Appliance Retailer -- May 2016 by The Intermedia Group

THE BUSINESS MAGAZINE FOR THE CE COMMUNITY / NOW IN ITS 20TH YEAR

GODFREYS NEW LEADER REVEALED

+ EUROCUCINA SMEG LAUNCHES 200 PRODUCTS

VALE SUNBEAM: AUSTRALIAN NO MORE

RETAILER

APPLIANCE

MAY 2016

FOOD

PREPARATION MORE THAN MIXING

DISHWASHERS AND ITS TECHNOLOGY STORY

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EDITORIAL AR

When being smaller is a dangerous game to play

Appliance Retailer is published by The Intermedia Group Pty Ltd ABN 940 025 836 82 41 Bridge Road, Glebe NSW 2037 Australia P 02 9660 2113 | F 02 9660 4419 E appliance@intermedia.com.au W www.intermedia.com.au ISSN: 1328-1852 Managing Director Simon Grover Editorial Director James Wells james@intermedia.com.au Editor Claire Moffat cmoffat@intermedia.com.au Features Editor Kymberly Martin Journalist Emily Bencic General Manager – Sales Rod Riley rod@intermedia.com.au Art Director Alyssa Coundouris Prepress Tony Willson Production Manager Jacqui Cooper jacqui@intermedia.com.au Head of Circulation Chris Blacklock Subscriptions Ph 1800 651 422

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or this month’s column, I began thinking about the impressive line-up of extraordinary cooking products and technologies revealed at fi rstly, the recent Milan EuroCucina Show and then the separate Hong Kong and Shenzhen Fairs hosted by the HKDTC and IFA Berlin. I was fortunate to attend the HKDTC Fair in April and the commitment by the leaders of the territory to making it an Asian Silicon Valley was inspiring. This vision is predicated on the 12th National People’s Congress (NPC) adoption of the Outline of the 13th FiveYear Plan for National Economic and Social Development. This was announced by the People’s Republic of China at its fourth session in March 2016. The plan expounds on the need to fully implement a development concept based on the tenets of “innovation, coordination, green growth, opening up and sharing”. It also aims to enhance the quality of development in order to “ensure the establishment of a moderately prosperous society, despite the challenges of changing domestic and international environment.” Contrast this vision with the news that Sunbeam, a company that has operated in Australia for 114 years, is to be sold to US Jarden Consumer Services (JCS). When questioned by the media about the decision, GUD Holdings, (Sunbeam’s

parent for 20 years) chairman, Jonathan Ling described the company as a “little Australian” business not up to the onslaught of globalisation. The term ‘‘little Australian” is unfortunate as its patronising adverb makes me wince. It’s not helpful for any part of Australia, be it society or business, to be described this way. Now that JCS is taking over the Sunbeam business, how will this play out? Is the once vital contributor to our industry to be further diminished to fit into the JCS commoditised business model? Are the local staff working at Sunbeam’s head office in Botany and national offices to bow their heads as the ‘bigger’ executives from the US parent walk past? Our industry is under siege and the loss of local equity in Sunbeam will impact it significantly. With an election predicted in two months, industry voters need to think carefully about where they want to be ten years from now. My guess is that, if we do not take a leaf out of Hong Kong’s 13th FiveYear-Plan, our industry will become so diminished, that there will be nothing we know to be Australian remaining.

Editor Claire Moffat cmoffat@intermedia.com.au

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Page 13

Page 23 Volume 22 / Issue #4

With intelligent visual navigation, app control and Wi-Fi® connectivity, the new Roomba 980 cleans an entire level of a home.

03 Editorial

13 Food Preparation Feature

SMART: First Roomba to combine adaptive navigation with visual localisation to clean for up to two hours1, recharging and resuming as needed.

05 News

22 Retail Rules

SIMPLE: iRobot Home App lets users control the Roomba 980 anywhere, anytime.

What Sunbeam’s sale means for the industry. Latest cooking innovation from EuroCucina; the end of an era for iconic fridge factory; and an exclusive interview with Godfreys new CEO.

How the health and wellness trend is driving growth in this category. Entice shoppers to buy more items.

CLEAN: AeroForce™ Cleaning System with Carpet Boost detects carpeted fl oors and provides twice the cleaning performance2 where it’s needed most. The iRobot range will be supported with Print and Digital campaigns, engaging POS and in-store displays.

12 On The Move

Executive movements surface as companies restructure.

1 Tested in iRobot’s Home Test Lab on hard ﬂoors. Run times may vary. 2 Compared to Roomba 600 and 700 series AeroVac™ systems.

23 Dishwasher Feature

No longer a luxury, but an essential. Why consumers rate performance as the most important feature.

32 New Appliances

‘Connected’ is the buzz word in the coffee and air-conditioning categories.

Page 32

Appliance Retailer May 2016

34 New Gadgets

The trending tech, including a rugged two-way radio and full HD dash cam.



Page 34

ON THE COVER

CONTENTS

iRobot Enters the Smart Home

NEWS AR

Fridge display at the Orange Show 1954.

HISTORICAL ORANGE REFRIGERATION SITE SIGNS OFF The Electrolux refrigeration plant in Orange, NSW, dominated the local manufacturing scene for 70 years but the last of around 12 million fridges has finally rolled off the production line. The side-by-side Electrolux Ice & Water model that will go on display at the new Orange Regional Museum was signed off by many of the 300 employees.

Above: Supply Chain Manager Stephen Brakenridge signing off on a 40-year stint. Left: Employees gather on the ﬁ nal day.

BY KYMBERLY MARTIN

t is estimated that about 40,000 employees have worked at the Electrolux refrigeration plant during its 70 years of operation, mass producing household appliances for millions of Australian homes. Originally built in 1942 as a WW2 munitions factory, the site was later taken over by Email in 1946 and began producing a wide range of household appliances including fans, stoves, washing machines, freezers and refrigerators. Electrolux Home Products continues to manufacture freestanding and built-in ovens under the Electrolux, Westinghouse

Queen Elizabeth II and Prince Philip visit in 1970.

and Chef brands at its cooking products plant in Dudley Park, Adelaide. It might be the end of an era, but there can often be new beginnings which is the case for three employees. Former plant manager, Mark O’Kane, has moved to Thailand to manage operations at the Electrolux refrigeration plant in Rayong, where refrigeration production, formerly carried out in Orange, is now occurring. Westinghouse and Kelvinator refrigerators made at the plant have been imported into Australia since Q4, 2105. O’Kane succeeds and will report to Tom Bell, who has been promoted to vice president, industrial

operations, Electrolux Asia Pacific. And Josef Dolinski, formerly engineering and environmental manager at the Orange plant has been seconded to the North American Manufacturing Engineering team in South Carolina. Interestingly, and surely a testament to the durability of the Orange economy, of the 164 employees made redundant since May 2014, only 19 are currently unemployed. “Our employees who were realistic about future job opportunities undertook training courses for new careers in growth sectors before it came time for them to leave the plant,” O’Kane said. Around 90 staff will stay on in a number of roles prior to the plant’s decommissioning at the end of 2016. ◆ www.applianceretailer.com.au

AR NEWS

Dedicated Followers of Kitchen Design at EuroCucina 2016 Leading Italian and international brands were showcased at the bi-annual 2016 edition of EuroCucina in Milan, Italy in mid-April. Europe’s most important event dedicated to the modern kitchen, it brings together design, technology and connectivity to enhance the living spaces of tomorrow. And cookers took centre stage this year with new models from Smeg, Ilve and Miele.

BY JAMES WELLS

meg announced 200 new products which will enter production within the next six months. The hero product was an American-style, semicommercial 90cm oven features a 122 litre single-welded cavity and boasts one of the heaviest, slow-closing doors on the market, designed to complement the sturdy knobs and heavier appearance. It features three fans, the highest energy rating available in Europe and is available with a gas or induction cooktop and comes with a dedicated pizza stone. Smeg also previewed a new Linear built-in oven range with updated features that included new light-up control knobs, new stainless steel handle and new door graphics.

2 1. Smeg CEO Vittorio Bertazzoni. 2. Marta Nazarewicz, Adam Liaw and Crt Prasnikar on the Asko stand. 3. The Smeg ‘blade’ flame gas burner. 4. Ben Thompson and Anthony Fletcher from Schweigen Home Appliances. 5. Miele co-owner Reinhard Zinkann with Miele Australia executives and retailers from the Narta group.

A new blast chiller, sous-vide and compacts were released as part of the Dolce stil Novo range that featured black glass fronts with retractable or standard handles. Also on display was a new ‘blade flame’ concept, demonstrating a more efficient form of gas heat delivery. Electrolux released an industryfirst with the ComfortLift dishwasher featuring a mechanism that elevates the lower basket to the same height as the upper basket to reduce the need to bend when loading or unloading.

