Get Connected Magazine JUNE 2013

JUNE 2013

www.gcmagazine.co.uk

THE MAGAZINE OF THE ELECTRICAL INDUSTRY

DESIGNER PRODUCTS Good design is a powerful attribute, but it takes innovation and collaboration to create products that stand out from the crowd, with style, performance and relevance to consumers’ needs

A professional performance Give your customers the red carpet treatment!

SEBO professional uprights have been world leaders for many years due to their outstanding German build quality, design excellence and superb performance.

SEBO domestic vacuum cleaners are built to the same high standards: That is why they routinely come top in reliability and customer satisfaction surveys and that is why, when you sell a SEBO, you can sell with confidence

CUSTOM INSTALLATION As CE margins contract and sales channels broaden, a growing number of independent electrical retailers are looking beyond the shop floor and moving into custom installation. George Cole offers some advice from those involved in the sector

PERSONALLY SPEAKING Big Red Sales’ John Reddington has more to say. Part 2 of his frank interview

FROM THE BENCH Is there a way back from today’s crisis in town-centre retailing?

Alan Bennett fears not

BACKCHAT A 2-minute interview with Groupe SEB UK’s Claire Charpenet

SEBO – the vacuum cleaner professionals

www.sebo.co.uk 01494 465533

Simple Control Over Your Entertainment

Access a growing world of entertainment on your LG Smart TV with the intuitive Magic Remote.* Using point, scroll, gesture or voice commands, LG’s unique Magic Remote enables simple and easy TV navigation.

Making your favourite TV series and Movies from LOVEFiLM or Netflix and Catch up TV from BBC iPlayer even more enjoyable.** www.lg.com/uk/smartTV

Smart. Inspired by you *Magic Remote not included with all LG Smart TV’s but can be purchased separately. **Services are subject to availability and may vary across products, platforms and regions. LG Electronics UK works closely with content providers to ensure services are live and up to date across its range of Smart TV devices. Due to platform upgrades some services require modification before launching on 2013 devices.

Contents

Contents 04 06 14 16

(p15 Loewe Speaker 2go)

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

Creative Director: Will Dobson design@willdobson.co.uk

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

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© Copyright 2013 Mud Hut Publishing Ltd. All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior permission of the publisher. Get Connected is published by Mud Hut Publishing Ltd., Greyfriar Cottage, Winchester Road, Chawton, Alton, Hampshire GU34 1SB.

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Editorial Comment The Word

In and around the industry

The Product Gallery Designer Products Feature

The power and persuasion of good product design

Personally Speaking

Some big questions get frank answers from John Reddington, Director of Big Red Sales (part 2)

Custom Installation Feature

Taking the first steps into custom install

George Cole Gets Connected

The future for television

Guest Column

Winning with e-commerce

From the Bench

High street woes

Backchat

Claire Charpenet, Marketing Director for Groupe SEB UK

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Editorial Comment

Comment The electrical retail industry, like the rest of the retail community and the wider economy in the UK, is struggling to adapt to the irresistible tide of change that has already swept away so many “traditional” retail outlets, and threatens to engulf many more who can’t or won’t take the radical steps necessary to satisfy their customers’ demands for new ways to do business with them.

It’s

ironic that the consumer electronics and IT industries have themselves been architects of the changes in consumer buying habits, by so successfully inventing, marketing and selling the PCs, tablets, smartphones and other devices that make it easy, for example, to check products in local stores, go away and search for the best price on the internet, and order online for next day delivery.

Any bricks-and-mortar retailer who, having paid the heavy overhead costs of maintaining a physical presence on the high street or in the shopping mall, then allows their store to become a free showroom facility for their internet trading competitors, is heading for extinction.

It doesn’t take a retail “expert” to recognise the problem, but quite how each retailer should set about solving it is a much more individual and complex matter, depending on location, types of products sold, existing customer base, target customer demographic, staff and management areas of expertise…. The one constant is that the internet is not going away. It will go on capturing more and more trade, and the demand for a “level playing field” in a retail landscape that has always had its mountains and valleys and has never in its entire history been flat, is unrealistic. Retailers have to work with the uneven topography, and gain their competitive edge by adapting and applying their existing skills, acquiring new ones where necessary, and changing the way they work to take advantage of the terrain. It may mean differentiating and going head-tohead with the internet; it may mean embracing and developing the internet, use of apps and social media as effective tools of multi-channel trading; it may even, for some, mean recognising that there isn’t a viable future for a particular retail business in a particular situation. These are highly individual, case-specific choices, and we very much fear that neither a broad-brush celebrity “expert” such as Mary Portas, nor the slow-moving, inexpert blunt instrument of Government intervention, will be of much use in helping any retailer make them.

“Change” is the word. And therein lies a peculiarly British difficulty that is relevant not only to retail but to the health and future of all UK SMEs - the backbone of the UK’s prosperity.

Although this is a nation of great original thinkers,

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GET CONNECTED JUNE 2013

inventors, entrepreneurs, we are, at heart, a very conservative (small-“c”) nation, always more comfortable working within the established, accepted parameters of how business is financed and regulated. We don’t go in much for “breaking the mould” in financial or political institutions.

This has its advantages in terms of perceived stability, continuity and mutual trust when everyone in the system is doing their job properly.

But they’re not. The last five years have shown that bankers can’t run their own businesses properly, and in some cases have been caught – and fined for – indulging in dishonest practices.

They’re borrowing cheap money from us via the Bank of England and not lending it on to SMEs. And senior bankers are still enjoying bonuses every year that represent a decade of earnings for an “ordinary” UK worker. And the Government, which holds major shareholdings in some of those banks on our behalf is too scared to employ “shareholder power” to curb those bonuses, or even to insist banks fulfil their obligation under the cheap money “Funding for Lending” scheme by lending vital growth funding to the SMEs that are the backbone of our economy.

When a man such as John Reddington (see page 23 of this issue), who has for decades been a successful entrepreneur working within our existing financial and political system, says that banks are not really serving the needs of small businesses in the UK today, and moreover that he is disappointed at the way the country is being managed, hadn’t we better listen?

We should emphasise, by the way, that John Reddington is responsible only for the views he has expressed on page 23, and has not specifically endorsed – or even seen – any of the ideas in this editorial comment. We quote him here simply because some of his remarks are relevant to our argument, and because it’s accepted that he generally knows what he’s talking about.

We’re not revolutionaries. But we gently suggest that, the next time you’re asked to record your views via the ballot box, or you’re going capin-hand to your bank for a loan that will, with your energy and expertise, help make the economy stronger and the bank even richer, question the status quo. Who’s in charge here? And who’s the customer? If “change” is in the air, this is a vital part of it.

REGISTER ONLINE @ www.gcmagazine.co.uk for your FREE COPY of Get Connected Magazine

Marlinda Conway Editor in Chief

Terry Heath Editorial & Publishing Director

Will Dobson Creative Director

James McIntosh Consumer Consultant

George Cole Consumer Electronics Consultant

Database independently audited by Firgrove Consultancy. Average net 10 issues: 5,927 Mar 2012 – Feb 2013

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14/05/2013 16:41

The Word : Industry News

Industry News Who is responsible for Britain’s failing high streets?

Is

it the internet? Is it the Government? Is it retailers’ failure to ‘modernise’? Is it the Supermarkets, the landlords, local councils, local communities…? During May, the debate again became the focus of media attention, with a report suggesting that one in five retail stores could close by 2018 as consumers shun the high street in favour of shopping online and the Government-backed ‘Portas Pilots’ scheme accused of failing to revive the majority of its Pilot towns.

The study into retail activity, conducted by the Centre for Retail Research, stated that total store numbers will fall by 22%, from 281,930 today to 220,000 in 2018, and 316,000 jobs could be lost if the current retail trend continues.

Online retail, which now stands at 12.7% of total retail sales, is set to account for 21.5% by 2018, giving Britain the highest online retail share in the world.

According to the Local Data Company (LDC), store vacancy rates across the country increased from 5.4% in December 2008 to 14.1% in March 2013, a rise of 161%. Without intervention the CRR said the vacancy rate could rise further, perhaps above 20%.

Dan Wagner, CEO of Powa Technologies, said that many retailers that are sleepwalking into turmoil. “We have already seen many established names go into administration this year alone, many of which because they haven’t done anything significant to acknowledge the change in how their customers are engaging with brands. Merely paying lip-service to online won’t cut the mustard with retail becoming hugely competitive.

Instead, stores need to revolutionise both their online and high street offerings so that both can feed each other much more seamlessly.”

The CRR report stated that a further 164 major or mediumsized companies will go into administration, involving the loss of 22,600 stores and 140,000 employees. Many of these companies will survive, but at the cost of closing more than half their stores.

The study was followed by reports that 10 of the 12 Government-funded Portas Pilot towns, which were awarded a share of a £1.2 million fund set up as part of the Government’s response to the Mary Portas review of the high street, have seen a fall in the number of occupied retail units, with the loss of 95 outlets in all. The research was commissioned for BBC Radio 4’s You and Yours show and conducted by LDC. Of the 12 Pilot areas – Bedford, Croydon, Dartford, Greater Bedminster, Liskeard, Margate, Market Rasen, Nelson, Newbiggin-by-the-Sea, Stockport, Stockton-on-Tees and Wolverhampton – only Bedminster and Margate added units in the past year.

In total, about 700 units closed, while fewer than 600 opened in their place.

Nelson-based electrical retailer Dave Hartley told the BBC that he’d seen “no benefit whatsoever” from the Portas Pilot scheme.

He said he’d seen a “massive drop in business in the last year, and especially in the last 6 months. Possibly the internet has taken over a little bit more and also the footfall in the town has dramatically had a downturn…”

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GET CONNECTED JUNE 2013

But Hartley’s revelations highlighted some of the deeper problems facing Britain’s high streets. He told the BBC that he wants to move to bigger and better premises in the town as his lease has only 3 months left to run, but he can’t secure a decent empty unit. And this is a town with many vacant shops.

