduring history and a tenacious, demonstrable commitment to consumers, retailers and the local community it serves.

It may seem strange to propose the ideology of the employer being the server, but the Miele & Zinkann families, joint owners of the business, have spent a hundred and eleven years breeding an admirable culture in which their company supports the community and keeps loyal workers in production through the rough and the smooth, the thick and the thin.

Miele has manufactured bicycles, cars and wooden carts to ensure its passage through time and the livelihoods of its workers. This is a company in which 4th generation employees mingle with 4th generation owners, and its success is proven in its financial results.

The latest figures at the time of writing show Group turnover for 2008/9 at €2.77 billion – a performance described as “relatively flat”, but, without doubt, a great achievement given the nature of the global economy during that time.

Miele is present in 46 countries around the globe, and while one can’t speak on behalf of the rest of the world, it would be difficult to imagine the perception of the brand being any different elsewhere than it is in the UK. The Miele name stands on quality, longevity, innovation and trust. “Forever better” (Immer Besser), the maxim born in 1899 when Carl Miele and Reinhard Zinkann founded the company to manufacture milk centrifuges for local farmers, lives to this day.

Farming at the turn of the 19th century demanded long hours and hard work for households, and it was Miele and Zinkann’s ambition to produce high-quality products that would break the burden of that workload.

Within the first year of its existence, Miele & Cie, established in an old corn mill in the Westphalian hamlet of Herzebrock, was manufacturing cream separators and butter churns, and the industrious partners were turning their attention to a different kind of labour-saving device that would relieve another arduous household task. Perhaps unknown at the time, the move was to take their company on the road to becoming a renowned domestic and commercial appliance brand.

It seemed a natural progression that, when considering the components of the butter churn (a wooden tub with paddle-like agitator), the men set about the development of Miele’s newest product – the washing machine.

In these early days of Miele’s history lie the foundations of its success today. What began with “eleven employees, four lathes and a drill” is now a flourishing, highly respected worldwide brand manufacturing domestic appliances in the categories of laundry, floorcare, dishwashing, cooling and cooking, and a broad collection of products for commercial, industrial and medical use. Miele is a name to aspire to and a benchmark in manufacturing, with eight production plants in Germany (Gϋtersloh is also the firm’s headquarters), one in the Czech Republic and one in Austria.

At your service A common theme that runs across Miele operations worldwide is the determination and desire to draw the brand closer to its customers. Around the globe, Miele Experience Centres and Galleries welcome people on a daily basis to “try before they buy” and to take advantage of the brand’s Masterclass courses. As witnessed by Get Connected in Gϋtersloh, consumers come in off the street to absorb the Miele experience, and are warmly welcomed.

GC asked Simon Grantham, Miele UK managing director, just why the business puts so much effort and investment into initiatives such as Galleries (dedicated experiential centres and showrooms) and Masterclasses (a range of popular cooking courses). “The goal for Miele is that people [consumers and retailers] understand what the brand stands for. The formula works,” he said.

Since it is not possible for dealers to display the full range of Miele products, Galleries are intended to present an extension to retail showrooms. “They’re not

Spotlight on Miele

sales centres, so there is no pressure,” Grantham points out, “but the conversion rate through Galleries is 65% to 70% – it’s a no-brainer.”

In December 2009, Miele opened a Gallery in Cavendish Place, just off London’s shopping heartland.

The 2,000 sq. ft. showroom and demonstration facility has 50 kitchen studios within 3 miles and, according to Grantham, the investment paid for itself within two months.

Retail matters

aN Early MiElE WashiNG MachiNE

Miele tomorrow Taking stock of the appliance industry in the UK, Grantham believes that the market will grow again, and in the not too distant future. “Pent-up demand created by people wanting to spend on their homes [which he suspects many will do, rather than move] will create an opportunity for premium brands.”

Miele will continue to seek high-quality retailers, and will add to its London Gallery and experiential centre located at the company’s UK headquarters in

Abingdon, Oxford, a new Gallery at Cheadle Royal Manchester, due to open in 2010/11.

Looking further ahead with regard to lucrative Gallery locations, Grantham marks Scotland as “the next obvious place.” And did GC detect a glint in his eye as he noted “Kent and Sussex” as being prime Miele territories? Only time will tell.

Edition

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JUNE 2010

Miele, in its quest to bring customers closer to the brand, is proving that people respond well to being treated as individuals and are prepared to pay for such respect.

Grantham believes that mass-market consumers, if clear why they are buying Miele products – i.e. “the features and benefits are explained” – will purchase.

“Take washing machines, for example: customers have no problem buying when the appliance is backed by a 10-year warranty. Remember, we’re talking products at twice the average market price.”

It takes a dedicated, knowledgeable retailer to explain to the average consumer why they should pay 100% more for a domestic appliance, and Miele is well aware of this fact. In the UK, certain of the brand’s products are sold through the diverse array of channels that exist, and Grantham is alert to the reality that not

all are capable of providing the commitment and expertise required. “In many instances it’s not the store, it’s the store staff,” he tells GC. “If staff provide good customer service and are well trained with product knowledge, we see better sales from the outlet.”

It is with this in mind that Miele, which has always given excellent backing to its dealerships, has set about a new method of prioritising and protecting those that add value to the UK business. Recent developments have seen the establishment of Miele Centres, in which the brand invests in retail outlets by providing bespoke display units, training and marketing support. In return, retailers stock and demonstrate a wide range of Miele appliances in a display area separate from other manufacturers’ products.

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Let TV chef Brian Turner cook up a storm in your showroom

Get Connected has teamed up with leading cooking appliance brand Belling to offer one lucky retailer the chance to win a live cooking demonstration from top chef Brian Turner – an exciting, exclusive promotion that will take place in the retailer’s own showroom. The competition is open to all retailers that stock a minimum of five current Belling products, and the prize provides the winning retailer with the opportunity to drive footfall by enticing new and existing customers to a private event, courtesy of Belling.

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Read The TexT, answeR a quesTion, and You could win Belling’s amBassadoR foR a daY

B

rian Turner is one of Britain’s most well-known chefs. He has a string of successful restaurants and regularly appears on popular television shows such as Ready Steady Cook, This Morning, Saturday Cooks and Saturday Kitchen.

As well as cooking up a feast live on a Belling appliance and sharing his top tricks of the trade, Belling brand ambassador Brian will be on hand to give practical advice on making the most of cooking on Belling’s diverse range of British-manufactured products.

