July 2015
RETAILER
APPLIANCE BROWNGOODS WHITEGOODS SMALL APPLIANCES COMPUTERS & COMMUNICATIONS
All The Big Names Open Up For AR’s Mid-Year Report Card Action Cameras Pack An Awesome Punch Amazing Gifts For Father’s Day AR’s First Thermo Cooking Feature
✱ contents
VOLUME 21, ISSUE 6
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11
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APPLIANCE
July 2015
RETAILER
Cover
Story BROWNGOODS WHITEGOODS SMALL APPLIANCES COMPUTERS & COMMUNICATIONS
All The Big Names Open Up For AR’s Mid-Year Report Card After 21 Years, Our First Interview With The Good Guys! Action Cameras Pack An Awesome Punch Amazing Gifts For Father’s Day AR’s First Thermo Cooking Feature
Nespresso Pixie Clips Pixie Clips is first Nespresso coffee machine that you can personalise with a range of easy to swap side panels. Express your personality by giving it a new look with a wide range of clipon side panels, playing with different colours and textures. Your style in a clip! Available in two models with two sets of panels with each - white or neon coral (De’Longhi EN126AE), or black and lemon neon (Breville BEC450XB), the choice is yours. 12 uniquely designed panels are also available from Nespresso direct, offering more possibilities to personalise your Pixie Clips. Pixie Clips is the smart model in the Nespresso range, condensing a wide range of advanced and innovative features into a cleverly designed machine that will adapt to your lifestyle.
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APPLIANCE RETAILER JULY 15
06 Editorial
37 DR Focus: Action Cameras
08 News
38 New Gadgets
10 The Best Of Service
41 Father’s Day Feature
11 Mid-Year Report Card
50 Thermo Cooking Feature
36 Digital Retailer
54 New Appliances
✱ company index Acer AEG Andi-Co Amber Tech Artusi Asko Beefeater Beurer Bissell Bosch Braun Breville Canon Cellnet Conair Contour De Dietrich De’Longhi Dyson Electrolux Eurolinx Falcon Fhiaba Fitzone Fujitsu Garmin George Foreman GfK Glem Gas
27 30 18 16 30 22 30 48 35, 54 55 48 12, 54 21 31 46 37 30 26 33 30 30 18 30 44 34 20, 49 25 19, 50 23, 55
Glen Dimplex 15 GoPro 22, 37 Groupe Seb 7, 16, 50 Hisense 27 Home Appliances 15 HoMedics 39 House of Marley 39 Ilve 30 Ingram Micro 39 iWorld 39 Jawbone 38 Jura 26 Kambrook 12, 47 KitchenAid 50, 51, 52 Kleenmaid 14 LG 35, 36, 40 Liebherr 18 Linksys 39 Logitech 31 Magellan 48, 49 Miele 22, 28, 29, 54 Mitsubishi Electric 23, 54 Morphy Richards 15 Navman 49 Nespresso OFC, 2, 3, 24 Netgear 13 Onkyo 16 Panasonic 19, 36, 37, 38, 40, 43, 44, 46
Philips
12, 41, 42, 43, 44, 45, 48, 55 Plantronics 39 ProAppliances 50, 51, 52, 53 QualiFi 39 Remington 25, 44, 46 Russell Hobbs 25 Saber 55 Samsung 28, 38 ShotBox 37 Simpson 14 Smeg 25 Spectrum Brands 25 Sonos 21 Sony 34, 36, 37, 38, 40 Synnex 38 Tefal 16, 50, 51, 55 Thermomix 50, 52 TNS Distribution 54 Topfield 18 Toshiba 37 Uniden 17 Vitamix 17 VS Sassoon 44, 46 Westinghouse 30 Withings 39, 49 Yamaha 13
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✱ editorial
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Editorial Director James Wells james@intermedia.com.au Editor Patrick Avenell patrick@intermedia.com.au Journalists Tess Bennett Pamela Connellan Kymberly Martin General Manager – Sales Rod Riley rod@intermedia.com.au Graphic Design Alyssa Coundouris Prepress Tony Willson Production Manager Jacqui Cooper jacqui@intermedia.com.au Production Assistant Carly Saillard csaillard@intermedia.com.au Head of Circulation Chris Blacklock Subscriptions Ph: 1800 651 422
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An A for Awesome! Mid-Year Report Card Brings Out The Best
T
he second half of the calendar brings with it colder weather, a new Financial Year, Father’s Day and, somewhere in the middle distance, Christmas. When I speak to retailers and suppliers, they both tell me that the second half is traditionally more prosperous than the first, with none of the February Blues that often see customers tighten their belts as the credit card bills start infiltrating the mailbox. And it’s safe to say I have been speaking to a lot of the industry over the past few weeks! This issue of Appliance Retailer, my 61st as editor, includes our biggest ever Mid-Year Report Card. When I came up with the idea for the Report Card four years ago, I envisioned it be an executive discussion between several CEOs and managing directors about the state of the industry. Since that first Report Card was published, I have been inundated with requests to submit — not from marketing managers or PR lackeys (they have a great sense of humour!) — but from the doyens of the industry. It’s very gratifying to speak candidly with such an auspicious collection of industry leaders. Thank you to everyone who took time out from their busy schedules to participate. On the supplier side, we have commentary from the Big 4 consumer electronics brands (Samsung, LG, Sony and Panasonic), as well the leading names in European cooking (Smeg, Miele, De’Longhi, ILVE and Electrolux). Across the aisle, Dick Smith, Leading Appliances, Betta Home Living, The Winning Group and 2nds World are all represented. Furthermore, I am especially proud to include Appliance Retailer’s first ever interview with The Good Guys. This fantastic Australian company likes to keep a low profile but after winning several awards for its outstanding customer service, and my persistent badgering (!), CEO Michael Ford contributed some of the most interesting and insightful thoughts about the retail consumer electronics industry. It really is a must read.
Very briefly, here are some of my own thoughts about the industry. The populist Federal Budget delivered by Treasure Joe Hockey has definitely increased business confidence, though this hasn’t necessarily extended to consumer confidence. Despite low interest rates, the populace is concerned about personal debt and fear losing their jobs or security if a recession were to hit. The renovation market is improving, which is very good news for premium European cooking brands, but consumer electronics remains flat and, by many reports, margins are slight or non-existent. Australians love a good competition reality TV program: Reno Rumble is encouraging major appliance sales while MasterChef Australia is keeping the small appliance sales ticking over. A major battleground over the coming 12 months will concern rebates. The ACCC has already started cracking down on the practice and if proposed changes to business laws are enacted, they may be deemed illegal. Retailers may be fretting these changes but there is no doubt that, privately at least, suppliers will be cheering on such a change. My favourite product of the past 12 months has been the Sonos multiroom Wi-Fi system. I purchased a Play:1 and a Play:3 for my apartment late last year and it is absolutely sensational. Easy to set up and easy to use, I can play music from my Hitachi hard drive, Asus PC, Apple Mac, iPhone, iPad, WD NAS and online via Deezer. I love demonstrating Sonos and showing it off to friends when they visit and there’s no doubt that if you set up one of these systems in store, the sales will flow.
Patrick Avenell
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Silent Ceiling Rangehoods
All The Big Names Open Up For AR’s Mid-Year Report Card After 21 Years, Our First Interview With The Good Guys!
First Look at Neil Perry Kitchen by Omega Global Trends 2015 IFA Press Conference
How to Tackle Omnichannel Challenges
Amazing Gifts For Father’s Day
Welcome to new Gold Coast Powerhouse L&M Gold Star
AR’s First Thermo Cooking Feature
Tribute to columnist Bob Johnson
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Action Cameras Pack An Awesome Punch
Samsung launches long-awaited GS6 LG growing strong in TV and AV
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Can Pebble Compete with Apple in Smart Watches?
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✱ news Winning Appliances appoints David Woollcott as CEO as Crane departs David Woollcott, who earlier this year resigned as sales director at Miele, has been appointed the new CEO of Winning Appliances, replacing David Crane. Crane resigned in April 2015 following a decision to return to the United States to be closer to his family. Woollcott will take the reins of the Redfern-based retailer on 1 July and there will be a four week transition with Crane, who will finish up with the business at the end of that month. Originally from the UK, Woollcott has spent over a decade of his career working in the Australian market for BMW and most recently Miele. He joined Miele in 2011 from fellow German brand BMW and his resignation
was announced in March this year, with his official departure slated for the end of June 2015. “I am excited to join a company with such a rich heritage and strong company values,” Woollcott said. “Having worked closely with Winning Appliances in my previous role I know John Winning and the rest of the team very well and am proud to join such a longstanding business that is well respected within the industry. I look forward to getting to know the broader team and building on the brand’s strong hold in the premium appliance market.” CEO of Winning Group John Winning said, “With a thorough understanding of the appliance
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APPLIANCE RETAILER JULY 15
David Crane
industry and extensive experience working with premium lifestyle brands, David brings a wealth of knowledge to the team. He will be a great asset for our business and I look forward to working with him to lead Winning Appliances to further success and to achieve our mission to provide the best shopping experience in the world.”
Skropidis leaves LG to join Electrolux
Mike Putt replaces John Brown as EHP MD Electrolux veteran Mike Putt has been promoted to managing director of Electrolux Home Products, Australia/ New Zealand, succeeding John Brown who has left the company to pursue other opportunities. Most recently, Putt was acting managing director for the business during John Brown’s year-long assignment in China. Putt has been with the company since 1981, starting with Email Ltd and later moving to various positions in the sales organisation within Electrolux Home Products. He brings with him extensive management and commercial experience having been the director of sales for the business since 2007. In this role, Putt will be responsible for the business of Electrolux in one of the company’s core markets and will report to Kenneth L. Ng, President and CEO of Electrolux Major Appliances, Asia Pacific. Ng thanked Brown for his contributions to the company over the last 18 years. “His extensive experience and contributions from several management positions in the company have been instrumental in the growth and success of the Australian and New Zealand business,” he said. “We continue to have great expectations for Australia and New Zealand. The recent acquisition of Beefeater Barbecues, together with a series of new and impending product
David Woollcott
Mike Putt
John Brown
launches will ensure the brand is in a strong market position and we look forward to working closely with Mike to continue maximising profitable growth opportunities for the business,” said Ng. Putt’s appointment is effective immediately and includes membership of the Electrolux Major Appliances Asia Pacific leadership team.
LG Electronics Australia’s chief marketer Lambro Skropidis has quit the Korean company to join Swedish appliance brand Electrolux Home Products. Skropidis has been with LG since March 2012 when he joined from Samsung Electronics Australia. LG has confirmed that Skropidis went on leave effective Monday 22 June and a replacement is currently being recruited for his position. Skropidis will commence his new role at Electrolux in August. Skropidis has overseen the rollout of Australia’s only OLED TV range, Ultra HD and Curved panels, and several laser and projector TVs. In addition, LG has re-entered the local PC and tablet categories as well as a re-emphasis on premium smartphones after several years focused on the prepaid market. In appliances, LG has maintained its strong positions in washing machines and dryers, including the rollout of new topload and frontload technologies, as well as the groundbreaking release of LG’s Door-in-Door refrigerators.
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news ✱ Grant O’Brien departs Woolworths amid drastic and costly restructure as product recalls continue Woolworths CEO and managing director Grant O’Brien has announced his retirement from the supermarket giant at the time the company plans on retrenching 1,200 people as part of a new project aimed at driving returns to shareholders. O'Brien cited the recent performance of the company as “disappointing and below expectations”, and in regards to the company's new cost cutting program called ‘Fuel For Growth’, he said it would be in the best interests of the company for “new leadership to see these plans to fruition”. A global executive search including internal and external candidates will now be conducted by the Woolworths Board to appoint a new CEO. O’Brien will continue to serve as CEO and MD during this period. He said: “Woolworths is family to me and I have been honoured to work alongside our team of 200,000 hard-working, talented people for the past 28 years.” Redundancy costs are part of the FFG program and will be between $40-to$50 million, with plans to reduce 400 support roles and a total reduction of approximately 1,200 roles across support functions, supply chain and non-customer facing store positions. Woolworths will also dispose of a number of properties that they are now unlikely to develop. This will incur a loss in the range of $30-to-$40 million. Meanwhile, four faulty Essentials, Adesso and Contempo portable room
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Australian company Seeley International has acquired Coolerado, a Denver-based manufacturer of evaporative air conditioning systems, as the next step in its global business expansion. Seeley's founder and executive chairman, Frank Seeley said, “This acquisition establishes a US-based manufacturing facility which is another exciting step in our growth strategy as we look to move closer to our North American customers”.
De’Longhi appoints new Marketing Manager Grant O’Brien has stepped down after 28 years working for Woolworths.
heaters sold at Big W and Woolworths have been recalled because the pins in the plug may dislodge when the appliance is being unplugged from the wall which could potentially result in electric shock or fire. The heaters were sold nationally in the last four months between 15 March 2015 and 17 June 2015. The affected models are the Woolworths Essentials Upright Fan Heater (FH09E-B), the Essentials Oscillating Fan Heater (FH09F-B); the Adesso Oscillating Ceramic Fan Heater (FH102T), and the Contempo Oscillating Ceramic Fan Heater (FH102T).
Private equity owners put Shaver Shop on the market Cameron Fox, CEO of the Shaver Shop network of stores, has confirmed that after four years running the business, Arnhold Investments is looking to sell the specialist personal care chain. Potential buyers have been told that Shaver Shop expected $11 million in earnings before interest, tax, depreciation and amortisation this financial year and, that the owners are "expected to seek about seven or eight times earnings, which would imply up to a $100 million asking price”. Fox said Shaver Shop's total sales revenue is approximately $127 million with sales growth of 11 per cent, or $12.5
Seeley acquires US cooling company
million on the prior year. “Online sales are certainly showing very strong growth, but off a relatively low base,” Fox said. “Bricks and mortar remains the lion’s share of Shaver Shop total company revenue. Like-for-like store sales remains positive and very healthy across our traditional bricks and mortar business.” Fox also outlined Shaver Shop’s general strategy to grow its earnings, including opening no less than 25 profitable Shaver Shop greenfield sites in Australian market over the next three years. There are currently 85 Shaver Shops in Australia and three in New Zealand.
De’Longhi Australia has appointed Alix Russell to the recently vacated position of Marketing Manager. Russell has a traditional background in Marketing with her most recent experience being six years with Reckitt Benckiser Australia and prior to that Reckitt Benckiser in South Africa. “We welcome Alix to the Electrical Appliance industry and look forward to her knowledge and experience making a significant contribution in partnership with our retail partnerships, marketing team, agencies and most importantly alliance partners Nespresso and Nestle Dolce Gusto,” said De’Longhi Australia general manager, sales and marketing, Tom Mitchell. “Recent changes at our Kenwood Head Office in Havant England has enabled Mark Nesci to be promoted to Kenwood Trade Marketing Manager of the Global business and we farewell Mark knowing he is still with the De’Longhi family,” Mitchell said. “As a global company, it is a highlight for the business to be able to offer opportunities around the ever changing markets we operate in.”
APPLIANCE RETAILER JULY 15
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✱ the best of service VALE BOB JOHNSON 1947 – 2015 With the kind permission of Bob’s widow Liz, Appliance Retailer celebrates his incredible contribution to the industry with a look back at some of his wonderful articles.
Pocketing The Profit Tips and tricks to help sales staff avoid discounting and retain profits.
I
n May 2002, Bob shared with the industry this column on how to curb price cutting. It’s still as relevant today as it was then.
We’ve been looking for a dishwasher and a refrigerator and, because funds are not unlimited, we are looking for good value. I guess we’ve visited around five retailers – not because we wanted to spend our weekends looking at these and other items, but because the only information we have been given so far is the brand, the size and the price. Now, as I said, while price is a consideration, it will not be the only, or the key factor in our decision. As these two items will last us for many years, we mostly want to be sure we have the right products. But not one salesperson, so far, has asked us why we think we want these products, how many people in the family, when do we need them, where, in the kitchen, will the dishwasher need to be installed. Not one question that might give us the feeling that someone actually has our best interests at heart – and not just our money. And, from friends and associates that I talk to, we are not unique in this. True selling, is helping your customers make the right choices about the right products and services – not simply to find the best price. No salesperson has, to date, mentioned terms to us or extended warranty options, which may have been of interest to us and would shift the focus away from price. 10
APPLIANCE RETAILER JULY 15
So, when customers ask about a particular brand or product, and salespeople merely address those questions, sooner or later price will become the sole negotiating point (because we are only talking about that one product). If salespeople could be trained to find out what it is that the customer likes about that particular product — what it is that interests them about the product, et cetera — then the salesperson is beginning to broaden the discussion and, perhaps, the choices available to this particular customer. And, when a salesperson has the answers to those questions, they can say something like, “Well, based on what you’ve told me, I have some good news for you: we have three products that will do what you want them to do and I’d like to get your opinion on them”. Now for the matter of price negotiation — here are some strategies I’ve either applied or seen used by salespeople. In situations where the marked price is your best price but the customer still wants a discount: • Review with the customer all the features and benefits of owning this particular product; point out the value in the price and how it suits their needs. • Point out the benefits of dealing with you and your store (for example, any after-sales support you offer). • Create package ‘deals’ using related products to differentiate your price, adding value (and profit). • Show the customer a lower item and, being sure not to ‘rubbish’ it, point
out the advantages of owning the higher priced item. • Offer payment alternatives, pointing out the different financing options available. • Guarantee your price. Find out how long the customer thinks it will take for them to check out other stores (Two hours? Two weeks?) then, ask your customer how they feel about you guaranteeing your price for twice that period. If the customer sees the same product advertised at a lower price during the period, offer to refund the difference. Few will continue to look around once they already own a product. If you are prepared to improve the price: • First, ensure that the customer is buying today and establish the payment method. • Add value with related items or services that cost you little but benefit the customer (for example, delivery). • Never reduce the price to a round figure — that is, not from $1,699 down to $1,650. You may find the customer will then offer you $1,600 (you went down $50, they may too). • Instead, using your calculator, create an ‘odd’ price ending, like $1,676. Your customer is likely to round this down to $1,675 or $1,670, which is still much better than the $1,600 price mentioned above. If you agree to the price, it’s SOLD! Start writing it up! Finally, always try to create an image that is based on more than simply the cheapest prices. WWW.APPLIANCERETAILER.COM.AU
2015 Appliance Retailer Mid-Year Report Card It’s a challenging time to be an electrical supplier or retailer but there is still plenty of optimism among the 30 industry insiders we spoke to for our biggest ever Mid-Year Report Card.