“A large unit I walked past used to be rented by a national chain but it pulled out in the last 18 months or so. But it is still tied into a long lease and paying rent to the landlord,” he said. As the BBC pointed out, it is not in the landlord’s interest to allow the retailer to surrender the lease unless he has another tenant who would be willing to pay the same amount of rent that a big household name would pay. Dave Hartley would like to take the property on, according to the BBC, but at a more realistic price.

Online retail, which now stands at 12.7% of total retail sales, is set to account for 21.5% by 2018, giving Britain the highest online retail share in the world.

The reporter also noted that Hartley is still going to have to pay business rates based on property values set at the top of the market, back in 2007.

Mark Prisk, Minister for Housing and Local Government, said the intention of the ‘Portas Pilots’ scheme was to “harness the energy of local people.” But the energy of local people will not resolve the problems facing landlords; the inherent difficulties facing electrical retailers; the lack of finance for retail startups; the burden of business rates pegged to unrealistic property values and RPI… In the Pilot town of Stockport, the Government’s decision to delay revaluing commercial property by two years is reportedly adding £3 million to retailers’ bills.

Mary Portas told You and Yours: “There is no simple solution to the crisis on our high streets. There are no quick fixes, but 400 towns up and down the country are working on different plans to try and reinvigorate their high street.

“Let’s celebrate their achievements so far and learn and share ideas. Real change will take time.”

For some, Mary, that time may be too late.

The Word : Industry News

Consumer confidence rises 5 points in May Figures released by GfK Nop show that consumer confidence rose by 5 points to -22 in May as the UK climbs out of “the pit of economic pessimism”.

Nick Moon, Managing Director of Social Research at GfK, said: “The current figure of -22 is fully 7 points higher than in any month of 2012, other than the -22 observed in November which we have to assume was a ‘blip’.

“But before we get too carried away, we should note that even after this rise, the Index is still lower than it was for the whole of 2010, and massively worse than it was for an entire decade from 1997 to 2007.”

He added: “We may be climbing out of the pit of economic pessimism, but there’s a long way to go until the public becomes neutral, let alone positive.”

Health of UK retail improves for the first time in two and a half years The KPMG/Ipsos Retail Think Tank (RTT) reported better news at last for UK retailing, although a “significant” increase in the health of the sector is unlikely to arrive any time soon it said.

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Stay in touch

The RTT’s Retail Health Index improved one point to 77 due to a marginal lift in demand, which would have been better still had it not been for the prolonged spell of wintry weather throughout the quarter. But even in non-food a decline in footfall did not prevent a slight gain in overall demand, led by technology goods.

Retailers’ margins remained under pressure, but the RTT acknowledged that reductions in estate sizes and evermore creative ways of taking costs out of their businesses are enabling retailers to keep their costs in check.

Looking forward, however, the RTT believes that the outlook for retail health in quarter two is set to “stutter”, rather than continuing to gain momentum.

Tim Denison, Head of Retail Intelligence at Ipsos Retail Performance, said: “A sense of uncertainty hangs over the health of retailing short term. Quarter one delivered some very welcome results, but whether we see any release of pent-up demand in the next quarter is open to conjecture. There are some positive signs for retailers and consumers, but the unknowns are just as prevalent. This is why the message coming out of the RTT is that, whilst the future looks a bit flat, at least we’re not talking about another decline.”

Th e g lo b a l in n ovat ion s s h ow.

IFA-Contact: Overseas Trade Show Agencies Ltd. Tel. +44 20 7886 3121 jennifer.hall@otsa.net

The Word : Industry News

BDRC bank lending figures show pattern of continuing decline

Household finances deteriorate at slowest pace for three years At 40.4 in May, up sharply from 37.7 in April, the headline Markit Household Finance Index (HFI) signalled that the squeeze on household budgets eased substantially over the month. Although the index was still below the 50.0 no-change value, the latest reading pointed to the slowest deterioration in household finances since May 2010.

May data also indicated an improvement in UK households’ financial outlook for the next 12 months. At 43.1, up from 42.6 in April, the index reached its highest level since September 2012, although the survey suggested a preference to save rather than spend as the appetite for major purchases was unmoved from April’s 4-month low of 34.8, while the savings index reached its highest since the survey began in February 2009 (45.3).

Electrical Safety Council calls for overhaul of recall system The Electrical Safety Council has called for manufacturers to face unlimited fines if they undertake inadequate or slow recalls, following growing concerns over the effectiveness of the recall system and the emergence of a number of serious incidents involving recalled products.

The current penalty for manufacturers who delay or take inadequate action in a recall situation is £5,000, but the Electrical Safety Council, a UK consumer safety charity, has said that it would like to see tougher penalties based on a percentage of profits from the recalled product, stating that the change in legislation would help ensure manufacturers respond quickly and effectively in recall situations.

The ESC is also inviting Trading Standards to set out clear and unambiguous guidelines on exactly what a manufacturer should do if they have produced a product that is subject to a recall. The charity’s research shows that typically only 10-20% of recalled electrical products are returned, exposing millions of people in the UK to the risk of fire or electrocution. Over the 8

GET CONNECTED JUNE 2013

last six years there have been 266 recall notices for electrical items.

In addition to the proposed change to fines, the ESC has outlined proposals for a centralised product registration system, co-ordinated by the charity, which could help manufacturers trace their products to the consumer in a recall situation.

Emma Apter from the Electrical Safety Council said: “The current recall system is not effective enough, and without tougher penalties there is no incentive for manufacturers to act quickly and take the best corrective action possible.

“People are confused by the recall system, and it’s not clear what level of action manufacturers are expected to take. If more people registered their products, and clear guidelines were set for manufacturers to follow, it would be significantly easier to trace recalled items. Our research shows that people would be more likely to register their products with an independent organisation like the ESC and we hope that industry will work with us on ways to achieve a higher return rate for recalled items.”

New data published by research firm BDRC Continental has shown another clear decline in bank lending for the first quarter of the year. The research, carried out as part of the bank-funded BDRC Finance Monitor, showed the number of firms using external finance dipped to a new low in the first three months of 2013 with just 39% of SMEs actively seeking credit.

When the first Monitor was undertaken in 2011 the figure stood at 51%, with successive quarterly studies showing a decline and the number reaching 41% in the last quarter of 2012.

What seems highly likely now is that any recovery this summer is going to come largely from firms spending their own stockpiled cash, but this isn’t sustainable in the long term.”

The BDRC research also suggests it remains the smallest firms, those employing nine or less, which are the least likely to use external finance, just 52%, compared to 73% of larger employers with 50+ staff.

But there was also a significant decrease in all Q1 lending trends for SMEs, regardless of size, compared to the same period last year. In Q1 2012, 40% of firms were using bank finance, while for the same period this year there was just 32% – almost a quarter less. Although the report showed that three-quarters of SMEs were ‘happy’ non-seekers of finance – the highest number in the Monitor’s history and a figure suggesting firms either weren’t looking to invest, or had their finance needs covered.

Forum of Private Business Chief Executive Phil Orford said: “What seems highly likely now is that any recovery this summer is going to come largely from firms spending their own stockpiled cash, but this isn’t sustainable in the long term. While three quarters are happy non-seekers of finance, there will come a point when they do need the help of lenders to grow. That could be the crunch point and be a problem in the making for years to come.”

The Word : Industry News

Sony ‘considers’ partial spinoff of Entertainment business Sony CEO Kazuo Hirai told press at a briefing that the company would assess a proposal from its biggest shareholder, Daniel Loeb’s Third Point LLC, that the group should sell up to a fifth of its music and movies business.

Loeb, whose hedge fund holds around a 6% stake in Sony, believes a partial spinoff of Sony Entertainment would free up cash to help the struggling electronics division and could boost Sony’s stock price by 60%.

But the New York Times reported that a small band of analysts believe “Mr. Loeb’s prescriptions for Sony are shortsighted, merely milking the company’s profitmaking content business for good money to throw after bad.”

Sony, it is suggested, “might be better off just selling insurance (its financial arm accounted for 63% of the firm’s total operating profit last year), or just making movies and music. But not electronics.”

A new report from investment banking firm Jefferies also delivered a harsh assessment of Sony’s electronics

business, according to the NYT: “Electronics is its Achilles’ heel and, in our view, it is worth zero,” wrote Atul Goyal, consumer technology analyst for Jefferies. “In our view, it needs to exit most electronics markets.”

Hirai, who became CEO of Sony in 2012, said the company was on track to bring its electronics business back to profitability this fiscal year.”

Hirai, who became CEO of Sony in 2012, said the company was on track to bring its electronics business back to profitability this fiscal year. He said Sony still expected sales of ¥6 trillion from electronics and an overall 5% operating profit margin, adding that the company hoped its televisions would turn a profit for the first time in a decade.

Goodbye Sanyo?

Sanyo Electric Co may cease to exist under a reorganisation by Panasonic Corporation that includes global jobs cuts. According to the Nikkei, Panasonic will cut 90% of Sanyo’s global workforce of about 2,500 in around three years.

1,000 workers at Sanyo’s headquarters will be reduced to around 100 this fiscal year, leaving a skeleton crew for handling legal matters, managing intellectual property and other tasks. Panasonic may decide to absorb the unit entirely, the daily said.

Panasonic bought rival Sanyo, a leading maker of lithium ion batteries and solar panels, in 2009 but the acquisition failed to deliver the growth Panasonic had expected. In 2011 Panasonic sold Sanyo’s washing machine and refrigerator business to Chinese company Haier and in December last year sold the Sanyo digital and digital movie camera business to a private equity fund.

Latest reports state that Whirlpool is in talks to buy Panasonic’s 30% stake in Hefei Rongshida Sanyo Electric, which is listed in Shanghai.

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The Word : Industry News

Eutelsat to train 700 satellite broadband installers Eutelsat Communications has announced a programme to train 700 UK satellite broadband installers to help provide its Tooway™ service to residents and businesses in areas poorly served or out of reach of traditional terrestrial broadband networks.

