Get Connected: May 2012

M AY 2 0 1 2

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HOME LAUNDRY & GARMENT CARE Big and clever: Large capacity is driving the market, but garment care and energy efficiency are also priorities

CI(H) SPRING SHOW A closer assessment of Euronics’ new-look Spring Show in Birmingham

LINEAR PROGRESSION The story behind LG’s Linear Compressor technology

GEORGE COLE GETS CONNECTED The digital TV switchover…

It’s not over yet

BACKCHAT Baumatic’s Rita Balestrazzi gives a 2-minute interview

DAB/FM RDS stereo sound system with CD player, dock for iPod and acoustically tuned wooden cabinet

SOUND 100 • Dock for iPod and iPhone • MP3/WMA playback via CD • Multi function remote control • Clock and multi function alarm • 20 Station presets • Six position equaliser and separate bass and treble • Headphone socket • Aux input socket for MP3 playback

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www.robertsradio.co.uk www.facebook.com/roberts.radio

CONTENTS

04 06 16 20 22 31 p21 KITCHENAID 6.9L ARTISAN® STAND MIXER www.kitchenaid.co.uk

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The Word

In and around the industry / / / / / / / / / / / / / / / /

Springtime for Euronics

A closer look at the new-format CI(H) Spring show in Birmingham / / / / / / / / / / / / / / / / / / / /

/ / / / / / /

The Product Gallery

Home Laundry & Garment Care Big but gentle. The new generation of laundry appliances

/ / / / / / / / / / / / / /

Growth from Knowledge

GfK on the positive facts and figures in the UK home laundry sector / / / / / / / / / /

George Cole Gets Connected

Digital TV switchover in the UK: more disruption ahead for viewers as 4G starts to interfere? / / / / / / / / / / / / / / / / / / / / / / / /

From the Bench

Alan Bennett recommends a valuable source of knowledge for retailers

Copyright © 2012 Mud Hut Publishing Ltd. All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior permission of the publisher. Get Connected is published by Mud Hut Publishing Ltd., Alresford House, 60 West Street, Farnham, Surrey GU9 7EH.

Editorial Comment

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Backchat

Industry comment and a 2-minute interview with Baumatic marketing manager Rita Balestrazzi

Editor in Chief: Marlinda Conway Telephone: 01420 886 33  marlinda@gcmagazine.co.uk

Editorial & Publishing Director: Terry Heath Telephone: 01420 886 33 » terry@gcmagazine.co.uk

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MAY 2012 GET CONNECTED

3

EDITORIAL COMMENT

Marlinda Conway Editor in Chief

The news that caught our eye

this month is that a leading UK politician has finally come up with the complete answer to the UK’s sluggish economic performance and persistent lack of growth: he’s told British business to stop moaning about the situation and work harder.

“There’s only one growth strategy: Work hard.” That’s what he said. Not, in itself, a bad precept for business. But for front-line workers in the “real” economy – including electrical manufacturers, retailers and their commercial partners who have been working quite hard for the last three or four years just to survive – it’s likely to prompt that time-honoured response involving a strategically positioned broom enabling them to add sweeping the floor to all their other essential tasks.

It’s also likely to get some of us thinking about whether the “only” growth strategy is to work harder.

What about the bankers who grew their personal wealth – and are continuing to do so – by simply being less effective at doing their job of serving the “real” economy?

What about the politicians, who, having been exposed for their generally cavalier attitude to the expenses they claim out of our money, have now weathered the storm, seen a few of their colleagues jailed for fraud, and quietly gone back to enjoying a level of taxpayer-funded accommodation, home improvements, travel and other perks that the average “worker” can only dream of?

What about the leaders of our top FTSE business organisations, whose remuneration packages continue to rise in spite of the fact that the companies they run are under-performing, losing share value and profitability at the expense of their

shareholders (that’s us, and the funds in which our pension contributions are invested)?

Why should all this be a subject of concern for an electrical trade magazine? This is our business, because manufacturers and retailers and all the machinery that keeps the UK electrical industry going has to work with these people, and the decisions they make affect the “real” economy profoundly.

These are not party political matters – the criticism of politicians is evenly distributed across all parties. We’re not anti-profit. We’re not anti-wealth. Far from it. It’s what we’re all working for. But we are anti-incompetence, anti-greed, anti-corruption and, above all, antitaking unfair advantage of the work put in by our industry to haul the UK into growth.

Working together for proportionate rewards is how business works. Symbiosis good. Parasitism bad.

The CI(H) Spring Show in Birmingham, for example, (see p16-19 of this issue) showed what business people can do, working together for mutual benefit. Knowing what you’re doing, working hard and co-operating with business partners produces results. We’d hate to see those results compromised.

Finally, our Prime Minister has been reported in the national media delivering the warning that “we are living in perilous economic times.”

We can almost hear the admiring collective reply from front-line electrical manufacturers, retailers and distributors: “No s**t, Dave!”

Terry Heath Editorial & Publishing Director

Will Dobson Creative Director

James McIntosh Consumer Consultant

George Cole Consumer Electronics Consultant

Average net circulation for the 12 issues distributed between Jan-Dec 2008 is 6,228

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GET CONNECTED

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Not weeks.

You have it in black and white.

Now it’s easy to add a splash of colour to your customers’ dream kitchen. To learn more about Leisure please visit www.leisurecp.co.uk or call 0845 8505008. *Leisure Colours are stocked in the UK for delivery within days, however due to demand there may be some rare occasions where stock is not available. Some models available from Summer 2012, contact your local sales consultant for more details.

in and around the industry

Wet April dampens Shop Price Index shows electricals prices fall less sharply as “marginretail sales

T

THE slashing discounting” abates

Word

he wettest April since records began, together with an early Easter that pushed some holiday shopping into March, produced discouraging April 2012 retail sales figures. According to the BRC-KPMG Retail Sales Monitor, like-for-like sales value was down 3.3% compared to April 2011, and, on a total basis, down 1.0%.

Stephen Robertson, director general of the British Retail Consortium, said the figures were disappointing.

“Consumers, struggling to balance their household budgets, remain reluctant to spend unless they really have to and the weakening economy is likely to mean people are even more cautious about their finances. With any significant improvement in the difficult underlying conditions a long way off, a lift in the public mood would at least give retailers a short-term boost.”

Commenting specifically on the April electrical retail performance, the BRC had this to say: “The softening trend evident over the past few months continued, with larger items particularly affected by the squeeze on household budgets and the housing market slowdown. White goods remained slow, often concentrated on distress purchases rather than upgrading. Smaller domestic appliances held up better, with kitchen essentials generally stronger than personal care.

Growth in brown goods slowed despite some aggressive discounting and promotions: flat-panel TVs, home cinema, audio and satnav were all affected. Digital cameras showed some improvement and games consoles remained strong.

Laptops eased a little and desktops continued to decline.”

Looking ahead, KPMG head of retail Helen Dickinson had little comfort for the UK retail sector: “Taking April and March together, like-for-like sales are in negative territory and any growth in total sales is coming from inflation. The sector is undergoing structural change as our desire to consume ever increasing volumes of goods diminishes and technological advances continue to change the way we shop. While May will certainly be brighter than April, the health of the retail sector continues on a downward trajectory.”

Dixons KNOWHOW expands into white goods repair Dixons Retail has confirmed it is to extend its nationwide KNOWHOW service with the establishment of an in-house repair service for white goods covered by the company’s Customer Support Agreements. The move will create around 100 jobs.

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GET CONNECTED MAY 2012

The latest British Retail Consortium – Nielsen Shop Price Index for April shows that overall shop price inflation fell to 1.3% from 1.5% in March. But, importantly for electricals, the pattern of upward spiralling food and utilities prices being offset by deep price cuts in non-food items appears to be changing.

Food inflation slowed to 4.3% in April from 5.4% in March, but the encouraging sign for electrical retailers is that the promotion-driven downward rush of household goods prices, which has consistently pushed non-food into deflation, shows signs of leveling out. Non-food price deflation slowed from 0.9% in March to 0.5% in April.

Good news for an electrical industry struggling in some categories to achieve viable margins.

The BRC’s director general Stephen Robertson said: “Promotions remain essential to generating sales of goods

that are not immediate needs. Clothing, shoes, electricals and furniture were all cheaper than this time in 2011 but margin-slashing discounting cannot be sustained forever.”

It’s a comment that will strike a powerful chord with electrical retailers, for whom the “good news” of lower prices for consumers is eclipsed by the near-suicidal margin-wrecking promotions that have blighted some sectors of the consumer electronics industry in the UK, dragging prices down to unlivable levels.

But we are not out of the woods, yet. The BRC pointed out that the electrical category continues to be one of the main drivers of deflation in the non-food sector with an annual rate of -5.0%. What the industry now needs is continuing downward pressure on food and utilities prices, with electricals prices moving upwards into more realistic and sustainable territory.

Retail administrations up 15% year-on-year The number of retailers falling into administration in the first quarter of this year increased by 15% to 69 compared with the same period last year, according to research by business advisory firm Deloitte.

The evolving landscape of the retail sector was highlighted in Deloitte’s recent Store of the Future report, which described how retailers need to redefine their store proposition and address changing customer needs. The report suggests that some retailers may have to reduce their

property portfolios by up to 40% in the next five years.

Lee Manning, restructuring services partner at Deloitte, said the first quarter of 2012 was particularly significant given the high profile nature of the companies failing and the fact that the quarter-on-quarter increase was 64%.

“A fast-changing retail environment will require certain businesses to reassess their store portfolios, not as a matter of choice, but in order to survive,” he added.

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THE WORD | INDUSTRY NEWS

CELEBRATES TENTH BIRTHDAY WITH A “BRITISH CLASSIC”

P

ure has introduced a commemorative, special edition digital radio to celebrate the tenth anniversary of the launch of the brand and the tenth birthday of its Evoke radio.

The ‘Evoke Mio Union Jack’ is now in stores and 500 limited edition models will be produced, each with a uniquely numbered commemorative plaque.

Colin Crawford, Pure marketing director, commented: “When we launched the original Evoke in 2002, we never imagined that we would see crowds queuing down Oxford Street to get their hands on one, but that’s what happened, and the rest, as they say, is history.”

Pure was established ten years ago as part of Imagination Technologies (one of the world’s top three suppliers of semiconductor intellectual property) to showcase new licensable technology created

by Imagination. The Pure Evoke-1 was the first high-volume sub-£100 digital radio on the market. Now, over 70% of DAB digital radios are powered by Imagination’s technology.

“We are incredibly proud of the Evoke’s success and proud to be flying the flag for British design and technology,” said Crawford. “2012 is going to be an exciting year for Pure as we are launching our first non-audio product and expanding our cloud-based services as well as introducing a strong roadmap of digital radios in the run up to digital radio switchover.”

Pure’s success in digital radio in the UK is now being replicated throughout Europe, Australia and North America, with over 4 million broadcast and wireless audio systems sold so far, including sales of over 1.2 million products from the Evoke family.

DIGITAL RADIO MILESTONES 1995: BBC switches on national digital radio multiplex with Radios 1–5, Parliament and Sports Plus 1999: Digital One, the first national commercial digital radio multiplex, launches with Planet Rock, Talk Radio (now talkSPORT), Classic FM, Virgin Radio (now Absolute Radio) and Core (a Top 40 station operated by GWR) 1999: First production digital radio tuner goes on sale 2000: Digital One begins rollout of first 20 transmitters 2000: Imagination Technologies (Pure’s parent company) launches the DRX-601E DAB tuner under the VideoLogic brand, bringing digital radio tuners to a new, affordable price point 2001: Frontier Silicon launches Chorus 1 low-cost digital radio chip using Imagination Technologies’ Intellectual Property 2001: VideoLogic announces Pure DRX-601 EX, the world’s first portable digital radio (SRP £499) 2001: DRDB (Digital Radio Development Bureau), the body set up to represent the BBC and 8

GET CONNECTED MAY 2012

commercial digital radio, launches a limited edition £99 radio with VideoLogic to celebrate the 100th anniversary of Marconi’s first wireless transmission and to gauge public interest in the £99 price point.

