Appliance Retailer - June July 2016

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

RETAILER

APPLIANCE

JUNE / JULY 2016

Benchtop Appliances

Mid-Year Report Card

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MAJOR RETAILERS AND SUPPLIERS OPEN UP

MULTI-USE FUNCTIONS IN HIGH DEMAND

Father’s Day ORAL CARE TIPPED AS GROWTH AREA

The Good Guys WHAT AN IPO MEANS FOR THE INDUSTRY?

AR Social

WRAP-UP OF KEY INDUSTRY EVENTS

YEARS

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

Average Net Distribution per Issue: 6,076 AMAA/CAB Yearly Audit Period ending 31st March 2016.

The only constant is change

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he electrical retailing market is entering an interesting phase with significant change with both retailers and suppliers preparing individual strategies to combat the future.

We know the retailer landscape will permanently change in 2016 with the demise of Dick Smith and Masters contrasted by the impending IPOs for The Good Guys, Shaver Shop and Kogan.

Publicly listing a retailer is not necessarily the path to JB Hi-Fi or Harvey Norman style glory as Dick Smith has recently demonstrated, and for those in the industry long enough to remember Clive Peeters and Strathfield Group.

But on the supplier side, the publicly listed companies are also experiencing mixed fortunes with Sunbeam’s sale seeing it no longer part of a public company in Australia, while arch-rival Breville doubles down and continues its path towards world domination by backing design and innovation. Shriro is another recently listed company with global aspirations that has seen some headwinds in share price, despite signing big-ticket licensing deals with well-known foodies Heston Blumenthal and Neil Perry.

Winning Group, while not a public company, is continuing to challenge the market with its impressive online business and its significant commitment to showrooms – with the Redfern centrepiece to be accompanied by the extraordinary Fortitude Valley development before the end of the year.

Cooking appears to be the flavour of the month at the moment with several retailers taking refuge in the safety and incremental growth of the category which continues to show strong Average Sale Prices (ASP) driven by consumer preference for quality

brands – unlike the audio visual ASP spiral which claimed the Japanese brands, the Korean and Chinese cooking brands are not making a dent on the European stalwarts.

Australia’s obsession with house prices and the notion that high quality appliances actually add value to a home contrasts every other product in an electrical store that drops value as it is driven out of the parking lot.

Protecting cooking as a master category is an important challenge for everyone in the business and it is interesting to see that Harvey Norman’s Queensland flagship store at Bundall has just done precisely this. Over 25 brands have been carefully laid out in a premium environment in a relatively small area towards the back of the store shows that even the old dogs are learning new tricks.

Appliance Retailer is also changing its approach, and we welcome your feedback on how we can continue after 20 years to make this publication in print and online, the best it can be to meet your needs.

I would like to thank Claire Moffat for her second stint as editor of Appliance Retailer. She has provided this industry with several decades of service in news reporting and gathering information from Mingays in print to Connected as a digital product and Appliance Retailer which delivers both print and digital information.

The electrical retailing industry, like journalism and publishing, is in a constant flow of change, and as always, we look forward to taking you on the journey.

Editorial Director James Wells

MEET THE APPLIANCE RETAILER TEAM

Rod Riley www.facebook.com/applianceretailer

Kymberly Martin

Emily Bencic

www.linkedin.com/company/appliance-retailer

Alyssa Coundouris twitter.com/Applianceretail

www.applianceretailer.com.au

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Page 40 Volume 22 / Issue #5

CONTENTS 03 Editorial

Made in France, the Tefal Cuisine Companion is an all-in-one, kitchen wonder machine that creates amazing dishes at the touch of a button. A cooking-capable food processor and more, Cuisine Companion replaces up to 10 appliances in the kitchen and is perfect for chopping, whipping, mixing, kneading, cooking, steaming, blending, stirring, emulsifying, whisking, searing, crushing, milling and precise heating.

How retailers and suppliers are riding the wave of change in 2016.

05 News

Major retailers go public; CE China makes its debut; the latest from industry events, and more.

Executive movements surface among retailers as suppliers strengthen product and sales support.

20 Retail Rules

49 New Appliances

21 Mid-Year Report Card

An intelligent heater from Dimplex for the winter season as Smeg expands its freestanding range.

36 Father’s Day Feature

Important Notice: Changes to Appliance Retailer Magazine Editions

Exclusive Q&A with retailers and suppliers.

The premium products tipped to trend as gifts for Dad in September.

40 Benchtop Feature

Reality cooking shows, multifunctional features and easeof-use drive purchase decisions.

48 New Gadgets

From Bluetooth speakers to headphones, these are the must-have gadgets.

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Appliance Retailer June / July 2016

In the interest of our industry readers, we have decided to consolidate select monthly magazine issues to deliver more powerful and timely editions with the latest product innovations and news updates.

The April and May issues will come together as one edition, along with June and July, from 2017, and November and December issues will amalgamate, effective 2016.

You will never run out of ideas – the 1 Million Menus cookbook included is a genuine source of daily inspiration for successful cooking! With 300 recipes: 100 starters, 100 main dishes and 100 desserts, the possibilities are endless!

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The role of shopper spend for retailers and brands.

Page 48

Brought to you by the French company that has provided home cooks around the world with ingenious and inspiring cooking solutions for 150 years.

ON THE COVER

18 On The Move

NEWS AR

The Good Guys wants IPO

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n initial public offer (IPO) or buyout? This was the question directed at The Good Guys, CEO Michael Ford by Appliance Retailer at an Australia-Israel Chamber of Commerce lunch in Sydney.

Ford was clear: “IPO – we’d like that.

The reason for the IPO is to raise capital to roll out more stores throughout the country and a strong focus is in New South Wales. We own 44 of our stores and the balanced are franchised and we expect to complete the buyout of the remaining stores by July 1.”

When asked about the likely share price on the potential IPO, Ford remained tight-lipped. “We have not even delivered a prospectus yet. There is

The Good Guys, CEO Michael Ford.

phenomenal interest in the brand. The brand is intrinsically and extrinsically very strong, so for investors the company has a well-established brand and seasoned management team that has run the business for many years so it will be well received.

This is very different from others.”

Ford said he had recently met with JB Hi-Fi, the leading contender in

BY KYMBERLY MARTIN

the takeover stakes. “I have met JB management. They like our business.

They would like to expand in ‘home’ and we would be a good vehicle and a good partner to do that and the other (reason) is to be an ally rather than our opposition.”

However, Ford admitted that the election is putting a dampener on business confidence “slightly”.

“I don’t allow the management team to use the economy or the election as an excuse, as there are far too many things to fix inside our business. Consumer confidence with the interest rates as low as they are and the equity people have in their homes is pretty good, and we are very much in the replacement market,” he said.

“Changes with corporate tax, more capital going into the business and capital investment could be helpful.”

When questioned by Appliance Retailer about Gerry Harvey’s possible bid for The Good Guys, Ford described the Harvey Norman chairman as a “disruptive fellow” who had “cleverly wound up the ACCC.” Ford added that “Gerry is not even in the process and he doesn’t have an information memorandum. He said we haven’t sent him one. The fact is he hasn’t asked for one and I don’t think he is really interested. He’s got a great business and I think he has the right contacts.”

Credit Suisse, Goldman Sachs and UBS have been appointed as Joint Lead Managers to support the company’s planned IPO and listing on the ASX. The retailer will work alongside Helfen Corporate Advisory as independent financial adviser. ◆

The Good Guys pop-up store set to open

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BY EMILY BENCIC

he Good Guys will open at a temporary pop up location at the Nowra House and Home Centre. This follows the closure of its Central Avenue store earlier this year, as the company continues to look for a permanent location.

The Good Guys territory executive manager, Michael Lambert says the pop up location The original Good Guys Nowra store. is all about being able to start servicing customers in the Nowra community again. range, our customers will have access to “While the pop up store is smaller all the products and services they have than the average The Good Guys store, always been able to get at The Good and will therefore stock a more limited Guys,” he added. ◆

THE GOOD GUYS SUPPORTS MELBOURNE’S HOMELESS COMMUNITY

BY EMILY BENCIC

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elbourne’s iconic laneway, Hosier Lane, has been chosen as the site of Youth Projects’ new living room designed for homeless youth. Construction company, the Hickory Group, design and architecture practice Elenberg Fraser, and electrical and appliance retailer, The Good Guys, have all pitched in to create the state-of-the-art centre.

The Good Guys executive chairman, Andrew Muir told Appliance Retailer that Youth Project provides vital services for Melbourne’s homeless and disadvantaged.

“Youth Projects has been planning to redevelop their Living Room for a number of years. We were thrilled to contribute the appliances for their new functioning kitchen where they will be teaching clients how to prepare healthy food. We also contributed the washers and dryers for their laundry facility, and products such as MP3 players and computers will make the Living Room space a place of social and personal development, conversation and comfort,” he said. ◆

www.applianceretailer.com.au

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AR NEWS

Strong industry support for former Dick Smith employees

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ormer Dick Smith employee of 18 years, Graham McFarland has launched a Facebook page, which now has 965 active members, to help DSE workers find employment.

McFarland told Appliance Retailer that after the final announcement that Dick Smith stores were to be closed, some of his colleagues started a Facebook page that now holds over 5,000 members, including current and past employees.

“The page gained a lot of attention, especially from the receivers, Ferrier Hodgson, although they were not happy about statements being made and photos from disgruntled employees. So the administrators of the page decided to turn it into a closed page, invite only.

“I saw people who felt hopeless, and scared about their future. I floated an idea with the group about trying to find the workers new employment,” he said.

McFarland then visited his local store in Rouse Hill Shopping Centre NSW. “When I visited the store it hit me hard.

Consumers were ravaging through the store like it was a Myer Boxing Day sale.

They were so rude and focused on a deal. I stood back and all I could see was the staff.

They were teary and exhausted, and it was only days since the announcement. I was only there to experience it for myself.

“ALL I COULD SEE WAS THE STAFF…TEARY AND EXHAUSTED, AND IT WAS ONLY DAYS SINCE THE ANNOUNCEMENT,” Graham McFarland.

BY EMILY BENCIC Left: Smart Choice Tech Repairs national group manager, Jeremy Daly.

Below: Former Dick Smith employees, James Davey, Joe Andrews and Peter Lickiss.

“They don’t need to have a bricks and mortar business either. We know there are plenty of businesses servicing their local communities in other ways. If they are technical and have a passion for technology, or want to be skilled up in the mobile device repairs category, this is a great opportunity for them to set-up and open their own business in this growing industry,” he said.

EVERY BATTERY

“The reality is there weren’t 2,950 vacant roles in the market for specialty retail in Australia or New Zealand, so I started the Facebook page,” he said.

McFarland said it took a few days for the page to get some traction. He started with some close contacts and by the end of the second week, he had engaged with over 40 companies.

“They were all understanding and willing to help. In fact most of them were ex-Dick Smith staff. The reality here is that there is actually a lot of work in Australia, but you have to get out there and find it,” he explained.

McFarland said companies that have hired former DSE employees include: Amart, Repco, Officeworks, The Warehouse NZ, Supercheap Auto, Cash Converters, Jaycar Electronics, Crossmark, Digital Camera Warehouse, Big W, Woolworths, Telstra, and Flight Centre, among many others.

Francis Collins, owner of Every Battery, has staffed his new store exclusively with former Dick Smith workers. He had spent one month visiting Tasmanian Dick Smith stores to offer opportunities to employees faced with forced redundancies, according to local Tasmania media.

“I saw the opportunity to both help out those facing redundancy and build the business through the help of some great employees,” he said.

Former Dick Smith employees, James Davey, Joe Andrews and Peter Lickiss started work at the Every Battery store in Glenorchy, approximately 8km north-west of Hobart, in May.

LEADING EDGE GROUP

Dick Smith Facebook page administrator, Graham McFarland.

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Appliance Retailer June / July 2016

Leading Edge Group is searching for independent businesses to service the mobile device repairs industry across Australia. In late 2015, the Group launched Smart Choice Tech Repairs (SCTR), designed for the mobile phone and mobile device repair industry.

SCTR national group manager, Jeremy Daly told Appliance Retailer that it was an ideal opportunity for former Dick Smith employees to open their own business.

Davey worked at Dick Smith for seven years and with a six-week-old son to provide for he was feeling the pressure looking for a new job.

“I’ve got a young family to look after at home, so the pressure really began to set in as things wound down at Dick Smith,” he told local media.

Davey was thankful Collins came and offered a helping hand rather than advertising the positions.

“Francis simply came into the shop on one of our last trading days and asked if any of us were looking for work,” he said. ◆

Kogan reveals IPO details, growth plans

BY EMILY BENCIC

Kogan.com founder, Ruslan Kogan.

K

ogan.com will have a market capitalisation of $168 million on listing on the Australian Securities Exchange (ASX) on 30 June, 2016. The online retailer announced an offer of new shares at an offer price of $1.80 per share to raise $50 million through an initial public offering (IPO).

The majority of funds raised will be used for growth capital, including investment in new products and categories as well as marketing.

The offer comprises: • An institutional offer, which consisted of an invitation to bid for shares made to institutional investors in Australia and a number of other eligible jurisdictions; • A broker firm offer, which is open to Australian resident investors who receive a firm allocation from their broker;

Shaver Shop goes public

• A priority offer, which is open to investors nominated by Kogan.com; and • An employee offer, which is open only to eligible employees.

No general public offer of shares will be made under the offer. The institutional offer, broker firm offer and priority offer are underwritten by Canaccord Genuity.

Current shareholders, founder and CEO Ruslan Kogan and COO and CFO David Shafer, will retain approximately 69.2% of Kogan.com and will enter into voluntary escrow agreements.

Kogan.com has also appointed Greg Ridder as non-executive chairman and Harry Debney as non-executive director.

Ridder and Debney bring international and local experience in retailing, consumer goods, packaging and logistics to the board of Kogan.com.

BY EMILY BENCIC

S

haver Shop Group is expected to list on the Australian Securities Exchange (ASX) on July 1, 2016. Shaver Shop currently has 99 owned and franchised stores across Australia and New Zealand, but plans to increase its footprint to 145 stores.

Shaver Shop hopes to raise about $98 million through an initial public offer (IPO) of 93.4 million new and existing shares priced at $1.05 each.

“A public listing is a significant milestone for a business that goes back almost 30 years and will position Shaver Shop to expand in a rapidly growing industry across Australia and New Zealand,” Shaver Shop chairman Brodie Arnhold said.

Ridder said that, on behalf of the board, he is pleased to offer potential investors the opportunity to invest in “an iconic Australian online retailer that has helped shape the local online market.”

“Kogan.com is part of a ‘Next Generation’ of online retailers.

In combining the data analytics opportunity offered by online retail with the technological expertise of its management and team, Kogan.com has created a vertically-integrated business model with a market-leading private label capability,” he said.

“As Kogan.com embarks upon its next phase of growth it is well placed to consolidate its leadership position in online consumer electronics and general merchandise, expand into new categories and explore vertical opportunities,” he added.

In addition to underlying market growth, Kogan.com is pursuing: • Growth in new verticals – Kogan Travel and Kogan Mobile • Integration of the Dick Smith online assets which were acquired in April 2016 • Expansion of Kogan.com’s highermargin product ranges, which include private label and domestic third-party branded products • Increasing website traffic and purchase frequency through client expansion Kogan.com founder and CEO Ruslan Kogan said, “We want to ensure that everyone who invests in Kogan.com and becomes a part of our story, believes in our mission, and learns about what makes us tick.” ◆

Some of the funds raised from the share offer will be used to repay most of Shaver Shop’s bank debt in a move expected to give Shaver Shop greater capacity to roll out new stores. Funds will

also be used to pay existing shareholders and management shareholders who sell existing shares.

Shaver Shop said future growth is expected to be driven by product innovation, new customers, online sales, more stores, and the buyback of franchised stores. It will have a market capitalisation of about $131 million upon listing on the Australian Securities Exchange.

The retail offer of shares opens on June 22 and closes on June 27, 2016. ◆ www.applianceretailer.com.au

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AR NEWS

IFA launches CE China exhibition

BY JAMES WELLS 1. Retail giant Amazon’s debut at CE China.

2. High end audio brand Onkyo exhibited at CE China.

3. Udo Jansen, Gerard Tan and Juergen Boyny from GfK. 4. IFA executive director Jens Heithecker on the Bosch stand.

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1

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he CE China exhibition launched in Shenzhen in May, created by the organisers of the annual IFA Berlin exhibition, brought together retailers including Alibaba, Gome, Suning and Amazon China with leading Chinese and international manufacturers for a unique exhibition concept.

There were over 150 exhibitors for the three-day event, across an exhibition area of over 15,000 square metres at the Shenzhen Convention and Exhibition Center.

According to Jens Heithecker, executive director of IFA at Messe Berlin, this exhibition is designed to provide Chinese consumers and members of the trade with a local and international experience.

“Welcome to the very first edition of the new CE China trade show and you can see it is a retail brand show – this means we have Chinese retailers as well as Chinese brands and global brands from around the world here in one place. This is the newest show for the Chinese market, but with clear influence to the Asian markets as well.

“We are proud that some of our largest exhibitors for the very first year of the show are retailers such as Alibaba, Suning, Gome and Amazon China. In addition to this, from the industry side the dominating booths are from Bosch, Siemens, Karcher, and Onkyo emphasising that this is an international show. It is not a trade show with a lot of small booths, it is a brand show that China has not seen so frequently in the past.

“It is a step for IFA to conquer the Asian market with our own show, but 8

Appliance Retailer June / July 2016

3 we have also realised, in the last couple of months, the significant influence this show has on Berlin. We have much better contact with the Chinese retailers and manufacturers who are better informed about IFA in Berlin.

