Appliance Retailer November 2015 by The Intermedia Group

November 2015

RETAILER

APPLIANCE BROWNGOODS WHITEGOODS SMALL APPLIANCES COMPUTERS & COMMUNICATIONS

When penalty rates hurt There’s more to Move FEATURES • Give me more Coffee • The stability of Refrigeration • Microwaves shapeshift

✱ contents

VOLUME 21, ISSUE 10

APPLIANCE

33 Refrigeration Feature

06 News

14 Digital Retailer

44 Microwave Feature

12 Retail Rules

17 Coffee Feature

49 New Appliances

BROWNGOODS WHITEGOODS SMALL APPLIANCES COMPUTERS & COMMUNICATIONS

When penalty rates hurt There’s more to Move FEATURES • Give me more Coffee • The stability of Refrigeration • Microwaves shapeshift

First line of defence Uniden’s latest range in surveillance, the Smart Home Control system is an innovative technology to complement the home, allowing it to be wirelessly monitored and controlled. The Outdoor and Indoor Kit includes magnetic sensors for doors and windows, an indoor siren, HD Internal Camera and Outdoor Weatherproof Camera. The Outdoor Weatherproof Camera is great for driveways, outdoor areas where capturing and viewing footage is critical. At the touch of a button, the key remote control can arm and disarm the home, and begin filming on cameras connected to the system. The future-proof system can also be expanded with additional sensors, cameras and sirens, making it the perfect DIY surveillance solution. Uniden’s Guardian Home app for iOS and Android smartphones and tablets provides users with greater flexibility and control. The app enables homeowners to logon remotely to view footage in real-time, monitor movements and even set off sirens to deter intruders.

13 Best of Service

November 2015

RETAILER

Cover

Story

05 Editorial

APPLIANCE RETAILER NOVEMBER 15

✱ company index 2nds World 6 Appliances Online 48 Bestlink 2, 3 Betta Home Living 6 Bose 16 Bosch 45, 47 Breville 22, 28, 29, 30, 32, 46, 47, 48 Camera House 6 Canstar Blue 44 Dacor 44 David Barke Appliances 40 De’Longhi 20, 23, 28, 42, 49, 51 Dorsett Retail Pty Ltd 6 E&S Trading 32 Electrolux 30 Eurolinx 36 Euromonitor 18, 19 Fhiaba 36 Fisher & Paykel 35 Gaggenau 35, 41, 51 GfK 12, 15, 18, 34 GoPro 16 Harvey Norman 8 Home Appliances 45 Ilve 22, 30, 42, 44, 51 Imation 9 JB Hi-Fi 5 Jura 22, 24, 25, 30, 32 Kenwood 50 KitchenAid 20

Liebherr 36, 38, 41, 42 LG 7, 35, 38, 51 Map Coffee 50 Midea 46, 47 Miele 31, 36, 40, 41, 42, 44, 47, 48 Mitsubishi Electric 34, 35, 38, 39 Move by Dick Smith 14, 15 Nespresso 20, 24, 26, 27, 28 Omega 8, 42 Panasonic 7, 35, 45, 46, 47, 48, 50 Philips 16 Photo Continental 9 Polaroid 16 ReportLinker 44 Retravision 48 Samsung 44, 50 SanDisk 16 Sharp 33, 34, 35, 37, 38, 43, 44, 45, 47 Siemens 45, 47 Smeg 45, 47, 52 Sony 7 Sunbeam 10, 17, 18, 19, 21, 24, 32, 51 TECO 34, 35, 36, 38 TDK 9 The Good Guys 9 Toppro 11 Uniden FC, 4 V-Zug 24, 30, 31, 45, 47 Westinghouse 38, 50, 51 WWW.APPLIANCERETAILER.COM.AU

editorial Q

Nowhere to hide when customer service goes wrong

eptember 21 was a tough day for JB Hi Fi. The manager of the Queensland Mt Ommaney store had backed a security officer who refused entry to a young man, James Milne with Down Syndrome. James had been mistaken for another similar looking man who had previously been barred. Understandably James, his family and in particular his sister Victoria were extremely distressed about the experience. If this had happened in 2005, the matter would most likely have been settled directly between JB management and the Milne family. But it happened in 2015 when social media dominates the lives of anyone under the age of 40. And it was to Facebook where Victoria went to tell the story of James’ experience at JB Mt Ommaney. For readers who may think that social media can be disregarded, digest these stats: Facebook had over 1.18 billion monthly active users as of August 2015. Facebook is also the fastest company in the Standard & Poor’s 500 Index to reach a market cap of US$250 billion. From any perspective, this is a force far more powerful than me, you, your business and JB Hi Fi, as CEO Richard Murray was about to discover by September 23. One Facebook post by Victoria went viral resulting in 161,000 likes, 39,000 comments and 94,000 shares within 48 hours. Despite the company apologising in its Facebook site, JB shoppers upset about the incident responded with outraged comments. The JB Hi-Fi Facebook apology post garnered 2,500 likes, almost 400 shares and over 2,000 comments.

The story was then covered by all the major media channels in Australia. Despite this furore, Murray acted decisively and quickly. He contacted the Milne family directly, offering a personal apology which they graciously accepted. Later they visited the Mt Ommaney store and accepted another apology from the manager who ensured that James had a very special experience. Victoria has closed the chapter by posting positive images of James at the store. JB, one of Australia’s corporate retail darlings is to be congratulated for the handling of this matter. At no time did it shrink from the crisis and ultimately they made the Milne family feel that they mattered. But the genesis of the problem lay with the initial attitude of the Mt Ommaney store manager and JB now has much work to ensure this remains an isolated experience. We often scoff at the US tendency for sentimental nationalism, but perhaps the legendary Sam Walton got it right when he asked over 1,000 employees to take this oath in his presence: “Now I want you to raise your right hand and remember what we say at Wal-Mart, that promise we make is a promise we keep and I want you to repeat after me. From this day forward, I solemnly promise and declare that every time a customer comes within ten feet of me, I will smile, look him in the eye, and greet him. So help me Sam”.

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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 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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Claire Moffat

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✱ news

How penalty rates are eating industry proﬁts

enalty rates are the thorn in the side of every retail business. Whether large or small, the additional cost of paying staff to work on the weekend, late nights or public holidays, eats into profits making it just that harder to stay viable and invest back into the business. Emily Bencic reports. Appliance Retailer has spoken to several independant retailers who, unencumbered by corporate restrictions can talk more freely about how penalty rates directly impact of their business. In Western Australia, Dorsett Retail managing director, David Dorsett-Lynn says penalty rates are a challenge for retailers who require knowledgeable staff to serve customers on weekends. “You end up trading on a Sunday and because it isn’t a strong shopping day, you just make no money because sales are absorbed by the cost of wages. However, Dorsett-Lynn believes that there is some scope to adjust the base rate if the penalty rate was to be changed. “We should all remember penalties were introduced in the 1950s when church on Sunday was the Australian norm, so as a country we wanted a disincentive to stop stores opening, but the world has changed,” he said. Katoomba Camera House proprietor, Steve Norris agreed with Dorsett-Lynn, saying that his store is forced to keep the doors closed and

David Dorsett-Lynn – Dorsett Retail.

APPLIANCE RETAILER NOVEMBER 15

operate a six day week due to the cost of Sunday penalty rates. “I have staff that would gladly work the Sunday but the penalty rates make it non-profitable. We did open Sundays for two years with just my wife and myself but I realised that the small margins in our industry would not allow us to pay staff for Sunday work. “If we could operate on standard wages we would be able to open seven days a week and possibly give someone else a job,” Norris added. Bundaberg Betta Home Living store manager, Steven Ortt also argued that penalty rates stop small businesses from opening. “If penalty rates were to be de regulated I think it would be beneficial for most small business in industries, such as retail, that attract weekend hours,” he commented. Conversely, 2NDS World owner, Peter Hammerman says if penalty rates were reduced or abolished, it would be less of an incentive for employees to work. “It is already difficult to attract knowledgeable, hard-working sales staff for the busiest day of the week. Most salespeople want to work for the penalty rate,” he said.

Steve Norris – Camera House.

ARA collaborates with Government The Australian Retailers Association (ARA) came out in support of the Government’s intentions to evaluate the current Sunday penalty rates system for retail and hospitality. Prime Minister Malcolm Turnbull confirmed that the Government will investigate penalty rates in line with the “seven day consumer economy”, which sees Australians hitting the shops on Sundays as a normal course of lifestyle in 2015. “It is important for retail workers to be compensated for work outside

“Momentum is building in the Coalition for industrial relations reforms that could see weekend penalty rates cut…” traditional hours, however, this should be at a sustainable rate for both retailers and retail employees,” ARA spokesperson, Carla Bridge said. ARA Executive Director, Russell Zimmerman added, “A reduction in Sunday penalty rates will allow retail employers to be able to provide more labour hours to retail employees who would like to work on Sundays. “For many Australians, Sunday has become a normal shopping day, making ‘above the norm’ penalty rates quite unnecessary.” “Australian lifestyles are changing, and it is important to allow physical retailers the scope to be able to keep up with this change and compete effectively against new challenges, such as the 24/7 global marketplace and online.” WWW.APPLIANCERETAILER.COM.AU

news ✱ Employees happy to work at reduced rate Independent research commissioned by the retail industry demonstrates retail employees are prepared to work on Sundays for a lower penalty rate, while analysis by the Shopping Centre Council of Australia shows that between 2009 and 2014, Sundays experienced the highest growth in customer foot traffic to shopping centres. An industry survey of 690 retail businesses in August indicated that just under 70% of stores trade for fewer hours on Sundays than on Saturdays, and 50% of those do so because of labour costs. Additionally, 64% of retail businesses would allocate more

hours to employees on Sundays if the Sunday penalty was reduced to 50% (time and a half) – a finding backed up by two other independent reports. The ARA has undertaken a lot of independent research to determine the impact lowering penalty rateson workers and employers. This research asked retail workers how willing they would be to work on Sundays at different rates (25%, 50%, 100%). Beyond 50% (time and a half), retail workers indicated there was no added incentive to work on Sundays, with the same amount saying they would be happy to work on a Sunday at 50% (time and a half) as 100% (double time).

People Moves LG GAINS MARKETING MANAGER, FAREWELLS SALES MANAGER Angus Jones has filled the position of general manager of marketing for LG Australia which was left vacant following Lambro Skropidis’ departure in July to join competitor Electrolux. Jones joins LG most recently from Dell, where he served as the global marketing director. Meanwhile, LG Australia general manager of sales, Michael Doyle (pictured) has left the company after seven years. He has not yet been replaced and during the transition period, LG managing director, Youngik Lee will serve as acting general manager of sales.

PANASONIC STRENGTHENS TOUGHBOOK TEAM Panasonic Australia has assigned Stuart Buxton to the role of Toughbook senior product marketing. Buxton previously held the position of senior manager at Electronic Arts. Former product marketing manager, Jason Lee, has moved into the newly created position of national marketing manager for the Panasonic Business Systems Group. Russell Zimmerman – ARA.

Employment Minister wants reform New Employment Minister Michaelia Cash says Sunday penalty rates are hurting tourism and forcing businesses to not open, denying jobs to university students and women. In a media interview last month, Senator Cash described a draft proposal by the Productivity Commission to bring Sunday penalty rates in certain industries into line with lesser Saturday rates as a “minor” recommendation. “What I get perturbed by is that there are businesses which cannot open on a Sunday because the wages bill far WWW.APPLIANCERETAILER.COM.AU

exceeds what they can take in,” she said. However, while she welcomed a debate on penalty rates, she said any decision to reduce them would be solely left to the Fair Work Commission, which is currently reviewing rates. “In terms of my approach to the portfolio, the goal of any changes needs to be to achieve more ﬂexibility because ﬂexibility in 2015 is what so many people want, whether it’s an employer or an employee. We also need to achieve higher levels of employment but, at the same time, we need to reassure Australians that their conditions are not threatened.”