The free training programme is aimed at aerial installers who have been previously helping UK households’ transition from analogue to digital television or installing

satellite TV or telecoms services. The training will be delivered at 16 venues across the country over the next 8 months by the Confederation for Aerial Industries (CAI), the UK trade association for Content Delivery. It is not necessary to be a member of the trade association to attend the training.

Installers interested in attending should contact Amanda Ward at the CAI on 01923 803030.

‘University of John Lewis’ plans announced John Lewis has announced plans to further develop its internal vocational qualifications programme through the ‘University of John Lewis’, a range of work-based qualifications designed to offer all staff the chance to gain externally recognised qualifications and progress in their career.

The retailer plans to introduce a pilot Level 6 vocational qualification, equivalent to an Honours degree, by the end of

this year, aimed at Partners in senior management roles. This is in addition to an existing qualification programme which allows Partners to progress from entrylevel qualifications up to Level 5.

John Lewis said the introduction of the University builds on its ambition to professionalise the retail sector and provide its workforce with the skills they need to progress and stay competitive in the ever-changing retail environment.

In its role as Official Home Appliance Partner of The FA Cup, Beko has launched a new competition offering 100 children the chance to win a football experience at St. George’s Park, The FA’s new National Football Centre. The winners will receive a behind-the-scenes tour and advice from special guest speakers and have the chance to learn new skills from Beko ambassador Jamie Redknapp.

Leisure is giving Euronics retailers another reason to stock its cookers, with an exclusive addedvalue promotion.

Shoppers who buy a Leisure Range 90 or 100 through selected CIH dealers will receive a selection of Delia Smith’s Bakeware and a copy of her Cakes cookbook, 10

GET CONNECTED JUNE 2013

together worth over £100. Participating retailers will receive sales support via impactful POS and consumers will be targeted via digital advertising on relevant homes and lifestyle websites, directing them to the retail partners running the promotion.

AMDEA has produced a guide on its Time to Change website explaining the new energy labels that became mandatory on tumble dryers from 20th May 2013.

John Lewis has signed an agreement to deliver a new department store in Oxford. The store will extend over three floors, totalling 100,000 sq ft of selling space, and will create 500 new jobs.

Liebherr has won the internationally renowned ‘Good Design’ award for the first time in the USA with its new ECBN 5066 integrated fridge freezer, which is currently launching into the UK market.

Smeg has announced its sponsorship of the summer season British Driving Society (BDS) Annual Show, which will take place in Windsor Great Park on Sunday 23 June 2013. Smeg is sponsoring the Two Wheel Light Trade Class and will have a strong brand presence at the event.

Samsung announces world’s first 5G mmwave mobile technology Samsung Electronics says it has successfully developed the world’s first adaptive array transceiver technology operating in the millimetre-wave Ka bands for cellular communications.

The new technology sits at the core of the 5G mobile communications system and will provide data transmission up to several hundred times faster than current 4G networks.

Samsung said it plans to accelerate the R&D of 5G mobile communications technologies, including adaptive array transceiver at the millimetre-wave bands, to commercialise the technologies by 2020.

Former Magimix MD Neal Jones has joined the De’Longhi Group as UK Managing Director, responsible for the Kenwood and De’Longhi brands.

Sky’s Bigger Picture initiative received the award for ‘Communicating Sustainability’ at the Guardian Sustainable Business Awards.

Gorenje has received The Reader’s Digest Trusted Brand award in the category of ‘home appliances’ in Slovenia for the seventh year in a row.

Kim Lowe will become head of branch at John Lewis’ new Birmingham regional flagship department store, which is due to open in 2014.

The Word : Industry News

COMPANY FINANCIALS Dixons Retail

announced trading figures for the fourth quarter and full year to 30 April 2013, stating that it is in the best position it has been in for many years. Multichannel businesses (UK & Ireland, Northern and Southern Europe) delivered like-for-like sales up 7%. Strong cash generation enabled the firm to achieve a year-end net cash position for the first time in a number of years. In Q4, multi-channel businesses delivered a like-for-like sales rise of 11%. The UK & Ireland traded well, benefitting from the demise of competitors, with like-for-like sales up 13%. Northern Europe also saw good growth, up 14%, while southern Europe posted a 5% decline. Group gross margins fell 0.7% in the full year. Full-year underlying profit before tax is expected to be at the top end of market expectations, at £75–£85 million.

Toshiba Corporation

posted consolidated net income of ¥77.5 billion for the year ended 31 March, up ¥7.4 billion on the prior year. Sales declined by ¥300 billion due to divestiture of the LCD business and lower sales in the Digital Products and Electronic Devices segments. Consolidated operating income fell ¥8.4 billion to ¥194.3 billion. Sales in the company’s Digital Products division fell 14% to ¥1,432.7 billion, while Home Appliances, at ¥591.5 billion, gained 3%. Consolidated operating profit rose 2.8% and 0.3% respectively.

Sony

Asset sales and a weakening Yen contributed to reporting an annual profit for the first time in five years. Net profit was ¥43 billion for the year ended 31 March, compared with a loss of ¥457 billion in the prior year. Total sales rose 4.7% to ¥6,800.9 billion, with the biggest increase coming from the Mobile Products & Communications division – up 102% on the previous year.

Sales in Home Cinema & Sound fell 22.5%, Game declined 12.2% and Imaging Products & Solutions fell 4.1%.

Indesit Company

reported revenues of €598 million for the first quarter of 2013, down 3.8% on the same period last year. Operating profit fell 33.2%, from €20.9 million in Q1 2012 to €13.9 million. Net profits dropped 62.2%, from €10.7 million to €4.1 million. The company said that demand in greater Europe declined by 2.6%. Indesit also reported that it would enter the Small Appliances market in 2013.

Panasonic posted consolidated group sales for the year ended 31 March down 7% to ¥7,303 billion compared with the prior year. Operating profit increased by 268% to ¥160.9 billion. Net losses amounted to ¥754.3 billion, against ¥772.2 billion last year. In its outlook for FY2014, the company said it expected group sales of ¥7,200 billion and a net profit of ¥50 billion.

Sharp Corporation posted a net loss of

¥545.3 billion for the year ended 31 March 2013, up from a loss of ¥376 billion last year, on sales of ¥2,478.5 billion.

An operating loss of ¥146.2 billion was recorded. Sharp is forecasting a return to profit in the coming financial year. Consolidated results for the second half of FY ended March 2013 showed that net sales rose 20.4% to ¥1,374.4 billion and operating profit returned to a positive ¥22.6 billion – a ¥93.7 billion improvement over the loss of ¥71.1 billion last year.

BSkyB recorded revenues up 6% to £5,381 million

and operating profit up 9% to £994 million in the 3 months to the end of March. Earnings per share increased 16% for the first nine months of the financial year. The service added 715,000 more subscription products, taking the total past 30 million for the first time. Sky said it will create 550 new jobs to meet demand for its products and to serve its growing customer base.

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The Word : Industry News

LG President visits Stellisons LG Electronics unveiled its largest Home Appliance Shop-in-Shop in Stellisons’ new flagship store in Ipswich during May. The outlet is a fully refurbished car showroom spanning 3400m² on two levels, which opened to the public on 24th May. LG’s Shop-in-Shop is almost 50m² and showcases a range of almost 30 of the brand’s laundry, dishwashing and refrigeration appliances.

LG Electronics UK President Mr. Brian Na visited the superstore to meet and congratulate owner Steve Scogings.

“As a leading independent retailer in the UK, supporting Stellisons with an LG Shop-in-Shop within this flagship store is of strategic importance to LG’s growth plan within the key independent channel,” said Mr. Na. “Having today seen our Shop-in-Shop, I am thrilled that we

are able to showcase a significant range of LG appliances and look forward to working with Mr. Steve Scogings across his entire store network for many years to come.”

“We are delighted to have LG involved with our new addition to the Stellisons store portfolio,” commented Steve Scogings. “We are committed to delivering service, from offering the very best brands and products to excellent customer

Kenwood re-launches Disaster Chef competition Kenwood has launched its second UK-wide competition to find the country’s most hopeless cooks, following the competition’s initial success in 2012.

‘From Disaster Chef to Kenwood Chef’ aims to transform participants’ culinary skills before crowning the most improved cook the Kenwood Chef 2013.

The winner will receive prizes worth £4,000.

Discount Domestics wins Hoover Aristocrat competition Hoover Candy has presented independent retailer Discount Domestics with a Hoover and Euronics branded Transit Connect van, after the Chester- and Wrexham-based business won a competition launched at last year’s Euronics trade show.

First and second runners-up in the Aristocrat sales competition were Trevor Dalzell from Dalzell’s of Markethill, Northern Ireland and David Coyles from R L Brooks Ltd, Whitehaven in Cumbria, who received £1500 and £750 of holiday vouchers.

Pictured (left to right): Paul Hughes, Managing Director of Wrexham Discount Domestics; Mark Hopkins, area sales manager for Hoover; Jim Hughes, Proprietor of Wrexham Discount Domestics.

George Bartlett appeal – thank you

Taxing job for Osborne Chancellor George Osborne took a break from the British-hosted G7 summit in May to visit the Stoves sponsored cookery school Denman College, where he helped the Women’s Institute prepare afternoon tea for the finance ministers from some of the world’s leading economies.

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An appeal started in memory of George Bartlett, Director of Bartletts Hi-Fi in North London, who died last year, has raised £8,500 towards the purchase of an Echo Machine for the Princess Alexandra Hospital in Harlow.

After receiving a personal letter of thanks from the hospital, David Jefferys, a family friend, has asked GC to pass on “grateful thanks” to all those who helped raise the money, which has been donated to the Intensive Treatment Unit’s appeal for £30,000.

The appeal is still open at: www.justgiving.com/ George-Bartlett

service via our experienced sales team. As such, LG is a welcome brand that both myself and my team are 100% behind.”

Pictured (left to right): Richard Pyo, LG UK Product Director; Mr. Brian Na, LG UK President; Steve Scogings, store owner; Andy Mackay, LG UK Commercial Director.

Hughes Electrical continues expansion Hughes Electrical is continuing its planned expansion programme with the opening of new stores in Spalding and North Walsham.