“We have also brought the Euronics and Expert buying groups from Europe and they will inform the industry in China that they act differently to other retailers worldwide, the influence is both ways. We bring over international and niche brands, which is what the new Chinese middleclass is looking for, and of course the leading brands worldwide.

“We have two kinds of trade visitors – the traditional Chinese retailers with central buyers who spread out the products through the shops, but also in this competitive environment of rising online retailers, it is clear that you have to train staff in a better way so the retail shops have a better chance to survive.

“The consumer experience instore has to be an experience and not only a place to pick up products. And the manufacturers feel as though they

4 need much more brand experience in the retail stores, bringing retailers and manufacturers together to train each other with the newest products for the best sales outcome. That is the basic idea here in China and we look forward to demonstrating how we do it in Europe.

“The other point is that the region of Shenzhen is the world’s largest hub for the electronics industry. This means that companies that are developing, manufacturing and marketing these products, need to better understand and find a better way to work with international brands and international markets. This is the chance for them to see and learn about at CE China.”

Dr. Christian Göke, CEO of Messe Berlin added: “As the Asian counterpart of the global IFA trade show, CE China is consciously aligned to the needs of Chinese distributors, and existing retail structures in particular. These distributors are interested in products manufactured by well-known international brands. It will be our task to successfully bring together these companies and distributors at CE China.” ◆

involved that can stand up and say: ‘I was involved in this and this is how I have wanted to produce a better experience’.”

The first Everdure by Heston Blumenthal barbeque products will be launched at the Spoga outdoor trade fair in Cologne, Germany, on 4 September and will then be available in the Australian market.

Heston Blumenthal with Shriro CEO Mike Westrup.

HESTON REMAINS WITH BREVILLE

Shriro signs Heston Blumenthal for Everdure BBQs

BY JAMES WELLS

S

hriro has signed celebrity chef, Heston Blumenthal, with a worldwide agreement to help create Everdure barbeques.

The deal was confirmed in a short statement to the Australian Stock Exchange: “Shriro Holdings Limited has entered into an agreement with the internationally renowned chef Heston Blumenthal to create a worldwide barbeque brand, ‘Everdure by Heston Blumenthal’.

It will incorporate joint product development to revolutionise the outdoor cooking market by providing innovative products with enduring stylish construction and superior performance”.

Shriro CEO Mike Westrup told Appliance Retailer, that the collaboration with Heston Blumenthal has been underway “for some time”.

“We have been working with the Fat Duck experimental kitchen for some time. They are testing our products coming up with ideas on how to improve it,” Westrup said.

This deal follows the decision by Shriro to also launch another range of celebrity-related products last year – the Neil Perry Kitchen by Omega cooking appliances which are now exclusively sold through Harvey Norman stores.

“We are very happy with the Neil Perry Kitchen by Omega range of appliances and the performance of these products through Harvey Norman,” he said.

“The deal we have with Heston is very similar – we don’t have people working with us as brand ambassadors or endorsing as such. Where we have a joint involvement, it seems to work a lot better. We find that consumers see through celebrity endorsement and we prefer to have people

Sub-Zero develops local subsidiary

BY JAMES WELLS

S

ub-Zero has outlined its strategy to create a new local subsidiary from 1 July, with Andrew Mumford appointed as the new managing director.

In a letter from Sub-Zero Group, president and CEO Jim Bakke said the move represented “a long-term commitment to the Australian market, and to the growth of our brands and business in that region.”

“The new entity joins the ranks of six existing company-owned distributorships located in major markets throughout the USA and supported at the corporate level yet operated autonomously in each individual region,” Bakke said.

“Sub-Zero truly appreciates the ongoing support that Paul Bridgeford and the dedicated Multyflex staff have

Breville quickly hosed down any speculation that Heston Blumenthal will be discontinuing its relationship with the local small appliance company.

Breville general manager, Mark O’Kelly confirmed that the relationship with Heston Blumenthal started in 2013, principally to launch the company’s Sage brand in the UK and European markets and has two further years to run.

“His involvement is as our brand ambassador including selected input into New Product Development. The current contract has a further two years to run through to mid-2018,” O’Kelly said.

An additional statement received

by Appliance Retailer from Breville global brand manager, Scott Brady said: “Heston is and remains Breville’s global ambassador for small kitchen electrical appliances. Heston is collaborating with Breville because he believes, in his own words, that we make the best small kitchen appliances in the world. Heston had an association with a housewares brand who made food scales and other accessories when we first met him, and he is free to pursue associations with others outside of the small kitchen appliance space.” ◆

provided throughout the launch and growth of our brands in Australia over the past seven years. The cooperation between our organisations has been outstanding, and we’re excited about the future of our brands in Australia.”

Paul Bridgeford, in a separate letter, thanked his retailers for their assistance with growing the brand in the local market.

“Thanks to your support, the SubZero and Wolf brands are now wellestablished in the Australian market and positioned as the premium luxury kitchen appliances,” Bridgeford said.

“With the changing nature of the appliance industry, the Bridgeford family believes it is timely to affect the sale of the assets of the Multyflex, Sub-Zero Wolf Australian distribution business to the Sub-Zero Group.

“We have been fortunate to successfully introduce Sub-Zero and Wolf to Australia over the past seven years and want to thank you for your tremendous support.” ◆ www.applianceretailer.com.au

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AR NEWS WilliamsWarn founders Ian Williams and Anders Warn with the BrewMaster.

Personal brewery taps new appliance category

BY JAMES WELLS

A

New Zealand-based manufacturer has created a new appliance category with the introduction of a personal brewery that creates 23 litres of beer within seven days or 23 litres of cider within four and a half days.

The WilliamsWarn BrewMaster is the world’s fi rst all-in-one brewing appliance and was invented by New Zealand’s fi rst Master Brewer, Ian Williams, who has worked in some of the largest breweries all over the world, and his business partner Anders Warn.

“As a Kiwi company, establishing the brand in Australia has always been on the agenda for us. We’ve got some aggressive growth plans in place this year as a result of our business to date,” Williams said.

WilliamsWarn is represented in Australia by appliance industry veteran, Mike Church, who worked for Fisher & Paykel for 31 years and was the company’s chief operating officer before departing two years ago.

Church said the company is looking to capitalise on the explosive growth within

TEAC joins forces with DreamWave Audio

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ustralian consumer electronics and audio distributor Teac Australia has been selected as the exclusive Australian and New Zealand distributor for premium Bluetooth speaker maker, DreamWave Audio USA. DreamWave has invested in the Bluetooth speaker segment, bringing a suite of specialist devices to the market. The line-up includes the following products: The Tremor, an extremely rugged, high performance 50 watt Bluetooth speaker system with NFC, IPX5 protection against water/dust/sand/snow, a rechargeable 20,800mAh lithium polymer battery with play time of up to 20 hours.

The Survivor is the world’s fi rst and only high performance 30 watt Bluetooth speaker system with 400A emergency 12V car battery jump starter powerful enough to start up a 7.0L V8 engine. It also boasts

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Appliance Retailer June / July 2016

the craft brewing sector which has grown by 9.5% year-on-year from 2011 to 2016.

“There is a genuine lack of innovation in the major appliance category at the moment and the industry is crying out for something new and exciting. This is a premium appliance and retailers have access to something not available anywhere in the world.

“This is a beautifully-engineered product that is manufactured in Hastings, New Zealand and it is very exciting to be part of this project – especially as there is so much consumer interest in freshly brewed beer and cider.”

The WilliamsWarn BrewMaster, which retails for around $7,500, is currently available through selected Harvey Norman stores nationally as well as E&S Trading in Victoria and the BBQ School in Sydney.

The product is also available with a range of ingredients kits and accessories and the company expects to announce additional products over the coming months. ◆

BY EMILY BENCIC

DreamWave Tremor.

NFC, IPX5 protection along with play time up to 16 hours.

The Explorer is a ruggedly designed outdoor-centric Bluetooth speaker with a powerful 15 watt output, built-in 6,000mAh lithium polymer battery. It features IPX5 protection, a specially designed bike mount for cycling

enthusiasts and play time up to 20 hours.

The Venture is the world’s fi rst and only portable Bluetooth speaker with integrated walkietalkie two-way radio, IPX5 protection, built-in 3,600mAh lithium battery, 360 degree omnidirectional sound effect processor and play time up to 12 hours.

The Harmony is a premium speaker featuring a powerful 16 watt output, 4,500mAh lithium polymer battery and hands-free calling.

Play time is up to 20 hours.

The Bubble Pod is an ultra-light portable outdoor speaker with IPX5 protection, powerful five watt output, 360 degree omni-directional sound effect processor, hands-free calling, and play time of up to 10 hours. ◆

AR NEWS

Braun and Microsoft win 2016 Good Design Awards

BY JAMES WELLS

T

he Braun Series 3 shaver has beaten many of the largest small appliance and major appliance brands to win the Best Product Design in the Domestic Appliances category of 2016 the Good Design Awards.

The Microsoft VR headset was recognised as Best Product Design in the Consumer Electronics category.

Braun said the product is consistent with the values of the brand and stands out due to its functional design and high quality.

“Two shaving foils and a new, optimised middle trimmer ensure thorough shaving of both short and long hair. The distinctive dot-textured surface and the functional thumb rest enable optimal grip for either wet or dry use. The goal for this product was to realise ideal ergonomics and design longevity within the new Braun design language,” the company said.

The Microsoft HoloLens, priced at $3,000, is the fi rst untethered holographic computer and enables users to view and interact with a combination of holograms in their own physical environment as a new way to see the world. It features numerous sensors to provide 360-degree viewing capability as well as built-in audio programs which monitor the location of the user.

“HoloLens provides a unique, immersive computing experience, but one that doesn’t try to block you from the real world. Instead, it embeds your most valuable applications into the world around you. We call this experience mixed reality, and it is enabling all-new ways to create, communicate, work, and play,” the company said.

According to Microsoft, a gamer using HoloLens can fight robots breaking through the actual living room walls, dodging as very real-looking lasers fly past their head. An architect or illustrator using HoloLens can design in three dimensions, moving objects from the screen into the real world to visualise and examine. A professor or student using HoloLens can get up close and personal with their area of study like never before, strolling through rock formations on Mars or examining a hologram cross-section of a beating, human heart.

NASA has recently used HoloLens to create a tour of Mars with former astronaut Buzz Aldrin as the guide for the holographic tour. The Mars experience with the HoloLens is enhanced with commentary from Curiosity Mars rover driver Erisa Hines.

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Appliance Retailer June / July 2016

 Left: Microsoft HoloLens.

Below: Braun Series 3 Shaver.

food is either inconvenient or impossible. Botany’s innovative solution makes growing herbs and salad greens simple and efficient year-round.

The Microsoft HoloLens edged out the Oculus Rift which was also a fi nalist within the Consumer Electronics category at the Good Design Awards. In March 2014, Facebook purchased Oculus for $US2 billion.

YOUNG AUSTRALIAN DESIGN AWARD FOR SUSTAINABILITY

Botany for Sunbeam Australia, designed by Tom Costello from Auxiliary Design School, won the Young Australian Design Award for Sustainability.

Botany is a distinctive vertical aeroponic garden designed to be a simple and attractive micro-farming solution for high density urban homes and apartments where home grown

YOUNG AUSTRALIAN DESIGN AWARD FOR TECHNOLOGY

The Air-O Pan from Sunbeam Australia, designed

by Angelina Kwan from Auxiliary Design School, was awarded the Young Australian Design Award for Technology.

The Air-O Pan concept combines the cooking technologies of an induction fry pan, air fryer, wok, steamer and even a steam oven into an easy-to-use standalone appliance.

It was inspired by the demand for lean, fat-free Western cooking fused with healthy Asian cuisine. The intuitive touch interface enables users to sizzle, sear, steam or stir fry. ◆

2016 DESIGN AWARD WINNERS: Breville

Miele

Bakery Boss

FashonMaster Steam Ironing System DGD 4635 Pressure Steam Oven PT7188 Professional Tumble Dryer PW6088 Professional Washer-Extractor TMV 840 WP Heat Pump Dryer WMV 960 WPS Washing Machine

De’Longhi PrimaDonna Elite Fully Automatic Coffee Machine (ECAM65055MS) PrimaDonna Elite Fully Automatic Coffee Machine (ECAM65075MS)

Dyson Supersonic hairdryer

Kenwood Chef Sense Colour Collection K-Sense 4-slice Toaster K-Sense Kettle K-Sense 2 slice Toaster Persona Glass Kettle

Nespresso Prodigio&milk

Sunbeam Marc Newson Toaster

V-Zug Adora Heat Pump Dishwasher Combi-Steam Oven Refresh Butler

Westinghouse FlexSpace Refrigeration Range

AR NEWS

| On the Move |

BY EMILY BENCIC

The Winning Group, The Good Guys and Myer bolstered their executive teams as Camera House parted with its seasoned general manager. Meanwhile, suppliers Shriro, Seeley International, Emilia Glem and GAF enhanced their sales and product executive teams.

WINNINGS ENHANCES CUSTOMER EXPERIENCE

Katharina Kuehn has joined the Winning Group in the newly created position, head of neurostrategy and innovation, to help provide tailored and meaningful experiences to the customer. Previously neuromarketing strategist, director and co-founder of RDG Insights, Winning Group CEO, John Winning said the appointment will leverage new and innovative ways in understanding changing customer needs.

GLOBAL EXECUTIVE TAKES UP SENIOR ROLE AT TGG

The Good Guys, (TGG) has strengthened its management team with the creation of a new senior role reporting to CEO, Michael Ford. The position is chief retail officer within its executive leadership team and Corey Hedin (pictured above) has taken up the role.

14

Appliance Retailer June / July 2016

Hedin has been working with the retailer for the past five years as a consultant with retail consultancy fi rm, The ROIG Group.

Prior to this, Hedin worked for Best Buy. He began his career on the sales floor, working his way up through management to hold key executive leadership roles.

MYER STRENGTHENS CUSTOMER FOCUS

Michael Scott (pictured left) has moved to the newly created role, executive general manager of brand and marketing, at Myer, reporting to CEO, Richard Umbers. Scott has more than 15 years’ experience in marketing and brand management across local and international brands including Virgin Australia, Coles Myer, Nike, and his own consulting agency.

CAMERA HOUSE FAREWELLS LONG-STANDING GM

After 16 years at the helm of Camera House, general manager, Paul Shearer (pictured left) has suddenly departed the company with reasons left undisclosed. Former project consultant, Andrew Cassidy, has taken on the role of interim general manager.

SHRIRO BRINGS IN NEW PRODUCT MANAGER

Paul Jurd has joined the Shriro team as product manager for Omega. Prior to this role, Jurd was training coordinator for cooking in NSW and national in-house chef for Harvey Norman and Domayne, where he

spent almost 10 years cooking on, and learning about, most cooking appliance brands in the market.

SEELEY RECRUITS NEW GM OF COMMERCIAL SALES

Seeley International has hired Michael Hamilton as the company’s new general manager of commercial sales, effective immediately.

Hamilton was most recently the business development manager for Mayfield Industries. Prior to that, he held a number of senior roles with Daikin Australia, including state manager for South Australia and the Northern Territory.

EMILIA GLEM EXECUTIVE RETURNS

Alex Treskin (pictured left) has recently stepped back into the role of NSW sales executive for Emilia Glem, after leaving the role at the beginning of 2015 after 10 years with the company. During his break from Emilia Glem, Treskin worked in sales for Belling. He replaces Darren Sharvell who has joined Home Appliances.

GAF WELCOMES FORMER HOMEDICS SALES MANAGER

Tim Kendall has taken on the role of sales manager at GAF Control, after his 12 year tenure with Homedics as national sales manager. Prior to his time at Homedics, Kendall worked at Hagemeyer Brands (purchased by Shriro in 2011) for five years, and Sunbeam Australia and New Zealand for 12 years. ◆

TURN UP THE HEAT ON SALES THIS WINTER

This winter, Fujitsu General launched a multi-million dollar marketing campaign, across TV, cinema and online starring the ever popular Mark Taylor. Our Free Money promotion is back, offering consumers up to $400 on a pre-paid visa card when purchasing a Fujitsu Reverse Cycle Air Conditioning System.

So, make sure you are stocked up to continue to take advantage of this great offer for your customers.

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

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400

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Excludes cool only systems.

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

AR NEWS

Department stores and supermarkets shake up executive positions

BY EMILY BENCIC

Dixon has elevated the general manager of food, South African Pieter de Wet, to the new role of group executive of food, reflecting the importance of food in David Jones’ growth strategy.

Dixon has also created a new role, group executive digital, and is searching for a suitable candidate.

“Our business is undergoing a significant transformation and these changes will deliver a world-class leadership team,” Dixon said.

BIG W FAREWELLS BUYING STAFF

Big W CEO Sally Macdonald has dismissed about 40 buyers and assistant buyers from head office, as part of a restructure of its overseas sourcing. The move aims to reduce costs and increase earnings.

Big W’s direct sourcing operations in Hong Kong have been separated from Woolworths’ food and grocery sourcing operations and senior Big W executive, Jeff Vickery, has been posted to Hong Kong as head of quality, sourcing and production to strengthen the group’s direct sourcing channels.

Commenting on the decision, Macdonald said, “Necessary team adjustments have been made across our business to ensure we are choosing and creating the best brands and products for our customers.”

“While buyer numbers have been reduced, we are in the process of recruiting more than 30 new designers across fashion, industrial, graphic and digital to form a centralised and rejuvenated design team,” Macdonald told Fairfax media.

She has also been seeking new sources of supply and has recently established a sourcing team in Bangladesh and mainland China to supplement the Hong Kong buying office.

“Big W is transitioning to a directsourcing model for our own brand

Big W CEO Sally Macdonald.