MARKETING HEAD DEPARTS SONY COMPUTER

Sony Computer Entertainment head of marketing communications, Larissa Hazel, has left the company after more than six years. Hazel has taken the role of chief marketing officer for a private company with a portfolio of luxury brands. APPLIANCE RETAILER NOVEMBER 15

✱ news Harvey NZ caught out on dirt cheap deals By Claire Moffat Harvey Norman New Zealand continues to hold firm against hundreds of its customers who were caught up in its online sales glitch that advertised expensive lounge suits, dining tables and chairs, and other products for less than $100. The retailer sent an email to affected consumers that stated it is within its rights not to honour the sales, according to NZ media. In the email, Harvey Norman apologised for the pricing “error”, which was a result of “technical issues”. It set out its “terms of use” as the reason for not honouring any of the sales. NZ media reports say the email stated: “You will be aware that when you attempted to purchase products on our website, you agreed at the checkout to our Terms of Use… the contractual basis of our relationship with you, and make it clear that when you submit an online order to use you are making an offer to buy the products… The Terms give us the right to refuse or reject an offer to

buy products, to alter pricing at any time and exclude liability to customers for any loss of damage relating to mistakes or inaccuracies on the website.” Customers are reportedly seeking legal action and refute the email, insisting their Harvey Norman tax invoice is also terms and conditions of a done deal.

Lawyers give legal advice The New Zealand Herald quoted Auckland barrister Patrick McGrath who said the Harvey Norman sales were now official contracts as they had been completed.

Wellington lawyer, Don McIllroy advised customers to fight for their goods, urging them not to settle for a $100 voucher and refund. “Under section 13 (g) of the Fair Trading Act 1986, Harvey Norman were making a false or misleading representation with respect to the price of any goods or services,” McIlroy said. However, principal of Wigley Law, Michael Wigley, said where there was a genuine mistake by Harvey Norman and the buyer figured the price was too good to be true, it was unlikely they could legally force sale at the low price. Customers would have to prove they believed the advertised price was genuine. Meanwhile, Consumer NZ, consumer advisor Maggie Edwards, said the watchdog could have sympathised with Harvey Norman if the low prices had been changed after one or two hours. “We’re surprised it took such a large company eight hours to fix the problem.”

Omega powers up oven market By Emily Bencic Omega is bringing the power, control and usability of commercial appliances into the domestic home with its Neil Perry Kitchen range by Omega. The range features the most powerful ovens on the market (up to 6400 watts) with innovative individual element control system. The range was unveiled to select retailers and media last month at Australia’s finest and most awarded restaurant, Rockpool, in the Sydney CBD. Shriro Australia general manager of appliances for Omega, Blanco and Neil Perry Kitchen, Craig Handley said the company had a goal to fill a gap in the market. “We wanted to create a product range to specifically cater to consumers wanting to cook like a professional chef. It was vital to involve a chef in the product design process and Neil was a perfect fit because he had clear ideas on his ultimate domestic appliances and is trusted by Australian consumers,” Handley told Appliance Retailer. 8

APPLIANCE RETAILER NOVEMBER 15

“Neil wanted the power, control and usability that closely matched the commercial appliances in his restaurant kitchens. This range therefore features the most powerful ovens on the market (up to 6400 watts), with a new innovation in control through the individual element control system. This gives the chef full control over the radiated heat within the cavity and enables professional style cooking not previously possible in a domestic oven. “The gas cooktops feature the highest power (up to 24mJ) and a trivet design that gives the chef a stable and ﬂat working surface enabling pots to be slid across it from burner to burner or on and off the heat. These products are driven by functionality and performance first - function over form,” he said. There is already strong word of mouth and interest from consumers for the range, according to Handley. “Over the next month selected Harvey Norman stores around Australia

L – R: Harvey Norman Bundall, QLD, Cooking Specialist, Troy Brown and Harvey Norman Joondalup, Cooking Specialist, Michael Little

will be equipped with product displays. An above the line and social media campaign will begin before year end. “I believe the product will stand apart from other products at similar price points due to its raw performance and functionality,” Handley concluded. WWW.APPLIANCERETAILER.COM.AU

news ✱ From 1-100: How The Good Guys grew up By Claire Moffat The location was Essendon in Victoria and the year was 1952 when Ian Muir began retailing electrical appliances under the brand name Mighty Muir. By 1992 Muir owned 14 stores across Victoria and Queensland and on Wednesday September 29, 63 years later the company has opened the doors of its 100th Australian store in North Lakes, Queensland. The Good Guys store network now consists of 29 stores in New South Wales, 26 in Victoria, 21 in Queensland, 14 in Western Australia, 5 in South Australia, 3 in ACT and 1 each in Northern Territory and Tasmania. The Good Guys CEO, Michael Ford, said the opening of the 100th store was a significant milestone. From humble beginnings, the retailer has become a household name and one of Australia’s leading retail brands.

“The North Lakes store is a credit to our history, a culmination of a simple but customer friendly environment.” “We remain dedicated to providing our customers with the best range of electrical

Au revoir as Photo Continental closes...

Photo Continental, which traded as a specialist photo retailer for almost seven decades, closed the doors of its Mt Gravatt, Brisbane store after the

company announced the news on its Facebook Page on September 14. “Photo Continental has had a long history as a family-owned and operated business, having first opened its doors over 60 years ago in 1951. It is with deep regret that we have had to close our doors on our photographic sales and laboratory departments.

appliances at the most competitive prices with a balanced and integrated offering online coupled with our now 100 physical stores to service customers 24/7 when and how they like,” Ford said.

“With the change in consumer purchasing habits and along with the general cost of doing business in the current retail environment, Photo Continental can no longer offer the level of customer service and competitive pricing we have been renowned for over the past 64 years,” the notice said. The company received around 100 comments in the day after the Facebook announcement, expressing sadness at the closure.

...while Imation also begins to pack up The legacy brands TDK and Imation will disappear from local retail shelves in 2016 when Imation Corporation exits the global consumer product market and tape media business on December 31. Speaking exclusively to Appliance Retailer, Imation general manager, Asia Pacific Region, Des McDaid explained that the decision was due to the continued declines in traditional media and ongoing market pressures that minimise both the revenue and the profitability for the company. McDaid said, “It is a sad day for the industry with another business closure, especially when Australia WWW.APPLIANCERETAILER.COM.AU

was performing well. Sales in our last quarter were strong and we had a great retail customer base.” Imation ranged Imation and TDK products through Officeworks, Dick Smith, Woolworths and Australia Post. McDaid is responsible for 74 staff throughout the Asia/Pacific region with 28 of those working out of the head office in Sydney’s northwest suburb of Baulkham Hills. In his letter to retail customers he explained: “Imation would like to thank you for the continued support and loyalty you have shown over the years and wish

Imation head office in Baulkham Hills.

you and your business every success for the future. “Our team will work with you to make any transition required as painless as possible. There will be opportunities for stock clearance and promotional deals into the Christmas period.” APPLIANCE RETAILER NOVEMBER 15

✱ news

From designing planes to kettles Meet the man behind Sunbeam’s latest benchtop collection

ne of the world’s most inﬂuential designers, Marc Newson, acclaimed for his designs in bicycles, cars, commercial aircrafts and signature sculptural pieces, has shifted his expertise to the benchtop appliance category. Newson has partnered with Sunbeam to design the brand’s latest toasters and kettles, saying it was an attractive opportunity to design products he uses in everyday life. Emily Bencic reports. “As a consumer and a designer, when I visit a store to buy an appliance, I am always disappointed by the lack of choice for well-designed items of quality. It was a huge inspiration and spur when I received the brief to design appliances,” Newson said. Newson says he applies “the same logic, the same design language and the same vocabulary” to all of the products 10

APPLIANCE RETAILER NOVEMBER 15

he designs, whether it’s an aeroplane, watch, car, clothing or an appliance. “I consider the piece as an object that needs to be designed and then think how I can solve the design problems with beauty, simplicity and innovation. “I believe eco-efficiency is a necessary and growing trend in the appliance market. It plays a vital role in the design of any appliance today, not just in Australia, but around the world.”

Why the benchtop category? With his Australian heritage, Newson was very familiar with Sunbeam as an iconic brand. “I remember Sunbeam appliances from my childhood and I used to admire their weight and solidness, particularly the cake mixer, as well as its striking enamelled colour.

“I want consumers to enjoy the feel of the products. For example, holding the handle of the kettle, which looks simple but was very complex to engineer. It is very important to me that consumers form a kind of bond with the products that I design,” he said. “What I enjoy most about my work is learning about the different processes involved in manufacturing and understanding new technologies. It is like one big university degree without having to go to university. “With this new project, I spent a great deal of time researching and testing toasters and kettles. I feel that I have a lifetime experience for designing these items because I drink a lot of tea and eat a lot of toast, so I hit the ground running with this project,” Newson concluded. WWW.APPLIANCERETAILER.COM.AU

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✱ retail rules

Retail Growth Objectives This article in the ‘Retail Rules’ series, Norelle Goldring from GfK discusses trafﬁc or ‘footfall’ as a retail growth driver.

raffic or footfall is the number of shoppers crossing the store, department, aisle or category threshold in a given period. There are two kinds of traffic: new and repeat. Traffic might be repeat to the retailer, but new at a store level, or new to a category but not to the store as a whole. Traffic is linked to the drivers of individual store selection. Shoppers typically choose stores based on proximity, range, ease of shopping, overall value, service and knowledgeable staff, occasion shopping for, shopping trip type, and special offers. Proximity – how close your store is to a shopper’s work or home - can’t be inﬂuenced, but the rest can, and all do, inﬂuence traffic. Improving store range and shopping experience is a long term retail goal and may result in increased store traffic

✱

NORRELLE GOLDRING & GfK

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 NOVEMBER 15

over time. Retailers need to understand which categories and brands are destination or traffic driving categories, whether on or off promotion.

Why is the trafﬁc there? Not all traffic results in a purchase so it is important to understand your trafficbrowse-buy ratios. If you have a low traffic-browse but a high browse-buy ratio in a category it is likely that the category is an intentional destination purchase, but for only a few shoppers. Conversely, if you have a high trafficbrowse but a low browse-buy ratio, you are doing a poor job of converting shoppers. This is typically to do with range, space and layout, or price. Not buying an intended product for one of these reasons is ‘abandonment’ the shopper has abandoned the category or purchase. Shoppers might be in the store to research, particularly if it’s a higher involvement, higher spend and/or more complex category like consumer electronics. Shoppers might also be browsing a category to see if one of their brands is on special whilst in the store for something else. If not, they leave the category and aisle – but it’s not really abandonment, because the purchase wasn’t necessarily planned. Or they might be ‘boomeranging’, which is when they don’t shop an entire aisle or category, they go to the part of the aisle where their category is located, pick up what they want and leave.

Measuring trafﬁc It’s important to understand your traffic numbers at store, aisle and category levels – both the benchmark or baseline, and promotional period traffic. • Traffic counters assist in measuring footfall and can be compared to your transaction numbers to understand your overall traffic/buy (conversion rate, without the browsing stage) at a store level.