The Spalding move follows the acquisition of the stock, rental, repair and trade side of independent retailer Paul Taylor’s business, which had operated in the town since 1965. In North Walsham, Hughes has acquired the business and premises of Plummer Bros, which has been trading in the town since 1960, and is to undertake a major expansion of the store. When completed, Hughes will close its existing store in the Market Place and move its operation to the revamped outlet.

Managing director Robert Hughes said: “The new store will have 1700 sq ft of retail space, four times that of our existing store, and will allow us to have a much greater range of products on display, particularly IT and home entertainment which will complement the already strong range of kitchen appliances offered by Plummer Bros. The extra space means we will have a warehouse dedicated to the increasingly popular ‘click & collect’ service available via our website.”

Training

LINEAR PROGRESSION A compelling story for retailers

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ommitted to performance enhancing innovations that consumers really want and retailers find easy to sell, LG’s 2013 American style fridge freezer range couples the brand’s industryleading Linear Compressor technology with outstanding design. LG’s Linear Compressor has proven itself as an advance in refrigeration technology that has set new standards of reliability, performance and energy efficiency.

Together with a selection of stylish designs to suit a range of consumer tastes, LG’s 2013 refrigeration line up offers both innovative consumer benefits with statement designs.

LG’s Linear Compressor

Best in class energy efficiency

The full story

The Compressor is a vital component in any refrigerator.

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

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

LG’s technology delivers class-leading energy ratings: up to A++ on Side-by-Side Refrigerators and up to A+++ on Freezer Bottom Fridge/Freezers.

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

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

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

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

For the full story, visit LG’s website at: www.lg.com/uk/linear JUNE 2013 GET CONNECTED

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The Product Gallery

The

Gallery

Indesit Innex washing machine

Beko CFF6873GX ‘multizone’ 3-door fridge freezer

Indesit has launched the first real ‘one touch’ washing machine that goes straight from zero to the heart of the wash with the single press of a button.

The Innex models (6 in all) come in 2 colours (white and silver) with two appliances exclusively available to independents. Using patented programming technology, the unique ‘Push and Wash’ button turns the machine on and automatically selects a 50 minute wash programme that’s designed to tackle a normal 4kg daily load of mixed fabrics (cottons and synthetics), washing at 30 degrees with a 1200 rpm spin. Model ref: XWA 81682X features:

Beko has launched a 3-door fridge freezer which extends its flexible ‘multizone’ technology into the 60cm category.

Positioned in the central compartment, the ‘multizone’ can be used as a fridge, freezer, chiller or wine cooler, changing from one to the other at the touch of a button. The CFF6873GX is finished in brushed steel.

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1kg to 8kg load 1600rpm spin A++ energy rating

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08000 921 922 www.indesit.co.uk

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Storage capacity 270 litres Frost free operation ‘Blue light’ technology keeps fruit and vegetables fresher for longer Stable and even temperature with the airflow cooling system Touch-control electronic display LED lighting inside fridge

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0845 600 4911 www.beko.co.uk

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Premium LED display 20-minute Express Wash 9hr delay timer

Fisher & Paykel 77-litre oven Fisher & Paykel says its designers have deconstructed the standard-size oven and reinvented it from the inside out to produce this built-in appliance that has up to 30% more capacity internally than the majority of 60cm ovens in the market. j

Active venting system and up to 11 functions optimise cooking performance, condensation management and energy consumption

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Finished in black reflective glass and stainless steel

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Safety features include cool-touch oven doors and full extension shelves

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Pyrolytic cleaning

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‘Red Dot’ Award winner

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0845 0662200 www.fisherpaykel.co.uk

Miele introduces Fashion Master ironing system The Miele Fashion Master steam ironing system features an ActiveCare steam ironing board with XL ironing surface and comfort zone. A twospeed fan is integrated into the board for steam extraction and inflation.

Extraction ensures that steam thoroughly penetrates textiles, prevents condensation on the ironing table and stops items from slipping. Inflation creates an air cushion between items and the board, which helps stop seams and hems leaving an impression on fabrics. RSP £1,500. j j j j j j

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Automatic start and stop fan 4-bar steam pressure / Automatic rinse and de-scaling functions SoftCare iron with honeycomb soleplate Steamer attachment available, priced at £150, for smoothing hanging garments 1-2 Lift system for easy setup / Inbuilt wheels for manoeuvrability Range of working heights between 82cm and 102cm

GET CONNECTED JUNE 2013

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0845 365 6600 www.miele.co.uk

The Product Gallery

Loewe Speaker 2go The new Loewe Speaker 2go is a Bluetooth, NFC-equipped device, which is compact, lightweight and packs a powerful musical punch. It is roomy enough to accommodate two full-range speakers, a woofer and a specially folded bass reflex tube and offers a total 40 watts of music power. A brace of built-in lithium polymer batteries provides up to eight hours of non-stop listening.

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Advanced apt-X Bluetooth streaming Hands-free speakerphone facility with automatic echo cancellation USB port for convenient charging Elegant aluminium casing Choice of black or silver finishes SRP £269

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0207 368 1100 www.loewe.tv

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Arcam AVR750 AV receiver The Arcam AVR750 is the highest performing AV receiver the company has ever produced, offering a level of sound quality that is said to be far above competing receivers. The AVR750’s natural habitat is within high performance cinema installations and both the video and audio stages are designed to embrace current and upcoming technologies. 4K Ultra HD and 3D video capability are built in, while both standard and high definition sources can be scaled to any resolution. An internal tuner provides fully integrated FM / DAB / DAB+ radio, while the USB port supports memory devices as well as digital audio from iPod®/iPhone®/iPad®.

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7 HDMI inputs, 2 HDMI outputs, ARC compatible Auto setup with room correction Class G power amplification On board PSU for rSeries accessories Ethernet, RS232 and IR control Free iOS control app

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www.arcam.co.uk

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Neff expands FlexInduction range Neff has enhanced its induction cooking range to accommodate larger pot and pan sizes, with elongated induction coils providing more flexibility for users. The Neff FlexInduction zone houses four induction coils which work either independently or together depending on the size of the pan detected (minimum 10cm diameter base). j j j

Smeg Victoria range cooker now available in four new colours The award-winning 110cm Victoria dual fuel traditional range cooker from Smeg is to be made available in four new colours to complement the brand’s iconic ‘50s retrostyle appliance ranges. Smeg has added Red Wine, Silver, Pastel Blue and Pink to the existing Gloss Black and Gloss Cream finishes.

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Main oven, auxiliary oven, grill compartment and storage compartment ‘Press and release’ door-opening technology Flexible hob with high-power wok burner and 4 variable power burners Teppanyaki zone above two additional burners Choice of cooking functions includes Smeg’s Circulaire Black up-stand branded with retro Smeg logo

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0844 557 0070 www.smeguk.com

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Variety of control options Precise Point & Twist bevelled dial magnetically attaches to hob Selection of power settings Four new FlexInduction accessories: Teppan yaki (Z9417X2), oval roaster (Z94101X1), steam rack (Z9415X1), griddle pan (Z9416X2)

0844 892 8989 www.neff.co.uk

SonArray all-weather speaker system Packaged in a single carton and priced for wide appeal, the SonArray all-weather speaker system offers easy installation and excellent sound. The SonArray SR1 speakers, which incorporate 3.5” (89mm) anodised aluminium cones, are just 4” in diameter and discreet enough to be located under plants or foliage, so the system won’t compromise garden design.

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8 satellites / 8” dual voice-coil underground subwoofer Capable of detailed, evenly distributed audio in outdoor spaces up to 185m2 8-ohm load for any standard amplifier Installs in simple daisy-chain configuration with the subwoofer connected to both channels Typical retail price £2500

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01420 540054 www.habitech.co.uk

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JUNE 2013 GET CONNECTED

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Designer Products

THE

FABRIC OF

DESIGN

Good product design is both a science and an art form. It can create beauty and splendour, garner admiration and glory, it can be soothing or thought-provoking, inspiring, disarming. It can be bold, beneficial, precious, persuasive…. but it is, essentially, the harmonious balance between form and function. GC reports

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ust as some consumers would invest in art, antiques or valuable collectables; some, too, choose to invest in designer brands. For many, the designer brand provides a form of self-identity and social status, reflecting the outer persona of the young upwardly mobile professional, the well-to-do country gent, the wouldbe yummy mummy…. defining one as part of an ‘elite’ set. Yet, for others, the investment provides assurance of quality and longevity and, dependent upon the designer and the price, uniqueness.

Many companies are not shy of aligning themselves or their products with designer and ‘up-market’ brands.

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How often have you heard products or services described as the “Rolls Royce” or “Mercedes” of a particular genre or field?

Design culture and customs are used to promote discernment, with trends such as those seen at international motor shows and on the catwalks of the world’s fashion cities closely followed and emulated, as such industries are considered to be powerhouses of design.

A brief look at GC magazine’s Products pages since the New Year shows one way in which brands bring the designer world into their own collections. Ruark Audio, for example, the British firm that builds iconic radios and compact music systems,

produced its R1 MkII portable radio in a fresh, limited edition Pastel Blue finish for spring and summer 2013. The soft baby blue hue has been a feature on this year’s catwalks, by designers such as Erdem, Mulberry, Fendi, Prada and Valentino. And in January this year, Whirlpool introduced its new MAX Collection microwaves, offering a choice of Vivacious Green and Zesty Orange, which reflect the Pantone colour fashion report for spring 2013, in which designers addressed the consumer desire for self-expression, balance and the need to re-energise, building upon these needs with a palette of dynamic bright and novel neutral shades.

Designer Products

already exists and steps it up a notch.

No. The designer of today needs to be a pacesetter, a real innovator, concerned with ecosystems at every level, lest we live in a stagnant environment.

It is said that necessity is the mother of invention, but true innovation (and the means to finance it) is the umbilical cord of the industrial world that we inhabit today.

“Zanussi designs for people who want a flexible and low maintenance home with appliances that are effortless and simple to use, easy to maintain, functional and reliable.”