16

Appliance Retailer June / July 2016

WOOLWORTHS BRINGS FEMALE BOARD REPRESENTATION TO 50%

David Jones chief executive John Dixon.

business and we are working closely with any affected local suppliers and product agents to ensure a smooth and fair transition. We will honour all our contractual commitments,” she said.

“These changes to our sourcing operations will allow us to have complete transparency and direct control over our entire product development process, from design and manufacturing through to delivery to customers in stores,” she added.

Kathee Tesija has joined the Woolworths Board as a non-executive director. As a US resident, she is also an independent director of the Verizon Communications, and a senior advisor and consultant for consultancy agency, Simpactful.

Tesija led the merchandising and supply chain functions at Target in the US from 2008, and was the chief merchandising and supply chain officer and executive vice president when she left the company in 2015.

DAVID JONES RESTRUCTURES EXECUTIVE TEAM

South African retailer Woolworths Holdings has restructured the David Jones’ executive team, sending off merchandise executive, Donna Player, and head of marketing, fi nancial services and customer insights David Robinson.

Player, a former Grace Bros, Katies and Big W executive, has been replaced by longserving Woolworths South Africa executive, David Collins.

Robinson, who joined David Jones in 1998, was replaced on an interim basis by chief operating officer David Thomas while the company searches for a permanent successor.

A David Jones spokesman told media that the shakeup was initiated by new chief executive John Dixon, rather than Woolworths’ chief executive and David Jones chairman Ian Moir.

Woolworths Kathee Tesija.

In a statement to the Australian Securities Exchange (ASX), Woolworths’ chairman, Gordon Cairns said, “I am delighted to have someone with the depth of Kathee’s retailing experience join the Board. Her expertise, particularly in merchandising and supply chain management, as well as her international perspective, will be a great resource. We will now have a 50% representation of women on the Board of Woolworths.” ◆

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AR NEWS

APPLIANCE RETAILER

Gets Social

BY JAMES WELLS AND KYMBERLY MARTIN

SAMSUNG LAUNCHES ADDWASH AND FOUR DOOR FLEX FRIDGES

Samsung hosted retailers and the media at a launch event for the AddWash front loading washing machine and the four-door ‘Flex’ triple cooling refrigerator which represent two key product platforms for the remainder of the year. The AddWash allows users to add clothes to the cycle after it has commenced which is one of the biggest criticisms of front loading machines. The four door ‘Flex’ refrigerator was developed based on feedback from consumers seeking a flexible storage space with variable temperature zones throughout.

Samsung home appliances head of product – Mike Lilly, Samsung head of insights and innovation – Caroline Morgan and Samsung director of home appliances – Jeremy Senior.

LG IN TUNE WITH RADIO ENTHUSIASTS

LG showed off its fi rst smartphone with DAB+, the de facto standard for digital radio broadcasting, at an industry event in Sydney. The smartphone lets users listen to more radio channels than traditional FM and gives them access to a large amount of multimedia content. Unlike music streaming services, digital radio uses no data. “Consumers will be able to listen to the quality of DAB+ in stores and there will be advertising in store catalogues to support the launch,” LG general manager mobile communications, Gino Casha said.

'The Gadget Guy' Peter Blasina and LG general marketing manager Angus Jones.

JURA AND CANCER COUNCIL ‘TEA’ UP

Pictured are: TV presenter, Barry du Bois, Cancer Council CEO Sanchia Aranda, Elle del Re, George Liakatos

18

Appliance Retailer June / July 2016

This year, Jura replaced its traditional Mother’s Day promotional program with a new marketing campaign connected with ‘Australia’s Biggest Morning Tea’. Jura Australia head of sales, George Liakatos, said it was important to identify a trusted charity brand and a group that had a personal connection with the business. The company offered a morning tea hamper valued at $100 to encourage people who purchased a Jura machine to host their own Morning Tea. It also donated $50 from the sale of every coffee machine sold by retailers in April/ May to Cancer Council Australia.

V-ZUG PREVIEWS NEW GAS COOKTOPS

Mark Tragear, V-Zug sales and marketing director with chef Scott Pickett.

Swiss household appliance maker V-Zug held an exclusive media event at its Melbourne showroom. Guests got a preview of a new gas cooktop range being released in July and enjoyed a seven-course dinner prepared by chef Scott Pickett. The new range features slider touch technology for more precise cooking and easy navigation at the touch of a fi nger with melt, simmer and keep warm functions and comprises a wok burner, double burner and four and five burner models. V-Zug will be opening a showroom in Sydney in 2017.

OVENS THE FOCUS AT NEFF TRAINING SESSIONS

Neff recently hosted training sessions for over 220 cooking retailers in Melbourne and Sydney. They were held at The Substation in Newport, Melbourne and the Cell Block Theatre in Darlinghurst, Sydney. Additional training was scheduled throughout June for selected accounts.

The training focused on the new Neff oven range including the Neff Slide&Hide with pyrolitic cleaning and the Neff 60cm Slide&Hide with FullSteam. Retailers were also given a demonstration of the new TwistPad Fire 80cm induction cooktop with extended flex zones due to be launched in August.

TCL TAKES TO THE ROAD

TCL held retailer roadshows with over 300 retailers attending events in Sydney, Melbourne and Brisbane during May. TCL brand manager, Mat Patuawa, said retailers were able to experience the new Q-UHD televisions, including the flagship C1 range. The four key products showcased in the CI range feature Wide Colour Enhancer, Black Crystal Display, Netfl ix, Go Live, Wi-Fi TV, content on demand and connectivity and come in 55inch and 65-inch screen sizes. The C1 flat televisions are available now and the C1 curved models will be released from July 1. www.applianceretailer.com.au

19

AR RETAIL RULES

FOUR WAYS TO INCREASE SPEND Norrelle Goldring from GfK discusses the role of shopper spend.

S

pend refers to the amount customers spend in a particular transaction. It can be by product, category or total basket. The latter is often also called transaction value. Spend is a key objective for retailers, but increasing spend is often challenging in the face of discounting, which along with promotions, reduce product spend.

It’s hard to discount your way to higher category or total transaction spend unless customers are encouraged to buy more items to make up the difference.

Manufacturers also want to maintain or increase spend on their products (but not at the expense of volume). Retailers theoretically care more about category and transaction spend and less about where it comes from, as long as they make margin on it.

WAYS TO INCREASE SPEND

1. Get them to buy more of the same thing In order to increase spend, the price paid by the customer needs to increase. 2fors and 3fors can do this as long as the overall price

increases. For example, the single unit price may be $10, the 2for price may be $15 and the 3for price may be $20. The total basket spend across these items is increased, but obviously the spend per unit is decreased.

Another option is to uptrade the customer to a bigger item, although they will expect a discount.

A number of promotional methods, such as a ‘bonus free item’, add stock weight but do not increase spend. Other examples of increased average weight of purchase (AWOP) but not spend are ‘two for the price of one’ and ‘buy one get one free’. Naturally in categories with high ticket values, such as consumer electronics, these are tactics that are unlikely to be employed (but could be used on accessories).

2. Get them to buy more, across categories Complementary items can be bundled for a discounted price to increase the number of items purchased. ‘Get a cookware set for $99 (instead of $200) when you buy a Brand X oven’ is one example. Occasion based bundles are another example,

ABOUT NORRELLE GOLDRING & GFK

which may be ideal for holidays such as Christmas, Mother’s Day or Father’s Day. 3. Get them to buy the more expensive version This could be an uptrade to a more expensive model or brand which the customer already planned to buy, or switch selling the customer to another brand. If you decide to switch sell, make sure the product still entirely meets the customer’s needs.

In either case, this technique requires staff interaction, an understanding of the customer’s needs and what the customer had planned to buy and why.

4. Sell them something else related to their initial purchase This is ‘incremental selling’. In theory it’s a no-brainer as long as it is based on the right occasion, but it’s surprising how infrequently it’s employed.

To increase spend, it’s important to understand current average spend levels by transaction and category. Simple basket analysis can facilitate this for retailers. AR

Norrelle Goldring is Shopper Lead APAC at global consumer research and retail datahouse GfK. She has 20 years’ experience in retail research and marketing across manufacturer, retailer and agency roles with companies ranging from Diageo to Coca-Cola to Vodafone Stores. Norrelle helps improve shopping experiences by understanding how and why people buy things. Call Norrelle on 0437 335 686 or email norrelle.goldring@gfk.com.

20

Appliance Retailer June / July 2016

RETAILER

APPLIANCE

Mid-Year Report

2016 Major retailers and suppliers from a range of categories discuss 2016 plans, opportunities and threats within the retail industry, and their personal favourite products.

AR MID-YEAR REPORT MICHAEL DOYLE

WIVINA CHANELIERE

(AEG, Electrolux, Westinghouse, Kelvinator, Chef, Simpson, Dishlex & BeefEater)

Groupe SEB

Sales Director – Electrolux Home Products

The year so far: The fi rst half of 2016 has seen good market share growth for us on the back of exceptionally well-received product launches late last year. The most notable of these were in Westinghouse cooking and refrigeration and there were new model Dishlex dishwashers that also stimulated this growth.

We’ve also conducted a high-profi le Westinghouse advertising campaign and increased our brand marketing activities. Our key customers can see that this has been a good investment for them as well as Electrolux.

Second half predictions: The second half of this year will start with a short stall around the forthcoming federal election but then we see further growth on the back of more new product

“WE ALL KNOW THAT CONSUMERS DO MOST OF THEIR PRODUCT RESEARCH ONLINE NOW BUT IT IS ESSENTIAL THAT WE MAKE THEM STILL VALUE THE RETAIL ‘EXPERIENCE’ OF ‘TOUCH AND FEEL’ AND THE CHANCE TO TALK TO EXPERTS WHO WILL EITHER ENDORSE THEIR CHOICE OR CONVINCE THEM OF A BETTER OPTION.” launches, most notably in Electrolux refrigeration and cooking.

And we are seeing increased appliance sales for kitchen fit-outs as a flow-on effect of the residential apartment building boom that has occurred in the major cities in recent years.

Market opportunities: There are always opportunities for the electrical retailing industry particularly in the area of consumer engagement. The Electrolux strategy is to create a ‘remarkable consumer experience’ and this revolves around the pre- and post-purchase area. We have great products with terrific features to enthuse our customers. But we also want to impress them with our after-sales service and to stay engaged as they use our products. There is also an opportunity for more collaboration between suppliers and retailers and Electrolux is engaging with key customers for our mutual benefit. This is particularly so in forecast planning so we can both carry a leaner inventory but create more stock turns.

Industry threats: The biggest threat currently facing the industry which we have some control over is to disregard the opportunities mentioned above – especially in the area of consumer engagement. We all know that consumers do most of their product research online now but it is essential that we make them still value the retail ‘experience’ of ‘touch and feel’ and the chance to talk to experts who will either endorse their choice or convince them of a better option. This is the key to the Electrolux strategy of creating a ‘remarkable consumer experience’.

Best product for 2016: My favourite product is the new Westinghouse FlexSpace refrigerator model range. Consumers have really engaged with this product and, among a host of features, I believe is the adjustable door shelving that more than anything has won their hearts… and mine.

22

Appliance Retailer June / July 2016

Managing Director

The year so far: It has been a great start to the year. On the back of the buoyant real estate market, consumers are investing in good cookware and kitchen benchtop appliances that make their life easier.

Second half predictions: Tefal will be we investing over $1 million in TV advertising on Cookware, Cook4 me Electric Pressure Cooker and Cuisine Companion – Heating Food Processor. There will also be many new products in Linen Care.

Market opportunities: There are many opportunities for brands with innovative products that appeal to current consumer trends. Consumers are still looking for those wonderful products that cook for you, save time and money and deliver delicious meals. Tefal is driving the Electric Pressure cooking category which is about to hit its peak season – winter.

Industry threats: Price erosion is just eroding value on some products. There has been a decline in TV investment from major brands and this is dropping every year, and leaving more room for private label brands.

Best product for 2016: This year it’s defi nitely the Tefal Cook4Me Electric Pressure Cooker. There are three nice colours and it has 100 inbuilt recipes that do all the cooking fast. Melting off the bone lamb shanks in less than 30 minutes.

PETER HAMMERMAN Managing Director 2nds World

The year so far: 2nds World has had a strong start to 2016. We executed a strong promotional calendar that delivered an increase in both customer traffic and sales. The e-commerce channel is still leading growth for the business, but we are fi nding that more and more customers are using multiple channels when purchasing appliances.

Second half predictions: We will see some hesitation in the market until the election has taken place. Let’s hope the politicians are talking up the Australian economy this time and avoiding the doom and gloom, which was very damaging to consumer confidence in 2013. With the Olympics in early August, I am expecting that as soon as the election is over, we will see an uptake in larger panels and recording devices.

Market opportunities: I believe that one of the greatest opportunities for electrical retailers is to continue our focus on servicing the consumer’s needs across a wide spectre of price points and categories, offering the expert advice which consumers would expect to receive from a specialty retailer.

Industry threats: The recent exits of large retailers such as Dick Smith and the relatively quick entry and exit of Masters have created instability in the market with downwards price pressure as these retailers are clearing stock. It has also eroded consumer confidence in the retail industry.

Best product for 2016: The Mitsubishi Electric Multi Drawer fridge (MRWX743YBRA) is my favourite so far. It is a great looking fridge with a lot of intelligent and practical storage solutions for the customer. And judging by the sales figures, our customers seem to think the same.

CATHERINE EDDY Managing Director

GfK Australia and New Zealand The year so far: Specific to GfK we’re working towards a much more integrated business where we can provide our retailers and brands with a truly 360 degree view of consumers and their behaviour and the influences on their choices.

We’re making some really great strides on this front; especially where we can incorporate our Sales Tracking data, broader demographics and client data together with consumer research, so good progress and more to come. Our clients stories vary of course, but generally speaking there are fairly good pockets of growth. We’ve even seen a shift back to the value-end for some core markets like TV and major appliances. Newer categories such as wearables and drones are really moving in terms of percentage growth albeit off smaller bases and hand stick vacuums are having a good run as well. We are loving that there are new categories and that’s the beauty of our industry; it’s always going to be really exciting on the new product development and demand creation front because the core of our consumer promise is technological development.

Second half predictions: The fi rst quarter of the year saw a continuation of the recovery in the AV sector seen during 2015, when the key TV market recorded its fi rst annual sales value growth since 2009. We’re expecting this recovery to continue, helped by the increasing focus on UHD/4K and big screens.

We’re also expecting the Audio market to continue its recent solid performance from Bluetooth speakers, multi-room audio systems and headphones all expected to make further gains, though the rate of growth may slow a little from what we saw in 2015. Within telecoms, premium smartphones and smart watches are expected to take higher shares of the market, leading to value growth.

Market opportunities: The rapid change in the way people consume content is helping to drive diversification and increased functionality in AV product ranging. Based on our consumer research, in Q1 2015, only 8% of people were watching subscription video on demand services, like Netfl ix and Stan – this increased to 29% in Q1 2016. A continuation of these developments should lead to plenty of opportunities

for the industry to add value through complimentary products.

This helps drive mix-driven average price increases, a trend we saw across many categories during 2015. The likely increase in the availability of UHD/4K content, which has so far been limited, will help provide an added boost to sales of UHD/4K TVs and media players. Also, there are opportunities around consumer products as homes get smarter – half of all TVs sold in 2015 were smart TVs, while 18% of washing machines had smart connectivity. There is an opportunity for increased takeup of these smart appliances in 2016.

Industry threats: At a broad level, the economic environment remains the most significant threat. While interest rates and unemployment levels remain low, consumer confidence has weakened recently, a trend that could have an impact on demand for big ticket items that naturally have more complex purchase decisions. Further strengthening of the Australian dollar, whilst potentially helping to increase demand, could also lead to price erosion, the absence of which helped drive the value growth we experienced in 2015. Innovation and a shift to premium features has been a key driver in sales for devices like smartphones. Continuation of that development will be a factor in helping to ensure further value growth, in that if consumers perceive a slow down on innovation they’re likely to delay replacements or not see the value in trading up. I think it’s fair to say that understanding the consumer view, their openness or otherwise to adoption and their decision-making process have never played a more crucial role in success.

Best product for 2016: This is such a hard question. As a household we’re on our third drone; the previous two are somewhere in Sydney Harbour. We’ve also just done a kitchen renovation so the pastel small appliances are in my sights; my favourites are the mint and the pale yellow and I’m trying to work out how to have a little accidental breakage for the existing gunmetal colour appliances that we currently have. We were totally brand agnostic when it came to the larger appliances and just went with what we liked. Now we have a fairly eclectic mix of seven different brands across oven, cooktop, warmer, range hood, microwave, coffee machine, dishwasher and fridge. And who could not love pyrolytic ovens and induction cooktops that do everything for you in half the time with none of the mess? I’m also interested in beacons and how with recent developments they have the potential to transform the way we look passively at buyer behaviour in retail environments and even in the way we collect experience data from consumers.

www.applianceretailer.com.au

23

AR MID-YEAR REPORT TAMARA BUCHANAN Head of Brand

Smeg Australia The year so far: Smeg has enjoyed a positive start to the year with healthy sales that have further solidified our position with both consumers and retail partners. Hard work and committed retail relationships have delivered year-on-year growth in all major domestic appliance and small domestic appliance categories. Through the latter half of 2015, Smeg refreshed its 60cm built-in oven range with the new ‘perfect alignment aesthetic’ proving popular with customers, and increasing the add-on sales of compact ovens. The highly successful introduction of small appliances to the Smeg offering in March 2015 made a huge impact in the marketplace, which in turn grew the premium category. Smeg has maintained a targeted marketing strategy in both print and digital media increasing our brand’s reach – this program extended to a series of dedicated events which further enhanced consumer interaction with the brand.

