Appliance Retailer December 2019 by The Intermedia Group

APPLIANCE

NOW IN ITS 23RD YEAR

MICROWAVES CONVENIENCE AND VERSATILITY ARE KEY FOR THIS KITCHEN STAPLE

WINE CABINETS & BEVERAGE COOLERS EDUCATION REMAINS FUNDAMENTAL TO SALES SUCCESS

RETAILER

THE BUSINESS MAGAZINE FOR THE CONSUMER ELECTRONICS INDUSTRY

/// DECEMBER 2019

Smart Home

CONNECTED HOME SECURITY AND SURVEILLANCE PRODUCTS EXPERIENCE ACCELERATED GROWTH

EDITORʼS NOTE AR Appliance Retailer is published by The Intermedia Group Pty Ltd ABN 940 025 836 82 41 Bridge Road, Glebe NSW 2037 Australia P 02 9660 2113 | F 02 9660 4419 E appliance@intermedia.com.au W www.intermedia.com.au ISSN: 1328-1852

Less Christmas cheer with the exception of online sales

hen I asked retailers about the 2018 Christmas trading period, there was a resounding response that the advent of Black Friday and Cyber Monday had pulled sales early, resulting in a slowdown for December and January sale events. And this year is no different. The Deloitte Retailers Christmas Survey unveiled that 47 per cent of retailers have experienced flat or negative sales growth over the last 12 months and almost 40 per cent expect to see a decrease in seasonal margins. This confirms that retailers are the most pessimistic they have been since 2013. Deloitte national leader for retail, David White attributed these statistics to uncertainty, which he said ultimately ‘kills’ confidence. “Australian retailers are waiting for a recovery in wage and jobs growth to provide a boost where interest rates and government tax cuts fail to provide the stimulus needed.” But on a more positive note, more than half of survey respondents expect growth of 10 per cent or more in online sales. Christmas forecasts from the National Retail Association (NRA) has supported this finding, revealing that a whopping $50,000 will be spent per minute on online purchases. Online giant Amazon has been busily preparing for the silly season with some key announcements over the last few weeks including the opening of a

Managing Director Simon Grover Editorial Director James Wells james@intermedia.com.au Deputy Editor Emily Bencic ebencic@intermedia.com.au Features Editor Kymberly Martin kymberly@intermedia.com.au General Manager – Sales Rod Riley rod@intermedia.com.au Art Director Alyssa Coundouris Prepress Tony Willson Production Manager Jacqui Cooper jacqui@intermedia.com.au Subscriptions 1800 651 422 subscriptions@intermedia.com.au

Average Net Distribution Per Issue: 5,139 AMAA/CAB Yearly Audit Period ending 31st March 2019.

fulfilment centre in Perth to support its existing Sydney and Melbourne centres, a partnership with buy-now-pay-later provider, Zip and most recently, the roll out of Amazon Hub – a network of parcel pickup points with more than 100 locations in New South Wales and Victoria already available and plans to grow the network into the thousands across the country in 2020. Although many were quick to shrug off Amazon’s impact on the local market, the company is moving along an upward trajectory to meet ever-changing customer demands. With the Christmas rush upon us, it’s a stressful time for consumers as they look for suitable gift ideas, taking their hip pocket into consideration, and if shopping online, delivery speed becomes a make-or-break factor at the checkout. It’s also a stressful time for retailers as they need to make sure stock is plentiful and they have adequate staff on-board to provide easy and efficient transactions. It’s been an eventful year for the industry with many ups and downs and I look forward to a more prosperous 2020. On behalf of the Appliance Retailer team, I wish you a happy and safe holiday season and thank you for your continued support. Until next year.

Deputy Editor Emily Bencic

MEET THE APPLIANCE RETAILER TEAM

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www.linkedin.com/company/appliance-retailer

Alyssa Coundouris twitter.com/Applianceretail

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APPLIANCE

NOW IN ITS 23RD YEAR

MICROWAVES

RETAILER

THE BUSINESS MAGAZINE FOR THE CONSUMER ELECTRONICS INDUSTRY

/// DECEMBER 2019

Smart Home

CONNECTED HOME SECURITY AND SURVEILLANCE PRODUCTS EXPERIENCE ACCELERATED GROWTH

CONVENIENCE AND VERSATILITY ARE KEY FOR THIS KITCHEN STAPLE

WINE CABINETS & BEVERAGE COOLERS EDUCATION REMAINS FUNDAMENTAL TO SALES SUCCESS

[ON THE COVER]

ARLO PRO 3 SPORTS A RAFT OF UPDATED TECHNOLOGY

Following the success of its market leading Pro 2 wireless security camera, Arlo Technologies recently announced the launch of its Arlo Pro 3 range. The range steps up the camera technology in seven key areas. Firstly, the camera resolution moves up from 1090p/HD to 2k/QHD. Next, the Pro 3 comes with a spotlight and siren integrated into the camera. The zoom feature is stepped up from 8 times zoom to 12 times zoom, and the field of view expands from 130 degrees previously to 160 degrees on the Pro 3. The new offering also delivers High Dynamic range to work exceptionally well in both low and overexposed light. Finally, the Pro 3 boasts Colour Night Vision, to give more details at night. With all of this, the new Pro 3 looks set to take the reins as the new market favourite. 4

Appliance Retailer December 2019

VOLUME 25 / ISSUE #6

19 EDITOR’S NOTE

Less Christmas cheer among retailers

Online sales tipped to shine bright.

NEWS

Brad Wright joins Narta as head of commercial; Nespresso brings in new Oceania general manager

A newly created role to strengthen the senior management pool at Narta; To build on achievements from working at Nespresso Brazil.

TP Vision to grow Philips TV business; Camera House fills newly created position

With the appointment of a local sales director; Brings over 20 years in senior leadership roles.

IN THIS ISSUE

David Jones to bring Bourke Street flagship under one roof; Toshiba appoints Australian distributor for home appliances

Existing footprint optimised to increase floor space and enhance the in-store experience; To fulfil aggressive product strategy plans.

Key highlights from the Hong Kong Electronics Fair

With 4,300 exhibitors the world’s biggest electronics show was a busy event and major sourcing platform for 60 countries.

An exclusive interview with Electrolux MD Mike Putt

As he retires after a 36-year career with the company.

FEATURES

Smart Home

The expansion of connected products is not showing any signs of a slowdown, but research has confirmed that privacy remains a key barrier to even wider adoption.

Uniden iGO Cam 85R

Wine Cabinets & Beverage Coolers

Strong demand is being driven by increasing awareness about products via media, in-store tasting and wine clubs.

Microwaves

Microwaves remain the beloved kitchen staple, even for the modern consumer. The category provides retailers with steady sales due to a consistent replacement market.

RETAIL INSIDER

The Many Moods of Modern Marketing

Smeg Drip Coffee Machine

Retailers must stay on top of marketing trends and have a clear understanding of who their customer is and how to best convey their message to them.

BEST SELLERS FOR CHRISTMAS

Products at the top of the wish list

Whirlpool Crisp Fry Microwave, Bora Classic Cooktop Extractor System and Uniden iGO Cam.

WHAT’S HOT

Pick of the crop

Smeg Drip Coffee Machine, Gasmate 6 Burner BBQ, and more. www.applianceretailer.com.au

AR NEWS

BRAD WRIGHT JOINS NARTA AS HEAD OF COMMERCIAL Former Samsung Australia executive Brad Wright has joined Narta in a newly created role as head of commercial. Commenting on the appointment, Narta chief executive officer, Michael Jackson told Appliance Retailer the role was created to strengthen the senior management pool at Narta and to provide further diversification. “Over the last few years, Narta has changed its value to shareholding members and suppliers outside of traditional buying. This allows Narta to drive further value through retail services including marketing, data, customer experience and procurement. Centralised procurement has provided cost efficiencies in areas such as electricity, cash in transit, gift cards, marketing, waste removal and others. Our procurement program has expanded our affiliate membership base to include, Fantastic Furniture, Metcash, IGA, Estee Lauder, Jaycar, Calvin Klein as well as suppliers to the electrical retailing industry.

“In addition to this we have also expanded our marketing program into TV, digital and launched National Product Review. The continued investment and expansion of our data provides ‘Dash Boards’ to our retailers delivering a total end-to-end solution, retail insights, performance, opportunity analysis, stock on hand, run rates, forecasting, end of life management and more, and this will soon commence as a platform for suppliers to have access to. “With all of these elements, that are separate to the buying function, Brad’s role creates leadership support to all these new areas, our affiliate non-shareholding members and the opportunity to enter new business. “While buying still represents the volume and foundation of our business, the future value will be delivered through operational efficiencies, retail services, procurement as well as data and logistics. Our combined value in all these areas, leveraging our scale will deliver a much more valued added business to our shareholders and suppliers today and into the future. We have some exciting new initiatives that will further enhance and grow our business including start-up pillars, that Brad will build and execute with his new role. We are looking forward to what

Brad Wright has filled the newly created role, head of commercial at Narta

Brad will provide the group and our partners and know that his experience at both Samsung and Schneider will provide further strength to what we do. Brad understands the supplier side, all the pain points connected to the delivery of data, marketing, logistics, stock management and he will also provide fresh ways and ideas to add further value.”

Nespresso appoints Jean-Marc Dragoli as new Oceania general manager New Nespresso general manager – Oceania, Jean-Marc Dragoli

Appliance Retailer December 2019

Nespresso has appointed Jean-Marc Dragoli as general manager Oceania after successfully leading the company’s Brazilian operations. He replaces Loïc Réthoré who left the business in August and has since taken on the role of regional president for Dyson North Asia. Based in the Sydney office, Dragoli will look to build on his achievements in Brazil where he delivered double digit top-line growth each year. He will focus on continuing to enhance the customer experience and driving the organisation’s innovation and sustainability efforts at a local level. Nespresso Oceania has enjoyed a period of sustained growth in recent years through providing access to the latest in coffee extraction technology with the Vertuo coffee system, the launch of subscription services and the opening of reimagined boutique formats across the region.

This has been complemented by strong growth with the Nespresso Professional offering for workplaces, hotels and fine dining venues. Nespresso head of APAC, Middle East and Africa, Roland Tschanz said, “We are delighted to have Jean-Marc join us at a hugely exciting time for the business, as we continue to lead the way in sustainable, high quality coffee in the region. “With an excellent management team in place, we know he will build on this success in the coming months and years.” Commenting on his appointment, Dragoli said, “I know Australians and New Zealanders are true coffee connoisseurs and I am looking forward to working with colleagues across Oceania to offer the highest quality sustainable coffee and service to people at home, in the workplace, at hotels and fine dining establishments.”

Winning Group opens training facility for industry-first program Winning Group has opened a purpose-built training facility to host an industry-first training program at Rosehill in Sydney’s west. The Winning Academy program focuses on technical competencies and soft skills to encourage best practice for customer service and certify Winning Group team members, including product experts, customer service teams, delivery teams and installation teams. The program is led by national training and product expert, Matthew Ahern as well as learning, education and development manager, Chris Tan. The team was handpicked from some of the world’s leading educational institutions. The facility incorporates multiple environments that stimulate stores, customer home environments and technical installation spaces. It aims to service all training requirements from

The Winning Academy in Sydney’s Rosehill

THE FACILITY INCORPORATES

MULTIPLE ENVIRONMENTS THAT STIMULATE STORES, CUSTOMER HOME ENVIRONMENTS AND

TECHNICAL INSTALLATION SPACES.

basic introductory courses through to masters-level certifications, all of which combine class-based theory, practical hands-on training and in-field coaching, to enhance skills, improve career advancement and heighten customer experience. Winning Group CEO, John Winning said the Winning Academy training facility and program has been developed to assist the Winning Group team achieve the company’s mission of providing the best shopping experience in the world. “The Academy is accessible to all team members, providing them with a certified training course, which will demonstrate that Winning Group team members are equipped with the best skills necessary to provide exceptional customer service. This is a truly unique training approach and something which we anticipate will become the benchmark for retail services and logistics training nationwide.”