Belling inspires Belling was established in 1912 and has developed into a firm family favourite

and one of the largest brands in the UK cooking market. From the manufacture of the legendary Baby Belling, through to freestanding cookers, built-in ovens, integrated appliances and on to the new line of DB4 and Country Classic range cookers, Belling has continued to inspire consumers with its innovation and design.

In 2009, Belling unveiled a fresh look for its built-in and freestanding products and a new collection comprising a number of ‘first to market’ innovations was born. After remaining unchanged for almost ten years, the popular Belling aesthetic was updated and given a modern designer makeover to create a unified look across all built-in and 60cm freestanding ranges.

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All Belling gas appliances are FSD compliant, and electric products are A-rated for energy efficiency. The Belling collection is available in gas, electric and dual fuel options and in a selection of stylish finishes. For ease of use, models with side-opening doors have been introduced and improved ergonomicallydesigned handles and knobs are a feature of the brand’s new and enhanced portfolio.

And it doesn’t stop there. Additional highlights of the new Belling collection include the Belling Butler, a 700mmwide portable serving station offering a new take on the hostess trolley. This elegant appliance features a hotplate and two heated internal shelves and offers consumers a modern alternative to a traditional product.

Belling innovates Belling also has a wide range of induction appliances which could open the sector out to mass appeal due to affordable options that boast innovation on a global scale. Standing first here is the totally unique Eco Induction Oven, a 60cm builtin oven that uses 50% less energy than an A-rated oven.

Induction is the most energy-efficient method of cooking. A gas hob only uses 55% of its emitted energy to cook, whilst induction uses up to 85% of its energy, providing a greener alternative, and saving money.

In a first for Belling – and for the UK market – the brand also launched a 60cm-wide Freestanding Double Oven with Induction Hotplate and the PBi60 mk2 and PBi60R built in induction hobs.

The Belling BuTler: a new TTake on a TradiTional producT

The hobs offer consumers the option of touch control, with a unique ‘power slider’ control function or the simplicity of rotary controls.

Belling’s diverse and innovative appliance ranges provide multiple retail opportunities and are suitable for customers and cooks of all levels.

So, for your chance to see a top TV chef in action using Belling’s exciting new products, and to increase footfall in your store, simply answer the question below.

q

in which year was Belling established?

Submit your answer, along with your name and contact details, either online at www.gcmagazine.co.uk or enter by fax on 0113 243 9577. Postal entries should be sent to: GDHA competition c/o Lucre, 30 Park Square West, Leeds LS1 2PF.

Terms & Conditions apply. For full Terms & Conditions, please visit the ‘for retailers’ page on the Belling website at www.belling.co.uk

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Toshiba Camileo BW10 “all purpose” camcorder Toshiba is targeting adventurous holidaymakers and sports enthusiasts with the launch of its first water and weather resistant camcorder, the Camileo BW10.

The lightweight unit captures full 1080p HD footage and is waterproof to two metres with full underwater operation. It features Camileo Uploader software for easy upload to YouTubeTM and PictBridgeTM for photo printing. RSP £129.99.

Video resolution up to Full HD 1920 x 1080 (30fps)

Still pictures up to 5MP

Card slot: SD / SDHC / SDXC up to 64GB

Digital zoom: 10x for video and still

File formats: MP4 (video), JPG (still), AAC (audio)

Connectivity: HDMI®, USB 2.0

08704 424424 www.toshiba.co.uk

Philips HDT8520 Freeview+ HD PVR Philips HDT8520, designed by Pace, is the first Freeview+ HD Personal Video Recorder available in the UK. The unit has a 500GB hard drive and useful recording features such as one-touch recording, series recording, a 3-hour buffer for time shifting and two tuners.

1080p HD up-scaling

Ethernet ports for enhanced connectivity

Energy consumption of just 15W in active mode; standby mode <1 W

Dolby Digital 5.1 audio output

Easy record via 8 day Program Guide

01293 773128 www.philips.co.uk

Mertz MP600BS pyrolytic single oven This multifunction self-cleaning oven from Mertz UK uses advanced pyrolytic technology to make life easier in the kitchen. A moderate or intense setting can be selected depending on the level of cleaning required. The unit is styled in black glass and stainless steel and retails in the region of £700.

Powerful fan and turbo grill

Eco and pizza settings

Triple-glazed door with safety lock

Electronic temperature control

‘A’ rated for energy

0845 456 5115 www.mertzuk.com

Beko ‘Excellence’ WMB91242L washing machine

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JUNE 2010

Beko is claiming the introduction of the fastest 9kg washing machine in the market with the launch of the Excellence WMB91242L. The A++ rated, 1200rpm appliance is capable of washing a full 9kg load in just 39 minutes.

It boasts a 14-minute ‘Super Fast’ wash and a ‘Daily Quick’ programme that works at a range of temperatures from cold to 90°C to provide the fastest wash for a full load of lightly soiled laundry.

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16 main wash programmes include Duvet, Duo, Mixed and Dark Care

Tub cleaning programme

Extra-large porthole door and bigger drum size

Interactive LCD display with 24-hour time delay

Eco Clean programme saves over 60% in energy costs (compared to a standard synthetic 40°C wash)

01923 818 121 www.beko.co.uk

THE PRODUCT GALLERY

Whirlpool American-style side-by-side refrigeration Whirlpool’s new collection of A+ side-by-side cooling offers a reflective finish in dark mirrored glass and a Luxilen™ finish – a high gloss, durable material resembling glass – in a choice of white, silver or black.

Appliances are enhanced with brushed stainless steel integrated handles and equipped with a front ventilation system which allows neat freestanding flat to a wall or a streamlined build-in to a run of kitchen furniture.

6th Sense® technology constantly monitors and adjusts temperature

Multi-flow System optimizes circulation of cool air

Temperature restored up to five times faster than a conventional fridge

Total No Frost prevents ice crystals forming

Separate electronic touch-sensitive paddles for ice and water; ‘Rotating Easy Fill’ system

Water filtration system; anti-bacteria and anti-odour air filtration

0208 649 5000 www.whirlpool.co.uk

Denon D-M38DAB compact audio system Denon has unveiled its latest ‘one-box wonder’, which comes in the form of the D-M38DAB audio system. The unit follows in the footsteps of the multi award-winning D-M37, with the notable addition of iPod/iPhone digital direct connectivity.