• Your POS and loyalty card transaction data will help you understand your current converted (purchased) store traffic levels, with transactions as the proxy. However, transaction data won’t tell you who is not traversing an aisle, or who/how many are abandoning, or how many are researching without purchasing, or traffic/browse/buy ratios. • You need to observe shoppers to see your product level traffic/browse/buy ratios. How many products shoppers look at, touch, pick up – in what order – versus what they put in the basket. Shopper observations can be done using video cameras or field researchers, who can physically watch shoppers for a week or two. (Existing CCTV cameras often only look at a certain portion of the store). At any rate, video cameras or researchers can get additional data such as gender, approximate age and dwell time – how long they spend in the category or the store.

Some ways to increase trafﬁc • Traffic to store: yes, promotions. But also targeted personalised offers to shoppers using the customer data on them that you have captured. You may be communicating with them digitally or on their mobile phones. It’s not just about price based catalogue specials. Loyalty programs and rewards schemes can be used for special offers at traditionally slow times of day and days of week. • Traffic to aisle/category: cross promote with other categories. Loyalty programs and rewards schemes can be used to drive traffic to certain categories by increasing the number of rewards obtained by shopping certain products in certain categories. Noise around new product releases, particularly for desirable brands. Apple iPhone springs to mind as an example. WWW.APPLIANCERETAILER.COM.AU

best of service ✱

Little Things, Big Impacts Often it is the little things, so small we don’t even realise, that provide the biggest inﬂuence on our work, our staff and our customers.

ecently I was with a client I had worked with a few months prior and while we enjoyed coffee and discussed another upcoming training workshop, she thanked me for the ‘advice’ I had given her at our last meeting, describing how much difference it had made to her work life. I was, of course, delighted with the feedback, but I must admit I’m not sure exactly what it was that I might have said that had made such an impact. Thinking about this later, it reminded me just how much impact seemingly small words or actions can have. For example: •A 1-degree error in reading a compass at the start of your journey can mean you’ll miss your destination completely 20 kilometres later. • If pilots landing at Australia’s busiest airport only got it right 99.9 per cent of the time, 36 planes per year would crash on landing. • A single comment from a radio interview I heard some 25 years ago led me to a major career shift. • Selling a customer an inexpensive add-on item can increase the net profit on a sale by more than 100 per cent. • My last minute decision to attend the opening of a client’s new office led to a 20-year writing engagement with Appliance Retailer. (And we’re very grateful — Ed.)

So, what’s the message here? Somewhat counterintuitively, it’s the little things that can often have an outof-proportion, major impact. I’d say it’s unlikely any of you have been bitten by an elephant, but I’m sure all of you have been bitten by a mosquito: proving that it’s the little things that can get to us. On the ﬂipside, those little positive things you do or say can also make a huge difference. In our industry those ‘little’ things can include: • A welcoming smile and attitude. (If WWW.APPLIANCERETAILER.COM.AU

you don’t like people, what the heck are you doing working in retail?) • Remembering your customer’s name and, sometimes, how it is pronounced. • Keeping your promises. • Going the ‘extra step’ (or ‘the extra mile’) for customers. • Following up to ensure total satisfaction.

Little by Little Someone once said, “It is only when we do the things we don’t have to do, that we are seen as being truly different”.

✱

With the kind permission of Bob’s widow Liz, Appliance Retailer celebrates his contribution to the industry with a look back at some of his wonderful articles.

Look for little things you can do or say that will make your customers’ day: with every sale, ask yourself, “What can I do that will add value for this customer?” With team members, reward effort and small steps as well as results.When working with or coaching others, small signs of progress are more important than you might think in building motivation and commitment.

By breaking new tasks down into ‘doable’ steps, you can build a worker’s confidence as they achieve small successes and are given positive feedback on the results. This reinforcing cycle of progress builds momentum. As confidence increases, results improve, as does energy and enthusiasm, which builds commitment. Facilitating progress is one of the most effective ways for leaders and coaches to build motivation and commitment in those people with whom they work. People like to know they are getting somewhere and that what they do is important and valued. Small-step goals include: • Actions that can take place within the next 24 hours. (“Make a list of qualifying questions you could ask customers.”) • Actions that are specific and concrete. (“Make a list of at least five qualifying questions you could ask a customer interested in a coffee machine.”) • Actions that are about starting something rather than stopping something. (No: “I want you to stop confusing customers by overloading them with technical specifications.” Yes: “I want you to start explaining product features in terms of how they will benefit the customer.”)

Celebrate success Always begin your meetings or coaching sessions by celebrating any progress from last time, even if it’s not that great. This is a proven way to build motivation, energy and keep that momentum going. The feedback should also be specific and concrete, rather than saying, “You’re doing really well”, try — “I like the way you grouped the kettles and toasters together in the Mother’s Day display you put together. Sales of both were up and we had a lot of positive comments about the display”. So what small steps can you take to move forward? APPLIANCE RETAILER NOVEMBER 15

DIGITAL RETAILER

PERSONALISATION DRIVES GROWTH FOR MOVE

MILLENNIALS TIPPED TO INCREASE SPEND ON TECH By Emily Bencic

fter opening its eleventh Australian store in Queensland’s Pacific Fair, Dick Smith’s Move is rapidly growing its footprint, as it officially opened its first Western Australia store on October 8. Personalisation through exclusive products, designer collaborations and an extensive tech accessory offering enable Move to stand out in the competitive retail space, according to general manager, Jeremy Senior (pictured). The store opening at Morley Galleria in Centro Galleria, Perth featured Move’s latest designer collaboration with Samantha Wills. The collaboration marks Will’s first foray into digital accessories and features a range of style and luxury. The range focuses on four materials, marble, wood, metal and leather, available for notebook satchels, phone cases and tablet covers, which embody her signature style.

APPLIANCE RETAILER NOVEMBER 15

A recent survey conducted by MasterCard predicts Australian millennials to spend on average $3615 on luxury goods over the next year, but on smartphones and tablets, rather than designer clothes and handbags. “A quarter of millennials in Asia Pacific plan to spend significant sums on the latest technology such as smartphones and tablets over the next year. This reflects a shift in priorities away from designer clothes and jewellery and towards communications

“Move is pioneering the growth of the fashion and technology market in Australia through a unique offering dedicated to inspiring consumers with the latest and most fashionable technology products. With wearable technology set to be a high priority on gift lists this Christmas, the launch of the Morley store couldn’t have come at better time for shoppers in the area,” Senior said. Move has also recently launched its new online transactional website

technology,” MasterCard Advisors Asia Pacific region head, Eric Schneider said. When choosing where to buy luxury goods from, the majority of millennials still prefer purchasing from local brick and mortar stores (64%), instead of local e-commerce sites (9%). Meanwhile a fifth prefer to buy luxury items in-store when travelling overseas, this is especially true of Chinese millennials, 51% of whom are most likely to buy a luxury item in-store while travelling.

movestore.com.au where for the first time ever, consumers can now purchase Move’s technology products from anywhere around the country. “Strong demand for the latest and greatest tech has driven growth in our retail stores and developed our push into the online space. Our focus is on how we can tailor our products to integrate into the lifestyle of our consumers, which includes our personalised services. WWW.APPLIANCERETAILER.COM.AU

“There has also been increasing demand for on-the-go products, which have seen our fitness and wearable categories, perform exceptionally well. These categories have been stimulated by market leader FitBit and the Apple watch,” Senior added. Move also launched at Sydney International Airport in February of this year, in order to reach a wider demographic, beyond the millennial generation (18-29 year olds). The airport store is exceeding

initial expectations under a new banner Move by Dick Smith, according to company reports. Move will also take a premier location in the Duty Free department of Sydney Airport in December 2015 as part of a new terminal layout. Move has seen strong sales improvement, with comparable sales up by double digits, with the audio, fitness and accessory categories recorded as the best-selling products. Move accessories

enjoyed strong growth as private label penetration represented more than 12.5% of sales. Brand extensions with Move facilitate a ‘good, better, best’ ranging for consumers, which has resonated well with consumers, according to Dick Smith. New packaging, improved sourcing and over 800 additional products will further drive private label growth to over 15% of sales mix within two years, according to company reports.

4K DRIVES SALES GROWTH IN ACTION CAMERA MARKET Demand in the camera market continues to focus on high-quality and innovative products that demonstrate real photo-related added value compared to smartphones, according to GfK findings on the global photo market for the first half of 2015. The worldwide market volume will reach approximately $45.68 billion by year end.

ACTION CAMERAS SHOW STRONG GROWTH The worldwide market volume for action cameras has grown in the first half of the year by approximately 55% and is forecast to remain on track for strong growth in 2016. Consumers are interested in capturing videos of their experiences and activities with the help of small and smart device solut ions. WWW.APPLIANCERETAILER.COM.AU

Feature analysis for the European market show that 4K resolution is a driving force for growth with 36% of action cameras sold in the first six months of the year equipped with this feature. In addition, 4K camcorder sales achieved a 16% share in the traditional camcorder segment.

the largest share with 75%. Sales volume declined by 18%, but sales by 10% due to the average price increase of high-end models equipped with a full-frame sensor. An additional 25% was allotted to mirrorless system cameras, with a 4% increase in sales, but decline of 11% in units sold.

COMPACT CAMERAS CONTINUE TO SUFFER

INTERCHANGEABLE LENSES SELL WELL

Sales of digital cameras and lenses declined by 10% worldwide in the first six months of this year, primarily due to the development of simple compact cameras with smartphone-like functions. Interchangeable lens cameras make up over 68% of total digital camera sales, while single-lens reflex cameras still make up

Individually sold interchangeable lenses are developing better than cameras alone. The success of high-quality cameras in the single-lens reflex and mirrorless segments results in a higher demand for additional equipment with appropriate lenses. Sales remain mostly stable with a decrease of 3% in Europe for the first six months of 2015. APPLIANCE RETAILER NOVEMBER 15

NEW GADGETS 001

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SanDisk Connectâ&#x201E;˘ Wireless Stick Save and access photos, videos and other files from your Wi-Fi-enabled devices with up to 128GB of capacity to effectively double mobile storage. The wireless stick can support a single stream for up to 4.5 hours on a single charge. RRP: From $49.95 Sandisk: 1800 262 504

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GoPro Hero+ Camera The Hero+ makes capturing and sharing content more accessible than ever with its Wi-Fi and Bluetooth capabilities which enables users to connect and benefit from trim and share features. It is integrated into a waterproof housing for durability and versatility. RRP: $299.95 GoPro: 1300 137 021

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Philips Wireless Portable Speaker Delivering 360 degree sound through two pairs of drivers and passive radiators, the speakers are enhanced by proprietary Digital Sound Processing technology. It has a built-in microphone for taking and making calls, and is powered by a 4400mAh, eight-hour rechargeable battery. RRP: $179.95 Philips: 1300 850 633

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Polaroid Snap Camera A 10 megapixel digital instant camera with an integrated printer using ZINKÂŽ Zero Ink Printing Technology. The camera features a Micro SD card slot that holds up to 32GB to save and easily transfer and upload images to a computer, cloud service or social media platform. RRP: $199.95 Polaroid: 1300 728 606

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Bose Solo 15 Series II TV Sound System The sound system includes Bluetooth connectivity for streaming music wirelessly, and an updated remote makes for simple control of the system, TV and other connected sources. It fits under most television screen sizes of up to 50 inches. RRP: $649 Bose: 1800 023 367 16

APPLIANCE RETAILER NOVEMBER 15

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WWW.APPLIANCERETAILER.COM.AU

RETAILER

APPLIANCE

l a i c e p S Feature

BROWNGOODS WHITEGOODS SMALL APPLIANCES COMPUTERS & COMMUNICATIONS

2015

Coffee Feature

✱ coffee feature

How Australia will grow leadership in the global coffee market Sunbeam Torino Coffee Machine • Triple thermoblock technology • Extraction pressure gauge • LCD screen for program and shot clock • Manual brewing control handle • Steam and hot water arms RRP: $1,999 incl. Torino Grinder 1300 881 861