COLLABORATION

Roberto Barbieri, Senior Industrial Design Manager, Zanussi design team, Porcia, Italy

Substantiating the importance of collaboration, Thomas Johansson, Electrolux Design Director, says that Electrolux now has the structure for what it calls the “innovation triangle”.

This enables R&D, Marketing and Design functions to work in synergy during the entire creation process and with an even clearer focus on consumers.

“Key to Electrolux’s strategy is the ongoing development of innovative and thoughtfully designed solutions based on end-user insights. Now Electrolux will be able to take more relevant and innovative solutions to the market at a faster pace,” he comments.

Johansson acknowledges that household appliances have come a long way in recent years, and amongst the many developments probably the most game-changing are those driven by the increased interest in sustainability.

“Sustainable design focuses on creating products with the least possible negative impact on the environment, featuring eco-sound materials, energy efficiency and easy recycling. The future of sustainable design is the culmination of what consumers see on the surface of a product and how the product enables them to make a change for the better.”

FORM AND FUNCTION

But design can’t be left to designers alone. Yes, designers are charged with innovating, but real innovation can only come about through communication with a diverse reach of collaborators, including end users – to examine their lifestyles, behaviour patterns and preferences – and the persons who will become custodians of the product from its entry into the marketplace to its end-of-life cycle. The perception of the designer as an eccentric who lives in his own private, meditative space, relying on his own inspiration and thought processes, harks back to an earlier century; as does the notion that the designer simply takes what

Class act: part of the new 2013 range from refrigeration specialist Liebherr

In addition to sustainability, Johansson believes that changing lifestyles are also a driving factor. More people live in cities and in smaller spaces; there are more single person households; people travel and get inspiration from all over the world, and many also have less time on their hands. Products therefore need to be functional and easy to use, and he says that this is one of the drivers in developing today’s smart and connectable appliances.

Electrolux brand AEG also supports the theory that good design doesn’t just make things easy on the eye, but easier for consumers to use. Susan Morris, Trade Marketing Manager for Floorcare and Small Appliances, points out that a hundred years ago AEG was the first electrical company to hire an industrial designer – Peter Behrens, the father of the Bauhaus design movement and the world’s first recognised industrial designer. “Good design is critical,” she says, adding that AEG focuses on

consumer innovation rather than design innovation. “Form must follow function.

For example, our consumer insight showed that the most important criteria for selecting a cordless vacuum cleaner were strong suction power, high cleaning performance with long run times and quick charging times. The AEG UltraPower was launched with these in mind.”

Esbjörn Svantesson, Anna-Karin Gray and Elizabeth Piper Mäkitalo are the designers behind the AEG Ultrapower.

Morris says their work reflects the “truly innovative, consumer-driven product development of AEG.”

SPLENDOUR

Italian brand Smeg, which declares “an unshakable desire to stand out from the crowd”, asserts that what really sets it apart is a flair for product design and technical performance as well as a real eye for detail. All Smeg appliances are designed by world-renowned architects and product designers including Guido Canali, Marc Newson and Renzo Piano, the architect of the Shard, London’s newest landmark and Europe’s tallest building.

Smeg’s Piano range comprises a selection of hobs and built-in ovens inspired by long-lasting tradition and described as “solid, practical products which make the kitchen a warm and welcoming place to be.” Traditional concepts blended with contemporary style. The role of steel and glass is crucial to the overall coherence and brightness of the appliances’ design and the way they reflect light enhances the high-quality polished stainless steel finish, very much as in Piano’s approach to the design of the Shard’s sparkling glass structure.

ADMIRATION

Joan Fraser, Product Development and Training Manager at Smeg, believes that the first draw for consumers purchasing domestic appliances is strong visual appeal, and those in the market for a premium brand tend to be much more likely to spend extra money on products JUNE 2013 GET CONNECTED

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Designer Products

Less is more: chic minimalism from De Dietrich

that will make a powerful style statement in their kitchen. “They are probably more likely to choose appliances for their ‘show off’ potential than for their performance and specification,” she adds.

Gorenje, whose portfolio includes collections by French designer Ora Ïto and industrial designer, interior architect and lover of pink, Karim Rashid, is of the opinion that today’s consumers will not settle for second best and are looking for products that meet their needs in every way. “Strong design is key,” says Marketing Manager Lauren Abbott. “For this reason, products which feature exquisite design of a very high quality

are becoming available further down the market, making designer appliances far more accessible to consumers at different price points.”

BOLD

Commenting on Gorenje’s product designs of the future, Abbott reveals that the company is particularly interested in developing its range of coloured appliances, following the success of its Retro refrigeration range, and this year retailers can expect to see the brand taking a bold step with the introduction of a collection of red products including a washing machine, tumble dryer and

AEG PROCOMBI STEAM OVEN The XXL capacity AEG ProCombi steam oven has nineteen cooking functions and three steam cooking modes for perfectly cooked food, whether roasting, baking or steaming.

The water refill panel is accessed from the front instead of inside, making it easy to refill even when cooking is under way, and the interactive control panel provides constant feedback to enable maximum control of the cooking process and to achieve the perfect result.

Steam ovens are becoming a must-have for people who are passionate about cooking because of the way they enhance flavours, moisture and colour while controlling surface textures.

AEG BS9314001M ProCombi multifunction steam oven www.aeg.co.uk Trade Sales Number: 08445 610561 18

GET CONNECTED JUNE 2013

fridge freezer. Gorenje plans to expand the collection over the coming years and says it is likely that new designer collaborations will also be introduced in the future.

Jon Brennan, Commercial Director for built-in at Stoves, New World and Belling opines that manufacturers have been slow to apply colour creatively to built-in appliances, but are now doing so very effectively. “Colour is a big thing this year and is being applied in different ways,” he comments. “We believe the designer look should be available to all, so we chose our mid-market Belling brand to launch our first designer collection in collaboration with Sebastian Conran. The collection offers great design by a household name and bags of style at a price point that people can afford.” The Belling by Sebastian Conran range comes in Duck Egg Blue, Pastel Green, Icy Brook White, Anthracite and Aluminium.

“Colour and new-look finishes are starting to become big business,” asserts Baumatic Marketing Manager Rita Balestrazzi. “Pastel hues as well as red, ivory and black are all becoming popular for mid- as well as high-end appliances.

Consumers can now choose to incorporate such colours as part of a retro, country or contemporary kitchen design, able to buy into a complete range of matching or complementary appliances.

“Rustic design, which has until recently only been found at the premium end of the range cooker market, has now become available for mid range cooking products.

Coming in colours such as pink, ivory and black, such ovens are offering distinctive, period-inspired features including analogue thermometer clocks that can count down cooking times.

“Contemporary-style cooking collections are also being introduced at the mid end of the market, offering consumers new and exciting ways in which to incorporate colour into modern kitchen settings. Glass is providing a more sophisticated and contemporary finish for coloured fridge freezers, making them easier to integrate into minimalist-style kitchens. Tinted glass is also being used to create unique oven door finishes, the latest oven designs offering white tinted glass for a clean, minimalist look.”

PRECIOUS

Balestrazzi adds that Baumatic has developed the “first ever” coloured stainless steel ovens. Manufactured in a process similar to anodizing, the gold, red and black stainless steel appliances offer a uniquely deep lustre, the exclusive hallmark of coloured stainless steel.

“Such one-of-a-kind appliances are helping to individualise kitchen spaces,” she says. “These appliances are being developed as part of entire ranges that

Integrated storage with intelligent technology For a seamless, uninterrupted aesthetic, only Liebherr can deliver the largest volume of fresh and frozen food storage, perfectly integrated into your kitchen. Featuring BioFresh and NoFrost technology, they also integrate features that actually work to make your life easier and your food fresher.

BioFresh helps food retain vitamins, aroma and taste for significantly longer, while NoFrost technology delivers fast, frost-free freezing, meaning every food item is kept in optimum condition. A range of different storage combinations also ensures that whatever your kitchen vision, there’s a model that integrates perfectly – because Liebherr believes in fresh kitchen thinking.

To discover more visit myliebherr.co.uk or call 08444 122 655.

Designer Products

the end user and, according to Bristow, enable retailers to sell appliances above the average marketplace prices.

INSPIRING

Karim Rashid sets the mood for Gorenje

are designed to complement, rather than match, so that a more relaxed and natural kitchen design can be created.”

The growing trend for colourful kitchen appliances that make a style statement represents a huge opportunity to grow incremental sales, believes Sertac Sertler, Head of Product Management at Beko plc. He highlights the new Leisure Colours collection and the high quality of the products, and says the range will stimulate consumer excitement. “New colours have tested positively with consumer focus groups, with the Regency Red model being

PERSUASIVE

Design is clearly a major factor in consumers’ purchase choices, and for retailers the challenge is to ensure that products’ first visual impressions, which are the main attention-grabber in store, are given full scope to work their magic.

For 2013, Liebherr introduced a ‘shop in shop’ concept that would do just that, as well as improving retail margins. The initiative, which is being implemented across selected showrooms, creates an interactive and dedicated space for consumers to experience the brand’s

“Within each coffee segment, design, ergonomics and ease of use along with exceptional flavour and ‘in-cup’ results are key market drivers. It is clear from Groupe SEB’s experience that consumers are prepared to pay for advanced features with advanced styling” Caroline Ross, Product Manager, Coffee, Groupe SEB UK Ltd

especially well received.” Regency Red was one of four new colours added to the Leisure range in 2012, accompanied by Nutmeg Brown, Snow White and Sky Blue.

Sertler maintains that, with consumers increasingly interested in interior design, the demand on manufacturers has never been greater to supply appliances that are both beautiful and functional. Beko, he says, is responding to this by focusing on design and innovation with features such as glass fascias, mirror glass doors and advanced LCD-style timers. “All of these elements make a product more desirable for the consumer and help retail partners to secure sales,” he comments.

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premium models in a move that brings a bit of theatre to the retailer’s showroom and enables the sell-up of products with aspirational features. Mark Bristow, Managing Director for the refrigeration specialist, says: “As Liebherr continues to strengthen its brand presence in the UK, and in continued support of its retailer network, the concept sells added value and features and therefore drives up retailers’ cash margin.”