BUNNINGS NOW SELLS APPLIANCES, HOME ENTERTAINMENT Bunnings customers are now able to purchase whitegoods, kitchen appliances, home entertainment, kitchenware, homeware and indoor furniture, not currently available in stores, through its online marketplace, MarketLink. Bunnings’ managing director, Mike Schneider confirmed that discussions with home and lifestyle retailers and manufacturers were already underway in October with more than 8,000 products ready for launch at the time. “MarketLink features a wide variety of products, including well-known brands, that are not currently available in Bunnings stores,” he said. “This is about creating a highly curated range of products that extends and complements our in-store range, creating a one stop shop for our customers’ home and lifestyle needs – everything from the front gate to the back fence.” Home and lifestyle retailers and manufacturers interested in selling on MarketLink are required to qualify for its Trusted Sellers Program. In other news, Bunnings entered into an agreement to acquire leading South

Australian family-owned and operated retailer, Adelaide Tools. With a 70-year history, Adelaide Tools serves trade customers and highend DIY enthusiasts through its five Adelaide stores, Oaklands Mower Centre and online store. Bunnings’ Mike Schneider said the acquisition will allow the hardware giant to improve the way it connects, serves and engages with trade customers and is

aligned with its strategy to accelerate the growth of the trade business. “While our businesses are very different, we see strong alignment between the Adelaide Tools and Bunnings brands with both businesses having a strong focus on team, advice and service – we believe this acquisition will deliver even more choice and convenience for trade customers,” he said.

Bunnings customers are now able to purchase indoor furniture, whitegoods, kitchen appliances, home entertainment, kitchenware and homeware

www.applianceretailer.com.au

AR NEWS

TP Vision to grow local Philips TV business with new sales director Exclusive brand licensee for Philipsbranded televisions worldwide, TP Vision, has welcomed Jason Oh as sales director for Australia to further grow the Philips TV range locally. This is the first time a sales director has been appointed by TP Vision in Australia to focus on the local Philips TV business. Oh brings more than 30 years of industry experience from management, sales, product and merchandising roles. Most recently, he was product and sales manager for Tempo Australia. He has also worked for Hitachi, Sharp, Sanyo, Imation and Laser. In his new role with TP Vision, Oh will be responsible for managing existing relationships and developing new channels to grow access to the range of Philips televisions, which currently comprises 19 models from 22-inch to 70inch, featuring Philips Ambilight and P5 Perfect Picture Engine. Tempo Australia currently distributes six models of Philips TVs through JB HiFi, The Good Guys, Ingram Micro and other regional distributors. Commenting on his appointment, Oh said he looks forward to working with distributors, retailers and consumers to share the ever-expanding range.

TP Vision sales director – Australia, Jason Oh

“Philips is a well-known brand in Australia with decades of heritage that means consumers rightfully trust the quality and innovation that comes with owning a Philips TV.” TP Vision regional country lead, Dion Yong said Australia is an important market for the company, and Oh’s appointment reflects a desire to grow the Philips TV business. “We need to deliver stronger channel relationships, both existing and new, as well as a brand and marketing strategy. We are confident that Jason will help

bring this to fruition in Australia and ensure Philips demonstrates its picture technology innovation. We look forward to working with Jason moving forward.” Philips and TP Vision have been in partnership since 2012 to produce and sell Philips televisions worldwide. TP Vision works with Philips’s global team in Europe to bring products to market. Powermove is currently the Australian distributor for Philips soundbars. Powermove also distributes iLuv, Motorola, Pioneer and Toshiba home entertainment.

CAMERA HOUSE FILLS NEWLY CREATED POSITION Former Fujifilm general manager – electronic imaging, Frank Bite, has joined Camera House in the newly created role of national business manager – retail. Bite brings over 20 years in senior leadership roles with experience from Hagemeyer and Konica Minolta prior to his 13-year stint at Fujifilm. As each Camera House is independently owned and operated, and with established relationships and welldeserved credibility, Bite is positioned to assist all parties on the road to success. He will report to Camera House general manager, Paul Rogers. “I have been fortunate to work with Frank in a former life and am looking forward to his contribution to the head office team,” Rogers said.

Appliance Retailer December 2019

Camera House national business manager – retail, Frank Bite

“Camera House members receive support in a myriad of diverse areas from finance, operations and logistics to web services, marketing and buying via both the Raleru head office, and more recently as part of the Narta group.

“Frank understands the ecosystem and the supplier facing componentry surrounding the structure and his breadth and depth of knowledge has many obvious advantages to the Camera House business. He will provide an invaluable conduit and filter between the store owners, the board, our key suppliers and our support staff. “His commercial acumen is something we believe will add value to all stakeholders. He has a foundation of respect from all the members of the group and his lateral thinking and organisational skills will be a great springboard to bringing commercially astute ideas to fruition. On behalf of a proud and excited team, we welcome Frank to the business.”

The Perth fulfilment centre is designed to enhance the customer experience on the West Coast

NEWS

IN BRIEF SHARP SIGNS ON TEMPO AS DISTRIBUTOR

Amazon opens third fulfilment centre in Perth Amazon is scheduled to start operations at its latest fulfilment centre in Perth’s Airport Business Precinct before Christmas. The fulfilment centre is designed to enhance the customer experience on the West Coast and will support its existing centres in Melbourne and Sydney. Amazon Australia director operations, Craig Fuller said the expansion represents the investment and development of the company’s growth strategy in Australia, following a steady and progressive increase in customer demand. “This new facility builds on the capabilities of our first two fulfilment centres in Melbourne and Sydney,

allowing us to continue to fulfil our commitment to fast and reliable deliveries for customers across the country. We strongly believe that this further investment will benefit both customers and the local economy and give Western Australian customers quicker delivery of high demand items.” City of Belmont Mayor Phil Marks said, “We are excited that Amazon has chosen the City of Belmont as the location for their first fulfilment centre in Western Australia. This is a win for our local economy. We look forward to Amazon’s contribution to local jobs close to where they live and working with Amazon as a partner in the local community.”

Miele’s Mark Bateson transitions to NZ Miele has announced Mark Bateson will take on the role of general manager Miele New Zealand, replacing Steven Bellamy, who is transitioning back to Australia as operations logistics director. Bateson has a six-year background with Miele ANZ, initially as director for human resources, before transitioning to customer service and logistics. For the past two years he held the role of director of operations ANZ, tasked with driving a customer service program. Prior to joining Miele, he held roles with Mars Confectionery, Kraft Foods and Treasury Wine Estates. Responding to the announcement, Miele ANZ managing director Sjaak Brouwer said, “I am thrilled to see Mark receive this well-deserved appointment. During his time with us, he has demonstrated strong commercial and leadership skills and his experience across many aspects of our business

Sharp has appointed Tempo as distributor for air purifiers and refrigerators. Microwaves will continue to be distributed by Sharp. Head of marketing and business planning, Halim Saliman told Appliance Retailer the decision was made based on the company’s strategy to look for opportunities to expand distribution in Australia. “We are continuing to expand our brand presence in the Australian market in line with our 100 years of innovation and quality.” In air purifiers, there is currently five models available; in refrigeration, there is six models and microwaves is currently the largest category with 14 models.

E&S LAUNCHES NEW BRAND CAMPAIGN

e&s has partnered with creative agency, 10 Feet Tall, to launch a new platform, branded ‘Get the e&s feeling’ that aims to reflect the retailer’s welcoming store atmosphere, informed and helpful staff, range and quality of products and after sales service. The campaign incorporates a range of 15 to 60 second commercials which focus on the interaction between e&s staff and their products. e&s managing director, Rob Sinclair said, “We spend a lot of time carefully curating the very best products in the world at every price point, and this platform really articulates how much thought and energy goes into our sourcing, training, and pricing, to deliver the best possible retail experience.”

FUJITSU GENERAL ON COURSE

Mark Bateson is the new general manager for Miele New Zealand

will undoubtedly bring a wealth of knowledge and skills to our New Zealand subsidiary.” He also acknowledged the significant contribution of Steven Bellamy during his two-year tenure in New Zealand. “Steven has had an incredible impact on our continued growth with our business partners and our Miele NZ team in Auckland, Wellington and Christchurch,” he said.

Fujitsu General Australia hosted its 21st annual President’s Cup Golf Tournament at the Twin Waters and Noosa Springs Resort golf clubs in Queensland. Fujitsu General president Etsuro Saito joined 80 customers from Fujitsu General’s retail, dealer, commercial and consultant channels across both Australia and New Zealand for two days of competition. Also attending were Australian and New Zealand brand ambassadors Mark Taylor and Stephen Fleming, along with players and representatives from the Essendon Football Club and Sydney Football Club. First place winners were Robert Younes from Epic Air and Andrew Robertson from The Good Guys, Warners Bay.

www.applianceretailer.com.au

AR NEWS

The new-look David Jones store on Bourke Street is due to be completed in 2021

DAVID JONES TO TRANSFORM MELBOURNE FLAGSHIP The David Jones menswear store in Melbourne’s Bourke Street mall has been put up for sale with some of the sale funds to be used to refurbish its site across the mall to create a cohesive single-store experience. The new-look store at 310 Bourke Street, due to be completed in 2021, will be specially curated for Melbourne CBD customers with an emphasis on premium luxury and lifestyle brands. The existing store footprint will be optimised to increase floor space and enhance the instore experience.

Woolworths Holdings Limited (WHL) Group CEO, Ian Moir said the sale of 299 Bourke Street and development of an enhanced singlestore offering represented a significant milestone in the brand’s retail optimisation strategy. “The sale of 299 Bourke Street will allow us to deliver a more integrated retail experience to customers in Melbourne’s CBD,” he said. “A single-store flagship housing the best local and international brands in one world-class destination will create a more seamless and cohesive experience for our

customers. As we near completion of the redevelopment of our Elizabeth Street flagship in Sydney we remain committed to enhancing the in-store experience right across our retail network. We look forward to commencing the sale process and creating a new future for David Jones Bourke Street.” The refurbishment, slated to commence in January 2021, follows a series of recent enhancements to the site, including updates to the Beauty and Luxury Accessories hall, updated lifts and escalators, and new Little Bourke Street airwalks, entrances and façade.