Second half predictions: Following a general election there is usually an increase in consumer confidence, so we are looking forward to a continuation of the upward trend in retail sales throughout the second half of the year. For many consumers renovation is a very accessible option, contributing to the health of the sector. At EuroCucina in April 2016, Smeg unveiled more than 200 new products – most of which are ready for immediate

24

Appliance Retailer June / July 2016

European production. Smeg Australia has just released its third collection of built-in appliances and will be the fi rst market to carry the new planetary dishwashing platform. We’ll also have a fully revised program for freestanding cookers towards the end of the year and into 2017. The clear direction from Smeg Italy is for continued expansion of the range with ongoing development of original and stylish kitchen appliances. So the forecast is for a strong fi nish to the year for Smeg.

Industry threats: The biggest threat facing our industry right now is losing sight of what the customer wants from our brands – and why they want this. The ever-increasing number of brands on offer exerts more pressure on the salesforce. The sales experience, for the consumer, therefore becomes more complex, the art of salesmanship is diluted and the implementation of thorough training programs is spread more thinly (and in some cases does not filter down to the entire salesforce). These factors can result in selling on price only – which in turn leads to downward pressure on pricing and margin. So here at Smeg we believe it is essential to continually invest in retail salesforce training.

Best product for 2016: Smeg’s planetary dishwashers have taken dishwashing technology to the next level. The new Diamond Series dishwashers are the best dishwashers Smeg has ever produced. Smeg’s commitment to innovation has been unwavering from the fi rst 14 place setting dishwasher in 1970 and orbital wash technology has never been equalled. So it’s exciting to still be out in front setting yet another benchmark. As a whole, the range has been developed with deliberate incremental features – there is a new model for every level of the market – so it is an easy concept for sales people to understand and promote.

JOHN WINNING

GRAEME CUNNINGHAM

The Winning Group

Betta Home Living

CEO

The year so far: The Winning Group has experienced growth in our online and offl ine businesses within the fi rst half of 2016. Some highlights include our recently opened distribution centre in Darwin, through a partnership with a local family business, and a satellite warehouse in Queanbeyan ACT, which means that Appliances Online can offer free, next-day delivery to more of the Australian population. We also have some exciting things happening in our Winning Appliances business that we are currently working on, which will occur later in the year.

Second half predictions: We expect Australians to continue to renovate their homes into the second half of the year, which will have a continued positive impact on the appliance industry.

Winning Appliances’ annual Renovation Intentions Study (conducted by Galaxy Research) revealed that Australians are to spend $24.43 billion on renovations within the next 12 months.

Among those planning to renovate in the next 12 months, the average budget is $18,227 (which is up from $14,700 in 2014 and $16,130 in 2013) and kitchens and bathrooms remain the number one priority for renovations. This is all good news for appliance retailers. You would also expect that after the Federal Election on

“AUSTRALIANS ARE TO SPEND $24.43BN ON RENOVATIONS WITHIN THE NEXT 12 MONTHS.” 2 July, consumer confidence will improve, with Australians more willing to make decisions about purchasing large electrical goods.

Market opportunities: There is a great opportunity for appliance retailers to take advantage of homeowners choosing to renovate their homes in 2016. Kitchens are the statement areas of homes with Australians investing in appliances and fi nishes that ultimately add value to their property when they decide to sell.

Industry threats: The impending presence of Amazon in the Australian market is a threat to those electrical retailers who have not yet established a sophisticated online offering. It’s not enough to have product images on a website and a checkout process. Serious investment into the customer experience and service online and offl ine, is required to compete with both domestic and international online retailers.

Best product for 2016: It’s difficult to pick one particular product, when between Winning Appliances and Appliances Online we sell thousands of products. However, I can name a few per category. For smalls, it would have to be the Philips Pasta and Noodle Maker, which is a great addition for any home chef. From a washing machine and dryer perspective you can’t go past Fisher & Paykel’s 8.5kg front load washing machine and 8kg condenser dryer. Miele’s TwinDos automatic dispensing feature in their washing machines is also a great offering. For dishwashers, the Euromaid DR14S dishwasher is a great entry option and Asko’s D5646SSXXL built-in dishwasher is a good buy as it has large capacity and turbo drying. From a cooking perspective, V-ZUG’s XSL combi-steam oven and Smeg’s 90cm built-in oven are both impressive. Westinghouse’s Family FlexSpace induction cooktop is ideal for multiple pots and pans at one time. Liebherr’s new black steel fridge is defi nitely eye catching and from an AV perspective Samsung’s new 65-inch SUHD TV will defi nitely be popular this year.

CEO

The year so far: The fi rst half has shown growth over 2015 overall with some categories doing particularly well. The growth varies across the country with some regions feeling the effects of drought as well as the downturn in mining.

Second half predictions: We are expecting trade, in general, to continue along the same lines as the fi rst half. The outcome of the upcoming election will no doubt influence consumer confidence which will be critical to the results. Well executed new product launches, coupled with the Olympics should see us perform well.

Market opportunities: Innovative new products are the lifeblood of our industry so we look to our suppliers to continue to invest in R&D. This presents a great opportunity for suppliers and retailers alike. I also believe there is opportunity for electrical retailers to lift their customer service levels to that of other retailers. We are focusing on this in our business and our recent win of the 2015 Roy Morgan Customer Satisfaction Award recognises this.

Best product for 2016: No specific product stand outs, however the integration of the latest design trends and new technology in the cooking category is enhancing the offers to consumers.

PAOLO ALBERTONI

CEO – De’Longhi Australia

(De’Longhi, Kenwood, Braun, Nespresso, Nescafe) The year so far: The fi rst quarter (January to March) for us was a good quarter with the performance varying slightly between brands and categories but we have had a very strong start to the ‘Comfort’ season, steady growth in ‘Fully Automatic’ and a good performance in ‘Kitchen’ machines.

Second half predictions: The predictions for the remainder of the year are for another ‘interesting’ year. The competitive environment is fierce at present and therefore to achieve success it is a requirement to be absolutely spotless throughout the full consumer experience.

Market opportunities: The major opportunity is to continue to innovate and offer products that attract the consumer emotionally, not only functionally.

Industry threats: The major lost opportunity that I see more than a real threat is the lost potential of a perfect execution between leading and innovative suppliers and retail partners; sometimes a better coordinated effort between the investment of key suppliers in innovation and key retailers could lead to a much better result for everyone: the suppliers, the retailers and, most importantly, the end consumers.

Best product for 2016: I have two favourite products for 2016 so far: the fi rst is our new Chef Sense colour collection, a true masterpiece and a clear example of a great combination of performance, style and emotion; the second is our recently launched flagship fully automatic coffee machine, the Primadonna Elite, a machine that offers a totally customisable experience, the true ability to replicate the barista experience at home and a fi rst for De’Longhi to be connected via an app. www.applianceretailer.com.au

25

AR MID-YEAR REPORT NICHOLAS FRY

National Group Manager Leading Appliances

The year so far: We are delighted with the fi rst half of 2016, recording consistent growth in sales and profitability over the same period last year. We’ve ramped up our marketing activity in the past six months, we’ve signed on new members, we’ve enlisted new suppliers, and as a consequence we’re seeing a really positive upward trend in our business. Having just celebrated our third birthday, the Leading Appliances brand is becoming more established and recognised, as a result, customer awareness and loyalty is reflected in our sales results.

It must be said, however, that as a majority of our members are in regional townships, they are subject to the nuances of their local regions, and are affected by issues such as drought, factory and mining closures and youth unemployment. A lot of our members face ongoing and challenging circumstances in their local communities, but they are all resilient, and remain stoic, positive and proactive.

Second half predictions: Whilst the retail sector remains challenging, there are some green shoots in the general economy, and consumer confidence is starting to consolidate.

Our economy has grown at 3% in the past 12 months, and the Consumer Sentiment Index has consistently been above 100, where optimists outnumber pessimists, since November. The demise of Masters and Dick Smith doesn’t help consumer market perceptions, but I am very bullish about the second half of 2016, and expect our growth trend to continue. We are launching a national TV advertising campaign in June, we have the Olympics in August, and there will be other opportunities throughout the second half of the year to drive business in the lead up to Christmas. I guess the lead up to the federal election in July will temporarily slow economic activity, as it habitually does, but beyond that there’s plenty to look forward to.

Market opportunities: The Leading Appliances business dictum is ‘Real Service, Real People’ and we are clearly focused in our business on the level and quality of customer service we provide our customers. I believe the greatest opportunity for our industry is a renewed focus on improved levels of customer service to overcome the debilitating ‘price down’ mentality that pervades our industry. Stepping away from price discounting for no tangible reason and a return to quality, professional, friendly and knowledgeable customer service is a glaring opportunity for the industry. It’s worth remembering that ‘profit’ is not a dirty word, and a lot of our members are benefitting from overcoming discounting by adhering to the provision of good old fashioned customer service. Those suppliers who invest in staff training will benefit most from this. An educated, informed sales person will sell the features, benefits and virtues of their products, not just the price.

Industry threats: The race to the bottom in search of market share has led to ongoing price and profit pressures for all retailers. This is a huge threat to the industry, because as profits decrease pressure comes to bear on all stakeholders.

This transcends across to eCommerce, and the fact that many retailers have forgotten that the main reason consumers shop online is not price, but convenience. The focus must move away from not who can be the cheapest, but who can provide the best service and most professional and satisfying shopping experience for the consumer. The consumer is very discerning with their spending habits, and the dollar stretches only so far, so any 26

Appliance Retailer June / July 2016

competing industry is a threat. We have the advantage of being an exciting technology-driven sector, which engages consumers, so we need to focus on the product, the features, the incredible new technologies resulting from the Internet of Things, and stop driving prices down.

Best product for 2016: Laundry products are a major component of our business, and we’ve seen a directional focus from the major brands on a ‘bigger is better’ product adaptation in recent times. Washing machines are now available with a huge 10kg capacity, and the new Simpson 10kg top load washing machine (SWT1042A) is a personal favourite.

GARTH MICHALSON Managing Director Cleanstar

The year so far: Australia is defi nitely a tough climate at the moment.

Despite this, Cleanstar has continued to grow. This is due to the fact that we offer our clients great margin and service backup with our quality floorcare products. We also have a great salesforce who visit our clients on a regular basis and our client base appreciates this and reward us accordingly. Our brand reputation is of utmost importance to us and that’s why we have been able to further expand our range and client base.

We are also enjoying the trends that are currently driving the floorcare market.

Second half predictions: We are very positive that we will continue our growth in the second half of the year as we introduce some new and innovative floorcare products that we believe will excite the market. We will continue to offer good old fashioned service to the industry that is lacking with the large corporate brands. We also do not compete with our clients like some of the major brands by going direct to the consumer and this is why we know we will continue to experience year-on-year growth.

Market opportunities: Innovation is the key to new opportunities in the electrical retailing industry and offering clients a point of difference. Battery powered floorcare products are very popular as the consumer is obsessed with convenience and they are happy to pay for it.

Industry threats: I believe that cheap imports are the biggest threat to the industry. Machinery that is not electrically approved and also products that are manufactured cheaply where costs are cut to keep the prices down. We believe the public’s safety can be compromised. Another issue is that some brands don’t offer backup parts and a service network. If the consumer requires service backup with a Cleanstar product, we have a very extensive service network around Australia to help them. It is our philosophy to work with the reputable floorcare manufacturers around the world to produce the most reliable and safe equipment for the consumer. Sometimes it is not all about price but offering quality product that lasts.

As previously mentioned, another threat is the fact that major brands are now selling direct to the consumer, especially online, and therefore they are competing with some of the major electrical retailers. Cleanstar does not do that. We do not compete with our client base, but rather support them with great product, service and high margins.

Best product for 2016 : Watch this space. We are currently innovating and will be ready to introduce a new product into the floorcare industry in the second half of the year. Not much more to say at this stage.

GLENN ANDREW

Managing Director

Dyson Australia and New Zealand The year so far: Dyson has had a tremendous start to the year due to our unrivalled range of products across Floor Care and Environmental Control categories, as well our strong relationship with retail partners. In April, we launched our new Cinetic Big Ball full-size vacuum range. This highlights our commitment to innovation, our relentless pursuit to improve our products and dedication to driving the overall Floor Care market. We also continue to grow the handstick category, with more Dyson V6 cord-free vacuums fi nding their way into Australian homes as sales continue to soar.

Second half predictions: We expect to continue our sales growth in the second half of the year with the introduction of new products in key categories. We will continue to invest in marketing campaigns to drive consumer demand and get more shoppers in-store.

Market opportunities: We believe that innovation is the key to fuelling market growth within the electrical retailing industry.

Products focused around health and well-being are also highly sought after by customers, and we see this as a significant growth driver for the market. We look forward to introducing new Dyson products later this year, showcasing our expertise in bringing to market unique technology that will delight consumers.

Industry threats: Cheap and inferior me-too products flooding in and driving the overall market value down – they disappoint consumers by not delivering on their expectations.

Best product for 2016: My favourite product this year is our new Dyson Supersonic hair dryer. Dyson engineers set out to re-think the hair dryer, investing four years and £50m in its development. This included creating a state of the art laboratory dedicated to investigating the science of hair. The Dyson Supersonic hair dryer uses our patented Dyson digital motor V9 which is powerful yet compact, for fast but focused airflow and intelligent temperature control to help protect hair from extreme heat damage.

ANDREW WHITFORD Managing Director

Whitfords of Five Dock The year so far: The fi rst half of the year started really well and has dropped off just a little due to the stock market and the election threat that is looming.

Second half predictions: When we have all dealt with the election in July, I would think that the sales will start to really kick off with consumers regaining confidence in the economy.

Market opportunities: Customers are still looking for great customer service in store and online and the company with that in their DNA will do really well so it is still a great opportunity to increase our sales.

Industry threats: The biggest problem at the moment is if sales slow down the big guys start to chase cash flow and drive the margin down to a level that is not sustainable for anyone.

Let’s hope that won’t happen!

Best product for 2016: The Miele Combi steam oven with water connected is a fantastic product and a must for people who love to cook.

RUSSELL WYKES

Marketing & Business Development Manager – AV Yamaha Music Australia

The year so far: The market has presented its challenges but we’ve seen solid growth in a number of our key categories. This has been primarily off the back of our exciting new technology – MusicCast – which essentially enables our products to speak to one another, unlocking the potential of a whole-of-home audio solution.

Encouragingly, we are now seeing the results of our hard work introducing new products and technology in the previous quarter with dedicated in-store displays, product training, and an allencompassing advertising campaign.

Second half predictions: The recent flurry in multi-room audio technology has re-invigorated the market with new products that have challenged our traditional customers to think differently about audio. Not content to sit still, we’re looking to build on this momentum by expanding our range even further with exciting new models that will revolutionise audio in the home this Christmas.

“THE BEAUTY OF A WHOLE-OF-HOME AUDIO SYSTEM LIES IN ITS PARTS. THE CUSTOMER CAN START WITH JUST ONE OR TWO PRODUCTS, THEN ADD MORE AT A LATER STAGE. FROM A RETAILER’S PERSPECTIVE, THIS SPELLS ‘OPPORTUNITY’ FOR REPEAT CUSTOMERS LOOKING TO BUILD ON THEIR EXISTING PURCHASES. “ Market opportunities: The beauty of a whole-of-home audio system lies in its parts. The customer can start with just one or two products, then add more at a later stage.

From a retailer’s perspective, this spells ‘opportunity’ for repeat customers looking to build on their existing purchases.

Additionally, we’ve identified a critical time in the evolution in the AV Receiver market. Today, we have 4K Ultra HD, a new HDMI standard, object-based audio including DTS:X and Dolby Atmos, as well as network-based multi-room audio.

It’s an exciting time in the market and there has never been a better time to upgrade.

Industry threats: Technology is moving, and moving fast.

The biggest threat is not adapting to these changes on the sales floor. Giving a customer a routine sales pitch or selling a particular product simply because you have done so previously is becoming a less viable option. The reason? The landscape is constantly changing. If you’re not keeping up with innovation it will pass you by along with potential sales.

Best product for 2016: Yamaha’s flagship YSP-5600BSW is the world’s fi rst Sound Bar to support DTS:X and Dolby Atmos.

This is a truly remarkable achievement given the challenges for brands in supporting the next-generation surround sound formats. Yamaha, having been at the forefront of Sound Bar technology for more than a decade now, has once again set the benchmark in this market utilising the true multi-dimensional audio specifications like no other. www.applianceretailer.com.au

27

AR MID-YEAR REPORT BRAD REED

Marketing Manager – Home Appliances LG Australia

The year so far: The LG home appliance category has had a good start to 2016. This has been assisted by a general strengthening in retail sales across the categories we operate in, and a solid product portfolio, led by our washing machine and refrigerator product ranges. The launch of several high-end products has been very well-received by our retail partners and consumers alike.

One of our key product launches so far has been the flagship large capacity 906L LG door-in-door French door refrigerator. It includes an Australian first triple filtration system for ice and water and an ultra-modern looking Diamond Black stainless steel finish that is fingerprint-resistant. It also features a measured fill function that lets users pour one of seven pre-programmed amounts of water without using a measuring jug. We also introduced, and supported with a dedicated marketing campaign, the market’s first ever 14kg top load Smartwasher in response to the growing demand for large capacity machines. This top load machine follows our very successful launch of the 15kg front loader last year, and will help to consolidate LG’s position in the washing machine segment as an innovator. The large capacity unit is designed to keep a large family on top of their ever-increasing mountain of clothes and can significantly reduce the overall number of loads washed each week.

Second half predictions: The second half of 2016 will see one of the biggest periods of activity from LG in the home appliance area for many years and we will be revealing some very exciting products that we predict consumers will love. One of our most exciting releases will be the new Roboking vacuum that can be controlled remotely via a smartphone app. The unit features a built-in camera that you can access while you’re not at home. The appeal of this product will extend beyond those who love automated technology to a broader audience that can see the benefits of having a device in the home that can remotely monitor movement and send images from inside the house to a smartphone. While developing smarter appliances will be a key focus for us in the second half of the year, we’ll also be

28

Appliance Retailer June / July 2016

concentrating on improving the energy efficiency of many of our products as we go through model refreshes for our refrigerators, dryers and dishwashers.