The radios sell out in one hour. 2002: BBC digital-only stations launch, including 1Xtra, 6Music, Radio 7, 5Live and Asian Network 2002: Pure Australia opens and works with government to establish digital radio trials 2002: Pure Germany opens (incorporating Switzerland and Austria) 2002: The Pure brand is born and the iconic Evoke-1 launches. Evoke-1 was the world’s first mainstream sub-£100 digital radio and the first product launched under the Pure brand. 2003: Pure launches the world’s first pocket digital radio (PocketDAB 1000) 2003: Evoke goes stereo with the launch of the Pure Evoke-2 2004: Pure launches the Bug, the world’s first digital radio with EPG, pause, rewind and record 2005: Fun Radio (now Fun Kids), the only radio station for children, launches

2005: Pure launches Sonus-1XT, the world’s first digital radio for the blind and visually impaired 2005: Pure updates Evoke-1 and re-launches it as Evoke-1XT 2005: Pure launches Evoke-3 with pause and rewind and recording to SD card 2006: Pure ships its millionth radio 2006: Evoke-1XT gets a rock star makeover with the launch of the Evoke-1XT Marshall 2007: Pure launches Highway, the world’s first in-car digital radio adapter 2007: Pure Evoke-1XT Marshall digital radios are signed by rock stars including Eric Clapton, Oasis and Muse and auctioned for the Nordoff Robbins music therapy charity 2008: Pure launches first Energy Saving Trust approved radio range 2008: Pure Evoke gets a colourful new look with the launch of the Evoke Mio in Chili, Candy, Moss, Noir and Chocolate 2008: Virgin Radio is rebranded as Absolute Radio 2008: Pure ships its 2,000,000th radio 2008: Pure launches best sounding Evoke yet: Evoke-2S with Clearsound technology

THE WORD | INDUSTRY NEWS

2008: The Pure Evoke goes online with the launch of the Evoke Flow 2008: Pure launches the Lounge internet radio portal (www.thelounge.com) 2008: Listeners and high-profile rock stars successfully campaign to save Planet Rock from closure 2009: Digital Britain report recommends a digital radio switchover date of 2015 2009: Amazing Radio (replacing popular birdsong channel), UCB, Premier Christian Radio and BFBS Radio (British Forces Broadcasting Service) launch nationally on digital radio 2009: Absolute Radio launches Absolute 80s 2009: Pure launches Sensia, the radio for the Facebook generation and the world’s first highresolution touchscreen digital radio 2009: Pure ships its 3,000,000th radio 2009: Pure France opens (incorporating Belgium and Netherlands) 2009: Pure USA opens 2010: Absolute Radio launches new services including Absolute 90s and Extra 2010: Smooth Radio launches nationally on digital radio

2010: BBC 6Music saved from closure due to popular demand 2010: Pure launches the first integrated music tagging service (FlowSongs, now Pure Tag) 2010: The Evoke-1S Marshall is born, and yes, the volume still goes up to 11 2010: Evoke goes designer with the launch of Evoke Mio by Orla Kiely, which features the renowned designer’s signature stem print 2010: Pure Italy opens 2011: Absolute Radio launches new services Absolute Radio 60s and Absolute Radio 70s 2011: Jazz FM, Heart, Kiss and Capital roll out nationally on digital radio 2011: BBC Radio 7 rebrands as BBC Radio 4 Extra and quickly becomes the digital-only station with the most listeners (increase of over 400,000 weekly listeners) 2011: It’s announced that all new cars will come with digital radio fitted as standard by 2013 2011: BBC national digital radio population coverage reaches 93% 2011: BBC confirms it will extend digital radio coverage to 97% of the population including motorways and primary roads

2011: 14.2 million digital radios sold 2011: Pure Nordics opens 2011: Pure launches cloud-based on-demand music service, Pure Music 2011: Pure launches a second Evoke Mio by Orla Kiely with her Abacus Flower print 2011: Pure brings RSPB birdsong to its range of wireless music and radio systems 2011: Pure launches new look Lounge with music store 2011: Pure ships its 4,000,000th radio 2012: BBC to launch BBC Radio 5 Live Olympics Extra in July, a national digital radio station, which will carry coverage for the duration of the games 2012: Pure celebrates its 10th anniversary with a new brand identity 

2012: Pure celebrates ten years of the Evoke with the launch of the commemorative Evoke Mio Union Jack Edition

MAY 2012 GET CONNECTED

9

THE WORD | INDUSTRY NEWS

Sony rationalises European business Sony UK & Ireland Managing Director Gildas Pelliet has been appointed European Marketing Head (Consumer), following an announcement by the Japanese conglomerate’s new President and CEO Kazuo Hirai of plans to revitalise its electronics business after the firm forecast an annual loss of £4 billion for the year to 31 March 2012.

In a statement, the company said that Sony Europe is proposing “significant organisational changes” to simplify its consumer business, increase customer responsiveness and speed up decision making.

The rationalisation will involve 10 Sony sales companies becoming one integrated team covering Sales, Marketing and Business

Support areas such as finance, logistics, HR and communications. The proposed changes are subject to local consultation and, said Sony, “may result in efficiencies and headcount reduction.”

Chris Bowen, Sales Director for the UK, has been appointed Country Head UK & Ireland and will continue to manage the commercial relations at a local level. Shaun Dorrington has been appointed Marketing Head for the UK & Ireland.

Kazuo Hirai announced on 12 April that 10,000 jobs would go at the organisation as it moves to generate future growth, but no detail was given then as to which countries would be affected by the cuts.

Argos & Homebase owner’s annual results show profits 60% down Home Retail Group, the owner of the Argos and Homebase chains, has reported benchmark profits of £102 million for the year to 25 February 2012, a 60% drop compared to the previous year.

Weak demand for electrical goods was cited as a major factor in the sharp decline.

The Group said that, although its Argos stores had had success in tablet and laptop sales, this had been more than offset by weakness in other product categories, most notably in consumer electronics, which had suffered a market decline of some 20% in the year, and, taking out the growth in tablets and laptops, accounted for around 80% of the sales drop for the year.

‘At Home with LG’ Members of the independent retail trade were invited to be ‘at Home with LG’ when it launched its new 2012 range of TVs, Media and Kitchen Appliances in a newly refurbished showroom at its Slough headquarters.

“It was,” said LG Commercial Director (CE) Andy Mackay, “without doubt the strongest new product launch to date for LG Electronics, both in Appliances and Home Entertainment.”

The brand used the event to showcase its new Award-winning Cinema Screen TV design, featuring the latest in Cinema 3D and Smart TV technologies and a stylish range of Home Cinema systems to match, together with the LG 12kg 6 Motion Direct Drive washer range and LG Linear Compressor technology.

Media plans to invest in advertising campaigns across Home Entertainment and Home Appliance ranges were also unveiled, and the brand again gave its commitment to Retail Marketing, which involves Retail Display, Online visibility, POS, Merchandising and Store Staff Training activities to engage consumers and support the independent channel.

Independent retailer Jason Digwa of RGB, who attended the event, said the new ranges – brown and white goods – “are definitely the best products we have seen from them [LG] to date.” Digwa added that the tradeshow was “extremely informative and well presented. It gave a good insight into where LG will be heading this year.”

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GET CONNECTED MAY 2012

Dixons sees strong end to the year Dixons Retail announced that full-year Group underlying profit before tax is predicted to be at the top end of expectations, at between £65 million to £70 million, following a strong 4th quarter.

The retailer said it had an “encouraging” end to the year, with Group like-for-like sales up 5% in the final 3 months and good performances in the UK & Ireland and Northern Europe, which traded ahead of their markets, ending the quarter strongly with like-for-likes up 8% and 10% respectively.

Total Group sales for the 52 weeks to 28 April were flat – like-for-like revenues fell 3%.

Chief Executive Sebastian James said the overall performance across the year was slightly better than anticipated. “We saw a strong end to the year particularly in the UK and Nordics, and it is good to see the work that we have been doing to improve the ranging and service bearing fruit.”

The CE added that Southern European businesses had been impacted by the weaker economic environments and issues in the Eurozone, but the Group had made “significant strides” in the way it operates over the last four years. The KNOWHOW service brand, he said, is performing ahead of expectations and “delivering services that competitors are finding hard to match.”

Despite an “uncertain” consumer environment in many markets, James said the overall business is in a strong position for the year ahead.

Preliminary results for the 52-week period will be announced on 21 June 2012.

De’ Longhi acquires Braun brand licence for small domestic appliances De’ Longhi and The Procter & Gamble Company have reached an agreement for the perpetual licensing of the Braun brand, owned by P&G, for use within the small kitchen appliance, ironing and selected household appliance categories.

The Braun business associated with the transaction has revenues of around €200 million, mainly concentrated in European markets.

TRAINING

LINEAR PROGRESSION A compelling story for retailers LG,

known for its commitment to performance-enhancing innovations that consumers really want and retailers find easy to sell, unveiled its industryleading Linear Compressor in 2011. It’s proven itself as an advance in refrigeration technology that has set new standards of reliability, performance and energy efficiency.

LG’s entire 2012 range of American Style Fridge/Freezers, and many of its CombiBottom Fridge/Freezers, are now powered by the Linear Compressor, giving retailers a compelling sales story based on real benefits that their customers can relate to.

Best in class energy efficiency LG’s technology delivers class-leading energy ratings: up to A++ on Side-by-Side Refrigerators and up to A+++ on Freezer Bottom Fridge/Freezers. Increasingly important with the changes in energy efficiency legislation due this year.

Quietly efficient Cooling appliances operate 24 hours a day, so noise levels are important. The Linear Compressor’s fewer moving parts mean it’s appreciably quieter than conventional compressors.

LG’s Linear Compressor The Compressor is a vital component in any refrigerator.

It is “on duty” 24 hours a day, accounts for around 80% of the appliance’s total energy consumption, and defines the performance of the entire cooling system. It is also a major contributor to the overall noise levels of the appliance.

So LG’s Linear Compressor, designed with fewer moving parts to be quieter and more durable, and engineered to achieve outstanding energy efficiency and high performance, delivers real benefits in all of the areas that consumers care most about.

Reliability backed by guarantee LG’s 10 Year Parts Warranty on its Linear Compressor technology gives retailers – and their customers – confidence that this key component is outstandingly durable.

The full story The LG story is about technology that achieves real consumer benefits, and LG’s cooling ranges give retailers a complete sales story: internal spaces designed to maximize storage capacity; smart technology that senses external temperature and adjusts to achieve optimum internal temperature for minimum energy consumption, keeping food fresher for longer; a range of storage features including “Total No Frost,” “Moist Balance Crisper” and “Vacuum Fresh.” As consumers become more careful about reducing food wastage, and more concerned with fresh, tasty, healthy foods across the full range of meats, fish, salads and vegetables, LG offers practical storage solutions.

And, as the cooling appliance is often an important style statement in the modern kitchen, the design and finish of these appliances ensures they fulfil style as well as performance demands.

Commitment Dawn Stockell, Marketing Communications Manager, Home Appliances, emphasizes LG’s dedication to technology in the service of practical consumer needs: “LG are committed to product innovation to make consumers’ lives easier and deliver tangible consumer benefits. LG’s break-through Linear Compressor technology is as fundamental to LG’s success as our Inverter Direct Drive technology was, and still is, to our Laundry & Dishcare.”  For the full story, visit LG’s website at www.lg.com/uk

MAY 2012 GET CONNECTED

11

THE WORD | INDUSTRY NEWS

LG Display, the second largest producer of LCD screens in the world after Samsung Electronics, posted an operating loss of 178 billion won (£97 million) for the first three months of 2012, as weak demand for TV panels and delays in production of Apple iPad screens – of which LG is a major supplier – continued to depress the global market. The losses in this latest quarter, which were higher than analysts’ forecasts, follow a string of consecutive quarterly losses for the screen maker.