5 6

Appliance Retailer May 2016

9 Also released was the new CombiSteam Pro Smart Oven with CookView camera delivering a live feed direct from the oven to a mobile device through the MyElectrolux smart phone app and also allowing the ability to control or change function, temperature and humidity. Electrolux also released a blast chiller to quickly freeze fresh or partly cooked food to preserve the key qualities and nutrition within the food. Ilve unveiled its 150cm Quadra cooker with a 60cm Teppanyaki plate at EuroCucina. This model comes with a larger internal capacity, improved lighting and digital thermostat. A signature feature, the Teppanyaki plate, has been updated and doubled in size. The removable plate features a 30cm grill plate as well as the traditional 30cm flat plate. Ilve national sales manager, Tristan Peters, said the company will introduce soft-close hinges on ovens and storage drawers this year as well as investigating the opportunity to introduce flat-packed stainless steel kitchen solutions for retailers. Asko was the talk of EuroCucina as it surprised retailers and competitors with a full range of built-in appliances and

10 6. Miele MD Sjaak Brouwer with the new XXL range cooker. 7. Michael Doyle, David Ackery, Haydon Myers and Chris Coen on the Electrolux stand. 8. Roberto Finamore and Adam Price from BSH showing the expanded range of Neff Slide & Hide oven doors. 9. Antonio Ruffato, Tristan Peters and Antonio Illotti on the Ilve stand. 10. John Murphy, Andrea Gunn, Simon Taylor and Ash Balderson on the Indesit stand.

11. Andrew Mumford with the new Sub-Zero 914mm fridge.

cooktops which will be promoted by new global brand ambassador – Adam Liaw. The Elements range was the highlight of the launch, featuring an interactive digital colour display, which has since been installed within key Australian retailers. Within the range are 60cm and 45cm Combi Steam Ovens and a 14cm Sous-Vide Drawer. KitchenAid showed off a range of major domestic appliances ahead of possible launch onto Australian market in 2017 including a range of refrigeration as well as major built in cooking appliances including a blast chiller, combi-steam oven and a sous-vide vacuum drawer.

Whirlpool GM – Strategy, Harry Van Dyk, hosted a number of retailer groups to showcase a range of KitchenAid major appliances building on the heritage of its small appliances – in particular its signature mixer. Miele ANZ managing director Sjaak Brouwer unveiled a number of new products at EuroCucina to local retailers. This year they included a new 122cm XXL American style cooker, the new ArtLine built in appliances with no handles and automatic drop-down door, new steam ovens with integrated microwave and dishwashers with a 58-minute program. ◆ www.applianceretailer.com.au

AR NEWS

GUD Holdings managing director, Jonathan Ling.

Iconic SDA brand sold to US parent company BY CLAIRE MOFFAT

he industry watched as Sunbeam teetered on the brink of receivership in the nineties, mourned the loss of manufacturing to China and a flawed attempt to buy arch rival Breville, in the early 2000s but it could not survive the ravages of globalisation, according to its parent GUD Holdings. More than two years earlier than expected, GUD Holdings has sold the rest of its stake in the Sunbeam brand, explaining to shareholders that competing against global suppliers has become too hard for “a little Australian”. GUD will sell its 51% Sunbeam stake to its US-based joint venture partner, Sunbeam Products Inc, which trades as Jarden Consumer Solutions (JCS) and

owns a portfolio of appliance brands with $US2 billion a year in global sales. JCS fi rst came to the notice of the local industry when it bought 49% of the company in November, 2014. The company had been the global owner of the Sunbeam brand with the exception of the Australian and New Zealand markets, which until now have been owned by GUD. According to GUD managing director Jonathan Ling who told the industry via the media earlier this year that it would be raising prices after a poor reporting season, it was tough conditions in the retail sector and competition from big global suppliers of small appliances that lay behind the decision to sell Sunbeam.

“It’s just gotten to be a very tough business that is dominated now by global players, and just being a little Australian, it’s too hard to survive,” he said. “To survive in the appliance business you have to go international, and having to create another brand name in global markets is just too hard,” he said. Ling said he expected to get about $35 million from both transactions, which are expected to completed in July 2016, adding that it was better for GUD shareholders to have $35 million in the bank now rather than have Sunbeam make losses for the next couple of years.

“COMPETITION FROM BIG GLOBAL SUPPLIERS OF SMALL APPLIANCES LAY BEHIND THE DECISION TO SELL SUNBEAM.”

He said GUD would use the proceeds from the sale to reduce debt and invest in the group’s other businesses, which include automotive products, cleaning products, warehouse racking, locks and pumps. GUD suffered a 90% drop in half year profit to $1.7 million, following $18.5 million in impairments related mainly to its Dexion storage and shelving business. The Sunbeam business generated an earnings loss as currency movements forced up product costs and price increases were deferred. ◆

CORONIAL INQUIRY INTO SAMSUNG RECALL PUT TO A STOP BY CLAIRE MOFFAT

hile Samsung’s executives will be breathing easier, the leaders of the consumer group which lobbied hard for a coronial inquiry are feeling deflated. According to a report by Esther Han in smh.com.au, assistant Commissioner Mark Whybro decided against the move because the number of incidents was declining and the recall response rate was “greater than usually expected”. “A significant manufacturer recall program is in place … and the small number of fi res in repaired machines – 8

Appliance Retailer May 2016

[we’re] aware of three [in NSW] – may have been caused by incorrect repair procedures by contractors,” he told Han. However, he said that a referral to the coroner was not off the table if circumstances changed. Meanwhile, both Tarnya Allen and Di Fisher who have amassed a significant amount of data to support an inquiry, told Han that the rejection of their request was a “slap in the face”.

“There needs to be a transparent investigation into the failure of the recall and the decision prevents the chance for lessons to be learned.” “A transparent investigation can only help future recall processes.” ◆

as seen on www.applianceretailer.com.au AR

Maxwell leaves local market after two decades BY CLAIRE MOFFAT

Maxwell Australia Sydney ofﬁ ce employed around 18 staff.

ell-known photographic accessories distributor, Maxwell International Australia, closed its doors at the end of April. For around two decades, the company had been the established distributors for the Lowepro, Joby, Tamron, Velbon, Lexar and other photo-oriented brands. According to photo specialist site, photocounter.com.au, following the closure of Maxwell, the distribution of Lowepro, Joby and Tamron will now handled by TNS

Connect, a subsidiary of European-based private company TNS Distribution ‘a global distributor of consumer electronics and accessories for Apple products’. The new arrangements commenced on May 2. Photocounter.com.au quoted a media statement that TNS Connect will pick up Tamron as well as the Daymen brands. “Discussions with Maxwell’s other suppliers are currently under way to ensure continuity of supply, of which further details are expected in coming days.” Meanwhile, Daymen reportedly said in a letter to customers, “Until the beginning of May, we remain open for business and intend to maintain supply until an agreed date for stock-take and stock transfer, as we plan this transition. A team of Maxwell and TNS management will now develop a Q&A on all the operational matters for supply, credits, service, accounts to ensure as smooth a changeover as possible. We will do everything we can to limit inconvenience to your business and your customers.” ◆

HK Fair reveals Hong Kong’s shapeshifting BY CLAIRE MOFFAT

or the Australian buyers who skirted the 3,400 exhibitors from 24 countries and regions, showcasing wearable technology, robotics and home connectivity at last month’s HKTDC Hong Kong Electronics Fair, one word was dominate: smartphone. The power of the ubiquitous device continues to transform society, has seen Hong Kong’s leaders ready to harness its remarkable powers to re-engineer the future of the territory. The April Fair at the Hong Kong Convention and Exhibition Centre (HKCEC) is the largest spring electronics event in Asia and, along with the connectivity story, the organisers also made it clear that Hong Kong is determined to emerge as a powerful electronics gateway to the lucrative Chinese manufacturing base across the Pearl River. For this Fair and concurrent ICT Fair, HKTDC organised more than 170 buying missions comprising around 12,700 international buyers from 8,500 companies, including major importers and distributors

such as Best Buy from the United States, Carrefour from France, Irmaos Muffato from Brazil, Ribeiro S.A. from Argentina, Beijing Capital Retailing Group Co., Ltd. from the Chinese mainland, Singer from Thailand, Arjuna Elektronik from Indonesia and Boulevard IT Superstore Sdn Bhd from Malaysia. The new participants at the Fair hailed from Austria, Liechtenstein and Russia while major electronics production centres such as the Chinese mainland, Korea and Taiwan also set up their own pavilions. Meanwhile, The HKSAR Government’s latest Budget for 2016/17 specifically promoted smart production and research. ◆