Outlook: Still room for growth The news is out: Australia is considered one of the world’s most advanced markets for coffee consumption. And, despite machine sales plateauing in 2014, there’s plenty of room for growth. Suppliers are ready with new technologies and functionalities and needless to say, this is keeping retailers more than satisfied. Claire Moffat reports. The double-digit volume growth over four consecutive years, largely due to the emergence of the ubiquitous pod coffee machine, saw coffee machines gain penetration level of 44% within households, according to a recent report on the coffee maker category by Euromonitor Australia. However, this boom came to a close in 2014. GFK’s latest data on the $145 million market for Total Hot Beverage

Makers, which showed a fall by -0.2% in units Jan-Aug15 compared to Jan-Aug14, validates Euromonitor’s assessment. Nonetheless, this was offset by an increase of +10% in value Jan-Aug15, compared to the same period last year. Sunbeam Australia head of product marketing Tim Anderson, described the Australian consumer as more discerning in their purchase of coffee machines, seeking quality and experience but overwhelmed by choice. “Consumers are also demanding a better quality coffee experience at home. This is increasing with consumers becoming more educated and only purchasing products that deliver an enhanced quality coffee experience. “The challenge is to stay ahead of consumer demands and extract value from these consumers without reducing pricepoints,” Anderson said.

coffee feature ✱ Sunbeam CM2000 Multi-Capsule Espresso Machine • 19 bar Italian electromagnetic pump • Automatic capsule ejection • Single and long shot illuminated buttons • Removable water tank • Removable drip tray RRP: $299 Sunbeam: 1300 881 861

As a result, Euromonitor expects pod coffee machines to return to volume growth over the forecast period, with a replacement market becoming more important and with a volume CAGR of 7%. Standard coffee machines on the other hand, will experience a marginally slower volume CAGR of 5%.

TRENDS: Machines customised, personalised and tailored

Pods still drive entry level The pod/capsule machines have extended the appeal of coffee machines to lower income households, whereas espresso machines remain as the coffee machine format of choice for more affluent households, according to the Euromonitor report. “With sub-A$100 pod coffee models being sold in Australia’s two largest supermarket chains, Woolworths and Coles, it was difficult to increase the accessibility of coffee machines to Australian consumers any further, with the result that volume sales of pod coffee machines declined by 25% in 2014. Since this is 25% off the 2013 peak of 733,000 pod coffee machines, it still represents volume sales of 549,000 units.” Although standard coffee machines declined in both value and volume, Euromonitor believes that this is likely to only be temporary.

“Standard coffee machines in circulation are likely to reach the end of their lifecycle towards the end of the forecast period, resulting in a replacement market. Whilst consumers are highly likely to replace their coffee machines, it is not guaranteed that they will replace them with a standard model. The convenience offered by pod coffee machines, may lead to existing owners of coffee machines switching to the former. “Some optimistic manufacturers of standard coffee machines believe that consumers who purchased a pod coffee machine during the report review period, will trade up to a standard coffee machine when it is time to replace their machine over the forecast period. Given the convenience of pod coffee machines however, this is far from certain, with the trend being equally likely to go in the other direction,” the report said.

Sunbeam’s Anderson is clear that the market is heading towards manual coffee machines. He said that, as consumers become more educated and seek a better quality coffee experience at home, they are leaving capsule machines and entering the world of manual machines.

Tim Anderson – Sunbeam.

“These consumers are also willing to spend big with solo traditional machines now representing 24% of value this MAT up from 19%. Single serve espresso machines above $1,000 have doubled their value share from 7-14% over the last MAT period. Anderson identified the current growth in the manual machine market

✱ coffee feature Nespresso Oceania, general manager Loïc Réthoré with marketing and communication manager, Nicole Parker and the new KitchenAid range.

as a primary trend in 2015-16, while observing that there is growth potential to expand, as research indicates that many consumers believe they are too difficult to operate and subsequently choose the simple option of an automatic machine. De’Longhi category marketing manager, Helen Finlayson agreed with Anderson that the healthy growth in both the fully automatic and manual pump markets is a positive sign that consumers continue to have a passion for all things coffee. “With so many machine options available, determining the machine that best suits consumer needs is the real challenge. Therefore, having intimate knowledge of each category and the purchase criteria is paramount if retailers want to secure customer satisfaction and brand advocacy,” she said. Finlayson explained that the fully automatic coffee and manual pump machines, such as the ‘Fresh Bean’ segment will continue to experience growth in 2016, as consumers become more sophisticated and discerning. “They are researching their machine choices and bean selections more thoroughly. Whilst they are not looking to replace their weekend café experience, they are looking to replicate café quality coffee at home without compromise.” Nespresso commercial manager, John Ciagla identified personalisation as a strong trend. He said that as the 20

APPLIANCE RETAILER NOVEMBER 15

Why Nespresso and KitchenAid are teaming up Nespresso and KitchenAid have partnered to bring a new coffee machine to market just in time for the valuable Christmas sales period. This is the third local partnership for Nespresso Australia, which already has successful affiliations with DeLonghi and Breville and it will bring several new retail channels for Nespresso to access. Along with distribution through the department stores, the Nespresso by KitchenAid machine has an RRP of $799 and will range through Peters of Kensington (NSW), E&S Trading and Zoes Kitchen (Victoria) and Kitchen Warehouse (WA) as well as Nespresso’s own national

John Ciagla – Nespresso.

boutiques. Nespresso Oceania, general manager Loïc Réthoré explained to Appliance Retailer that like Nespresso’s existing partnerships, the US heritage brand KichenAid shared common values, among which includes a passion for innovation and design. He said KitchenAid is renowned for its design aesthetics, high quality craftsmanship, attention to detail and versatile technology. “By partnering with KitchenAid, it will not only offer an opportunity to further grow the portioned coffee machine market, but will also provide a wider offering to Australian consumers,” Réthoré said.

popularity of coffee machines as a ‘must-have’ home appliance grows, consumers are looking for the ability to customise their appliances and coffee rituals to suit their unique lifestyle. He said that the Nespresso Club meets this desire by offering members free machine repairs, exclusive invites, promotions, personalised offers and Boutique Pick Up Service. “Our members are looking for ways to minimise the impact of their daily coffee habit on the environment and we expect this trend to further grow in 2016. In addition to our WWW.APPLIANCERETAILER.COM.AU

✱ coffee feature

De’Longhi Autentica ETAM29660SB • Doppio+ coffee function • Long coffee – the machine will grind twice, brew twice and pour twice • Latte Crema Instant Frother Device (IFD) System • Touch button control panel RRP: $1,599 De’Longhi1300 126 659

“They [coffee machines] may be designed in different sizes to fit varying cutouts and benchspace with components that can create other beverage types such as soft drinks or flavoured coffees,” – V-Zug Mark Tragear Boutique capsule collection points, we have introduced an additional 180 collection points for used capsules, located at florists nationally, where Club Members can recycle their used capsules,” Ciagla added. Jura Australia Espresso, head of sales George Liakatos, acknowledged that the automatic coffee machine industry had suffered with the introduction of less expensive coffee systems. “We saw a decrease in the average selling price of coffee machines as consumers shifted from the coffee

George Liakatos – Jura Australia Espresso. 22

APPLIANCE RETAILER NOVEMBER 15

experience to commodity,” he said. However, Liakatos added that he has seen a “welcome” return to growth in the premium coffee machine segment. “Our message of using “fresh beans” seems to be penetrating the market. Our focus is consistently emphasised in all our collateral, that is, the importance of using “fresh beans, freshly ground – not capsuled”. Consumers are again realising that a premium coffee machine is an investment in quality and longevity. We believe the market will continue in this direction, particularly with the continued support of our retail partners,” he said. Ilve marketing manager, Daniel Bertuccio pinpointed the challenge of space in today’s modern kitchen, with customer’s often prioritising the core necessities such as an oven, cooktop/ cooker and rangehood. “Quality coffee machines are still considered a luxury item for many households as space is becoming a premium,” he said. Bertucci added that the strong desire for coffee by consumers means that coffee machines have become a

common fixture in the kitchen, with many consumers needing one to start their day. “We have found that there are two types of coffee consumers, the ones who long for a caffeine fix, and then the connoisseurs who are more interested in taste and quality. Ilve and De Dietrich’s strength in this market is their simplicity in catering for the coffee connoisseur, with one machine per brand,” he added. Breville business manager – toast and beverage, Athena Kalos, pointed to the market growth driven by manual espresso machines, following a 38% increase year-on-year to 25% value share. “Manual espresso machine ASPs have increased by 26% in the last 12 months, from $349 to $440.” Kalos said that Breville continued to drive growth in the manual espresso category, and according to GfK, currently has 66% share (value), driven by Breville’s top three manual machines: the Oracle® BES980, the Dual Boiler™ with Smart Grinder™ Pro (BES920) and the Barista Express™ (BES870). WWW.APPLIANCERETAILER.COM.AU

Doppio+ Long State of the Art

TYPE

MORE THAN A DOUBLE ESPRESSO: SPECIAL RECIPE FOR FILTER COFFEE LOVERS

Autentica is a feature-packed range of products.

Special coffee recipes

ENJOY A DOUBLE SIZE ESPRESSO WITH EXTRA AROMA AND EXTRA ENERGY!

Coffee length settings

The latest addition to De’Longhi brings together all the features that make

Coffee aroma / strength settings

De’Longhi bean to cup coffee makers unique and exclusive.

Pre-ground coffee option LatteCrema System Direct milk recipes

ETAM 29.660.SB

ETAM 29.620.SB

ETAM 29.510.SB ETAM 29.510.B

Milk Menu recipes Manual milk frothing device Hot water for tea and infusions Soft touch controls Display

For an authentic coffee experience.

The “LONG” is a function that reproduces the taste and size of the American Filter Coffee through slow

Coffee beans container capacity Water container capacity

g l

Coffee dispenser height (min - max)

and low-pressure brewing, activated with just the simple touch of a button. New exclusive Autentica recipe that allows a touch a button, to get a 1. double espressoawith extra aroma De’Longhi offersyou, coffee lovers twoof extra recipes. Doppio+: slow 15g coffee extraction, delivering double Dimensionsa(wfull-bodied x d x h) espresso shot. Long: automatically grinds and brews guaranteeing with a thick, rich Crema. The result is a coffee with a2.delicate flavour thatthanks can betoenjoyed any time of thetwice, day. brewing Weight and a boost of extra energy the newatDe’Longhi innovative process. a full flavoured long coffee The Autentica is also equipped with a “Latte Crema” Instant Frothing Device, delivering creamier and Input denser powermilk. De’Longhi fully For alloffer those moments when need anallextra automatic coffee machines the luxury ofyou choice, thelift. way from bean-to-cup, in the comfort of your home. Voltage/Frequency Pump pressure

mm mm kg W V˜ Hz bar

* LM Latte Macchiato - CL C

With a view to continuously improving its products, De’Longhi reserves the rig Due to printing limitation, the actual colour pf

UP TO $250*

EFTPOS CASH CARD

Buon Natale! Tis the season to enjoy coffee.

*Conditions apply. Visit promotions@delonghi.com.au for more details. Hero machine featured: Autentica Fully Automatic coffee machine ETAM29660SB.

www.delonghi.com.au

✱ coffee feature

Jura F9 • One touch panel • TFT display with rotary selection • Aroma+ grinder twice as fast • Dual spout with fine foam technology • Piano black design RRP: $2,490 Jura: 1300 285 872

Athena Kalos – Breville.