LG Electronics announced that after two consecutive quarters of net losses, it has turned the corner with a net profit of KRW 243 billion (USD 214.9 million).

Unaudited consolidated results for the quarter ended 31 March 2012 showed revenues of KRW 12.2 trillion (USD 10.8 billion) with an operating profit of KRW 448 billion (USD 396.1 million) – a favourable comparison to the consolidated operating profit of KRW 280 billion for the full year 2011.

Electrolux reported record net sales growth for the first quarter of 2012, despite continued weak demand for appliances in mature markets. Net sales rose 10.4% to SEK 25,875m, while income for the period grew 22.3% to SEK 559m.

President and CEO Keith McLoughlin said the company’s European appliance operation is regaining market share.

Whirlpool reported first-quarter earnings down 46% to $92 million.

The manufacturer said the drop was largely due to restructuring costs and a decline in income from Brazilian tax credits, but profit margins widened as it raised prices and cut costs. Net sales dropped 1.2% to $4.35 billion compared to the same quarter last year. On an adjusted basis, first12

GET CONNECTED MAY 2012

quarter operating profit totalled $232 million, up significantly from the $163 million reported in the prior year.

Strong profitability improvement in the North America and Latin America regions was partially offset by weak economic conditions in Europe.

Chinese MDA manufacturer Haier announced a consolidated net turnover of USD $23.3 billion for 2011, a rise of 12% on the previous year. The company attributed the growth to its investment in R&D, industry knowhow and the adaptation of its product offerings for the respective needs of each local market.

Sharp posted a net loss of £2.89 billion for the year to 31 March 2012, on net sales of £188.46 billion, 18.7% down on the previous year. The company is reorganising its business and took a charge of £0.9 billion in relation to associated costs. Sharp is suffering from low demand, falling prices and intense competition in the global flat panel TV market, and the company says it expects TV sales to fall by another 20% in 2012. Sales of AV and communication equipment were down 25.6% compared to the previous year and sales of LCDs fell 31.6% in the same comparative period.

BSkyB recorded 5% growth in revenues for the 9-month period ended 31 March and a record 9-month operating profit of £908 million – up 15% on the same period last year. Net product additions of 904,000 in the three months to 31 March were higher than both the prior year and the second quarter, and took the total base to 27.7 million, up 13% year-on-year.

78,000 net new customer households were added.

Indesit Company posted 2012 firstquarter revenues down 3.6% to €621m on the same period last year

and predicted the first half of the year to be slow. The company said the fall was mainly due to lower volumes of finished product sales and the negative impact of price/mix.

Revenues from services rose 5.1% due to increases in extended warranty sales and home deliveries, “above all in the UK.” EBIT in the quarter declined 50.3%, from €40.5m to €20.1m, while the net result for the Group fell 45.6% to €10.9m, against €20m in the same period in 2011. Indesit Company CEO Marco Milani said: “We expect 2012 to proceed at two speeds, with difficult 1st and 2nd quarters and recovery in the second half.

Toshiba announced a 37% drop in net profit for the fourth quarter ended March 2012, to ¥61.63 billion ($770 million). The company said the decline was due to an overall weakness in its digital products business and revenue erosion due to the strength of the Yen. Net profit in the 12-month period to the end of March fell 46.5% to ¥73.71 billion. The company also recorded a fall in operating profit, to ¥206.65 billion from ¥240.27 billion, on revenue of ¥6.1 trillion, down 4.7% on last year. For the full year ending March 2013, Toshiba said it expects to post a net profit of ¥135 billion, operating profit of ¥300 billion and sales of ¥6.4 trillion.

Nintendo, whose Wii games system revolutionised the games market and was for a while the fastest-selling consumer electronics device of all time, has suffered its first annual net loss, $532 million (£328 million), as sales of software and hardware slowed, net sales revenue dropped by 36.2% and the decision to sell the handheld 3DS games console at lower than cost price took its toll. Nintendo says plans are in place to recover profitability.

FOCUS ON

SAMSUNG Samsung Electronics, the world’s biggest TV and flat screen manufacturer, and now, according to market research company Strategy Analytics, taking no.1 spot from Nokia as the world’s biggest mobile telephone maker, has had an encouraging first quarter of 2012.

As well as its record net profits for the quarter, and its toppling of Nokia from the global mobile phone sales top spot, Samsung’s multi-model smartphone strategy has also won the no.1 position in smartphone sales for the quarter, ahead of Apple with its one-model iPhone offering.

Samsung stopped publishing figures on mobile telephone sales last year, but the London-based research company Strategy Analytics has estimated that Samsung shipped 93.5 million mobile telephones in the first quarter of 2012, compared to Nokia’s 82.7 million. During the same period, Samsung shipped 44.5 million smartphones, well above Apple’s official figure of 35 million units.

Clearly, the greater revenue and margins on smartphones gave a massive boost to Samsung’s first quarter figures. The telecoms unit has doubled its revenue and near-tripled its operating profits compared to the same period last year, and contributed half of Samsung’s total sales and nearly three quarters of its profits in the first three months of 2012. The latest Android-based Samsung smartphone, widely expected to be called the Galaxy S III, is due for release. “We expect it to be our most successful smartphone ever,” said Kim Hyun-joon, a vice president in Samsung’s mobile communications arm.

Progress, though more modest, is also being made in the company’s consumer electronics division, which is the world’s largest producer of TVs, and, in common with all its global competitors, is operating in an extremely difficult world market. The CE division reported an operating profit margin of 4.9%, a substantial advance on the 1% reported last year, and still growing from the 3.4% posted in the fourth quarter of 2011.

Samsung said the unusual seasonal boost in margins was, in part, due to the timing of its new TV models release programme. Samsung has its new ranges out early in the year, but warned that, as competitors’ new ranges come into the market, margins will come under increased pressure.

The chip business, still suffering from market volatility and falling prices, suffered a 13% drop in sales; and operating profit margin, at 9.5%, was at its lowest for nearly three years. But the display division, which makes LCD screens for TVs, monitors and telephones, is back in profit for the first time in 2 years, achieving an operating profit margin of 3.3%.

Robert Yi, Samsung’s head of investor relations, said: “We cautiously expect our earnings momentum to continue going forward, as competitiveness in our major businesses is enhanced.”

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THE WORD | INDUSTRY NEWS

GDHA wins The Queen’s Award for Enterprise in International Trade Glen Dimplex Home Appliances (GDHA) has won The Queen’s Award for Enterprise 2012 in the International Trade category after overseas sales of its British-made products increased by 880%.

GDHA announced its intention to export its UK-manufactured Stoves, Belling and New World cooking appliances in 2009 and over

the last three years has delivered a record financial performance. During that time it has expanded rapidly in overseas markets, exporting successfully to Australia, France, Spain, Belgium, Cyprus and Holland and, more recently, building relationships with Poland, Germany and Israel.

Linn receives The Queen’s Award for Enterprise in Innovation Scotland-based audio brand Linn has won The Queen’s Award for Enterprise in Innovation, which the company said is a celebration of the success of its new generation of digital streaming music systems and recognition of the engineering prowess and passion for music embodied within its industry-leading range of DS systems.

Digital streaming accounts for over 40% of Linn’s business, with success worldwide helped by the recent launch of new technology that greatly improves the audio quality of movies, games and online services such as Spotify and Netflix.

LG Electronics has invested £4 million in an integrated marketing campaign to showcase its new L-Series smartphones in the UK. The initiative targets styleconscious consumers looking to migrate from ‘feature’ to smartphones or upgrade existing smartphones.

Smeg, Finish and premium tableware brand Villeroy & Boch have partnered in a promotion to offer consumers the chance to win a premium dishwashing package via a competition at www.finish.co.uk/villeroy.

Beko has teamed up with Reckitt Benckiser to deliver a series of promotional activities, as part of Beko’s ongoing strategy to target mums and families. The initiative commences with joint advertorials running in a range of popular parenting titles, with a complimentary competition on the Beko website.

Smeg is running a window display competition for FAB Centres in the run up to the Royal Jubilee and the Olympics. The prize offers a trip to London for two including a stay in a “very British” hotel followed

by Tea at the Ritz, a trip to Harrods and a “skip the queue” entry ticket to the Tower of London.

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GET CONNECTED MAY 2012

LG Electronics has launched a £10m integrated campaign to showcase its new premium 2012 HE range through the activation of the brand’s Global Partnership with Formula 1TM. The multi-channel initiative comprises cinema, print, online advertising and PR, with additional elements including an influencer engagement programme targeting online technology and design opinion leaders.

Baumatic is running a ‘Snap it Up’ promotion which offers a Baumatic BT2GRID Cast Iron Griddle Plate to consumers purchasing a 70cm or 90cm gas hob and a set of Meyer induction pots and pans to those buying a range cooker.

Electrolux has announced its sponsorship of this year’s ‘Taste of Dublin’. Celebrity chef Jamie Oliver will open the event with a live cooking demonstration on the new Electrolux Inspiration range of appliances, which will launch this summer to the Irish market.

Cooking appliance brand Belling has confirmed it will be the exclusive Kitchen Appliance Supplier to the BBC Good Food Shows for the second consecutive year.

Samsung founder Byung-Chull Lee and LG founder In Hwoi Koo have been appointed to the 2012 class of inductees into the Consumer Electronics (CE) Hall of Fame.

OEM manufacturer makes move towards UK expansion Arda, a leading Chinese manufacturer of built-in cooking appliances specialising in OEM, is looking to expand its business in the UK market. The company’s presence in China dates back to 1982, when it commenced the manufacture of components used in cooking products, before moving into the production of European-styled appliances in 2002.

Julia Phillips, Sales & Marketing Director of the UK operation, which currently has a branch office and showroom in Stokeon-Trent, tells GC that the company’s products are of mid-premium positioning “and we certainly lead the way in Chinese manufacturing in terms of design.

“Our products are of high quality and European design – we have a design centre in Switzerland – and we are looking to grow our business here in the UK.” Providing an example of the company’s flair for design, she highlights a new addition to the Arda collection: the “nature inspired” Butterfly cooker hood, which is part of a range that balances “high performance with aesthetic excellence, practicality and technological precision,” she says. The unit has a stainless steel body, curved glass “wings” and motional LED lighting which operates in sequence to produce a butterfly look.

“Our strategy for the UK market is OEM supply,” explains Philips. “There are no plans currently to launch the Arda brand here, but this could change in the future.” 90% of Arda’s worldwide sales are OEM. The Butterfly hood will be available to OEM customers from July 2012, styled black or white finishes in a choice of 600m, 760mm or 900m widths.

THE WORD | INDUSTRY NEWS

Big Red bucking the trend Big Red Sales, the company whose national sales team is currently working with a number of leading consumer electronics, hi-fi and home electricals brands to provide representation across independent retailers and national multiples throughout the UK, is reportedly creating its own upward trend in the generally difficult environment.

We understand that Big Red’s turnover is still showing substantial year-onyear increases, and is looking to increase its sales force in response to growing demand. More information can be found at: www.bigredsales.co.uk.

Nurturing UK-Turkish trade relations Lord Stephen Green, UK Minister of State for Trade and Investment, visited Beko’s washing machine plant in Çayırova near Istanbul as part of the UK Trade and Investment (UKTI) and Confederation of British Industry’s (CBI) first joint trade mission to Turkey.

The trade delegation of 50 British LORD GREEN AND HIS ENTOURAGE TOUR business leaders toured the Çayırova THE ÇAYIROVA FACTORY facility, Europe’s highest capacity washing machine plant, which produces appliances sold in the UK under the Beko brand.

Lord Green commented: “There is great potential for knowledge-sharing between our countries so that UK and Turkish firms can combine their expertise and work in partnership to win contracts elsewhere in the world.”

Ragip Balcioglu, Managing Director of Beko Plc in the UK, added: “Arçelik has been trading in this country for over 21 years and is now Turkey’s largest single investor in the UK.”