CD player, DAB/FM radio, USB input (‘Works with iPhone’ accredited)

High-quality sound produced by premium speakers and 60W amplifier

Stylish, high-quality black or silver finishes

Available July 2010 – RSP: £330.00

01753 680568 www.denon.co.uk

3 x low-energy halogen lights and softLight dimmer function

3 x power levels plus intensive setting

Automatic run-on facility removes lingering odours

Automatic return from intensive to normal setting

RSP around £850.00

0844 892 9044 www.siemens-home.co.uk

Bosch’s Exxcel AquaStar SMS63E12GB freestanding dishwasher uses just 7 litres of water for a full load of 13 place settings. The appliance is A -10% rated for energy, A-rated for washing and drying performance and incorporates Bosch’s VarioFlex basket system, AquaMix glass protection system and HydroSensor III, which determines if the pre-rinse water is clean enough to use in the main wash cycle.

6 programmes

Hygiene exxtra for a hotter final rinse

Noise level 44dB

Detachable large-item spray head

Automatic detergent detection

Self-cleaning filter

01908 328201 http://trade.boschappliances.co.uk

JUNE 2010

This striking 90cm black glass and stainless steel chimney hood from Siemens operates at 54 decibels and has a maximum extraction rate of 380 m3/h. The chimney section is height adjustable and the unit is suitable for ducting or re-circulation.

Bosch Exxcel AquaStar dishwasher

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Siemens LC966KA40B chimney hood

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DESIGN IN THE KITCHEN

Designer democracy Time was when a “designer” label on a domestic appliance was the rare and exclusive province of high-end products, and names such as Renzo Piano and Pininfarina signalled a kudos available only to the rich – be they discerning and tasteful, or footballer’s wives extending their appetite for labels from clothes to the kitchen. Times have changed.

WHIRLPOOL GOES ULTRA MODERN

NEFF’S ELEGANT IN LINE CONCEPT

T

he white goods industry has achieved a remarkable revolution over the last decade, with advances in technology bringing levels of performance, reliability, energy efficiency, convenience and ease of use that have delivered outstanding value to consumers.

But just as remarkable is the powerful focus on stylish design, using a variety of materials, colours, finishes and overall concepts that has moved the sector far beyond the “white or stainless steel” debate. Whether commissioning outside designers or encouraging their in-house teams to develop elegant, distinctive new looks for appliances and collections, manufacturers have extended consumer choice to the point where most householders can achieve a “designer look” in the kitchen.

This extension of choice has been achieved by democratising access to good design, but standards have not, in general, dropped. In building aspirational design into more “affordable” products as well as high-end appliances, manufacturers have significantly upped their game, and design is now as much a part of the enhancement process as the trickle-down of innovative technology to all price points.

As one manufacturer remarked to GC Magazine: “Style is a major factor in consumers’ purchase choices, and our most successful retailers are capitalising on this by making the most of it with great displays in-store.”

Depth of choice Whether it is the timeless, understated, always-in-style elegance of Neff, the more flamboyant and colourful standalone retro chic of the long-lived Smeg FAB refrigeration range or the comprehensive full-range integration of Stoves’ Accolade offering, style is in focus, and major manufacturers are acknowledging this by continuing to offer choices to suit all tastes and price ranges.

Whirlpool has invested in design that, for example in the Glamour range, has a cool, ultra modern, minimalist look combining black glass with brushed stainless steel and flat, clean lines. Whirlpool’s Glamour cooker hoods have been described as “modern art”, a term that could equally apply to Miele’s motorised foldaway Cabrio hood.

Gorenje scored success with its Ora-Ito and Pininfarina designer ranges, and is now extending into the retro style arena with its colourful Retro refrigeration

range. And, taking full advantage of the hob technology that has brought new induction, gas-on-glass and ceramic design options to this category, Hoover Candy, Hotpoint and Belling are among the mainstream manufacturers who can offer stunning looks to go with outstanding performance.

Joined-up strategies Belling’s built-in collection has benefited from the introduction of a pure white finish complemented by stainless steel. Another example of the integrated design strategy that is continually enhancing MDA manufacturers’ ability to provide full kitchen design solutions. And, as well as bringing these new designs to market, manufacturers are also investing in pushing the boundaries of both performance and looks. Electrolux’s Design Lab projects, for example, are constantly searching for the appliances of the future, at the same time as the brand is putting high-performance designs such as the Inspiro oven onto the UK market right now. Also exploring concepts is CDA, whose compact Designer Range is complemented with pioneering leather-clad appliance designs as seen at the kbb Birmingham show this year.

The message for consumers is that, whatever your tastes and aspirations, manufacturers can offer a stylish, integrated design solution. For retailers, the challenge is to ensure that first visual impressions, which are the main attention-grabber in-store, are given full scope to work their magic.

GET CONNECTED

JUNE 2010

Electrolux Inspiro Oven – thoughtfully designed for cooks who want to shine in the kitchen

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At the heart of the Electrolux brand is its Scandinavian design philosophy which focuses on thinking about the user. This ‘Thoughtful Design’ embraces seven key dimensions which Electrolux believes guides truly great, truly relevant holistic design and creates a desirable final user experience. These dimensions are Insight, Functionality, Usability, Sense, Aesthetics, Sustainability and Total Experience. The stunning Electrolux Inspiro oven EOC69400X is the ultimate product of this design philosophy. A product that captures all these dimensions beautifully and intuitively to offer the consumer an oven that truly allows them to shine in the kitchen. Thanks to a breakthrough heat management technique the Inspiro automatically selects the right heating modes based on the contents of the oven to cook every dish to perfection. .

The Electrolux Inspiro Oven was voted one of six Good Housekeeping Institute Outstanding Products of the Year – winning a prestigious Good Housekeeping Consumer Award 2008 in the GHI Tried & Tested Category.

Floorcare

Filling the vacuum when gc asked manufacturers to comment on the varied UK floorcare market, communication and education came to the fore, time and again. The overriding challenge for a sector crowded with products spanning an extensive breadth of price points, and consumers needing to quickly understand what they are paying for, is for manufacturers and retailers to fill the knowledge void

ThE MiElE hyBrid: “ThE vEry firsT high-pErforMaNcE cordlEss vacUUM clEaNEr”

they are often reluctant to spend what can be a significant amount of money.” She stresses that consumers need to be made to understand that if they are prepared to invest in a good machine, they will have to make that “painful” buying decision less often in the long run. “they will get much better performance and therefore be happier with the results.”