Toshiba appoints Australian distributor for home appliances Ayonz will take on the distribution of Toshiba Home Appliances in Australia, effective January 2020. The home appliance range will consist of refrigeration, laundry, dishwashers and microwaves. In 2018, Ayonz was appointed distributor of Toshiba audio in Australia. In a statement supplied to Appliance Retailer, Ayonz said, “We are humbled and honoured by this opportunity and we are extremely committed and excited to be part of the Toshiba journey. We believe the strength of Toshiba’s Japanese quality and technology will bring a new dynamic to Australia where quality and well-featured products will change the consumer experience in the home appliance category.” Midea acquired 80% of the Toshiba home appliance business in 2016 and is licensed to use the Toshiba brand 10

Appliance Retailer December 2019

The Toshiba stand at this year’s IFA in Berlin

worldwide until 2056. However, Toshiba continues to play a major role in research and development and new technology for new product. Last year, Toshiba Home Appliances unveiled a brand refresh as part of a global expansion strategy. While Toshiba appliances are market-leading in Japan, the company’s appliances have come and

gone from the Australian market over the last few decades with a ‘toe-in-water’ approach, offering a limited range of refrigerators, washing machines, vacuum cleaners and a rice cooker. The latest distribution deal with Ayonz aims to put Toshiba appliances back on the map in Australia with a more aggressive product strategy.

AUSTRALIAN RETAILERS ASSOCIATION ANNOUNCES MAJOR CHANGES Major Australian retailers including Bunnings, JB Hi-Fi and The Good Guys have joined the Australian Retailers Association (ARA). ARA president, Rowan Hodge said the integration of these major retailers into the ARA is an exciting moment for Australia’s retail sector. “Representation of the retail industry in Australia has been fragmented. The combination of the major retailers and the ARA is a critical first step in creasing One Voice for retailers. We believe working together will grow and enhance the advocacy, events and education services we provide our members and will particularly improve outcomes for small retailers,” Hodge said. JB Hi-Fi Group CEO, Richard Murray said small business is the cornerstone of the Australian economy. “All retailers, no matter the size, want to ensure government policy encourages employment, sustainability, safety in the workplace and retail careers. We want to create a platform to celebrate

Hodge also said there will be a transition to new leadership with long serving executive director, Russell Zimmerman announcing his retirement. He thanked Russell for his many years of strong leadership of the ARA and the retail agenda in Australia. Commenting on his retirement, Zimmerman said Long-serving ARA executive he has enjoyed leading the director, Russell Zimmerman has announced his retirement organisation in an industry that touches millions of and promote all Australian retailers Australians and a pillar of the Australian and a single point of engagement for economy. “I am looking forward to a government, industry and community new chapter and fresh challenges in my groups,” Murray said. professional career.” “Major retailers believe consolidating JB Hi-Fi’s Richard Murray said advocacy, representation and industry Russell had been a champion of the retail leadership activities is crucial, and that industry over the 10 years he led the the ARA is best placed to provide One ARA. “Our industry is the better for his Voice for the retail sector. Our primary leadership and insights. I thank Russell objective is the continued growth and for his years of dedicated service and success of all retailers.” wish him well.”

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AR NEWS

The Hong Kong Electronics Fair and electronicAsia welcomed 4,300 exhibitors.

Hansong Technology director of product development, Bruce Crompton

Key highlights from the Hong Kong Electronics Fair

here was plenty of buzz at the Hong Kong Electronics Fair Autumn Edition and electronicAsia. With 4,300 exhibitors, the world’s biggest electronics show held in October was a busy event and clearly a major sourcing platform for the 135 buying missions from 60 countries, including Australia. Hong Kong Trade Development Council (HKTDC) acting director, Benjamin Chau said, “Despite the ongoing trade friction between the United States and Mainland China and the continued social unrest in Hong

Award-winning Bluetooth earphones

Appliance Retailer December 2019

BY KYMBERLY MARTIN Kong, the twin electronics fairs and associated events ran without a hitch.” He added that the two electronics fairs saw an increase in buyer attendance from various markets that demonstrated that global buyers continue to view Hong Kong as an important trading platform for electronic products. The Hall of Fame is a perennial showcase for over 580 consumer electronic brands. Among them was a collection of Westinghouse vintageinspired small kitchen appliances in a range of finishes from rose gold to a gradient colour offering. Aria introduced what it claimed was a world

first in Smart App-Controlled Air Fryers with eight cooking options. Interesting entertainment tech included a replica Iron Spider Man helmet and Bluetooth speaker with projector feature that also came in a mini version and Darth Vader models. Also available from Camino International, a subsidiary of the Handsome Group, was an Infinity Gauntlet power bank from the Marvel Avengers movies. There was award-winning sound on show with sleek wireless Bluetooth earphones with stylish carry case from Mees Hi-Tech that took out a Reddot award. Despite its small size, a digital voice recorder from Rise Electronics came with a host of features including a 1.4-inch TFT colour display, calendar, stopwatch and alarm clock. Retailers wanting to keep customers’ children entertained need look no further than the U06 Canbot Intelligent Robot. It performs gait walking and “human nature-based” interaction and comes with 5G Wi-Fi. At a special media presentation, two new products caught Appliance Retailer’s attention. Remotec Technology previewed Airxed, a fan that CEO Daniel Chun said offered retailers a big market for customers with a split system air conditioner.

5G presents challenges and cost is one of them The rollout of the 5G network and its associated technologies will bring a wave of innovation in application and services. This was the view put forward by industry experts at the ‘Intelligent Connectivity: 5G and Beyond’ seminar at the Hong Kong Electronics Fair. PwC global industry leader, Wilson Chow said while this fifth-generation of high-speed mobile data will enhance the customer experience it will also bring new challenges. “The initial investment costs for operators building the network will be high, as will the willingness of the consumer to spend on 5G.” He said 4G has been satisfactory for many consumers. “Inducements or eagerness for them to pay higher premiums for 5G services will depend on operators and other business users to educate them on why they should spend on the network and the benefits it offers.” Also speaking at the seminar was Nokia Networks technical officer, Michael Chang who said key to the success of 5G depended on cross-industry collaboration. “We don’t know everything and it will be important to have the insights on how business can be transformed.” Chang also raised the issue of security: “The more you have personal data digitised the more privacy protection is needed.” While the 5G

“The fan emits infrared signals that can control an air conditioner. The installed air conditioner does not have to be adjusted as the Airxed does it for you.” It features a temperature and humidity sensor, supports Alexa and Google Home and works with 90% of air

global momentum is rapidly advancing, several countries including the US, Europe and China were already preparing for 6G, he said. And he gave an example of what a 6G network might look like: “We’ve digitised the physical world and we connect machine things together, but there’s one element we have not digitised and that is the biological world where our feelings and emotions can be uploaded to the cloud.” Speaking to Appliance Retailer at the show was Hansong Technology director of product development, Bruce Crompton who said 5G offered voice-controlled data collection and the capability of transferring data in real time. “That is the advantage of 5G, it is faster, with no delays in transmission time.” He said while costs might be an initial factor, these will eventually come down. What he believed was needed for a seamless solution was a more collaborative industry. “Will there be two platforms, from say Google and Amazon held far apart? Can I see them merging for the good of 5G, probably not.” When it comes to the big end of town, he predicted Apple would eventually exit the smartphone business and concentrate on computers. He questioned how Apple could continue to compete with Android and its huge number of users and competitors. “Apple will need to adopt some of these or find a way to stand out more than it does now. It has great loyalty factor and the early iPhones were groundbreaking but now it comes out with a smartphone with four cameras that have been around for years.”

conditioner brands including Panasonic, Samsung, Sony, Hisense and LG. Danish group Platin previewed what vice president, Helge Kristensen described as the world’s smallest voice enabled speaker, the Microdot XS with multiple connection options including

Intelligent robots

Spider Man Bluetooth speakers

Digital voice recorder

Wi-Fi and Bluetooth. Another Platin innovation was the Wave for charging headphones and earbuds to be voice enabled and Bluetooth streaming enabled. A tiny form factor it weighs in at less than 50g, with Kristensen adding that there were “definite plans for availability in Australia”. When it came to product trends, 75% of industry players held a positive view towards augmented reality (AR) and virtual reality (VR) devices with mobile or online games offering the greatest market potential. Respondents were also optimistic about electronic or electrical accessories, followed by audio visual products, computers and peripherals. This was a significantly more promising indication of market forecasts compared to last year. AR www.applianceretailer.com.au

AR PROFILE “We have to make profits, we have to deliver volume and we have to take market share, but for me the most satisfying part of my role has been seeing people come through and be promoted within our business.”

THE FORTUNATE MAN

ike Putt has retired after 36 years working in the appliance industry, initially for Westinghouse and Email Major Appliances, which later became Electrolux Home Products (EHP). Since 2014 he has been the local managing director for the Swedish company that turned 100 this year. As a talented footballer, Putt first used his networking skills when he was a teenager – securing a job in the stationery department of the JB Chandler Investment Company in Brisbane, which later became the Chandlers retail business. Working alongside Putt at the time was another 17 year-old, David Ackery, who was working in the accounts department and is now the executive director of Harvey Norman. “I have always said how fortunate I was to be given that opportunity 40 years ago. It has led to a career that has afforded me opportunities I couldn’t have dreamt of,” Putt told Appliance Retailer a week before leaving the business. Following serious rugby injuries and the introduction of Thursday night trading that clashed with A-Grade football training, meant Putt had to look for an alternative career, choosing to study marketing part time at TAFE. After a sales role selling John Sands board games, Putt applied for the only two roles in his life, Westons Biscuits and Westinghouse. 14

Appliance Retailer December 2019

BY JAMES WELLS

“I chose to go to Westinghouse in 1981 as a sales representative. Back then, you didn’t get a car and start doing your calls, you sat on the sales desk for three months and learnt about your customers, the products, model numbers and features. Over an hour a day was spent in the showroom reading brochures and only after they felt you understood the products did they let you go out on the road – but not on your own – you went with another account manager for two months and after all of the training would let you call on customers on your own. “When the Email Appliances Sydney head office found out I was 21, the Queensland office was told not to employ me as I was too young to be on the road as a sales representative. But Queensland management disobeyed the directive and took a punt on me and I was fortunate to fall into this path as it could easily have been different. “In the early 1980s, Westinghouse was a market leader in cooking and refrigeration with manufacturing in Orange. Alongside Westinghouse were other brands Metters and Frigidaire and whitegoods competitors Simpson, Kelvinator and Rank Arena. In Queensland, Retravision and Betta were the dominant retailers alongside Chandlers, Errol Stewarts, Homecraft, Don Kenway and Tracksons. Over the last four decades, there has been a tremendous amount of consolidation

resulting in the demise of so many great brands, while others have emerged such as The Good Guys and JB Hi-Fi.” When Email Major Appliances acquired Southcorp Appliances that included Chef, Dishlex and Hoover, Putt had already moved to Sydney as national sales manager for Westinghouse based in Riverwood. Hoover was added to the portfolio as its laundry complemented the Westinghouse cooking range, while Simpson and Kelvinator took on Chef and Dishlex. Shortly after the Sydney Olympics, in November 2000, EHP announced it would acquire Email Appliances. In the 19 years since, there have been only three managing directors and Putt places the other two, Trevor Carroll and John Brown, as the most influential people he has worked for. “I reported to Trevor as sales director and he had a huge influence on my career and displayed a great determination and resilience. John Brown took over in 2008 and he was a great product specialist as well as a tremendous thinker and when John left the role to work for the company in China I was lucky to be appointed as acting MD for one year and was then appointed MD in 2014.” Another person Putt names as an influence on his career was former GM of Westinghouse and Hoover, Mike Coughlan, who gave Putt the confidence to move to the Sydney head office.