LG spoils the Ambassador…

LG Electronics recently welcomed the presence of Her Majesty’s Ambassador to the Republic of Korea, Mr. Scott Wightman, and his team, who took time out of their busy schedule on a visit to the UK to spend an afternoon at the company’s headquarters in Slough.

LG took to opportunity to show its important guests the new award-winning Cinema Screen TV Design, the LG 6 Motion Direct Drive washer range and the brand’s Linear Compressor technology.

Ambassador Wightman commented: “LG has invested heavily in new product development and it is clear to see that its technologies including 3D TV and Inverter Direct Drive washing machines enable its products to hold leading positions in the market.”

Electrolux Cube comes to London The Cube by Electrolux will open at Southbank Centre in London from 1st June until 30th September this year to coincide with the launch of the brand’s new Inspiration range of domestic appliances. The unique dining concept will be sited on top of the Royal Festival Hall, offering spectacular views of the capital and “unforgettable” food cooked by Michelin Star chefs.

Gorenje in BTCC sponsorship deal

JR Ad GC 102x145mm:Layout 1

Slovenian manufacturer Gorenje has announced its sponsorship of the 2012 British Touring Car Championship (BTCC) with driver Andrew Jordan, who races with the Pirtek team. Andrew (left) is pictured here with Gorenje Sales and Marketing Director 23/8/11 Bill Miller.15:18 Page 1

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CI(H) SHOW

…a “benchmark” for the future A breezy Monday morning at Birmingham’s NEC, but the trek from the car park, braced against the chill wind that large, open spaces invite, to the extremities of hall 8 in the exhibition centre, certainly didn’t curb the enthusiasm of visitors and exhibitors at this year’s CI(H) show, even those who admitted to overindulging a little the evening before, purely in the spirit of the occasion, of course, following a successful first day at the 2012 Showcase.

T

his was the first time that the annual event has been held in the Spring, and it was, by all accounts, a good decision

by CI(H) to move it from the Autumn to a point closer to major manufacturers’ product launches. Around 50 suppliers exhibited at the 2-day exhibition and were rewarded with a 94% turnout from Euronics members. Stuart Cook, chief executive of the buying group, said he was “absolutely delighted” with the attendance: “This is an incredible result,” he commented. “The new Euronics Showcase format has emphatically worked.”

Suppliers, having been challenged by CI(H) to “create theatre” on their stands, rose to the occasion, providing an air of excitement and, as Cook pointed out, “surpassing themselves again.” He congratulated them on their “huge investments” and said: “We have raised the bar again, and this year’s show is now the benchmark for the Euronics Showcase in the future.”

Highlights of the event – although too many to mention in this article – included a show of strength from Beko, with stands for all three of its brands: Beko, Leisure and Blomberg. On the Beko stand, the company chose a football theme to bring the features and benefits of its freestanding and built-in ranges to life and to highlight two of the brand’s biggest current marketing campaigns: the Mums United Visitors to the Miele stand had the opportunity to see the new S8 vacuum cleaner for the first time, and to witness Miele’s team of home economists delivering interactive cooking sessions and demonstrations.

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GET CONNECTED MAY 2012

community facebook page and the perimeter board advertising at Barclay’s Premier League grounds such as White Hart Lane.

Leisure focused on the unveiling of the new Colours collection of appliances, available in Nutmeg Brown, Snow White and Regency Red and an extension of the existing range of black, cream, silver and stainless steel finishes. Beko Marketing Manager Amanda Castle said the rising trend for colourful kitchen appliances that make a style statement represents a “huge opportunity” to grow incremental sales. The launch is being supported by a multimedia campaign and Beko

LG Electronics showcased, amongst other innovations, its new Cinema 3D and Smart TV designs and growing steam appliance ranges, including the 12kg steam washing machine and award-winning TrueSteam dishwashers.

is “confident” that it will deliver further growth for the category and the brand.

On the Blomberg stand, there was the chance for a CI(H) member to win a new Ford Transit T260 van, complete with the member’s own store details. Blomberg, which is exclusive to Euronics agents, presented its “strongest proposition yet” at this year’s show, and for the first time, new members were able to sign up for the brand’s ‘Jumpstart’ package, which provides the opportunity to drive business through dedicated local advertising and encourages customers to visit their nearest Blomberg store.

CI(H) CHIEF EXECUTIVE STUART COOK HITS THE ROAD WITH BRUCE PRITCHARD OF PRITCHARDS ELECTRICAL IN KINGSBRIDGE, DEVON, WINNER OF BAUMATIC’S WEEKEND IN ROME COMPETITION

CI(H) SHOW

Two smart guys: CI(H )’s Stuart Cook (lef t) presents Colin Rod gers, Samsung gen eral manager for the independe nt sector, with an Award for “driving techno logy”

EXCLUSIVE TO CI(H) MEMBERS: THE BLOMBERG BRAND

“This has been the best CI(H) show that Samsung has attended. We’ve had the most positive response to our new technologies.”

Colin Rodgers, Samsung general manager for the independent sector Behind the Beko stands, the Electrolux Group was pleasing the crowd with the presence of Italian chef Gino D’Acampo, who drew attention to the Zanussi brand as he demonstrated how to make ‘Gino’s homemade pizza’ using the new Zanussi Quadro ovens. The handsome chef and his display of ‘theatre’ no doubt played a part in Electrolux winning ‘Best in Show’. Tracey Harris from CI(H) said the manufacturer received the Award “because it has the best stand, great product offerings, and some of the best promotional offers. But most of all because of the enthusiasm and energy our retailers felt when they visited the stand.”

Samsung Electronics also received special recognition at this year’s show, with an Award for “driving technology”. Colin Rodgers, Samsung general manager for the independent sector, said: “This has been the best CI(H) show that Samsung has attended. We’ve had the most positive response to our new technologies.”

The brand had a strong presence at the event, with separate stands for white goods and consumer electronics, the latter showcasing and demonstrating the “world’s first” voice, motion and face recognition control TV ranges. Rodgers commented: “We are delighted to have given Smart interaction and demonstrations to so

The UK’s no.1 built-in appliance brand Neff brought a range of “perfectly coordinated” products to this year’s show, demonstrating the innovative SlideAway door and CircoTherm technology in cooking, and revealing that 2012 will be the year of a through-the-line campaign that speaks directly to the customer about Neff features, technology and “why people who use Neff, love Neff.”

many retailers who we know will go out and promote the technology to consumers in the right way.”

Smeg returned to exhibit at the CI(H) show in style, with a stand located close to the entrance and displaying a wide selection of built-in and freestanding cooking appliances and a number of “highlights”, one of which, a prototype 110cm retro-style range cooker, due for launch this summer, attracted plenty of attention. For the Italian brand, however, the “star” of the event was undoubtedly the “world’s first” denim covered 50s-style fridge, first launched at Eurocucina in Milan the week prior.

Accompanying the display offers, Smeg also ran a prize draw: the first prize, a special edition FAB28 Union Jack fridge, went to Trevor Dalzell of Dalzells in Co. Armagh; the second prize, a London weekend break for two was won by Roy Tooth of Hylands Ltd in Stoke-on-Trent.

Indesit revealed that it is coming to market with a streamlined range tailored to the needs of independents.

The collection focuses on fewer products “but still delivers the competitiveness retailers favour in terms of both product specification and price.”

THE ELECTROLUX TEAM RECEIVES THE “BEST IN SHOW” AWARD FROM CI(H)’S STUART COOK

MAY 2012 GET CONNECTED

17

CI(H) SHOW

r Steve rketing Directo re keen to Hoover Candy Ma of members we ds re nd “Hu : ald tive…” en Macdon inc t ra oc Hoover Arist sign up for the

There was an abundance of offers and prizes to entice visitors onto the stands. Hoover Candy reported that “hundreds of members” were keen to sign up for the Hoover Aristocrat incentive to win a van that was on display – this accompanied by runner-up prizes including £2,000 worth of travel vouchers.

Steve Macdonald, Hoover Candy Marketing Director, said: “We were delighted with the very positive response that we had to the product The Rangemaster stand featured a number of new products launched in March, ahead of the CI(H) show, including 100cm variants in the popular Professional range, the new Excel induction and a selection of new colours that will be filtering into the brand’s cooking portfolio over the coming months.

PRIZES GALORE: THE BLOMBERG-BRANDED VAN

18

GET CONNECTED MAY 2012

on our stand, and the high number of visitors who were able to see some of the exciting new additions to the Hoover Aristocrat range.” A real talking point, according to Macdonald, was another “world first” for the industry – a washing machine that accommodates the washing of whites, coloureds and different fabrics at the same time, without the risk of colours running.

Moving across to the Belling stand, where retailers had the opportunity to enter the brand’s “Dream Wheels” competition, a new ordering and home delivery package, Tradeplace, was being launched for CI(H) members. The web-based ordering system allows customers to view availability, up-to-date pricing and to place an order with the added convenience of new home-delivery options, including a 48-hour delivery and installation service. “This year’s show was an important occasion for us as we are celebrating Belling’s 100th birthday,” said Jonathan Casley, Sales and Marketing Director at parent company GDHA. In keeping with the celebration, the brand had a party-themed stand where visitors were invited to partake of ice cream and cake delicacies.

It was a memorable show for TV company Linsar, too, which presented its 2012 range and stocking plans for the summer season of celebrations, which retailers are hoping will provide a boost in sales. Members packed onto the new, impressive 40 sq/m stand to view the products on display. “This year’s stand was a far cry from when we first exhibited at the show five years ago and demonstrates our current market position and support to this important channel,” said Linsar Director Terry Reed. “We’d

LINSAR PRESENTED ITS 2012 RANGE ON THIS SMART, 40 SQ M STAND

like to thank every CI(H) member who visited our stand, and we hope they will benefit from the range stocking plans we’ve offered.”

It was an encouraging response all round from exhibitors that GC spoke to. Leonie Hughes, Marketing Manager for Polti, which launched new products from its steam generator and steam cleaning ranges, along with a new range of coffee machines, said she was “really impressed” with the quality of visitors and her Sharp Electronics displayed a range of LCD TVs, ultra-slim soundbars and the latest iPod docking stations with Airplay DLNA and iPad/iPad2 compatibility. In white goods, the manufacturer’s design-led fridge freezers were accompanied by a collection of entry-level and combination microwaves and the award-winning Sharp Steamwave – a standalone steam oven/ microwave/grill.

CI(H) SHOW

Visitors to the Toshiba stand witnessed the unveiling of a brand new range of laptops featuring “stunning design and premier sound.” The company also showed its latest ranges of PC and LED TV products and the ZL2 super HD, glasses-free 3D TV.

LEISURE INTRODUCES THE NEW COLOURS RANGE

brand certainly had a good show. Likewise, Gorenje Sales and Marketing Director Bill Miller had high praise for the level of turnout. “There was a great atmosphere at the exhibition and the Gorenje stand was very well attended,” he said. “We had an exciting selection of interesting products on display, alongside a fun competition for everyone to take part in, and we’ve had good feedback from those who visited the stand.” Gorenje’s “fun” competition winners were John Harris from Harris Electrical in Hackney, London, who received a RB60299 Retro cooling appliance in the colour of his choice, and Adrian Roberts of MAP Electrical in Leicester, who won a marketing support package worth £1,000.

For Baumatic, the 2012 Showcase was “an all-round success.” Marketing Manager Rita Balestrazzi said: “It enabled us to meet an unprecedented number of customers, old and new. It was the perfect opportunity for us to showcase our newly developed freestanding ranges, such as the contemporary Sins Collection of coloured fridge freezers.

Award-winning set-top boxes, digital TV recorders and live demonstrations of advanced recording features, multimedia services and streaming encouraged show-goers onto the Humax stand, where the full range of products for the UK market was on display.

Baumatic’s eye-catching Italian-themed stand created the perfect backdrop for the brand’s two popular CI(H) promotions. Members were given the chance to win a weekend in Rome and invited to enter the Baumatic Vespa competition, in which the condition of entry was having a photo taken on one of the scooters on offer. Almost 400 members participated and posed for the camera.