IF prodUcT dEsigN award wiNNEr ThE aEg-ElEcTrolUx UlTraoNE is “sciENTifically provEN ‘BEsT iN TEsT’ for sUcTioN”

the floorcare market has proven itself a resilient player in the field of domestic appliances. gfK’s Sumit Burgul notes it continuing to “exhibit the signs of burgeoning consumer confidence.” Commenting on recent value and volume performance, he says: “the category posted strong value growth of 5.3% in the year ending April 2010, and average price growth of 6.2% together with a unit decline of -0.8% suggests that consumers have been trading-up their purchases over the last year and have sought ergonomically-designed products that offer innovative, added-value features.” online sales lay claim to the largest rise in transactions, with volume and value increasing by 15.9% and 32.6% respectively compared to the previous year. Looking forward, Burgul expects that online growth should continue – “albeit at a more measured pace” – and in doing so should help bolster value sales in

JUNE 2010

Growing stronger

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B

roadly speaking, there are two types of floorcare consumer: those who plump for the cheapest models, and those who consider their health and convenience, comfort and hygiene and the care of their floor coverings worth investing in. The motivations of these two categories of purchasers are reflected in the polarisation of the market. Yet, BSH’s Jane Lee sees signs of consumers gradually coming to realise that they get what they pay for, “but the education process is still continuing,” she says.

Jane – product category manager, Consumer Products division at BSH Home Appliances – believes part of the problem in floorcare to be the great variety and complexity of the products available: “It can be difficult to get features and benefits across in clear, standard terms that everyone understands.” nonetheless, consumers are demanding more and more from their vacuum cleaners, she says. Modern households often have different types of flooring and, with such a variety of housing styles and lifestyles, a vacuum cleaner that’s appropriate to both is a requirement.

“If you have a small flat, you probably don’t want a bulky cleaner that can’t be stored easily. there are also specific needs such as allergies and pets. So if you have a family and pets, you probably need a cleaner specifically designed to tackle tougher cleaning.

“Buying a vacuum cleaner is often a distress purchase and it is not a product in which consumers have a genuine interest; therefore,

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FLoorCAre

Bosch ModEl Bsgl5225gB pET hair & carpET: “diffErENTiaTioN coMEs ThroUgh fEaTUrEs aNd BENEfiTs aNd ThE rEpUTaTioN of ThE BraNd”

particular. He points out that “the premium price segments account for a significantly larger share of online sales compared to those carried out on the high street.”

In all, the market during the 52 weeks to April 2010 was worth £502.2 million. 5.8 million pieces were sold at an average price of £86 per unit. Uprights hold the greatest value, at £245 million, but the gap is narrowing between these and cylinder models. Cylinders gained more than 10% in value throughout the period.

Another notable performance was in the area of handheld machines, where gfK records a 15.2% rise in value and a 36.6% increase in average price.

Value for money evidence shows that today’s floorcare purchasers are more informed and becoming smarter shoppers, and Vanessa Holloway, freestanding group manager at Miele, believes that, in turn, they are making smarter investments in higher quality products that offer longevity and better value for money. “At Miele we believe that continued consumer education helps to drive considered

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JUNE 2010

“Continued consumer education helps to drive considered consumption”

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consumption and ensures that products are no longer viewed as ‘throwaway’ items.” taking gC through some of the factors that make a difference to floorcare consumers, Holloway is keen to point out that Miele focuses on designing products which are not only built to last but combine exceptional performance with user convenience. “the development of exciting new products creates interest and momentum to drive sales, but also ensures that appliances carry real consumer benefits to make the chore of vacuuming easier,” she says.

Holloway selects the Miele Hybrid – “the very first high-performance cordless vacuum cleaner” – as an example of such a development: “this product demonstrates the importance of understanding consumer demands and designing a floorcare appliance to address them. It combines dust-pickup efficiency with unlimited mobility to make light work of household chores, and its ability to switch to battery-operation makes it perfect for urban or rural living.”

Good brands stand While most retailers will stock a fairly broad range of floorcare products, value for all [consumers and sellers] tends to come from credible brands that provide performance models backed with good service and guarantees.

BSH’s Jane Lee says a trusted brand is very important, “especially in this economic climate.” Her belief is that consumers want a product that will last: “they don’t want to have to find the money for another vacuum cleaner 6 or 12 months later.” Bosch and Siemens back their “built to last” reputation by offering twoand five-year guarantees and “award-winning” customer service. nick Munton, Managing director of electrolux Floorcare, while conceding that the market is very driven by price promotion, believes people are looking for features and performance as well as good value. “If a brand, such as Aeg-electrolux, stands for market-beating performance in the eyes of the consumer, the products have to delivery that. Brands have to be able to communicate to consumers very quickly what it is that they stand for and what they offer them.”

Communication is the key word here.

Faced with the deluge of products available on the market, consumers are flooded with choices. Messages of features such as air watts, motor watts, energy efficiency, S-filters, Hepa filters… and brand-specific technologies, unless explained, can sometimes do little more than serve to confuse. Unless correctly promoted and sold through, the many features offering benefits worth paying for tend to get bypassed, narrowing the purchase decision down to factors such as style, colour and price. electrolux’s Munton believes there is always potential for any retailer prepared

to invest the time and effort to understand consumers’ needs and to ensure that they leave the shop with the right product for the job. “this means training staff on the product range, employing the right point-of-sale material and giving the consumer the right information,” he says.

Bosch’s Lee highlights the “huge value” in the sector for retailers. “the key is consumer education and clear sell-up routes,” she adds.

Ongoing development Floorcare is one of those areas where one would imagine little more could be done or added. But product ranges are constantly being updated and improved and manufacturers continue to explore new avenues in their quest to find new technologies and enhance existing ones. Miele’s Holloway says that future developments will see companies focusing on introducing quieter vacuum cleaners [Aeg-electrolux currently lays claim to having the quietest model on the market with its Ultrasilencer] and continuing the trend for compact and small-scale appliances aimed at households where storage space is limited. “energy efficiency is also always at the forefront of manufacturers’ minds,” she says, “particularly with the forthcoming introduction of the new eU energy labelling directive later this year, which means that consumers will benefit from increased transparency when it comes to understanding the energy consumption of their products.

It has also been proposed that labelling may include noise levels, filtration performance (dust emissions) as well as the energy efficiency on hard floor and carpet surfaces, so manufacturers will also be focusing on these key areas to ensure differentiation.”

SEBOingX4Pet_bl_GetConnect_Layout 1 04/05/2010 12:43 Page 1 SEBOingX4Pet_bl_GetConnect_Layout 1 04/05/2010 12:43 Page 1

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The SEBO range includes the X Series Uprights, Felix Uprights and K Series Cylinders.