The Good ✓ Premium kitchen and laundry appliances selling well due to burgeoning renovation market ✓ Niche categories like action cams and multiroom audio are riding the crest of a wave ✓ Populist Federal Budget offers hope of improved consumer confidence leading into Christmas
The Bad ✗ Currency fluctuations are having a deleterious effect on margins and profitability ✗ Online competition, be it via the sub-$1,000 GST threshold or grey importing, is costing local retailers ✗ Too many brands in key categories is accelerating price erosion
Special Feature edited by Patrick Avenell; with contributions by Tess Bennett, Pamela Connellan and James Wells; design by Alyssa Coundouris.
✱ 2015 Mid-Year Report Card Mark O’Kelly General Manager Breville Australia (Breville, Kambrook, Nespresso and selected Philips products)
How has the first half of 2015 been for your business? It has been a steady trading period for Breville, with Kambrook and Philips experiencing growth. All brands are preparing for a buoyant second half of the year. Following the seamless relocation of the warehousing facility to Minto last year, the rest of the business moved to Alexandria in March. Internally, the business has been challenged by an ERP (enterprise resource planning) system change over, which has significantly slowed stock and spare parts deliveries. What are your predictions for the second half of the year? Breville will continue to drive category success through innovation and new product launches. This will enable the brand to strengthen market share in these categories. The business is addressing the logistics issues and planning for the busy lead up to Christmas. We also look forward to welcoming new Breville Group CEO, Jim Clayton, who joins the business this month. He has a strong background in consumer products, technology and innovation. What opportunities do you see for the electrical retailing industry? Within the next six months, connectivity in small appliances will emerge as more than a topic of conversation. What threats are currently present in the industry? The threat of online to traditional bricks and mortar retailers is still present but isn’t growing. The general economy and consumer confidence will have greater influence on the retail sector over the coming year. What is your favourite product of 2015 so far? During my short time at Breville, I’ve been captivated by blenders. The Boss is extremely impressive and produces incredible results. You could say I’m a green smoothie convert. Personal blending is also a category of great interest, with new designs and functionalities from Breville set to stir things up a little later this year. ◗
David Cooke Director — Investor Relations Dick Smith Holdings (Dick Smith, Move, David Jones concessions)
How has the first half of 2015 been for the business? We’ve enjoyed a very strong first half of 2015 with sales growth in Australia of 12.2 per cent. We’ve also experienced strong customer support and trust in our brand, with consumers increasingly complementary of our products, service and value offer. What are your predictions for the second half of the year? We anticipate further growth in the second half of the year, with customers continuing to support our strong value propositions and enjoying our unparalleled, convenient store network. We’re also excited about our fashion electronics brand, Move, which has grown significantly since we opened our first store in 2013. Since then we have opened nine stores across four states, with more store openings planned for the second half of 2015. Dick Smith has been a retailer of choice for small and medium size companies for a number of years and is a preferred supplier of computer and electronic equipment. That makes tax time important, as computing and mobile phones are a significant part of our business. We hope that the 2015 Federal Budget reforms will assist in improving small business confidence and growth, and therefore increase sales of our business related products. What opportunities do you see for the electrical retailing industry? We believe the outlook for consumer electronic retail industry is improving. In addition to the federal budget benefits for small businesses, we anticipate the industry will experience an element of inflation reflecting the fall of the Australian dollar in recent months, which should benefit prices. There is also a strong pipeline of new products coming into the market which consumers are eager to own. We expect that the low interest rate environment, strong house pricing and the share market, will also help improve consumer sentiment. What threats are currently present in the industry? The main threats to the industry appear to be related more closely to macroeconomics, with consumer sentiment, unemployment and disposable income all influencing consumer behaviour buying new consumer electronics. What is your favourite product of 2015 so far? Fitness continues to be a strong growth category, with a number of products such as wearables and heart rate monitors performing extremely well. Our share of the category is over 20 per cent, making it a strong performer for both Dick Smith and Move. One of my favourite products is the Wireless Activity and Sleep Tracker. It’s affordable fitness motivation, right on your wrist. ◗
Australian tablet sales dropped 20 per cent last year due to saturation of the market.
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APPLIANCE RETAILER JULY 15
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2015 Mid-Year Report Card ✱ Brad Little Managing Director – Australia and New Zealand Netgear
How has the first half of 2015 been for your business? The first half of 2015 has been very positive for Netgear with the introduction of a number of new innovative products and solutions. The growth in the market continues to provide great opportunities to position our products and new technologies and it is clear that the consumer appetite for strong, reliable and fast Wi-Fi is being driven by increasingly better internet connections and devices, as well as the proliferation of streaming services such as Netflix. The launch of our smart home platform, Arlo, has allowed us to add a new and innovative product in our 100 per cent wirefree HD Security camera and will continue to offer a new exciting range of products and enable us to position them in new ways. What are your predictions for the second half of the year? We predict that we will see continued growth in the second half of the year. As we all know, technology doesn’t stand still for too long and so this growth will be driven by consumers continuing to demand more from their devices. What opportunities do you see for the electrical retailing industry? For the electrical retailing industry we can see that the development of the Internet of Things provides unlimited opportunities for retailers to further develop their messages to new customers and expand and integrate into every home in Australia. We are seeing the lines blurring between traditional IT, AV, DIY and custom-install categories, which is helping the electrical retailing industry evolve in even greater ways. What threats are currently present in the industry? With all of this tremendous growth in the industry it is not so much that there is a threat than a need to continue to adapt to new realities. As the way consumers shop continues to evolve across point of sale and online we see that there is not one winning path to market but rather many touchpoints that can influence the shopping experience. What is your favourite product of 2015 so far? Arlo is certainly my favourite product and a new space for Netgear. In solving a problem for consumers by keeping track of the people and places you care about most, it also challenges a category that has been hard to shop and position. The Smart Home category has often offered convenience rather than meeting a specific need for consumers so this transformation provides us a great platform to continue to innovate in the rest of 2015. ◗
Simon Goldsworthy General Manager – AV Division Yamaha Music Australia
How has the first half of 2015 been for your business? We’ve seen signs that the market is recovering from an extended lull with a return of consumer confidence, which has, in turn, led to a sense of optimism in the retail channel. This has been driven by a long-awaited shift in the market to wireless technologies, as well as new developments to reinvigorate the home theatre category in particular. What are your predictions for the second half of the year? We’re anticipating an eventful second half of the year with some exciting new products still to come. Encouragingly, we will continue to see a trend to ‘home entertainment’, in general, with music streaming hitting the mainstream and the advent of next-generation home cinema with object-based surround sound and 4K Ultra HD through the new HDMI spec. What opportunities do you see for the electrical retailing industry? The culmination of a host of new technologies is providing customers with an opportune time to purchase products that enhance their lifestyle. New product categories are bringing sophisticated technology to new markets, which is promising given the mainstream adoption of these technologies. What threats are currently present in the industry? We’re cautiously optimistic about the immediate future. The market seems to have stabilised with new entrants to our key categories and this has resulted in re-establishing market share. This enables us to focus on key growth areas and move with technology trends, all of which is imperative to staying competitive in a fast-paced market. What is your favourite product of 2015 so far? I think the best is yet to come for 2015. ◗
View from the frontline… “It’s been a good year, except in the areas of TVs as their pricing has gone up dramatically, which is not good for the consumer market. “Other than that, things have been great: washing machines, fridges and a lot of whitegoods categories are going well.”
…with Sam Mona, Bi-Rite Electrical in Fairfield, New South Wales.
Over one million Australians now use smart wristbands to track their steps as they seek a healthier lifestyle.
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✱ 2015 Mid-Year Report Card Nicholas Fry Head of Product and Marketing Leading Appliances
How has the first half of 2015 been for your business? It’s definitely had its challenges. We finished 2014 on a positive note, but 2015 has been pretty tough so far. In saying that, we remain ahead of budget and are reasonably confident consumer confidence will pick up and we’ll close out the year strongly, ahead of budget and up on last year. What are your predictions for the second half of the year? I believe the positive response to the Federal Budget, coupled with continued low interest rates, will see a long-overdue boost in consumer sentiment, leading to growth in retail sales for the second half of 2015. What opportunities do you see for the electrical retailing industry? The provision of excellent customer service in place of reckless and needless discounting. By giving consumers great service and advice, price becomes a secondary issue and everybody wins! What threats are currently present in the industry? I think for the industry in general, for retailers and wholesalers, the threats are many and varied in the sense that any competing industry is vying for the disposable consumer dollar, which can only stretch so far. So we need to remain an exciting, technology-driven sector, delivering exciting new products and providing a stimulating and memorable experience to the end user, so they keep coming back for more. What is your favourite product of 2015 so far? Laundry products are the strongest category within Leading Appliances, and the new range of Simpson Top Load Washers, released in March, have provided a great fillip for our business: excellent cosmetics and strongly featured products which have proven to be very popular with consumers. The new Simpson 6.5-kilogram Washer (SWT6541) is our best-selling washer. ◗
Danny Hamilton CEO Kleenmaid
How has the first half of 2015 been for your business? In one word, sensational! We appreciate that our positon is somewhat unique as we are moving back into the market. However, as the Kleenmaid brand gathers momentum we are seeing our dedicated disciplines in providing exceptional customer service and outstanding support to our selling partners really striking a chord. For too long both consumers and selling partners needs have been overlooked and neglected. In having laser-like focus on what we term the ‘Triple Win’, we are ensuring that consumers are getting real value for money, that our retail partners are enjoying the financial benefits of strong margins and that we are in turn succeeding in our business objectives. What are your predictions for the second half of the year? The second half of the year is always better than the first. I am predicting the second half of the year will be tremendous for us in every facet of our business. What opportunities do you see for the electrical retailing industry? There is a huge amount of business to be secured by doing the job better than it is being done by others. Professional, ethical selling is the key to electrical retailing success. Consumers don’t come into a store to necessarily buy as they can do that online should they wish to. Customers are in the store because they are either researching products and are wanting to see, feel and touch what they want to are intending to buy. Or they are seeking advice from a competent sales professional. On many occasions they simply want verification of their intending purchasing decision. The retailer who has well-informed, well-trained and wellpresented sales staff — who know how to close and are willing to ask for the order — will clearly win more business than the ones who don’t. What threats are currently present in the industry? We have identified the weakness and it is ourselves. It is laziness to the standards of retail excellence. It is apathy to customer service. It is a reluctance to train and reward sales staff. It is lowering our standards of sales professionalism. With the amount of construction going on in Australia today, the sales of electrical appliances should be booming, and they are for those retailers who are investing in the price for sales success. What is your favourite product of 2015 so far? It is the Kleenmaid GCTEK9020. A 90cm gas cooktop on arsenic free, Black Krystal glass with electronic sensor touch controls and five burners with nine levels of electronic gas control. ◗
The average household has 8 internet-connected devices and this is predicted to be 20 by 2019.
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2015 Mid-Year Report Card ✱ Douglas Yapp Marketing Manager Glen Dimplex (Dimplex, Belling, Morphy Richards, among others)
Matthew Vozzo National Business Manager Home Appliances (Euromaid, Baumatic, Lemair, Venini, among others)
How has the first half of 2015 been for your business? We have had a good first half to 2015 following a relatively flat second half of 2014. Our business continues to diversify and reduce the impact of seasonal conditions and this has resulted in good growth over the corresponding period in 2014.
How has the first half of 2015 been for your business? Retail business has been steady and progressively building. The challenge is to develop consistent growth across all categories within the business while providing the right margin mix for customers and internal stakeholders.
What are your predictions for the second half of the year? Recent figures show that small domestic appliances are up 13 per cent in terms of value, which means consumers are spending more money on premium small appliances brands. Hopefully consumers continue to invest in quality, wellbuilt appliances, which will have a positive effect across our business, especially in the lead up to Christmas. There continues to be a trend towards health and lifestyle as a driver. We always hope for a long hot summer, especially since we had below average weather Australia-wide last year. Colour remains a strong theme however we expect to see black and white make more of comeback.
What are your predictions for the second half of the year? A developing retail landscape with all suppliers looking to build and cement their market presence across all channels.
What opportunities do you see for the electrical retailing industry? The main ones would be: energy-saving appliances, innovative technology, and appliances controlled by or used with apps. There is also good stimulus provided for small business in the recent Federal Budget, which should benefit the industry as a whole. What threats are currently present in the industry? Seasonal products remain a significant part of our portfolio and this is still a large category in the industry, so weather is one of our biggest natural threats. We need winter to be cold, and summer to be hot in order to take full advantage of sales. Therefore, it is important to maximise sales opportunities around Mother’s Day, End of Financial Year Sales and the Christmas period, which aren’t weather dependent. Glem Dimplex will capitalise on these events with Morphy Richards now back under group control. Cheap products sourced from China are always going to be a threat, however, with an increase in product recalls, it should steer people to choose quality and heritage driven brands with a credible safety track records. What is your favourite product of 2015 so far? The new designer Aspect Kettle and Toaster Range from Morphy Richards, plus the Electraflame range from Dimplex, which looks great and are sold year-round with various styles to choose from to suit any household. ◗
What opportunities do you see for the electrical retailing industry? I think retailers are doing a great job in lifting their overall in-store presence and footprint especially in the cooking category, this can only assist in generating more profit for dealers and increased sales across all categories. What threats are currently present in the industry? The consumer is in touch with their product needs and wants through technology, so it is up to suppliers to develop products that speak to the consumer of today and tomorrow. The market and trends are moving so quickly now. If suppliers don’t continue to innovate they may not survive. What is your favourite product of 2015 so far? Home Appliances has released a Black Glass dishwasher that a colleague and I sourced on a trip 1.5 years ago. Consumers have warmed to the fresh design and high feature set where coloured appliances are now increasing in popularity. ◗
View from the frontline… “For us, business has been tracking up except for the last month. TVs have slowed down a fair bit, partially because of price rises and saturation of the market. “I wouldn’t say there have been any real hero products this year – there’s not a really exciting product that comes to mind at the moment and maybe we need to get something happening here.”
…with Brett Morrison, Morrisons Betta Home Living in Coffs Harbour, New South Wales.
“If you don’t build your dream, someone else will hire you to help them build theirs.” — Dhirubhai Ambani.
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✱ 2015 Mid-Year Report Card Wivina Chaneliere Managing Director Groupe SEB
How has the first half of 2015 been for your business? We have had a very strong first half in 2015 thanks again to the many innovations we have launched in the market: the new Actifry Express, Effectis steam generators, the Tefal Cuisine Companion and new cookware ranges. What are your predictions for the second half of the year? A very strong second half as interest rates are at a record low and consumers are more confident to purchase appliances to enhance their daily lives. What opportunities do you see for the electrical retailing industry? There are many opportunities in upselling to great innovative products that change the lives of consumers. That is what we do at Tefal: provide products that make their lives easier by providing cooking or cleaning solutions that enable them to save time while delivering outstanding results. What threats are currently present in the industry? The exchange rate fluctuation is always an ever-present risk. Plus cheap and poor-quality no-name brands that don’t add value to consumers and thus to the industry What is your favourite product of 2015 so far? Tefal Cuisine Companion of course! It’s the first time the distribution can have a slice of the thermo cooking market and the product is amazing – I use it at home every day. ◗
Phil Simmons General Manager – Lifestyle Entertainment Amber Technology
How has the first half of 2015 been for your business? The first half of 2015 has seen positive growth across the Amber Technology business. As an Australian-owned distributor with a long history in the AV space, we have developed strong relationships with local retailers and constantly monitor the latest trends in consumer needs. Two of Amber’s key consumer brands, Onkyo and One For All, have exceeded our expectations and are reminders that successful brands have well-featured products that are easy to use and offer unrivaled performance. Locally available support is vital and I believe our expert, in-house team is crucial to ensure customer satisfaction, and a key contributor to our market leading position and ongoing success. What are your predictions for the second half of the year? We anticipate the Amber Technology business will continue to grow throughout 2015. With a range of innovative and unique products due for release later this year, we feel positive Australian consumers will continue to embrace these new technologies and product features for their home entertainment experiences. What opportunities do you see for the electrical retailing industry? Australian consumers are becoming increasingly design and technology savvy. Recent reports indicate there is positive growth in consumer confidence. Coupled with an increase in discretionary spending in the home, this presents positive news to local retailers. It’s a reminder that there is ample opportunity for substantial sales growth, particularly in personal audio and home entertainment products that can meet the demands of stylish technology enthusiasts. What threats are currently present in the industry? Grey imports continue to undermine established, credible online retailers, as well as traditional ‘bricks and mortar’ retailers and, to some extent, unsuspecting consumers. As value for money continues to sit high on the list of priorities for Australian consumers, it’s a temptation for them to opt for grey imported products. Although these lower prices can appeal to consumers, a lack of post-sales support and repair services can turn this into a negative experience. The benefit of purchasing from authorised local retailers and distributors can avoid this outcome. Amber Technology recognises the importance of authorised ‘bricks and clicks’ retailing, and continues to work with its trusted retail partners to mitigate the risks associated with grey imports. We encourage customers to check with us whether they are buying from an authorised retailer. What is your favourite product of 2015 so far? It’s got to be the new Dolby Atmos technology. My living room has been transformed into a home cinema with the Onkyo TX-NR636 AV receiver and NHT speakers. The Onkyo AV receiver has Dolby Atmos capabilities, which means I can watch a movie producing the new object-based 3D sound. Paired with impressive speakers, it means I can enjoy a lifelike cinematic experience without having to set foot out the front door. Great for a cold winter weekend! ◗
By 2019, fewer than 1 in 10 Australian smartphone users will also own an MP3 player.