The event was an important one for Baumatic, with Group President Enzo Balestrazzi, Managing Director Andrew Lawson and Marketing Director Owain Harrison in attendance to lend their support and interact with customers. Enzo Balestrazzi commented: “This is a show that we simply could not afford to miss. It is one of the rare chances that we, as manufacturers, have to show independent retailers that they remain at the forefront of our minds.”

Amica celebrated its launch to CI(H) members with a comprehensive line-up of products which are available via distributor Portway. Highlights on the Portway/Amica stand included new 7kg and 8kg washing machines, a bank of 10 built-in ovens incorporating the Combi-steam and AquaClean models, the Inari induction hob, which provides the latest touch-slider control, built-in and freestanding cooling, dishwashing, designer chimney hoods and built-in microwaves. More than 50 products were on display.

BEKO’S FOOTBALL-THEMED STAND

While exhibitors and members were getting down to the business of deals and networking, behind the scenes, the CI(H) recruitment drive was underway. Stuart Cook reported that around 50 prospective new members attended the event. He commented: “We’ve had some really positive meetings with these guys, who have now seen what we are all about. They can see the benefits, and I’d be very surprised if we didn’t sign up the majority of them.” Cook also revealed that a number of prospective suppliers to the group had attended the Showcase too.

“Euronics welcomes approaches from brands wanting to deal with independent electrical specialists,” he said. “The door is wide open to those that have a clear channel strategy.”

Committed to helping CI(H) members maximize warranty sales, the UK’s oldest and most respected warranty provider Domestic & General revealed that it is planning a number of “exciting” initiatives throughout 2012, including revised sales training, new staff-incentive schemes, regional competitions and improved channels of communication.

ITALIAN CHEF GINO D’ACAMPO DRAWS THE CROWDS TO THE ZANUSSI STAND

MAY 2012 GET CONNECTED

19

Monster ‘Diamond Tears – Edge’ headphones Monster Products’ Diamond Tears - Edge headphones, the first in a planned family of product to be created in alliance with J.Y. Park, founder of JYP Entertainment, will be available throughout the UK within the next few months. The product features Monster’s renowned audio engineering which was instrumental in the creation of the Beats by Dr. Dre headphone line. ¿¿

Control Talk Universal for hands-free phone and music control

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Low profile, right-angle connector for a snag-free, secure fit

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Tangle-free cable

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Monster Cleaning Cloth with advanced Aegis Microbe Shield

www.monsterproducts.com

Onkyo TX-NR717 / TX-NR818 7.2-channel network receivers Onkyo is to release two new receivers which are said to provide “premium technologies at ever more affordable price points.” The TX-NR717 7.2-channel network receiver and the more powerful TX-NR818 7.2 both boast eight HDMI inputs (one front and seven rear) and two outputs, three-stage inverted Darlington circuitry and Burr-Brown 192 kHz/24-bit DACs on all seven channels. TX-NR818 features: ¿¿

Dual Core Video Processing via HQV Vida and Marvell Qdeo

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THX Select2 Plus Certified

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Internet radio and Cloud music streaming service connectivity with control via Onkyo remote apps

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MHL (Mobile High-Definition Link) and InstaPrevue technologies

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iPod/iPhone direct digital connection through USB and firmware updates via Ethernet and USB

01628 473350 www.onkyo.co.uk

Bayan 3 Speaker Dock for iPod/iPhone Bayan Audio has produced a ‘little brother’ to its flagship designer dock the Bayan 7. The compact Bayan 3 uses the same sound platform as the Bayan 7 and incorporates the same quality of components and organic materials. The 9mm solid wood casing and front panel reduce energy dissipation and reflections to channel maximum sound energy towards the front of the speaker, delivering a proportionately powerful, clean and natural distortion-free sound. ¿¿

Pseudo-stereo technology

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45W RMS / 5.25” bass with tuned bass reflex port / 2” mid/high frequency speaker

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Charge & Play dock at front for iPod/ iPhone

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3.5mm and AUX ports at rear

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1m cable bundled for easy connection of iPad or non-Apple devices

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IR remote

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Montiss KGR5770M multi-plate grill Home-tek Europe has added the Montiss multi-plate grill (KGR5770M) to its portfolio of products. The product features a stone grill, grill plate, pancake plate, gourmet and raclette and comes with 8 non-stick pans. SRP: £59.99. ¿¿

1,200W multi-plate grill

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Adjustable thermostat control / Cool-touch handles

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High quality non-stick coating

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2-year guarantee

08452 100888 www.hometek.co.uk 20

get Connected MAY 2012

Smeg SFP378X 60cm ‘Classic’ pyrolitic oven Joining the Smeg range of ‘Classic’ built-in ovens this spring is the new SFP378X pyrolitic model in fingerproof stainless steel. This A-rated multifunction appliance has a generous net capacity of 68 litres and provides cooking on five levels without the transference of taste between foodstuffs. It is said to offer consumers the opportunity to purchase pyrolitic technology “at a very attractive price.” ¿¿

8 functions

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Closed door grilling

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Ecologic energy-saving option

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Quadruple glazing / Removable inner door glass

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Air cooling system

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Operation via 3-pin plug, 13 Amp power supply

0844 557 0070 www.smeguk.com

Pure Evoke Mio Union Jack digital radio

KitchenAid 6.9L Artisan® Stand Mixer KitchenAid’s new 6.9L Artisan® Stand Mixer is said to be the most powerful in its category, efficiently mixing extra-large quantities – up to 3.8kg of bread dough, 3.6kg of mashed potatoes, and enough dough for 168 cookies – in its capacious 6.9-litre bowl. KitchenAid is keen to point out that this new product features the same simplicity and function as the original Artisan® mixer and the unique planetary mixing action, which beats asymmetrically across the bowl to give a faster and more thorough mix, also remains the same. ¿¿

Robust, cast metal design with high precision metal gears and controls

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Standard accessories include dishwasher-safe flat beater, dough hook, whisk, stainless steel bowl and pouring shield

¿¿

Optional accessories: flat beater flexible board, meat grinder, sausage stuffer, food grinder, strainer, juicer, grain mill, ice cream maker, deluxe pasta maker and kit cutters for fresh pasta

¿¿

Cookbook containing recipes by Michelin Star chef Sergio Herman / ‘MIX WITH THE BEST’ music CD

¿¿

Available in Onyx Black, Frosted Pearl, Candy Apple, Medallion Silver and Empire Red

¿¿

RRP £789 / 5-year guarantee

01954 231 616 www.kitchenaid.co.uk

The ‘Pure Evoke Mio Union Jack’ is a special edition digital radio created to celebrate Pure’s 10th anniversary and the Queen’s Diamond Jubilee.

The unit is EST recommended and available through John Lewis and independent retailers from May 2012 at an SRP of £149.99. A limited quantity will feature a numbered commemorative plaque. ¿¿

FM with RDS

¿¿

30 presets

¿¿

Aux in for iPod/MP3/other

¿¿

Kitchen timer / Sleep timer / Alarm

¿¿

¿¿

Auto dimming OLED display

Stereo headphone socket / Stereo line output

0845 1489001 www.pure.com

ATAG recessed ceiling hoods ATAG has added two new recessed ceiling hoods to its collection, both presented in a white finish and designed to offer a high level of extraction without disrupting sight lines or intruding on kitchen space. The 1100mm wide WU1150PM and 1500mm wide WU1550PX offer four power levels, perimeter extraction and an automatic 20-minute overrun. WU1550PX can be connected to an external motor to provide ‘super quiet’ operation with a maximum extraction capacity of 1060 m3/hr. ¿¿ Remote control ¿¿ Direct ducting (180mm top) ¿¿ 4 x washable metal filter

cassettes ¿¿ Energy-efficient halogen

lighting (4 x 20W)

0208 247 3993 www.atag.co.uk MAY 2012 GET CONNECTED

21

HOME LAUNDRY & GARMENT CARE

WASH AND GO,

QUICKLY AND WITH CARE… There is more to a big appliance than meets the eye. GC reports on current trends in home laundry and garment care

T

he ‘big story’ in the home laundry market undoubtedly revolves around large capacity machines, despite the fact that the majority of consumers are reported to mostly wash loads of around 3.5kg to 4.5kg at a time. But it’s understandable that the big drum and accompanying wide porthole should have broad appeal – no more pushing and shoving armfuls of bulky items such as towels into a conservatively-sized drum and straining against a modestly-sized aperture while, in the process, jeopardising the health and longevity of the seal. And what a bonus it is to be able to wash items such as duvets and curtains, which previously would have commanded a trip to the dry cleaners.

Furthermore, a large capacity drum (assuming that it’s not bunged up to the hilt) allows clothes to move more freely, alleviating a degree of creasing, detergents are better distributed and rinsing more thorough, so it could be said that greater capacity offers a heightened measure of care – and garment care is of the utmost importance to a fashionconscious, cash-strapped society. Clothes must look good – devoid of bobbles or signs of fading or shrinkage – feel and smell fresh, free from spots and stains, and attended to both with speed and convenience from the start to the finish of the laundry process.

Capacity without care is a no-no in an era where ‘wash and go’ has, for many, replaced the tradition of laundry day. This is not to say that households do not perform big, full-capacity washes; indeed, plenty do, and are able to benefit from the time and resource savings that large-drum appliances provide, but it is generally the sorting of fabric types, coloureds and whites that dictates the size of the load(s), and it is capacity “with care” that offers the most enticing proposition and the most persuasive of sales stories.

Sales holding up MIELE’S SUPERTRONIC WASHING MACHINE AND TUMBLE DRYER COME WITH A 10YEAR GUARANTEE

22

GET CONNECTED MAY 2012

The washing machine is acknowledged on the whole as a replacement purchase, yet in spite of the current economic climate the sector is faring well. Dean McKelvie, Product Marketing Manager

HOME LAUNDRY & GARMENT CARE

“Larger capacity machines are only economical if they are used to the maximum.

Washing a small number of items in a larger drum is not cost-effective and if the purchaser is a single householder, a smaller capacity appliance should be suggested” Richard Walker, sales and marketing director, De Dietrich Kitchen Appliances (De Dietrich and Fagor) BEKO’S ‘DRY AND SAVE’ CONDENSER DRYER WITH HEATPUMP TECHNOLOGY

for Freestanding appliances at Whirlpool, quotes Gfk data that reveals the fully automatic product market has not only shown growth in volume, but has also displayed a +2.4% upturn in value, to £889,293,000 (March 2010 to February 2011 vs March 2011 to February 2012).

The dominant market volume by capacity is still retained by the 6kg drum, with a 35.2% share; however, this sector is experiencing an accelerating decline (now -10%) as the popularity of even bigger capacities continues to grow. The 7kg segment has shown “fantastic development” through this period, says McKelvie, noting a lift of +22.8% in volume growth, resulting in a +5.4% increase in market share to 30.7%, and the 8kg and 9kg markets have also steadily progressed, at +4.2% and +64.2% volume growth respectively.

“Consumers are embracing larger capacity machines with great enthusiasm,” says Maytag Brand Marketing Manager Juliana Sado. “At the premium end here at Maytag we believe that bigger capacity is certainly ‘king’ and we expect to see sales of 9kg machines continue to increase tremendously over the next few years as consumers realise that they can spend less time doing the household chores.”

But capacity alone is not enough, argues Whirlpool’s McKelvie. “The appliance has to benefit from technology that ensures excellent performance, including results and resource savings. Intelligent, intuitive controls which are easy to use and easy to manage are a must for consumers buying a new laundry product. People don’t want to understand their appliances in any detail and want simple controls to save time and hassle – one button, one touch and automatic programming are all helpful.”

Energy efficiency receives good consumer ratings So ‘big’ is the flavour of the day, albeit with intelligence, convenience, care and resource efficiencies incorporated. And it is Whirlpool’s McKelvie who provides figures that show the growing importance of the latter. “GfK reports greater interest in trading up to improved energy ratings, highlighting some notable shifts in consumer buying patterns,” he says. “A++ rated washing machines have seen a surge in popularity, resulting in impressive growth of +788% and a market share increase of +6.2%

(volume). Similarly, the top energy-rated washing machines A+++ have also performed fantastically well, with +621% growth. The result is that products of A++ and above now occupy over 11% of the market.”