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Made in Germany Made in Germany

TV: THE FUTURE

TV Future

What’s the future for the TV market? Is plasma on its way out? What waves will LED technology make, and is 3DTV the next big thing for television or simply a fad that will fail to ignite the imagination of consumers? For some time now, LCD TV has been running away with the ball when it comes to market share. But plasma refuses to go away. George Cole talks to the trade about how they see the TV future shaping up.

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JUNE 2010

“P

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lasma is still holding its own in the UK Market, and volume has grown faster than the LCD market – up 7.7% year-on-year for JanuaryApril 2010. Consumers are demanding the large screen cinematic experience, and plasma TVs represent great value for money, as prices have tumbled over the last 12 months,” notes George Mead, LG’s TV marketing manager. However, Mead acknowledges that the LCD market still accounts for 91% of the total volume of TV sales, because LCD technology is available in the widest range of sizes.

Joni Shakles, Philips’ tV customer marketing manager, says “LCd is continuing its market dominance, with almost all of the market up to 42-inch. Plasma screens are largely confined to very large screen sizes of 50-inch and above.” Andrew Line, toshiba’s tV

product manager, notes that “LCd is certainly still the dominant technology in terms of volume, but plasma screens are generally only available in the larger screen sizes. that said, even if you compare like-for-like sales of similar screen sizes, LCd still outperforms plasma in terms of volume, so we’re definitely seeing a market preference for LCd over plasma at the moment.” darren Petersen, Samsung’s content manager, tV and Blu-ray, adds: “Roughly speaking, LCd accounts for around 90% of all tVs sold, but remember plasma only starts from 37- or 42-inch upwards, so if you take the smaller screen away, plasma is very much holding its own in the large screen area and still proves popular with many tV buyers.”

Panasonic product specialist Steve Lucas agrees: “the 37-inch plus market is a stable mix of LCd and plasma.”

Big-screen value Plasma sales have been helped by the decreasing footprint size of large screen flat display sets, which means consumers can squeeze larger screen tVs into their living rooms. Plasma offers the best value in terms of pounds per screen inch, and so has tempted many consumers to opt for sets using this technology. Panasonic is also pushing plasma as being the best display technology for active 3dtV systems, which use fast-moving shutters, although LCd tV manufacturers beg to differ. there is certainly no doubt that reports of plasma’s imminent demise are exaggerated, and while LCd tV sales will continue to grow as consumers upgrade old CRt-based second and third tV sets for flat display models, plasma will continue to have a significant presence in the large screen sector.

LED in the mix LCd tV backlight technology offers a choice between plain vanilla Cold Cathode Fluorescent Lamp (CCFL) and Led technologies. the latter offers a number of benefits, including improved brightness and picture quality, and lower power consumption. edge-lit Led systems enable tV manufacturers to make even slimmer sets. no surprise that Led backlight systems have been

TV: THE FUTURE

Promoting the experience

the preserve of top-end models, but is there any sign of this technology migrating to the mainstream part of the market? “there are certainly more Led products on the market than this time last year, and it’s becoming a more mainstream technology, as consumer awareness increases,” says toshiba’s Andrew Line. “the slimness of the Led ranges is a major attraction to consumers, and sales staff are very aware of the benefits of Led, so it has become the natural up-sell.” In 2009, toshiba had large-screen Led models at the very top of its range (in the form of the RegZA SV series), but this year, toshiba is broadening its Led offering and has recently announced a much expanded Led range – including 32inch models.

“We were one of the first manufacturers to adopt Led backlighting and we believe the technology will play a dominant role in the mid-term future of LCd tVs,” says Philips’ Joni Shakles. this year, virtually all of Philips’ new tV range will offer Led backlighting. the backlighting will come in two versions, with the mid-range 7000 and 8000 series sets featuring edge-lit Led technology. these sets will have rows of Leds at the top and bottom edges of the set. In the top-end 9000 series sets (including the new 21:9 model), Philips will feature Led Pro technology, which uses an array of Leds behind the screen, split into clusters, which can be individually brightened or darkened. “the wholesale move to Led will be the most significant trend in 2010, and we are keen that mainstream consumers will be able to get access to the benefits that Led brings,” says Shakles.

Samsung will be offering Led technology across a wide range of LCd sets; Panasonic has launched the d28 Pure Line series of Led tVs; Lg is launching over 30 Led tVs in 2010. there’s no doubt that Led technology will be more affordable this year, with the market split between “basic Led” sets and “advanced” versions that will command a fair premium.

Another dimension? the tV industry is making a lot of noise about 3dtV, but whether it is enough to convince consumers that 3dtV is the future remains to be seen. Certainly, some manufacturers are keen on the technology. “3d is an exciting new development in tV, and there appears to be a huge amount of interest from consumers with regards to the technology. Most of our 8000 series and all of the 9000 tV range will be 3d Ready models this year,” says Shakles. Lg’s Mead is equally enthusiastic: “2010 is undoubtedly the year of 3d. Lg believes it is truly a highgrowth area of home electronics and we aim to achieve 25% share of the 3d tV market this year alone.” Samsung’s Petersen adds: “3d has created a huge buzz in the industry.”

Panasonic has launched a 50-inch 3dtV set and a 65-inch model is set to arrive in July. But other manufacturers are being more circumspect: Andrew Line espouses the

tV manufacturers are doing their best to persuade consumers: Panasonic is offering a promotion of two complimentary 3d Blu-ray movies (Coraline and Ice Age 3) when consumers purchase a tX-P50Vt20B or tX-P65Vt20B tV and Blu-ray player from an authorised dealer before 31 July 2010; Philips offers owners of its 3d Ready sets an optional 3d expansion pack, which includes a transmitter and two pairs of active LCd glasses. “this approach offers consumers the chance to invest in the technology if they want to, but without adding cost to the basic set. It also gives consumers the option to upgrade in the future if they are not yet sure about the benefits 3d will provide,” says Shakles.

Although the story is that 3d Ready sets are “format agnostic” and will display both active and passive 3d systems, the reality is not so straightforward. Consumers will still need to ensure that they have the right 3d glasses for the right system – and some pairs of glasses cost up to £100 each. “Lg is working to educate consumers on the ins-and-outs of the various 3d technologies, so that they are comfortable and informed of everything they need to know to get the right system for them,” says Mead. the Lg nationwide Road Show has home entertainment experts visiting different destinations around the country to offer advice and tips to consumers, with an opportunity for hands-on reviews. this is a good move, but the various 3d systems on offer make it a harder sell and retailers need to ensure that consumers who invest in 3dtV know exactly what they are getting for their money. the jury is out on whether 3d has a future in the cinema, and things are even less clear about its potential as a mass market home medium. this market will be driven by a plentiful supply of compelling content from both broadcasters and Blu-ray disc companies; low-cost 3d glasses and systems that require viewers to do nothing but look at the tV screen. As things stand, 3dtV ticks none of these boxes.