V-Zug

Nespresso by KitchenAid • Brewing button • Six pre-programmed cup sizes • Available in five colours • Easy-to-read LED indicator RRP: $799 Nespresso: 1800 623 033

Looking to the future, V-Zug Australia director Mark Tragear believes that the biggest challenge for the industry will be producing products that replicate the café experience at home. “Products in this category will need to constantly innovate. For example, they may be designed in different sizes to fit varying cut-outs and bench space, with components that can create other beverage types such as soft drinks or flavoured coffees,” he said.

RANGES Sunbeam Sunbeam has three new products on

APPLIANCE RETAILER NOVEMBER 15

the market for the Christmas sales period which have been built upon its premise that consumers seek quality and experience but are overwhelmed by choice. According to Anderson, Sunbeam’s Torino coffee machine and grinder is a true ‘muscle machine’ reminiscent of traditional Italian machines with its design based on the famous E61 group head. It has a manual brewing control handle and steam and hot water arms. The Torino heats water faster with first thermal triple-block technology, extraction pressure gauge, an LCD screen for program and shot clock and customisable functionality. Sunbeam’s response to consumers who think manual machines are too difficult to operate and opt for the simple option of an automatic machine is the EM5000. This is a milk on board manual espresso with one touch control panel and volumetric control. It has a removable milk reservoir and variable froth control. Finally, the CM2000 capsule coffee machine is an innovative ‘world-first’ multi-capsule solution, according to WWW.APPLIANCERETAILER.COM.AU

‘Latte macchiato please – freshly ground, not capsuled.’

SWISS

MADE

Coffee culture for people with style. Users like Roger Federer love the new F9 for its 14 speciality coffees and its ease of use. The compact F line from JURA now also needs just a touch of a button to prepare specialities with milk such as the trendy flat white. Other highlights that make this automatic coffee machine so perfect include the height-adjustable dual spout, TFT colour display and eight aroma levels. And the F9’s Piano Black front panel brings a touch of elegance to every kitchen. JURA – If you love coffee. www.jura.com

✱ coffee feature

Bravista Latte+ Coffee Capsule Machine • 500mL milk carafe with double chamber technology • Saeco’s patented frothing system • Adjustable drip tray • Large one litre water tank • Carafe cleaning cycle RRP: $499 Philips: 1800 239 438

Sunbeam with an interchangeable capsule cartridge suitable for Nespresso, Lavazza and Expressi capsules. “Now there is no need to be locked into a coffee manufacturer. You can use the coffee you want, when you want, with colour coded inserts to change capsule systems,” Anderson added.

Delonghi

Breville the Oracle® • Automatic grinding, dosing, tamping and milk texturing • Triple heat system with PID temperature control • Auto start function • Dual stainless steel boilers for simultaneous coffee extraction and milk texturing • Exclusive membership to Club Oracle RRP: $2,499 1300 139 798

APPLIANCE RETAILER NOVEMBER 15

Delonghi’s Finlayson said its fully automatic range delivers a good/better/ best option, all delivering café quality coffee in the home. They can prepare a variety of coffee beverages from a rich aromatic espresso shot to a Café Mocha. Consumers can personalise their coffee choice in their time. “All our machines are easy to use and clean with front access,” she said. For those who like to manually froth their milk for a more hands-on barista experience, the ECAM22110SB (RRP$999) and ECAM23210W (RRP$1,099) come with an integrated steam wand and are compact in size, perfect for kitchens with limited bench space. Finlayson said that the ECAM23460S (RRP$1,499), ETAM29660SB Autentica

(RRP$1,599), ECAM45760B Eletta (RRP$1,899) takes the coffee to the

next level with the LatteCrema Instant Frother Device (IFD) System, which delivers creamier and denser milk froth at a higher temperature, with an automatic cleaning system. “Our top line models ETAM36365M PrimaDonna XS (RRP$2,299) and ESAM6900M PrimaDonna Exclusive (RRP$3,499) enable the LatteCrema System to be used or milk prepared manually with an integrated steam wand. They are high end machines with quality stainless steel finishes. The PrimaDonna Exclusive also features a hot chocolate function, with a dedicated carafe to mix the milk and chocolate together,” she added.

Nespresso To meet these demands and appeal to an audience with a different design aesthetic, Nespresso has launched the Lattissima Touch, Pixie Clips, Inissia Limited Edition Colours and Nespresso by KitchenAid machines. Its range of blends and pure, single origin coffees, are crafted from the top 1%-2% of WWW.APPLIANCERETAILER.COM.AU

CHROME

✱ coffee feature

Ilve ILEM45X Built-In Coffee Machine • 3 minute heating time • Coffee-bean grinder • Steam and hot water dispenser • Touch control panel • Cleaning indicator light RRP: $4,999 Ilve: 1300 694 583

the world coffee crop, and specially developed to suit every taste preference.

Jura Jura’s four millionth automatic coffee machine recently left the factory. This impressive track record makes Jura an expert in large-scale production and provides a guarantee of the quality, reliability and durability of all its products. Liakatos said that Jura is the only manufacturer in the sector to focus exclusively on automatic speciality coffee machines. Its biggest selling product is the Jura F9 and Liakatos attributes the success to its market-specificity. “The F9 addressed a large gap in the sophisticated Australian coffee market offering a café-style coffee that can be prepared at one touch, in your own home. Previous products pour milk first, then the coffee, creating a layer effect that is popular overseas,” he explained.

APPLIANCE RETAILER NOVEMBER 15

Breville Breville is bundling its Dual Boiler with its high-end Smart Grinder Pro $1, 699 for a domestic café set up in order to drive Christmas sales. Kalos said that all Breville espresso machines include low pressure preinfusion to encourage a more even extraction of coffee from the coffee puck; PID temperature control to regulate water temperature to within +/-1°C for more consistent results and control over flavour. Stainless steel boilers are built specifically to provide continuous steam on demand for milk texturing, with the ability to extract coffee simultaneously.

Lavazza A Modo Mio by Electrolux • Create lattes, cappuccinos, teas and other beverages • Integrated milk frother • Intuitive touchscreen panel • Two coffee sizes • Three milk recipes RRP: $399 Electrolux: 1300 363 640

V-Zug Tragear explained that V-Zug recently launched its Supremo CCSXSL60 Coffee Centre that “turns anyone in to a master barista, making specialty coffee just the way you like it.” WWW.APPLIANCERETAILER.COM.AU

coffee feature ✱

V-Zug Supremo CCSXSL60 • Fully automatic for one or two cups • Programmable quantities • Adjustable height dispensing head • LED-lit cup tray • Individual grinder settings RRP: $4,499 V-Zug: (03) 9832 7500

“With sub A$100 pod coffee models being sold in Australia’s two largest supermarket chains, it was difficult to increase the accessibility of coffee machines to Australian consumers any further” – Euromonitor

highly priced purchase in this category such as standard freestanding bench top machines. “We would definitely encourage retailers to send customers into our showrooms to receive full demonstrations on these products, so they can obtain a real feel for the product and be confident when making the purchase ultimately at a retail level,” Bertuccio said. He added that Ilve’s ILCM45X built-in espresso maker forms part of the Ilve compact cooking package collection. The range features the latest European styling and cooking functions, with streamlined sophisticated styling, matched with Ilve’s commitment to quality. Ilve will also be releasing a new in-built coffee machine designed to match its new ‘45 series’ products and 76 Pyrolytic oven. The coffee machine ‘ILEM45X’ is touch controlled with various pre-sets and able to be completely personalised.

Miele CVA6800 Built-In Coffee Bean Machine • One touch operation • Miele exclusive CupSensor • EasyClick milk system • Stores up to 10 individual user profiles • Program switch-on and switch-off times RRP: $5, 899 Miele: 1300 464 353

“Consumers are increasingly seeking products that are quiet when in operation. Our Supremo CCSXSL60 has a built-in conical burr grinder, making the machine virtually silent when in use,” he said. The Coffee Centre features a built-in automatic milk frother, which delivers the perfect froth for a cappuccino, latte macchiato, café au lait and hot milk. The Supremo CCSXSL60 has five adjustable coffee strengths from extra-mild to very strong, with hot water also available for a cup of tea.

Ilve As Ilve and De Dietrich coffee machines are usually a purchase made alongside a range of other items for the kitchen, Bertuccio said they can be a WWW.APPLIANCERETAILER.COM.AU

APPLIANCE RETAILER NOVEMBER 15

✱ coffee feature Promotions

FROM THE FLOOR

A tale of two systems E&S Trading’s managing director Rob Sinclair knows his coffee (he does hail from Melbourne) and, with the recent opening of three new stores in the inner suburbs of Hawthorn, Prahran and Abbotsford, he depends on suppliers to get their ranges, pricing and promotions spot on. The company’s 1,700 sqm store at Hawthorn is now one of its biggest showrooms in the eastern suburbs, spanning two floors and showcasing an extensive range of kitchen, bathroom and laundry products. Sinclair is pragmatic about the coffee market, stating that it’s a simple matter of polarisation. “The continued dominance of the Nespresso pod system is very clear for its convenience and the instant gratification of a quality cup of coffee. This versus the enthusiast who prefers to undertake what some would consider lunacy in the search of

making the perfect cup of coffee, via premium manual machines,” he quipped. Back to the pod systems and Sinclair said that they have gained traction as a result of their convenience and the perceived lower cost. “When in fact although the initial cost may be lower, the per cup cost is much more expensive than the full manual systems.” Again, Sinclair said his best sellers by far are the pod systems. “Having said that, whilst the volumes are relatively low, there is an increased amount of interest and traction being gained in the higher end specialist Italian machines, such as the Rocket Giotto. And the last word goes to the consumer, of course. What do they want when they walk into E&S? “Convenience, plus the ability to get a great cup of coffee, consistently,” Sinclair responded.

Sunbeam

Over the next few months Sunbeam will be advertising in inner city precincts to target affluent consumers as well as partnering with Gourmet Traveller online – editorial and Christmas gift guide. It will feature POS tent cards and stickers with specs of machines along with in-store demonstrations and online how-to videos.

Breville Breville will support its high end manual espresso range with a consumer cashback from October 28, 2015 to January 3, 2016. This includes the Oracle® (BES980) $150 cash back and the Dual Boiler™ with Smart Grinder™ Pro (BES920) $100 cash back.

Jura

Jura will support its national retail partners by offering consumers a SingleOrigin Coffee Gift Pack from regions around the world. The $200 Gift Pack, will include freshly roasted Single-Origin Coffee from local Australian specialty roasters. The promotion runs November 1 - December 31. 32

APPLIANCE RETAILER NOVEMBER 15

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RETAILER

APPLIANCE

l a i c e p S Feature

BROWNGOODS WHITEGOODS SMALL APPLIANCES COMPUTERS & COMMUNICATIONS

2015

Refrigeration Feature

✱ Refrigeration Feature

How refrigeration stays steady amidst a shaky global economy OUTLOOK: Give me more than price Major appliance suppliers and retailers are presently holding their own as the total market for refrigeration sales rose 3% in units and 8% in value in the year ending January-August 2015, according to GfK. The market is being driven by bottom mount and French door models which are seeing double digit growth in units and value over the same period. However, suppliers remain challenged by fluctuating exchange rates when it comes to profitability for both supplier and retailer. Kymberly Martin reports. Meanwhile, the closure of refrigerator manufacturing in Australia over recent years means that suppliers are now attempting to work with overseas factories to develop appealing

designs for the local market. According to Mitsubishi national retail sales manager, Garth Hickey. “The models designed for the Australian markets garner enough volume to support design investment.” “Consumers are increasingly looking for products with improved energy efficiency and with this is the challenge for companies to maintain their R&D to produce these products,” he said. Hickey also noted a polarisation at the entry and premium levels of the market. “At the lower end sits the basic product at a price, where every retailer has their own brand. At the top end is the growing French door segment with increasing demand for designer appeal and colour coordinated kitchens.”