Combining garment care with resource efficiencies is a major focus for manufacturers, as Joe Oram, Product Manager for Laundry at Samsung UK & Ireland, points out. His view is that the brand’s ecobubble™ range is ideal for those looking for ways to reduce their energy consumption and household bills, as products use up to 70% less energy washing at 15°C than

THE BUILTIN BWMI1407.1 WASHING MACHINE FROM THE BAUMATIC RANGE

MAY 2012 GET CONNECTED

23

HOME LAUNDRY & GARMENT CARE AEG’S SPECIALLY PATTERNED PROTEX DRUM DELIVERS THE “GENTLEST” WASH POSSIBLE

Laundry products of the future: “More intelligent programmes will be developed to crank up appliances’ speed, efficiency and time-saving appeal” Rita Balestrazzi, Marketing Manager, Baumatic

a standard machine washing at 40°C “with no loss in cleaning performance.” Oram explains that the ecobubble™ is unique, in that it is the world’s first to generate special bubbles which provide the same wash performance using cool water as standard machines offer with hot water.

“This is because the soap-rich bubbles penetrate deeper and dissolve up to 40 times faster into fabrics so much less heat and movement is required to dissolve the detergent,” he says.

“These bubbles are also much gentler on clothes and delicate fabrics.”

Bill Miller, Sales and Marketing Director at Gorenje, believes that consumers are now taking a more serious look at the eco-credentials of home laundry products as efficiencies have developed and household energy bills increased.

“It’s a factor that is high on their list of things to look for in a new machine,” he remarks. His view is shared by Sian Rees, laundry category manager at Miele, who considers consumers to be keen to take steps to reduce the use of energy and water where they can. “With more people in the UK

having a water meter at home, upgrading to a laundry product which uses efficient levels of water is one of the quickest ways to control household bills,” she says, adding that consumers are now more aware of the effect their lifestyles have on the environment and highlighting a function of the Miele Homecare XL washing machine, which allows users to view the exact amount of time, energy and water consumed by every programme.

Clearly, recommending machines with sensor control that determines the weight of the load prior to automatically adjusting resources and monitoring the programme to achieve the perfect wash performance will bring consumers the best of all worlds and the greatest savings in energy, water and time. And appliances with either dosage recommendation systems or automatic dosing will add yet another dimension both to cost savings and environment protection. Joan Fraser, Product Development and Training Manager at Smeg UK sees “intelligence” in laundry as a huge benefit to

AMICA’S 2012 WASHING MACHINE LINEUP COMPRISES 8 MODELS RANGING FROM 5KG TO 8KG

consumers, as it reduces the margin for programming errors, and for retailers she says it helps the value of upgrading in situations of distress purchase: “Distress purchases are a good opportunity for retailers to offer higher-end machines. The machine may have a bigger price, but the advancement in technology and functions will mean that it will have longevity, be more economical, more environmentally friendly and, ultimately, offer peace of mind to buyers.” But she warns retailers not to over-complicate the technology when selling it: “Often,” she says, “bad descriptions will lead to the consumer wanting to avoid new technology rather than embrace it. Training in the various intelligent appliance technologies is absolutely key in order to convey the features and benefits effectively.”

However, in spite of what may appear to be the existence of the ideal laundry solution, this is not a perfect world in which consumers slot

Laundry products of the future: “Electronics will get even more sophisticated, especially in washing machines where there will be more digital control over motors so we can develop very tailored wash cycles” Darren Peake, Senior Category Manager, Hotpoint Laundry and Dishwashers

24

GET CONNECTED MAY 2012

The UK’s most popular washing machine brand.* And with our full range of large capacity machines, you’ll sell loads.

Beko Excellence Range Daily Quick Wash 39 minute cycle on all large capacity models Energy efficient and stylish Large porthole door for easy loading Available in white, silver and black

1 in 5 washing machines sold in the UK is a Beko See our TV ad at www.beko.co.uk *GfK PANELMARKET GREAT BRITAIN Jan-Dec 2011, no.1 in vol, 19.6% share

HOME LAUNDRY & GARMENT CARE

Laundry products of the future: “We expect to see greater integration of touch-screen controls alongside better, more efficient programmes specifically tailored for particular clothing types” Bill Miller, Sales and Marketing Director, Gorenje

THIS 6KG MODEL IS PART OF GORENJE’S SIMPLICITY WHITE COLLECTION OF APPLIANCES

into a ‘one size fits all’ category where only the intelligent machine will cover all needs. Indeed, as retailers are well aware, people have their own idea of what’s important to them; their own, very different, lifestyles; their own method for managing the laundry; their own preferences and their own individual list of requirements.

But you can please all of the people all of the time, if you take the trouble to investigate what those requirements may be.

Quick-wash demand grows Manufacturers have spent much in the way of time and money delving into the consumer psyche, examining purchasers’ tendencies and 26

GET CONNECTED MAY 2012

motives, enquiring into lifestyle needs and trends, purely in order to deliver what the vast majority of people want in the way of products and benefits. And one particular feature of this research reinforces the theory that more households are taking a ‘wash and go’ approach to the laundry, which places speed as an important element of the mix.

Juliana Sado says that Maytag’s research has shown that consumers desire time-saving programmes, and for those who need an item washed quickly the brand’s 9kg washing machine, MWA 09149 WH/1, has a ‘Speed 15’ programme, which washes loads of up to 3kg in just 15 minutes. Beko’s research also demonstrated the need for speed, with Eco and fast settings at the top of consumers’ lists.

Laundry and Dishwashers Product Manager Laura Selten comments that lifestyles are becoming “increasingly hectic”, so people are looking for greater flexibility from their laundry appliances “as well as user-friendly, time-saving features.” She points out that the brand’s ECO WMB81445L, which is promoted as washing two loads for the price of one, has two Fastwash programmes: one that will complete a 2kg load in just 14 minutes and the other a full 8kg wash in 28 minutes. Beko has a solution for the quick drying of items, too, adds Selten: “The DCU9330 9kg condenser dryer has an ‘Xpress’ programme which can dry a 2kg load in just 14 minutes.”

Indesit Advertising & Communications Manager Libby Morley is keen to highlight the brand’s A++ rated, EST recommended Prime machines with “super quick” 15-minute Express wash dedicated to outdoor wear and sports programmes. And Darren Peake, Senior Category Manager for Hotpoint Laundry and Dishwashers, draws our attention to the new AAA-rated Aqualtis washer dryer, which has an 11kg wash and 7kg drying capability and a 45-minute wash/dry cycle.

Peake also raises another area of consideration addressed by Hotpoint as a result of consumer research; that of skin allergies and rashes, which he says are becoming increasingly common, with one in four people in Europe affected by such conditions and the number growing by 5% a year. “This has resulted in the development of anti-allergy cycles that use a high temperature phase and additional rinses to eliminate allergens and dissolve detergents that can cause itches and sneezes. The anti-allergy cycle on Hotpoint’s new Aqualtis machines has been awarded the Seal of Approval from Allergy UK,” he adds.

Keeping colours bright An aspect of garment care which is not by any means new, but is certainly gaining greater precedence in manufacturers’ communications, is that of keeping colours as bright as they were when garments were bought. “Faded and

HOME LAUNDRY & GARMENT CARE

washed out garment colours have long been a major frustration for us all,” says Whirlpool’s Dean McKelvie. “With the increasing pressure on our disposable income we are looking for ways to make our clothes last longer. Colour preservation holds greater meaning today for the consumer. Whirlpool Colours 15ºC option,” he explains, “works in concert with the 6th Sense Colours programmes, which are adapted to different colour choices to ensure outstanding colour preservation.” The Dark Colours programme protects black and dark items from fading. The Light Colours programme washes light colours, while the Mixed programme washes an assortment of colours “perfectly” without colour transfer.

Hotpoint’s Peake comments that his brand’s Aqualtis washing machines incorporate advanced technology to address the issue of colour fading: “‘High Definition Washing’ for complete care for your clothes.” He tells GC that the new 11kg, A+++ rated models incorporate an insulated Hydro Thermal Tech tub surrounding a titanium alloy drum. This maintains a constant temperature, ensuring longer lasting colours and “outstanding” cleaning results. The technology has been used to develop three specialist programmes to keep colours strong, darks dark and whites bright. Beko’s Selten adds that her brand’s WMB9124L – “the hero of the Beko TV advertising this spring” – has 16 main wash programmes, amongst which exists a “Dark Care” option.

Stain removal is a feature incorporated into a number of products nowadays and can be found at varying levels of the market. At the top-end, premium brand Miele highlights its Supertronic W5000 WPS, which has 22 preprogrammed stain cycles for stubborn marks such as grass, red wine, coffee and makeup.

The appliance is complemented by a matching Supertronic 8kg tumble dryer which uses heat-pump technology – another feature now common to many brands – to deliver 40% more efficiency than an A-rated model. Sian Rees comments that the unit has a range of specialist programmes to take care of delicate fabrics such as woollens and silks, and both appliances benefit from a 10-year warranty that includes parts and labour.

Energy efficiency in tumble dryers has been greatly improved by the use of heatpump technology, with some claiming savings of up to 50% more than conventional dryers.

Chandrasekar Kunche, Electrolux’s laundry expert, says the technology ensures better moisture extraction quicker, and at lower

Laundry products of the future: “We are reaching the maximum capacity of laundry drums, but developing machines that provide greater flexibility and functionality will be key to driving future consumer demand” Steve Macdonald, Marketing Director, Hoover Candy

So clever….

But is there really a need to sort and separate dark, lights and mixed colours prior to washing?

Apparently not with the Hoover Dynamic ‘All in One’ model. According to Hoover Candy Marketing Director Steve Macdonald, it is now possible to do all the weekly laundry in just one wash load. “The All in One machine with 11kg load is ideal as users are able to confidently wash all whites, all colours and all fabric types together, without the risk of colours running.”

Quite a bonus…

This machine also benefits from the “revolutionary” ‘8 Pulse Technology’, developed and patented by Hoover, which guarantees the removal of even the most stubborn stains by delivering a highly concentrated, pre-mixed water and detergent solution “right to the heart of the wash.” Macdonald explains that eight high-pressure jets located around the drum ensure that the solution is sprayed and quickly absorbed into the laundry, deeply penetrating fibres for a brighter, cleaner wash.

WASH MORE CLOTHES IN A SINGLE LOAD AND USE LESS ENERGY. EASY! NEW! Zanussi ZWi71401WA fully-integrated washing machine Zanussi’s washing machines are now bigger and more efficient than ever before. The new, fully-integrated A++ rated model washes more clothes in a load whilst using up to 20% less energy than a standard A-rated model.

Big wash? Easy! This 7kg appliance will wash up to 35 T-shirts at a time.Washing more garments in a single load gives your customers more time to spend on what’s important to them. The ‘at-a-glance’ LCD display provides easy and instant control over the appliance’s settings.

 1400 rpm  7kg capacity  LCD display  20 hour delay start  A++ energy rating  Dimensions (mm): H 820mm x W 596 x D 544 Trade contact details: 08445 610561 www.zanussi.co.uk

MAY 2012 GET CONNECTED

27

HOME LAUNDRY & GARMENT CARE

MAYTAG’S INTELLISENSE® TECHNOLOGY SAVES UP TO 50% ON ENERGY, WATER AND TIME

temperatures, which means it saves both time and money. Putting this into context, he adds that the A-rated AEG dryer (T96699ih) costs only 19p per load to achieve the required level of drying.

Beko’s ‘Dry and Save’ heat-pump model, like many on the market, incorporates sensor drying, which provides a foolproof way to achieve the best results. This particular appliance offers the ease of specifically designed programmes for jeans, shirts, sports and baby clothes, for example, which takes the ‘brain work’ out of judging suitable drying times. This move towards using garment types, as opposed to fabric types alone, has been widely adopted throughout the industry, both in washing machines and dryers.