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“wait for the right time” approach: “toshiba is monitoring the demand for 3d technology, and has in place the technology to launch a 3d Ready television. the content – which is what will ultimately drive sales – is limited at the moment, but we’re watching the market very closely and will provide a 3d offering when we believe the time is right to do so.”

Content is certainly an issue. “despite the current lack of content available the signs are that by the end of the year there will be more 3d Blu-ray movies and 3d gaming available for consumers to enjoy the 3d experience,” says Petersen. “More and more content is becoming available, with Sky launching 3d, many games, as well as films,” notes Lucas. But nearly all broadcasters will not be offering 3d broadcasts in the foreseeable future (most are still busily trying to increase their HdtV offerings), and the number of 3d Blu-ray titles is likely to be small, even around Christmas.

Which begs the question: why should consumers buy into 3dtV now?

JUNE 2010

“2010 is undoubtedly the year of 3D”

23

GROWTH FROM KNOWLEDGE

3D or Full HD,

Growth from Knowledge

that is the question.

The TV market in the UK is crucial to the CE sector. With the adverse economic conditions Taking their toll on sales, volume is expected to be down in 2010, but there are a number of factors – not least the Football World Cup – which will help stimulate the market this year.

Nick Simon, GfK Account Director, CE, examines the prospects for 2010.

T

he first few months of 2010 were miserable in many respects. Bad weather, combined with a still uneasy economic outlook, and the impending election, did not encourage consumers into retail parks or onto the High Street.

At least online sales improved when comparing the first quarter turnover of 2010 with the first three months of 2009, still up 4% compared to a decline of 3% for all CE. In 2007, 2008 and 2009, total TV sales amounted to a staggering 25 million units, equivalent to one per household, so there had to come a time when there would be a slowdown of sorts. It is unlikely that 2009’s ten million unit haul will be repeated in 2010, with total sales likely to be nearer nine and a half million. However, there should be extensive interest generated by a multitude of different stimuli.

TRIUMPH OF HOPE OVER EXPERIENCE? First and foremost, we are about to set foot on the familiar path of overwhelming hope and eventual disappointment that characterises our every four years‘ participation in the football World Cup. The link between this tournament and sales of TVs was somewhat tenuous before 1990, not helped by the failure of the England team to qualify, either in 1974 or 1978, during the first boom in sales of colour TVs. However, recent tournaments have been very successful for retailers and manufacturers, coinciding with the mass market adoption of first 16:9, then Flat Panel LCD and Plasma. Every four years, the late Spring and early Summer account for a significantly increased percentage of annual TV sales, and this year would have been no different anyway, but it is worth talking about the above mentioned “stimuli.”

The weather has finally perked up, and at least the election is over, even if there is still doubt about prospects for the economy.

We can now look forward to the advent of 3D, already used to good effect in cinemas and sports broadcasts, and expect a significant impact to be made later in the year.

As the title of this piece implies, Full HD is fast becoming the norm for larger screens, and will certainly account for well over half of TV turnover by the end of 2010. Equally encouraging is the growth of LED TV, with more than a quarter of a million units sold to date, and web enabled TV, already accounting for half a million units. The other innovation to tempt consumers up to, during and beyond the world cup, is the availability of TVs incorporating Freeview HD tuners as a central pillar of many manufacturers’ new ranges of 40”+ products, not forgetting Freesat HDTVs.

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Finally, the popularity of TVs is enhanced by the need that many consumers have to purchase second, third and even fourth TVs. The relatively small “footprint”, even of larger Flat TVs, allows them to fit happily into bedrooms and studies, but, maybe surprisingly given the different possibilities existing in the offer of larger TVs, the most buoyant market in recent times is still the 22” TV, often incorporating DVD. Strange to think that, as recently as 1990, the most popular “large screen” TV was the good old FST 21”!

R G -1-T O PLI N E: LO N G T ER M VA LU E SC R EEN S I ZE R G -1-T O PLI N E: LO N G T ER M VA LU E SC R EEN S I ZE

For further information please contact Nick Simon in the UK on +44 870 603 8128 or email nick.simon@gfk.com

www.gfkrt.com/uk

The D&G Column

The D&G Column Four steps to profit In the first in a new series from leading warranty provider and awardwinning trade communicator Domestic & General, National Account Director Jeff Griffiths presents some straightforward steps for retailers to achieve greater profits and enhanced customer loyalty Introducing the idea of warranties and protection plans as early as possible is a strong, positive move, and one that sales staff should adopt as second nature. Few customers are confident about making snap decisions, especially when they involve spending money, so giving the customer time to think about the warranty purchase is a good thing.

Some sales people may feel uncomfortable introducing this element to the sale early – or at all, given the past reputation of warranty sales. But it can be done in a positive, caring way as part of the information gathering stage in the sales process. the sales person will be asking such questions as: “What features are you looking for?” “What do you have currently?”

“What has generated the need for purchase?” the answer to this last question can form the structure of your sales pitch. It may be: “the last one only lasted 3years,” or “It was damaged, or “I want another one just like it as it has served me well over the last 10 years.” each of these creates an opportunity to ask: “Before we go any further, was the product protected by one of our new for old for life plans? the reason I ask is that many of our customers have this cover, and it would save you the cost of buying a replacement.” then, as the seed is sown, move on to the product sale, leaving the customer time to think, and maybe ask you questions.

Nurture the seed, giving reasons to buy As the sale or demonstration progresses, introduce other benefits of cover. For example:” Another good benefit of our new for old plan is that it also protects you against

the unforeseen, the stuff that happens such as damage caused by accidents.” Remember, every product you sell can be damaged accidentally – be it by coins in a washing machine or sand in a camcorder on the holiday beach. the key to your sales success is to identify from the customer which benefits would generate more value to them as they consider the extra cost of a warranty plan. Home in on the preferred benefits.

Quote early and low When responding to a customer query, or advising on costs of cover, make the cost more easily digestible by offering the 3 year plan on the 10 month direct debit easy payment terms. For example: “It’s from only £5.50 a month over 10 months.” Smaller amounts over a set period of time can be more manageable and acceptable to many customers.