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2015 Mid-Year Report Card ✱ Brad Hales National Marketing Communications Manager Uniden
How has the first half of 2015 been for your business? 2015 has started fast and been very good. We have had strong sales across our surveillance, UHF, phones, in-car and baby monitor segments. We have also recruited well in the company and brought in some experts who are helping us shape the company, making it as profitable and innovative as ever. What are your predictions for the second half of the year? We are expecting double digit growth in the company with an unprecedented amount of products set for launch this year. 2016 will mark 50 years since Uniden was founded in Japan and I can’t remember another time at Uniden when there was so much product planned for launch, with so much internal hype. It is a very exciting time for the company as we look forward to teaming up with retailers to help launch some of these innovative products in the market. What opportunities do you see for the electrical retailing industry? From Uniden’s perspective, it is great to see that retailers are encouraging new trends and keen to be the first in the market to launch unique products. While the connected home continues to be a hot trend, consumers continue to prioritise convenience and ease-of-use as part of the buying decision for new products in the home. Consumers are seeing the benefits of controlling their home security remotely via smartphone or tablet, with live notifications sent to mobile devices when a door or window is open. With a strong line-up of Smart Home control products, we anticipate sizeable opportunities for retailers to extend profit margins. What threats are currently present in the industry? In our industry, there is more competition than threats in certain segments of the market, which can confuse consumers. It can be hard to differentiate between certain product features and key messages become blurred. Competition from some brands that offer inferior products, and limited backend support and service, can cause headaches for both consumers and retailers. What is your favourite product of 2015 so far? By far, our Guardian range of security products is my favourite. The Guardian series is great for monitoring both the inside and outside of properties. I have used them while away on holiday, checking in to see the house is okay via the smartphone and tablet apps. ◗
Euan Mitchell National Sales Manager – Australia and New Zealand Vitamix ANZ
How has the first half of 2015 been for your business? It’s been an extremely exciting six months with the birth of Vitamix ANZ Pty Ltd, direct to market. On 12 January 2015, we became the sole importer and distributor of Vitamix household products in Australia and New Zealand with a clear strategy to consolidate our market-leading position. Key objectives have been achieved and working partnerships have been established with like-minded retailers. We’ve seen positive results within all channels. What are your predictions for the second half of the year? Whilst the landscape is getting slightly congested with a greater number of mid-range products entering the marketplace, the consumer is more knowledgeable and savvy when purchasing, hence quality products like Vitamix will continue to perform. It’s fantastic — people’s commitment to nutrition and healthy living is firm and our research tells us Australian households are now consuming over 50 million smoothies a month — we’re having a big impact on the high performance blender category. These current trends lead to high expectations for the remainder of 2015, along with the introduction of the innovative and long-awaited new product, the Vitamix S30, a high performance, personal blender with full-size capabilities. What opportunities do you see for the electrical retailing industry? The opportunity is huge for retailers and brands to work in partnership to further develop and integrate a multichannel focus. Greater access to products 24 hours a day, 7 days a week is what the consumer demands. The multichannel approach is well advanced with several retailers in Australia, although it’s still a ‘low-hanging fruit’ opportunity for many. The consumer demands excellent product knowledge, and it’s imperative the industry continues to invest in education, staff training, as well as in-store and online demonstration activity. What threats are currently present in the industry? Quite simply, poor quality products that promise performance and under deliver! What is your favourite product of 2015 so far? The Professional Series 750 is the top-of-the-line Vitamix model that offers five pre-programmed settings, for smoothies, soups, frozen desserts, purees and it even has a self-cleaning option. Perfect for my young family! ◗
“It’s not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change” — Charles Darwin.
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✱ 2015 Mid-Year Report Card David Hargreaves National Sales and Marketing Manager Topfield by Toppro
How has the first half of 2015 been for your business? Whilst I only started at Topfield in February 2015, I can report that we did experience a slow first quarter to 2015. However, we are now seeing a resurgence in the PVR category, with the need for consumers to have an alternative device to be able to record free to air programs, particularly now with the launch of more streaming services that allow the consumer to watch their favourite movies or overseas TV shows any time anywhere. Topfield provides the consumer with a device that allows them not to miss their favourite programs whilst streaming Netflix. What are your predictions for the second half of the year? I am very excited about the second half with new Android based products launching with longer recording capabilities, streaming services and other free to air services on board. What opportunities do you see for the electrical retailing industry? I have advocated for many years that retailers need to automate the box ordering and then focus on the planning and execution of the new and exciting products coming to market. This is how we can all add revenue value to our business and hopefully the profit. What threats are currently present in the industry? The ability of sales people to understand the value of new technology products and to be able to explain the benefits of the features these products bring to everyday lives. What is your favourite product of 2015 so far? It hasn’t launched yet — it will come from Topfield! ◗
Lars Snitkjaer CEO Andi-Co Australia
How has the first half of 2015 been for your business? For the first half of the 2015 calendar year, Andi-Co Australia has seen a continued and very positive development in sales for both Falcon and Liebherr, and we are pleased with the results achieved. Product wise, we proudly deliver new and innovative products and product features of high quality and design, meeting customer expectations and requirements for premium brands like ours. With two dedicated sales teams we offer a persistent product training program which, together with other promotional initiatives, has delivered the expected growth, despite operating under challenging market conditions. What are your predictions for the second half of the year? We are optimistic that our positive results will continue for the remainder of the year due to increasing consumer awareness of our brands through media campaigns and exposure on renovation shows such as House Rules and Reno Rumble, on which both Falcon and Liebherr have featured. Our premium brands require a high focus on providing excellent customer service that we deliver together with our premium dealer network in the marketplace; being a prerequisite for attracting continuous growth. What opportunities do you see for the electrical retailing industry? There are always opportunities to improve and do better. It is essential to show that you are passionate and authentic in your behaviour and your brand offerings to your customers. Part of this is to deliver a customer experience that matches expectations from pre-purchase through to after-sales service. Whilst it may be some time before a customer requires another appliance, the key to success is retaining customers for life whilst being your brand ambassador. You need to make sure that the customer returns to your business, not the product. What threats are currently present in the industry? In the bigger scheme there is always the risk that consumers, for legitimate reasons, shy away from spending in order to save their money. This is outside the control of this industry. However, this is when the industry is challenged to adapt and develop their business models rather than selling on price alone. Such impact is lesser on premium brands, but no brands are immune. The increasing online presence in the marketplace contributes to this threat as well. As the business climate in the world changes and becomes smaller and more digital, the focus is about getting the business model adapted accordingly through finding the right balance between online and offline offerings that deliver shopping experiences in line with future customers’ expectations. What is your favourite product of 2015 so far? By only looking inside our own fence, it has to be the Falcon Professional+ 100 FX Upright Cooker (PROP100FXDF), which we recently released as the first 100-centimetre upright cooker in our range. It has been extremely well received by both retailers and consumers alike. ◗
Young people expect to shop online but also want to access customer support wherever they need it.
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2015 Mid-Year Report Card ✱ Gwenno Hopkin General Manager – Point of Sale Tracking GfK
How has the first half of 2015 been for your business? It’s been an exciting first half for GfK, with lots of internal changes and developments. Following Gary Lamb’s semi-retirement back in September 2014, we welcomed our new MD, Catherine Eddy, to the business in January. This was also the opportunity to bring our two Australian businesses together, under one leadership. So, now, our tracking business (point of sale, audience measurement, social media/ digital tracking, and sell-in) is combined with our consumer qual and quant business. This presents some interesting opportunities for combining research techniques for more powerful insights. We are also moving into the space of advanced analytics, which means you can do a whole lot more with existing, and external, datasets. What are your predictions for the second half of the year? Looking at the technology and appliances sectors, we saw some uplift in the early part of the year; the first positive trend for quite some time. Following the federal budget announcement on tax breaks for small businesses, we’d expect year-on-year growth to continue into the second half. If we remove smartphones from the equation, we’re probably talking about pretty moderate revenue growth, but growth nonetheless. What opportunities do you see for the electrical retailing industry? It’s been positive to see a focus on medium to higher-end products in the past 12 months, driving increases in average prices in many segments. This indicates a renewed focus on value, rather than volume share competition. Specific growth drivers are likely to be the emerging health and fitness tracking segment (December unit sales for health and fitness trackers were higher here than in the UK!), and the lifestyle-related segments that are continuing to drive growth in the appliances sector. In technology, a shift of focus back onto notebooks is bringing value back into the IT sector, and it’s also due to be a strong year for smartphones. What threats are currently present in the industry? Another driver of growth earlier in the year was the significant increase in sales of major domestic appliances. Although this has been a welcome trend for the industry, this is a sector that, on an annualised basis, usually remains pretty flat. So, this early uplift could lead to a slight ‘hangover’ effect later in the year. Looking more broadly though, the most significant threat to the industry is the general economic environment. What is your favourite product of 2015 so far? I celebrated my birthday recently and was given a health and fitness tracker. I’m now obsessed with my sleep patterns, heart rate, and daily steps. It’ll be interesting to see how long my resolve to stop using the lift at work actually lasts! ◗
Paul Reid Managing Director Panasonic Australia
How has the first half of 2015 been for your business? Panasonic has continued to perform solidly through the first half of 2015 with particular highlights being appliances and air conditioning, along with televisions and imaging products. While the market has been fairly flat, overall we are trading well. What are your predictions for the second half of the year? We are hoping to see consumer confidence begin to improve and we expect the recently announced small business tax break to contribute positively to retail sales in the coming months. On the other hand, we fully expect competition to intensify in the lead-up to Christmas and we are working hard to make sure we have compelling products and offers for our partners as we approach the peak selling season. What opportunities do you see for the electrical retailing industry? As consumer shopping behaviour continues to evolve, electrical retailers should look to continuously review and redefine their value proposition by asking the question, ‘What is the compelling reason for the customer to choose to buy from us?’, and to make sure this value proposition can’t be easily emulated by competitors. What threats are currently present in the industry? We have entered a phase in our industry characterised by severe competition, transparency of pricing and an informed and empowered consumer. This has become the ‘new normal’. Industry players can view this either as a threat or an opportunity. I choose to view it as an opportunity! What is your favourite product of 2015 so far? Definitely the new Panasonic HX-A1 Action Cam, which is incredibly small, lightweight, weatherproof and with night-vision capability. I’m planning to take it skiing this winter and while I’m sure I’ll get some great video, I don’t think it will do much for my technique! ◗
"I'm convinced that about half of what separates the successful entrepreneurs from the non-successful ones is perseverance." — Steve Jobs.
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✱ 2015 Mid-Year Report Card Matt DeMoss General Manager Garmin Australasia
How has the first half of 2015 been for your business? It has been a strong first half of the year for Garmin across all of our categories. Fitness is a rapidly growing category and we continue to gain momentum in this space, especially with the recent launch of Vivoactive, Garmin’s first GPS smartwatch for the active lifestyle that takes you from work to workout. What are your predictions for the second half of the year? Garmin offers products across many categories and they are all experiencing solid growth. However, I believe the fitness category will continue to grow rapidly in the second half of 2015. As we head into spring and summer, people are looking to get into shape and spend more time outdoors, so fitness will be a priority for consumers in the second half of the year. Of course, with seasonal gifting periods such as Father’s Day and Christmas, activity trackers and smart watches are going to be top of mind, as well as products like our VIRB XE action camera that will start shipping from July. What opportunities do you see for the electrical retailing industry? Consumers are more health conscious than ever before, making fitness an area that has huge potential for retail. Garmin is constantly innovating to ensure we have products to suit all customers, whether it’s everyday people looking for a no-frills day-to-day fitness tracker, or elite athletes looking for specialised training trackers for cycling, running or triathlons. There’s also a lot of opportunity for upselling and accessory sales. We’ve got a range of interchangeable coloured/patterned band options. Garmin’s Jonathan Adler range, for example, comprises affordable designer bands for the more fashion-conscious consumer. What is your favourite product of 2015 so far? Garmin has already brought so many great products to market this year but our waterproof vivoactive is one of my favourites so far. Featuring full smartwatch capabilities combined with multiple GPS-enabled sports & training apps, it’s unlike any other offering in the market. ◗
Graeme Cunningham Chief Executive Officer Betta Home Living
How has the first half of 2015 been for your business? We have had a better than expected start to the year with improvements across most categories. The first quarter was up overall with Q2 starting a little slower but now trending up. We are predicting the first half will finish ahead of last year, with some categories doing particularly well. What are your predictions for the second half of the year? Based on our performance in the first half, we remain positive for the year overall. The recent budget has lifted consumer sentiment, which is good for the economy, and for retail generally. If we factor in the recent interest rate drops, the potential for a further cut, along with our own marketing activities, we believe the second half should show growth over last year, as consumers become more confident. What opportunities do you see for the electrical retailing industry? We are still seeing increased demand for more premium products in key categories. ASPs in some areas are increasing because of this, which is good for the industry. These new product introductions, particularly in the premium segments, provide us as an industry with the opportunity to attract the discretionary consumer spend. What threats are currently present in the industry? If we set aside the external economic factors, I don’t believe the threats have changed too much in the last year. We are still seeing some categories declining in value, so the challenge still is to maintain the revenue in the business. Another challenge, which is always present, is the attracting of the consumer spend from other industries. The strong communication of new products coming to market through comprehensive marketing campaigns will help achieve this. What is your favourite product of 2015 so far? There is not one that stands out on its own. The design and styling of the some of the new cooking products we are seeing, from a couple of our suppliers, is quite striking. ◗
View from the frontline… “We’re going pretty well, especially in high-end whitegoods, which have been moving faster. Since the cyclone, people are starting to spend a bit more money when replacing products. “But TVs and home theatre have been a bit quiet for us. Overall, it’s been a better year than last year.”
…with Craig Lanson, Yeppoon Betta Home Living in Yeppoon, Queensland.
In a GfK survey, 16-to-21 year olds were more likely to shop exclusively in stores for mobile phones.
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2015 Mid-Year Report Card ✱ Jason McLean Director – Consumer Imaging Canon Australia
How has the first half of 2015 been for your business? We’ve done more in the first six months of 2015 than in any other year. This includes launching our first-ever TV series Tales By Light, our Vivid Sydney partnership and a number of Canon Collective events, all of which inspire and help people surprise themselves with what they can achieve with imaging. Adding to this we’ve had major new products launching. These include the groundbreaking EOS-5DS/5DSR with 50.3-megapixel ultra-high resolution, which is ideal for people such as landscape and studio photographers, the drone-ready XC-10 camcorder with 4K resolution, and the new Maxify printer range for driving efficiency and productivity for small business. What are your predictions for the second half of the year? We’re going to keep finding ways to inspire and celebrate as many imaging consumers as possible. The feedback we’re receiving from consumers and our partners who leverage the opportunities we are creating for the industry tells us we’re on the right track. We’re bucking trends in the global imaging market and are a clear standout in the Canon consumer business worldwide. What opportunities do you see for the imaging industry? Staying relevant to the consumer is the key for the industry. That means making the necessary changes and not doing what you’ve always done. What threats are currently present in the industry? Unwillingness to change and putting self-interest ahead of the consumer experience will be the defining factors of success or failure. What is your favourite product of 2015 so far? I’d say it’s between Tales By Light and the Vivid Canon experiences. We have many innovative new ‘products’ this year in the typical sense of the word, but it’s how we make them relevant to people’s lives that will keep consumers knocking on our retail partners’ doors to find out more. We know that consumers visit a retailer 2.4 times on average to make their purchase, and these high-reach programs provide the inspiration to start that process. We had up to 10,000 people through our doors at Vivid per night to print photos and surprise themselves with what they can achieve. The excitement and demand for print and creative imaging is huge, and how our partners cater to that in their stores is where the opportunity lies. ◗
Brad Duea Managing Director Americas-Pacific Sonos
How has the first half of 2015 been for your business? There has never been a better time to be a music lover. We are continuing our meteoric growth and filling more homes with music all around the globe and Australia is no exception. As more music services like Apple Music and Tidal continue to show the joys of listening to any song or album you want, we will undoubtedly see our growth continue. What are you predictions for the second half of the year? For the second half of the year we will certainly see an acceleration in the number of people who will experience listening out loud in their homes. As streaming music becomes the norm, we expect that much of that music will be played in the home. Multiroom audio systems like the Sonos smart speaker system will undoubtedly become part of more people’s entertainment ecosphere at home too. What opportunities do you see for the electrical retailing industry? Custom integrators have a fantastic chance to make life-long advocates out of new and existing customers by unlocking the powerful experience of listening wirelessly in the home in as many rooms as they’d like, to all the music on earth, with Sonos. The key part we know from our research is that those customers become powerful promoters of their experience to everyone they know and the best source of referrals. What threats are currently present in the industry? The biggest threat to the industry is the ‘good enough’ mentality currently in most entry level home audio. Gone are the days of large speakers, components and tangles of wires that visually take over a room. Gone too is the perception of a system being complicated to operate. Today, the simplicity of placing a wireless smart speaker in any room, controlling it with the smart device like a phone or tablet, having it sound rich and natural and not stifled nor interrupted by text and email notifications – should have every dealer in the industry fired up and out there converting everyone they see to the joys of wireless home audio. What is your favourite product of 2015 so far? Beside all the great speakers Sonos makes, I’m most excited for the accelerated growth of streaming services and more importantly the awareness of streaming by today’s modern music lover. There truly has never been a better time to listen to music in the home. ◗
Physical stores and virtual shopping are likely to co-exist, supported by Virtual Fitting Rooms and Click & Collect.