Sales tips with the experts… Don’t forget the basics: • How many in the family? • What is their preference and why? • Is efficiency a concern? • What is the budget?

David Gray - TECO He added that the popularity for larger French door models can also be attributed in part to changing household shopping habits and home cooking trends, which showed up in recent company research. The Mitsubishi Electric Australia’s Kitchen Revolution, found that one in three respondents said they have decreased the frequency with which they buy ready-made meals; the average shopping basket comprises 36% fresh fruit and vegetables; and 72% of grocery shoppers have tried new recipes.

Refrigeration Feature ✱

MITSUBISHI 743L MULTI-DRAWER (MR-WX743Y)

TECO 3-DOOR TOP MOUNT (TFF 536 WNMA)

• Inverter technology • 3.5 star energy rating • Two-way flexi glass shelf • Surround cooling multi airflow • 5-year warranty on parts RRP: $4999 Mitsubishi: 1800 811 212

• DC Inverter compressor is whisper quiet at 32dB • Unique soft touch freezer controls on door handle • Large 50L capacity slide-out vegetable drawer • LED lighting RRP: $1599 (white); $1699 (Stainless Steel) Teco: 02 9765 8118

• Temperature regulated cooling drawer • Multi-Air flow for precise, constant temperature • Stainless steel interior • Solid aluminium door racks • Motorised shelf at the press of a button RRP: From $13,499 Sampford IXL: 1300 727 421

TRENDS: Customisation drives integration

combining ActiveSmart™ Technology with a drawer-based design that can be placed anywhere in the kitchen, home or entertainment area. Sharp’s most popular models, the glass and stainless steel double French door together with the large capacity top mount models, fall perfectly into the market growth category. “Thanks to their stylish design and large interior compartment arrangement,” senior product manager, Halim Saliman, said. Panasonic product marketing manager whitegoods, Belinda Toner said the company was also in tune with this trend, explaining that while food freshness and energy savings can be topof-mind when selecting a refrigerator, it is the layout and usability that impacts the whole kitchen. For example, the Econavi models have an extra-large crisper drawer and a design that positions the most

frequently accessed items directly in lineof-sight with the freezer underneath. “Australian consumers are becoming increasingly foodwise and are looking for products that not only reduce wastage, but save energy and are better suited to busy lifestyles. These consumers are seeking products that support the trend towards fresher and healthier eating habits,” she said. According to LG, the view through the refrigerator door suggests the market has evolved beyond the top mount versus bottom mount debate. Once considered as non-traditional styles, the company said French door and side-byside models are now the most desired product comprising more than 40% of the market. New styles and features, such as customisation, are emerging to accommodate changing consumer preferences too.

Whether small or large, the kitchen is the hub of the home. It is where the meals are created - it fuels the bodies, minds and souls of friends and family. It’s no surprise that the kitchen is the room most often remodelled and the appliances purchased are the most researched and coveted. Kitchens are growing in size and some families want more of a commercial grade kitchen with multiple food prep areas, an extra sink station, a large island and most of all more storage. This has seen the advent of more refrigerator drawers and the bottom mount and French door models. The Fisher & Paykel CoolDrawer designed to change from refrigerator to freezer at the touch of a button speaks to this trend. It is built on the concept of distributed refrigeration,

GAGGENAU 365L VARIO COOL (RC 462)

✱ Refrigeration Feature

WESTINGHOUSE FLEXSPACE 520L FRENCH DOOR (WHE5200SA)

MIELE MASTERCOOL FRIDGE-FREEZER (KF 1911 VI)

PANASONIC BOTTOM MOUNT (NR-BY552 554L)

• LED lighting/door alarm • Full width, humidity controlled crisper • 3 SpillSafe glass shelves for containing spillages • Self-close drawer/bottle rack RRP: $2549 Electrolux Home Products: 1300 363 640

• MasterFresh humidity controlled drawers • NoFrost prevents ice forming on food • Dynamic Cooling delivers a constant temperature to all zones • TouchControl panel RRP: $13,499 Miele: 03 9764 7160

• Vitaminsafe uses LED lighting to keep fruit and vegetables fresh • Econavi technology and inverter motor saves power during low usage • Pull out freezer drawer RRP: $2099 Panasonic: 132 600

to soft drinks, wines and cakes, all entirely independent from the rest of the refrigerator. The slim in-door ice maker allows for extra space inside accommodating three full width shelves up to 845mm wide for holding large plates. TECO divisional manager – air conditioning and home appliances, David Gray said that the company was enjoying buoyancy in the whitegoods market. “Future trends, as with most

product categories, will be around efficiency, design and performance.” Gray added that consumers want products that give them peace of mind, are reliable and offer value for money, “and we believe we have ticked those boxes.” Consumers expect more from refrigeration than ever before, with enhanced kitchen designs and overall practicality along with technological advances, according to Liebherr

Conserving energy has also grown in importance with research from Roy Morgan showing energy is now the fourth consideration for consumers when it comes to purchasing a kitchen appliance. When it comes to customisation, LG said that it has this trend covered with a number of features on its Door-inDoor models namely the CustomChill drawer. The temperature in the drawer can be pre-set to suit specific needs from chilling meat, seafood and cheese

Eurolinx says ‘ciao’ to Fhiaba The Italian range of premium Fhiaba refrigerators previewed at Eurolinx will arrive locally in early 2016. They include the integrated ‘S’ series models with RRPs starting from $17,990 and the stainless steel ‘XS’ and ‘X-pro’ models from $19,940 and all are available in three sizes with four different models in each range. Advanced food preservation and wine storage features include independent temperature and humidity systems that give precise, constant temperatures and appropriate humidity levels in all compartments. The versatile TriMode

APPLIANCE RETAILER NOVEMBER 15

function allows for flexible management of the fridge, fresco ,for delicate, fresh foods or freezer bottom drawers creating optimum conditions for the contents. The EvenLift shelves can be adjusted to any height without removing or emptying the contents, using a patented sliding device. Other features include a choice of left/right door openings and Sabbath mode. Eurolinx marketing manager, Daniel Bertuccio said,“It is exciting to be adding another premium brand we see Fhiaba as the perfect complimentary product to our range of premium cooking appliances.”

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✱ Refrigeration Feature

LG DOOR-IN-DOOR (GF-AD701SL)

LIEBHERR SIDE-BY-SIDE (SBSES 7165)

SHARP 581L TOP MOUNT (SJXP580GBK)

• CustomChill drawer – temperature can be pre-set independently of fridge • Door-in-door for quick access • Inverter linear compressor with less noise and vibration RRP: $5499 LG: 1300 542 273

• BioFreshPlus – maintains food freshness and appearance • Automatic ice maker • Glass line storage shelves • Dual zone wine cellar RRP: $10,749 Andi-Co: 1800 685 899

• J-Tech inverter improves energy consumption • Extra cool function • LED control panel • Energy save mode RRP: $2099 Sharp: 1300 135 022

national sales and marketing manager, George Alikakos. “Integrated appliances have become more popular as individuality and style requirements move forward.”

The biggest selling model in Mitsubishi’s premium range is the new MR-WX743Y multi-drawer refrigerator, made in Japan, with a glass door finish. It includes new Versa Drawer technology with supercool and soft freezing modes that can also be utilised for standard freezing as required. Advertising support for the WX includes a television campaign featuring chef and brand ambassador, Fast Ed, YouTube and online display advertising. The Mitsubishi range comprises six top mount models, three, two-door bottom mounts, two, three-door bottom mounts, three multi-drawer French door, two French door and one upright freezer. LG has taken the consumers growing awareness around energy use and recently launched a three-model lineup of top mount refrigerators, each with a 4-star energy rating. These join the LG bottom mount range that also carries a 4-star rating. TECO is releasing two top mount refrigerators in November, a 542L 2-door and 536L 3-door model. Features across both include 3.5 star MEPS rating, DC inverter compressor for

RANGES Sharp recently introduced two 581L capacity top mounts in black and silver glass finish, the first Sharp fridges to feature power-saving J-Tech inverter technology. “The technology offers an improved level of energy consumption with a controlled compressor rotation that adjusts in accordance with the use of the fridge,” Saliman said. Other features include an external LED control panel, extra cool function (0-2oC) for chilling drinks on hot summer days and Sharp’s Plasmacluster technology for removing airborne mould, keeping food fresher for longer. According to Saliman, the trend toward larger capacity refrigerators brings the challenge of reducing running costs. Sharp has eight double French door and six top mount models in its current range and will concentrate on expanding this category in the future. 38

APPLIANCE RETAILER NOVEMBER 15

greater efficiency, quiet 32dB operation, LED lighting, variable temperature control chiller zone and silver Nano antibacterial deodorising filter. These are in addition to what the company said are unique electronic soft touch freezer controls on the door handle and a 5-year manufacturer warranty. Other appliances in the TECO range are a 2-door bar fridge, vertical and chest freezers and frost-free refrigerators from 215L to a 580L side-by-side model. The big news from Westinghouse is all about space with its new FlexSpace refrigerators, which is a major release for the brand, replacing the platform introduced in 2002. Electrolux Home Products category manager food preservation, Grant Stevens, said FlexSpace offers consumers more capacity and flexibility than the previous range. The FlexSpace suite comprises six top mounts, six bottom mounts, three French door models and four compact bottom mounts. The MEPS rating has been improved too with 3.5-stars for top and bottom mounts and 3-stars for the French doors. Key selling features include accessories to customise the WWW.APPLIANCERETAILER.COM.AU

Refrigerators L4 Series

Designed for larger living PRODUCT

Diamond Black Stainless Steel

EW!

Pearl N White L4 Grande

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.

L4 Mini

Eco mode

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

Vegetable Drawer

VitaLED creates an ideal environment for fruit and vegetables to stay fresher and crisper for longer.

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

✱ Refrigeration Feature Your view of the coming season for refrigeration and freezers? The warmer months always herald a spike in refrigeration sales and I expect this year to be strong, particularly if we see the expected long, hot summer weather experts are predicting. That said, freezer sales seem to have been in decline for many years and as a result the change in consumer grocery shopping habits.

What are consumers buying?

FROM THE FLOOR

– David Barke, David Barke Appliances

larger capacity interiors, a lockable dairy compartment, LED lighting, SpillSafe glass shelving, fingerprint resistant stainless steel and electronic controls. The 70cm top mounts have increased in gross capacity from 420L to 460L; 80cm top mounts from 520L to 540L; 70cm bottom mounts from 430L to 460L and 80cm bottom mounts with French door capacity up from 510L to 530L. RRPs start from $1299 up to $2549 for the 70cm+ models. Stevens said FlexSpace will be supported by digital advertising from November 1 and a TV campaign in the New Year. Miele is investing in a premium product with its MasterCool range 40

APPLIANCE RETAILER NOVEMBER 15

Smaller cabinet sizes around the 280L and below. Price is one of the main drivers and brand is less important as size increases more mature customers still look to the trusted brands they have known or used previously such as Westinghouse, Fisher & Paykel and to a lesser extent Kelvinator. The 50’s and below age bracket are a lot more open to LG, Samsung and Hisense and certainly for these customers, energy efficiency is starting to play a part in the decision process as they count up the cost over time of a less efficient model.