The finishing touch The garment care features incorporated in washing machines and dryers go a long way towards ‘finishing’ items, but there is no getting away from the fact that a significant amount of the laundry will still require the laborious task of ironing – a chore which tends to be universally disliked and generally approached with a sense of dread. But that consumers should shy away from getting down to the business of the final job in the process of garment care does have an upside, as Gemma McHenry, Customer Marketing 28

GET CONNECTED MAY 2012

Manager for Garment Care at Philips, points out: “With consumers increasingly time poor, they are looking for products that provide greater ease and convenience, resulting in some trading up from their traditional steam irons to pressurised steam generators. Over the last year we’ve seen the steam generator market steadily increase, with pressurised steam products driving this growth and non-pressurised appliances going into decline. Consumers are making a conscious effort to select products which meet their lifestyle requirements, drawn to higher-end appliances such as the Philips PerfectCare, as this offers faster results with less effort and consistent quality.”

Alex Meir, Marketing Manager at Groupe SEB UK, notes two key developments in market trends: an increase in the average price for irons

and “big growth” in sales of steam generators. In his view, “consumers are really trading up their purchases in line with the growing focus on fashion. People want to look good, and a good quality iron or steam generator is needed to make clothes look their best. Products that take the hassle out of ironing are key,” he adds.

Added value According to Philips’ McHenry, the garment care category registers a healthy £100 million for conventional steam irons and £38 million for steam generators. “Philips is the world’s number one ironing brand,” she remarks, “with a 17.2% value share.” Interestingly, McHenry also notes that since introducing the PerfectCare Optimal Temperature range, Philips’ business in the £200+

Laundry products of the future: “Dryers that rely on ‘hit and miss’ timers as the sole way of programming a cycle will be on the way out.

Consumers are looking to save energy, so they’ll be demanding sensor technology that detects moisture in their clothes and adjust the cycle to match” Libby Morley, Indesit Advertising and Communications Manager

Home Laundry & Garment Care

Laundry products of the future: “The next stage is for appliances to be even more energy savvy, and to link to the National Grid. This will change how consumers interact with their appliances and how they will conserve energy in their homes” Dean McKelvie, Product Marketing Manager, Freestanding, Whirlpool price segment of the steam generator market has grown by 10%, “showing that, even in the current economic climate, innovations that make ironing easier and faster can create new value.”

Groupe SEB’s Meir agrees that price is not the key consideration in the irons and steam generator market. “Consumers are after great, fast ironing performance, reliable brands and good value for money from their purchases,” he maintains. “That is why we are increasingly seeing customers trading up to higher spec products. Brand name is the number one

Neat work: Maytag’s ‘laundry room’ concept keeps the laundry contained

feature for irons, followed by steam level/rating, whereas with steam generators the order is reversed, with steam ratings in the top position and brand name second.”

Mark Swift, Director of Marketing at De’Longhi UK sees evidence of consumers being under a misconception about ironing appliances. “There is a perception that the more power an iron has, the better the ironing result,” he says. “It’s true that a powerful, high wattage soleplate can speed up ironing; however, it puts garments at risk of being scorched, making them ‘shiny’, particularly darkcoloured clothing.”

De’Longhi recommends that people opt for a steam generator with a low wattage soleplate and a high steam output. Swift highlights the brand’s Stirella VVX1880 with a steam output of 120g/min and optional turbo steam at 200g/ min “for fast, professional results with minimum exertion.” He explains that Stirella models have a patented Gemini soleplate which combines a ceramic outer frame that guarantees fast and uniform heat distribution, and a stainless steel inner soleplate which provides “the perfect glide” on all types of fabrics. “The offset ‘double profile’ position of the two plates helps to iron out creases, making the job faster and effortless, and, it reduces shiny patches.”

Philips PerfectCare Silence An advanced ironing experience….

Building on the success of the first Philips PerfectCare steam generator, the brand new PerfectCare Silence is the world’s quietest, high performance steam generator*. Featuring Philips’ revolutionary Optimal TEMP technology, the PerfectCare Silence offers the perfect combination of low sound, steam and temperature allowing you to iron any fabric without the need to adjust settings.

With consumers often distracted by the noise of pressurised steam generators and many choosing to do the ironing in front of the TV, Philips developed PerfectCare Silence to ensure users are given the most enjoyable experience possible.

Combining a revolutionary cyclonic steam chamber to release steam at a consistently high pressure (where other steam generators may leak or deliver little/no steam) together with a Smart Control Processer, the PerfectCare Silence keeps the soleplate at a constant temperature. Even when left on fabrics for up to five minutes there is no risk of burning or marking clothes.

There is no need to pre-sort clothes or to change temperature settings, and the ability to go from linen to silk to cotton to cashmere without waiting means users can save valuable time on the ironing – more time to spend doing the things they enjoy! * In the category of pressurised steam irons

MAY 2012 get Connected

29

HOME LAUNDRY & GARMENT CARE

THE HIGHPOWERED 5SAFETYTM IRON FROM AEG

Eco control Swift also observes increasing interest in the ecofriendliness of products, with more consumers wanting to “do their bit” for the environment and save money at a time of increasing energy prices. Here he highlights the brand’s Dual-Vap, a system that gives the user total control over the delivery of steam, choosing between distribution over the whole soleplate or a concentration at the tip, which is ideal for cuffs, collars, between buttons etc. “The all-new ECO steam setting lets the user save 15% to 30% energy and up to 50% water, without compromising on the perfect ironing result,” he adds.

At the other end of the user-control scale sits Philips’ “revolutionary” PerfectCare steam generator which, according to the manufacturer, “paves the way to a new age in garment care.” The appliance is the first of its kind to use ‘Optimal TEMP’ technology, created by Philips, which removes the onus of selecting temperature and steam settings – a blessing for the inexperienced or impatient user and a significant move forward in ironing technology. “PerfectCare has no temperature dial, but maintains the perfect combination of temperature and steam,” explains Gemma McHenry. “This means it can be used on any fabric, from silk to linen, with great results, fast, making it an easy option to cut the time spent ironing in half.”

One would imagine this technology to be eco-friendly by default as it removes the temptation to speed up the process by using excess heat and steam; and, of course, it also protects

users from making costly mistakes while ironing and will prolong the life of fabrics too. McHenry points out that the PerfectCare ‘Silence’ model is the world’s quietest, high performance steam generator in the pressurised category. For retailers, she advises that educating consumers on the benefits of the product, or any other pressurised steam generator (as opposed to a non-pressurised model or traditional steam iron), is a “major opportunity” as this market continues to grow. “But,” she adds, “it is also important to help consumers understand the benefit of upgrading any iron more regularly so they continue to get the best performance.”

In-store assistance There is plenty of help from manufacturers for retailers promoting products in the crowded ironing market. Philips, for example, offers a range that is marketed to different segments, providing retailers with clear step-up benefits.

The brand has also created ‘easy buying guides’ so consumers can identify which product is right for their own lifestyle requirements.

McHenry adds that the company has also arranged product demonstrations to help

increase awareness and show the benefits of PerfectCare appliances.

Groupe SEB’s Meir stresses the importance of clear communication and understanding of key selling features for retailers and consumers: “Point-of-sale material, display units and in-store training material are very effective communication tools,” he comments.

“As well as working hard to generate consumer awareness of both the Tefal and Rowenta brands and products, the Team SEB merchandising and training team is constantly out visiting stores, keeping retailers up to date with the latest products and technology.”

Speaking of De’Longhi’s support for the trade, Mark Swift adds that his brand holds regular training sessions for its sales representatives and offers training at its headquarters for independent retailers, so they can become “experts” in advising consumers on the type of appliance needed to suit their lifestyle. He also points out that the company has a range of branded and informative in-store displays and POS to explain the key benefits of unique design features as well as the overall benefits of buying a steam generator rather than a traditional non-pressurised iron. “And there is a wealth of images, videos and information to support online sales,” he adds, wisely recognising that consumers need confidence to purchase, whether in-store or online.

Swift concludes that focusing on margin and being brand aware is of great importance to retailers wanting to make the most of this market. To this effect, he says: “De’Longhi looks at supporting sales via real value-added incentives and savings promotions to deliver both value and volume growth.”

THE TEFAL EXPRESS COMPACT STEAM GENERATOR OFFERS 20% ENERGY SAVINGS IN ‘ECO’ MODE

30

GET CONNECTED MAY 2012

GROWTH FROM KNOWLEDGE

Growth from Knowledge

Home Laundry: big capacity drives value sales

Richard Allen, GfK Account Executive, Domestic Appliances, gives his view on the home laundry sector, which has undoubtedly benefitted from the move towards larger capacity washing machines and tumble dryers. It is an encouraging picture for the ‘big drum’ market.

It

has been another positive year for the washing machine category as value increased by 2% for the twelve months to February 2012. This represents an uplift of £21 million, with the market value moving ever closer towards £900 million.

Growth has been driven by a heightened interest in big capacity machines (7kg+), which saw value sales rise 23% over the period as their share of the overall category grew to nearly 60%.

This trend has been fuelled by manufacturers flooding the market with these larger capacity models – bigger capacities can reduce the number of washes per week, thus lowering both the time consumers spend on household chores and the cost of their energy bills.

sector are the rise of condenser dryers – up 6% year-on-year and now accounting for 61% of the dryers market – and the increase in sales of washer dryers, which have grown 12% over the year and are now worth in excess of £125 million.

The graphs below show the movement of the market towards bigger capacities – the improvement and decline clearly visible as the popularity of 7kg+ machines grows.

“Big Capacity models have increased sales significantly over the year”

HOME LAUNDRY SECTOR: SALES VALUE % AND YEAR ON YEAR GROWTH MAR ‘10  FEB ‘12

“Big capacity has played a key role within the home laundry markets over the past year and will continue to be at the forefront of growth as the year progresses.”

The tumble dryer category has had contrasting fortunes, having struggled over the past twelve months. Value fell by 2% with the total market now worth just over £200 million.

Despite this decline, larger capacity models have again been a major winner, with 7kg+ dryers now worth 75% of value sales, representing an uplift of over £16 million.

Big capacity has played a key role within the home laundry markets over the past year and will continue to be at the forefront of growth as the year progresses. Other points to note in the

 Richard Allen, Account Executive, Domestic Appliances – Tel: 0870 603 8124 richardp.allen@gfk.com www.gfkrt.com/uk

www.twitter.co.uk/gfkrtuk MAY 2012 GET CONNECTED

31

GEORGE COLE GETS CONNECTED

George Cole pinpoints hotspots in the world of consumer electronics.

DIGITAL TV –

ALL CHANGE AGAIN?

It

32

’s ironic that, just as we are on the final

that up to 10,000 homes may have to switch

lap of the digital TV switchover, view-

from DTT to an alternative digital TV platform,

ers may soon be forced to retune their

such as satellite or cable. These homes will

Freeview TVs, fit new filters, or even abandon

receive funding to help them switch platforms.

digital terrestrial TV for satellite or cable. The

What’s more, in six years or so, all DTT

problem stems from the arrival of new 4G mo-

viewers could be forced to change again, as

bile services, which will offer data speeds up

Ofcom is consulting about shifting DTT from

to ten times faster than the existing 3G sys-

the 700MHz band to the 600MHz band after

tem. The issue, as ever, is about frequency

2018. This is being driven by the growing

spectrum. The old analogue TV spectrum

demand for mobile broadband, as more and

used UHF bands IV and V, covering 470MHz-

more people use smartphones and tablets to

862MHz. By switching to digital TV, spectrum

access music, video and TV from the internet.

is freed up in the 600MHz and 800MHz bands,

There’s another reason too: in some countries

with the bulk of digital TV (Freeview) services

(including the US), the 700MHz band has been

using the 700MHz band. The 4G services will

allocated for mobile broadband, and in a world

use the 800MHz band, and this could cause

where consumers want to use their mobile de-

problems for many households (estimates

vices anytime and anywhere, and manufactur-

range from 750,000 to around 2 million). The

ing devices for a global market is common, the

snag is that digital TV tuners are also de-

pressure could be on for European countries to

signed to receive services from the 800MHz

allocate the 700MHz for mobile broadband too.