Market opportunities: There are several opportunities for retailers in the coming 12 months. The fi rst is range expansion – particularly at the top end of the market. We are seeing large capacity washing machines take off in a big way driven by lifestyle demands of people to spend less time on domestic chores. Our recent 14kg top load Smartwasher was launched in response to this trend, and we predict that demand for other products that combine two washing units in the one appliance (large and small load capacities) will further expand the category. In the refrigerator segment, advances in design that include better use of internal space, flexible door designs to minimise cold air loss, shelving options to assist storage versatility and exterior materials such as fi ngerprint resistant stainless steel coatings and curved glass will appeal to customers looking for a statement piece in their home. The second is time saving, and convenience is a big part of the reason we developed the LG CordZero handstick. We are seeing households move to having second machines in the home, keeping a large heavyduty option for the serious clean and a smaller, more portable handheld unit for smaller jobs. This is also the reason we have moved our entire vacuum range to cordless (battery operated) units – across canister, handstick and robotic models. The advances in battery technology now mean that run times and suction are not unduly compromised and the versatility of not having to struggle with power cables is very appealing to many consumers. In addition, as robotic vacuum options continue to evolve, we are seeing more people get excited about products like the Roboking that saves time and leaves people free to do the things they enjoy.

Industry threats: This industry is one that changes rapidly but there is always the danger of not listening to what consumers want and need. Our focus is 100% on our customers and developing products that will make their lives easier.

Best product for 2016: My favourite LG product has to be the 14kg top load Smartwasher. We know from recent research that many families spend upwards of three hours per week (and up to eight loads of washing) doing their laundry and we hope that this product will help to reduce the amount of time people spend chained to their laundry.

BRAD HALES

National Marketing Communications Manager Uniden Australia

The year so far: The start of 2016 has been challenging with the changing retail landscape, particularly with the demise of Dick Smith. Despite this, Uniden continues to maintain healthy results and remains optimistic for the future. Our key categories – surveillance, UHF, cordless phones, in-car and baby monitors –continue to bring in strong sales. Late last year, we formed a strategic alliance with Motorola and will continue to introduce innovative products in the pet monitor and connected lifestyle categories in the coming months. As testament to the company’s continued growth, we have also recruited the “best of the best” in our industry to help strengthen categories in which we see most potential.

Second half predictions: This year, we are celebrating 50 years of global excellence since the company was founded in Tokyo, Japan. We anticipate positive growth in the company with a significant volume of products scheduled for release during the second half of the year. Our UHF division is expected to thrive as we move into our second consecutive year of ambassador programs, including the upcoming seasons of Network Ten’s Pat Callinan 4X4 Adventures and The Off Road Adventure Show.

These initiatives are designed to help lift our brand awareness among the general consumer and outdoor enthusiast audiences, as well as provide an excellent platform for showcasing our latest and greatest UHF and dash cam products. Our new XDECT cordless phone range is expected to be a top seller cementing our position as a leading manufacturer in the cordless phone category since 2003. Our security and connected home range of products will also continue to expand and occupy a larger part of our business.

Market opportunities: It is positive to see retailers encouraging new trends with attempts to be the first in the market to launch new product lines. The connected home is becoming an increasingly widespread trend among consumers. With our new range of security and Smart Home Control products, we feel this will help educate consumers on the benefits of controlling their home security remotely. We also encourage retailers to consider other products that traditionally go well in other sides of retail including baby monitors. Our Baby Watch baby monitor range has been recognised

by Mother & Baby – voted as the baby monitor of the year in 2012 and 2015 – and is a great product to consider to range.

Industry threats: In our industry, there are no real threats, although there is competition among certain segments of the market. This can confuse customers about different features and benefits and also blurs the messages between different brands.

Price erosion and competition from brands offering inferior products with limited backend support and service remains an ongoing issue across the industry.

Best product for 2016: As a father of toddler twins, my favourite product is our new Baby Watch baby monitor.

Stemming from a range of award winning products, the new Baby Watch BW3451R is an easy-to-use 2-in-1 baby monitor, which offers a standalone app. The intuitive device, combined with the iOS/Android Baby Watch app, lets users log in and check on the kids when you’re not home. It’s particularly useful for parents yearning to see loved ones while away from home.

Unique to Uniden’s line of baby monitors, the new Baby Watch features a pan and tilt camera to control pan, tilt and zoom manoeuvres remotely via the Baby Watch app. The app even lets parents talk to their baby through their smartphone.

WENDY HAMMOND Country Director

Mitac Australia (Navman) The year so far: The fi rst half of the year – after the January sales – is always a productive time for us when we are putting the fi nal touches to new product development for the second half. Our focus is always on designing and delivering the right products at the right price for Australia and New Zealand, and this year we’ll be bringing some especially exciting and innovative new motoring products – both GPS and dash cams – to market.

Second half predictions: I think we really have to watch what happens with the Australian economy. While I am personally less concerned about the impact one prime minister or another may have on consumers’ appetite to spend, I do think we need to keep a close eye on factors like house prices, interest rates, exchange rates and falling consumer prices almost across the board. If we can avoid deep discounting at supplier and retailer levels, we’ll be doing our bit to arrest the current trend of deflation in the Australian economy, and doing our bit to make all of our businesses more profitable.

“IF WE CAN AVOID DEEP DISCOUNTING AT SUPPLIER AND RETAILER LEVELS, WE’LL BE DOING OUR BIT TO ARREST THE CURRENT TREND OF DEFLATION IN THE AUSTRALIAN ECONOMY” Market opportunities: Products that aren’t just another gadget but genuinely solve a real-life issue for consumers. Our dash cams defi nitely do this. We’re not selling the ability to record your scenic drive (though there is that benefit), we’re selling the security of knowing that if you’re involved in an accident, you have the clear, unambiguous evidence (shot in full HD) to present to the insurers or to the court to prove what really happened. Consumers are learning that if the ‘other guy’ has their own evidence and they don’t, they may be at a serious disadvantage and it can cost them. And with more than 18 million registered cars on the roads in Australia, the potential market is enormous. I’d also add that talk of the demise of GPS is greatly exaggerated – we’re still seeing steady sales for new models every year because they work right out of the box, no need for downloads, drop outs when you’re travelling around the country because suddenly you’re out of mobile range, and also the quality and depth of information – everything from speed and safety cameras, traffic alerts to restaurant guides, SOS assistance, nearest petrol station and much more.

Industry threats: I think when you look around other retail sectors – fashion, sports goods, grocery – you can see a number of international brands disrupting their way onto the Australian market. Disruption is happening in so many sectors and affecting the way we all approach business. I think while it is not necessarily a threat, it certainly is a challenge for everyone to stay ahead of the game.

Best product for 2016: I’m thrilled with the new range of MiVUE dash cams. I can’t say too much about them right now but suffice it to say they will offer a range of features that right now can only be found on luxury new model cars and really make driving significantly safer. The quality, features and finish of the products puts them at the top of this category. www.applianceretailer.com.au

29

AR MID-YEAR REPORT DANIEL BERTUCCIO

National Marketing Manager

Eurolinx (Ilve, De Dietrich, Fhiaba) The year so far: Thus far, 2016 has been a good year for Ilve and indeed Eurolinx. Along with the development of various initiatives that will see us move into the next fi nancial year in good stead, we have seen a positive up-turn in the Ilve range of appliances. Our planning and execution has been more concise and targeted to our core market and we are seeing benefits from doing so.

“AS THE MARKET BECOMES MORE COMPETITIVE, BRANDS WILL CONTINUE TO RELEASE MORE CUTTING EDGE, DESIGN FOCUSED AND QUALITY APPLIANCES. IT’S IMPORTANT TO KEEP INFORMED TO PROVIDE CUSTOMERS WITH THE BEST RETAIL EXPERIENCE POSSIBLE.” Second half predictions: I don’t see an immediate end to the renovation market, speak to any builder and they will tell you that there is a six-month waiting list. This can only be a good sign for our industry. Of course the market will remain competitive for both retailers and suppliers, but it is up to us to take the opportunities when these present themselves.

Market opportunities: As the market becomes more competitive, brands will continue to release more cutting edge, design focused and quality appliances. It’s important to keep informed to provide customers with the best retail experience possible. Information is everywhere and available on levels the industry has never experienced before. Therefore, it’s more important than ever to be aware of what’s available so customers feel confident in-store.

Industry threats: For imported brands, a volatile dollar could, pose a threat.

CRAIG GABB

National Sales Manager – Appliances Spectrum Brands

The year so far: We have had a solid fi rst half of the year in both our Home and Personal Care businesses. We’ve seen particular growth in emerging categories such as IPL hair removal.

Second half predictions: For Russell Hobbs and George Foreman brands, personal blending will continue to be a strong category as advertised innovation brings sought-after benefits to drive high margin sales. Incremental sales will be gained with products presented for gifting. For Remington, the grooming category will continue to grow as consumers trade up to high performance products. The IPL category will also continue to grow as consumers become aware of the convenience these products offer as an at home hair removal solution. There will be incremental sales opportunities with products presented for gifting at seasonal events.

30

Appliance Retailer June / July 2016

Market opportunities: Retailers can drive increased sales and profits by promoting product innovation and the associated consumer benefits. Increased sales at seasonal events can be maximised through strong merchandising of promotional products and gift packs. There is further opportunity in the online environment to make the process easy for consumers to research products to either lead them into store to buy or to make an online purchase.

Industry threats: Further currency erosion putting more pressure on prices.

Best product for 2016: My favourite personal care product is the Remington Rapid Cut hair clipper. This intelligent device incorporates CurveCut blade technology with premium stainless steel curved blades to deliver a quick, powerful cut. I’m a regular user of this handy tool, and can cut my own hair in less than five minutes! For home appliances I love the new Russell Hobbs Smooth IQ iron as it’s unlike any iron I’ve seen before. It’s the only iron with fabric softening agents infused into the soleplate, as well as tourmaline for smooth, anti-static ironing. Whilst similar technology has been seen in other categories, such as hair straighteners and fabric softeners, it is completely revolutionary to irons. This is all part of the innovative Wrinkle Defence System that helps combat and defend against wrinkles, making ironing easier and providing some amazing results.

DAVE SMITH

General Manager – Sales and Marketing Fujitsu General Australia

The year so far: Fujitsu General has experienced a healthy start to 2016.

Summer and winter are traditionally our key selling periods however, unseasonably warm autumn conditions continuing throughout the first few months of the year has helped contribute to positive growth for the category. Recent promotions supporting our retailer and dealer customers received early boosts with the prolonged summer, and the Fujitsu Assist service program introduced in 2015 allowed us to provide exceptionally efficient after-sales support across our entire customer network, which improved the performance of the business across all departments.

Second half predictions: Further to recent media coverage and Bureau of Meteorology research, extreme temperatures are becoming the norm. Therefore, Fujitsu is anticipating further growth in the second half of the year. The latest Fujitsu reverse cycle air conditioners are our most efficient ever, and combined with our innovative approach to pointof-sale, we are able to help consumers better understand the benefits of reverse cycle air conditioning.

Market opportunities: Recent research has inferred that gas prices are about to jump significantly , presenting many consumers with the need to reassess their heating options.

A Fujitsu reverse cycle air conditioning system can operate efficiently to provide year-round comfort as well as deliver significant energy and cost savings, and we feel retailers are in a very strong position to encourage consumers to consider reverse cycle air conditioning as a home temperature control solution.

Industry threats: The need to educate consumers about the long term benefits of features and technologies in reverse cycle air conditioners continues. Rising unemployment and stagnated consumer spending remain strong influences when purchasing higher valued products for the home. Fujitsu General continues to support its retail partners with marketing and promotional initiatives to help drive foot traffic into stores.

RICHARD TASSONE

Director – Consumer Electronics Group Panasonic Australia

The year so far: In general, business has been strong for Panasonic. We’ve also seen a high level of competition in the market. There have been fi rm sales for our TV and wider Home Entertainment range, as well as good performances from Lumix and our small appliance and microwave categories.

Second half predictions: We think the business climate will be similar. Panasonic is expecting to be strong in the Home Entertainment area with a new TV, Blu-ray and audio range being rolled out with key products available for the Olympic period. With an excellent air conditioning offering, we are hoping for a warm start to spring to encourage sales.

Market opportunities: The current attention on picture quality and premium products in the TV category is good for both Panasonic’s business and the industry as a whole. If we can continue to focus on the high value market and sell new technologies and their benefits to the consumer, this will impact positively on our industry’s overall growth potential.

Industry threats: There have been some significant recent changes in our industry in the retail and vendor side. These pose challenges that we will need to face to combat contraction of the industry.

Best product for 2016: The new Panasonic Viera Ultra HD 4K LED LCD TV – the TH-65DX900. This Ultra HD Premium TV has exceptional picture quality and stunning design. It delivers on the promise of offering the consumer a cinema experience at home.

MARK O’KELLY

General Manager

Breville Australia and New Zealand The year so far: It has been a solid start to 2016, with the Breville Group experiencing growth in the fi rst half.

We have maintained or grown market share in most major categories with the exception of food preparation.

Breville has also recently strengthened its senior management team with the appointments of Mark Payne as COO and Cliff Torng as Go-To-Market Officer.

Second half predictions: The retail environment is going to continue to be patchy depending on the channel. However, our Christmas line-up of new products is exceptionally strong so we expect to pick up additional market share in the second half.

Market opportunities: Connectivity is still a hot topic, driving product development and in-store experiences.

Opportunities will be determined by the way brands and retailers develop and adapt technology and connectivity that is actually meaningful for the consumer.

Industry threats: Financial stability is the greatest threat in current market conditions, with the potential of more retailer consolidation. Further weakening of the Australian dollar is also a major concern.

Best product for 2016: I have two favourites. With the award-winning Oracle espresso machine I can enjoy café quality coffee at home. I also regularly make green smoothies using the Boss to Go personal blender – it fi nely blends all the ingredients and the tumbler is very comfortable to drink from.

SJAAK BROUWER Managing Director

Miele Australia & New Zealand The year so far: While the overall small domestic appliance and major domestic appliance market demonstrated strong growth in 2015, Miele outperformed the market to gain market share in most categories in which we operate. This positive trend continued in the fi rst months of the year. In the dishwasher category, Miele was a stand-out, achieving strong double digit growth both in value and volume. This was significantly due to recently launched products, positioned at price points, greeted enthusiastically by the customers and consumers alike.

Second half predictions: We expect a positive trend for the rest of the year, although market growth won’t be as spectacular as last year. We are confident that our new product program in combination with a strong media communication and promotional support plan will drive the business in a positive direction.

Market opportunities: Recent research indicates that more than 50% of consumers visit a physical store to get information on the product, despite the importance of online. Consumers in Australia still value face-to-face relationships, and that is a great insight. Since consumers seek to be engaged, retailers can make a significant difference at point-of-sale, delivering added value and maximising consumer experience. At the same time, retail has to be prepared for digital marketing. To a certain extent, online is already a significant part of the purchase process and this will only increase into the future.

Industry threats: Currently, we observe, many more new brands entering the Australian market and gaining distribution.

Listing increasing numbers of new brands can achieve dilution in the quality of their presentation and sales support. More brands means more training needs, reallocation of floor space and the resulting clear risk of losing focus.

Best product for 2016: There is so much happening in the field of connectivity in the home with numerous integrated systems on the market across many product categories. I particularly like the new convenience concepts which enhance ease-of-use for consumers. A great example is the TwinDOS automatic dosing system featured in the Miele W1 washing machines. Digital connectivity offers even further opportunities.

This new technology, which has recently been launched in Europe, actually connects your washing machine and detergent usage. When detergent is ru nning low, you get a message on your mobile device and, with a simple click, you can order for next day delivery at the desired location. www.applianceretailer.com.au

31

AR MID-YEAR REPORT EUAN MITCHELL

Country Manager & Sales Director Vitamix ANZ

The year so far: The market has continued to be inundated with blenders in the fi rst half of 2016, and it’s pleasing to see both retailers and consumers continuing with astute buying and demanding quality, performance and durability. This has seen the Vitamix year-on-year business delivering impressive double digit growth. Vitamix has continued to win awards with the Vitamix Professional Series 500 topping the Super Blender category review by independent consumer watchdog Choice, and our social media platforms continue to swell with ever-growing Vitamix consumers who share the positive impact a Vitamix has on improving the vitality of Australians’ lives.

Second half predictions: With Australians continuing to invest in their health and wellbeing, the appetite for high performance blenders will continue in the second half of 2016.

The continued high demand will see Vitamix expand into new channel categories, further cementing our premium high performance market positioning.

Market opportunities: Industry demand for blenders will continue as consumers adopt a blending lifestyle. Consumers now expect more from their blender. They want good quality smoothies (not roughies) while expecting further versatility so they can heat, whip, chop, mix, crush, puree, grind, emulsify and clean.

Industry threats: It’s important the industry stays relevant to the consumer’s needs, focusing on brands that deliver on their promises. It’s vital we continue to build the integrity within the blending category, and retailers need to align with brands that deliver on their market promises and uphold a highly satisfactory customer experience.

Best product for 2016: It would have to be our Vitamix Professional Series 500 which won best in class by Choice Magazine. The machine is amazing, not only can I create hot and cold recipes, it self-cleans.

JOHN CIAGLIA

Commercial Manager

Nespresso Australia The year so far: It has been a very positive start for Nespresso this year. In January, we introduced two unique Limited Edition Pure Origin Grands Crus, Umutima wa Lake Kivu and Tanim de Chiapas coffee capsules, which have received great feedback from our Club Members.