SAMPFORD IXL WILL SHAKE-UP THE ROBOTICS MARKET

BY EMILY BENCIC

ampford IXL has become the exclusive Australian and New Zealand distributor for iRobot Corporation, owners of the Roomba and Braava brands, and has already introduced a number of new products to the market. The new Roomba 980 is the hero product for the robotic vacuum category featuring app enabled controls and enhanced navigation. “We are seeing iRobot take innovation to another level in terms of navigation, utilising both visual intelligence, via an on-board camera, and mapping intelligence,” Sampford IXL CEO, Chris Dickins said. “The Internet of Things also continues to be a key driver in iRobot’s product development, with the Roomba 980 being app enabled, allowing it to be connected to the home’s WiFi network, for customised cleaning and scheduling,” he added. iRobot is also creating a new category in robotic cleaning, with the introduction of a floor mopping robot, the Braava 380t. The Braava is designed to dry, or damp mop, the entire floor in just one pass. “This new product category builds upon iRobot’s expertise and provides a solution focused product. The new Braava 380t mopping robot is the perfect complementary solution to our Roomba® robotic vacuum, as a daily task for mopping hard surfaces,” Dickins added. ◆

www.applianceretailer.com.au

AR NEWS

Bank proposes solution for Dick Smith gift card holders BY EMILY BENCIC

ustralia’s largest investment bank, Macquarie Group, has backed a proposal to secure funds from the sale of gift cards in a trust to ensure customers are not left empty-handed. Macquarie Group has said that establishing separate trusts for funds from gift cards may be a way to protect their holders in the event of a collapse. “If the trust was properly established and administered, the cardholder may have a much higher likelihood of being repaid in the event of insolvency,” Macquarie global head of corporate communications and investor relations, Kristine Neill, wrote in a submission to a Senate inquiry.

“These types of structures are used effectively in the real estate and legal professions. In principle, it may provide an appropriate safeguard for consumers.” Neill said the benefit of protecting consumers would have to be weighed against the burden on retailers, including the cost of managing and establishing the trust. Retailers would also not be able to use the money as working capital, increasing the cost of running the business. Furthermore, Turnaround Management Association Australia (TMAA) said it would be onerous on retailers and suggested the money could still fall into the hands of secured creditors instead of being returned to holders of a gift card.

It said while trusts were generally excluded from the assets of a collapsed company, creditors could take priority over the money. “The determination of priority with respect to the proceeds of a gift card trust fund would not be a straightforward exercise,” the association said. ◆

THE GOOD GUYS BRINGS IN PREMIUM PRODUCTS BY EMILY BENCIC

he Good Guys has rolled out KitchenAid products into its stores. The partnership not only solidifies its position as a retailer, but also provides further depth and aspiration to its brand offering, according to chief merchandise officer, Geoff Reader. “We are thrilled to be one of the first major electrical home appliance retailers in the market to have KitchenAid’s range of products,” he said.

ASIC expected to re-examine prospectus BY EMILY BENCIC

T “The range of products that we provide to our customers is already extensive but the addition of KitchenAid provides a premium countertop appliance range that we haven’t previously seen in our stores. We’re excited about this partnership and the opportunity to show our new products now in-store,” Reader concluded. ◆ 10

Appliance Retailer May 2016

he Australian Securities and Investments Commission (ASIC) will investigate the failure of Dick Smith and identify what went wrong. The revelation was made during the ASIC Annual Forum when questions were put to ASIC chairman Greg Medcraft, and commissioners Peter Kell, Cathie Armour, John Price and Greg Tanzer. Price said the regulator was “making a number enquiries as to the reason why Dick Smith failed as it did.” The prospective disclosure is an area the Commission will re-examine, although the amount of risk disclosure

in the prospectus document was “very substantial,” according to Price. The corporate regulator and Anchorage Capital have since been called before a parliamentary committee over the collapse of the electronics retailer. Medcraft told the forum there was an issue in terms of “administered trust and confidence.” However, Armour noted that it was a “big step” to jump to a conclusion and link the collapse to the private equity transaction three years ago. “We need to wait and see. We can point to many successful businesses that have floated that were owned by private equity as well,” she added. ◆

NEWS PROFILE AR

Back to basics: Godfreys CEO makes retail fundamentals top priority BY EMILY BENCIC

Godfreys Traralgon, VIC store exterior .

From Myer cadet, to filling the top position at Godfreys, Australia’s largest floorcare retail specialist, Kathy Cocovski brings 38 years of knowledge and experience to her new role.

athy Cocovski is confident that the unique market position of Godfreys as an iconic brand with more than 80 years of history, will keep the retailer ahead of its competitors. “The industry has always been competitive and we thrive on competition,” she said. Cocovski believes product offering and well-trained staff have been key contributors to the company’s success. “One of the key things that differentiate Godfreys from the rest is our extensive product range across a number of price points, and this is backed up by extremely knowledgeable staff. I strongly believe that everything comes together at the point of the customer experience, whether at store level or on our online platforms. Our success will ultimately come from a satisfied customer,” she added. When asked about new products in the pipeline, Cocovski was reassuring that innovation in product development is one of the retailer’s core strengths.

Godfreys Mt Druitt, NSW store interior.

Godfreys CEO Kathy Cocovski.

“WHILE STICK VACUUMS ARE IMPORTANT AND IN HIGH DEMAND AT PRESENT, WE BELIEVE THAT THE UNRIVALLED EFFECTIVENESS OF BARRELS WILL CONTINUE.” CEO Kathy Cocovski.

“We are particularly excited about the new Vorwerk range, which encompasses stick vacuum, robot and window cleaner products. Vorwerk is from the makers of Thermomix, and we are pleased to be bringing the best of European technology to our customers here. This is an extremely innovative and advanced technology and we are already seeing considerable demand for the products,” she said. Cocovski noted that the floorcare market is one of continuous growth, as vacuums are a staple consumer purchase, although there is a strong winner in the current market. “While stick vacuums are important and in high demand at present, we believe that the unrivalled effectiveness of barrels will continue to drive demand in this segment too. It comes down to retail fundamentals, and this is where our focus will be,” she said. As for future challenges and opportunities for the iconic retail brand, Cocovski observed that the ultimate challenge in retail is the pace of change. “Change is what makes it such an exciting sector. The opportunities that present themselves in a fast changing market are exciting, and there is a lot of scope for product innovation in the vacuum segment. “It all comes down to getting our retail fundamentals right – these are the priorities that I have set out for myself and my team,” she concluded. ◆ www.applianceretailer.com.au

AR NEWS

| On the Move | During April there were more executive movements within small appliance companies Sunbeam and KitchenAid. Samsung also began a major reconstruction of its senior management team with the appointment of former Sony and Dick Smith leaders. BY CLAIRE MOFFAT

Sunbeam shufﬂes sales and marketing team Sunbeam has reorganised its sales and marketing team following the recent departure of general manager - marketing, John Turnbull from its head office in Botany, New South Wales. Turnbull had worked at Sunbeam for three years and five months after joining the company from The Clorox Company

in 2012 where he was marketing director Australia, New Zealand and South Africa. He has been replaced by Adam Tacey in the expanded role of general manager - product and marketing Australia and New Zealand. Tacey joined Sunbeam in June last year as general manager - sales, for both Australia

and New Zealand. He was formerly Kambrook business manager with rival Breville Group for around six years. These changes have triggered the subsequent move of Richard Bowe into Tacey’s former position of general manager sales, a role he held for six months JanuaryJune in 2015. This was prior to Tacey’s arrival at the company when Bowe became general manager - business development Australia and New Zealand. ◆

KitchenAid expands marketing team KitchenAid Australia, part of the Whirlpool Corporation, has strengthened its marketing department with the recruitment of two executives with a strong background in small domestic appliances. Richard Babekhul moved into the new role as marketing director in March. He

was formerly Breville business manager Kambrook for 12 months and prior to that, he was Breville marketing manager - Australia for around two years.