“Mike Coughlan instilled the values of integrity, openness, honesty, honouring commitments and reinforcing the importance of relationships and in my time at the company we have never deviated from that. He provided great support if you were doing it tough and could make you feel bullet proof. If you did the wrong thing however, it was addressed and after 30 seconds we moved on.” Other influential people include Tom Edwards from Retravision Queensland to the unmistakable influence of Narta’s Kay Spencer and former Chandlers colleague, David Ackery. “I have worked in the industry with David for 40 years and with Kay for more than 20 years and there is no one I respect or admire more. They have both been very supportive of me. When I started, relationships were everything. Today they are still very important, however relationships alone will not secure your future like they did in the past. Can we do business today in the same way we did 20 or 30 years ago? Absolutely not. The supplier landscape is littered with brands that were not able to change and adjust. Nowadays, you must deliver on the key requirements – it’s all about our consumer, the right product, the right brand and great consumer experiences. “When you retire you reflect on how you have carried yourself because as a leader you don’t want to miss opportunities that make a difference. And if I have helped people by making a small difference in their lives, then I feel I’ve accomplished something. It is easy to say to someone they are doing a great job, but the important conversations to have are those where you say we could have done something better or to share the mistakes I have made along the way as well as my own learnings to help others. We have to make profits, we have to deliver volume and we have to take market share, but for me the most satisfying part of my role has been seeing people come through and be promoted within our business. “For Electrolux, our purpose is to shape living for the better, and that is delivered through ‘Taste, Care and Wellbeing’ experiences. The opportunity not only for us, but our retail customers is to dial up experience. As an industry, we are bringing to market some amazing products. “If you look at the best retail executions, it is all about consumer

experiences. We have the best retailers in the world, and I would debate anyone that would tell me otherwise, but how do we dial it up and how do we shift conversations within households to be – ‘what are we going to do at the weekend?’ to ‘what are we going to eat at the weekend?’ as that is what we have to promote as an industry, stop focusing internally and start growing our category by taking spend away from entertainment, fashion, travel – they

“

When I started, relationships were everything. Today they are still very important, however relationships alone will not secure your future like they did in the past. Can we do business today in the same way we did 20 or 30 years ago? Absolutely not.

”

provide experiences, but as an industry so do we. Yes, we sell ovens, but what we are doing is making a positive difference to people’s lives by teaching them and allowing them to have great tasting restaurant quality food to be enjoyed in their homes with friends and family. “There will always be challenges – but what are the opportunities and how do we focus our energy and attention on those? We all know how well-informed consumers are today, and they come into stores pre-disposed to products and

brands having researched online. Unlike 20 years ago when a consumer could be switch-sold, they are too well-informed and in-store experience is critical. Even if they don’t transact in-store – almost everyone would have visited a store to influence their purchase. “I will always have a soft spot for Westinghouse as the company I grew up with and it is such a big part of our business today. The range of Westinghouse appliances that will be brought to market next year will be without exception, the best range of products Westinghouse has ever brought to market.” Displaying his signature modesty as always, Putt claims he has few pearls of wisdom, and prefers to reflect on others rather than himself. “After I leave, I know the company is in very good shape, and we have some extraordinary talent and wonderful relationships with customers. I’ve always wanted to be better today than I was yesterday and when I think about it, Mike Putt didn’t really do anything. If he did anything, he surrounded himself with the most talented people, and then when they did great work, I made sure they were acknowledged for their work. The real achievement for me has been the people I have worked with. When I announced my retirement, I was quite humbled and overwhelmed with the number of people who contacted me to wish me well – colleagues I had worked with, customers and even competitors. What surprised me was how many reminded me of conversations we had had, or something I said to them. If I was able to help people, then I am leaving a very happy man.” AR “When I think about it, Mike Putt didn’t really do anything. If he did anything, he surrounded himself with the most talented people… and made sure they were acknowledged for their work.” Michael Doyle with Mike Putt at the opening of the Electrolux Experience Centre in Mascot, Sydney in 2017.

www.applianceretailer.com.au

Winning Appliances Richmond Culinary Theatre (Photo Credit: Jeremy Blode Photography)

Winning Appliances cuts the ribbon on Richmond f lagship BY JAMES WELLS

inning Appliances recently cut the ribbon on its new Richmond Flagship Showroom in front of more than 350 guests. It is the second Winning Appliances showroom in Victoria and 16th across the country. Located on Swan Street, the new showroom represents 37 appliance brands and offers a unique multisensory customer experience. Designed by Melbourne-based studio Cera Stribley Architects, the showroom is spread across two levels, with a unique culinary theatre at the heart of the showroom where the dedicated culinary team demonstrate cooking results from various appliances. Winning Appliances has collaborated with Williams Sonoma to feature their premium cookware and cooking utensils in the culinary centre. 16

Appliance Retailer December 2019

There are also exclusive appliance offerings from The Galley, Kalamazoo and Fhiaba, alongside state-of-the-art displays from leading brands including Fisher & Paykel, Gaggenau, Miele, Neff, Smeg and V-ZUG. The showroom has been designed to offer a homely aesthetic with furnishings and finishing touches encompassing the design of a contemporary home for customers to better visualise how the appliances will sit in their own home. The mezzanine level features three distinct lifestyle kitchens to reflect the needs, wants and personal styles of the most important customer segments. Winning Appliances CEO, John Winning thanked local architects, designers and supplier partners for welcoming the retailer to the Victorian market with open arms.

“Our Richmond flagship is an extension of the collaboration we have with the Michaels of Brighton team who have been here for decades, and we look forward to further expanding the Winning Appliances presence in Victoria this side of Christmas and hopefully opening our new Chadstone showroom by December. “It will be quite different to this as this is a flagship showroom with a full culinary centre in the middle, while Chadstone will be a taste of this, around half the size and 100 times the foot traffic. “For anyone who knows Victoria well knows that Chadstone shopping centre is home to all Victorians. 25 million people walk through those doors each year and we saw that as an obvious opportunity for us to introduce our brand and what we do at Winning Appliances to the

RETAIL PROFILE AR

Jim Kalotheos, Emer Zavaroni and Vittorio Bertazzoni (Smeg)

Victorian market by showcasing many of our suppliers’ brands within that location and also complementing what we have here in Richmond. “We don’t try and cookie cut the approach we do to retail, what we do try and do is cookie cut the service. We expect that every customer gets the Winning Appliances great oldfashioned service that we pride ourselves on. We are 113 years old and I am the fourth generation, the third generation is represented by my uncle Bill and my Mum and Dad and I’m very happy to have my family here to help celebrate what is a very proud moment for myself personally and my team that have put such an amazing effort into making what it is today.”

TRADE PARTNERS: WINNING APPLIANCES RICHMOND IS ‘THE BEST SHOWROOM IN THE WORLD’

Simon Taylor (Arisit), John Winning Snr (Winning Appliances) and Michael Doyle (Electrolux)

Rob Butchatsky (Asko) and Michael Jackson (Narta)

Narta CEO, Michael Jackson has described the Winning Appliances Richmond showroom as “the best showroom in the world”, when speaking to Appliance Retailer at the official opening. “Over the last couple of years when we go to the opening of a specialist showroom – whoever they may be – they are continuing to up the ante,” he said. “We should be proud that we have retailers in Australia that are the best retailers in the world. We get to travel the world, and to me this is the best showroom in the world. I don’t think we can even call it a retail store – it is a gallery and a place where people will be inspired. “Winnings will have to undertake a lot of work to build the brand in Victoria as E&S is a phenomenal retailer and it will be a challenge, but if this is anything to come by they should be very proud. In relation to Chadstone, and without seeing it yet I can only assume it will be another gallery-style showroom that is just 15 minutes away. They can use the traffic flow of 25 million people to inspire and then say to consumers: ‘let me take you 15 minutes down the road to the Richmond flagship showroom’.” Eurolinx, distributor of ILVE and Fhiaba, national sales manager, Tristan Peters echoed Jackson’s comments describing

Chris Kotis and Sjaak Brouwer (Miele)

ILVE Display in the Winning Appliances Richmond Showroom

Smeg Display in the Winning Appliances Richmond Showroom

www.applianceretailer.com.au

AR RETAIL PROFILE

John Winning Snr, Bill Winning, John Murphy and Kerrie Winning (Photo Credit: Jeremy Blode Photography)

AEG, Vintec and Electrolux Display in the Winning Appliances Richmond Showroom (Photo credit: Jimmy Logan)

Wayne Campbell (Smeg), Gerard Gill (Shriro) and Tristan Peters (Eurolinx)

John Winning and Jo Devery (Winning Appliances)

“

This store will attract the customer that wants the best of the best and makes a statement with their kitchen as a proud homeowner or as an entertainer – this is one of the places they will come.

”

the Richmond showroom as “the most impressive appliance store by far”. “The execution that we have achieved is the best representation of our brand and the roots of our business that we have ever done before. With ILVE, we have returned to our core strengths which reflects ILVE’s specialisation in custom made products with a custom colour palette. “Winning Appliances is synonymous with premium brands and a premium offer and as a result they were the logical choice as a partner for us to launch one of the world’s best refrigeration brands – Fhiaba – featured in three kitchens on the mezzanine floor of the new store representing different styles of consumers and personality types. “This store will attract the customer that wants the best of the best and makes a statement with their kitchen as a proud

Appliance Retailer December 2019

homeowner or as an entertainer – this is one of the places they will come.” Shriro divisional sales manager – Blanco, Gerard Gill said the Richmond showroom is the best he has seen in the country. “Melbourne has always needed a magnificent showroom like this featuring creative displays and concepts as well as a great range of sinks which should be a retailer’s most profitable part of their business,” he said. Miele Australia and New Zealand managing director, Sjaak Brouwer said the execution of the showroom is exceptional in every detail at a premium level in the market. “Winning Appliances keeps improving – but in general retail is improving, not only Winnings but other retailers as well. It is pleasing to see retailers making an effort which is important for both brands and retailers because the consumer is changing, and we have to find ways to excite them and offer that experience and this is an experience and retailing is all about experience. “This is one of the first stores featuring our new Generation 7000 series that is being rolled out to 400 stores nationally.” AR

FEATURE

Smart Home HOME SECURITY, SURVEILLANCE AND AUTOMATION PRODUCTS

AR SMART HOME

Consumers continue to embrace the smart home, but privacy remains key barrier

here are 53% of households with at least one smart home device, according to a recent BIS Oxford Economics survey on the Australian smart home market, with 7% of households owning a security surveillance system and 3% with video doorbells. Security surveillance system and video doorbell ownership increases with house size, peaking for households with four or more bedrooms. Survey respondents said security surveillance systems would be the second most likely future smart home purchase behind smart TVs. There were two types of respondents – innovators and laggards. The former was more likely to highlight positive impacts of smart homes, while the latter, was more likely to highlight negative implications. Respondents were asked to rate the importance of ‘embrace’ factors with energy efficiency coming out on top, followed by cost savings, added security and then remote access. As for ‘concern’ factors, cost was number one, followed by electronic intruders, reliable internet connection and then security risks. GfK POS data has revealed that over $2 billion worth of smart and connected

devices were sold in Australia in 2018 with smart devices accounting for 27% of technology sales in Australia in the year to July 2019. GfK recently conducted a Readiness Study surveying 1,000 consumers to gain insights into the IoT market across seven categories – including smart entertainment, smart domestic appliances and smart security and control – and 34 specific consumer devices. There were four key elements to the study – familiarity (awareness and understanding), interest (consumer acceptance), ownership (consumer buyin) and integration in day-to-day life (the new normal). From these elements, the study derived a Consumer IoT Readiness Score of 54 of a possible 100 with 0 being not ready or aware at all and 100 being fully prepared and engaged. Cost and privacy were named as key barriers to greater readiness at 29% and 20% respectively. This was followed by security (17%), lack of integration (11%) and ‘would not meet my needs’ (10%). Telsyte believes smart speakers have been the catalyst driving the overall smart home market growth with estimates that 20% of Australian