The move comes alongside Liebherr’s biggest product launch to date, with 64 new appliances that incorporate superior spec ‘Premium’ models that deliver performance, function and efficiency for

Whirlpool Product Marketing Manager Simona Bara maintains that it is essential for retailers to have designer appliances in a kitchen setting to highlight how stunning they look when installed. Her recommendation is to tailor solutions for consumers in your area and to display aspirational arrangements, working with brands that demonstrate beautiful and highly polished design. “Display compacts with full size appliances and include steam, microwave combinations, warming drawers and coffee makers,” she advises. “This will attract attention, which is necessary to engage the potential customer in conversation. It will also encourage the customer to purchase addon appliances.”

De Dietrich sales and marketing director Richard Walker is adamant that an important design aspect is the ability to perfectly co-ordinate a family of appliances within very minimalist

PURE BLACK INDUCTION HOB FROM ELECTROLUX MEANS COOKING WITHOUT LIMITS This minimalist hob does away with traditional hob zones and its intelligent, intuitive controls ensure precise, professional results.

The EHD8740FOK InfinitePure induction hob from Electrolux, the world’s first fully backlit hob, offers a dramatic centrepiece for any new kitchen. That’s because the simplicity of the InfinitePure induction hob’s sleek black rectangle is retained until the hob is turned on. That is when the appliance’s new, intuitive rotary sliders appear.

The controls are inspired by professional chefs’ need for instant, precise heat control. The power level for a zone is selected with a single touch then fine-tuned with a separate rotary-shaped slider. www.electrolux.co.uk Electrolux Trade Sales: 08445 610561

INDUCTION RUNS IN THE

FAMILY Induction now available on freestanding cookers, range cookers, built in ovens and hobs.

We are immensely proud to manufacture all induction products right here in Britain.

The smarter, faster, safer, greener way to cook View all our induction appliances online at: www.belling.co.uk

All work on 32 amp connection

PROUD WINNERS

Designer Products

Whirlpool Fusion: an elegant encounter between glass and steel

QUIET OVEN COMES TO THE UK The Red Dot ‘Best of the Best’ oven, Zen from Amica, is an environmentally sound, technologically advanced appliance conceived for the consumer searching for tranquillity and simplicity in their home. Zen is the antithesis of overwhelming technology. No illumination, alarms, ringtones or buzzing timers – nothing to attack the senses.

Whilst the Zen offers the best of Amica multifunction cooking it does not have a clock or a timer. The door is matt nonreflective glass and the smooth, tactile handle comes in a choice of Birch, Ebony or Oak. Amica UK country manager Simon Freear says: “The response to Zen via Twitter and Facebook tells us there’s a real interest and opportunity for a product that does not add beeps and buzzes to the general household hum. Zen amounts to the polar opposite of what’s currently available across the cooking market. It is ideal for those who cook with ‘feel’ and intuition and simply don’t need reminders and alarms.”

Zen, like all Amica built-in and freestanding appliances, is supplied with a comprehensive 2-year warranty on parts and labour. www.amica-international.co.uk Tel: 01425 461600

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kitchen designs in order to provide absolute stand out. “With the De Dietrich Premium Collection,” he says, “designers and retailers have the opportunity to present a full collection of stunning glass appliances in a single colour option, including ovens, compact ovens, induction hobs and a number of designer hoods. Available in Grey Pearl, White Pearl and Black Pearl colourways, these beautiful appliances offer the ultimate in sophisticated technology while being truly minimalist in their styling.”

see that there are longer-term savings to be made, then they will likely pay more for their appliances.”

Although it may seem obvious, Beko’s Sertler says it is absolutely “vital” to ensure that staff fully understand the latest technology and can relay this in an easy and concise manner. “Appliances are bought so infrequently by general consumers that even features that have been around for some time are worth explaining. This will ensure that they can really appreciate the differences between products and will hopefully encourage

“The economic climate has resulted in the consumer being much more willing to invest in quality appliances that offer excellent design and functionality” Simona Bara, Product Marketing Manager, Built-in, Whirlpool

BENEFICIAL

Baumatic’s Balestrazzi agrees that eye-catching showcases can help with one-off sales, but believes that they work best if the beneficial aspects of products can be demonstrated. To which Samsung adds: “Retailers must ensure that appliances are displayed in a way that showcases the special features and design in the best way possible.

Consumers are prepared to pay more for an appliance if they see the investment is worthwhile and will benefit them in their everyday lives. If consumers can see that an appliance will make their lives easier through flexible design and if they can

them to spend a bit more to get the latest technology or more stylish designs.

“Even in a digital age of online shopping and choosing homewares virtually, we recognise that the vast majority of shoppers will not buy a kitchen appliance without first touching and handling it. Retailers must therefore make appliances accessible and encourage consumers to view them in store. When promoting products for their design, showroom display offers a key opportunity to show them off and to demonstrate how these stylish appliances could look in consumers’ own homes.”

Personally Speaking: John Reddington

JR on the record In last month’s issue of Get Connected, John Reddington, a director of field sales organisation Big Red Sales, gave spontaneous, forthright and perhaps controversial responses to questions put to him without prior notice. In part 2 of this face-to-face encounter with one of the industry’s most experienced entrepreneurs, his responses were no less stimulating.

Q

Who’s to blame for the industry’s current plight?

JR: “In a word, the Government. This is not party political. It’s the nature of Government. Innovation and marketing in this industry are outstanding. But in the end it’s the consumer’s decision whether to buy or not, and consumer choices are severely restricted by this recession – the worst I have seen. Not enough is being done to create the right economic conditions for the industry to flourish.”

Q

What would you do to put it right?

JR: “I’m not qualified to be detailed on this.

But in my experience we need a strong hand on the tiller, common sense, clear, decisive thinking and balanced leadership.

For example (and again this isn’t party political), the UK got its self-respect back under Margaret Thatcher. She did great things, but lost her way towards the end when she lost that balance.”

Q

What are the three most important things indies can do to ensure survival?

JR: “Embrace new technology. React positively to change. And remember profit is the key.”

Q

In the current climate are distributors the friends of retailers?

JR: “They should be. Some are. They can take up the slack caused by the counterproductive, accountant-led front end cuts that have taken sales people and reps out of the industry, and they can do an excellent job getting new products into the marketplace. But there are four main links in the chain from manufacture to market: Manufacturer; Distributor; Retailer; Consumer. Everyone in that chain wants to

make a living, but in the current economic climate, somebody gets squeezed, and it seems that distributors are really suffering from the squeeze – witness Harris & Russell, Isherwoods, Inmans, Path, Lawton.

Their loss adds pressure, and takes even more of that important manufacturer/ retailer contact out of the industry. That, incidentally, is part of the thinking behind Big Red Sales, which offers manufacturers a national field sales force – the primary interface between manufacturer and retailer - at less cost than retaining their own national sales presence.”

Q

Are our banks doing their job of serving SMEs, and is there any cure for shorttermism?

JR: “Probably not. We do need to separate speculative ‘casino’ operations from the basic, business-supporting services of retail banking.”

Q

What are the three most important qualities for being successful in business today?

JR: “Honesty, hard work, determination, commitment, consideration. That’s five, I know, but thinking outside the box and questioning limitations is also important!”

Q

Are those qualities different from what you would have said thirty years ago?

JR: “Yes. I think back then I would have put more emphasis on ambition and competitiveness, paid less attention to others and focused on the priorities of me and mine. Experience has taught me that thinking about the wants and needs of the people you do business with is good business.”

Q

If you had £20 billion to invest in the UK’s economic recovery, how would you use it?

JR: “This is a difficult one. We’ve had a lot of evidence that just throwing money at a problem can’t solve it. Until we have sorted out the deficit (£20 billion is a tiny drop in that ocean!), got some leadership and direction into the recovery policy, and feel we’re all pulling in the same direction, I’d be reluctant to invest my £20 billion.

I’d throw it behind any initiative to create jobs, increase consumer confidence and get people to start spending again.”

Experience has taught me that thinking about the wants and needs of the people you do business with is good business....”

Q

Iss there a question you would like to ask yourself because you believe you have an important answer?

JR: “More of a statement than a question. I am very disappointed at the way the country is being managed.

I had better hopes at the last election that the problems blems created by the previous administration would be tackled. That is not happening. We all have a responsibility to think carefully about the people we need to lead the country forward now.”

JUNE 2013 GET CONNECTED

23

Custom Installation

The move into custom install

As consumer electronics margins contract and sales channels broaden, a growing number of independent electrical retailers are looking beyond the shop floor and moving into custom installation. George Cole offers some advice from those involved in the sector

W

ith custom installation one of the fastest growing areas of home improvement and new build specification, Kris Hogg, managing director of Sheffieldbased Konnectiv Technology Limited, says that in these days of low margins and the “crazy level” of competition from internet retailers, the ability to offer design and installation services can allow independents to maximise their turnover, increase customer retention and recover some margin.

Rufus Greenway is managing director of west London company Sound Environment and a member of the board of CEDIA, the Custom Electronic Design & Installation Association. He believes that retailers should give CI strong consideration as custom install and home technology/integration are growth industries, while consumer electronics

24

GET CONNECTED JUNE 2013

continues to be subject to price and profit margin pressures. “By moving into CI, retailers create the environment to enable profit margins to be increased again. The installation of more complex systems allows the retailer’s reliance on the product profit margins to be reduced,” he comments.

James Drummie, product manager at AV distributor AWE, adds that companies are looking at ways to set themselves apart from competitors and this is no different for independent retailers. “Now, more than ever, it is important to increase your offering, as the recession continues to bite and the competition from department stores and online retailers is intensifying.” Drummie says that one of the key routes for retailers seeking to achieve differentiation and added value for their customers is to extend their

business into custom installation. “We are working with a growing number of independents to evolve their business in this direction,” he says.