In addition to expanding our coffee offering, we also extended our range of coffee machines. With the introduction of the Prodigio&Milk machine, Nespresso’s first connected machine, we are continuing to drive innovation as well as appeal to customers looking for the next level of convenience and versatility.

These advancements highlight Nespresso’s commitment to offer the highest quality coffee and innovative machines to cater to every person’s preference.

As well as these new product launches, we expanded our retail offering by opening two new Nespresso Pop-Up Boutiques.

A condensed version of our permanent Boutiques, these PopUps help demonstrate Nespresso’s continuously evolving services to meet the needs of Club Members all over Australia.

32

Appliance Retailer June / July 2016

Second half predictions: I believe we will continue to see an increase in consumers looking for technology that offers even more convenience and ‘connectedness’ to fit into their busy lifestyles. As the relationship between technology and coffee continues to evolve, coffee companies have the opportunity to adapt their products to meet this need. The Prodigio&Milk is Nespresso’s fi rst smartphone connected machine. Using Bluetooth Smart technology, the Prodigio&Milk machine seamlessly links with the renowned Nespresso smartphone app, for the ultimate convenience. With this need for more convenience, our Pop-Up Boutiques also offers customers tailormade, convenient services to enhance the Nespresso experience in even more locations than ever before. As well as convenience, we see consumers exploring premium brands and products to ensure both reliability and quality in their experiences. Coffee lovers turn to Nespresso for high quality and consistent results.

Market opportunities: Recently, there has been an increase of coffee appreciation with Australians expanding their coffee repertoire more than ever before. Coffee lovers are looking for their favourite café-quality coffee in the convenience of their lounge rooms. This need for high quality coffee is driving machine owners to upgrade their coffee appliances, and in turn the single-serve coffee category will continue to grow.

Nespresso’s machine range offers a coffee solution for every taste and preference, giving consumers looking to upgrade their machine a wide variety to choose from. Our focus for the second half of the year will be to showcase our unstoppable drive for machine innovation, Club Services and the highest quality coffee solutions. Our innovations and cutting-edge designs have continually reinvented the coffee machine, and the exciting product launches in the second half of 2016 will be no different.

Nespresso also meets this need by delivering not just a wide range of integrated coffee machine solutions but also 23 Grand Cru coffees produced from an exclusive selection of the fi nest green coffee. Only 1-2% of the coffee grown globally meets our specific taste and aroma profi les and our high standards of quality.

Industry threats: There are now more players in the capsule coffee category than ever before. Each year, we notice that as the competitors continue to rise, so do the number of diverse product solutions they offer. This makes it an important time for us, as the pioneers of the category, to reinforce that Nespresso is more than just a machine. When you buy a Nespresso machine you join The Nespresso Club, giving you 24/7 access to our knowledgeable coffee specialists who provide advice on coffees, machines and accessories as well as instantaneous product orders. Our innovations and services continue to set the standard for customer care and provide a level of added value, unmatched in the industry. This is why our Club Members continue to choose the genuine quality of Nespresso.

Best product for 2016: I am very proud of the launch of the new Prodigio&Milk machine, Nespresso’s first ‘connected’ machine, as it showcases the brand’s commitment to offering the latest technology to its Club Members. This launch was in response to increasing consumer need for technological integration into their ever-connected lifestyles. This machine range offers more convenience than ever before, with a modern compact design and innovative technology. The new Prodigio&Milk machine allows coffee lovers to be alerted when they are running low on their capsules, be notified of the perfect time to de-scale or refill water and even prepare their favourite Grands Crus remotely. All of the alerts and services will be sent directly to the linked Nespresso smartphone app via Bluetooth technology to create a seamless coffee experience. This means coffee lovers can have their coffee made while they are getting ready for the day ahead, or continue reading the news while the machine does the work.

LARS SNITKJAER

GEOFFREY BOOTH

Andi-Co

Black & White Engineering Solutions

CEO

The year so far: Andi-Co Australia experienced positive results with both Falcon and Liebherr in the fi rst half of 2016. Product wise, both brands performed well for us. The diversity in the range we offer means we have continued to meet the personal needs of our customers. Our brands’ commitment to design, quality and innovation leads the way in range cookers, refrigeration products and wine cellars. In a challenging market these factors are our point of difference and contribute to the success of our brands. At Andi-Co Australia, we continued to invest in our national product training program to build confidence within sales teams across Australia. We know that understanding is the key to a brands retail success.

Second half predictions: We remain optimistic for the second half of 2016. Coming out from a Federal Election is always tough and we see consumer confidence decline during this time, however we also know that it doesn’t take long for consumers to start spending again. Andi-Co Australia will continue to drive efforts into building consumer awareness,

“THE CONTINUED STRENGTH OF REALITY COOKING/DESIGN SHOWS MEAN KITCHEN APPLIANCES ARE FRONT OF MIND FOR CONSUMERS. AUDIENCES HAVE A SENSE OF TRUST ASSOCIATED WITH CELEBRITIES...” confidence and promoting the diverse range of premium products available, both for Falcon and Liebherr. We will keep supporting the teams on the sales floor to ensure they win the confidence of the end consumer. Whether through training sessions, demonstration workshops, or Q&A initiatives, AndiCo Australia will drive opportunities to support our retailers as much as possible.

Market opportunities: The continued strength of reality cooking/design shows mean kitchen appliances are front of mind for consumers. Audiences have a sense of trust associated with celebrities, Andi-Co Australia are aware of how this can drive a brand in the market. Digital, digital and digital is the buzz, so a solid online presence must be executed to build brand awareness. Social media has become an important part of the integrated marketing mix, engaging with customers on these platforms allow people to feel as if they are part of a community, our community. Communicating in real time is key.

Industry threats: In the short term, following the Federal Election there is a lingering influence over consumer confidence, however this is a challenge the industry has dealt with many times before. The Australian economy plays influence to a degree, however we understand our customers and their buying behaviour for premium appliances is less sensitive to external economic factors.

Best product for 2016: With a looming new Falcon product launch in the second half of 2016, we are focusing on what’s ahead of us. There will be something new to offer to the market, and we are hoping it will excite consumers. Stay in touch and look out for the Nexus range cooker.

Managing Director

The year so far: The fi rst half of 2016 has been indicative of the economy stepping up and moving out of the doldrums. Most companies have spent the last year restructuring and are now actioning expansion and growth plans, driving increased activity and investing in new technologies and product innovation. Direct evidence of this economic growth at BWES is the number of new products we have assisted our clients launch in the past few months. Companies seem to have accepted that sitting on existing product lines is not an acceptable strategy to maintain or increase market share. For BWES this means increased sales and projects for our busy team, and as a result we are increasing our capacity to address demand and employing more staff. In short we are enjoying a surge of increased activity.

Second half predictions: We predict that the second half of 2016 will continue to build on this level of growth. With Australia being a highly regulated and risk adverse country, this increased activity will result in strong sales for BWES, especially in the areas of technical support, regulatory compliance, risk mitigation and due diligence for new products being launched.

Market opportunities: Retailers who support trusted and reputable brands that successfully launch good quality and innovative products to market will have a winning strategy. This is because consumers are increasingly aware that lesser brands do not offer true value for money due to their inferior safety compliance, performance quality and reliability. Web marketing and sales also continue to offer an opportunity provided the consumer can rely on the supplier to deliver. For example, purchasing from an Australian based online store is a more trusted source for products as the local agent takes responsibility for the supply of the product if something goes wrong, e.g. in regards to warranties, safety or customer satisfaction issues.

Industry threats: The proliferation of global online sales into Australia may well be the greatest threat to our industry. Australia is a mature market and regulations apply for well-established reasons, with electrical safety testing and certification being mandatory measures for high risk products. Overseas companies selling to consumers via the internet can bypass these essential regulations whereas businesses selling through more traditional sales channels in Australia generally understand and comply with these regulations. Whilst historically appliances sold in Australia have been considered to be the safest in the world, our regulations do not appear to have been designed to mitigate the risk associated with products that can now be supplied directly to households without being compliant. Thus untested, unapproved and potentially unsafe products can be supplied via the internet to unaware members of the public, putting their safety at risk, and jeopardising consumer confidence in the industry as a whole.

Best product for 2016: The Black & Decker 18V four piece kit - drill driver, reciprocating saw, circular saw and flashlight (BDC4KITB) is a personal favourite of mine, and a good example of a retailer (purchased through Masters) marketing a trusted local brand that has a great product packed with technology and innovation. This unit has received positive online reviews, with its best feature being the dynamic braking on the saws and drill. This significantly improves the safety of the product, as the moving part comes to a complete stop within one second of being turned off, meaning the tools are immediately safe to put down after they are turned off. www.applianceretailer.com.au

33

AR MID-YEAR REPORT JASON MCLEAN

Director – Consumer Imaging Canon Australia

The year so far: 2016 kicked off at pace, continuing the momentum that saw 2015 become our third consecutive year of standout performance locally as well as from a Canon global perspective.

We’ve seen some landmark products announced such as the EOS 1DX Mark II Pro DSLR, the EOS 80D, DSLR and the PowerShot G7 X Mark II advanced compact that enable people to push beyond their boundaries of achievement with imaging. But more than this, we’ve continued consumer experience programs and retail partnerships that help open people’s eyes to what’s possible with our help. Our Canon Light Awards, Canon Collective events and regional festivals, pro events and the daily celebration of people’s achievement across channels all add up to more inspired, skilled and satisfied users of our products, which leads to future growth.

Second half predictions: Canon’s Vivid Sydney experiences in June set the scene for our biggest ever second-half program.

We’re confident that our focus together with our partners on the consumer and delivering experiences that always exceed their expectations will continue to see us play an important part in peoples’ lives.

Market opportunities: If the past three years have taught us anything, it’s that being restless and focusing on doing things differently are essential for remaining relevant to the consumer.

Watching, listening and adapting to change are critical to providing the experience that is demanded by a consumer that is more empowered than ever before. It’s not something to be feared but embraced as an opportunity to differentiate ourselves based on the value we offer.

Industry threats: Losing relevance to the consumer. There are no channels anymore – consumers will shop and buy where and when they want, in the manner that suits them best. With traditional retail channel distinctions gone, the opportunity to reinvent based on the consumer experience has seen one of our ‘traditional’ photo specialty retailers adapt and quickly grow to become our number one customer in just a couple of years. This is a powerful validation of our single-minded approach of being guided by what the users of our products want.

Best product for 2016: Our national Collective events and Vivid Sydney program are standout ‘products’ allowing us to help tens of thousands of people do more with their imaging in unexpected ways. At the heart, of course, we have imaging gear at every level – from capture to output – acknowledged as the world’s best through five recent TIPA Awards.

GEORGE LIAKATOS Head of Sales

Jura Australia The year so far: Business has been quite positive particularly with the early introduction of two of our new product lines for 2016, the Z6 and E8, which has helped boost sales. We have also established new corporate partnerships with Cancer Council Australia’s iconic Australia’s Biggest Morning Tea, and Shine Endemol’s 2016 production of The Voice Australia, to increase 34

Appliance Retailer June / July 2016

brand awareness and align ourselves with other strong brands and causes that see us helping to make a difference. This year we also announced an extension of our existing relationship with brand ambassador Roger Federer until 2020.

Second half predictions: Our next round of product introductions will be completed in the second half of the year, which will continue to drive demand and interest in our products. The coffee market is exhibiting signs of growth which are we looking to benefit from. We also continue to see holistic wellbeing trends on the rise internationally, and we believe this will continue to benefit Jura’s commitment to automated machines that use fresh beans.

Market opportunities: The ‘connected home’ is still a growing trend with higher demand for connected products.

Thankfully, we were able to capitalise on this with the launch of our new Z6 and E8 which are both Bluetooth enabled with our Smart Connect transmitter. Together with Smart Connect we can now use our machines with the Jura Coffee app on any mobile device. Connectivity will continue to grow and will elevate appliances from merely fulfi lling a purely functional role.

Industry threats: The volatility currently in the political landscape always impacts purchasing decisions. Being an election year this may cause a delay in the decision-making purchases until some certainty is established.

Best product for 2016: Without doubt the Jura Z6 Aluminium coffee machine. We knew from its European launch late in 2015 that this would be a very successful product. Since its introduction it has been extremely well received with strong sales reported from our existing business partners. This machine is packed full of new innovations designed to improve the coffee quality even further, with the new Pulse Extraction Process being a world fi rst technology exclusive to Jura.

RUSSELL ZIMMERMAN Executive Director

Australian Retailers Association The year so far: Although the fi rst half of 2016 has not been as strong as all retailers had hoped for, it has been reasonable, helped by the continuity of robust home sales. Household goods in particular saw fairly good growth. Considering the economy is not as strong as it could be, most retailers have been happy with the growth achieved. In the very early part of 2016 we saw some disappointing sides of the retail economy with retailers Dick Smith and Laura Ashley both in fi nancial difficulties. This demonstrates that for some traders sales have not yet returned to a level of stability.

Second half predictions: Given the unstable political environment and an election triggered by a double dissolution, many consumers have been left with uncertainty, not knowing what to expect from the election, insufficient tax being collected by the Government, and the Government unsure how to redistribute the tax collection. Elections traditionally result in a downturn in consumer confidence, and we can expect to see a fall in confidence levels again this time around. I do not see any real positive signs until after the election is over – consumers want a decisive Government, and unfortunately we are not seeing that at present.

Market opportunities: Assuming that the housing industry continues good growth, interest rates remain low, and once the election is out of the way, I predict a somewhat better second half. Provided there is a clear win in the election by either the

Coalition or Labor, business can expect whoever is in power to provide a more stable direction for the future, which will of course lead to an increase in consumer confidence and willingness to spend.

Industry threats: The biggest current threat to retail, as noted above, is an indecisive Government. Consumer sentiment is running low, and should the warmer weather of the early part of Autumn continue, we may see slower sales of winter electrical items such as heaters. If interest rates were to rise in the foreseeable future this would also impact on consumers.

DANNY HAMILTON CEO

Kleenmaid The year so far: The fi rst half, in some respect, was slower than the second half of last year but we are seeing a solid foundation of sales coming from our selling partners as they come to understand our offering. In what is a tough market, our continued focus on quality engagement with our selling partners and our persistent commitment to superior customer support is really hitting the mark and rewarding our efforts with good sales results. The fundamentals of ensuring that our entire business vision and focus is on our selling partners and the consumer needs has been driving our success.

Second half predictions: I said in last year’s report card that, “I was predicting that the second half of the year would be tremendous for us in every facet of our business” and it was. I am expecting the very same result in the second half of 2016.

Market opportunities: It was once said that when the going gets tough the tough get going and that applies in the electrical retail industry today. To succeed in today’s environment, we need to simply do the job better than we have ever done before.

There is still plenty of business to secure. The retailer who is dedicated to professional, consumer-focused selling, knows their product and is willing to ask for the order when they have earned the right to do so, will sell successfully. Consumers want to be assisted and they want to be sold. They are time poor and want professional, well founded advice. Due to the internet, consumers are better informed than they ever have been. It is therefore incumbent on sales professionals to know their product. Consumers respect and reward the sales person who is well-presented, well-trained and well-informed. The retailer who has staff on the floor who know what is expected of them and execute that expectation ethically will win more business than their competitors who do not do that. This is because that is exactly what consumers are seeking from a sales professional when they come in to buy. In short, the opportunity is to excel and stand above mediocrity.

Industry threats: I think the threats are complacency and a lack of innovative vision. It is being stuck in outdated methods of selling which are now inconsistent with the expectations of today’s consumer. It is relying on, to the point of addiction, massive discounts to get business. It is selling on price alone. If we continue to do what we have been doing, we can only expect to get what we have been getting. If a change in result is needed then a change in attitude and execution is required. The retailer who lifts their standards of customer service, continuously invests time in staff training and rewards their staff for great results will win above the rest. In short the threat is – ourselves.

Best product for 2016 : The-about-to-be launched Kleenmaid Eco Sensitive LW8014 front load washing machine

is my favourite product for 2016. We have taken five years to perfect this machine and with its totally unique European engineering it will revolutionise the domestic laundry. The LW8014 is defi nitely going to be a massive game changer for us and our customers. Quicker wash times, less water and energy usage and the ability to eliminate pathogens and allergens with a 90 degrees Celsius allergy safe rinse make this washer stand alone in the Australian market place.

CRAIGE COLE

National Sales Manager Speed Queen

The year so far: 2016 so far has seen Speed Queen continue a strong trajectory growth as in 2015. The launch of our new ‘Touch Range’ in November 2015 has resulted in real incremental business in both top load and front load categories.

We are barely keeping up with product demand, which is a good place to be. In 2016, our Q1 sales were up over 50 per cent compared to 2015 with the majority of that increase coming through our bricks and mortar chartered agents in all states except those in Western Australia who have suffered at the hand of the resources slowdown. Our online chartered agents have not enjoyed the same growth and it would appear at this stage the consumers like to touch and feel when purchasing premium laundry appliances.

Second half predictions: As we move into the laundry season we will certainly see the growth trend continue and as the display distribution of our new front load washers increases we will increase our market share. Speed Queen will continue to offer their chartered agents outstanding profit opportunities and with margin withering for some brands, we should see additional sales come to Speed Queen. The Western Australian market has been challenging, but we should start to see an increase in sales as the resources sector shows some meagre signs of recovery.

Market opportunities: The real opportunities are in highend products that offer better margin opportunities for the retailers and better quality for the consumer. High-end products coupled with exceptional customer service are starting to attract real attention as the Australian consumer tires of products that don’t deliver on their expectations.

Industry threats: One of most significant comments I get from retailers in conversation is: “Where do we fi nd good sales staff?” – I hear this and similar comments on a daily basis.