BY EMILY BENCIC

households are using at least one smart speaker, as at July 2019. “The affordable plug and play smart security solutions and starter kit bundling with smart speakers have been driving category growth,” senior analyst Alvin Lee said. However, Telsyte also recognised cyber security and privacy as concerns with Australian consumers cautious about monitoring devices such as smart cameras around their homes. “More complex smart security solutions such as smart locks that need professional installation have been less popular compared to plug and play solutions.” Telsyte’s Australian IoT@Home Market Study 2019 showed security as one of the most desired features to be automated. “We believe winning consumers’ trust is critical for the category’s success.” As for what’s next in the category, Telsyte expects more AI-based monitoring features such as advanced object and facial recognition to be built into smart cameras and video doorbells, in addition to more manufacturers offering cloud video recording subscription services. AR

THE EVER POPULAR 100% WIREFREE SOLO RANGE RANGE JUST GOT A LOT BIGGER

UNIDEN

National Marketing & Communications Manager Brad Hales The smart home category is constantly changing and adapting to meet consumer needs and demands, according to Uniden’s Brad Hales. Now it is more accessible and streamlined with many products compatible with Google and Amazon. “The market has changed significantly in only a couple of years,” he said. “Smart home used to only consist of security cameras, now it incorporates everything from security cameras with spotlights, to garden lights, sensors, door locks and even home appliances, for total control over the home.”

Uniden App Cam PT with Solar Panel `Full HD 1080p `Thermo Sense Technology `355-degree pan, 140-degree tilt design `Compatible with Google Assistant and Amazon Alexa RRP: $369.95

Hales believes security cameras are the dominant segment of the smart home setup and are becoming progressively sophisticated and smart in terms of design and technology.

“The Uniden App Cam Solo PT, an Australian first, is a rechargeable outdoor weatherproof pan and tilt wire free full HD camera, which includes a solar panel for continuous power supply,” he said.

Uniden’s wire-free home security range works with Google Assistant and Amazon Alexa and enables users to view footage with voice control via a smart display or TV using Chromecast, Chromecast Built-in or an Amazon Fire dongle.

“Pan and tilt cameras provide greater flexibility when installing and positioning around the home, while an ultra-wide viewing angle allows a greater viewing area via the one camera. The camera can be moved remotely via the app, which makes it a flexible option for users that need to cover all angles of the home. One camera can essentially cover the front and side of a house rather than a fixed camera solution, which would require two cameras to monitor.”

“Voice is considered the future of the smart home as it allows users to control and integrate devices throughout the home and will become increasingly utilised.” Hales said Uniden is performing well across all categories and its App Cam Solo+ 100% wire-free cameras will be expanded in late 2019/early 2020 with additional wire free products alongside App Cam Solo+ and App Cam Solo 4G.

Another new product in the range is the Uniden App Cam Solo Bullet wire-free Full HD camera. The Solo Bullet includes all features of the Solo+ range, including voice control and an included solar panel for continuous power supply.

UNIDEN PROMOTION:

In addition, the App Cam FloodLight is a powered camera and floodlight in one. Featuring a bright 2,500 lumens light source and 135-degree wide viewing angle.

Consumers who purchase an App Cam Solo+ twin, triple or quad pack will receive a bonus Uniden solar panel, valued at $79.95, until 31 December 2019. Uniden will also continue its nationwide radio campaign including the Drive Time Show with Ben Fordham.

INDOOR/OUTDOOR

Uniden will also add to its BabyWatch range with two smart baby monitors in time for 2020. AR

OUTDOOR

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AR SMART HOME

“

While growth levels are strong, total category penetration is still small as a percentage of all households in Australia.

ARLO

”

Vice President & Managing Director Brad Little Arlo’s Brad Little said the smart home category continues to experience accelerated growth with increasing interest from consumers who can see how smart devices can add genuine value to their everyday lives. “Category growth in Australia is outstripping the US, although the market is a little more mature over there. We are still in the early adoption curve with less market penetration but there is huge potential to grow customer awareness and customer engagement,” he said. Seasonality is a huge factor with key selling periods including Mother’s Day, Father’s Day, End of Financial Year and Christmas, experiencing massive spikes, but interestingly Little said products are not always purchased on a need basis like most other technology products. “There is a real emotional attachment to what is recorded, whether it is kids coming home from school or a package being delivered,” he said.

ARLO PROMOTION:

With the purchase of any Arlo Pro 2 or Pro 3 Camera Kit until 31 December, 2019, customers will receive a bonus Philips Hue White starter kit valued at RRP $149 via online redemption.

Arlo Pro 3 Wireless Security Camera Two-Camera Kit `Two-way audio `Integrated spotlight `2K Quad HD video with HDR `160 degree viewing angle RRP: $949

“At Arlo, there is strong demand for personal video monitoring and home security due to the flexibility and DIY nature of these product categories, along with their ability to work seamlessly with voice assistants.” However, category awareness remains an issue for both manufacturers and retailers. “While growth levels are strong, total category penetration is still small as a percentage of all households in Australia. We find as category awareness grows, consumers see the obvious category benefits, and this then translates to increased sales.” When it comes to home security cameras, the most important feature is image quality with maximum resolution (2K or 4K), field of view, colour accuracy and the ability to adjust in changing light conditions. “These capabilities enable consumers to pick up critical details when they are needed the most, but also allow greater flexibility for where cameras can be placed, and most importantly lets users respond most accurately to what they are seeing. HDR can offer more colours and contrast in low light and very bright lighting situations. Colour night vision is adding a whole new dimension to details that went unnoticed before.” AR

Appliance Retailer December 2019

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AR SMART HOME

“

A coherent approach from retailers with bundles or packs of products sold together will improve floor margins and the end-user experience.

”

With this in mind, Laser has introduced a new sub-brand, Connect Smart Home, with a strong roadmap of more affordable and easy to use technology to drive category longevity.

Laser Connect Smart Doorbell with Camera `720p HD image resolution `Built-in microphone and speakers `Existing doorbell not required `Live view on-demand and instant alerts via smartphone RRP: $129

LASER

Managing Director Chris Lau While the smart home category has been around for several years now, Laser’s Chris Lau said indications point to 2020 being the year that it will reach new heights. “The rise of Google and Amazon smart speakers deliver both a high-quality experience and an easy way for consumers to start dabbling in the creation of a smart home, growing from there,” he said. “Such proliferation of smart speakers, many of which have been sold at low price points, introduces a wide range of consumers to the category. As such, there is a significant opportunity if affordable but easy to use smart home devices are widely available.” 24

Appliance Retailer December 2019

Laser pinpointed three key trends within the smart home category. Firstly, the rapid growth of voice assistants. “This enables consumers to set up ‘scenes’ – combinations of devices working together to carry out an instruction. However, battery life needs to be improved for wireless sensors, cameras and access controls, but we see this being the next big area of improvement,” Lau said. The second trend is a coherent approach from retailers with bundles or packs of products sold together to improve floor margins and the enduser experience. “Led by Best Buy US, the instore experience for consumers must allow choice and options, all guided by well-trained floor staff.” And the third trend is customer expectations around product, promise and experience. “With light bulbs getting cheaper, consumers are asking what else they can engage with. Voice-enabled assistant penetration is growing rapidly – and therefore, the trend will be with add-on devices for consumers to make better use of the speaker and fully realise its potential.” However, floor-staff training, in-store execution and consumer education is vital to the category’s continued success. “A poorly executed demonstration from insufficient stock levels, lack of choice or lack of price point options, means loss of potential sales and disillusioned customers.” As for the future of the smart home category, Lau believes the new battlefront will be access control and door entry, which is where its new Connect Smart Home offering comes in. AR

SWANN

Vice President – Global Marketing Jeremy Stewart Swann’s Jeremy Stewart said consumers are now realising the convenience and peace of mind that smart devices bring to their everyday lives, and therefore it is an exciting time for both manufacturers and retailers to embrace the smart home category. “The technology in the smart home security space has evolved significantly in the past few years and it’s rewarding to be part of an industry that is making this technology affordable and available to everyone,” he said. The strongest category trend is a shift towards preventative security designed to catch crime before it even happens. For example, security systems that have cameras with spotlight and floodlight capabilities and sirens that turn on when motion is detected. “This combined with two-way audio, where users can talk to people on their property remotely, creates a powerful deterrent that prevents unwanted intruders. Because these systems are built to be seen and controlled remotely, users can also conveniently turn the lights and sirens on and off manually in an app.” However, privacy of data and video content remains a key challenge with consumers questioning where their data is stored, who has access to it and what happens if devices are

lost or stolen. In response to these questions, Stewart said, “By choosing a reputable brand with equipment that has encrypted data, in combination with a strong password strategy, the risks can be minimised.” Another area of concern is around cost with a perception that smart products are too expensive, but Stewart said smart security has become more affordable, and, can often pay for itself within the first 12 months of ownership. Consumers are also concerned about compatibility and interconnectivity of technology. “Swann’s line-up is integrated with both Google Assistant and Amazon Alexa to make things easier for consumers that already have either of those digital assistant/voice platforms installed,” he said.

“

The strongest category trend is a shift towards preventative security… systems that have cameras with spotlight and floodlight capabilities and sirens that turn on when motion is detected.

”

When asked about technology to watch, Stewart described multi-layered detection capabilities such as facial recognition, line crossing and perimeter intrusion as “true game changers” when it comes to home security and automation. “Facial recognition enables home-owners to not only recognise faces (and attach specific names to faces). Other analytics such as vehicle detection can alert users when there is a vehicle on their property that shouldn’t be. Other types of alerts of analytics to watch include parcel detection, to counter the growth in porch piracy, as well as pet detection.” AR

Swann Wi-Fi Outdoor Spotlight Camera

`Colour night vision `Full HD 1080p video `Heat and motion sensor `Accompanied by new Swann Security app RRP: $189.95

www.applianceretailer.com.au

AR SMART HOME

D-LINK

VTech 18750 Executive Cordless Phone with VSmart

Managing Director Graeme Reardon

`SOS help button on handset `Location free (standalone) base for NBN households `Calling Number Display capable with Call Guard to block unwanted calls `30 minutes answering machine record time with slow playback function

The smart home category is in the next phase of growth for many retailers with the likes of JB Hi-Fi and Bunnings investing heavily in physical space to showcase the latest products and services across multiple brands, according to D-Link’s Graeme Reardon.