FIRST STEPS

Drummie, however, admits that some retailers are put off by the idea. “They are under the impression that they would have to start selling a large range of expensive equipment that won’t be relevant for their customers. This is not necessarily the case. While some custom install projects can include thousands of pounds worth of products, others could consist of a single media-room system with additional costs as little as £500.”

Steve Simper, MD of distributor Alltrade, maintains that by leveraging the key strength of independent retailers, namely their customer service offering,

Custom Installation

it is not a great leap from installing a TV to offering a more comprehensive installation service.

Like Drummie, Simper points out that the market is not all high end. “There are a growing band of customers that want a service that is somewhere between a simple TV ‘unpack and tune in’ and full CI makeover of their home. For example, how

installation courses at favourable rates.

Rufus Greenway says that for retailers considering a move into CI it is best to look at the products and equipment that they sell already and look for partnerships with other manufacturers that need to be added in order to create “whole home” environments. “It is essential to look for the links between these

With the CE market in the doldrums, extending your customer service into basic custom installation is a great way to leverage value from the sector”

Grahams Hi-Fi in London won “Best Integrated Home £100,000 to £250,000” in the CEDIA 2012 awards with this whole house AV system integrating audio, lighting, blinds and security into all rooms

many of your customers would like their music available in any room in the house or even on the decking, all controlled by a single remote control or smart device app? Would they like their Sky HD or other TV service available in a second room downstairs or in the bedroom?”

manufacturers, so training can be applied and support desks and services will be able to help once you are out there installing and adding to your services and core competencies. CEDIA also offers its members training, expertise and certification.”

SUPPORT

SIMPLE SOLUTIONS

In 2011, retra formed a new division, retra Install, offering its members an opportunity to move into CI and inviting existing CI companies to take advantage of the business opportunities offered by retra. Bryan Lovewell, retra chief executive, says that many retra members are starting to realise the market opportunities offered by CI, but he admits that CI is not for everybody. However, there are opportunities for forwardthinking retailers who are looking to add another string to their bow.

At the recent retra conference in London, Jonathan Dugdale, director of family-run business Dugdales Digital Solutions in Clitherow, quoted the Intellect 2012 report which forecast that CI will be a new £3 billion market within the next five years.

He added: “I believe that the independent electrical retailer is the ideal person to take control and make this a reality.”

Last year, retra and the CAI joined forces to offer retra members home

The low cost and revolutionary way to protect your TV screens

For many customers, progressing to a full home automation system is a gradual process, says AWE’s Drummie: “This is why custom install provides the perfect solution for retailers, as it provides an easy up-sell which can then continue to bring repeat business for many years into the future.” He adds that, in the early stages, retailers can look to stock products such as simple wall mounts, system remotes, surround sound speakers and multi-room audio systems.

“I would always recommend these products are on show so that customers can become familiar with the different technologies and appreciate the features and benefits.” Drummie also thinks that retailers should consider training courses available from the major brands and their distributors. “The installation stage needs a professional who is up to speed on the latest technology. Alternatively, retailers could partner with a local CI dealer and build the business together,” he says.

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Custom Installation

“The key point is that extending your normal levels of customer service into chargeable installation work does not have to be technically demanding,” comments Steve Simper. “We stock a wide range of simple-to-install systems (such as HDMI distribution systems, Sonos multi-room audio products and the Global range of adapters) that offer real end-user benefits, are profitable to install and can lead to add-on sales of TVs, speakers and accessories. With the CE market in the doldrums, extending your customer service into basic custom installation is a great way to leverage value from the sector.”

BEWARE THE PITFALLS

“Do not under any circumstances think that it’s easy to deliver simple-to-use systems; it takes training, experience and a lot of forethought,” cautions Konnectiv Technology’s Kris Hogg. “It’s imperative that you commit people and cash to learn the theory and processes first, before you start to offer installation services to your customers. Failure to do this will lead to installations with problems that you can’t rectify, upset customers and earn a really bad reputation for your business.”

Hogg maintains the biggest challenge for retailers is to build up the skill-set in their businesses. “Don’t launch these services until you have enough people trained to the point where you will actually be able to complete the job,” he advises. “From there you will need to reconsider your business model. Cash flow is very different in the installation sector and you need to be firm with your client, ensuring you have the right contractual processes in place to outline the scope of work as well as the costs and processes for charging for variations and additional work.”

For Greenway, the challenge is “time allocation, and being able to charge for the correct amount of time it takes to design and install these systems.

The accountability and documentation required to plan and install these systems is markedly different to the paperwork required in a retail outlet. In retail, the main paperwork is orders and invoices; in CI the paper trail has to be extensive to be carried out successfully and to actually get paid.” But there are also potential benefits, he says: “More competence, better systems, better integration and greater client satisfaction, which all lead to more referrals and a growing business that is more profitable again.”

Being able to offer integration and installation services to your customers opens up the door to larger sales opportunities, as well as increased margins in some areas”

SOUND ADVICE

When it comes to advice for retailers considering a move into CI, Greenway recommends they set aside a room or office away from the retail side to allow the system designer to design systems without the need to interface with passing trade. “It was always a pain dealing with a client who wanted to buy a £55 cartridge when I knew I had a proposal and quote to write for a full house worth many thousands,” he comments.

Hogg’s recommendation is to “get the knowledge and training, try out your skills in-house and don’t use a customer as a guinea pig. Then, and only then, get out there and sell.” He adds that an easier route might be to partner your business with an experienced integration company that will be able to deliver the installation and design side on your behalf: “A number of retailers have chosen to go down this route and it has proven to be a great way into the sector for them.”

Hogg concludes that “being able to offer integration and installation services to your customers opens up the door to larger sales opportunities, as well as increased margins in some areas. More importantly, it allows you to engage with your client in a much deeper way and as long as you do a good job they will remain a customer for life. Offering support and service facilities allows you to gain a regular income from the work you have already done.”

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George Cole

George Cole Gets Connected George Cole pinpoints hotspots in the world of consumer electronics

georgecole@gcmagazine.co.uk

The future for television W

here is television heading? That was one of the hottest topics at this year’s pre-IFA press event held in Sardinia. Michael Zoeller, senior director, sales and marketing TV/AV for Samsung Europe, pointed out that ten years ago more than 95% of the sets in the world were CRT models, and that the High Definition TV standard was only set in 2005. Ten years ago, a 40-inch LCD set cost around £7000, had no HDMI sockets and offered less than HD resolution.

OLED is around 10%. Another pressure point is that LCD is a moving target. Last year, OLED manufacturers faced matching up to 60-inch, 1080p LCD displays; now it’s 84-inch Ultra High Definition screens.

Gray is confident that OLED will play an increasingly important part in the TV market, but the message for now is that it will remain a small part of the market in the short to medium term.

Ultra High Definition TV, also known as 4K2K, looks more promising, and the first

Last year, OLED manufacturers faced matching up to 60-inch, 1080p LCD displays; now it’s 84-inch Ultra High Definition screens.

Paul Gray, director of TV electronics and Europe TV research at DisplaySearch, said: “The global TV business faces new challenges and new opportunities.” The first challenge is falling LCD shipments, which declined for the first time in 2012.

Developments like the digital switchover and HD helped drive sales and this momentum was bound to tail off, but what will be the next driver for the TV market?

The industry has high hopes for OLED displays, which are slimmer and less power hungry than LCD, but as Gray noted: “There was a lot of hype around OLED in 2012, which wasn’t matched by sales.” The fact is that it is very difficult to produce large OLED panels – Gray reckons the current yield rate on large screen

sets have already reached the market, but Gray warned that with 4K2K there was a danger of “poisoning the water like with 3D, with manufacturers rushing in with products that were not complete.”

The fact is that 4K2K standards are still being developed for things such as interconnectivity and inter-operability. Existing HDMI sockets, for example, don’t cater for 4K2K signals. That’s why Samsung has developed a plug-in module, the Evolution Kit, which enables owners of the brand’s existing 4K2K sets to replace both hardware (including the main processor and HDMI sockets) and software by slotting in the kit. “It’s as if Samsung has ripped out the guts of the television and put it into a box,” said Gray.

Plasma – decline and fall?

It was interesting that Gray’s presentation didn’t include any mention of plasma TV, and in a Q&A session he explained why plasma’s decline in the TV market looked set to continue. He said that some companies had invested in both LCD and plasma, because few thought it would be possible to produce very large LCD screens. But now that they can, “there’s no point in backing two horses and running two parallel technologies.

That’s why there’s no investment in plasma,” he offered.

Tablet or TV? We’ve become a population of ‘screenagers’ – spending a lot of our time staring at a screen, often a smartphone or tablet. More and more people are using second screen devices like phones and tablets while watching television, but what are they doing with them? “That’s the big question,” said Gray, who noted that while Smart TVs are expected to reach a compound annual growth rate (CAGR) of 20% between 2010 and 2016, the figure for tablets will be 57%. “Are tablets cannibalising television?” asked Gray. “The general answer is no.”

It seems that people are more likely to use their smartphone for texting while watching the TV, while tablet users are emailing.

“Are these second devices an addition or a distraction? Are people simply multi-tasking in front of the screen?” he asked. The general answer this time seems to be “yes.”

The Chinese way Japanese and Korean TV and panel manufacturers can expect to see more competition from Chinese manufacturers, which Gray believes are poised to break out in this sector. “They have mastered the technology. The challenge is in the branding and marketing.”

In the car industry we’ve seen Chinese companies buy European car companies for their technology and also the brand name. Could a similar thing happen in the TV market?

JUNE 2013 GET CONNECTED

27

Winning with ecommerce

Winning with ecommerce

Retailers need to embrace online sales techniques and get up to speed where advances in mobile shopping are concerned. This is the view of Tayyab Akhlaq, managing director of ecommerce marketplace specialist Genie and the Geek, who discusses the best ways for electrical retailers to make the most of their offerings

O

fcom reported at the end of 2012 that 60% of British mobile phone owners have a smartphone and they each spend, on average, £1,083 per year via their handheld device. That’s more than any other country in the world.

Likewise, tablet ownership has also risen, from 2% to 11% of all UK households throughout 2012.