Meanwhile, Filiz Bensan has also joined KitchenAid, moving on from Sunbeam where she has spent the past nine months in the role of category manager. Bensan has joined in the new position of marketing manager consumer durables, based in Sydney. ◆

Ex Dick Smith, Sony executives join Samsung Samsung Electronics, has bought in Jeremy Senior (left) as director, Home Appliances. Senior worked with Samsung’s new vice president of Consumer Electronics, Carl Rose (pictured right) when he drove the channel strategy for consumer products 12

Appliance Retailer May 2016

in Australia for five years while Rose was managing director. Most recently, Senior spent one and a half years working for Dick Smith Electronics, as interim general manager leading buying, merchandise planning and marketing functions. In his role at Samsung, Senior will be responsible for the growth and development of the Home Appliances division and will spearhead the Home Appliance team

including Mike Lilly, head of product. “Senior is a valuable addition to the Consumer Electronics team to drive strong results while encouraging efficiency across all organisational functions,” Samsung Electronics Australia president Harry Lee said. ◆

FEATURE

AR FOOD PREPARATION

OUTLOOK

Mixing it with the best BY KYMBERLY MARTIN

he ongoing health and wellness trend, along with the popularity of cooking shows and the consumerâ&#x20AC;&#x2122;s impressive appetite for recipe books and cooking apps has made the food preparation category one of the key drivers of sales for 2016. The strength of the benchtop appliance segment lies in healthy sales figures with the $500+ market growing by 52%, according to industry sources, proof that consumers will pay more for a product customised for their demanding lifestyle. While not quite as impressive, sales for food processors are enjoying

some nice increases too, up 8.4% for the $199+ segment, (GfK MAT January 2016). This places the food preparation category in the top 10 value added categories for 2015. New players have also arrived, delivering more choice and the opportunity for consumers to replace, trade-up or simply indulge in a category that offers stylish, performance-driven product with multi-function features and ease-of-use. The latest data from Euromonitor appears to confi rm this with research showing local consumers are inclined to buy feature-packed food preparation

appliances that offer high levels of convenience and efficiency. As kitchens become the focal point of the home, demand is growing for products that are both multi-functional and well-designed. Meanwhile, the purchase journey for these appliances continues to shift from bricks and mortar to online as data from Food Preparation Appliances Share of Voice in Online Stores, from Clearwater Communications illustrates, brands are investing to cultivate a dominant online voice. KitchenAid and Breville lead with 16.91% and 16.68% respectively. Sunbeam and Kenwood follow with 12.43% each. AR

One Machine, A world of possibilities.

TRENDS

CONSUMERS EXPECT convenience and performance

Eleanor Moss – De’Longhi.

hile a lot of attention is being paid to the health and wellbeing trend, the overall food preparation conversation comes down to basics, De’Longhi category manager, Eleanor Moss said. “The simplicity of buying a product for whipping, stirring, chopping, crushing or mincing as a considered purchase tends to go towards a bespoke appliance with a great brand reputation.” Moss made the point that following the re-introduction of Braun Food Preparation, sales rose 70% over the previous year. “In Australia we are following global innovations and designs, fitting them into local trends that research and results show in our other brands. As an international company, Braun carries out specific research in America and Europe where it is a brand leader in many categories.” It is a slightly different story for Kenwood, which Eleanor Moss described as “in transition – with the huge impact of the personal blending trend seen on TV meaning every

category outside this has to re-invent itself.” As she sees it, 2016 is the year for concentrating on simple messaging around the product which fits the criteria for a specific user. A strong swing to matching appliances is having a positive impact on the brand too, Moss said. Good design, high performance and the escalating trend to homemade, healthy food is what Smeg considers the major trends in the category. Head of brand, Tamara Buchanan expanded on this describing the company’s Stand Mixer as the “go-to food preparation centre for home cooks and chefs”. The mixer’s ingenuity and versatility is constantly being extended, fi rstly with a set of three rolling and cutting attachments, and most recently with a

Tim Anderson – Sunbeam.

Multi Food Grinder with more to come. Along the way the mixer has picked up two international design awards. There is no escaping the growth in personal blending and this continues to be the dominating headline for the food preparation category, according to Sunbeam head of product marketing,

Tim Anderson. “Notwithstanding, we are also seeing emerging trends within other food preparation sub-categories, particularly with a shift towards food processors, clearly inspired by the foodie revolution.” He said consumers are also demanding more from their appliances so versatility is key. “No

Aleta Wright – Vitamix.

longer is cake-making the only task a mixer needs to perform.” Also seeing a clear move to appliances that offer simplicity and time-saving features is Pro Appliances. As national sales manager, Mathew Kiley explained: “These products are becoming more sought-after.” In response, the company has added new appliances that fit perfectly into the time saving category that cater to the growing needs of the health conscious consumer. When it comes to blending smoothies, about half of all Australian households are doing this at least once a month according to recent research, Vitamix marketing manager Aleta Wright said. “Feedback from the customer service

AR FOOD PREPARATION team and retail sales staff is consistent. Customers are seeking a better quality product which won’t end up in landfi ll.” Making its debut into the category is Morphy Richards, with a range comprising three different sets of Total Control Hand Blenders. The company conducted home trials to gauge consumer feedback which product marketing co-ordinator, Stacey Pogorecki declared returned positive results for the technology and ease-ofuse. “We are looking to expand this category in the near future.” Groupe SEB category manager, Bettina Ortega del Rio agreed that changes in consumer trends have impacted on the food preparation category. “Consumers are looking for

“While a lot of attention is being paid to the health and wellbeing trend, the overall food preparation conversation comes down to basics.” Eleanor Moss, De’Longhi.

time saving solutions, nesting at home and being health conscious with their cooking and lifestyle,” she said. The company recently diversified its Tefal range to offer products that are convenient and versatile to suit every consumer and budget.

And it’s not just beautifully presented café dishes and TV cooking shows that are enticing cooks to become more creative in the kitchen. “There is the growing number of YouTube influencers, using fresh, quality produce to recreate delicious and healthy meals,” observed Breville business manager – cooking and food preparation, Sharon Lenzner. Following suit to the functional, versatile and user-friendly trend is Panasonic. “Consumers want products that reduce preparation time with intelligent functions and features,” product marketing manager home appliances Belinda Toner said. “Additionally, appliances which make healthy eating convenient and simple are also in demand.” AR

RESULTS AND RANGES

A growing ‘attachment’ for accessories

hen it comes to product success stories, Braun claims its unique Hand Blender and Multiquick hand blender range have had the biggest impact when it comes to the food preparation category. “The clear winners saleswise are the MQ777 Hand Blender and the MultiMix 3 HM3135 Hand Mixer,” Eleanor Moss said. “Department stores defi nitely have the Braun consumer in their stores, so the brand’s performance in New South Wales and Victoria are over-indexed by this phenomena.” The technology around Kenwood, whether it is a kitchen machine, food processor or blender, has the ability to deliver a more versatile preparation or cooking solution. Eleanor Moss reaffi rmed this stating, “our new Chef Sense kitchen machine winning the Gold IF award is a rare occurrence and is only attainable through proven design and a technology-based platform. Kenwood covers off a good, better, best strategy for all its food preparations but also contributes to the success of growing average selling prices.”

Appliance Retailer May 2016

Smeg is adding to the flexibility of its Stand Mixer with a new attachment hub. The Multi Food Grinder comprising three stainless steel discs is designed to mix and grind a huge range of foods from tartares and lasagne to meat and sausages. “A big selling feature is the ability for home cooks to make

healthy sausages that contain the exact ingredients they enjoy – without any additives, preservatives or ‘suspect’ fi llers, Tamara Buchanan said. The mixer has an 800w motor, 10 speeds and convenient pouring shield. The success story that is the Breville Kitchen Wizz is credited with driving the

One Machine, A world of possibilities. The Chef Sense is the pinnacle of style, simplicity and ease-of-use, making cooking more enjoyable than ever. The new intelligent electronic â&#x20AC;&#x2DC;senseâ&#x20AC;&#x2122; control puts you in complete control, while five dedicated bowl tools and 20 optional attachments allow you to completely personalise your machine.

5 BOWL TOOLS INCLUDED IN-PACK

Creaming Beater

Folding Tool

Dough Hook

Balloon Whisk

K-Beater

20+

Optional Attachments HERO OPTIONAL ATTACHMENTS

Food Processor

Glass Blender

Pasta Roller/Cutter

For more information on the Kenwood Chef Sense contact 1800 666 777 or visit www.kenwood-australia.com

Food Grinder

Frozen Dessert Maker

Stainless Steel or Glass Bowl

AR FOOD PREPARATION company’s leading position in the food processor category with two new models extending the range in June. All those potato lovers out there will appreciate the potato peeler attachment on the new Kitchen Wizz 8 and the Kitchen Wizz 8 Plus. The unique Potato Peeler disc holds up to seven medium sized potatoes, making meal preparation easier. Vitamix has benefited from double digit growth since its retail launch in 2009, Aleta Wright said. “The brand is consistently outperforming market trends, while current growth within the category only bolsters the company’s outlook.” According to Wright, a Vitamix owner uses their machine 4.4 times weekly to make a variety of different meals.” She added that durability and versatility are key purchasing considerations and the appliance carries a full seven year warranty.

Tefal Cuisine Companion.