RRP: $129 (two-handset pack)

“Voice-enabled products continue to drive the market. However, we have also seen growth in adjacent products that fit into a voice-enabled ecosystem. As an example, managing and viewing live and recorded footage from a D-Link Omna wire-free camera system using voice from a connected Alexa Show or Google Hub.” However, D-Link has observed an influx of cheap, imported products entering the market from non-reputable suppliers. “Due to the nature of smart home products, these suppliers have access to data, voice recordings, usage patterns and even video feeds, and end-users have virtually no idea what is done with this information. In essence, data privacy and security is an area that has not really been tested by specific cases at this stage, but we think it will become more of an issue in the future,” he said. On a more positive note, Reardon named ZigBee technology, which promotes low power and longer battery life, within door and window sensors and motion detectors as one to watch. “Providing ‘trigger’ points for other smart home devices around the home or small office. Similarly now as at many offices, it’s relatively easy to enable a home to turn off the lighting when no movement is detected for a certain period, or for sprinkler systems to stop watering if rain is detected in the next 24 hours, helping households to be more environmentally conscious as well as smart.” AR

VTECH TELECOMMUNICATIONS D-Link Omna Wire-Free Indoor/ Outdoor Camera Kit

`Full HD video recording `Night-vision `Bonus 12 month premium cloud recording `Compatible with Amazon Alexa, Google Assistant and IFTTT RRP: $799.95

Managing Director Mark Franklin

VTech’s Mark Franklin said the integration of home monitoring, safety and security devices with the traditional home phone has become a global trend. “Both users and service providers are seeking to get more out of their traditional phone service than simply voice calls, especially with increasing penetration of the NBN into homes,” he said. When it comes to category trends, Franklin was quick to point to genuinely integrated solutions, as they deliver home monitoring, safety and security all-in-one. However, he said the surge in devices from brands “trying to get a piece of the smart home pie without any real thought of consumer benefit” continues to be a challenge for manufacturers. Moving forward, VTech will continue to focus on location-free base home phones which allow users to connect their cordless base station to the voice service access point in the home. “This is ideal for any situation where the voice service access point is located in the home and having a handset may not be convenient, especially when connecting to the NBN. Built-in VSmart technology lets users pair lifestyle accessories to their phone system.” AR

Appliance Retailer December 2019

FROM THE FLOOR

“

Security products can often be how a customer begins their smart home journey…we find these products help build confidence with customers who then look to explore the range further.

” BUNNINGS

Nathan Monk

ecurity and lighting products continue to show good growth within the smart home category, according to Bunnings buyer, Nathan Monk. “Security products can often be how a customer begins their smart home journey, purchasing a smart doorbell, security camera or light. We find these products help build confidence with customers who then look to explore the range further. Smart home products also have the ability to make everyday life easier, especially for the elderly and those with disabilities,” he said. When shopping for devices for their smart home, customers want products that are easy to set up. “The market is becoming even more accessible to every household as the technology evolves and products become much more affordable. This accessibility

allows customers to integrate these products easily when completing a larger household project. For example, fitting every room with smart lightbulbs is much more affordable than it was a year ago.” As for category challenges, Monk said retailers need to adapt quickly and keep up with the fast pace of technology evolution. “A consideration for customers is internet usage and speed to power smart products in the home. Larger houses and properties may have internet ‘dead spots’, so customers may need to look into range extenders or mesh network systems to streamline usage.” The Bunnings smart home range includes lighting, security, home accessories and garden and watering products suitable for customers just starting their connected home journey and seasoned experts. AR www.applianceretailer.com.au

Educating benefits essential to the sale BY KYMBERLY MARTIN

Appliance Retailer December 2019

he liquor industry is expected to grow over the next five years largely on the back of increasing consumer demand for higher value, premium beverages, according to IBISWorld. The main growth drivers include a strengthening retail environment, further growth in premium categories and rising at-home consumption of wine, spirits and premium beer. Consumers are projected to make more planned alcohol purchases online over the next five years, with more attention paid to selection and price. Demand for wine cabinets will primarily be driven by robust consumer demand for high-quality wines, according to a report from XploreMR. This is a result of increasing awareness about products via media, in-store tasting and wine clubs. When it comes to the domestic wine market in Australia the top selling varieties are: Sauvignon Blanc, Shiraz, Sparkling White, Cabernet Sauvignon and Chardonnay. AR

WINE CABINETS & BEVERAGE COOLERS AR and wine. Smeg wine cellars inspire a love of artistry, the artistry of fine wine and there are two complementary trends that reflect this,” he said. These are new home and apartment builds offering a wine storage solution as a standard inclusion and consumers renovating who are integrating wine cellars as part of their kitchen design, to seamlessly match other compact products. To satisfy demand, Smeg offers compact and underbench wine storage solutions on both Dolce Stil Novo and Linea collections. As more consumers consider adding wine storage, the need for education on correct cellaring conditions is fundamental to making the right product selection, Wolf said. “Smeg’s offering is made to exacting standards; UV resistant glass, minimal vibration, air purification and humidity control are just some of the key features required when cellaring precious wine.”

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The category is growing in terms of both products and brands however there are only a few specialists in this field focused on precise storage of premium wines.

SMEG

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For the true wine aficionado, Smeg offers a sommelier drawer to complement the wine cellar. It is equipped with quality tools for serving, storing and recording precious wines including wine funnel with filter, thermometer, vacuum wine saver, antidrip pourer and premium corkscrew sommelier. The custom-made drawer, housed in pure oak, is the ideal companion to a wine cellar. AR

Smeg Dolce Stil Novo Underbench Wine Cellar CVIA638RN2 `Layered UV resistant glass `Housings for different shaped bottles `External temperature control for precise storage conditions RRP: $4,990

Leon Wolf National Product & Procurement Manager The trend towards alfresco dining has seen consumers seek refrigeration and wine storage solutions for their favourite wines and other beverages within the entertainment space. The category is growing in terms of both products and brands however there are only a few specialists in this field focused on precise storage of premium wines, according to Smeg’s Leon Wolf. “Much like the Italians, a growing number of Australians use their kitchen as a space for entertaining friends and family with fine food www.applianceretailer.com.au

AR WINE CABINETS & BEVERAGE COOLERS

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While acknowledging category growth, consumer education is required and not an assumption that a purchase will be made.

EUROLINX

Daniel Bertuccio Marketing Manager

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Hisense Wine Cabinet HR6WC30 `Reduced noise up to 39dBA `Wooden shelves and full glass door `Variable temperature levels/single temperature zone RRP: $499

According to Daniel Bertuccio, products made for alfresco areas includes all outdoor refrigeration solutions, which are predominately beverage centres. “We are also seeing a strong trend toward customers integrating a wine cellar in the kitchen planning for their ready to drink wines,” he said. “The drinking culture and climate in Australia is tailor-made for wine and beverage products to thrive and with alfresco dining going from strength to strength this can only help. There is growth opportunity and this is a category that should be an easy add-on to most appliance package sales.” While acknowledging category growth, consumer education is required and not an assumption that a purchase will be made, he said. “We are excited about our outdoor beverage centre, the Artusi ABC1B, which is our hero product in this category with features including party mode and super cool -5°C temperature feature.” AR

HISENSE

Andre Iannuzzi Head of Marketing

Artusi Outdoor Beverage Centre ABC1B

`Demister door `43°C ambient temperature operation `Party mode and super cool -5°C temperature feature. RRP: $1,199

Australians are increasingly looking for wine cabinets that aesthetically complement their home entertaining spaces. For Hisense this means providing customers with a cost-effective option that is visually pleasing, boasts storage space and, most importantly, is effective at preserving wine. “This category is important for Hisense and we continue to look at potential new choices in the beverage cooler space for Australian customers,” Andre Iannuzzi said. Consumers want absolute control over the appliances in their home, while maximising efficiency and useability. Second fridges, in the way of wine cabinets and bar fridges, are fast becoming a staple of Australian homes, reflecting our love of entertaining and socialising, he said. “While style and aesthetics are important factors, consumers want wine storage solutions that offer variable temperature levels to adapt to the specific cooling requirements of the wine. We have recently seen an uptick in the popularity of our wine cabinets that feature dual temperature zones, which allow users to store different types of beverages at different temperatures. Users can also conveniently monitor and adjust temperature levels to suit their tastes.” However, he said it was important with any wine cabinet that technology doesn’t overshadow storability. “Our 30-bottle wine cabinet has a large capacity, providing sufficient space for storage of beverages while offering accessibility and seamlessly blending into the user’s home with its sleek, compact design.” AR

Appliance Retailer December 2019

LIEBHERR

Andrew O’Brien National Sales Manager The wine storage market is still relatively young and niche but is seeing growth, according to Andrew O’Brien. And as consumers’ education grows and people gain a better understanding of the need to store wine correctly, the desirability, and practicality of owning a wine cabinet continues, he said. “Built-in wine cellars are a growing feature in homes as people integrate their wine storage into their kitchen or dining areas. To this end, the physical design, particularly to built-in and handleless, is becoming almost as an important consideration as the product features which help to store the wine in the correct environment.” He too made the point that a focus on educating the consumer is important. “Properly stored wine continues to develop its natural flavour in the bottle and, on reaching peak maturity, the wine will be deeper and more complex. For a good character wine, consistent storage conditions are prerequisite for long-term storage,” he said.

Miele Built-Under Wine Conditioning Unit KWT 6321

`LED dimmable lights `Temperature zones with individual controls `Active AirClean filters prevents odours inhibiting wine RRP: $4,299

“Correct storage conditions, such as constant temperature, air quality, minimal physical disturbance from door closing and the compressor should all be communicated to the customer in a meaningful way.” AR

MIELE

Melissa Taylor Product Manager – FashionMaster & Care With the number of cellars across the country continuing to increase so does Australia’s appreciation for wine at home, according to Miele. “As the passion for wine and understanding of how to properly maintain storage at home is evolving, our customers are looking to include wine conditioners in their new or existing kitchens in order to create the ideal conditions for their wine,” Melissa Taylor said. “We are seeing increased demand for products that feature correct storage temperatures, horizontal storing to prevent corks drying out and shrinking as well as ways to eliminate extraneous odours and light that can be harmful to wines.”

Liebherr Wine Cellar EWTgb 3583 `Tip-open door mechanism `Double-glazed tinted glass door `Two independent temperature zones (5° to 20°C) RRP: $8,499

The current challenge facing the category is lack of understanding and awareness around how to create the best storage conditions for various wines. “As there is an abundance of wine ‘coolers’ and wine ‘conditioners’ on the market it is vital to help our customers understand the difference and benefits of wine conditioners. If they are serious about preserving the quality of their wine collection, they should be investing in a wine conditioner to control temperatures and store bottles correctly for the optimal results.” AR www.applianceretailer.com.au

AR WINE CABINETS & BEVERAGE COOLERS

“

Feedback from our customers suggests convenience and continuity of product supply to meet different applications are major drivers for this category. TECO

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Dave Gray National Sales Manager – Home Appliances The beverage cooler category gets stronger year-on-year through continual growth with support from retail partners and being specified through the commercial sector, according to Dave Gray. “Feedback from our customers suggests convenience and continuity of product supply to meet different applications are major drivers for this category,” he said.

Heller Cooler Cart ACC80

With almost 40 years in the Australian market, TECO continues to develop its home appliance offering that includes bar fridge solutions for most applications and budgets. The range features 47 litre benchtops to 75-134 litre under bench models plus a first-to-market 85 litre two-door bar fridge with separate freezer in white, black and stainless.

`Water drainage tube `In-built bottle opener and cap bin `80 litre capacity fitted with two lockable wheels RRP: $249.95

GAF

Tim Kendall Sales Manager

“Our hero product within the range is the 117 litre bar fridge in white or stainless look with recessed handles that is designed to fit under most benchtops.”