Best piece of advice when selling? Get the basics out of the way first with some simple questions. Start by asking about their current refrigerator. In particular which way the door swings (many products are not available in left hand door so don’t leave this until the last question). Check to see if they have space limitations and make sure you are presenting product that will fit or a brand that will allow you to move through the range. There is nothing worse than getting to the decision time after recommending a

comprising three fully integrated models, a fridge-freezer combination, refrigerator and freezer, each with high end features designed to meet all storage requirements. Among these is the MasterFresh zone that allows many types of fruit, vegetables, meat, fish and milk products to remain fresh for considerably longer than in conventional refrigerators. Another is the NoFrost section that allows cool air to circulate over food, preventing the formation of ice. “There is often so much importance given to the quality of food at point-ofpurchase, yet little is given to correct storage requirements,” Miele product manager refrigeration, Trevor Wilson

particular brand then having to cross back to another almost as a second choice just because you didn’t qualify. Start at the best product you believe will meet their needs (highest price) you can always move down the scale but if you lead out early with a low cost brand you will never get them to the top. Find out what they did or didn’t like about the fridge they are replacing. This will alert you to the features you should be honing in on during your presentation and also whether you should avoid a brand due to a bad experience.

What are the best promotions? There is no doubt that the best promotions are the ones that offer instant gratification. Sensible gift with purchase at point of sale preferably, or an easily redeemable item that is complimentary to the product such as gift vouchers to food merchants.

How important is training? Training has declined in quantity and quality from many suppliers which is probably a result of fewer resources as suppliers, like retailers, trim costs in a margin-challenged industry. Certainly more training is important, especially to highlight new technology in these products. Better trained staff with a clear knowledge of product benefits results in sales of higher priced products which ultimately means higher ASP’s and better margin. When a customer starts asking about price early in the presentation it is often a clear indicator that the salesperson does not have enough tools and knowledge.

said. “This often results in the disposal of produce and the money spent along with it.” Following on from increased demand for integrated refrigeration, Liebherr offers 22 models in its current range, from under bench to 60cm, 75cm and 90cm wide units. There are also four combinations in freestanding, side-by-side units. “When it comes to selling product with an above average ASP you need more than just a gimmick or pretty colours,” he said. “Our technology and combination options require a correct flow of education and we run an indepth training program for retailers at our Melbourne head office.” WWW.APPLIANCERETAILER.COM.AU

Refrigeration Feature ✱

Wine cabinets move to the next level W

ine cabinets were once considered to be the luxury appliance in the domestic kitchen, but this is no longer the case. Who are the consumers buying wine cabinets? Not wine experts and serious collectors anymore. Kymberly Martin reports. “With more Australians enjoying wine and appreciating viticulture, and as more brands enter the market at competitive price points, wine cabinets are now readily available for a more diverse range of budgets,” De’Longhi category manager, Helen Finlayson said. “It’s all about the growing wine culture in Australia which means more people are increasingly involved with wine.” And with this increasing enthusiasm for the ‘good drop’ comes the trend for enthusiasts to store it appropriately.

“DéLonghi wine cabinets enable wine enthusiasts to get the most out of their collection with features such as tinted triple glazed doors that reduce the level of condensation and protect against light. This extends the shelf life and adds value to the wine.” The options from De’Longhi include built-in and freestanding models offering from 22 to 155 bottle capacity with LED lighting, black glass or stainless steel finish and ease of accessibility. The Dual Zone model has two chambers with independent temperature settings while the in-built Wall Wine cabinet comes with touch controls, active carbon filter and tempered glass doors. Miele wine conditioners feature innovative technologies such as active charcoal filters, suspended compressors, UV filters and individually controllable temperature zones. “These features are for the discerning consumer seeking wine storage solutions which eliminate detrimental effects to wine quality,” according to product manager for builtin and refrigeration, Trevor Wilson. “Consumers who appreciate good wine will know the importance of storing it correctly.” Miele has two models available, a freestanding stainless unit

LIEBHERR DUAL ZONE WINE CELLAR (WTES 5972) • Thermostat to ensure minimal variation in temperature • Tinted and double glazed doors protects against UV light and prevents changes in temperature RRP: $6758 Andi-Co: 1800 685 899

with 143 bottle capacity and a built-in with storage for 38 bottles. The latest in smart wine serving solutions from Liebherr includes new dual and multizone cellars and an under bench centre. The Multi Zone can be set between 5 and 18 degrees for storing all types of wine in a single cabinet. The Underbench Beverage Centre comprises two matching options; a single zone

GAGGENAU VARIO COOL WINE CABINET (RW 464) • Up to 101 bottle capacity • 2 separate climate zones/2 humidity levels • 10 bottle trays for storing magnum bottles • Storage space for open bottles and decanters RRP: $15,499 Sampford IXL: 1300 727 421

GAGGENAU 365L VARIO COOL (RC 462) • Temperature regulated cooling drawer • Multi-Air flow for precise, constant temperature • Stainless steel interior • Solid aluminium door racks • Motorised shelf at the press of a button RRP: From $13,499 Sampford IXL: 1300 727 421

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APPLIANCE RETAILER NOVEMBER 15

✱ Refrigeration Feature

NEW

NEIL PERRY DUAL ZONE WINE COOLER (NPW46) • 46-bottle capacity • 6 wooden shelves • Double glazed doors/anti-UV brown glass • Built-in or freestanding RRP: $1999 Omega: 02 9415 5000

“It’s all about the growing wine culture in Australia which means more people are increasingly involved with wine” – Helen Finlayson, DeLonghi 46-bottle and dual-zone 34-bottle cellars. All single zone cellars have a temperature range between 5 and 20 degrees for storing larger quantities of wine from heavy reds to champagne for serving or for long term storage. Explaining the importance of wine storage is Liebherr national sales and marketing manager, George Alikakos. “Liebherr wine cellars are designed with accurate thermostats to ensure little, if any variation in temperature. The humidity average is between 50 and 80% depending on ambient humidity with the average of 65% giving the perfect environment for cork and label protection.” He added that even wines bottled under a screw cap still need to breathe and have an undercap seal which requires the correct humidity. Ilve has collaborated with Vintec to 42

APPLIANCE RETAILER NOVEMBER 15

ILVE SINGLE ZONE WINE CELLAR • Stores up to 40 Bordeaux bottles at a single temperature • Stores between 12 and 16 degrees and a • Humidity of approximately 70% • Ensures the finest quality is maintained RRP: $1,699 Ilve: 1300 694 583

DE’LONGHI DUAL ZONE 46-BOTTLE WINE CABINET (DEWC46D) • Independent temperature settings • Easy to operate LCD display • Tinted triple glazed doors reduces condensation levels/protects from light RRP: $1599 De’Longhi: 1800 126 659

create a four-piece range, consisting of a single zone wine cellar, a dual zone wine cellar and a beverage centre to accompany the built-in wine cellar. The four products allow wine and beverages to be stored at an optimum temperature and humidity to ensure their finest quality is maintained. The single zone wine cellar enables the storage of up to 40 Bordeaux bottles at a single temperature, between 12 and 16 degrees and a humidity of approximately 70%. The dual zone wine cellar allows for greater flexibility in the storage of wine with a temperature zone that can be set between 6 and 22 degrees. To complement MIELE FREESTANDING WINE the wine storage CONDITIONER (KWT 6831 SG) options, Ilve has • 3 individually controlled zones with also crafted a sleek separate digital controls beverage centre that • Constant humidity levels up to can house up to 100 70% keep corks moist beer cans or bottles, • Tinted, tempered glass filters out enough to cater the UV rays largest of parties. The RRP: $8499 Miele: 03 9764 7160 beverage centre is ideal for creating space when the kitchen fridge is brimming with food.

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✱ Microwave and Steam Oven Feature

When a microwave isn’t a microwave anymore Gone are the days of the traditional benchtop microwave and built-in oven as suppliers revolutionise and bring together the two categories by combining functions, such as conventional heating, hot air, grill and steam cooking, microwave and induction into a single unit. This revolution was a huge trend at this year’s IFA and has also become a hit for suppliers and appliance retailers on the shop floor. By Emily Bencic OUTLOOK: Connectivity and flexibility all the craze Dacor set the standard for the connected kitchen at IFA with the first wall oven with an integrated Android controller and Wi-Fi connectivity. The Android app allows for remote operation, alerts and includes a pre-programmed guide for preparing dishes. When a dish is ready to serve, the app notifies the cook via an alert and if there are any technical faults, the app sends an alert with an error message, as well as an automated report to the manufacturer for troubleshooting. Earlier in the year at CES, Samsung showcased its Electric Flex Duo oven range with Dual Door™, which allows consumers to cook two dishes simultaneously at two different temperatures. With the Dual Door™, users can choose to open just the top 44

APPLIANCE RETAILER NOVEMBER 15

section or the full oven for cooking flexibility and energy efficiency, and then keep food warm in the warming draw until ready to eat. Sharp US has manufactured and patented a microwave drawer™ oven, which seamlessly fits into any kitchen design with flexible installation options. Open or close the draw using the Easy Open handle or simply touch the AutoTouch control panel. The traditional microwave oven remains as important to the kitchen bench as kettles and toasters, according to a recent Canstar Blue survey, with two in three consumers saying that they could not they live without their microwave oven, while almost three quarters say they use their microwave every day and one in two, more than once a week.

Meanwhile, market research firm, ReportLinker says that the need for energy efficient kitchen appliances and growing demand for smart appliances are factors that will drive the market growth in the microwave oven category.

TRENDS: Microwave category gets steamy After being once considered an ‘add on product’, the steam oven market is gaining traction and becoming a core kitchen inclusion, according to Ilve marketing manager, Daniel Bertuccio. However, for some households, steam ovens are still considered a luxury item as many consumers opt for core necessities such as cooktops and dishwashers, he says. Despite Bertuccio’s observation, Miele product manager for built-in and WWW.APPLIANCERETAILER.COM.AU

Microwave and Steam Oven Feature ✱

SHARP SUPERSTEAM OVEN • SuperSteam Convection for baking, roasting and grilling • Inverter function • Six microwave power levels • 42 pre-programmed auto-cook menus • Energy saving mode RRP $1,499 Sharp: 1300 135 530

PANASONIC CYCLONIC INVERTER MICROWAVE OVEN • Cyclonic Inverter microwave technology • Intelligent Sensor cooking • 18 programmable sensor cook and reheat options • Multi-stage cooking • 1,100 watt power RRP $639 Panasonic: 132 600

SMEG SPEED OVEN • 50 SmartSense Plus cooking programmes • 18 functions – combination microwave, convection and stand alone • 50 litre capacity • Vapour clean • Rapid pre-heat RRP: $2990 Smeg: (02) 8667 4888

Wilson and Efeian, noting that steam cooking has become the preferred method of cooking in many households, offering a number of benefits over traditional cooking methods. “Combination microwave ovens offer flexibility in the kitchen with the capacity to grill, use a fan forced oven and microwave, which can deliver results in less than half the time of traditional methods,” he said. Ilve – Daniel Bertuccio.

V-zug – Mark Tragear.