“Kenwood covers off a good, better, best strategy for all its food preparations, but also contributes to the success of growing ASPs”,

sales are also coming from stick mixers, such as the StickMaster SM9000, with accessories such as the MashMaster tool and food processor bowl, designed to strengthen its position as “the ultimate kitchen tool,” Tim Anderson said. Groupe SEB places its Tefal Cuisine Companion as a great asset in the food preparation category. “As well as doing the food preparation it also cooks, Bettina Ortega del Rio said, “and this takes the traditional food preparation category to the next level.” In April, the company launched a Shredder Slicer to its Cuisine Companion. This attachment slices, shreds and grates directly into the cooking bowl for ease and convenience. Through its five functions, it fi nely or coarsely slices and grates even hard ingredients like Parmesan. Not surprisingly, the biggest influence at Pro Appliances is the ongoing healthy living trend with products that fit perfectly into this segment. Its investment here includes the Pro Appliances Pro Blender which is all about high-quality construction and

Eleanor Moss, De’Longhi.

Vitamix Professional Series 750.

Sunbeam Café Series Mixmaster with Grinder MX9550.

The newest range to sit on the food preparation bench is Morphy Richards which has just launched three hand blenders under the Total Control branding. Each blender has a variety of attachments and accessories, but the big feature here is the company’s energy efficient ‘smart response’ technology that claims to produce a better mixture in a faster time. “This technology keeps the consumer in control, delivering power as required depending on how much the trigger is pulled,” Stacey Pogorecki explained. The latest addition to the Sunbeam food prep portfolio is the MX9550 Café Series Mixmaster plus Multi-Food Grinder attachment that makes light work of mincing and grinding. Solid 18

Appliance Retailer May 2016

JuicePro Whole Fruit Juicer BP-C.

powerful performance with an industryleading 1680W motor and all-metal gear system. The JuicePro Whole Fruit Juicer is an upgrade from the conventional juicer with an extra-wide fruit chute. Panasonic can lay claim to a unique ‘chill out’ feature with its Slow Juicer, an accessory to whip up frozen treats from fruit and vegetables which makes it ideal for sorbets and icy desserts. The compact design is dishwasher safe and is supplied with an anti-drip spout cap and juice and pulp beakers. AR

Refrigerators L4 Series

Designed for larger living

Diamond Black Stainless Steel Pearl White L4 Grande

L4 Mini

800mm Wide

Tempered glass shelves

Built to withstand up to 101 kilograms of weight, so you can safely store your heavy items.

For more information on the L4 Series please scan the QR Code.

Eco mode

An energy saving setting which automatically lowers the energy consumption during non-peak hours.

Large capacity

With a large internal width of 800mm for maximum storage capacity. Providing more usable space for items such as bulky groceries and platers.

For more information on ranging our products Phone: (02) 9684 7777 please contact the national retail manager

AR FOOD PREPARATION

FROM THE FLOOR

Food Preparation a profitable category Mitch Lynn, acting manager, North Sydney Betta Home Living talks to AR about the value of food preparation appliances to the business.

ood preparation products sales are holding steady at Betta Home Living and it is one of the more profitable categories for the store, that is located in the busy commercial hub of North Sydney. The three biggest carriers here are Sunbeam, Breville and Spectrum Brands, followed by Kambrook and Russell Hobbs interspersed with Kenwood and Panasonic, Mitch Lynn acting manager said. “Blenders and juicer sales are sitting strongly along with rice cookers, bread makers and sandwich presses which are proving to be resilient. We are fi nding the latter is popular as an office purchase. “We keep a few bread makers in stock because they do tick over. We are not going to sell a lot but there are customers who have had a bread maker for 20 years and when it goes they want

PROMOTIONS

to replace it. There are a lot of product categories like these.” One of the biggest trends, Lynn said are the personal or single serve style blenders with targeted advertising helping to push sales along. “We carry a diverse range of brands at price points from $39 to $299. These seem to be the ultimate appliance for people who want something smooth without having to crunch on seeds and nuts. I know we are coming out of summer but our Soda Stream range produced good sales. We were a bit late spotting this one but unfortunately retailers don’t always pick up on trends until it is too late. As for attachments I would say it is a 50/50 situation between those who see additional attachments as a bonus or an unwanted extra.” Promotions don’t work so well in this location and seem to be more effective in destination stores where

Appliance Retailer May 2016

there is heavy foot traffic to pick up an impulse purchase. “Very rarely do we have customers coming in because of an in-store promotion but naturally they are happy to have happened upon whatever bonus is available at the time. Where promotions are successful is online which is growing and our online sales are often specials that are being promoted. “We have a diverse customer base here and service and deliver north to the Hawkesbury River, west to Penrith and down to the South Coast from customers who are commuting to North Sydney for work.” AR

Big spending behind small appliances roupe SEB is spending $1 million in advertising that kicked off in the lead-up to Mother’s Day supporting the Tefal Cuisine Companion. The above-the-line advertising continues through the 2016 First Half with a major campaign for the Cook4Me pressure cooker with 1000 spots booked across the MCN Network. For the second year in a row, Kenwood will sponsor the TV show My Kitchen Rules (MKR). A national TV campaign that rolled out in April was developed with an inter-generational marketing approach to open the brand

Mitch Lynn, acting manager, North Sydney Betta Home Living

up to not just traditional users but also the modern, younger consumer. To support its range of Mixmaster Mixers, Sunbeam is running the ‘7 Measures of Mixing’ campaign to help educate consumers and shoppers choose the right mixer. Sunbeam has created a video and POS materials to deliver this to shoppers. Breville is providing retailers with support for the new Bakery Boss that includes a 100-day money back guarantee. The promotion started on April 1. A new in-store demonstration and staff training program is in place for this activity. Breville has a recipe site, go to: www.foodthinkers.com.au. AR

For convenience and minimum effort this hand mixer and hand blender makes baking a breeze with its unique ergonomic design.

Braun MultiMix3 Hand Mixer HM3135    

Combines hand mixer and hand blender Anti-splash design SmartMix places weight into the bowl, not the hand PowerBell hand blending for even results

RRP: $149

De’Longhi: 1800 126 659

PRODUCT GALLERY

Breville Kitchen Wizz8 BFP560SIL     

1000w motor Eight cup bowl capacity Wide feed chute with mini chute Potato peeler attachment Reversible grater – coarse and ﬁne

RRP:

$199.95

Breville: 1300 139 798 Cooking for the family or entertaining just got easier with this food processor that features a new potato peeler attachment and a wide chute that makes fast work of preparing even the biggest potatoes.

Smeg Stand Mixer with Multi Food Grinder Attachment  Three stainless steel discs to mince and grind food  Three thickness options – coarse, medium and ﬁne  Silicone cleaning tool for thorough removal of food particles from grinder discs

RRP: $799 – Mixer RRP: $149 – Grinder Smeg: 02 8867 4888

Grinder.

The hero product in Smeg’s award winning food preparation range has a new companion, a food grinder attachment that quickly minces and grinds to create a huge range of food.

www.applianceretailer.com.au

AR RETAIL RULES

HOW TO GET MORE ITEMS INTO THE BASKET Norrelle Goldring from GfK discusses the role of Basket Penetration and Incidence.

asket penetration refers to how many transactions a given SKU, product or brand is in (where one transaction is a ‘basket’ of items). Baskets are a common term in FMCG where shoppers are buying multiple items at one time, but less so in destination purchase channels such as consumer electronics, where shoppers are often only looking for one product. Retailers who analyse their transaction and loyalty card data, will have access to basket penetration (incidence) levels down to SKU. If a basket analysis is conducted, then access to most commonly copurchased items in the same transaction will also be available. Understanding this helps with ideas about co-promotion based on existing shopper behaviour. A common retail goal is to increase basket incidence. However, this depends on the number of items a household already has, which links to Household Penetration.

THE BASKET AND HOUSEHOLD PENETRATION RELATIONSHIP

While Basket Penetration (or incidence) is different from Household Penetration, they can both be linked. Typically high household penetration equals high basket penetration, depending on the category. And, the higher the household penetration, the degree of planning needs to be higher because that item is a staple of some sort. Household penetration describes how many households have an item on hand in the home somewhere. But just because it’s

in the household doesn’t mean it’s in the basket for a given shopping trip, because the household might not need any of the item now. Conversely, just because it’s in the household doesn’t mean it is not needed. Two examples spring to mind – consumer electronics replacement items, and on the go beverage and snack items. More than 90% of Australian households have a television of some sort. This doesn’t mean they are not in the market for a new one, as a percentage of consumers will be needing to replace their TV at any point in time due to poor picture, changes in technology etc. So if they’re in the market for a television, the game is about getting the item into the basket in your store not someone else’s store. Categories with low household penetration are likely to have low basket incidence. The goal with categories that have low household penetration is to increase the incidence and purchase frequency of the entire category, over time. This can be a longer term job, often requiring quite a lot of education based advertising around relevance and specific occasions.