Australia’s love affair with outdoor entertaining has led to the growth of all-weather alfresco entertaining areas. “Paired with an enjoyment of wine this has meant a greater appreciation, knowledge and understanding of how to best keep and serve these beverages,” Tim Kendall said.

TECO recently launched a new website that carries a preferred dealer locator on each product page. AR

TECO Bar Fridge TBF117SMDE

`Internal ice box `Drink can dispenser on door `Reversible doors with glass shelves and internal light RRP: $349 32

Appliance Retailer December 2019

Heller offers a wide range of bar fridges, wine and beverage coolers. The most recent is the 90 litre RBFH90 bar fridge in a red or black retro design. Features include a freezer with two shelves, a can dispenser and in-door storage. Another recent addition is the Heller HBC98 beverage cooler with a reversible door in a 98 litre capacity along with the updated two-door under bar fridge the HUB210 for alfresco entertaining. Kendall said a big seller during the BBQ season is the Heller ACC80 alfresco Cooler Cart which is essentially an ice chest on a trolley with an 80 litre capacity. A mainstay of the Heller range is the HIM10 compact benchtop ice maker that produces up to 10kgs of ice every 24 hours and comes with a removable ice bucket and LED touch controls. AR

Status Plus Cairns, Queensland Rod Busoli

FROM THE FLOOR

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Despite the rise in online shopping, customers looking to purchase big ticket appliances like wine cellars are more likely to seek advice and buy locally rather than online.

”

ore consumers are showing interest in wine cabinets with more information now readily available through cooking shows and travel shows on TV about how to look after wine properly, according to Status Plus sales team leader and kitchen design consultant, Rod Busoli. “The preference seems to be towards wine cellars that can manage more than one temperature, either in the same cabinet or in two door systems offering different temperatures. This means both red and white wines can be stored at the relevant temperatures required for either serving or long-term storage,” he said. When asked about new technology entering the market, Busoli said he was pleased to see German brands such as Liebherr developing compressors and systems that sit directly under

the fridge to allow a much tighter fit between cabinets and this creates more usable space in the cellar itself. Despite the rise in online shopping, he said customers looking to purchase big ticket appliances like wine cellars are more likely to seek advice and buy locally rather than online. “Many consumers have suffered the consequences of buying online and realised there is no support after the fact. The aftersales support is something that Status Plus offers in abundance during and even after the product warranty has gone,” he said. As for promotional activity, Busoli believes this is more useful for brands that are not as well known to consumers and getting their name out to a wider audience through television and radio. “This then creates interest for them to go out there, have a look and potentially buy.” AR www.applianceretailer.com.au

AR MICROWAVES

Microwaves remain the beloved kitchen staple BY EMILY BENCIC

hree quarters of consumers (75%) use their microwave daily with 45% using it more than their oven or cooktop, according to a recent Canstar Blue survey. Australian consumers who were surveyed spent an average of $208 on their microwaves but almost one-in-five respondents (18%) wish they had spent more on a better microwave. Price was considered the most important factor in the purchase decision (45%), followed by size and appearance (18%), ease of use

Appliance Retailer December 2019

(13%), brand name (9%) and special features and energy efficiency (6%). Further, 41% of respondents said they bought their microwave to complement other appliances along with their overall kitchen aesthetic. The 2019 Canstar Blue Award for Microwave Ovens was awarded to LG, scoring five stars across all categories including even heat distribution, value for money, ease of use, cooking functions, ease of cleaning, appearance and design and overall customer satisfaction. Samsung was awarded second place and Sharp came in at third. AR

Smeg Classic Speed Oven SFA4395MCX

KITCHENAID

`Ever Clean enamel that is highly durable and easy to clean `50 SmartSense Plus auto menus for step-bystep guide to cooking `Also available in Smeg’s Linea, Victoria and Dolce Stil Novo collections `1000W microwave power and 50°C to 250°C convection temperature range

Product Manager Ming Liu Microwaves remain a kitchen staple and essential appliance for time-poor consumers, according to KitchenAid’s Ming Liu.

RRP: $3,450

“Microwave ovens can now do everything from simple tasks such as defrosting and reheating to more complex tasks like grilling, baking, steaming and crisping.” However, Liu said the category is becoming increasingly competitive and challenging with more new apartments and houses now equipped with built-in microwave ovens, while entry level brands are continuing to improve and expand their product feature sets. As for technology to watch, Liu said inverter technology is key as it promotes energy efficiency without compromising food texture or flavour and cooks food evenly and thoroughly. The hero product from KitchenAid is the Bake Assist microwave oven as the ideal companion to the KitchenAid Stand Mixer. Inspired by the iconic KitchenAid design, it not only assists with defrosting, cooking and reheating but can also soften butter, melt chocolate, and bake the perfect cake. Key features include 6th Sense Crisp and Bake to optimise cooking time and performance according to the ingredients, 3D microwave distribution system for even heat circulation, Forced Air/ Oven Mode for cooking results comparable to a traditional oven, Auto Clean cycle to help clean the cavity and remove odours and Keep Warm function for 30 minutes after cooking. AR

KitchenAid Bake Assist Microwave KMW276ASL

`33 litre capacity `Easy access drop-down door with horizontal handle `Pre-programmed recipes for Bake Assist, Chef Menu and Crisp Fry `Dual steam means two different foods can be steamed simultaneously without mixing flavours RRP: $999

SMEG

National Product & Procurement Manager Leon Wolf Smeg’s Leon Wolf said the microwave category is maintaining growth with increasingly time-poor consumers looking for appliances that can prepare fresh food quickly and easily, as well as reheat ready-made meals – a market now valued at $600 million with annual growth of 3.6% over the past five years, according to IBISWorld research. “Consumers are looking for versatile, multitasker appliances, and this is where Smeg’s speed oven comes in as a three-in-one appliance – convection oven, microwave oven and speed oven,” he said. “Consumers are also seeking reduced cooking times without any impact on taste and texture. With three cooking levels, it is possible to prepare an entire meal at the same time in Smeg’s speed oven. Smeg also meets demand for integration of appliances into cabinetry for a seamless look and to free up bench space with its speed oven.” However, Wolf said there is an opportunity to further educate consumers on microwave technology. “Smeg’s speed oven offers 18 cooking functions and up to 50 SmartSense Plus menus covering all types of foods including vegetables, meat, fish, pastries and frozen food.” AR www.applianceretailer.com.au

AR MICROWAVES

SHARP

Head of Marketing & Business Planning Halim Saliman Sharp’s Halim Saliman said microwaves have been a consistently stable category and there is potential for growth with the trend toward total home connectivity. “Last year, we introduced the Sharp Smart range R350E, R395E and R890E series with digital LED display, Smart Auto Menus and Favourite Key, as ease of use continues to be a key category trend. We expect this to continue with more consumers conscious of the latest technology such as connectivity to improve their everyday lives.” Despite this, many consumers are still under the impression that microwaves can only be used for reheating food. Therefore, education of product features and functionality is important. “Consumers need to understand the full extent of microwave capabilities such as defrosting and cooking,” Saliman said. Moving forward, Sharp will be investing in the development of smart connectivity technology for its microwave range designed to suit all lifestyles. AR

Sharp Convection Microwave with Inverter Technology R890EBS/ST `Fan-forced convection `Smart Inverter technology `Seven digit white LED text display `1100W microwave output power RRP: $449

LG NeoChef 42L Smart Inverter Microwave MS4296OMBS `Anti-Bacterial EasyClean interior coating `Stable turntable with six support points `Healthy Fry feature reduces the amount of fat after frying `LED lamp brighter and more energy efficient than other LG microwave ovens RRP: $389

LG ELECTRONICS

Senior Category Manager – Home Appliances Brad Reed Since launching the NeoChef microwave oven range in 2017, LG has continued to perform strongly in the category with a focus on premium design and functionality, according to Brad Reed. “Consumers are looking for cooking appliances that add convenience to their busy lifestyle and LG has a wide portfolio of designs and models at competitive price points.” Reed said microwaves must offer a range of cooking capabilities to prepare meals in an efficient and healthy way and be packaged in an aesthetically pleasing design. “With an Anti-Bacterial EasyClean internal surface, food can be prepared swiftly and safely with the NeoChef microwave. Smart Inverter technology evenly defrosts, cooks and reheats food, as well as more versatile tasks such as proof yoghurt and pop popcorn. Sleek design features include simplified controls, a single piece of glass on the door and a matte black finish,” he said. As microwaves advance, consumers need to be aware that microwaves can do more than reheat. “Microwaves can now bake, grill, steam and defrost and a convection microwave cooks like an oven, but at microwave speed. With the capability to act as a standard microwave, consumers can also cook a pizza or bake a cake with a convection microwave.” AR

Appliance Retailer December 2019

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Counter space is now at a premium and Panasonic has responded to this trend with new combination microwaves that house the fan inside the top, rather than at the back, to decrease overall footprint.

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PANASONIC

Further to this, microwaves are becoming smarter, taking the guesswork away from cooking and reheating time. The Panasonic Genius Sensor monitors humidity levels to achieve optimal heating and cooking results with Auto Menus that mean the user does not have to select power, time or weight.

With changing cooking habits and the growing popularity of cooking TV shows, consumers are more willing to invest in a range of appliances for the kitchen, including the microwave, Panasonic’s Samantha Dawson said.

Panasonic has been manufacturing microwaves for 30 years and claims to be the best-selling microwave brand in Australia. AR

Product Marketing Manager – Microwaves Samantha Dawson

Dawson cited market research from McCrindle that found Australian consumers are cooking more often with 74% preparing five or more of their seven weekly dinners at home. “A key trend driving the microwave category is convenience with consumers looking for time-saving and versatile features that enable combination cooking, one-push reheat and preprogrammed menus.

Panasonic 34L Inverter Combi-Microwave Oven NN-CD87KSBPQ

`Specialised Genius Sensor `New slimline design to free up benchtop space `Convection, grill and combination cooking functionality `Junior menu feature with seven options designed for children RRP: $769

“There is also increased demand for fresh and healthy meals that can be achieved using Inverter technology which controls power more precisely, cooks food gently and evenly and preserves nutrients in the food. “Counter space is now at a premium and Panasonic has responded to this trend with new combination microwaves that house the fan inside the top, rather than at the back, to decrease overall footprint, while maximising internal capacity. Flatbed technology removes the turntable for a larger and more versatile capacity,” she said. www.applianceretailer.com.au

AR MICROWAVES

GAF CONTROL

Sales Manager Tim Kendall GAF Control’s Tim Kendall said microwaves have come a long way since entering the domestic appliance market in the late 1960s, from high-tech food warmers to a kitchen staple that can bake, roast, steam, defrost, grill and more. “Microwaves are the epitome of convenience and as a kitchen staple, category performance is consistent with a rising population and growth in home delivered pre-prepared meals,” he said. Kendall said the advent of steam cooking is making its way into the category as a major trend; however, the functionality is unlikely to be introduced by GAF as it is often only found in higher end products. “Another category trend is the growth in the Internet of Things (IoT) which is likely to be the next key development for microwaves,” he said. GAF operates in the value end of the market with competitive price points and a value for money proposition with its Heller and Tiffany microwave models. The top of the range Heller 30 litre microwave oven HMW30SG features 1000W power plus another 1000W grilling power, along with touch controls, 10 power levels and defrost function. The Heller 25 litre microwave oven HMW25B features 900W power, 10 power levels and defrost function. The hero product for GAF is the Tiffany manual microwave oven. It is one of very few manual microwaves on the market. AR

Blanco Built-In Microwave BM32CX

`10 power levels `10 auto cook options `Speed to touch cook `Anti-fingerprint stainless steel RRP: $599

Tiffany 20L Manual Microwave MW20M

`700W `60-minute timer `Six power levels `Defrost function SRP: $119.95

SHRIRO

Senior Product Manager – Kitchen Appliances Michael Sultana Shriro’s Michael Sultana said microwaves continue to be an in-demand appliance for space conscious kitchens with the rise of apartment living, and consumers who want to cook a wide variety of meal types. “Microwaves need to be able to do more than cook on a heat setting for a set amount of time. Auto cook functions are a great way to tailor the microwave experience for foods that need to cook and grill, alongside the traditional heat up method,” he said. Sultana suggested that steam and compact ovens with the latest technology and design pose somewhat of a threat to the more traditional microwave oven, although more traditional models win in size and versatility. He said technology often only found in fullsize ovens is making its way into microwaves, particularly with the rise of the auto cook method. The Omega built in microwave model OMW34X is ideal for complementing other appliances in the kitchen, particularly for studios or small apartments with limited space. Featuring a large 34 litre capacity, this microwave includes 10 auto menu options, grill function and multi-stage cooking plus an easy-to-read red LED display. This microwave is part of an offering which includes the OM30X standard microwave and OM30CX convection microwave that can be either freestanding or built-in with the Omega Appliances OTK30MX trim kit. AR

Appliance Retailer December 2019

FROM THE FLOOR

Betta Home Living Toowoomba, Queensland Chris Kemp

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We have been selling more stainless steel and darker model microwaves as consumers are matching their microwave to their other appliances.