Staying ahead of the game by embracing new sales methods is the best approach for retailers operating in these challenging times. Testing the water with Click & Collect is the ideal way of ensuring it drives further custom and sales, while also enabling retailers to iron out any technical glitches. Optimising your retail site for mobile use, whether it is an ecommerce site or not, is key to allowing shoppers to browse before they buy and also to help you rank highly on internet searches to drive people in store.

MOBILE OPTIMISED WEBSITES

In the UK, the ecommerce market will continue to be driven by mobile usage, so ensuring your website is mobile optimised should be a priority for electrical retailers looking to stay ahead.

Customers enjoy browsing on the go and are increasingly using their smartphones to research new household items, including three of the most searched for electrical goods – fridge-freezers, microwaves and vacuum cleaners.

With mobile social media usage growing more and more popular, British consumers are used to obtaining information via their phones, which means optimised sites are vital if sales are not to be missed out on.

When it comes to what to sell and, more importantly, how to sell product online, electrical retailers should provide as large a range as possible to maximise 28

GET CONNECTED JUNE 2013

John Lewis and Next both reported strong Christmas sales periods for the recent festive season and largely put it down to Click & Collect. In contrast, Marks & Spencer did not embrace the service and, as a result, missed out on the same level of success. Fashion retailer Next’s usage resulted in online sales rocketing by 11.2%, while its high street stores underperformed.

Before fully offering Click & Collect, it is advisable to trial it on a smaller scale. Selecting specific items to offer enables retailers to cleanse the process of teething problems and ensure the service runs smoothly.

IN-STORE WIFI

Tayyab Akhlaq, MD of Genie & the Geek

interest and engagement. Ensuring you have a strong relationship with your suppliers means that you can list items on your website that you might not carry in store, which will allow you to experiment with ‘virtual’ stock to see what sells best and expand your offerings. Suppliers should be keen to support you by holding stock and releasing it to your customers as and when required so you don’t need to worry about extensive warehouse space.

CLICK & COLLECT

Click & Collect is a growing trend which has largely blossomed on the back of people’s increasing dislike of ‘traditional’ online shopping delivery services. In 2012, Which? revealed that 60% of Brits who made online purchases had a problem with at least one aspect of the delivery.

Offering this service, and promoting it, is an advisable way of driving sales and also footfall to your store.

While offering WiFi in some retail outlets – for example fashion stores – is advisable to enable people to browse while they shop, it needs to be approached with caution for electrical retailers. With the rise of widely known price-matching websites, many household goods can be purchased at varying costs around the country, so protecting your own offers and prices by limiting in-store internet access is advisable.

CUSTOMER SERVICE

Customer service will always be the mainstay of any retailer’s success. Repeat custom and positive word-of-mouth appraisals both arise from it and, alongside competitive pricing and contemporary shopping channels, will ensure the longevity of any business. Maintaining consistent levels of service in store and online is imperative if shoppers are to be encouraged to return.

By going the extra mile, you will be rewarded with customer loyaltyand you’ll reap the benefits of multiple purchases.

Ultimately, the way we buy new goods is changing. Therefore, retailers who make advances in embracing ecommerce now will be the ones to come out the other side bigger and better than ever.

www.genieandthegeek.co.uk

From The Bench

High street woes Is there a way back from today’s crisis in towncentre retailing? Alan Bennett fears not...

T

here has been much comment in the trade press lately about the fate of high street shops and independent retailers in our industry. For over four decades I have been involved in manufacture, service, rental and retail, and have observed them all with a keen eye. From this, I believe that this situation is not retrievable: things cannot continue as they were.

SLIPPERY SLOPE

The beginning of the decline can be clearly identified: the opening of the UK’s first discount warehouse by Comet on a Hull industrial estate in 1968, following the government’s abolition of Resale Price Maintenance. It’s ironic that Comet should itself have recently succumbed to the competition. Founded in 1933, it had its roots in battery service, rental and retail in Yorkshire. Offering a discount of about 20% on manufacturers’ retail prices, the warehouse operation, which heavily advertised in the local press, was a roaring success. Comet grew rapidly from there, opening branches near many large towns.

Other electrical discounters followed, and by 1990 Comet and Dixons had between them 25% of the retail market share and 80% of the out-of-town business.

The decline of the rental habit was a mixed blessing to the independent dealer.

While he benefited from the sales (mainly TV in those days) which resulted, it was at prices already eroded by the likes of Comet and Dixons. Those dealers who rented equipment out themselves had to work ever harder to maintain their portfolio, generally adding white goods to their offerings and providing excellent service to a niche clientele. It is by rental that we ourselves have managed to survive here to date, supplemented by sales, repair services and dish/aerial work, run now from a secondary location in town.

SERVICE RUNDOWN

A huge advantage of independent and neighbourhood electrical dealers was their service and repair operations, at their peak in the ’70s and ’80s. These were not just profit centres in themselves, but very tangible assets to the sales department.

Shop customers bought in the knowledge that when troubles cropped up – and breakdowns were very frequent in those days – there was a fast, local repair service

there for them. As equipment became more reliable and more complex it became increasingly impractical to do repairs locally so technical service gradually got to be the almost exclusive province of the manufacturer and his service agent, usually a large-scale operator on a regional or national basis. When the punter realised that his TV would have to go away, regardless if it needed repair and often at high cost, another reason to buy locally disappeared. Service and knowhow remained (and remains) important, but is now for most dealers confined to the shop and delivery/installation domains.

INTERNET COMPETITION

Of course, the biggest blow to hometown retailing is the rise and rise of internet shopping, where the attractions to the buyer are the irresistible ones of lower prices and wider choice, often with a delivery lead time little longer than that of the local shop with the product in stock. Van Driving Man has a bright future at least!

It is difficult to blame the customer in these very hard times. He is backed up by the Distance Selling Regulations and probably won’t have a problem installing the gear. He won’t have to pay to park in the town centre, perhaps traipse around in the rain and be limited to what is in stock locally.

For the dealer there are the additional burdens of high rents and business rates, lower profit margins and high labour costs and the customer with the Smartphone who scans the barcode and instantly gets a list of prices from a whole bunch of discounters.

None of these factors are going to go away, and I cannot see that the government, the manufacturers or Mary Portas can change them to a degree that will have any real effect on high street trading or the fortunes of independent electrical businesses. I believe that we have to accept that in 2013 the old ways of shopping are becoming obsolete and cannot be revived, any more than we can bring back glass valves or steam engines.

For some shops and dealers there will be some years yet, and it’s good to see that manufacturers like Roberts and Blomberg/Beko, along with CIH/Euronics, D.A.D (Domestic Appliance Distributors) and others are backing them.

REPOSITIONING

Meanwhile, many retailers are repositioning themselves in the market. An internet presence of their own, perhaps with niche products or emphasising the ‘local’ aspect, may work in place of or alongside bricks-and-mortar operations. Some dealers have gone in the direction of technical service only, typically operating from an industrial estate unit or a secondary location; some towards bespoke dish and aerial installation. Homecinema specifying, sales and installation along with smart-home promotion and setup is another successful avenue pursued by a growing (yes!) company in this town. Similar, but on a smaller scale, are the activities of installation, setup and retuning specialists working with equipment which has been purchased elsewhere.

Of course, the biggest blow to hometown retailing is the rise and rise of internet shopping, where the attractions to the buyer are the irresistible ones of lower prices and wider choice...

JUNE 2013 GET CONNECTED

29

Backchat

2-minute Interview C

learly an admirer of strong women and (unsurprisingly) a lover of French food and wine, Claire Charpenet, Marketing Director for Groupe SEB in the UK, confesses to being “a passionate lady” whose singing voice may leave something to be desired.

Fortunately, though, this is not a barrier for a would-be Bond girl.

Why did you choose to work in the electrical industry?

I joined Groupe Seb in France 5 years ago to launch Club Krups and a digital approach, after 12 years spent in FMCG companies (Danone, McDonald’s & Cadbury Schweppes) Who in the industry would you like to spend time with?

I would love to have met Steve Jobs What hobbies do you have?

I’m fond of skiing and sailing. I used to be a sailing teacher in my previous life…

How would you describe yourself?

I’m a passionate lady How do you think others see you?

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

I’d like to work as an interior designer Do you have any hidden talents?

I like singing, but I’m not sure I’m good!

Favourite TV programme?

The Voice What sort of music do you like?

I’m very eclectic: I’m fond of ‘70s music, but I like contemporary music as well What was the greatest turning point in your life?

When I became a mummy 13 years ago Who has been the greatest influence in your life?

My mum What makes you laugh?

When my kids try to explain my job 30

GET CONNECTED JUNE 2013

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

Too shameful to mention

Greatest fear?

Losing any member of my family

Greatest regret?

I try never regretting the past. I like to look forward

Who do you most admire?

Aung San Suu Kyi, the Burmese politician

What historic figure do you identify with most?

Simone Veil, French Minister of Health, who developed women’s rights in the ‘70s

Favourite piece of kit?

My mobile phone. I can’t live without it What would you put into Room 101?

A mouse

What’s your greatest achievement?

My family

What’s your pet hate?

My love of good food

What surprises you?

My kids: they are bright and spontaneous

Do you have any bad habits?

Having a glass of good French wine after an intense day

I try never regretting the past.

I like to look forward Favourite quote?

Tefal. Ideas you can’t live without What do you daydream about?

To work without any constraints Favourite holiday destination?

Corsica What’s the worst thing that’s ever happened to you?

I guess I’m quite lucky for the moment

Name your poison?

French cheese Favourite cuisine?

The French cuisine, indeed!

Is there anything about yourself that you would like to change?

Losing my extra weight You have been offered the opportunity to rule the world for a day, what would be the first change you would make?

Offer a Tefal pan to each householder

What’s the best kind of punishment?

Failing after a huge personal commitment

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

A James Bond girl

Who deserves it?

Nobody… always frustrating!

What motto do you live by?

Think big and dream bigger

Where do you see yourself in 5 years’ time?

Waiting for my son’s result in his graduate exam: beginning of a new life

Life is… … great! 

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