WHY BASKET PENETRATION?

Basket penetration is often misunderstood because it can be an outcome or result of pulling another lever (such as AWOP or Frequency) to get the item in the basket. Mechanics that are purely about basket incidence on this shopping trip are traditionally things like price

NORRELLE GOLDRING & GfK

off discounts, win-in-store or other competition based promotions. But retailers need to be careful with priceoff discounts, because depending on the category price-off just simply rotates shoppers around brands they already buy and there is a risk of trading them down.

SOME WAYS TO INCREASE BASKET PENETRATION

1. Secondary/off location displays based on occasion and relevance • Not just the highest traffic locations, but locations where the category involved should the product logically have adjacency to another. • Use the secondary display to communicate to a particular occasion. For example, place the phone accessories right next to the phones. 2. Consumer promotions and sampling • Encourage trial and the conversion of new shoppers to a product by strong sampling and promotion. 3. Price promotion • Price promotion is a short-term solution to increasing Basket Incidence. 4. New product and pack/format development • New initiatives applied to product but also communication of relevant format and pack type/size for a specific occasion, based what shoppers and consumers need. 5. Visibility, Display and Theatre • Make the category more exciting to shop. Add theatrical elements and an experience. AR

Norrelle Goldring is Head of Shopper Insight & Retail Strategy at global consumer research and retail datahouse GfK. She has 20 years’ experience in retail and liquor across manufacturer, retailer and agency roles with companies ranging from Diageo to Coca-Cola to Vodafone Stores. Norrelle helps improve shopping experiences by understanding how and why people buy things. At last count she had visited more than 700 of Australia’s cellar doors and over 100 US brewpubs and bourbon distilleries. Call Norrelle on 0437 335 686 or email norrelle.goldring@gfk.com.

Appliance Retailer May 2016

FEATURE

AR DISHWASHERS

OUTLOOK

INNOVATION brings out the best

BY KYMBERLY MARTIN

ishwasher performance is top of the consumer’s mind by far, according to the latest 2016 Canstar Blue customer satisfaction ratings. The performance factor was rated by 44% of respondents, followed by layout (22%), value for money (13%), design (11%) and quiet operation (10%). 18% purchased a dishwasher online and the average spend was $848. Nearly a quarter of respondents expressed disappointment with their dishwasher purchase and nearly the same

number wished they had spent more for a better model. Surprisingly, over onethird admitted to still washing dishes by hand. For the third year in a row, Miele took out the overall satisfaction award, followed by Bosch, Smeg and Fisher & Paykel. Commenting on the survey, the head of Canstar Blue, Megan Doyle said: “Customers who are willing to pay extra for premium household appliances are benefiting from the results over time. Some of those taking cheaper options are fi nding they may have been better off spending a bit more upfront.”

It’s the kitchen workhorse that is no longer viewed as a luxury but an essential appliance and the latest generation of dishwashers are distinguished by a slew of features, especially when it comes to energy and water savings. Another is flexibility in the management of internal space for accommodating large plates and glassware. Strong performance in the housing and renovation market has contributed to some positive category growth with volume reaching 539,000 units in 2015, an increase of 3%, according to Euromonitor International. AR

THE MOST CONCENTRATED, INTENSE SMEG ‘DIAMOND’ SERIES PLANETARY ACTION DISHWASHER TECHNOLOGY IS ARRIVING

TRENDS

Housing and renovations driving growth

meg chose Australia to be the fi rst market for the global launch of its latest dishwasher range that was unveiled at Milan’s EuroCucina in April. The all-new dishwasher platform comprising 21 models, including five new Diamond Series dishwashers, was introduced to Australian retailers last month. Smeg Australia worked closely with the Italian design team to create

Tamara Buchanan – Smeg.

and introduce what head of brand, Tamara Buchanan told AR, “is one of the most attractive, sleek control panels” to the market. Buchanan said Smeg is continually developing new dishwashing technologies for better coverage and performance such as the orbital wash arm, shuttle and swing wash systems and now planetary. “The planetary wash technology delivers significantly better water coverage than any other dishwasher.” Retailers can thank a buoyant housing and renovation market for a tick-up in dishwasher sales, De’Longhi category

Helen Finlayson – De’Longhi.

marketing manager, Helen Finlayson said. Express wash and dry cycles for the time-starved consumer and energy and water efficiency rate highly with consumers too, she said. Design is an interesting one, unlike other kitchen appliances, dishwasher styling tends to fit into the ‘classic’ mould: “To last the test of time, no matter what the style of kitchen.” Finlayson said that while there is growth nationally, it is New South Wales and Queensland that are “showing the way”. For another perspective on the market, AR spoke to LG Electronics Home Appliances marketing manager,

Brad Reed – LG Home Appliances.

Brad Reed, who explained that appliances are becoming smarter than ever and dishwashers are no exception to this trend. He gave Smart Diagnosis on selected LG models as an example: “the dishwasher emits audible signals that transfer information over the phone if there is a problem”. This feature is designed to save consumers time and reduce the need for a callout. “Consumers are also looking for reliability, efficiency and convenience in this category,” he said.

“The planetary wash technology delivers significantly better water coverage than any other dishwasher.” Tamara Buchanan, Smeg.

While the dishwasher market penetration still lags behind household appliances such as refrigerators, cooking products and washing machines, the gap is closing, according to Electrolux Home Products, category manager dishcare Dominic Wong. “Our aim is to make dishwashers as essential as other household appliances.” Because dishwashers are not considered an essential purchase like refrigerators or ovens, in order to be more ‘desirable’ these appliances

AND DENSE PATTERN EVER TO HIT AUSTRALIA SMA16824

AR DISHWASHERS

Naila Cherkaski – Omega.

growth,” Shriro product manager, Naila Cherkaski said. The company is updating its dishwasher range in the second-half of 2016, with a focus on market needs for 45cm and 60cm freestanding models, compact benchtop and semi and fully integrated models. Noticing some consolidation for established brands is Glem Gas with managing director, David Gilmore commenting that this appears to have brought some stability and balance to the distribution channels. “There is some

“Retailers can thank a buoyant housing and renovation market for a tick-up in dishwashers sales.” need to have water and energy saving features along with technologies and programs that provide consumers with choice. Bosch Home Appliances product manager, Martin Szymiczek acknowledged that, “today’s consumer is demanding more value for money, flexibility and performance from a dishwasher”. He added that it was important that retailers recommend a dishwasher that meets consumers cleaning habits as well as their lifestyle. Water and energy consumption, noise level and convenience, are recognised by Bestlink International as key trend indicators. According to managing director, Henry Chang, “in the past 10 years we have seen dishwashers become

Henry Chang – Bestlink International. 26

Appliance Retailer May 2016

Helen Finlayson, De’Longhi.

Elisha Malcolm – Miele.

a ‘must have’ appliance and this trend will continue to create growth for the category”. The company will increase its range of Midea dishwashers this year from five to 12 models. Miele has picked up on a decline for built-under dishwashers as sales move into more streamlined products, like semi and integrated models, according to product manager, Elisha Malcolm. “These appliances blend in more with consumers’ kitchens.” Dishwasher sales are up at Omega, supporting the company’s no nonsense, “features you need and nothing you don’t,” strategy. “The Omega dishwasher range experienced growth in value and units of 5% in 2015, in line with market

fantastic new thinking in dishwasher technology with the high end brands and less overlapping between specifications, brands and pricepoints,” he said. “In the value end of the segment, where we operate with Emilia Glem dishwashers, the trend has moved towards cutlery drawers, full stainless steel fascias, split hose protection and electronic controls.” V-ZUG is also reinforcing the trend for environmentally conscious and well-designed product, that sales and marketing director, Mark Tragear said will continue to be in demand. “We have found that consumers will spend additional money on dishwashers where the value and feature set is tangible.” Dishwashers are more innovative, energy efficient and technologically advanced than they used to be, Arisit marketing communications co-ordinator, Shelley Neill said. “A well-known statistic that is worth repeating is that dishwashers use seven times less water and energy to run than washing dishes by hand.” AR

THE MOST CONCENTRATED, INTENSE AND DENSE PATTERN EVER TO HIT AUSTRALIA

SMEG ‘DIAMOND’ SERIES PLANETARY ACTION DISHWASHER TECHNOLOGY IS ARRIVING

SMA16822

smeg.com.au

AR DISHWASHERS

RESULTS AND RANGES

SMARTER FEATURES, flexible designs S

meg’s latest dishwasher range includes new features such as Smart Dry (EnerSave), Quick 5 fast programs and Active Aquastop. “One of five water safety and flood prevention features, Aquastop is unique because it electronically controls the flow of water from the mains to the dishwasher,” Tamara Buchanan said. Smeg has also developed a unique new optional Safe Stemware glass rack, comprising a kit that contains two racks to accommodate 10 glasses that will occupy half a bottom rack of each dishwasher in the range. Models where the bottom basket racks folds completely will fit four rows of five glasses. Other key features from the previous range are also carried across, for example, turbidity sensing for auto programs in some models. The new Diamond Series models also have white LED lighting and easy glide runners in the baskets with stainless steel handles.