The reality is that seven-days-a-week retailing is not family friendly for the majority of workers. I believe this is because once most of our good young retailers get married and begin a family they move onto another industry that allows them to spend quality time with their loved ones. The drain on retail ranks to the supplier side of the business is constant and we fi nd their replacements do not seem to be getting the training needed for them to become career retail salespeople. If we train them well, pay them well and be flexible with rostering we just might attract and keep the good salespeople that this industry is desperate for.

Best product for 2016: The new Speed Queen stack washer dryer, 10kg washer and load matching dryer in one cabinet. Wash one load while you dry another and complete a wash then a dry in less than two hours (40min wash and 45-50min dry time on a full load). 10kgs of laundry – that’s a week’s worth washed and dried. The most important commodity for anyone is time. Let’s give some back to our customers. www.applianceretailer.com.au

35

AR FATHER’S DAY

TRENDS

PERSONAL CARE sales tipped to boom

BY EMILY BENCIC

F

ather’s Day consistently provides retailers with the opportunity to capitalise on a range of categories, from intelligent personal grooming to high-tech dash cams and robotic vacuums. The key trends for 2016, according to some of the leading personal care brands, include rapid growth in electric toothbrushes and customisation in clippers.

Suppliers have outlined their expectations for this gift-giving period and the latest products they predict to be in popular demand.

Sales of shaving and grooming products are expected to double for Remington this Father’s Day. Spectrum Brands marketing manager – personal care, Jo Clark said the company had seen a twofold sales spike in the past during the gift giving period.

“These products are a natural gift for Dad and we maximise sales at Father’s Day through strong merchandising of promotional products and gift packs in-store, online and in catalogues,” she said.

36

Appliance Retailer June / July 2016

Jo Clark – Spectrum Brands.

Mann & Noble, distributor of Braun and Oral B brands, marketing and public relations manager, Petra Bergman agreed with Clark, stating that Father’s Day is an ideal opportunity for retailers to promote personal grooming products.

“Power oral-care remains the fastest growing segment globally and represents a significant opportunity for Australian retailers with only 19% of consumers using a power toothbrush in the past six months versus 44% in Germany and 26% in US. The category has the potential to double in the next decade and retailers that support the category will gain the most,” she said.

Philips Australia and New Zealand senior marketing manager - personal health, Tom Paltridge is also ready for the shaving and grooming category to take ‘centre stage’ in retail ahead of Father’s Day in September.

“Among Australian males, beards are becoming increasingly popular, and while styles may evolve, we do not see it disappearing. It may even drive product innovation in the future,” he said.

“Having said that, there is still a dominant male audience who prefer a clean shaved face. Whatever style a man wants, we have the right tools to match his personality and preference,” he added.

Tom Paltridge – Philips.

Cindie Yates – Conair.

Conair category manager, Cindie Yates also noted that Father’s Day was a peak season for shaving and grooming because Dads want a different gift from the traditional tie, socks and undies.

“They seek gifts that are premium, innovative and that fulfi l their desire for the latest technology. In particular, the self-clipping category has seen great success over the past 12 months, as men seek products that save them time and money,” Yates added.

Meanwhile, Fitzone Solutions is extending its Beurer personal care/ health and well-being products across multiple categories, including personal monitoring and massage just in time for Father’s Day. Director, Maria Russo said, “Beurer’s focus on pushing the boundaries of

new technologies and embracing new innovations continues to enable the brand to pioneer new opportunities.

“As the personal health trend continues, Beurer will offer a considerable breadth of products for use in the comfort and convenience of the home,” she said.

Steering away from personal grooming to a key player in the CE market, Uniden has expanded its product categories to offer shoppers a range of unique gift ideas. In late 2015, the company formed a strategic alliance with Motorola as the distributor of Motorola’s pet monitoring products to Australian consumers.

“While this is not dissimilar to our traditional line of wireless communication products, the pet accessory space is still relatively young

Maria Russo – Fitzone Solutions.

Brad Hales – Uniden.

in Australia. It offers manufacturers and retailers opportunities to capitalise on a new and growing market,” national marketing communications manager, Brad Hales said.

Meanwhile, data from Sampford IXL suggests that there is a spike in robotic vacuum sales during the Father’s Day period.

Marketing manager, Malcolm Russell explained, “Technology products gain traction over the Father’s Day period and this is reflective in the success of iRobot’s products, due to the appeal of the robotic technology and delivering on their cleaning promise and timesaving capabilities. This spike provides a welcomed sales event in floorcare for retailers post-Mother’s Day and prior to the Christmas sales period,” he said. AR

RESULTS AND RANGES

Connectivity may be the next big thing in GROOMING

BY EMILY BENCIC

N

ot only has connectivity entered the coffee market, it can now also be found in the personal care category. The Oral B SmartSeries Pro 5000 toothbrush comes with Intelligent Bluetooth 4.0 Technology that connects with a smartphone to customise the brushing experience. Users must download the Oral-B app on their smartphone and connect with Bluetooth to receive realtime feedback on brushing habits.

Remington will introduce the Barber’s Best range of premium grooming tools for barbershop results.

The Barber’s Best Hair Clipper offers two times cutting performance with its

powerful Lithium battery. It also offers a Trim-Shave attachment blade that trims hair back to 0.2mm for a shaved look without the irritation caused by shaving.

The Barber’s Best Beard Trimmer is perfect for the man that wants to maintain a beard or sport stubble with the dedicated beard and stubble blades.

It features titanium coated blades that are 300% stronger than stainless steel blades and a patented adjustable zoom comb, while harnessing dual lithium batteries offering 120 minute run time.

Integrating the world’s only intelligent Sonic technology, a Braun Series 7 shaver is significantly more gentle and efficient than any rotary shaver. It adapts to individual facial

contours and beard density. With less strokes and pressure required, the results are smooth skin without irritation.

Just in time for Father’s Day, Philips will release its Vacuum Beard Trimmer, which has seen improvements both in design and functionality. It offers double sharpened steel blades, a hair lift comb and a vacuum that captures up to 90% of cut hair for a fast, even trim with the advantage of leaving less mess in the bathroom.

Meanwhile, Conair is leading with on-trend grooming products that deliver premium technology. The V Double is VSforMen’s latest innovation in self-cut clipping, offering a modern take on the traditional clipper. www.applianceretailer.com.au

37

AR FATHER’S DAY VSforMen will support the budget conscious shopper with the launch of The Trim Buddy. It is a lithium powered nose, ear and facial hair trimmer, perfect for that man looking to do touch-ups.

Strengthening VSforMen’s range is The Beard Buddy, designed for beard and stubble, nose and ears.

For the shopper looking to spoil Dad, but is a little strapped for cash, VSforMen will launch The Deluxe Clipper Gift Set,

available in two colours, red or grey, and packed with accessories.

The Beurer HK48 heated cushion from Fitzone features turbo speed heat, three illuminated heat settings, 90 minute safety auto switch off and breathable, skin friendly fabrics that are machine washable. It also features the Oeko-Tex 100 Standard, which ensures that no harmful substances have been used in the manufacturing

process, particularly beneficial to those with skin sensitivities.

The latest dashcam from Uniden, the iGO Cam 755, is designed for recreational drivers and daily commuters who want extra protection in the event of a road related incident or dispute. The improved video quality makes it easier for road users to report traffic events and accidents to police and insurance companies. AR

PRODUCT GALLERY

Philips Series 7000 Vacuum Beard Trimmer  Double-sharpened stainless steel blades for faster trimming  20 lock-in length settings  60 minutes run time after one-hour charge  Two year warranty

The self-cut clipper is ideal for a faded or short even cut. It has been designed with innovative dual blades for multi-directional cutting making it faster and easier to achieve a perfect self-cut. It includes a storage pouch, cleaning brush and oil.

RRP: $129.95

Philips: 1300 363 391

The V Double Clipper VSM7575A    

The integrated vacuum system with this trimmer, trims the beard, moustache and sideburns, keeping it tidy. Its powerful vacuum catches cut hair delivering a mess-free trim.

60 minute cordless run time High performance motor Ear taper cutting comb guide Removable and washable blades

RRP: $89.95

Conair: (02) 8422 1234

BY EMILY BENCIC The next level of oral care innovation is featured with this electric rechargeable toothbrush with Bluetooth connectivity. Users can download the Oral-B app on a smartphone and connect with Bluetooth to get real-time feedback on brushing habits.

Heated Cushion/ HeatPad Duo (HK48)  Turbo speed heat  Three illuminated heat settings  90 minute safety auto switch off and breathable  Fabrics are machine washable

RRP: $99.95

Fitzone: (02) 9451 0333

Therapeutic relief is available all year round with this luxurious, reversible Heated Cushion/Heatpad Duo made of fleecy microfibre. Simply remove the cushion’s insert to transform the unit into a versatile heatpad.

Braun Series 7 Electric Wet and Dry Foil Shaver Oral-B Pro 5000 SmartSeries Toothbrush  Clinically proven superior 3D Cleaning Action  Five modes: Daily Clean, Gum Care, Sensitive, Whitening, and Deep Clean  Pressure sensor alert  In-handle timer

RRP: $259

Mann & Noble: 1800 099 385 38

Appliance Retailer June / July 2016

   

Intelligent Sonic technology 100% waterproof Clean&Charge station Five different shaving modes

RRP: $549

Mann & Noble: 1800 099 385 This shaver boasts flexible cutting elements mounted on a fully pivoting head.

MicroMotion combined with MacroMotion allows for thorough results.

MultiCuisine. Endless Options, Healthier Choices.

MultiCuisine is an innovation toward healthier cooking, with low oil frying and multiple cooking functions, the recipe options are endless and the meals are healthier. The exclusive Surrounding Heating System allows meals to be cooked evenly, while the automatic paddle ensures precision cooking for recipes such as stews, risottos and sauces. By removing the paddle, recipes like cakes, pies, pizza and quiche can be perfected. For further inspiration download the De’Longhi ‘Recipe Book’ from the App Store or on Google Play.

For more information visit multifry.delonghi.com or contact 1800 126 659.

MultiCuisine FH1396 shown in image.

BASIC FH1100

CLASSIC FH1163

EXTRA CHEF FH1394

MULTICUISINE FH1396

AR BENCHTOP

TRENDS

Brands ride the diversity and multi-use wave The ever-growing impact of reality cooking shows on the consumer psyche is a powerful driver of benchtop appliance sales.

This factor, along with the key trends of multi-use and simplicity are making cash registers sing in 2016.

BY CLAIRE MOFFAT

T

he powerful uptake of Thermo technology continues to pay off for players within the benchtop appliance space, with Groupe SEB experiencing strong sales from the Tefal Cuisine Companion.

“Cooking food processors have taken the traditional food preparation category to the next level,” according to senior brand manager, Bettina Ortega del Rio, who explained that changes in consumer trends have deeply influenced this category.

“Consumers are looking for timesaving solutions. They are nesting at

40

Appliance Retailer June / July 2016

home and saving, while also being health conscious with their cooking and their lifestyle. Due to these trends, Tefal has diversified its range and now offers convenient and versatile products.”

Meanwhile, it was just a matter of time before the march of globalisation arrived into the Australian kitchen and according to De’Longhi, the trend of cultural diversity now needs to be seriously considered by retailers when ranging benchtop appliances.

“No country has such a diverse range of cultures, and an appliance that can replicate the culinary experiences that people want to have at home is vital in this market,” De’Longhi category manager Jessica Hull explained.

“For example, our MultiFry range is designed to cater to a wide variety of

Bettina Ortega del Rio – Tefal.

Jessica Hull – De’Longhi.

cooking methods and recipes, not just low oil frying but grilling, baking, and roasting as well,” she said.

Hull also described De’Longhi’s progress in meeting the positive trend in table top grilling, with its range that suits a variety of cooking methods, including the contact grill and electric barbecue grill.

De’Longhi has also conducted a local consumer study of its low-oil fryer range with strong results which echoes the company’s global research activity.

“More importantly, we gained an overall satisfaction rate of 94%, with 75% of respondents saying they would continue to use the product. The most popular recipe category was cakes, followed by meats and then potatoes, which shows the importance of product versatility,” she said.

Sunbeam head of product marketing, Tim Anderson reaffi rmed the role of benchtop cooking as both a staple heritage category and focus for Sunbeam, which is in the process of being fully acquired by Jarden Consumer Solutions (JCS).

Tim Anderson – Sunbeam.

“Sunbeam continues to grow the market and slow cookers are the key growth driver, especially in mass retail accounts. As the trend for home cooked meals continues, cooking products are playing a key role and Sunbeam is continuing to drive growth in frypans, benchtop ovens and woks,” he said According to Anderson, consumer preference is the major factor impacting this trend.

“Now more than ever, consumers are shopping for a meal solution rather than a specific product. This has led to blurred lines between sub-categories and the opportunity for some really innovative product solutions such as the PE6100 Aviva Pressure Cooker which provides six cooking functions in one appliance,” he added.

Anderson said that as a result of Sunbeam products meeting this trend, sales are up across all states. “This cements the national nature of the trend where people are preparing more meals at home.”

Morphy Richards product and marketing coordinator, small appliances, Stacey Pogorecki agreed that consumers are now opting for simple units. She also noted that food and recipe trends mean that more consumers are using slow cookers.

Stacey Pogorecki – Morphy Richards.

“In the most recent slow cooking tests conducted by Choice, participants were after units that were easy-to-use and performed well on low and high settings without drying out the food. Our Sear & Stew (48705) was recommended. All of our models are manual which makes them simple to use, plus we offer a range of sizes and different pot types,” she said.

According to Pogorecki, slow cookers are versatile and Morphy Richards has developed an e-book that includes recipes for breakfast, lunch, dinner and dessert.

Victoria is the company’s best performing state for slow cookers.

“This could be due to the cold winters, however we are educating all states that slow cookers can be used year-round,” she added.

Belinda Toner – Panasonic.

Consumers are interested in appliances which are functional, versatile and user friendly, according to Panasonic product marketing manager of home appliances and whitegoods, Belinda Toner.

“Recent research by Roy Morgan has revealed the seasonal eating habits of

“Consumers are trading up to smarter appliances which may cost more initially but save time and money in the long run,” Spectrum Brands product manager home appliances, Chris Nedelkos.

Chris Nedelkos – Spectrum Brands.

Spectrum Brands product manager home appliances, Chris Nedelkos explained that cooking this winter is all about three things: aesthetics, automation and application.

• Aesthetics: Brushed stainless steel fi nishes which suit any benchtop, are long wearing and are easy to clean.

• Automation: Optimised programs for ‘set-and-forget’ cooking allow timepoor consumers to multi-task while the family’s meal is cooking.

• Application: Flexibility is key – appliances must be able to perform a range of functions offering ongoing value to the consumer.

Nedelkos confi rmed that market data revealed the multi-cooker category had volume growth of 40% and value of 45% in the past year. “This means that consumers are trading up to smarter appliances which may cost more initially but save valuable time and money in the long run.”

Australians, and unsurprisingly winter sees a large increase in the popularity of soups. This insight offers retailers a great opportunity to inform consumers on the latest cooking appliances,” she said.

Panasonic’s latest rice cooker extends beyond just rice with the ability to cook soups, porridges and curries. It also offers ten different menu options that cover a range of rice varieties including jasmine, brown and sticky rice.

Jessica Dinh – Maxim.

Maxim product and marketing coordinator Jessica Dinh, explained that benchtop appliances are “becoming more convenient to use, making the traditional way of cooking an easier process for serving those tasty dishes on the table.”

“It just comes down to retailers helping the customer choose the right appliance, one that will deliver those delicious meals, save money and cut down on cooking and cleaning time,” she said. AR www.applianceretailer.com.au

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AR BENCHTOP

RESULTS AND RANGES

If it’s slow and sears, it’s a winner

BY CLAIRE MOFFAT

Sunbeam Slow Cooker.

De’Longhi MultiCuisine.

D

e’Longhi continues to work towards increased innovation by designing products that incorporate additional functions, according to category manager Jessica Hull. “We expect this strategy will make our products a ‘must have’ on any kitchen benchtop,” she said.

De’Longhi recently launched the MultiCuisine FH1396 (RRP $549) which meets the demand for intelligent kitchen products by combining the benefits of a low-oil fryer and a multi cooker. The MultiCuisine can grill, fry, roast and bake more than 350 recipes, while the automatic mixing paddle can be removed to make a variety of dishes, from healthier fried foods, grilled meats and fish, to pastas, pastries and cakes.

Additionally, De’Longhi’s use of the Surround Heating System combines upper and lower elements together with the fan for hot air distribution. The result is an unlimited number of recipes, as the product design enables it to be used as a flat pan with automatic stirring, or even with the new grill function.

“The MultiCuisine eliminates the need to buy multiple appliances and cook with numerous pots and pans,” Hull explained.

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Appliance Retailer June / July 2016

Kambrook Soup Maker.

Groupe SEB has hit the mark with two hero appliances this winter, the Tefal Cuisine Companion and the Cook4Me. Senior brand manager Claudia D’Ambra described the Cuisine Companion (RRP $1,699) as an “allin-one, kitchen wonder machine” that creates dishes at the touch of a button.

The cooking-capable food processor replaces up to ten appliances in the kitchen and is perfect for chopping, whipping, mixing, kneading, cooking, steaming, blending, stirring, emulsifying, whisking, searing, crushing, milling and precise heating.

“The Tefal Cook4Me (RRP $349.95) meets the strong convenience trend and guides the cook to create delicious meals quickly and easily. There are over 85 inbuilt recipes accessed on the easy-touse digital control panel and the recipes include a step-by-step guide using six or less ingredients,” D’Ambra explained.

The meals are cooked quickly due to pressure cook functionality delivering two, four or six servings with ingredient quantities automatically adjusted.