Harvest the crop there is no point in preparing the ground unless you capitalise on it. So always ask for the business.

With the preparation done, now when you reach the till the customer has been told about big benefits at low cost, and should have given the warranty option more consideration. don’t spoil it by asking closed questions that can easily be answered “no.” try something like: “Your product comes with a 1 year basic manufacturer’s guarantee. What length of protection would you like?”

If they don’t immediately respond, give them time to think! they may come back with: “ I’m not sure. What do you think?” the golden opportunity to make the extra sale!

JUNE 2010

Sow the seed early

get ConneCted

M

any salespeople struggle with warranty sales because they are not confident in asking for the sale. This is often because they leave it until the final stage of the sale at the till, and then broach it with a closed question such as: “Would you like an extended warranty?”

At this late stage, if they have not already interested the customer in the benefits of a protection plan, there is no reason to say “Yes,” and, faced with a new decision that requires some thought and explanation, it is easier for the customer to say “No.” This perpetuates the myth that customers do not want warranty products.

Here is a proven, simple structure to allow sales staff the opportunity for greater success in their warranty sales. A structure that will generate additional profit for your business, peace of mind for your customers and the incentivising prospect of extra commission for your sales people:

JEff GriffiThs, NaTioNal aCCoUNT DirECTor, DoMEsTiC & GENEral sErviCEs lTD.

25

GEORGE COLE GETS CONNECTED

George Cole George Cole pinpoints hotspots in the world of consumer electronics.

E-mail: georgecole@gcmagazine.co.uk

AmnEsty or GAmblE?

GooGlE your tV

As you read these words, the analogue radio amnesty is in

It had to happen: Google is moving into the tV business.

full swing. The question is, will the amnesty convince large

If anything has got a screen, Google wants to be on it,

numbers of consumers to trade in their old analogue radios

whether it’s a computer, mobile phone, and now, your TV.

for digital models? I hope I’m wrong, but I’m not convinced

Internet TV services are not new of course: Panasonic

that it will. The campaign did not get off to a great start with

offers Viera Cast and Samsung has Internet@TV. But while

some people asking whether analogue radios were now illegal

these services offer a closed internet service (you can

objects like knives? The 10-20% discount on a new DAB radio

only go to selected websites such as YouTube), Google TV

doesn’t seem that generous, and controversy around the BBC

will offer full internet access on your TV. Sony will be the

considering scrapping 6Music and the Asian Network has

first manufacturer to offer TVs with Google TV built-in, but

confused some consumers about the future of digital radio.

expect others to follow; Google doesn’t believe in doing

I’ll be interested to hear from retailers what the amnesty did

exclusive deals with manufacturers. Personally, I find it

for their DAB sales.

hard to get excited about Google TV, as accessing the

I can see why the radio amnesty scheme was launched:

internet on your TV is not the same as being online on a PC,

the car scrappage scheme helped boost car sales and if the

where the screen is inches away and you can use a proper

analogue radio switch-off is to take place around 2015, then an

keyboard and mouse. However, the idea of watching BBC

awful lot more people need to be listening to digital radio if the

iPlayer programmes and YouTube videos on a living room

50% threshold (which will trigger a timetable for an analogue

TV with no hassle is great, which is why I think Samsung is

switch-off) is to be reached ahead of the date. You don’t need

on to a winner with its Internet@TV system, which will soon

me to tell you that switching off analogue radio is a tougher

offer both services.

job than ending analogue TV. With digital TV, you could buy a new IDTV, a cheap set-top box or a DVD player with a built-in digital tuner and switch to digital, but there are no FM-to-DAB converters. And somehow, people seem more attached to their radios than to their tellies. The price of DAB radios is falling (you can now get a quality brand model for less than £20), but they are still perceived as having high running costs if you use batteries. Reception remains an issue, and then there’s the thorny issue of car radios.

The World DMB Forum, responsible for the DAB, DAB+ and

GET CONNECTED

JUNE 2010

DMB standards, is holding a meeting with car manufacturers in

26

June to discuss the issue of in-car digital radio, and many car manufacturers are now fitting DAB radios into new models as a standard feature or offering them as an optional extra. But that still leaves the millions of cars with existing analogue radios.

Others are calling for the UK to adopt the DAB+ standard or for the promotion of internet radio. It’s all getting rather messy, which is a shame, as DAB has a good story to tell. Sadly, I can’t see analogue radio going anywhere within five years, and even a ten-year deadline for a digital radio switchover seems optimistic.

My TV feature wish-list.

Oh, for a television that offe red the following features:

1. A TV set that automaticall y mutes the annoying voiceovers you get at programme end credits.

2. A TV set that automaticall y blocks those “next time” clips at the end of the program me, which reveal the complete plot to next week’s episode.

3. A TV set that automaticall y mutes the annoying introduction to news program mes, which basically tells you the whole story whil st the opening credits are still running.

4. A TV set that automaticall y changes channels whenever an irritating celebrity appears on-screen (this feature would be program mable by the viewer).

FROM THE BENCH

E-mail: fromthebench@gcmagazine.co.uk

Why do TV and video manufacturers use such bad components? asks Alan Bennett often to the point where the repair job’s

caused notorious reliability

economic viability is in doubt.

The inverter’s role is to provide a high-

equipment. Now that’s largely resolved,

voltage low-current (e.g. 3kV p-p at 50kHz)

but several issues remain, mostly related

AC operating supply for the tubes, and a

to low quality components used in

weak spot in many designs is the ferrite-

manufacture.

cored step-up transformers, whose turns

CHEAP AND NASTY ELECTROLYTIC CAPACITORS, THEIR FAILURE SHOWN UP BY BULGING TOPS

may short together or whose very thin wire

technical and physical terms are under-

might break due to stresses introduced

rated power-supply components, bad

The largest single category of early-failing

during the manufacturing process. Thus

‘heat management’, and in some cases

components is electrolytic capacitors.

again for the sake of a single low-cost

really buggy and flaky software, giving the

Mainly used for smoothing and decoupling

component the whole caboosh might be

impression that some gear is released too

low-voltage supply lines, they depend for

written off or at best be costly to repair.

hastily onto the market – and designed on

their operation on a thin oxide film formed

Let’s hope that the driving circuits for the

the hoof thereafter. Whether or not that is so,

on the surface of the positive plate when a

new LED backlights will be more reliable.