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✱ 2015 Mid-Year Report Card Michael Jeanes Managing Director Miele ANZ
How has the first half of 2015 been for your business? The first half has been building each month to a point where June is shaping up to be a record month that should tip year-to-date sales into double digit growth. What are your predictions for the second half of the year? All the signs point to the second half continuing at the same rate and we have factored this into our advertising and promotional plans. However, there are state differences, with Western Australia’s performance in stark contrast to the growth that we are experiencing across all channels in the Eastern states. What opportunities do you see for the electrical retailing industry? While the housing market remains buoyant, this presents the industry with the opportunity to encourage the end consumer to upgrade as they can clearly see a long term return, particularly on investments in premium cooking. What threats are currently present in the industry? There is a trend that is growing among specialist cooking retailers to dress up nonpremium brands as premium, in order to inflate margins. In my view this is a big mistake and underestimates the intelligence of the customer in seeing true value. The huge growth in sales we are experiencing in our Miele Centres would appear to support this observation. What is your favourite product of 2015 so far? The Miele W1 laundry care system is the first laundry appliance range in some time to offer an added value proposition in this important category. It should appeal strongly to premium cooking retailers as an opportunity to upsell in a category where there has been little innovation and declining ASPs. ◗
James Vogdanos Marketing Director ASKO
How has the first half of 2015 been for your business? ASKO has seen growth in value and in quantities for the first half of 2015. We have been able to launch new kitchen lines like Pro Series and gain an immediately positive reaction. What are your predictions for the second half of the year? Based around the fact governments are endeavouring to stimulate spending, ASKO does not foresee a decline in consumer sentiment. Historically the second half of the year is better than the first. What opportunities do you see for the electrical retailing industry? I think the industry should look at driving innovation as a method to improve the erosion of price. What we are seeing is that consumers are willing to pay higher prices for innovation that helps with simplifying daily chores. What threats are currently present in the industry? Simple – ourselves! What is your favourite product of 2015 so far? ASKO Duo Fusion: a cooktop that combines both gas and induction in one sleek form factor. The Duo Fusion also won a Good Design Award in 2015. ◗
Rodney Block Head of APAC Sales GoPro
What opportunities do you see for the electrical retailing industry? The ways and means to interact with CE products at point of purchase in store continues to evolve. It’s a great opportunity to get consumers closer than ever before via engaging and interactive display units in store. Visual interaction, hands-on engagement and touch and feel provide bricks and mortar retailers with an undisputed advantage. What threats are currently present in the industry? A level playing field for traditional retailers in relation to GST on online purchases. We all benefit in the ecosystem of keeping dollars in Australia. What is your favourite product of 2015 so far? Our recently announced Hero+ LCD. Basically, we want to make sure that GoPro is accessible to everyone and we are targeting the entry level user. Hero+ LCD takes a lot of our pro-level features but with an entry level pricetag. ◗
The mobility sector recorded 25 per cent value sales growth in Q1, 2015, driven by smartphones and wearables.
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2015 Mid-Year Report Card ✱ David Gilmore Managing Director Glem Gas Australasia
How has the first half of 2015 been for your business? There has been a significant improvement on 2014 but it is a period of transition for us and we seem to be working very hard for the future just as much as working for today. What are your predictions for the second half of the year? It will be better. In cooking it always is. Colder months, the run up to Christmas and a little more cash in the pocket after tax refund time always creates a better sales environment for cooking. What opportunities do you see for the electrical retailing industry? The magic wand is for us to be able to create offers and shopping environments that support immediate purchase. When all we do is sell information to enable a purchase elsewhere we are not winning the game. Suppliers have to be totally committed and confident in their retail partners. We can’t jump around and spread our offers to more and more retailers. We have to be monogamists and stay loyal. What threats are currently present in the industry? Thirty years ago, when I first entered the industry, we were worried about cheap imports, too much discounting and poor margins. The same things still keep me awake at night. What is your favourite product of 2015 so far? I’m loving the Bi Energy cooker. It has what we call our Energy Selective oven where you can choose electricity or gas. We invented it here in Australia. This year it won the Good Design Award. It is a cracker of a product. Just switch the oven to run off gas for a moist cooking environment. No mucking around adding water and steam, the gas does it all for you. ◗
Jeremy Needham Managing Director Mitsubishi Electric
How has the first half of 2015 been for your business? Since January, we have maintained the strong business growth that was a highlight of the second half of 2014. Many of our customers recognise that supporting our brand means we support them with a consistent supply of high quality products at competitive prices: an excellent formula for success. What are your predictions for the second half of the year? We are expecting the highly competitive marketplace is the ‘new norm’ and that we will have to continually evolve to stay ahead of the pack. Working closely with our retail partners to ensure that as a team, we offer the consumer great value for money, is the key to success. What opportunities do you see for the electrical retailing industry? Retailers who consistently evolve to meet the demands of their customer base whilst maintaining good, old-fashioned customer service will flourish and grow. Presenting ideas that add value to the retail experience but not the cost will be a main stay of the successful operator. What is your favourite product of 2015 so far? There are two stand-out products from 2015 so far. Earlier this year, Mitsubishi Electric launched the MR-WX743Y, our flagship multi-drawer refrigerator. One thing that continually surprises customers is its large 743-litre capacity with its compact footprint. It’s featured packed with Versa Drawer, Super Cool freezing and chilling, hot freezing and non-plumbed ice maker. ◗
View from the frontline… “It’s fair to say whilst the year overall has been strong, the challenge is always to find new ways to engage and drive clients to our showrooms. We have experienced positive growth in our retail showrooms and our conversion rates are high. “We’ve continued to see very positive engagement around the purchase of induction cooktops and pyrolytic ovens. Whilst the eastern states are still skewed towards the use of gas, our sales show that we have around a 70 per cent success rate after demonstrating the benefits of induction cooking in-store. “Pyrolytic ovens is very strong category. Cleaning your oven is a thankless task that takes hours so being able to remove that chore is a no-brainer. Refrigeration is a very competitive sector and does suffer from price erosion from the mass-produced brands. We still see refrigeration along with wine cellaring as categories that offer growth potential especially around the premium brands we sell.”
…with Peter Lawson, Rawsons Elite Appliances in Adelaide, South Australia.
“Out of clutter, find simplicity. From discord, find harmony. In the middle of difficulty lies opportunity” — Albert Einstein.
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✱ 2015 Mid-Year Report Card John Ciaglia Commercial Manager Nespresso
How has the first half of 2015 been for your business? Nespresso has had an eventful first half of the year. In the first six months of 2015, we’ve launched two new machines and five new Grand Crus, two of which were unique Limited Edition coffees. The launches have been extremely well received by our new and existing Club Members. During the first half of the year we also brought innovation to the retail category through the introduction of Nespresso Pop Up Boutiques. These three new Pop Up Boutiques are designed to improve accessibility for our Club Members and test potential permanent locations. What are your predictions for the second half of the year? Our focus for the second half of the year will be to build on our already robust coffee credentials, expand our recycling program, and keep innovating ways in which we can best meet the changing needs of our Club Members. We have exciting new products on the horizon for the next few months, including the introduction of our new ‘Pixie Clips’ machine which will offer consumers an exciting new way to style the look of their machines in a way that will suit any kitchen environment, perfect for design-lovers. Nespresso also continues to surprise and delight Club Members with Limited Edition coffees throughout the year. Through all areas of our business, we continue our quest to bring convenience and the ultimate coffee experiences to Australian coffee connoisseurs. What opportunities do you see for the electrical retailing industry? The electrical retailing industry continues to evolve, giving Nespresso even more opportunities to adapt its business model to meet the needs of Australian coffee lovers. At Nespresso we try to anticipate consumer expectations and adapt to contemporary lifestyle preferences. As Australia is a nation of coffee connoisseurs, we continue to see demand for only the highest quality. Due to this, Nespresso coffee experts continually select only the highest quality beans from the world’s finest coffee producing regions. Only 1-to-2 per cent of the coffee grown globally meets Nespresso’s specific taste and aroma profiles and its high standards of quality to meet our Club Member’s desire for the perfect coffee. It’s not only quality that ensures the return of our loyal Club Members, but also unsurpassed customer service and the ultimate convenience. This year, we take our retail experience to a new level, with the introduction of three Pop Up Boutiques. This is a condensed version of our permanent Boutiques, stocking selected machines and our full range of 23 Grand
Crus. One of the Pop Up Boutiques is at Sydney Airport’s T2 Terminal, offering convenience to the busy traveller. This offers customers tailormade, convenient services to enhance the Nespresso experience in even more locations than ever before. What threats are currently present in the industry? There are now more players in the capsule coffee category than ever before. This makes it an important time for us, as the pioneers of the category, to reinforce that Nespresso is more than just a machine. Nespresso offers only the highest quality to Australian coffee lovers. When you buy a Nespresso machine you join The Nespresso Club, giving you 24/7 access to our knowledgeable coffee specialists who provide advice on coffees, machines and accessories, as well as instantaneous product orders. Our innovations and services continue to set the standard for customer care and provide a level of added value, unmatched in the industry. This is why our Club Members continue to choose the genuine quality of Nespresso. What is your favourite product of 2015 so far? I am proud of our latest machine innovation, the Lattissima Touch, which in May received the prestigious Good Design Award. This intuitively-designed machine is for the true cappuccino lover. It features a modern streamline aesthetic, is simple to operate and offers six beverage preparations: Espresso, Lungo, one-touch Cappuccino and Latte and the new additions of Milk Froth and Ristretto. My recent favourite Grand Cru is the Limited Edition Pure Origin coffee, Perú Secreto. Nespresso continues to focus on our coffee expertise by exploring unique coffee regions around the world to find the best growing conditions for quality coffee. ◗
View from the frontline… “It’s been extremely quiet because we are controlled by what happens in the mining industry. People aren’t really buying and I think it’s going to be a long haul. I can’t see it changing until the mining industry picks up. We’ve been through this before but this seems to be a little bit drawn out this time. “Whitegoods in general are our backbone and we survive on our whitegoods sales.”
…with Paul Matthews, Bi Rite Electrical in Mount Isa, Queensland.
Smartphones increased in price by an average of 15 per cent in Q1 this year, compared with the same quarter last year.
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2015 Mid-Year Report Card ✱ Jim Kalotheos National Marketing Manager Smeg Australia
Scott Browne & Craig Gabb National Sales Manager – Home Appliances National Sales Manager – Personal Care Spectrum Brands
How has the first half of 2015 been for your business? We have had a solid first half of the year in both our Home and Personal Care businesses. What are your predictions for the second half of the year? For Russell Hobbs and George Foreman, we anticipate products delivering healthy food options will be strong as consumers continue to strive to eat food that is better for them and they can control the ingredients that are added in. For Remington, consumers will continue to look for products that deliver professional results and they are prepared to move into higher price points to obtain these products, as long as they still perceive that they are getting good value for their money. What opportunities do you see for the electrical retailing industry? Opportunities for the industry are to make the consumer shopping experience and product selection process in store as simple and enjoyable as possible. In the online environment it should be easy for consumers to research products to either lead them into store to buy or to make an online purchase. What threats are currently present in the industry? Further currency erosion putting more pressure on prices. What is your favourite product of 2015 so far? In Home Appliances, the Russell Hobbs Aston 4 Slice Motorised Toaster offers a stylish and intuitive design with a vast array of functions including a multigrain and wholemeal toasting function, a digital countdown timer and a keep-warm function. Over in Personal Care, the Remington Keratin & Argan Oil Nourish is a time-saving straightener designed to simultaneously style and nourish for beautifully strong, healthy and shiny locks. ◗
How has the first half of 2015 been for your business? Last year’s trajectory has continued with the first half of this year continuing double digit growth. We feel there is a continued appreciation of where the Smeg brand has been and where it is going. Part of our strategy is an aggressive new product release program, which includes new induction cooktop models and the entry into new categories, such as our successful small appliance products program. Meanwhile, major national media plans and the sponsoring/involvement of premium food and design events such as Melbourne Food & Wine Festival and Indesign are keeping us squarely in our customers’ focus. What are your predictions for the second half of the year? The market will continue to get more competitive, especially in the whitegoods space. As long as consumers remain upbeat about the bigger economic issues, then there is room to continue to grow. Our continued new product program release will assist retailers to enjoy this growth and the continued potential and strength of the Smeg brand. What opportunities do you see for the electrical retailing industry? We hear so much about technology and how it is changing the face of retailing but which electrical retailer is really creating those unforgettable experiences with our customers? I think there is still a huge opportunity to merge these two things. What threats are currently present in the industry? I think the big one is still not having the customers’ best interests in mind. Through our pre-, post- and in-store cooking demos, we interact a lot with end consumers and quite often in our own showrooms. It’s amazing how many of these people still complain about retail customer service. And these people are only going to start looking for purchasing alternatives if current channels don’t step up to the mark. What is your favourite product of 2015 so far? It’s only in its infancy but I have to say the new Smeg kitchen mixer. It says so much about who we are and what we represent: performance, personality and iconic design! ◗
“To improve is to change; to be perfect is to change often” — Winston Churchill.
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✱ 2015 Mid-Year Report Card Paolo Albertoni CEO De’Longhi Australia (De’Longhi, Kenwood, Braun, Nespresso, Nescafe)
How has the first half of 2015 been for your business? Although the market is challenging in different categories, De’Longhi has been able to grow the business with the new product innovations launched for Mother’s Day 2015. Some key drivers for this were strong above-the-line activity, including the Nespresso Lattissima Touch, Nescafe Dolce Gusto and De’Longhi Multifry advertising, as well as sponsorships and product placements in popular programs like My Kitchen Rules and The Block, and the MercedesBenz Fashion week. Also of special mention is a solid result in the comfort category, driven by cold and wet weather on the Eastern seaboard. What are your predictions for the second half of the year? The differential between success and failure seems to be around new categories and products driving consumers to purchase. The second half looks promising, with a strong appetite for kitchen appliances with the commercial and renovation market showing strong signs of growth in the second half. Anything that links to health and wellbeing, fashion, luxury and simplicity will also deliver strong results in the second half of the year and we are very well covered in all these highly on-trend segments and we will continue to invest in them. What opportunities do you see for the electrical retailing industry? Hot and cold blending, multi cooking, easy-to-clean functionality, trendy colours and fashionable appliances, and a resurgence in the coffee category around premium solutions (fresh beans, capsules and pods), are all shaping up to be key opportunities for the retail industry to grow. What threats are currently present in the industry? Retailers attaching to exclusive but no-name brands could become irrelevant to the consumer who clearly purchases on certain triggers, including brand reputation and word of mouth, and less on things like price or discounting. The consumer wants value for money and an experience at the point of sale or they will just go online to get the cheapest price What is your favourite product of 2015 so far? I am already excited about next year but my two favourite products happen to be the new De’Longhi Multifry and the new Kenwood kCook: with these I am becoming a star in the kitchen at home! ◗
George Liakatos Head of Sales Jura Australia
How has the first half of 2015 been for your business? We have continued our strong growth from the second half of 2014. After launching four new models in the mid-to-premium segments, we have seen a positive turn around in automatic coffee machines. Twenty years ago, when we launched the first Impressa, it was not simply a completely new automatic coffee machine but also marked the emergence of a ‘new’ Jura with a new philosophy and a new strategy. Our activities in the first half of the year revolved entirely around this anniversary. For us, innovation is at the core of our business and launching so many new models has been extremely well received by our partners. What are your predictions for the second half of the year? We expect continued growth particularly within the premium and professional segments. The newly announced Small Business package in the recent budget will certainly aid the momentum in this area. Increasing our premium business will not only have a positive effect on our market share but on our overall position within the market. What opportunities do you see for the electrical retailing industry? Investing in innovation is critical to the success of the industry. Already at Jura, we have exciting new products in the pipeline for 2016. This continued development of products within the industry will ensure its continued success. What threats are currently present in the industry? Currency fluctuations pose the greatest threat. On 15 January 2015, the Swiss National Bank’s decision to abolish the minimum exchange rate forced the sudden appreciation of the Swiss Franc. As you would expect, the changed circumstances have led to a number of price adjustments. Our strong growth should help us limit the impact but, nevertheless, the weakened Australian dollar is a concern. What is your favourite product of 2015 so far? It would have to be our new F9 which recently won a prestigious Australian Good Design Award. Inspired by the Australian ‘Flat White’, for the first time in an automated coffee machine, coffee can be poured first to create a more authentic café style beverage. ◗
The small appliances sector grew by 13 per cent in Q1 this year, driven by handstick vacuum cleaners and blenders.
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2015 Mid-Year Report Card ✱ Andre Iannuzzi National Marketing Manager Hisense
Darren Simmons Oceanic Managing Director Acer
How has the first half of 2015 been for your business? We’ve had a very successful start to this year. We started off by expanding into Australia’s largest retailer, Harvey Norman, with a wider presence. They really understand our brand strategy. We’ve increased our market share for the first half of the year and it’s the highest we’ve ever had in Australia. It hasn’t been a sacrifice of low price products but gaining more market share in UHD products in the TV category and refrigeration. We constantly change to keep our brand relevant in the market place.
How has the first half of 2015 been for your business? Business overall, year-on-year, is up and I’m very happy with the retail results. GfK data shows we are up six per cent year-on-year in volume and average sell price (ASP) is also trending upwards. We’ve come out the other side after a difficult restructure. We turned the business around and made a pre-tax profit by focusing on good business and saying ‘no’ to the bad. It’s good news.
What are your predictions for the second half of the year? We predict UHD will be a big thing. We’ve been a leader since we launched UHD two years ago and over 60 per cent of our TV line-up will be UHD this year. A big prediction is the introduction of some new technologies like ultra-dimming, where you get the full solution of deeper blacks and higher contrast. We’re very excited and keen to see our new range of products coming in over the next few months. Retailers and consumers alike understand our brand and where we sit.
What are your predictions for the second half of the year? The second half will be successful on the back of a few things, including the launch of two biggies: the Windows 10 operating system and Intel’s new Skylake processor. Gaming will be big: gaming notebooks, gaming tablets and curved gaming monitors. Curved monitors mean a more immersive and super-smooth gaming experience. That’s very exciting for gamers and retailers.