“The problem stems from the arrival of new 4G mobile services, which will offer data speeds up to ten times faster than the existing 3G system. ”

band (because this band was used for some

The sting in the tail is that moving digital TV

DTT services during the switchover period),

services to the 600MHz band could mean that

and so could suffer from interference when

many viewers will have to do more than just re-

4G arrives. It’s thought that homes within 2km

tune their digital equipment; they may need a

WON’T GET BURNT AGAIN

of a 4G mast could be the most affected.

new aerial or even new digital equipment. This

The UK’s 4G auction looks like taking place

Ofcom, the media regulator, thinks that a

is because DTT services on the 600MHz band

towards the end of the year, with the first 4G

simple filter connected to the TV aerial could

will probably use the more data efficient DVB-T2

services emerging in 2013. It’s estimated

solve the problem by blocking frequencies

technology (as currently used by Freeview HD).

that the 4G auction will make the government

from the 800MHz band. Ofcom also reck-

Most homes have digital equipment with DVB-T

around £2-3 billion. Compare this with the 3G

ons that the filters will cost around £11

technology, and so would be unable to

auction, which took place in 2000, just before

to purchase and fit. As a result, the

receive the new DVB-T2 services – in

the last great technology bubble was about

regulator has set aside £180 mil-

the same way that standard digital

to burst. Then, the telecoms companies paid

lion from the forthcoming 4G auc-

TVs can’t offer Freeview HD. With

a jaw-dropping £22.4billion for 3G licences,

tion for fitting filters, including extra

all this coming so soon after the dig-

and soon after discovered they had got their

help for the over 75s and disabled

ital switchover, there could be a great

fingers well and truly burnt. It took years

people. But critics argue that this sum

consumer resistance to purchasing

before consumers were able to take full ad-

is too small, as it doesn’t take into the

yet more digital equipment. Look

vantage of 3G, and even today, many mobile

account secondary sets with indoor

how hard the industry is finding it

users still use 2.5G services. Hence the much

aerials, or those living in flats and

to persuade people to swap their FM

lower price expected this time round.

communal dwellings. Furthermore,

radios for DAB. It will be interesting

not all interference issues will be

to see how government and industry

solved by using a filter: it’s estimated

square this circle.

GET CONNECTED MAY 2012

E-mail: georgecole@gcmagazine.co.uk

FROM THE BENCH

E-mail: fromthebench@gcmagazine.co.uk

Fount of knowledge Independent brown goods retailers pride themselves on their product knowledge and the expert advice they can give their customers. But where does it come from?

Alan Bennett reviews a new book

The glossary covers all those easily-forgotten abbreviations such as ADSL, H.264, MHEG, QAM, S/PDIF and UMD.

Companion volumes In the same series are two similar books, likewise aimed at the user and enthusiast but

In

very useful to those in the trade and the retail an increasingly complex world,

cle in the cupboard or desk drawer! Covering

industry. Radio Listener’s Guide is structured

and with ever-widening diversity

everything from broadcast platform guides to

very much like the TV book, but with many

of products, functions, broadcast

setting up an aerial, from television feature ex-

reviews of specific radio receivers in several

platforms and applications, the range of

planations to advice for hard-of-hearing view-

categories, also buying advice and recommen-

knowledge required of shop staff, managers

ers, it forms a handy pocket-sized reference

dations. There follows a 20-page collection of

and proprietors increases every day. You are

which has got me out of trouble many times.

transmitter maps, listed by broadcaster, and

expected to provide instant, expert answers to

What are the great advantages of TV rental?

then information on all aspects of DAB digital

the many questions people throw at you. Few

What channels can you get on Freesat? Do

radio. Next come guides to local radio; Irish

of us can claim to know them all! What broad-

you need a licence to use iPlayer? What are

and overseas radio; listening via TV platforms;

band speed do you need for HDTV? For 3D

the pros and cons of Google TV? How do the

via the internet, Wi-Fi and podcasts; and finally

TV? How do you get a dead zapper to work?

various manufacturers’ internet portals stack

a comprehensive 26-page block of general

up, and which is best for a customer’s specific

radio information, details of frequencies, trans-

requirements? And so on, across a huge range

mitters, contacts and then broadcast informa-

of subjects and topics.

tion: weather, travel, news and time signals. If

Dearth of information For technicians, the best information source I know is Newnes Guide to Television and

Video Technology by K F Ibrahim, published

by Newnes/Elsevier, ISBN 978-075068-165-0.

A mighty and comprehensive tome. For the much more numerous race of salespeople, the situation is less well defined. There are manufacturers’ training courses but they are necessarily oriented to specific products.

There are journals like this one, but it is difficult for them to provide the breadth and depth of coverage of a specialist book, and their information and advice, good though it may be, is by definition scattered over time.

Of course there is the internet, containing a lot of information, but some of it (especially in forums) may be biased and inaccurate, while pure information sites are becoming rare, and can get buried under commercial and salesbased ones. It takes time and determination to separate the wheat from the chaff, and you can hardly research information with which to field general questions while the prospective customer waits in the shop!

This book, Television Viewer’s Guide, bang up to date, authoritative and wide-ranging, provides a solution: it’s a bit like having an ora-

Contents

you are seriously into selling radio this book is for you.

The guide, 161 pages long, is divided into

Mobile Phone User’s Guide is uniform with

nine sections: News, covering the latest

the others. Fewer of our readers sell phones

launches and technologies; Digital TV – the

than TV, video and radio equipment but if you

options, with details of all the broadcast and other platforms; Channel guide, delineating every channel available on Sky, Freesat and Freeview, also the multiplexes for the latter; TV equipment guides, explaining types, features and technology of screens, receivers, disc players, projectors and sound systems, also TV calibration; How to... containing practical advice on cables, hook-up, ‘first aid’, home networking, interference and picture problems, also advice for sight- and hearing-challenged viewers; Foreign language TV, with advice on how to receive European TV broadcasts; Aerial and satellite dish information, covering the selection, installation and alignment of TV aerials and dishes; Transmitter information, containing comprehensive site maps and listings – with much detail – of UK TV transmitter sites; and Contact addresses and glossary, listing broadcasters, manufacturers and many others, including useful information websites.

do – or if you are interested in mobile phones for their own sake, and this is a fast-moving target – this 161-page guide will be of interest: it addresses every aspect of the subject, including product reviews, network information, internet, e-mail and foreign use, security, troubleshooting, codes and prefix/area decoder, contact numbers and addresses etc. etc. Very comprehensive, very up-to-date.

Value I can heartily recommend these books, especially the TV one, as good value, and perfect cribs and mentors. Easy and interesting reads, they are priced each at £5.95, about the cost of three small coffees in the high street, less than a packet of twenty cigarettes. You get three for the price of two (one each for the boss and two salespeople?) and ongoing subscriptions – the books are published once a year – are available. See www.radioguide.co.uk MAY 2012 GET CONNECTED

33

BACKCHAT

She’s a would-be rebel who fancies the role of a feisty Latin super-

heroine, and although she loves food – especially Italian cuisine and chocolate – she isn’t at all enthusiastic about doing the cooking.

Could have been a journalist, but admits that telling even small untruths is not her strong point. Meet Rita Balestrazzi, Marketing Manager of Baumatic.

Why did you choose to work in the electrical industry?

It wasn’t something I planned at all! My family is in the business so I decided I should rebel and do something else entirely. After uni, I started a job in admin and marketing for a soft toy manufacturer. I quickly learned that I was no PA, but that my newly developed marketing skills might be salvageable.

As fate would have it, a marketing assistant role came up at Baumatic, and I’ve never regretted the decision to join the industry. In this business, we get to be part of the design, supply and marketing process of cutting edge technology that has real relevance to people’s homes and lives

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

Journalism has always interested me, so I would definitely consider it as a career choice. I’m naturally nosey, so I think that would help!

What makes you laugh?

My dog, Rocco, is an eccentric little drama queen!

Every so often, the gardener or postman will come to the door and present me with some underwear that he’s half-buried in the front garden. He is also a notoriously fussy eater, turning his nose up at regular dog food, and even my leftover dinners

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

Mmmm.. a difficult one, but probably Catherine Zeta- Jones’ character in The Legend of Zorro.

Playing a feisty Latin super heroine definitely appeals to me!

What was the greatest turning point in your life?

Moving to London! I love it, even when it is crazy busy! It’s given me great independence and enabled me to live life to the full

Is there anything about yourself you’d like to change?

If I could be more patient, life would be a lot easier to handle! I waste a lot of my time and energy trying to force things along

What’s the worst lie you’ve ever told?

Lying never works out for me. Not even white lies.

I pretended to adore an old school friend’s rapper style hat, only to be presented shortly after with an identical one from said friend. Maybe not the worst lie ever, but for a sixteen year old wannabe, the consequence was as bad as it could get

Any hidden talents?

I’m pretty good at disappearing when there’s any cooking to be done. I’m also quite decent at table football, though I haven’t had a chance to practice for a while!

How would you describe yourself?

Sociable, quirky and dramatic How do you think others see you?

A crazy chatterbox! But hopefully not an annoying one Any bad habits?

Too many to list here! But my disorganization is legendary in the Baumatic office. My filing skills are non-existent, so I have big old piles of paper stacked on my desk!

34

GET CONNECTED MAY 2012

What surprises you?

How unmotivated I am when it comes to cooking.

I love eating and I work in the kitchen appliance industry, yet I can never be bothered to cook!

Favourite cuisine?

Italian is my all time favourite. I’ll eat and enjoy almost anything, but there is nothing quite like Italian food to fill you up and leave you satisfied

Any particular fetishes?

I really love the smell of dog food! I haven’t gone quite as far as eating it yet, but there’s still time…

What would you put into Room 101?

Ryvita, dumplings and liver - the only three foods in the world that I cannot, will not eat. To me, they’re an affront to the taste bud!

and pop music from artists like Jennifer Lopez – anything that can lift my mood, and make me want to dance

Favourite quote?

“Put one dumb foot in front of the other and course-correct as you go.” – Barry Diller Who has been the greatest influence in your life?

I’ve had a lot of good influences in my life, but my mum has been the most consistent. She’s definitely my moral compass Name your poison Tequila!

What do you daydream about?

Food! Chocolate-based day dreams are the most recurring Favourite holiday destination?

Cuba! The beaches are lovely and the nightlife is vibrant What’s the worst thing that’s ever happened to you?

Having my house robbed twice in 6 weeks! Adding insult to injury, they came back for a second free helping after I’d just replaced everything!

What’s the best kind of punishment…?

The forcible ingestion of encyclopaedias …and who deserves it?

Annoying smart-alecs!

Where do you see yourself in 5 years’ time?

I have no idea, but hopefully I will still have a hands-on part in the industry. I would love to do more for the business on an international scale What’s your greatest fear?

I’m a total arachnophobe. Any encounter with spiders, however small, is traumatic for me!

Whom do you most admire?

I really admire my sister. She recently ran the London Marathon in just over 4 hours and managed to raise a heap of money for DEBRA, a charity for children with a genetic skin blistering condition What’s your favourite piece of kit?

I love my iPhone 4S and my Baumatic BTM23.3M Microwave in equal measure!

What’s your greatest achievement?

Probably my university degree. After that, I swore I would never ever study again!

What motto do you live by?

If you don’t stand for something, you’ll fall for anything. I think you need to have the courage of your convictions, if you want to get on in this world

What sort of music do you like?

I like a bit of everything, but especially hip hop

Tomorrow I will… …cook something – maybe.

Warming to warranty As the industry’s leading warranty specialist we know that the key ingredients for success are in the planning and preparation. With dedicated UK contact centres, an unrivalled repair network and impressive customer service ratings, there has never been a better time to turn up the heat on warranty sales with Domestic & General.

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