Appliance Retailer May 2016

The four tall tank models also feature Smeg’s innovative flexi-duo folding top basket. Every Smeg dishwasher is manufactured in its state-of-the-art factory in northern Italy. Steaming up dishwasher sales quite literally at LG Appliances, is the TrueSteam dishwasher that delivers high temperature steam to remove baked on stains, reducing the need for pre-washing. As well as the innovative steam generating feature, Brad Reed attributed the sales surge to the “hugely popular” antifingerprint finish. LG will embark on a complete range refresh later this year with a greater focus on improved cleaning using steam and visual design. LG revealed a new dishwasher at CES in January, touted as its most advanced model ever. With a sleek black finish, it featured MultiMotion that delivers a full wash cycle in less than 60 minutes. LG is launching a similar appliance here, with different external cosmetics, later this year.

Improving energy and water efficiency features is a focus for De’Longhi, as well as developing new technologies to boost washing performance while reducing drying times. “One of our most popular dishwasher models and a great performer in its price segment, the DEDW650S, continues to build momentum. With its 5 star WELS rating and brushless motor technology that increases the life of the unit, it is a standout choice in a very populated field,” Helen Finlayson said. Electrolux Home Appliances will launch three Westinghouse dishwashers in July. These new models will be promoted in tandem with Westinghouse cooking and refrigeration products, Dominic Wong said. The intention behind this support strategy he said, “is to make the Westinghouse brand in dishwashing as big as it is in refrigeration and cooking”. Wong said the company is well placed with dishwasher brands at every price-point.

Miele Fully Integrated G6995 SCViXXL K20.

Midea Freestanding WQP12-U7209N.

Electrolux Home Products AEG 787782MOP. Bosch SMV88TX01A.

Emilia Glem GDW244SS. Bosch Home Appliances, which is Australia’s leading dishwasher brand, ticks all the boxes when it comes to features. Consumers often look for dishwashers that deliver on three core criteria: performance, resource efficiency and flexibility, and the company claims to supply on all of these, Martin Szymiczek said. “Bosch also offers a unique 10-year rust-through warranty and lifetime antiflood warranty.” With water and energy consumption top of mind with consumers, Bestlink International is bringing 5-Star WELS and 4-Star energy ratings to selected models in its 2016 Midea dishwasher range. The new line-up comprises sixsetting table top dishwashers and 12, 14 and 15-setting freestanding and fully integrated models. “We have conducted research on market trends, what leading technology will become available for dishwashers and what features and prices are right for this market,” Henry Chang said. A compact tabletop model with six place settings retails at $599. It sounds like the disappearing kitchen, but Miele has taken premium design another step upwards with its latest G6000 range that is completely concealed behind cabinet panelling without any visible handles. By gently knocking on the door, the Knock2Open

V-Zug Adora SLZWP. system opens and closes automatically. Four LEDs illuminated on the underside of the work top switch off at 20 minute intervals, one hour before the end of the program. Glem Gas has been testing a number of different models with the intention of broadening its offer to appeal to new kitchen builders. “Our main market typically has been the replacement

dishwashers, the LFF8M122AUS and LFF8M132AUS come with 5.5-star WELS rating. Another premium entrant in the category is Swiss group V-ZUG which markets the only heat-pump dishwasher, the Adora SLZWP. This model carries a 6-star energy rating and 5-star WELS rating, SteamFinish for spot-free cleanliness and a Racelette/Fondue

“Consumers often look for dishwashers that deliver on three core criteria: performance, resource efficiency and flexibility.” Martin Szymiczek, Bosch Home Appliances. market so it is a shift in our thinking,” David Gilmore said. “We have enjoyed good sales on the back of the new Glem GDW244SS dishwasher and the Emilia EDW62SS models.” Arisit’s latest dishwashers offer a range of standard features that Shelley Neill said goes beyond the star ratings and quiet operation. These include telescopic guide systems, a short time option and eight folding racks that form four zones for housing pots. The newest freestanding 14 place setting

cleaning program that removes bakedon cheese from cookware. Asko’s Series 6 range of dishwashers launched last year come with the “world’s largest load capacity” claim. Designed to hold 16 place settings, these models feature an advanced basket system for easy loading of large and odd-shaped items such as vases and serving dishes while the flexible top basket has its own spray arm and holds up to 15 sets of cutlery, small bowls and other utensils. AR www.applianceretailer.com.au

AR DISHWASHERS

FROM THE FLOOR

DISHING UP good sales

Leading Appliances national group manager, Nicholas Fry takes a positive view for dishwasher sales.

a number of factors. These included low interest rates leading to both new home constructions – “with almost all new homes these days having dishwashers as a standard inclusion”, plus people renovating existing properties and updating their kitchens. “All our members sell dishwashers, as it complements both our whitegoods and cooking businesses, which are very strong categories for Leading Appliances. We view the dishwasher category as a defi nite growth category, with great potential for increased market penetration, although a forecasted slowdown in housing construction and borrowing activity in the second half of 2016 could lead to a decline in the growth rate of dishwashers we witnessed

ishwashers are a good performing category for Leading Appliances, with members embracing this category strongly, Leading Appliances national group manager, Nicholas Fry told AR. “Anecdotally we know that market penetration of dishwashers is well below fridge and washing machine penetration per household, so we see this category as a defi nite growth opportunity for our business moving ahead.” He put the market growth of around 3% in 2015, with around 540,000 units sold, down to

PROMOTIONS

With $100 cashback, there are stacks of reasons to buy Bosch.

in 2014 and 2015.” However, he remained confident that dishwasher sales will continue to hold a significant share within the Leading Appliances business. “We did experience good growth in 2015 with dishwashers, in line with the market. We have a very strong brand offer in our stores, led by Dishlex, Westinghouse, LG, Asko, Fisher & Paykel, Haier and Teco. These seven leading brands represent a strong offer in terms of price points and features, water efficiency and place-setting capacity, allowing our members to meet customer wants and requirements. Some of our larger footprint stores also expand their brand offering to include some top-end European brands, such as Bosch and Miele,” Fry concluded. AR

Picking up on cashbacks, training and margins

$100 Cashback on selected Bosch dishwashers. 1 April to 31 May 2016. Eligible models: SMS68M32AU, SMS68M38AU, SMU68M25AU, SMS63M38AU.

Cashback

Conditions apply. Contact 1300 079 267, visit www.bosch-home.com.au, or see in-store for conditions. $100 Cashback via online redemption only. Must be paid for in full during the promotion period. Excludes commercial purchases, trade seconds, scratch and dent stock, ex-display or used stock and any lay-bys (unless initiated and paid for in full during the Promotion period), hire purchase or rental agreements and all purchases made directly from BSH Home Appliances Pty Ltd.

BOSCH Untitled-1 1

Until May 31, 2016, Bosch Home Appliances is offering a $100 cashback on the Series 6 freestanding dishwasher range and Series 6 Built-Under range. 30

Appliance Retailer May 2016

8/04/2016 10:29 am

DE’LONGHI

De’Longhi made a strong commitment to improving its training platform in 2015 and will continue to develop programs for in-store training throughout 2016.

GLEM GAS

Emilia Glem’s policy on promotions is to offer a good margin on sales and that will continue to be the case when it comes to activating dishwasher sales.

This hero product in the latest range brings safety features and fast wash programs to the forefront of dishwasher technology in addition to improved water treatment.

Smeg Diamond Dishwasher DWAFI6D15T  6-star WELS rating/4-star energy rating  Planetary wash for better water coverage  Five pre-set Quick Wash programs including 27-minute fast wash  All white LED internal light  Smart Dry (EnerSave) natural condenser drying  Total Aquastop /child-control lock

LG Dishwasher LD-1481S4  14-place setting capacity  Extra room for larger serving dishes  Smart Diagnosis emits audible signals when problems occur  Stone silver ﬁnish and slim control panel

RRP: $1,299

LG: 1300 542 273

RRP: $2,790

Smeg: 02 8867 4888

PRODUCT GALLERY

The interior of this dishwasher has enough space to hold large serving platters while the exterior reﬂects a trend to sleek design with a slimline control panel.