What opportunities do you see for the electrical retailing industry? Whitegoods is a very interesting space for us: it’s really allowing us to be a lot more innovative in design. There’s a lot of talk about The Internet of Things and embedding the internet across all devices and we see this as a very big opportunity for us. We are a very big whitegoods supplier so we feel we are in a good position for this. What threats are currently present in the industry? Discounting remains the big threat and that’s a big focus for us. It cuts out the conversation about features and I think we need to keep educating our customers about solution selling. It sounds cliché but it’s something we want to keep talking to our customers about. What is your favourite product of 2015 so far? My favourite product is the Chill: the ultimate personal home drink machine. There was a lot of noise about it at CES and we’re allowing ourselves the ability to be a bit more playful these days. It’s a personal can and bottle vending machine for pool rooms and media rooms and it’s a non-standard, reference product but we’re seeing a lot of interest in it for media rooms. Also, as a preferred Netflix customer, we have a direct Netflix launch button on the remote control that can be used even when the TV is off and we’re really excited about this and how it will go. ◗
What opportunities do you see for the electrical retailing industry? I still think the gaming space is wonderful. It creates a high average sell price (ASP) and that’s a tremendous opportunity. There’s still more growth to be had in the 2-in-1 market. People still want that magic combination of power and portability and 2-in-1s give them that. Joe Hockey’s $20,000 small business tax break also offers an opportunity for retailers. It gives them the chance to get into SMBs with IT products. What threats are currently present in the industry? I don’t see any threats – I only see opportunities to grow. That’s me. It’s all about the opportunity. What is your favourite product of 2015 so far? Definitely the Acer Aspire R13. It’s a great product: a notebook that folds flat into a tablet. It’s the Ezel Aero hinge that makes it different from other convertibles. You can use it in modes like easel, stand, display and tent, as well as a standard notebook or tablet. You can use it with a wireless pen or use the keyboard. It’s selling very well in retail. We’ve just sold 2,500 to the Australian Bureau of Statistics. I really like it! ◗
“Opportunity is missed by most people because it is dressed in overalls and looks like work.” — Thomas Edison.
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✱ 2015 Mid-Year Report Card Philip Newton Corporate Vice President Samsung Electronics Australia
How has the first half of 2015 been for your business? We showcased amazing advancements on our staple pillars of the business: the latest in Samsung panel technology with our SUHD TVs, our industry collaboration on 4K content with the UHD Alliance, and the most premium Samsung home appliances we have ever announced, including the Active Dual Wash washing machine. Locally, Samsung has launched its SUHD range, delivering screen and panel technology that we believe has astounded many people who have experienced it first-hand. We’ve also launched a smartphone range in the Galaxy S6 and S6 Edge that have been recognised by many experts in the market as being the best Samsung has ever released. What are your predictions for the second half of the year? The second half of 2015 will see a continuation of the strong momentum we have built in smart home technology and products that support ever increasing connected lifestyles that Australians are now leading. Our products and solutions will be increasingly designed to be more connected than ever, intuitive and efficient, and will continue to help simplify our daily lives. There will also be a big focus on our premium home appliance category. Expect big things from Samsung off the back of IFA 2015 in September. What opportunities do you see for the electrical retailing industry? The biggest opportunity that I see for our industry is the continued rise of the Internet of Things (IoT) products and technology that will support great evolutions in the Connected Home category. The age of IoT will enable technology in and around homes and lifestyles to be flexible, responsive and, most importantly, personal. Australian homes with connected products will be able to help people better consolidate the management of technology in the home, whether it relates to audio visual and the entertainment content we consume with our families, cooking and cleaning through Wi-Fi operated appliances, or energy and power management. For example, the Samsung POWERbot — our first robotic vacuum cleaner with suction power — has seen huge success in the CE retail space and we expect this category to keep going from strength to strength with more Wi-Fi home tech. Samsung is in a strong position to take advantage of the evolving connected market, which is expected to grow to nearly $1 billion by 2017.
What threats are currently present in the industry? Consumer needs are rapidly changing and evolving. Our biggest challenge is keeping ahead of consumers and delivering products that meet their current and future needs. We have to remain clearly focused on what the market is telling us and where the opportunities are. In 2015, we have made significant investments in research that explores the Australian way of life in detail we have never seen before. We want to constantly build a deeper understanding for the market and how people can truly benefit from our products and innovation. What is your favourite product of 2015 so far? My favourite product this year will have to be the Samsung Series 9 SUHD TV, which we launched in April. Using nanocrystal technology, our SUHD TVs provide an exceptional home entertainment experience and is a culmination of the outstanding innovation that we’re so famous for. That being said, the Galaxy S6 Edge is something that really attracts attention when you pull it out of your pocket. Its metal and glass premium build really does showcase the quality and style of the smartphone. ◗
Andrew Whitford Proprietor Whitfords of Five Dock
How has the first half of 2015 been for your business? Whitfords has had a strong first half and it appears to be continuing for the rest of 2015. What are your predictions for the second half of the year? With Sydney property prices continuing to grow we will see the renovation market continue to become stronger! People will reinvest in their homes and will be looking for quality appliances. What opportunities do you see for the electrical retailing industry? Most customers are looking for quality appliances with strong brand recognition. It is the retailer’s job to make sure they are sold products that reflect their desire. What threats are currently present in the industry? The internet is continuing to drive margins down and hopefully time will clear out some of the cheap sites that don’t even have accounts with suppliers. What is your favourite product of 2015 so far? The new range of Miele washers and dryers are fantastic and selling well. ◗
Coffee machines were back in growth for the first time in more than two years in Q1 this year.
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2015 Mid-Year Report Card ✱ Peter Harris Chief Relationship Officer Winning Group
Michael Ford CEO The Good Guys
How has the first half of 2015 been for your business? Australian retailers have been faced with challenging conditions in recent times: tumbling commodity prices, rising unemployment and political uncertainty have all put downward pressure on the economy. Despite the challenges, Winning Group has had a positive start to 2015 with strong double-digit growth for the five months to May.
How has the first half of 2015 been for your business? The first half of 2015 has been very positive for The Good Guys in a tough trading environment that is continuing to experience intense competition. We appointed a Chief Merchant and Chief Operating Officer to help align our company structure with our growth strategy and as part of our strategy to innovate through improved business processes and productivity, we have realised improvements as a result of judicious inventory and assortment planning. Home appliance sales have remained strong and the introduction of the premium brand Miele has allowed us to widen our range of high-end brands and further grow our market share in laundry and dishwashers.
What are your predictions for the second half of the year? The combination of a booming property market, the government’s Small Business Package, and record low interest rates should help bolster consumer confidence, encourage Australians to invest in their homes, and also spur small businesses to invest in consumer electronics and other electrical items. From a Winning Group perspective, we are expecting a strong second half to the year. We are continuing to experience double-digit month-on-month growth and the acquisition of Electro Seconds has put us in a good position to further our presence in the clearance outlet space.
What are your predications for the second half of the year? We expect the second half of the year to be strong with some restored consumer confidence off the back of the recently released federal budget. The small business tax break should translate to sales of higher-end tech products as well as TVs and appliances for staff kitchens. Furthermore, home renovation is still a high consumer priority, which provides great opportunities not only for replacement products, particularly home appliances, but also kitchen cabinetry sales.
What opportunities do you see for the electrical retailing industry? Service and distribution are the greatest opportunities for appliance retailers but they are also the biggest differentiators. Instant consumerism is difficult for bulky good retailers to get their heads around, however, those who approach it by putting the customer first will reap the rewards. What threats are currently present in the industry? Price erosion and the volatility of the Australian dollar are threats currently facing the industry. Although competitive pricing is important we also believe that Australians see the value in receiving superior service. Service and distribution will be the reasons why some retailers will succeed more than others. ◗
What opportunities do you see for the electrical retailing industry? The path to purchase for today’s consumer begins in the digital space, so a big opportunity for all of us in the industry is to build a connected retail experience that uses data and insights, focusing on understanding the ‘why’ behind the ‘what’ in order to turn data into insights and then into action across all aspects of the business. At The Good Guys, understanding our customer and their behaviour, both on and offline, has changed the way we approach assortment planning, customer service and conventional and digital marketing tactics. The emergence of the digitally empowered consumer has shifted the power from the retailer to the consumer as expectations have changed in line with their redefined path to purchase. This change has inspired us to build a capability and culture at The Good Guys to move us from having transactional-based contact with our customers to a deeper relationship. It is also the reason we recently introduced our new Concierge program, which is all about cementing an ongoing relationship with the customer post-purchase. What threats are currently present in the industry? The industry is highly competitive with the breadth of retailers in the sector. This has the potential to result in further competitive discounting, which is problematic given the decline in average selling prices we are already seeing. The answer is not competitive discounting resulting in further price erosion across the industry but rather finding new ways to innovate through productivity and customer service, and through technology. What is your favourite product for 2015 so far? That’s easy: Sonos wireless speakers that you control from any device. ◗
“I'm the only person I know that's lost a quarter of a billion dollars in one year — it's very character-building” — Steve Jobs
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✱ 2015 Mid-Year Report Card Mike Putt Managing Director Electrolux
How has the first half of 2015 been for your business? Electrolux Home Products (EHP) has enjoyed a solid start to 2015. In February, we launched the new Westinghouse built-in cooking range which has been very well received by our retail customers and by the broader market. For the balance of our business, some categories have performed better than others: AEG continues to deliver strong results. We’ve also now fully integrated the BeefEater barbecue business we purchased last year under new appointment Troy Hinchco as business development manager – home comfort. What are your predictions for the second half of the year? We remain very optimistic about the balance of 2015 on the back of exciting product launches across various categories and brands, primarily Westinghouse refrigeration, Electrolux cooking and AEG dishwashers. And we will be focusing on supporting these new product launches. What opportunities do you see for the electrical retailing industry? New home building and residential construction affords opportunities for our customers. EHP will continue to provide innovative products with innumerable consumer benefits to meet this surge in property investment. What threats are currently present in the industry? Consumer confidence, as always, is paramount but this year’s budget has been received far more positively than last year’s. Mortgage stress and security of employment are always critical gauges for the industry and its health is reflected in the level of consumer confidence. What is your favourite product of 2015 so far? The new Westinghouse steam oven. ◗
Daniel Bertuccio National Marketing Manager Eurolinx (ILVE, De Dietrich, Artusi, Fhiaba)
How has the first half of 2015 been for your business? It has been very positive. This half of the calendar year is always our busiest time of year; it seems like it’s when all of the missing pieces come together. We are able to execute strategies and there is a larger home renovation window in the first half of the year. People come out of the Christmas period spending more time at home and into February renovations, which results in a busy six months ahead for our business. What are your predictions for the second half of the year? First of all, we are expecting that with rising housing prices, that major renovations may be delayed due to more money spent on property. In saying that though, this is not necessarily a bad thing for the kitchen industry, as people will still replace individual appliances for their new residences. In particular, we are predicting a busy push into September and October, which is the key outdoor cooking/entertaining season (right through to March 2016), especially with the release of the new ILVE BBQ. On a trend note, we are focusing on our new combi steam and pyrolytic set, joining the craze of combi steam cooking — an undeniably current cooking style and industry trend. Eurolinx really has become the home of cooking appliances with all major showroom renovations complete and Fhiaba (available for purchase late 2015) and Artusi joining ILVE and De Dietrich in the Eurolinx family. What opportunities do you see for the electrical retailing industry? I see opportunities for outdoor living and alfresco appliances and products. I believe there is a massive growth opportunity in this sector. What threats are currently present in the industry? The rising housing market in Australia is one, most definitely. This could mean that due to inflated property prices, there may be an adjustment in overall home renovations (including the kitchen), and so perhaps a slight decline in people purchasing entire kitchen appliance packages. However, this could also be seen as an opportunity for Eurolinx and the industry, as it means that there is a mass construction of high-rise apartments underway, opening up fantastic commercial opportunities for us, especially in the built-in (oven and cooktop) appliance sector. What is your favourite product of 2015 so far? I’ve recently been doing a lot of testing of the ILVE Combi Steam Oven (which was released in February 2015), and I am incredibly proud of this on-trend product. Having never used the combi steam method previously, I’m very impressed with how this product works. For example, the steam pulse feature allows you to cut down cooking time by over half while retaining all of the food’s nutrients, meaning it’s full of flavour and not stripped of moisture. It’s the ideal product for the time-poor, healthconscious consumer looking to save space in their kitchen. ◗
In the breakfast appliance sector, toasters and kettles performed well, driven by a shift from plastic to higher-priced finishes.
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2015 Mid-Year Report Card ✱ Alan Sparks Chief Executive Officer Cellnet Group
Damien Lepore Country Manager Logitech Australia (Logitech, UE)
How has the first half of 2015 been for your business? Logitech Australia has experienced strong growth, driven by key categories such as Wireless Music, PC Gaming and PC Accessories. We are bringing further innovation into mature categories such as Pointing Devices and Keyboards, and leading the growing categories with award-winning products such as the UE Boom. In the last 18 months Logitech has won over 50 awards, which indicates the shift Logitech has made from being a product company to a design company.
How has the first half of 2015 been for your business? The year to date has been a period of stability for us as the first half of the year tends to be quieter than the back half. The depreciation of the Australian dollar has dominated the influences for the accessories market during this period and has necessitated general price adjustments upwards as a result. Overall, we are pleased with our result, especially in the face of declining economic indicators.
What are your predictions for the second half of the year? A number of strong engines across a broad range of categories will drive peripherals into further growth. Streaming music is becoming a huge part of the Australian market, aided by Spotify and Pandora, which in turn has resulted in strong growth across the wireless audio market. Australians are in love with taking their music everywhere and sharing in a social environment. UE Megaboom has elevated this experience even further with best-in-class sound quality you can take anywhere. Multi-screen devices are now a key part of the average consumer’s day-to-day workspace, and this will be further compounded with the launch of Windows 10, unifying the user experience across multiple devices. New products such as multi device keyboards will assist today’s consumers in switching between PC, Tablet and Smart Phone input. This will revolutionise the way people use all their devices together. Last but not least, PC Gaming has resurged into the limelight. Gamers are looking for the latest technology and functionality to improve their gaming experiences. Logitech is utilising the Romer-G technology with our latest mechanical keyboard, the G910 Orion Spark, which has been received well by the gaming community. Logitech is stepping up into the gaming community bigger than ever with the signing of The Chiefs, currently the number 1 ranked gaming team in Australia.
What are your predictions for the second half of the year? Traditionally the second half shows an uptick in the demand and volume of technology accessory sales as it’s the time where vendors traditionally launch new devices across their ranges.
What threats are currently present in the industry? With wireless products becoming more available across PC peripherals, we see the demand shift from corded products to wireless products. What is your favourite product of 2015 so far? With the huge category offerings across the brand we have some exciting products coming to the market. The UE Roll is definitely the key product under the UE banner, bringing music to an even more youthful and active customer. Logitech is further engineering and innovating in the Pointing Device market with the launch of the MX Master Wireless Mouse, which is the result of innovation through connectivity and functionality. ◗
What opportunities do you see for the tech accessories industry? Wearables, home automation and gadgets such as drones are the tech accessory sub-categories that are showing great promise of gaining traction and volumes this year. These categories are still in their infancy but as Google and Apple embrace the Internet of Things and offer tailored ecosystems for these solutions, I expect these markets will explode. Higher quality, and therefore increased ASP products, will also provide better returns for distributors and retailers alike. What threats are currently present in the industry? The Australian dollar continues to weigh on the industry where competition makes recouping the decline difficult due to lags in the ability to increase prices. The market is oversupplied and overtraded, with distributors putting further pressure on margins and the viability of the smaller players. Vendors are under margin pressure increasingly and are, in some cases, looking to go direct to retailers. Likewise retailers, in some cases, are thinking similarly without taking into consideration the inventory risks and the supply chain efficiencies. What is your favourite product of 2015 so far? The one accessory everyone loves to hate – the Snap Selfie Stick! ◗
“I have not failed. I’ve just found 10,000 ways that won’t work” — Thomas Edison
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✱ 2015 Mid-Year Report Card Trevor Evans CEO National Retail Association (NRA)
How has the first half of 2015 been for your business? The retail industry has experienced mixed news through the first half of 2015. While we kicked off with a strong start and momentum has been better than in recent years. However, turnover figures for April flatlined, suggesting a number of factors were still holding back our sector. The downturn in the mining and resources sector and drought-ravaged areas around the country explain some regional weaknesses. However, the broader story has been around confidence. Business investment has been weak and household spending patterns are still only recovering incrementally over time. The stalled growth figures also confirmed to the retail sector that the Fair Work Commission’s decision to increase the minimum wage and modern award wages by 2.5 per cent (not linked to any productivity gains in the sector) was off the mark, and did not reflect the reality of employment and business conditions for Australia retailers. The Federal Budget, handed down in May, has brought some much-needed relief. We believe lasting consumer confidence can only come from stable government and predictable policy-making, so it has been pleasing to see the Federal Government taking a steadier approach to budget reform. It was also pleasing to see that the big initiatives in the budget were aimed directly at households and the small business sector. On a lighter note, the NRA has recently held its second annual POD (People, Operations, Development) Summit where we were able to recognise some of the best retailers in the business, so congratulations to all our deserving winners. What are your predictions for the second half of the year? Hopefully many electrical retailers stand to benefit from increased sales resulting from one of the most talked about budget measures — the immediate $20,000 tax break for small businesses with a turnover of less than $2 million per year — an increase on the previous tax break of $1,000. Many retailers have a turnover exceeding $2 million but still consider themselves small businesses. Nonetheless, a large number of retail businesses, particularly in franchising and personal services, might qualify. Many retailers also stand to benefit from increased sales resulting from the measure. Late in each financial year until 2017, many retailers will anticipate increased turnover as other businesses bring forward expenditure and investments to utilise the tax break.