Flexibility and efficiency drive sales refrigeration, Trevor Wilson says built-in steam ovens are now “firmly established in the market.” “Retailers are embracing the opportunity to up-sell consumers to steam cooking technology. Hence, it is hardly surprising that steam ovens have become one of the fastest growing segments in the cooking category for Miele, both in terms of units and value.” Bosch brand manager Aleks Efeian also pointed to the success of the steam segment in the market, particularly with flexible and healthy cooking solutions. Pure steam (steam only) and combination steam ovens (those that combine both convention heating and steaming) are gaining traction within the market as consumers become educated on the health benefits of steam cooking. Home Appliances general manager of kitchens, Chris MacLeod agreed with WWW.APPLIANCERETAILER.COM.AU

Sharp senior product manager, Halim Saliman says busy lifestyles call for quick options without compromising on quality and suggested that the current infatuation with healthier food choices is reflected through the popularity of cooking shows and cookbooks. “Consumers are becoming more adventurous with their food and

Miele – Trevor Wilson.

trialling different cooking methods so that they can create impressive meals in their own home,” he said. V-Zug sales and marketing director, Mark Tragear also pointed to the prevalence of cooking shows. “Our Combi-Steamers are the perfect solution for those wanting to broaden their recipe base. Recipes from top chefs are pre-programmed so users can simply select one, press the relevant button and be assured that even the most ambitious of recipes will turn out perfectly.” Siemens Home Appliances is seeing an increase in the demand for restaurant quality meals at reduced cooking times, according to marketing communications manager, Roberto Finamore. “Siemens combination steam and microwave ovens enable consumers to use the different functions of two appliances within the one appliance,” he said. APPLIANCE RETAILER NOVEMBER 15

✱ Microwave and Steam Oven Feature

MIELE BUILT-IN DGD 4635 PRESSURE STEAM OVEN • PowerSteam technology • Plumbed connection providing a permanent supply of water • Integrated pull out shelf • Pressure cooking, steam cooking, reheating and defrosting options RRP $7,999 Miele: 1300 464 353

BREVILLE THE QUICK TOUCH™ CRISP

MIDEA 23L MICROWAVE (EM823AXX)

• Crisper pan works in combination with grill and microwave to crisp food • Intuitive SMART Cook and Grill, SMART Reheat and SMART Defrost settings • One touch auto buttons including baked potato, grilled cheese, and roasted veg • ‘My favourite’ and ‘A bit more’ settings RRP $449.95 Breville: 1300 139 798

• 800 watt power • Five power levels • 99 minute cooking timer • Child safety lock • Defrost setting RRP: $189 Midea: 1800 886 010

Panasonic – Nicolas Cauzac.

Finamore also believes there is a continuing rise in demand for built-in appliances as space becomes increasingly expensive. “Space optimisation is a top priority for consumers, as they opt for built-in microwave and steam ovens that are streamlined, compact, can free up bench space and offer multiple means of use.” Meanwhile, Panasonic Australia product manager for microwaves and personal care, Nicolas Cauzac says reliability and ease of use are important factors. “Consumers are looking for featurepacked products that offer convenience and efficiency. While many consumers want effective microwave solutions, some are unaware of the latest technologies available in the microwave market. 46

APPLIANCE RETAILER NOVEMBER 15

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Microwave and Steam Oven Feature ✱

MIDEA 34L GRILL MICROWAVE (AG036AFK)

BOSCH SERIES 8 COMPACT COMBINATION STEAM OVEN

• Digital control • 1000 watts • Five power levels • 95 minute cooking timer • Eight auto cooking menus RRP: $329 Midea: 1800 886 010

• 14 conventional heating functions • Four steam heating functions • TFT colour touch display with graphics • BoschAssist function • SoftMove open and close door RRP $3,899 Bosch: 1300 369 744

RANGES: Siemens

V-ZUG COMBI-STEAM OVEN • • • •

55 litre cooking space volume Class A energy efficiency GourmetSteam BakeOmatic with Climate Control System (CCS) • Fully electronic operation RRP $9,999 V-Zug: (03) 9832 7500

Panasonic Cyclonic wave technology, intelligent sensor cooking and inverter technology make microwaving faster and easier. Panasonic says that as consumers become more health conscious and creative in the kitchen, new methods of cooking, such as steam functions are important.

With varioSpeed technology, Siemens ovens allow users to prepare dishes in up to 50% less time, while coolStart technology, designed for frozen food, condenses the thawing, oven heating and cooking process into one single session. Meanwhile, pulseSteam releases intermittent steam into the oven cavity during the cooking process and fullSteam uses 100% steam to help preserve the flavour, nutrients and colour of food.

Miele Siemens – Roberto Finamore.

Bosch

Sharp The SuperSteam microwave oven boasts four-in-one cooking including microwave (flatbed), steam, convection and SuperSteam convection functions. The SuperSteam technology increases the nutritional profile of food through superheated steam.

Key features of Bosch ovens include Pure Steam, perfect for steaming vegetables and fish and Added Steam, which releases intermittent steam into the oven cavity during the cooking process. The combination steam offers both pure steaming and added steam functionality, either independently or combined.

Breville

Sharp – Halim Saliman. WWW.APPLIANCERETAILER.COM.AU

A winner in the 2015 Good Design Awards, the Quick Touch Crisp can be used by the whole family for crispy pies, dried herbs, roasted vegetables, fish and chips or a grilled cheese sandwich. It heats more evenly, knows the right power level and time to suit the food being cooked, reheated and defrosted, and automatically switches to grill when needed.

The Generation 6000 Steam ovens are ideal for busy households, assisting users in making yoghurt, cooking eggs and disinfecting baby bottles. For added convenience, the steam ovens have a ‘Keep Warm’ function automatically keeps food at serving temperature for 15 minutes.

Smeg The Speed Oven combines circulating microwave power with traditional convection to dramatically reduce cooking times without compromising flavour, texture or succulence. For example, a whole chicken can be cooked to golden perfection in just 30 minutes. It offers a combination of cooking methods – microwave and fan forced, microwave and grill, fan forced and grill – along with stand-alone functions such as static and fan grill, fan forced and microwave. APPLIANCE RETAILER NOVEMBER 15

✱ Microwave and Steam Oven Feature Promotions

Miele is running an extensive national advertising campaign which features Miele ambassador, Shannon Bennett, to showcase the versatility and creativity of Miele steam cooking. This is supported by CRM activities and demonstrations.

From the Floor

Panasonic will run its popular Tupperware promotion to support sales in the lead up to Christmas. When consumers purchase a selected Panasonic inverter microwave they receive Tupperware, valued at over $55.

Breville has worked with YouTube’s most popular cooking channels, Simple Cooking Channel and Nicko’s Kitchen, as well as a selection of influential food bloggers, to promote the versatility and convenience of the Quick Touch Crisp. 48

APPLIANCE RETAILER NOVEMBER 15

Webbers Retravision Rockhampton proprietor Doug Webber (pictured right) believes the microwave oven is not a seasonal product as he sells the appliance “by the dozen” all year round. “Microwaves are one of those products I can order 50 in and they will all be sold within a week,” he said. Webber is expecting the Weber Specialist BBQs to smash through during the Christmas period as the most trusted brand of BBQ in Australia. “We are fortunate enough to be a Weber BBQ specialist and it has been a godsend for our business as an exclusive product. “I think with the change in government, we may see consumers gain confidence with spending again, and I am hoping for a good Christmas.” The microwave category is performing well for Appliances Online and the company expects sales to lift over the Christmas period, according to CEO James Fleet, (pictured above) as ongoing innovation and product development keep the range fresh and

top of mind with consumers. He believes Panasonic’s new Cyclonic Inverter Sensor Microwave (ST785S) will be a favourite this Christmas due to its sleek design and cyclonic wave technology. “Although we expect consumers to be cautious amid concerns about the lower dollar and economic growth, we believe Appliances Online will still experience strong Christmas sales. Australia’s interest in home renovations and cooking make small appliances best gift for Christmas. Growth in online purchases remains strong, and our enhanced small appliances range is driving good growth,” he added.

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One solution for everything. Kenwood MultiOne

Introducing our new, compact kitchen machine. This versatile appliance is a mixer, food processor, blender* and citrus press in one. Prepare healthy, homemade meals quickly and easily with variable speed control, easy fit attachment hub and planetary mixing action. For more information, contact your Kenwood representative on 1800 126 659 or visit www.kenwood-australia.com

In pack inclusions:

Blender*

Food Processor

Citrus Juicer

*2 models available KHH301WH and KHH311WH (includes blender).

Creaming Beater

K-Beater

Dough Hook

Whisk

â&#x153;ą new appliances 1 Samsung Powerbot Robotic Vacuum The Wi-Fi capable robotic vacuum enables users to clean their floor from almost anywhere via their compatible smartphone. Powerful CycloneForce technology ensures powerful performance, while the Visionary MappingTM Plus memorises floorplans for consistent and efficient cleaning. RRP: $749 Samsung: 1300 362 603

2 Kenwood MultiOne A machine that offers the best of both worlds: a mixer and a food processor. It comes with attachments; stainless steel knife blades, rotating disks for slicing and grating, and a citrus press. The 4.3 litre bowl is ideal for family sized cakes. RRP $449 Kenwood: 1800 126 659

3 Panasonic Econavi 8kg front load washer Featuring innovative technologies for more powerful washing and further control over energy saving, including 3D sensor wash, ActiveFoam Technology, which lifts and removes dirt from clothing for a more, as well as a new hightech Electrostatic touch control panel. RRP $1,199 Panasonic: 132 600

4 Map Coffee Bravista Latte + Coffee Machine Map Coffee and Saeco joined forces for the new Bravista range of coffee capsule machines, with one-touch display, Saecoâ&#x20AC;&#x2122;s patented milk frothing system, an adjustable tray and spout, and users can save coffee or milk length preferences. RRP: $499 Map Coffee: 1800 239 438

5 Westinghouse Slow Cooker This 6.5 litre slow cooker is big enough to feed the entire family. The oval shape allows for larger cuts of meat in comparison to traditional round slow cookers. It features three easy cooking settings and cool-touch handles. RRP: $59 Westinghouse: 1300 883 109 50

APPLIANCE RETAILER NOVEMBER 15

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new appliances â&#x153;ą 6 Ilve Induction Cooktop (ILD906G5) Pan detection technology, specific to Ilve, finds the precise cooking zone and after the cooking temperature is activated the cooktop will go into lock mode to prevent accidental change in temperature. It features a stylish slider touch control with direct access to 11 heating levels. RRP: $4,599 Ilve: 1300 694 583

Gaggenau 400 Series Dishwasher A new basket system combined with a host of programmes and options ensures top cleaning and drying results. Equipped with innovative Zeolite technology and a five star water rating, the dishwasher is efficient, quiet and energy-saving. RRP: $4,199 Gaggenau: 1300 727 421

8 Westinghouse Stick Mixer This stick mixer boasts a powerful 1000 watt, 220-240 volt motor, soft touch grip, variable speed control and an accessory storage base. It also includes a potato masher, whisk, whizz, beaker and mini chopper. RRP: $99 Westinghouse: 1300 883 109

Sunbeam Toaster This sleek toaster solves long-standing issues with its extra wide crumb tray base that actually collects crumbs, allowing the main body to sit perfectly in its shape. The automated toasting button electronically lowers and lifts the toast when ready. (see story page 10) RRP: $199 Sunbeam: 1300 881 861

10 LG Microwave with Grill Function The LG i-Wave technology utilizes an interior Echo Reflection design to defrost and reheat foods more evenly. It boasts a 30 litre capacity, dual cooking functions, Easy Cleanâ&#x201E;˘ coating with rounded corners, a grill function and grill rack. RRP $349 LG: 1300 542 273 WWW.APPLIANCERETAILER.COM.AU

APPLIANCE RETAILER NOVEMBER 15

THE GREATEST COMPLEMENT YOU CAN… RECOMMEND SMEG 4-DOOR FRENCH DOOR FQ60XPA • PAIR IT WITH SMEG OVENS, COOKTOPS & COMPACT APPLIANCES VERSATILE FRIDGE-FREEZER-WINE COMPARTMENT • ICE MAKER • BACTERIA SUPPRESSION • HOLIDAY & ECO MODES

SMA15786

smeg.com.au