thank heavens for flash memories and over-

DC polarising voltage is applied. They offer

Resident villains in TV sets are not

Capacitors

air updating. Some manufacturers seem to

a low impedance to ripple superimposed

confined to these, however. The high-speed

on this DC voltage, inversely proportional

pulse drive to an LCD display panel is

to their capacitance. This effective series

called the LVDS signal, and it demands

Why?

resistance (ESR) is the main indicator of a

excellent performance, especially in terms

Many reliability, repair and component-

capacitor’s ‘goodness’; It’s measured with a

of impedance matching, insulation and

supply problems stem from the simple fact

purpose-designed test meter.

leakage, in the lead/plug/socket interface

that cost competition drives setmakers

between the main and display boards.

to use the cheapest possible production

deteriorate very quickly – sometimes within

Many of those in use are not up to it and

methods, along with short production runs.

months – in hard-working roles such as secondary reservoirs in low-voltage power supply circuits. When they fail the equipment goes down and sometimes, for want of diagnosis and repair, it gets scrapped. That seems like a crime: against humanity and the planet! For the sake of just a few pounds at most for better-specified and better-made capacitors this problem could be eliminated.

Capacitors should be given a reliability specification based on internal ripple current as well as temperature....

have to be replaced; the use in the factory

This is also true of white goods, particularly

of hygroscopic (moisture-absorbing) glue at

washing machines. Low factory-cost

this point does not help! This problem has

products do not lend themselves to easy

been known for decades. Mains switches,

repair, and in real terms everything in our

too, can be notoriously unreliable in some

shops costs a fraction of what it did 20 or

makes and models which use them.

30 years ago. Still this does not excuse the

The problem is that cheap ones

Zapper failure

have much more need of this than others.

use of cheap and nasty small components like those described above. Maybe the

The brilliantly designed and made Sky

manufacturers don’t give a monkey’s toss, so

remote controls have taught us that the

long as the equipment makes it through the

zappers don’t have to be unreliable and

one-year guarantee period without a claim

short-lived. Yet many are, because the

being made. Certainly there is little brand

conductive pills under the keys wear out,

loyalty left now in the mainstream of brown

or as a result of the entry of pollutants in

goods, and not much in white goods. Such

In LCD thinscreens the next most notorious

poorly-sealed units. Well-designed ones

as remains is exploited by some respected

component is the backlight-supply inverter

(admittedly more expensive than most) can

manufacturers with shoddy products, and

assembly, used in all sets which use

go on for many years and retain legibility

blown to bits anyway by the commonality

fluorescent tubes. The failure modes here

of the printing on or beside the keys. OK,

of product amongst several different

are less clear than for capacitors because

replacement units are easily available and

brand names, often ranging across a wide

full circuit and operating details are seldom

cheap, but the inconvenience of getting hold

spectrum of price, status and market share.

to be had, and neither is fault-finding

of them is a pain in the butt!

Backlight inverters

advice; and because individual components

Component specification aside, the

Of course, your viewpoint depends on the role you play. Repairmen do well out of

are not available for them. Complete

general design of TV, audio and video gear

component failure while rental operators

inverter-board assemblies quickly go out of

is now very good, driven by competition

don’t like it at all. For those purely into retail,

stock (sometimes before the guarantee has

between manufacturers and a very critical

well, failed equipment has to be replaced,

expired) and can be hideously expensive,

customer base. Some notable exceptions in

doesn’t it?

JUNE 2010

problems in home electronics

GET CONNECTED

A

few years ago lead-free solder

27

BACKCHAT

An outdoor adventurer with a taste for exotic locations, Hotpoint brand director Susannah Holloway is a determined and hardworking character who always has a view and positively relishes the challenges of multi-tasking. Add to that a taste for fresh fish and the ability to overcome an inherent dislike of creepy crawlies, and she appears to be the resourceful and decisive companion we’d all want on our side, whether stranded on a desert island or up against it in the boardroom.

Why did you choose to work in the electrical industry?

My very first job was in the electrical sector with Thorn eMI Lighting, and my career just evolved after that into brown goods, white goods and SdAs

Who in the industry would you like to spend time with? george Clarke (Renovation Man) or Kevin McCloud (grand designs)

Hobbies?

Adventure travel and horse riding

What’s your greatest regret? never taking a gap year to travel after graduating

How would you describe yourself?

Like (and need) to juggle 100 balls at one time and see how few I can drop; a spirit of adventure lurking underneath

How do you think others see you?

Hard to say - probably ambitious, hardworking, good commercial head, someone who always has a view

What’s your pet hate?

‘Yes’ people - people who don’t stand and speak up for what they believe in.

JUNE 2010

Plenty, but none I would like to share!

geT ConneCTed

do you have any bad habits?

I would get involved with building renovation and re-design of period properties

30

If you weren’t in your present position, what job would you choose to do?

What surprises you? every day is a different day and I always learn and experience something new

Favourite cuisine?

What’s your greatest fear?

I like a wide variety of cuisines but especially fresh fish

not having enough time to fit everything into my life that I want to do

You have been offered a leading role in a film of your choice, what character would you like to play?

What’s your favourite piece of kit?

Too busy in the great outdoors to watch too many films

If you ruled the world for a day, what would be the first change you would make?

My ipod for escapism and my car to get from A to B, as I live in the middle of nowhere

What motto do you live by?

Believe in yourself and remember that anything is possible…at least that is what I preach to myself

To stop all the pointless fighting all over the world

do you have any particular phobias? not hot on creepy crawlies, but with the type of travel I do, I get used to it!

Who has been the greatest influence in your life?

Probably my parents who have demonstrated how you can be successful through sheer hard work and determination

What do you daydream about?

Having more time to travel the world

Favourite holiday destination?

Africa

What’s the worst thing that’s ever happened to you?

Losing a parent as a child

Where do you see yourself in 5 years’ time? either running Indesit Company UK, or something completely different not associated with the electrical world – my own business venture

Independent retailer:

“Vince Cable has promised to take a tougher line with banks, make them lend what they agreed to small businesses and – very importantly – to set about separating high street retail banking from investment banking. I’ll always remember the Get Connected editorial comment where the steady, unexciting but honest and locally knowledgeable Captain Mainwaring represented traditional retail banking, and the highearning, risk-taking Sir Fred Goodwin represented the greed and danger of investment banking. We’ve learned they don’t mix, and as a small business I’d choose Captain Mainwaring every time.

Let’s hope we get the choice.”

White goods manufacturer:

“We’re beginning to see the green shoots. I hope the Coalition’s line on deficit-cutting doesn’t hit them with a killing frost.”

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