Retailers in a broad range of categories including hardware, electronics, office equipment, furniture and telco would all be expecting the biggest boost from this budget measure, but success is not guaranteed. In an environment where other sectors are declining, and youth unemployment is growing at an alarming rate, particularly in regional areas, the wage increase (effective 1 July 2015), has led many to question where future jobs will come from. The reality is that increasing wages in a way not linked to productivity gains, in times of suppressed economic conditions, does not make economic sense and will cost jobs. Advocates of the increase had argued that it raises workers’ pay without hurting their job prospects, and that it would be socially beneficial. However, the retail sector is one particularly susceptible to its downside, so we are concerned there could be a detrimental effect as retailers attempt to balance the often unavoidable trade-off between jobs growth and wage increases. What opportunities do you see for the electrical retailing industry? Retail is one of the largest employers in the Australian economy — more than 1 in 10 jobs nationwide — so the Treasurer’s move to reduce the tax rate by 1.5 percentage points to 28.5 per cent for business with a turnover less than $2 million will undoubtedly stimulate economic growth and job creation. Once these initiatives come into full effect, small business owners will have greater confidence to hire additional workers, generating prosperity throughout the economy. As mentioned above, electrical retailers are in a prime position to benefit from the budget’s $20,000 tax break, and it was great to see those measures pass the Senate so quickly. What threats are currently present in the industry? The failure of the Federal Government to abolish the GST threshold on imported goods has been a thorn in the side of Australian retailers for many years, and will continue to take its toll for the unforeseeable future, should action not be taken. As with previous stimulus measures, we are still cautious that a percentage of the new investment created through the $20,000 tax break may head offshore, as customers search online for competitive offers from international businesses, so we will continue to put pressure on the government to dump the GST-free threshold on imported goods. The upcoming meetings of state premiers and treasurers, as well as the federal whitepaper on taxation reform, are the next opportunities for the NRA and the whole retail sector to make the case for necessary changes. What is your favourite product of 2015 so far? I’ve been delighted by the launch of Officeworks’ 3D Experience Centre, providing customers with access to the 3D printing market. The concept has generated huge interest because it allows shoppers to touch, play and learn about how to use 3D technology in the store. ◗
Washing machines and refrigerators are currently experiencing double-digit value growth as consumers trade up.
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2015 Mid-Year Report Card ✱ Glenn Andrew Managing Director Dyson
How has the first half of 2015 been for your business? For both retailers and Dyson we’re continuing to see growth as we continue to lead and create new categories. In March, Dyson achieved all of the top 10 selling vacuum cleaners position by value. But, we’re not only number one in floorcare, Dyson is now Australia’s number one small domestic appliance brand. We built on that success with the launch of the Dyson V6 cordless range in April, and two new environmental control products, the bladeless Dyson Hot+Cool fan heater and our new Dyson Humidifier in May. The market is reacting well to the new technology. What are your predictions for the second half of the year? Only 12 per cent of Australian homes own a handstick, so we’ll be working closely with retailers to reach more homes who’ve yet to know Dyson cordless technology. Positively, the sale of our cordless machines is incremental and an addition in the ownership of a full size Dyson. The Dyson V6 Absolute comes with two new cleaner heads, engineered specially for hard floors and carpets. It’s proving hugely popular and follows the success of the previous iteration, DC59, which was the number one selling vacuum in Australia last year. $8 out of every $10 spent on hand stick vacuums purchased in Australia is spent on a Dyson. Moreover, with the launch of two new environmental control products, Dyson Hot+Cool and Dyson Humidifier, we are again invigorating the category with new high performance technology. It’s a great opportunity for retailers to take advantage of. Patented and unique, Dyson technology leads where others poorly imitate. The Dyson humidifier cost over $63.5m to develop and has over 275 patents and 120 patent pending on the new technology. By investing in the category we’re working hard to deliver growth for retailers who back Dyson. What opportunities do you see for the electrical retailing industry? As category leader we bring customers in-store, and we’ll continue to work closely with retailers who support Dyson. This year, Dyson is spending heavily in-store to create a highly impactful sales environment for retailers and customers alike. The V6 range and our new environmental control technology have been launched with impact with 500 new controlled installations. We know that where Dyson is demonstrated we get higher conversion rates. So, Team Dyson is doubling in size and we’ve trained over 1,000 retail staff that are now highly engaged and educated on Dyson technology to help shoppers. Our investment doesn’t stop on the shop floor. Dyson spends $6 million a week on research and development to create new machines and new
categories. This year, retailers can expect Dyson to continue to create new growth platforms, especially in the connected home. The Dyson 360 Eye robot vacuum cleaner is currently going through home trials in Japan and it comes with a new Dysondeveloped app which will let Dyson owners keep on top of the cleaning, even if they are out of the house. For those retailers who work in co-operation with Dyson, the opportunity is there. What threats are currently present in the industry? Dyson is investing in creating new exciting technology for retailers to take to their customers. People coming in-store wanting to try the latest Dyson technology, may be switch sold, eventually going away unsatisfied. Short term gain for the retailer but, by choosing to back companies who aren’t investing in floorcare, retailers are inadvertently damaging the category as whole. With over 1,500 engineers and scientists, Dyson will continue to create new problem solving technology. With a close relationship with Dyson, retailers can reap long term rewards with category first innovation in their stores. What is your favourite product of 2015 so far? The Dyson V6 Absolute. Dyson cordless technology is changing the way people clean. Our research shows it actually increases how many times people clean their home during the week. Because Dyson engineers have designed one of the world’s lightest and most efficient 350 watt digital motors, the cordless vacuum is light in the hand. So, you can get up high, down low and in between. ◗
View from the frontline… “It’s been a tough year in Tassie but we’re tracking slightly ahead of last year. We do very well with brands like Siemens, ASKO, Miele and Smeg. We have concentrated our bathroom department on specialty European quality brands and we were one of the first in the industry to offer the complete kitchen, bathroom, laundry concept. This has certainly given us an edge on some of our competition and we’ve certainly conveyed this to colleagues in the industry. “In appliances and, more specifically, cooking, I think the big growth area now is steam cooking and this accounts for a substantial section of our cooking business. One of the issues has been the amount of brands now available, which has just segmented and devalued the market further, like what has been done to the TV market. You can go to a hardware store now and get a cooktop that is much cheaper, but does not resemble the quality it should, and possibly turns clients off certain products or brands, which is a battle we fight daily. “We offer free state-wide delivery, which has also helped build business over the years all around Tasmania.”
…with Ned Banovich, Elite Appliances in Hobart, Tasmania.
“We’ll float on — good news is on the way” — Modest Mouse.
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✱ 2015 Mid-Year Report Card Philip Perham Deputy Managing Director Fujitsu General
How has the first half of 2015 been for your business? Fujitsu General has had a strong start to the year. While the business’ financial year begins 1 April, the past six months have provided a solid foundation to develop further. The end of summer provided strong sales for Fujitsu, allowing us to maintain our market leading position in the critical retail sector. What are your predictions for the second half of the year? The year ahead is looking healthy. An increase in new building approvals and record low interest rates are showing a positive influence on consumer sentiment. This confidence in the market place, along with the Federal Government’s small business tax incentives, should have a positive effect on retail sales. What opportunities do you see for the electrical retailing industry? Consumer education and product innovation are invaluable for retailers. Fujitsu can deliver both. In the lead up to summer we will be trialling new interactive point of sale nationally. This will coincide with the release of new models with in-built innovation to meet growing consumer need for energy efficient features. What threats are currently present in the industry? While consumer confidence is high, slow income growth and rising unemployment is still a strong influence when purchasing higher value products for the home. Fujitsu General continues to support its retail partners with consistent marketing activity to keep traffic walking through the doors. What is your favourite product of 2015 so far? Task management software called Asana. It’s helping me manage individual and team tasks far more effectively. ◗
Vincent Yip Deputy Managing Director Sony Australia & New Zealand
How has the first half of 2015 been for your business? It’s been an extremely busy first half of the year following the announcement of an extensive range of innovative products at CES that build on the success of last year’s line-up. Our technology is continually evolving to meet consumers’ demands and to further enhance 2014’s product offering. Sony has incorporated state-of-the-art technologies, such as High-Resolution Audio, 4K Ultra HD and now Sony’s new codec, LDAC, into a broader range of our products. We’re particularly excited about our new BRAVIA range of Full HD and 4K Ultra HD LED LCD TVs which feature Australia’s first TVs to run Google’s latest 5.0 Lollipop Android TV operating system. The entire 2015 range has been slimmed down and includes the world’s thinnest 4K Ultra HD LED LCD TV, as well as the world’s first Hi-Res audio TV. Several of our audio products that we have launched, including the High-Resolution Audio NW-ZX2 Walkman, support our new codec, LDAC (low latency codec). The codec allows consumers an enhanced wireless listening experience for their music as it transmits data three times more efficiently than standard Bluetooth streaming. In our digital imaging category, we expanded the Action Cam range to include Advanced Steadyshot technology, which offers superior image stabilisation and 4K Ultra HD POV content capture. We’ve had a lot interest and positive feedback on this broad new range of products so we’re delighted to have hit the ground running this year. What are your predictions for the second half of the year? The second half of the year will continue to be particularly exciting for us as we have just announced three new cameras including the RX10 II and RX100 IV, as well as the new flagship full-frame mirrorless camera, the a7R II, which is the world’s first back-illuminated 35mm full-frame sensor. Sony has received an excellent response from our channel partners on our entire full-frame mirrorless a7 range, so we are looking forward to launching this latest model in August. We will also be focusing on our extensive line-up of new home audio products, from wireless speakers to sound bars, with High-Resolution, multi-room and expanded music streaming capabilities. By developing unique audio technologies, Sony has designed these products to reproduce master quality recordings just as the artist originally intended, while also supporting 4K content. What opportunities do you see for the electrical retailing industry? This is a really exciting time for the industry and the many consumers in Australia who are early adopters of technology. For example, Android TV will offer a true Smart TV experience to customers, as well as a familiar UI for the ever increasing number of Android users. Android TV will allow consumers access to a multitude of new apps, and seamless sharing of content between their mobile devices to the TV through Google Cast.
Prepaid mobile phones returned to growth, boosted by several retailer-specific sales, in Q1 this year.
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2015 Mid-Year Report Card ✱ What threats are currently present in the industry? Consumer education. Technology is moving forward at a rapid pace, and new technologies and standards such as 4K, Android TV, and mirrorless (cameras) are becoming available and integrated into new products. While the industry thinks these developments are exciting, it’s important to ensure we’re helping customers become aware of these products and making sure they understand how innovative additions to devices can benefit them. As technologies progress, if consumers aren’t understanding the value of these advances and only see the price, it may deter them from purchasing something new, preferring to stick with the products that they already understand and are familiar with. Additionally, it’s a constantly changing and evolving industry and therefore it’s vital to listen to the consumers and ensure we are continuing to innovate in a way that offers them the best possible experience. To this end, we work closely with our channel partners to help ensure new technologies are communicated to the consumers. What is your favourite product of 2015 so far? Our spectacular super slim 4K UHD Android TV. It is a striking design that hangs like a perfect picture frame on the wall. ◗
Lambro Skropidis General Manager – Marketing LG Electronics
How has the first half of 2015 been for your business? LG Australia has gotten off to a great start so far, with significant growth for the first quarter up on 2014. What are your predictions for the second half of the year? We are likely to see further growth in the second half due to high average selling price lines and the launch of great products, such as the LG G4. What opportunities do you see for the electrical retailing industry? I believe there is an opportunity for the industry to on-sell product. In the Home Entertainment sector, for example, this a great time to on-sell soundbars and connected Wi-Fi speakers. What threats are currently present in the industry? The Australian dollar continues to be a concerning factor for the industry. What is your favourite product of 2015 so far? The recently launched LG G4. We are very excited for its arrival in Australia. ◗
Chris Egan Managing Director Bissell
How has the first half of 2015 been for your business? Business has been good with sales generally tracking well above last year and with especially strong growth in stick vacuums, complemented by the pre-Christmas introduction of the Bissell Bolt stick vac. The Australian dollar exchange rate weakness and the erosion of gross margins has been a challenge and is likely to lead to price increases across the market. What are your predictions for the second half of the year? Bissell is confident about the second half despite some uncertain economic indicators. We have multiple new products that are updates of existing models and also we will enter additional sectors, which will stimulate Bissell performance and sector trends. These products will also be supported by multiple consumer incentives targeted at extending product application and usage. What opportunities do you see for the electrical retailing industry? Floorcare in Australia is still characterised by relatively low household multiple machine ownership compared with many other countries, which presents an opportunity for higher household penetration levels. In addition, as flooring surfaces change — with more and multiple hard surfaces yet still with high carpet usage — this requires multiple products to care for these surfaces and the potential for multifunctional products, such as Bissell’s Vac & Steam. Exploiting new products such as Bissell’s new PowerFresh Lift Off steam and increasing the awareness and penetration of carpet shampooers is a prime opportunity considering this sector is significantly more advanced overseas. What threats are currently present in the industry? Managing the temptation to go for the easy low price sale. Rather, seek opportunities to qualify and informatively sell and communicate product features, extra benefits and value-add to increase overall sales value. What is your favourite product of 2015 so far? In the floorcare space, the Bissell Bolt has been a great success. It plays in a rapidly expanding market segment, features differentiated contemporary design and is loaded with unique product features, all of which has just been recognised by achieving a Good Design Award. Beyond floorcare, Tesla is a ground breaking automotive concept and the increasing web based entertainment and connectivity options including SVOD are sure to stimulate activity across multiple segments. ◗
“You have to learn the rules of the game. And then you have to play better than anyone else.” — Albert Einstein.
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ROLL UP! ROLL UP! The UE Boom and Megaboom have smashed sales records and now the waterproof Roll (RRP $149) is here for weatherproof fun in the sun, sand and snow. Also in Digital Retailer this month: Action Cameras present an exciting battleground for major brands and new gadgets from Panasonic, Sony, LG, House of Marley and many more!
RETAILER
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ACTION STATIONS!
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t’s a category dominated by one player, but the rivals are lining up for a piece of the action. ShotBox is the newest entrant to the action cam category. Product and brand manager Duane Cubbage says there is a huge opportunity in the market “to be the best, at a better price point”. “We are filling a gap in the market by offering products that are serious contenders to the market leaders yet ensuring that it is still affordable for consumers,” he said. The value proposition is not just for the consumer, but also ShotBox’s trade partners. “Our retailers make money selling ShotBox cameras.” ShotBox is part of Force Technology, the WA-based supplier of mobile phone accessories and peripherals to resellers. Force Technology represents 35 different brands including Samsung, Jawbone and Otterbox, as well as having its own stable of licensed brands and private label products. Through an existing affiliation with Chinese camera manufacturer AEE, Force Technology decided to partner with AEE to move into the action camera space in Australia. Cubbage said that AEE is the number two brand in the global action camera market according to GfK figures. He said it was difficult to get accurate action
ShotBox S71 (RRP $439) shoots video in 4K, has a 16 megapixel stills camera, 10x digital zoom and Wi-Fi connectivity. The G-Sensor begins recording automatically when it senses motion and it comes with a removable touchscreen and is waterproof up to 100 metres.
Available in orange or black, the Panasonic HX-A1 (RRP $299) weighs just 45 grams and is waterproof to 1.5 metres without needing an external casing. It has a unique Night Vision Mode which requires the infrared lens to be attached and an infrared light source to record clearly in the dark.
Toshiba’s Camileo X-Sports Action Camera (RRP $399) has Full HD recording, 12-megapixel stills and Wi-Fi connectivity. It is waterproof up to 60 metres, has an ultra-wide angle lens with 10x Digital zoom and a 2-inch LCD display.
Sony’s 4K Action Cam FDRX1000V (RRP $549) comes with an endorsement from professional skateboarder Tony Hawk: “The camera excelled in every shooting environment, producing stunning 4K footage unlike anything I’ve ever seen before out of a POV camera.”
The Contour+2 (RRP $499) records HD in four different modes, including 1080p and 120 frames per second in 480p with GPS overlays for speed, elevation and distance. With the HDMI out port footage can be live streamed.