Sunbeam’s Anderson explained that the SecretChef 5.5L Sear and Slow Cooker HP8555 (RRP $169) sears meat and slow cooks in the same vessel without a stovetop, and meets the ‘multi’ purpose trend.

“It is true one pot cooking combining a frypan and a slow cooker,” he said.

The company has also launched the Quick Start Digital Oven BT7100 (RRP $199) which Anderson described as, “the most intuitive benchtop oven we have ever launched. The temperature and time has been pre-selected for seven of Australia’s most popular foods to create the best cooking results”.

As part of the Kambrook One Pot Wonder range, the Soup Simple Soup Maker KBL600 RRP $99.95 combines food preparation and cooking in one appliance to create smooth or chunky soup in under 30 minutes.

The versatile Soup Simple Soup Maker can also prepare desserts and, using the blend or pulse setting, create smoothies and cocktails. Its durable design features stainless steel blades, an easy pour spout, cool touch handles, concealed element and a touch control panel,” Kambrook senior category manager Nancy Humphreys explained.

Meanwhile, Spectrum Brands product manager home appliances, Chris Nedelkos said research revealed that pizza remains the most popular takeaway and make-at-home cooked meal.

“However,” he advised, “Australians are getting more adventurous in their tastes. The Russell Hobbs 5 Minute Pizza and Snack Oven comes with pizza dough and other snack recipes which make the pizzas easy to prepare and quick to cook,” Nedelkos said.

“Our Searing Slow Cooker RHSC650 (RRP $99.95) allows the pot to be taken to the stove, the ingredients seared and then the pot placed back in the slow cooking unit without having to transfer food between pot and pan.

The Express Chef Plus Multi Cooker RHPC2000 (RRP $129.95) is also “more than a multi cooker because it sears, steams and cooks under pressure,” according to Nedelkos. The Express Chef Plus Multi Cooker has 14 preprogrammed functions including steam, slow cook, meat, fish and rice.

“The inner bowl has a CeramiCook ceramic coating which is longer lasting than regular non-stick coatings and

Tefal Cook4Me.

“The MultiCuisine eliminates the need to buy multiple appliances and cook with numerous pots and pans,” Jessica Hull – De’Longhi.

Russell Hobbs Multi Cooker.

allows the consumer to utilise metal utensils before and after the cooking process without scratching the bowl’s surface,” he added.

Spectrum Brands product manager, Liana Calandra pointed to the George Foreman range which she said, continued to lead the grills category. “The brand encompasses all the healthy living features consumers love about George Foreman, including fat reducing sloped plate designs, drip tray to catch oils and fats, George Tough Pro non-stick coating and compact storage,” she said.

Panasonic’s Intelligent bread maker SD-2501 (RRP $269) goes beyond just making the bread, to also making jams and compotes. The unit includes a large capacity automatic raisin and nut dispenser along with the option of three different crust colours and loaf sizes.

ProAppliances national sales manager, Matthew Kiley is ranging two premium benchtop appliances, the Sous Vide Pro and the ThermoPro to meet the dual trends of healthy living and time saving.

The Sous Vide Pro heats up a water bath to set cooking temperature in around 15 minutes, which Kiley said is “significantly faster than any domestic sous vide on the market”. The built-in water pump ensures even cooking, unlike other sous vide appliances which only rely on a base heating element.

According to Kiley, the ThermoPro was designed for the quick-easy preparation of healthy food. “It offers the function of over ten appliances in one compact, portable and easy to use unit,” he said.

According to Maxim product and marketing co-ordinator, Jessica Dinh, since Maxim merged with GAF Control in mid-2015, the company’s kitchen range has expanded.

“We are always looking for innovative designs and benchtop appliances are becoming more convenient to use, making the traditional way of cooking an easier process for serving those tasty dishes,” Dinh explained.

The Maxim Kitchenpro 6.5L Slow Cooker, NSC-650 (RRP $39.95) has a stainless steel outer body, 6.5L capacity and cooks enough for a family of four.

The tempered glass lid enables the cooking to be seen as it progresses, while the cool touch handles and ‘cook and serve’ removable ceramic crockpot delivers warm soups and casseroles. AR

Morphy Richards Slow Cooker. www.applianceretailer.com.au

43

AR BENCHTOP

De’Longhi MultiCuisine (FH1396)

An innovative cooking appliance combining the benefits of a low-oil fryer and multi cooker. This versatile bench top tool can grill, fry, roast and bake more than 350 recipes, helping users produce exceptional results and save time.

 Unique Surround Heating System with upper and lower elements  Cook with or without the paddle, or with the new grill rack  Free recipe app available with over 350 recipe ideas  Digital control panel

RRP: $549

De’Longhi: 1800 126 659

PRODUCT GALLERY

BY EMILY BENCIC

Kambrook Soup Simple Soup Maker (KBL600)

Tefal Cook4Me

The soup maker combines food preparation and cooking in one appliance to create no-fuss soup. Simply add the raw ingredients, choose the ‘Smooth’ or ‘Chunky’ setting and the soup is ready to serve in just 30 minutes.  1.6 litre capacity  Easy pour spout and cool touch handles  Touch digital control panel  Chunky, Smooth, Blend and Pulse settings

RRP: $99.95

Kambrook: 1300 139 798

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Appliance Retailer June / July 2016

The Tefal Cook4Me provides users with access to over 85 inbuilt recipes on its digital control panel. The recipes include a step-by-step guide using six or less ingredients.

 The pressure cook functionality means 65% of meals can be cooked in under 12 minutes  Cooks two, four or six servings with ingredient quantities automatically adjusted  Cooks by itself for the right amount of time and switches to keep warm when ready  Automatic (hands free) steam pressure release

RRP:

$349.95

Groupe Seb: (02) 9748 7944

Russell Hobbs Express Chef Plus Multi Cooker (RHPC2000)  Three levels of pressure: low, medium, high  Scratch-resistant ceramic coating  1000 watt heating element  Adjustable timer with automatic Keep Warm function

RRP: $129.95

Spectrum Brands: 1800 623 118 With 14 pre-programmed functions including steam, slow cook, meat, fish and rice, it performs the work of several appliances, and faster. The sauté function allows users to brown ingredients straight in the bowl, eliminating extra pots and pans.

Morphy Richards 6.5L Sear & Stew Slow Cooker (48705)    

Cool touch handles Dishwasher safe lid and pot 290 watt power Non-slip feet

RRP: $79.95

Morphy Richards: 1300 556 816

This slow cooker boasts three settings, a brushed stainless steel finish and aluminium searing pot in a lightweight and durable design. Users can monitor their cooking through the transparent glass lid. It also comes with a two-year warranty.

PRODUCT GALLERY

Sunbeam SecretChef Electronic Sear & Slow Cooker  Sears meats and slow cooks in the same vessel  True one pot cooking  Serves six to eight people  Electronic for fast heat up, accurate temperature control and even heat

It can be used as a frypan or a slow cooker. The slow cooker has a 5.5L capacity with high, low and auto keep warm settings.

RRP: $169

Sunbeam: 1300 881 861 www.applianceretailer.com.au

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AR BENCHTOP

FROM THE FLOOR

IN-STORE EXPERTS deliver extensive knowledge

BY KYMBERLY MARTIN

The Good Guys Alexandria proprietor Brian Fox, serves a dense customer population in the vibrant inner city Sydney suburb. Find out why he believes the benchtop appliance category will continue to grow in 2016.

F

ox has identified growth in slow cookers, pressure cookers and low oil air fryers, trends he believes are driven by health conscious consumers.

“Benchtop ovens have also become popular for preparing smaller dishes, as they consume less power than a traditional built-in oven. Some benchtop oven models have fast-heat properties that reduce the overall cooking time,” he said.

Fox added that the recent introduction of the KitchenAid range to the shopfloor will also be an exciting addition for his customers.

The Good Guys Brian Fox.

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Appliance Retailer June / July 2016

Meanwhile, he points to rustic style cooking trends, influenced by reality TV cooking shows which have driven demand for pressure cookers and slow cookers to create recipes such as pulled pork sliders, tacos and lamb shanks.

“The benefits for the customer of these electric pressure cookers is their time saving features which also exhibit similar cooking properties to a slow cooker,” he added.

Fox has also pointed to the positive effect of the impressive technology that enables connected devices such as a smartphone or tablet to work as the interface in controlling kitchen appliances.

When asked about his ‘pick of the crop’ from the present range of benchtop appliances these brands made the list: • Philips Viva all-in-one cooker with slow cook and pressure cook functions which can also be used to prepare rice, soups and yoghurts.

• Russell Hobbs RHSC650 slow cooker which features a removable pot that enables meat to be seared on the cooktop before returning to the slow cooker. Fox said that digital controls add a modern touch.

• Sunbeam BT5350 benchtop oven enables baking, roasting, toasting and grilling “with all the functions of a conventional oven and the convenience of benchtop use.”

As customer behaviour continues to evolve, Fox said that within the portable appliances category, customers usually take the ROBO approach: Research Online, Buy Offl ine.

“In saying that, our customers value our extensive knowledge in this category and often look to our in-store experts to help them make their fi nal decision,” he concluded. AR

DE’LONGHI

De’Longhi supported the recent Mother’s Day sales period with a national TVC program. Meanwhile, a national demonstration program and consumer cash back offer was also supported instore while creating awareness around the product through a PR media experience.

PROMOTIONS

Leading small appliance brands invest in marketing initiatives SUNBEAM

Sunbeam says that it will continue developing engaging, industry-leading social media content. This will highlight the benefits and versatility of its benchtop appliances with campaigns such as “#nowyouknow” and “A week in the life of…”

KAMBROOK

Kambrook is releasing a Soup Simple Soup recipe e-book. Available in time for winter, the new recipe e-book is designed to encourage consumers to try different recipes and features 30 ideas to tempt even the fussiest of taste buds.

Small appliance brands have moved beyond instore execution to support their latest products and encourage retail sales. This month, they are participating in a range of promotional activities from TV ads and cash back promotions, to recipe e-books and social media engagement.

BY CLAIRE MOFFAT

GROUPE SEB

To support the Tefal Cook4Me, Tefal has invested $1.5 million into long form TV ads. These will be seen across both Free To Air TV and Foxtel, digital along with in-store executions with product demonstrations and new POS displays.

MORPHY RICHARDS

A variety of promotions to celebrate Morphy Richards 80th birthday are now being run around the full product range. A slow cooker e-book has been developed and will be promoted on Morphy Richards social media pages. www.applianceretailer.com.au

47

AR NEW GADGETS

Uniden iGO Cam 755 This dash cam offers exceptional image quality and features for daily commuting and long road trips. It has Full HD resolution 2.7 inch LCD colour display, Lane Assist and a built-in G-sensor and Collision Detection Mode.

RRP: $229.95 Uniden: 1300 366 895

Sony RX10 III Camera Sony’s newest addition to its Cyber-shot lineup features a 25 times super-telephoto zoom lens with an extensive focal range of 24-600mm. It is equipped with a 1.0 type stacked 20.1MP Exmor RS CMOS sensor and powerful BIONZ X image processor.

RRP: $2,299 Sony: 1300 137 669

BeoPlay A1 This ultra-portable Bluetooth speaker has a built-in microphone for voice control. It boasts a sleek shape and design to be played on almost any surface. It also features omni-directional sound technology and up to 24 hours of battery life.

RRP: $379 Bang & Olufsen: 02 9238 9444

Urbanears Hellas Team Headphones The comfortable, cushioned ear pieces and headband of the headphones absorb moisture more effectively. Bluetooth connectivity enables users to enjoy up to 14 hours of wireless playback before recharging. A built-in touch interface also lets users answer mobile phone calls and resume listening.

RRP: $179 Amber Technology: 1800 251 367 48

Appliance Retailer June / July 2016

Brother Monochrome Laser Printer HL-L5100DN Brother’s printers fit easily into retail environments, built around a modular design that can be adapted to changing user requirements.

Features include up to 40ppm print speeds, user-friendly LCD screen, high yield toner at up to 8,000 pages, and wired network connectivity.

RRP: $299 Brother: 1300 885 989

NEW APPLIANCES AR

Dimplex Q-Rad Panel Heater

he Dimplex Q-Rad is a slim, stylish and intelligent panel heater that utilises advanced technology to give users complete control with maximum flexibility in heating. It combines radiant and convection heating elements with a self-learning adaptive control system. It also has a seven-year warranty.

T

RRP: From $699.95

Dimplex: 1300 556 816

NEW APPLIANCES Dyson Cinetic Big Ball Vacuum Cleaner Homedics Duo Pro

he most advanced allin-one hair removal and beauty system on the market, featuring both Intense Pulse Light (IPL) and Freeglide technology to offer two treatments for skin in the one, compact device. It prevents regrowth of hair and reduces fine surface lines.

T

he barrel vacuum uses selfrighting technology when it topples over. The hygienic dirt ejector has a silicone collar that slides down as the bin is emptied.

The wand’s handle rotates in three directions for easier, versatile cleaning and there are no filters to wash or replace.

T

RRP: From $699

Dyson Australia: 1800 239 766

RRP: $549

Homedics: 03 8756 6500

www.applianceretailer.com.au

49

AR NEW APPLIANCES

LG French Four-Door Fridge (GP-5D906BSL)

Smeg Victoria Built-In Oven

he collection builds on Smeg’s original freestanding Victoria models and comprises 60cm single and double ovens, with the option of pyrolytic cleaning, plus 45cm high compact models and warming drawers. The flagship SFPA6925 oven boasts 16 cooking functions and 20 SmartSense menus.

T

ey features of LG’s new refrigerator include a world-first triple filtration ice and water dispenser, fingerprint-resistant stainless steel finish, new measured fill function, inverter linear compressor with 10 year parts warranty, as well as smart diagnosis.

K

RRP: From $3,290

RRP: $6,699

Smeg: 02 8667 4888

LG: 1300 542 273

Lightair Air Purifiers

wedish company, Lightair, has introduced a range of air purifiers with no moving parts, filters or fans. It delivers a silent, effective and power efficient solution for any space. Ion Flow 50 technology removes the smallest air particles.

S

RRP: From $599

Achieva Technology Australia: 02 9742 7800

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Appliance Retailer June / July 2016

COMPANY INDEX AR COMPANY

PAGE #

2nds World ......................................................................................................................................22 Achieva Technology .........................................................................................................................50 Amber Technology ...........................................................................................................................48 Andi-Co ............................................................................................................................................33 Australian Retailers Association ......................................................................................................34 Bang & Olufsen................................................................................................................................48 Bestlink International......................................................................................................................17 Betta Home Living ...........................................................................................................................25 Big W ................................................................................................................................................16 Black & White Engineering Solutions.............................................................................................33 Braun......................................................................................................................................... 12, 37 Breville .........................................................................................................................................9, 31 Brother .............................................................................................................................................48 Camera House .................................................................................................................................14 Canon ...............................................................................................................................................34 Cleanstar ............................................................................................................................. 26, 49, 50 Conair ........................................................................................................................................ 37, 38 David Jones .....................................................................................................................................16 De’Longhi......................................................................................................... 25, 39, 40. 42, 44, 47 Dick Smith..........................................................................................................................................7 Dimplex............................................................................................................................................49 Dyson ........................................................................................................................................ 27, 49 Electrolux .........................................................................................................................................22 Emilia Glem .....................................................................................................................................14 Eurolinx ............................................................................................................................................30 Every Battery ......................................................................................................................................7 Fitzone Solutions ...................................................................................................................... 37, 38 Fujitsu General ......................................................................................................................... 15, 30 GAF ...................................................................................................................................... 14, 41, 43 GfK....................................................................................................................................................23 Groupe Seb .................................................................................................... OFC, 22, 40, 42, 45, 47 Homedics .........................................................................................................................................49 JB Hi Fi ...............................................................................................................................................5 Jura ........................................................................................................................................... 18, 34 Kambrook ........................................................................................................................... 42, 44, 47 Kleenmaid .......................................................................................................................................35 Kogan .................................................................................................................................................6 Leading Edge ...............................................................................................................................7, 26 LG ........................................................................................................................................ 18, 28, 50 Mann & Noble..................................................................................................................... 36, 37, 38 Microsoft ..........................................................................................................................................12 Miele ................................................................................................................................................31 Mitac Australia (Navman) ................................................................................................................29 Morphy Richards ................................................................................................................ 41, 45, 47 Myer .................................................................................................................................................14 Neff...................................................................................................................................................19 Nespresso ........................................................................................................................................32 Nestle ...............................................................................................................................................11 Panasonic ............................................................................................................................ 31, 41, 43 Philips ................................................................................................................................. 36, 37, 38 Pro Appliances .................................................................................................................................43 Remington .......................................................................................................................................37 Sampford IXL ...................................................................................................................................37 Samsung ..........................................................................................................................................18 Seeley International ........................................................................................................................14 Sharp ...............................................................................................................................................IFC Shaver Shop .......................................................................................................................................6 Shriro............................................................................................................................................9, 14 Smeg ......................................................................................................................................... 24, 50 Spectrum Brands ....................................................................................................30, 36, 41, 43, 44 Speed Queen ...................................................................................................................................35 Sony .................................................................................................................................................48 Sub-Zero .............................................................................................................................................9 Sunbeam.................................................................................................................12, 41, 42, 45, 47 TCL ....................................................................................................................................................19 Teac............................................................................................................................................ 10, 13 The Good Guys ..................................................................................................................... 5, 14, 46 The Winning Group .................................................................................................................. 14, 25 Uniden ....................................................................................................................29, 37, 38, 48, 52 V-Zug ................................................................................................................................................19 Vitamix .............................................................................................................................................32 WilliamsWarn ..................................................................................................................................10 Whitfords .........................................................................................................................................27 Woolworths......................................................................................................................................16 Yamaha ............................................................................................................................................27

READERSHIP GROUPS

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www.applianceretailer.com.au

51

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