”

he microwave category provides consistent and steady sales for retailers, according to Toowoomba Betta Home Living franchisee, Chris Kemp, as there is always a replacement market and with the development of combi-style ovens, there will always be demand for this style of product. “We have been selling more stainless steel and darker model microwaves as more consumers are matching their microwave to their other appliances and cabinetry,” Kemp said. “Consumers are also purchasing more in the mid-range, not just the cheapest on the market.” Despite this, price and promotion can help consumers make their final decision. “They will often choose a microwave attached to a promotion over another model in the same price range that isn't in the catalogue or promoted with a giveaway,” he said. But the key features that consumers consider when shopping for a new microwave is cavity size and ease of use, along with a reputable brand. “Not many consumers are

concerned about extra menu options, as long as the basic use of reheating for a certain time is easy to navigate.” As for the split between in-store and online purchases, Kemp said consumers continue to research online but the majority still contact the store to find out if it's in stock and then come in store to make their final purchase. “Consumers still want to see the product in person to make sure they are happy with it.” Betta Home Living Toowoomba is in the process of updating its entire kitchen display to incorporate more of the premium cooking brands accessible through the Designer Appliances brand, recently unveiled by the BSR Group. “This will mean we are able to offer and showcase more of the premium brands in microwaves that we do not currently offer on display. We will also have more of the integrated range in microwaves that will be displayed to fit in with the matching cooking appliances so the consumer can complete their overall look for their kitchen,” he said. AR www.applianceretailer.com.au

AR RETAIL INSIDER

The Many Moods of Modern Marketing Retail marketing is super important in today’s fast-moving, ever-changing, ultra-competitive, technology-driven world. It is the process by which retailers promote awareness and interest of their goods and services to stand out from the crowd and generate sales. There are many different approaches and strategies retailers can use to market their goods and services, and it’s important to be on top of current trends and have a clear understanding of who your customer is and how to best convey your message to them. REMAIN RELEVANT

For retailers, marketing is an important business tool designed to bring in customers, and it’s much more than just plastering information on a Facebook post. Like all aspects of running a business, you must continually assess and evolve your marketing strategy in order to remain fresh, relevant and successful. Regardless of how much experience you have running a business, developing a well-researched marketing strategy helps provide a greater return on investment while attracting more potential customers and driving more sales.

EMBRACE TECHNOLOGY

Technology has a growing influence on retail marketing and this trend will continue in the years ahead. A decade from now, your retail marketing will depend even more on modern technology so embracing emerging trends not only establishes you as a trendsetter, it helps future proof your retail marketing platform.

BE MOBILE

The need for a mobile website and mobile marketing is an increasingly important element in modern marketing. As more Internet searches are now performed on mobile devices than a laptop or desktop computer, it illustrates the value of creating marketing material for smartphones.

WHICH MARKETING CHANNEL?

In years past, you'd go to an advertising company, explain your product/s, they'd generate an ad campaign and publish it via relevant platforms. This is no longer the case. There are dozens of marketing channels, ranging from catalogues, social media, internet paid advertising, blogging, internet videos, TV and radio ads, and so on. You shouldn't just create an ad and toss it into a paid advertising campaign, as you need to understand 40

Appliance Retailer December 2019

each channel before engaging it. The better you understand each marketing platform, the more effective your campaign will be. You can engage a third-party advertising firm to assist, or utilise your own marketing professional. Either way, you need to understand each channel and which ones best suit your business, your product and your needs.

FIND THE HOOK

Every effective marketing campaign begins and ends with a story; the hook is designed to grab your target audience’s attention and lure them in. This story typically focuses on an individual who fits into your company's key demographic. It presents a relatable situation faced by people within your target audience, and takes them on a journey, showing how the product or service can improve their lives.

SEND A CONSISTENT MESSAGE

There’s every chance you’ll advertise across multiple marketing channels so it’s imperative to have a unifying message, which is constantly down to the individual product level. How you position your products across all your marketing channels needs to be consistent with pricing, brand logos, technical specifications, as well as additional text, images and messages.

PRE-PLANNING PREVENTS POOR PERFORMANCE

A big mistake in marketing is focusing specifically on selling. Instead, focus on branding and telling the right story, and the product will sell itself. By following these essential elements of a modern retail marketing strategy, you increase your potential of success. The more time you put into the pre-planning phase of your advertising campaign, the more success you’ll enjoy. AR

BEST SELLERS FOR CHRISTMAS AR

Whirlpool CrispFry 25L Microwave MWCF25BK

Fast and efficient, the Crisp n Grill prepares food three times quicker than a traditional microwave. Generating powerful airflow, which delivers even cooking results, pastries will remain perfectly crispy whilst cooking in a fraction of the time of an oven. A chameleon in the kitchen, this is the only microwave on the market to: `Microwave `Quartz grill `Crisp ‘n grill `Crisp fry through forced air for healthy and crunchy frying `Convection cooking (fan forced heat) 03 9768 0888 / www.whirlpool.com.au

Uniden iGO Cam 85R

Capture accurate and detailed footage in true 4K definition while driving long distance or on the daily commute. Features include ultra 4K resolution, Full HD rear-view dash cam, 160 degrees ultra-wide viewing angle and powered by a supercapacitor for longer lifespan and wider range of operating temperatures. `2.4-inch LCD colour screen `Safety and driver assistant features `Built-in Wi-Fi with access via Uniden iGO app 1300 366 895 / www.uniden.com.au

BORA – The end of the extractor hood

BORA extractors are integrated into the worktop and draw vapours downwards from where they rise. The BORA Classic 2.0 innovative product design blends seamlessly and elegantly into the modern kitchen. The intuitive operation panel supports user-friendly operation. Cleaning is solved in the easiest way as the filter can be easily cleaned in the dishwasher. `Minimalistic design `Maximum flexibility `100% clean rate 02 9719 2350 / www.bora.com

www.applianceretailer.com.au

AR WHAT'S HOT

Style has a new flavour – introducing Smeg’s new drip coffee machine

Wake up to the perfect aromatic brew every morning with Smeg’s new drip coffee machine, a must-have for every coffeeloving household. Designed in collaboration with famed Italian architects Deepdesign, Smeg’s newest small appliance features the collection’s signature retro style silhouette and is available in seven colours: black, panna (cream), red, pastel blue, pastel green, white and stainless steel. With its 4-cup function and 10 cup capacity, Smeg’s latest appliance is just as much at home in a communal co-working space as it is on a kitchen bench. Showcasing the best of Italian technology, the drip coffee machine will allow users to craft their ideal cup thanks to the aroma function, with options from delicate to intense, as well as a keep warm function which ensures coffee is kept at the optimal temperature for up to one hour.

RRP: From $279

Design your dream outdoor kitchen with Gasmate

The Gasmate Galaxy Black 6 Burner BBQ allows users to create their own stunning outdoor cooking and entertaining area. Start with the Galaxy Black 6 Burner BBQ, featuring a roasting hood with viewing window, side and rear rotisserie burners, total heat output of 100MJ/h and self-draining enamel coated cast iron draining cooking surfaces. Then to create the outdoor kitchen, add the Galaxy Black BBQ modules that you need. The BBQ and modules can be arranged in any combination. Tailor them to suit individual areas or budgets. Users can even add more modules later.

RRP: BBQ $2,999

LG delivers laundry convenience using artificial intelligence

LG’s latest front-load washing machine range is equipped with Artificial Intelligence technology and proprietary Direct Drive motor to deliver a thorough yet gentle clean by determining the weight and fabric of each load. TurboClean enables shorter wash times – as little as 39 minutes – to complete a half load of lightly soiled clothing. Utilising a Multi Spray system, these washers deliver jets of water from four different directions simultaneously, helping to speed the washing and rinsing process.

RRP: $1,319 (8kg) / $1,439 (9kg)

Appliance Retailer December 2019

COMPANY INDEX AR COMPANY

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READERSHIP GROUPS

Amazon.................................................................................................................9 Andi-Co...............................................................................................................31 Arisit....................................................................................................................41 Arlo......................................................................................................................22 Australian Retailers Association.........................................................................11 Betta Home Living..............................................................................................39 BIS Oxford Economics........................................................................................20 Bora.....................................................................................................................41 Bunnings........................................................................................................7, 27 Camera House......................................................................................................8 Canstar Blue........................................................................................................34 D-Link..................................................................................................................26 David Jones........................................................................................................10 e&s........................................................................................................................9 Electrolux..................................................................................................... 14, 15 Eurolinx...............................................................................................................30 Fujitsu General.....................................................................................................9 GAF............................................................................................................... 32, 38 GfK.......................................................................................................................20 Hisense....................................................................................................... IFC, 30 Hong Kong Trade Development Council.................................................... 12, 13 IBISWorld............................................................................................................28 KitchenAid..........................................................................................................35 Laser....................................................................................................................24 LG................................................................................................................. 36, 42 Miele...............................................................................................................9, 31 Narta......................................................................................................................6 Nespresso.............................................................................................................6 Panasonic............................................................................................................37 QLS Group...........................................................................................................11 Sharp...............................................................................................................9, 36

Winning Group.................................................................................. 7, 16, 17, 18

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XploreMR............................................................................................................28

Shriro..................................................................................................................38 Sitro Group..........................................................................................................42 Smeg............................................................................................................ 29, 35 Status Plus..........................................................................................................33 Swann.................................................................................................................25 Teco.....................................................................................................................32 Telsyte.................................................................................................................20 Toshiba................................................................................................................10 TP Vision................................................................................................................8 Uniden.......................................................................................19, 20, 21, 23, 41 VTech...................................................................................................................26

www.applianceretailer.com.au

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* Google Analytics Nov 2019, applianceretailer.com.au averaged 21,324 unique users per month.