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The new GoPro Hero LCD+ (RRP $429) is positioned above the entry level GoPro Hero (RRP $129), but beneath the high-end Hero4 Black and Hero4 Silver cameras. It is built directly into the waterproof housing and is waterproof to 40 metres, has a touch display and new in-camera video trimming feature.
camera data in Australia because not all retailers reported the data to GfK, however, globally GoPro accounts for 70 to 75 per cent share of the action camera space and AEE is the next biggest brand with a 15 per cent share, based on units sold. The partnership resulted in the creation of the brand ShotBox, which launched its first Australian products in December 2014, the S71 with 4K recording (RRP $439) and S60 which records in Full HD (RRP $299). Currently, ShotBox is sold directly to customers online and there was an exclusive first to market agreement with Dick Smith in place from December 2014 which has now expired. Dick Smith is still ranging ShotBox but the brand is looking to widen its distribution strategy and is ranged in smaller retailers and specialty surf, skate and dive shops. To take on the GoPro, ShotBox will be investing heavily in above and below the line marketing push. “You’ve got what is the absolute market leader by a country mile in GoPro, who has very good penetration and they pretty much own the category – when you say you’re going to go out and buy an action camera you invariably say ‘I’m going to go out and buy a GoPro’ – it’s a matter of changing that mentality,” Cubbage said. ■ APPLIANCE RETAILER JULY 15
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NEW GADGETS
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WD My Passport for Mac Available in four colours, My Passport for Mac hard drives come with a storage capacity of 1 TB, 2 TB or 3 TB to safely back up the masses of data we create taking photos and video. RRP from $109 Synnex 03 8540 8888
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Samsung Galaxy S6 Edge Samsung’s premium smartphone handsets – the Galaxy S6 and S6 Edge – are now available in Gold Platinum, Green Emerald 9 (Galaxy S6 Edge only) and Blue Topaz (Galaxy S6 only). RRP from $1,149 Samsung 1300 362 603 002
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Sony Bravia 49-inch UHD LCD X8300C Part of Sony’s mid-range 4K UHD LCD TV series, the X8300C has a new 4K processor X1 chip to improve clarity, colour accuracy and contrast of HD and 4K UHD video and supports Google’s latest Android TV operating system. RRP $2,299 Sony 1300 720 071
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Jawbone UP2 The UP2 activity tracker from Jawbone is the successor to the popular UP24 band with an all-new industrial design that’s 45 per cent smaller than its predecessor. RRP $149 Jawbone 1800 730 691
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Panasonic AllPlay SC-ALL2 A new addition to the ALLconnected audio range, Panasonic’s SC-ALL2 connected speaker allows you to stream music from a mobile device via Bluetooth and create a multiroom speaker system connected by Wi-Fi. RRP $TBA Panasonic 132 600 38
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House of Marley Chant Bluetooth speaker The Bluetooth-enabled Chant speaker is housed inside a case made from crushed recycled bottles mixed with reclaimed hemp and organic cotton. Meanwhile the body of the speaker is made with recyclable aluminium and plastic and features a ring of wood around the top. RRP $99.95 HoMedics 03 8795 4200
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Withings Wireless Blood pressure monitor According to the company, “simply slip on the cuff, turn on the Wireless Blood Pressure Monitor and the Health Mate app will automatically launch. Following a brief set of instructions, you will be ready to take your blood pressure.� RRP $229 iWorld 03 9532 5052
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Linksys MU-MIMO Router EA8500 Linksys Max-Stream AC2600 MU-MIMO Smart Wi-Fi Router (EA8500) ensures uninterrupted Wi-Fi connectivity to all the devices in the home and functioning as if multiple devices have their own dedicated router. RRP $429 Linksys 1800 605 971
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Plantronics BackBeat Fit Plantronics has released an updated 2015 version of its water resistant wireless Bluetooth headset, the BackBeat Fit, which is now available in Red, also known as Lava. RRP $159 Ingram Micro 1300 362 142 010
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Heos by Denon HomeCinema Heos HomeCinema, a wireless soundbar and subwoofer system, connects wirelessly to any flat-screen TV to upgrade the audio quality, while also working as a powerful speaker set for the Heos wireless music system. RRP $1,499 QualiFi 03 8542 1111 WWW.APPLIANCERETAILER.COM.AU
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DIGITAL RETAILER
PANASONIC’S LUMIX DMC G7 NEVER MISSES A MOMENT
The newest member of the Lumix family, the G7 records 4K video and has three new different 4K burst modes to capture the perfect still image. “The technology we are introducing makes missing the moment a thing of the past,” said Panasonic senior product manager Doug Campbell. “We’ve all experienced pressing the shutter button too late by just a fraction of a second. Now with 4K pre-burst, even though you’ve missed the shot, the G7 hasn’t.” Hit the button too late? No problem, 4K pre-burst mode uses buffering to capture one second before the shutter is
pressed as well as after it is pressed at 30 frames per second, so the user will have up to 60 frames to pick from. Similarly, 4K Burst mode and 4K Burst start/stop mode capture a sequences of stills; uses scroll through a ‘carousel’ of images on the touch screen. It is great for photographing kids, pets or sports. Another strong selling point is ‘Starlight AF’ which easily focuses in lowlight, ideal for astrology or pre-dawn long exposure shots. The G7 is available for RRP $899 body only or in a single lens kit (RRP $999), twin lens kit (RRP $1,199), or zoom lens kit (RRP $1,499).
LG LAUNCHES FLAGSHIP G4 SMARTPHONE LG’s new flagship smartphone is designed to stand out from the crowd. Firstly in appearance, LG has been able to create a durable full-grain leather back cover that can be produced on mass and is ethically sourced. The 16 megapixel rear camera with an F1.8 lens has a unique manual mode which lets the user control shutter speed, aperture and white balance. “The camera in the LG G4 is a truly incredible camera,” said Lambro Skropidis, general manager of marketing at LG Electronics Australia. “We are aware of how important smartphone cameras, and sharing the pictures taken on them,
are to the daily life of our consumers. The combination of great technologies and the custom settings in Manual Mode will ensure photographers of all abilities, from amateurs to professionals, always have the tools available in the palm of their hand to capture amazing photos.” The G4 will be available mid-July in three SKUs: Tan (brown) full-grain leather back, gold rear key and bonus Shiny Gold textured back cover (Outright RRP $929), Black full-grain leather, grey rear key and bonus Titan Grey textured back cover (Outright RRP $929), and Titan grey textured rear cover with grey rear key, no leather (Outright RRP $869)
SONY ANDROID TV RANGE ARRIVES IN AUSTRALIA Sony Bravia X8300C (RRP from $2,299)
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Sony’s 2015 Bravia TV range arrived in Australia last month after being first unveiled in January at CES. The new Ultra HD LCD models range in size from 49- to 75-inches and include four new series and nine new models. The top of the range Ultra HD TVs — the new X9000C and X9100C series — feature a new ultra-thin floating style, making it Sony’s thinnest range of TVs yet. The televisions will support Google’s latest Android TV operating system, making it easy to stream video and function as a gaming device, as well as provide additional features like Google Cast and Voice Search. Google Cast enables users to cast content from mobile devices to the TV. Voice Search is available through a remote equipped with a microphone. There is also a new range of Full HD TVs called the W Series, available in sizes ranging from 43- to 75- inches. The W800C and W850C models come with Sony Android TV, Google Cast and Voice Search. WWW.APPLIANCERETAILER.COM.AU
RETAILER
APPLIANCE
l a i c e p S Feature
BROWNGOODS WHITEGOODS SMALL APPLIANCES COMPUTERS & COMMUNICATIONS
Main partner
2015
Father’s Day Feature
✱ father’s day
e h r t ’ a F Da y s t i e r s u o v a F
The art of the good sell is never more relevant than at peak selling times like Father’s Day, which this year falls on Sunday September 6. By Kymberly Martin
A
lthough shaving is a wellestablished category and part of the male grooming routine, men are apparently still confused about what they need to do to get that perfect shave. This has become more critical especially as new attributes and innovative features are launched. According to Tom Paltridge, senior marketing manager at Philips Consumer Lifestyle Australia, while
Philips seeks to deliver the best hair catching and hair cutting technology, the company recommends that a “great shave starts with contour, following the shaver’s ability to make contact with the skin at all times.” Without this, Paltridge added, “the other great attributes of the shaver are redundant. “With it, the hair catching and cutting technologies will then build on this to deliver the closeness of shave that men generally want.”
This Father’s Day, Philips will be supporting the Philips Shave Series 5000 AquaTouch with a TV campaign and point-of-sale activity. The Philips Shaver Series 7000 will receive the backing of a digital marketing campaign bolstered by an element of print advertising. Paltridge said it was essential that sales staff be informed about the range available in their stores and online so they are better equipped to provide customers with valuable information to encourage purchase. “Our own focus groups have shown that store staff can play an important role in the customer decision journey.”
father’s day ✱ The Philips Shaver Series 7000 (S7710 RRP $349) incorporates a beaded coating around the shaver heads to reduce skin friction and improve glide, SmartClick trimmer for beard, facial hair and sideburns in addition to a convenient LED display indicating battery life and cleaning cycle.
Father’s Day snapshots • Men — and those buying gifts for men — may not be aware of the technical details of which distinguish different shavers, therefore sales staff should be able to clearly explain innovative new features. • Personal care products that were once considered female purchases, such as IPL hair removal products and facial cleansing brushes, are now considered unisex. • Activity trackers and gadgets for driving, cycling and running are popular Father’s Day gifts. While product knowledge is a must, he believed it was beneficial for retail staff to be up-to-date on shaving market trends and grooming styles as well as current research to understand what customers wanted now and what they might want in the future when trends become more widely adopted. “This allows store staff to demonstrate their knowledge above and beyond their products and find new angles to secure a sale.”
Paltridge said 50 per cent of Australian men self-report sensitive skin after shaving. “This may be a result of poorly designed products, bad shaving techniques or because they are shaving less and their skin is not used to friction. We believe more men will be looking for products that address this sensitive skin problem and would prefer to have a demonstrably smooth shave that is skinfriendly as a result.” Philips has three models in its Shaver Series, each with patented functionalities and benefits to suit men of all generations, according to their specific shaving preferences and styles. The
suite includes the versatile Philips 5000 Aqua Touch (S5620 RRP $299.95); the skin-sensitive Philips Shaver Series 7000 (S7710 RRP $349.95) and the Philips Shaver Series 9000 (S9111/26 RRP $449.95; S9111/12 RRP $399.95) which is the most advanced Philips shaver on the market. The 9000 seamlessly guides the hairs for a close shave and flexes in eight different directions for maximum results. It sports a precision trimmer for moustache and sideburn trimming while the SmartClean system cleans, charges and lubricates the shaver. As men continue to jump onto the facial hair bandwagon, efficiency and reliability are growing more important in the personal care market. This trend has no doubt been spurred on by the popularity of global initiatives such as the Movember movement that also raises the profile of men’s health issues. “Grooming hygiene is gaining a larger presence in consumer’s minds and it is important to highlight both the quality and ease of maintenance of a product,” Nicolas Cauzac, Panasonic Personal Care and Microwave product manager, told AR. He said that particularly in peak selling periods like Father’s Day it was worth remembering that there are “timepoor dads out there needing the quickest and easiest solutions to match their lifestyles and self-cleaning technology is the perfect solution for this.” Panasonic’s latest range in personal care includes feature-packed wet and dry shavers that offer convenience, ease-of-use and dependability. Technologies such as Panasonic’s intelligent shaving sensor allow for the ultimate shaving experience, no matter
✱ father’s day Remington’s newest shaver is the Power Series WETech (PR1245AU RRP $99.95), that can be used wet or dry with shaving gels. With a pop-up trimmer and a fully flexing neck with dual tracks to deliver a closer and faster shave it operates four hours on a full charge and 60 minutes of cordless usage.
A shaver that gives optimum results and is gentle to the skin, the Panasonic ES-LV95-S841 (RRP $549) features an intelligent sensor that determines variations in beard density at different locations. It is equipped with three foil patterns designed to cut the most stubborn of beards.
VS for Men offers the Lithium Pro Series range that includes i-Pro Intensive Hair Clipper (VS7475A RRP $132). The heavy-duty 4.OV DC motor provides three times more cutting power than a regular magnetic motor and achieves a 100 per cent evenly finished hair cut in one stroke.
how heavy or thin beard hair is. The hero product in the Panasonic range is the ES-LV95-S841 (RRP $549.95) 5-blade wet/dry shaver that features automatic self-cleaning and intelligent shaving sensor that adjusts the power level based on the beard intensity. Another Panasonic entry is the ES4029 (RRP $89.95) for shaving in the shower or on the go. A wet & dry rechargeable model that is competitively priced, it comes with a 2-blade flexible head that follows the facial contours for efficient coverage and a more comfortable shave. It addresses the easy maintenance issue with rotating blades that draw in water and flush the hair clippings with a built-in miniature motor. At the premium end in the ES-LT71-S541
(RRP $299.95) 3-blade wet/dry shaver with nano-polished inner blades that are sharpened to a 30-degree knife edge that shaves right to the hair root. “Every consumer has different needs and different budgets so it is important to offer products within a customer’s price range that is practical for their situation,” Cauzac said. Panasonic’s camera and camcorder line-up also make great Father’s Day gifts. “The choice of colour options in our ‘tough’ camera range is a fantastic way to personalise a gift,” said Doug Campbell, Panasonic Imaging, Communication and Energy senior product manager. Panasonic’s 2015 offering includes rugged cameras for active families to top quality 4K camcorders.
Tips for selling personal care products… “Seasoned retailers know all too well the pitfalls of seasonal shopping periods – lack of product and poorly replenished shelves. Ensuring these elements are avoided and that your staff has a strong knowledge of the products and their benefits can help lead to a profitable sales period and boost the chances of repeat custom.”
…with Tom Paltridge from Philips Consumer Lifestyle Australia 44
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Many grooming products that were once considered the domain of a female purchaser are now very unisex, according to Maria Russo, Fitzone Solutions director. “We are seeing men buy across the personal care category particularly with items like IPL (Intense Pulsed Light). The Beurer IPL10000+ (RRP $899) SalonPro permanent hair removal system is still the unit with the largest face on the market meaning you can get through an average body size in approximately 26 minutes,” Russo said. It features a lifetime supply of flashes, an auto skin detector for determining skin type and appropriate energy levels to maximise the effectiveness of the unit. It also includes a facial attachment to treat fine areas and has a 5-year warranty. There is new addition to the Beurer IPL family, the IPL7000 (RRP $369.95), with a smaller face it takes approximately 58-minutes of treatment time and also carries a 5-year warranty. Another product with unisex appeal is the Pureo Deep Cleaning Facial Brush (FC95 RRP $149.95). It claims to clean six times more effectively than WWW.APPLIANCERETAILER.COM.AU
AquaTouch Wet & dry shaver
The better way to shave
World’s
NO.
Electric Shaving Brand* *Source: Euromonitor 2013-14.
• Advanced skin
protection
New
• 5-directional Flex heads • 100% waterproof, shave in the shower
✱ father’s day The Sol Republic Shadow (RRP $199) is the first in-ear wireless headphone to feature NASA-inspired biomorphic design making it comfortable to wear all day, paired with great sound and a fashion-forward look. It comes with an easy-to-access microphone, 3-button remote and up to 10-metre wireless range.
The Lumix FT6 (RRP $399) tough camera from Panasonic is the ideal companion for the action dad. Waterproof, shockproof, freezeproof, dustproof and able to withstand up to 100kg of pressure it also records in Full HD. The camera uses GPS to record the exact picture taking environment.
regular washing. It boasts a rotating and oscillating brush action, 3 speed motor and four attachments for different skin types. “Typically what we are finding in this category is that the female is the purchaser, however the male partner or others in the household are also using the same devices. Because the device is waterproof it generally sits in the bathroom and is used by multiple family members,” Russo said.
Another in-store activity involves onshelf packaging that carries information for consumers about the benefits of both rotary and foil shavers. Remington is the only company to offer both. The new SmartEdge Advanced Foil Shaver (XF8550AU RRP $199.95) was given a national release on July 1 after an initial launch through Shaver Shop. The new shaver harnesses Active Hybrid technology that combines the
Tips for selling personal care products… “Father’s Day is all about dad, so ask the customer questions to make sure you are offering them the right products. Allowing consumers to get ‘hands-on’ with the product is the best way to show its functionality. Holding a product also helps communicate its quality and can make a gift feel more special.”
…with Nicolas Cauzac from Panasonic Australia Remington is again offering a 60-day money back guarantee across all its men’s shavers as part of its Father’s Day promotion push. “Customers can purchase a Remington shaver risk free, if for whatever reason they don’t like it they can return it to Remington for a full refund of the purchase price,” said Martin Szymiczek, product manager for personal care at Spectrum Brands. He said there will be no paper work for retailers attached to the promotion as the process is being managed by Remington. 46
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best of foil and rotary shaving in one advanced system. It has a pop-trimmer for detailing sideburns and facial hair and a long lasting lithium battery. The travelling man will appreciate the folding charging stand and worldwide voltage. It delivers up to 50 minutes of cordless use, 120-minutes on full charge and a 5-minute quick charge option. Another new arrival is the Power Series WETech (PR1245AU RRP $99.95) rotary shaver fitted with dual close cut tracks for a closer shave.
Today’s dad wants a gift they can use rather than the traditional tie, socks and undies, according to Cindie Yates, Conair and VS Sassoon category manager. “They seek gifts that are premium, innovative and that fulfil their desire for the latest technology. This is the peak season for shaving, grooming and technology,” Yates said. VS for Men is supporting Father’s Day this year with products to suit every budget. Leading the on-trend grooming products list is the Lithium Pro Series sporting European design, high performance DC motors, premium blade systems and the latest lithium powered technology for superior and longer lasting performance. For the shopper with extra cash there is the i-Trim & Shave Beard & Stubble Trimmer + Dual Foil Shaver (VSM890A RRP $69.95) with its unique precision W-Tech blades, adjustable comb guide for 21 settings and shaver attachment with dual foils. Conair will help keep dad’s feet warm with the battery operated Men’s Massaging Slippers (CVSM20BA RRP $34.95). The slippers have a flexible sole with grip treads to suit indoor and outdoor wear. Yates said the market for massaging items is enjoying consistent strong sales. “Because Father’s Day is often a last minute rush buy for shoppers, retailers need to ensure that they are leading WWW.APPLIANCERETAILER.COM.AU
✱ father’s day Braun has a gift to help keep dads smiling on Father’s Day – the Oral-B Professional Care Electric Power toothbrush PC700 (RRP $69) with 3D cleaning for significant plaque removal that is also gentle on gums. It includes a charger and two year warranty.
For the tech savvy, the Beurer BF700 Bluetooth Body Fat Scale (RRP $119.95) measures body weight, body fat, BMI, muscle ratio, body water, bone mass as well as active and basal metabolic rates. Data can be uploaded through the Beurer health manager app. Data will also upload to Apple’s Health Kit and Google Fit for Android (date TBC).
with a benefit-driven message and supporting consumers at every price point,” Yates said. Braun is doing its bit to boost gift sales offering a 60-day money back guarantee on its range of men’s shavers which are being supported with three special offers to selected retailers. The top-ofthe-line 760CC shaver with its own clean and charge storage unit will sell for RRP $299, normally the RRP is $489. The Braun Cooltech shaver with active cooling technology to calm and cool skin and minimise irritation will be available for RRP $189. This model usually retails at $249. For consumers wanting a gift under $100, the Braun 340S is selling for RRP $99, regular RRP is $169. While shavers dominate the sector, oral care appliances are gradually gaining prominence and are predicted to become the fastest growing segment with a CAGR (Compound Annual Growth Rate) of 9.7 per cent over the next five years, according to a new report by Allied Market Research. Product innovation and a range of price points have contributed to the broader appeal of this segment. Research is also showing that poor oral health can be linked to other health problems. Braun has put a famous sporting face to its Oral-B brand, appointing Michael Clark as ambassador for Oral-B Power toothbrushes. This Father’s Day Braun is promoting the PC1000, PC700 and 48
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These Philips Fidelio NC1 (RRP $349) headphones switch easily between regular headphone sound and noisecancellation while delivering highquality audio. Featuring a built-in microphone and pick-up button in a lightweight and stylish design the headphones took out an iF Design Award in 2014.