De’Longhi Dishwasher DEDW650S  15-place settings  Triple stage water ﬁltration  Extra dry function for better drying results  Dual zone half load wash option

RRP: $1,199

De’Longhi: 1800 126 659 The large cabinet accommodates a generous 15 place settings and there is an extra dry function for improved drying results. The ﬂexibility of the machine extends to the half load wash option.

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AR NEW APPLIANCES

iRobot Braava 380t Floor Mopping Robot

he iRobot Braava Floor Mopping Robot cleans hard ﬂoors quickly and quietly, without hassle. It also automatically dries and damp-mops ﬂoors using two cleaning modes, keeping dirt and dust under control.

RRP: $599

Sampford IXL: 1300 727 421

De’Longhi PrimaDonna Elite coffee machine

his high-end machine comes with inﬁnite personalisation possibilities for coffee lovers who like to entertain at home. And for the most discerning (and tech lovers) who like to stay ahead of their friends, DéLonghi’s Coffee Link App, allows favourite coffees to be made with complete freedom.

RRP: $3,599 - $3,199

De’Longhi: 1800 126 659

NEW APPLIANCES Ilve custom cooking colour burst

lve has brightened its oven range with an extensive colour palette from a zesty bright lemon to an autumnal warm berry. The colours, which can be customised to any Ilve oven, are based on the RAL colours, the standard instrument for choosing individual paint and coating designs used by architects and designers.

RRP: Various

Eurolinx: 1300 694 583

Appliance Retailer May 2016

Mitsubishi Electric Wi-Fi Control

reated for busy lifestyles, the Wi Fi Control unlocks the door to smarter heating or cooling. The domestic Mitsubishi Electric high wall, ﬂoor mounted and ducted air conditioners can now be connected to the smartphone, tablet or online account with each unit managed remotely via the internet.

RRP: $279

Mitsubishi Electric: 1300 190 923

Zip Hydro Taps

he Zip Arc, Cube and Elite Hydro Taps give instant chilled, boiling or sparkling water, all from the same tap. They are available in bright chrome, brushed chrome, matte black, gloss black as well as the newly-released rose gold.

RRP: $4,900

Zip Industries: 1800 638 633

Smeg Tailored Laundry Centres

meg’s resourceefﬁcient laundry centre comprises two washing machines, a sensor-controlled heat pump dryer and sensorcontrolled condenser dryer. It delivers laundry options for all fabrics, all family sizes and for all family needs including those with sensitive skin or allergies.

RRP: $1,390

Smeg: 02 8867 4888

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AR NEW GADGETS

Uniden Titanium 2-way radio series From hiking, biking to off-road adventures, the Titanium series offers access to 80 channels with extended long range coverage. Built for harsh Australian conditions, selected models have a fully submersible waterproof body based on IPX7 waterproof standards. The range also offers four audio settings and an open scan function.

Olympus Tough TG-870 camera

RRP: $89.95 Uniden: 1300 366 895

This rugged compact camera boasts creative controls and enhanced LCD screen visibility. Designed for outdoor enthusiasts, explorers and families with young children, it features the widest lens of any compact digital camera and a 180 degree ﬂip-up screen with a 21mm ﬁve times zoom.

RRP: $399 Olympus: 1300 659 678

KEF M100 in-earphones Users can expect high-resolution sound in a snug, comfortable fit in a small and light design. Accessories include three different tip sizes, round carry pouch and a flight adapter. Compatible with all Apple products and most other devices, the earphones are available in four luxury finishes.

RRP: $239 Advance Audio: 02 9561 0799

Parrot Zik 3 headphones

Swann Economy HD dash camera

Zik 3 is reinvented with wireless charging, high ﬁdelity sound quality with a USB, and smart noise cancelling. The design of the headphones has been modiﬁed to incorporate an enlarged headband for increased comfort. The ‘Parrot Zik’ app is now compatible with Apple Watch and Android Wear.

The full HD camera is equipped with G-sensor accident detection, as well as a vehicle safety system that detects sudden acceleration and collisions. It offers video and audio in real-time, USB connectivity, wide angle 140 degree lens and is easy to set up.

RRP: $599 Parrot: 1800 121 951 34

Appliance Retailer May 2016

RRP: $89 Swann: 03 8412 4600

COMPANY INDEX AR COMPANY

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READERSHIP GROUPS

Page 6

Advance Audio .................................................................................................34 Arisit ...........................................................................................................26, 29 Asko ..................................................................................................................29 Bestlink International................................................................................26, 29 Betta Home Living ...........................................................................................20 Bosch ................................................................................................... 26, 29, 30 Braun................................................................................................... 15, 16, 21 Breville ................................................................................................ 16, 20, 21 Dick Smith....................................................................................................8, 12 Electrolux ...............................................................................................7, 25, 28 Euromonitor...............................................................................................14, 24 GfK....................................................................................................................22 Glem Gas ............................................................................................. 26, 29, 30 Godfreys ...........................................................................................................11 Groupe SEB ......................................................................................... 16, 18, 20 Ilve................................................................................................................5, 32 iRobot...............................................................................................................32 Kenwood ............................................ 13, 14, 15, 16,17, 20, 25, 28, 30, 31, 32 KitchenAid ...................................................................................................5, 12 Leading Appliances .........................................................................................30 LG ........................................................................................................ 25, 28, 31 Maxwell.............................................................................................................. 9 Miele ......................................................................................................5, 26, 29 Mitsubishi Electric .....................................................................................19, 33 Morphy Richards .......................................................................................16, 18 Olympus...........................................................................................................34 Omega .............................................................................................................26 Panasonic ...................................................................................................16, 18 Parrot ................................................................................................................34 Pro Appliances ...........................................................................................15, 18 Smeg ....................................................5, 15, 16, 21, 23, 24, 25, 27, 28, 31, 33 Sampford IXL ..................................................................................................... 9 Samsung ......................................................................................................6, 12 Sony .................................................................................................................12 Sunbeam................................................................................... 6, 12, 15, 18, 20 Swann ..............................................................................................................34 Target ...............................................................................................................10 Uniden .............................................................................................................34 V-Zug ..........................................................................................................26, 29 Vitamix .............................................................................................................18 Wesfarmers ......................................................................................................10 Zip ....................................................................................................................33

DISCLAIMER This publication is published by The Intermedia Group Pty Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by Australian and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials. The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information. All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded save for those conditions and warranties which must be implied under the laws of any State of Australia or the provisions of Division 2 of Part V of the Trade Practices Act 1974 and any statutory modification or re-enactment thereof. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication. Copyright © 2016 - The Intermedia Group Pty Ltd.

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TURN UP THE HEAT ON SALES THIS WINTER

This winter, Fujitsu General is launching a multi-million dollar marketing campaign, across TV, cinema and online starring the ever popular Mark Taylor. Our Free Money promotion is also back, offering consumers up to $400 on a pre-paid visa card when purchasing a Fujitsu Reverse Cycle Air Conditioning System. So, make sure you stock up now to take advantage of this great offer and prepare for the rush of customers to your store.

For more information contact your local Fujitsu Business Development manager today or call 1300 882 201.

150

PRE -PAID VISA CARD SPLIT SYSTEM

With every Fujitsu Reverse Cycle Inverter Split System Air Conditioner with a rated cooling capacity of 3.5kW or below. Excludes cool only systems.

200

PRE -PAID VISA CARD SPLIT SYSTEM

With every Fujitsu Reverse Cycle Inverter Split System Air Conditioner with a rated cooling capacity above 3.5kW. Excludes cool only systems.

400

PRE -PAID VISA CARD MULTI SPLIT SYSTEM

With every Fujitsu Reverse Cycle Inverter Multi Split System. Excludes cool only systems.

Starts 01/03/2016 & ends 31/07/2016. Open to Australian residents who purchase Eligible Product for domestic purposes. Under 18â&#x20AC;&#x2122;s require parent/legal guardian consent. Registered builders, commercial & residential developers, trusts, companies, businesses, commercial & residential developers or developments, subcontractors, installers or resellers & immediate family not eligible. To claim gift: purchase Eligible Product from a participating Fujitsu retailer or dealer. Complete claim form at www.fujitsugeneral.com.au. Multiple claims permitted. Proof of purchase required. Gift: 1 x Fujitsu Pre-paid Visa Gift card (valued at up to $400). Value of Gift card subject to type of Eligible Product purchased. Fujitsu Pre-paid Visa Gift card must be activated within 3 months of date of issue. Claimants agree that the Promoter may collect their personal information to enable it to provide them with marketing materials by mail, telephone & electronic messages. For Privacy Policy www.fujitsugeneral.com.au/help-centre/privacypolicy. Promoter: Fujitsu General (Aust.) Pty Limited (ABN 55 001 229 554) of Eastern Creek Drive, Eastern Creek NSW 2766. Full terms: www.fujitsugeneral.com.au/promotions