Tips to sell fitness gadgets… “Understand the end user – from their fitness level to their lifestyle – and what their needs are. Break down the technology (like connectivity) and the fitness jargon into simple terms and explain how the product will help the end user in real life. It is important for the retailer to know the product well and test it for themselves as the customer is relying on them as experts in their field. Know the features well and don’t forget the accessories.”
…with Noeleen Lechner from Magellan Australia
For the keen cycling dad, the Cyclo 505 (RRP $399) from Magellan is the first cycling device to come preloaded with bike specific tracks, bike centric turn-by-turn navigation and points of interest information. It also comes with built-in Wi-Fi, Shimano Di2 compatibility to help view current gearing status plus indoor trainer and wireless music control.
PC500, with special deals targeting families looking to spend around $99 or $69. The PRO3000 has a pressure sensor alert with a 3D cleaning system that oscillates, rotates and pulsates to deliver what the company described as “that dentist clean feeling every day”. Usually retailing for $199, the PRO3000 will sell at the special gift price of RRP $99 this Father’s Day. Oral-B also has a new Cross Action brush on rechargeable handles that claims to remove 100 per cent more plaque than a manual toothbrush. WWW.APPLIANCERETAILER.COM.AU
father’s day ✱ The Withings Pulse 02 (RRP $199) captures steps, distance walked, elevation climbed and calories burned. At night it monitors sleeping cycles and can measure heart rate and blood oxygen levels. It features a large OLED touchscreen and comes with two weeks battery life (24-hours more on power save mode) and is iOS and Android compatible.
Lost without a GPS? “The key to selling GPS navigation is to advise the customer about the benefits of a dedicated device over and above the alternatives. GPS units are built for cars and drivers so the number of features, quality of information and how it is presented is far better than what you will get on a smartphone or built-in car GPS.”
The first Garmin GPS running watch that measures heart rate at the wrist, the Forerunner 225 (RRP $389) displays a colourful gauge showing zone and beats per minute in real time. The device has a built-in accelerometer that provides distance and pace data for indoor running with no need for a separate foot pod.
…with Wendy Harman from Navman Australia
Another sector creating interest is the growing revolution in connected health products that encourages people to track their lifestyle and help improve their daily wellbeing. The newest entrant in this category is Withings, which claims to be a pioneer in Health 2.0 and is being distributed in Australia by iWorld. In 2009 the company released the first Wi-Fi body scale that allowed users to track their weight directly from their smartphone. The latest collection of lifestyle products covers key aspects of the health spectrum including activity, sleep, weight and heart. “Withings has just expanded its range to include smart watches, advanced sleep tracking and home security,” said Chad DeClase, iWorld Australia director. Wearable technology is the new buzzword with significant growth coming in for the category in the past 18 months. “Retailers are now dedicating more real estate to connected fitness devices including smart watches, activity trackers and cycling computers,” said Noeleen Lechner, Magellan Australia marketing communications manager. “In the ‘internet of everything’ age, when the dust settles, the products that rise to the top are the ones that use technology to give customers real value with benefits that are needed,” Lechner said. One area where wearable supercharges is fitness. “The right device makes working out more convenient WWW.APPLIANCERETAILER.COM.AU
The new Navman MY650LMT (RRP $199) is loaded with features to provide dads with the safest driving experience. These include lifetime monthly updates for Australia and New Zealand, spoken safety alerts, enhancements to Landmarks Guidance Plus, Bluetooth connectivity, Live Traffic updates, driver fatigue alerts and premium driver alerts.
navigation units to be sold in 2015.” The company is also enjoying robust sales from its digital drive recorder range which Hammond expects will continue. “These systems give extra peace of mind knowing that if you are involved in a collision or road rage incident the recorded footage provides solid evidence for police and insurance
and an example of this is our Echo Fit Smart Sports watch that monitors your steps and sleep while streaming live data from your iPhone fitness apps and keep track of your workout. It can act like your own personal trainer and also be worn as an everyday watch.” The GPS market is still strong too, according to Wendy Hammond, Navman Australia country director. “We expect over 400,000 satellite
companies.” Hammond added that this year is all about supporting retailers and Navman is working closely on integrated campaigns. “This is to improve ways we drive customers who are researching for sat-navs and digital drive recorders online, to the final point of purchase,” Hammond said. On July 1 Navman is releasing its latest model, the MY650LMT, with a host of new safety features. APPLIANCE RETAILER JULY 15
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✱ Thermo Cooking What does it do? And, is it worth it? These are the two questions most commonly asked when talking about Thermo Cookers – an emerging and high growth category of multipurpose kitchen machines capable of performing 11 or more functions from prep to cooking. By Tess Bennett
Join the Club P
hrases like ‘all-in-one’, ‘wonder machine’ and ‘all singing, all dancing kitchen machine’ have been used to describe products in this category, however twelve months ago just saying ‘Thermomix’ would have been sufficient. German brand Thermomix has enjoyed an almost unrivalled monopoly over the Thermo Cooker market since the product was brought to Australia in 2001. Since then the WesternAustralian based distributor has sold around 200,000 units for $2,089 through the in-home demonstration model. Sometimes referred to as the ‘party’ model – meaning the product must be purchased from a consultant during a Thermomix party – has kept this category out of retail. This relatively low profile product category came to mainstream attention last year when the market leader Thermomix was ‘awarded’ a Shonky Award from Choice for not informing consumers that a new model of the 50
APPLIANCE RETAILER JULY 15
almost $2,000 appliance would soon be released. This was on top of some very upset and vocal customers who felt duped voicing their complaints on social media. Adding to Thermomix’s annus horribilis was a product recall on its TM31 machine. After doing the hard yards establishing the category, Thermomix had opened the door to its competitors. GfK doesn’t record the data on products sold through the demonstartion channel and the few new products which have entered the market this year have not yet made a significant impact to warrant any specific trend forecasting. Determining the value of the market has come down to rivals working out how many Thermomix units have been sold and multiplying it by $2,000. One estimate puts the value of the market at $290 million by 2019, “bigger than food prep” (which is around $180 million) was another estimate. The potential is massive for retailers if they can claim a slice of this lucrative market.
To bring this product into retail, so far this year we’ve seen product launches from ProAppliances with the ThermoPro (RRP $1,499), Groupe SEB’s Tefal Cuisine Companion (RRP $1,699) and the KitchenAid Cook Processor (RRP $1,999). All three are priced beneath the Thermomix TM5 ($2,089). To rival a competitor with the cultlike following of Thermomix, brands entering this space have meticulously planned their product launches and distribution strategies. For example, in the lead up to the launch of the Tefal Cuisine Companion its distributor Groupe SEB built the anticipation for the launch by inviting interested consumers to join the Cuisine Companion Club, which formed an important pillar of its marketing strategy. Groupe SEB also developed a unique sales strategy, hiring a team of consultants to demonstrate and sell the Cuisine Companion in retail on a pro-forma basis. All Cuisine Companion sales are processed by consultants or registered sales staff via a dedicated online sales portal and a range of payment and finance options will be available. Although customers make the purchase in-store they don’t take the Cuisine Companion home with them, however, as they are delivered from a central location 48 hours after an order is placed. WWW.APPLIANCERETAILER.COM.AU
Thermo Cooking ✱ ThermoPro (PRO-TP, RRP $1,499) has 15 auto programs such as ‘Knead’, ‘Quick Soup’ and ‘Yoghurt’. It also features unique DIY program which enables the user to record and store their favourite recipes and comes with a recipe book containing more than 150+ recipes and a bonus mixing jug (valued at $199).Pro Appliances 1300 764 325
Tefal Cuisine Companion (RRP $1,699) comes with attachments for chopping, mixing and blending, kneading/crushing, whisking, mixing and a steaming basket. The welcome pack includes 1 Million Menus recipe book, apron and kitchen scale. Groupe SEB 1300 307 824
KitchenAid Cook Processor (RRP $1,999) is made of die-cast metal available in a range of colours including Medallion Silver, Candy Apple Red and Onyx Black. KitchenAid Australia 1800 990 990
Groupe SEB managing director, Wivina Chaneliere explained the reasoning behind the pro-forma sales model at the time of the launch. “It requires a lot of explanation, investment and effort to sell a small appliance for $1,699. That’s a lot of money. But once you have it, with the benefits, it just pays for itself,” she said. “We partner with our trade. We do not sell direct, we don’t have any intention of selling direct. We are bringing them excitement, we are bringing them premium and we are bringing the consumer back into store. We are giving them the margins they need to run their business.” After an initial exclusive launch period with Harvey Norman, Groupe SEB rolled out the Cuisine Companion to more electrical retailers and kitchen specialists. Cuisine Companion senior brand manager Bettina Ortega del Rio said there are three broad consumer trends driving this market: consumers are time poor, health conscious and investing in what is called ‘nest & save’ — taking pride in their home and entertaining. “With the Tefal Cuisine Companion business model, retailers can be guaranteed of strong margin and no price discounting. The focus is on the ‘reason to believe’ and the benefits to the consumer. WWW.APPLIANCERETAILER.COM.AU
“Tefal Cuisine Companion is changing the way consumers cook and behave. It’s the future of cooking,” Ortega del Rio said. The Tefal Cuisine Companion Club is a key marketing element of the product roll out. It’s a members only area Tefal website where consumers can access a library of recipes, rate them, download their favourite and save them for future access. Other elements include
Now retired, Posmyk managed a food market, co-owned a cookware store and cooking school, and introduced some of the world’s leading chefs and she prefers to cook things from scratch. But the reality of being able to replace a number of appliances with just one has won her over. “I wasn’t sure about it because I do like to cook from scratch but I must say, it is great,” said Posmyk, adding that she
Thermo Cooking • Recent product launches are our to rival established player Thermomix. • Key benefits of these products include saving time by minimising clean up and prep, easy to follow setting that make it easy to master a range of recipes and create healthy meals from scratch. • The long list of functions include: boil, fry, steam, knead, chop, mince, grind, puree, mix, emulsify, whip, stir, make dough, sous vide and slow cook. FAQs, videos, news, articles, events and demonstration schedule. Canberra food writer and passionate cook Liz Posmyk, is one of the founding members of the Tefal Cuisine Companion Club and administrator of the ‘Cooking with Cuisine Companion’ Facebook page. She said she had reservations about the Cuisine Companion when she was initially contacted to put the new appliance through its paces.
doesn’t stick to the recipe 100 per cent, preferring to do some steps by hand. “I’m just happy to have it on the kitchen bench and really look forward to just investigating it further,” she said. “I think it’s a worthwhile investment.” Posmyk has since replaced her meat mincer, stand mixer, food processor and stick blender. The market for these appliances is people interested in cooking or looking to upgrade their existing appliances. APPLIANCE RETAILER JULY 15
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✱ Thermo Cooking Managing the Facebook page, Posmyk said the most common inquiries are people who’ve purchased a machine and are looking for inspiration, or people comparing notes on their creations. Sold through the traditional wholesale model, is the ThermoPro from ProAppliances. The ThermoPro was released in April this year and national sales manager Mathew Kiley said the brand is investing heavily in the retail rollout of the ThermoPro. In order to convey its features and benefits, Pro Appliances is making POS video screens available for its retail partners, showing the ThermoPro in use. “These video displays help the customer make an informed purchase decision by presenting them with key features and benefits of the product, as well as showcasing a product demonstration,” Kiley said. This will be backed up with inperson, in-store demonstrations in selected stores and targeted consumer magazine advertising. Kiley claims thermo cooking offers customer benefits to reflect health and lifestyle trends. “Take advantage of the health and lifestyle trend pushing consumers to want wholesome, healthy food but also wanting it to be quick and easy. ThermoPro satisfies that demand as thermo cooking is all about cooking from scratch, quickly and precisely with minimal fuss and clean up time. We encourage retailers to accommodate full in-store demonstrations of the ThermoPro to motivate and enthuse customers to purchase. “Themo cookers allow users to take full control of their food preparation. It’s the freedom to eliminate unnecessary additives, colours, flavours, preservatives and the ability to prepare a ‘free from’ dairy/ meat/ gluten/etc meal that is going to be a continuing trend in the Australian market. It’s all about taking control of what you eat by knowing exactly what goes into your food and doing it simply and easily.” A unique feature of the ThermoPro is a DIY program that allows the user to record and save custom settings to easily and quickly produce their favourite meals. Along with being able to freely set 10 different speed levels, the temperature from 37°C to 120°C and timer from 1 second to 12 hours, you can also control how fast it can reach the set temperature. 52
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The one that started it all, Thermomix TM5 is only sold by demonstrators for $2,089.
How to sell a Thermo Cooker… Buying a Thermo Cooker is a high involvement purchase for consumers and tends to require extensive information processing. The most important retail sales tip we have is to provide a good deal of information about the positive consequences of buying. Highlight and stress the important attributes such as time saving functions and ease offered by ThermoPro with the consumer during the decision process. Encourage attendance of in-store demonstrations of the product in the hope of securing sales.
…. with Mathew Kiley from ProAppliances
“This unique ability to adjust the heat power means that the user can use lower power setting for foods that would burn easily if brought up to heat too quickly and is another element that contributes to the precision cooking ability of this machine.” Each ThermoPro comes with a recipe book containing over 150 easy-tofollow recipes. KitchenAid launched the Cook Processor in March 2015 and the feedback has been positive so far. “KitchenAid is excited to have launched the Cook Processor and we’ve had fantastic feedback from both customers and retailers. We have strong partnerships with our retailers and work with them closely on developing sales and marketing initiatives,” said Geoff Moine, marketing director for KitchenAid Australia said. With KitchenAid’s distinctive signature style, the Cook Processor is available in Candy Apple Red, Medallion Silver, Empire Red, Onyx Black, Almond Cream and Frosted Pearl. Senior category manager for KitchenAid Giorgio Baroffio, can attest to the quality of design and years of development that has led to this launch.
“We have a team of engineers, chefs and designers who have worked for more than five years to create something of classic elegance and functionality that can inspire beautiful cooking experiences and exquisite food no matter the owners’ level of cooking skill. Simplicity, control and precision meets timeless KitchenAid design,” Giorgio said. One of the key product features is the ability for high temperature and precise cooking (up to 140°C, ranging in 5°C increments). An innovative StirAssist accessory ensures ingredients are continually stirred, providing even cooking and ‘stirred by hand’ results. The KitchenAid Cook Processor is accompanied by a free Cook Processor app available for both iPad and Android tablets, website and classic printed recipe book, each with step-by-step guidance for classic, everyday recipes. The recipes on the website and app will continue to be updated with new innovative recipes. Included in the box are a 4.5-litre cooking bowl, StirAssist, MultiBlade, dough blade, mini-bowl, MiniBlade, upper steamer basket with lid, lower steamer basket, inner steamer basket, 100-millimetre measuring cup, spatula, cookbook and storage case. WWW.APPLIANCERETAILER.COM.AU
âœą new appliances 1
01 Mitsubishi Electric Multi-Drawer Refrigerator (MR-WX743Y, RRP $4,620) Available in Diamond White and Dark Mahogany, this 743 litre capacity refrigerator from Mitsubishi Electric has a unique Versa drawer which offers users the choice of Supercool freezing and Soft freezing.. Mitsubishi Electric Australia 1800 811 212
02 Bissell Bolt Ion (1311F, RRP $299) This 2-in-1 stick vacuum is highly manoeuvrable with a removable handheld cleaner and EdgeReach technology to drive suction right to the edge of a skirting board. It has up to 40 minutes of runtime and recharges completely in less than four hours from docking station. Bissell 03 9237 2500
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03 Drop Kitchen Scale (RRP $159) This smart kitchen scale connects via Bluetooth to an interactive recipe app that records measurements while baking, leading you through the recipe step-by-step. TNS Distribution 02 9975 0900
04 Miele W1 Series Washing Machine (WKR 770 WPS, RRP $3,899) The star feature of select W1 models is TwinDos, an integrated dispensing system of liquid detergent for coloured and white garments, which the company says uses up to 30 per cent less detergent. Miele 03 9764 7100
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05 Breville No-Mess Waffle (BWM520BSS, RRP $149) Make perfect waffles with minimal mess thanks to the wide wrap-around moat which catches and cooks batter overflow for easy clean-up. Choose up to seven colour settings from light and fluffy to crispy golden brown with the integrated browning controls. Breville 1300 139 798 5
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WWW.APPLIANCERETAILER.COM.AU
new appliances âœą
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06 Bosch Series 8 60cm Built-in Coffee Machine (RRP $3,999) Part of the Series 8 kitchen range, Bosch’s new built-in coffee machine has an AromaDouble shot feature for extra strong coffee with less bitterness, oneTouch DoubleCup which makes two cups at the same time and fully automatic steam cleaning. BSH Home Appliances 1300 368 339
07 Philips All-in-One Cooker (RRP $219) With an intelligent cooking system the Philips All-in-One cooker lets you slow cook, pressure cook or multi cook. It has an easy clean inner lid and a non-stick, anti-scratch, 100% dishwasher safe Aluminium alloy inner pot. Philips 1300 363 391
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Saber SS 670 Infrared Grill (R67SC0012, RRP $3,399) Launched in Australia last month, this freestanding barbecue from American-brand Saber Grills has four adjustable cooking zones and a dual tube side burner expands your options to include frying, boiling and cooking with a wok or skillet. Saber Grills Australia 1300 828 62
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Tefal Fresh Express Nectar (RRP $89.95) With attachments for grating, shredding and slicing, this mini food processor has a new nectar function and pouring spout to create healthy nectar drinks. Groupe SEB 1300 307 824
10 Glem 122 Cooker (RRP $11,999) Designed to be the central hub of a contemporary kitchen, the Glem 122 is a dual fuel double oven with a 92-litre multifunction oven, six burner gas cooktop and Teppanyaki plate. Emilia Glem 1300 307 917
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APPLIANCE RETAILER JULY 15
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