28
TV & HOME ENTERTAINMENT As the vital fourth quarter sales season approaches, George Cole looks at the big drivers in an exciting TV and Home Entertainment sector TOWN & APARTMENT LIVING It’s all about style, function, efficiency, use of space and value for money as demanding 21st century consumers look for the best they can get in kitchen appliances to suit today’s lifestyles GEORGE COLE GETS CONNECTED Is the BBC looking to tap the added revenue possibilities of computer- based catch-up services; and what’s next for Blu-ray? George Cole investigates GROWTH FROM KNOWLEDGE GfK presents the facts & figures on how the “green revolution” is impacting on the UK kitchen appliances market FROM THE BENCH Consumers’ brand loyalty is a thing of the past, argues Alan Bennett THE MAGAZINE OF THE ELECTRICAL INDUSTRY AUGUST 2010 www.gcmagazine.co.uk

Get Connected: August 2010

Embed Size (px)

DESCRIPTION

Get Connected: The Magazine of the Electrical Industry

Citation preview

Page 1: Get Connected: August 2010

TV & HOME ENTERTAINMENTAs the vital fourth quarter sales season approaches, George Cole looks at the big drivers in an exciting TV and Home Entertainment sector

TOWN & APARTMENT LIVINGIt’s all about style, function, effi ciency, use of space and value for money as demanding 21st century consumers look for the best they can get in kitchen appliances to suit today’s lifestyles

GEORGE COLE GETS CONNECTEDIs the BBC looking to tap the added revenue possibilities of computer-based catch-up services; and what’s next for Blu-ray? George Cole investigates

GROWTH FROM KNOWLEDGEGfK presents the facts & fi gures on how the “green revolution” is impacting on the UK kitchen appliances market

FROM THE BENCHConsumers’ brand loyalty is a thing of the past, argues Alan Bennett

T H E M A G A Z I N E O F T H E E L E C T R I C A L I N D U S T R Y

A U G U S T 2 0 1 0w w w . g c m a g a z i n e . c o . u k

Page 2: Get Connected: August 2010

Coming soon to an HMV or good independent retailer near you

PURE PRESENTS ‘IT’S BACK! PURE EVOKE-1S MARSHALL’ MUSIC BY LIVING DEAD COSTUME DESIGNER GIRLS ASHROUD EDITED BY SWEENEY TODD PRODUCTION DESIGNER ECTO PLASMCASTING BY BODY COUNT EXECUTIVE PRODUCER GRIM REAPER PRODUCED BY DEVIL’S SPAWN WRITTEN & DIRECTED BY BEELZEBUB

Coming soon to an HMV or good independent retailer near you

BROUGHT TO YOU BY

www.pure.com/marshall

Full page ad Get connected 23/7/10 15:13 Page 1

Page 3: Get Connected: August 2010

CONTENTS

3

GET

CO

NN

ECTE

D

AU

G 2

010

Get ConnectedGreyfriar CottageWinchester RoadChawtonAltonHampshire

GU34 1SB

www.gcmagazine.co.uk

Editor in Chief: Marlinda Conway Telephone: 01420 [email protected]

Magazine Advertising Sales:Telephone: 01420 [email protected]

Creative Director: Will [email protected]

Advertisement Production Administration: Will Dobson Telephone: 01342 850 [email protected]

Editorial & Publishing Director: Terry HeathTelephone: 01420 [email protected]

Subscriptions & Circulation: GCCD, 13 Premier AvenueGrays, EssexRM16 2SB.Telephone: 07818 088671Fax: 01375 [email protected]

Annual subscription rate (inc. postage): UK £88; Overseas £108.

Production and Print: Sparta Press, Blackfen, Kent.www.spartapress.co.uk

Copyright © 2010 Mud Hut Publishing Ltd. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior permission of the publisher. Get Connected is published by Mud Hut Publishing Ltd., Alresford House, 60 West Street, Farnham, Surrey GU9 7EH.

04 / / / / / / / / / / / / / / / / / / / Editorial comment

06 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / The Word In and around the industry

11 / / / / / / / / / / / / / / / / / / / / / / / / / / Ask Yer Man Amica’s Simon Freear answers retailers’

questions about this growing brand

12 / / / / / / / / / / / / / / / / / The Product Gallery

14 / / / / / / George Cole Gets Connected

15 / / / / / / / / / TV & Home Entertainment Style and substance in this vibrant sector

18 / / / / / / / / / / Town & Apartment Living Major domestic appliances for

the 21st century lifestyle

23 / / / / / / / / / / / Growth from Knowledge GfK’s take on the eco-friendly dimension

24 / / / / / / / / / / / / / / / / / / / / / / From the Bench Alan Bennett says brand loyalty is fading

25 / / / / / / / / / / / / / / / / / / / / The D&G Column Jeff Griffi ths on training to win with D&G

26 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / BackchatIndustry comment and a 2-minute interview with

Samsung Home Appliances’ Andrew Jones

VITA AUDIO R1 MKII DAB/FM RADIO P13www.vitaaudio.com

Page 4: Get Connected: August 2010

EDITORIAL COMMENT

4

GET

CO

NN

ECTE

D

AU

G 2

010

Although it’s still summer (notwithstanding the changeable weather), that “changing seasons” feel is beginning to bring an autumn atmosphere to the trade as the “back to school” ads appear

on TV and retailers and manufacturers focus on the vital season ahead.Not quite yet the time to start mentioning the “C” word, but, in trade terms,

it won’t be long until the countdown of shopping days begins and we start to see the tinsel and cards coming up front on our high streets.

The shift into autumn for Mother Nature means that the abundant production of the harvest period is followed by a shut-down in preparation for winter. Plants – and some animals – will go into dormancy to conserve energy and survive until next spring. In the electrical industry, the opposite happens, as the year’s rich abundance of electrical appliances has to be sold during this vital season, and manufacturers and retailers enter a period of peak activity that will last from September through to January. For many manufacturers and retailers, the year’s biggest harvest is still to be gathered, and now is the time.

The bad news for this season is that it is very hard to call. With infl ation above target, falling real incomes, anxiety about the coming eff ects of the Government’s defi cit-reducing programme and general nervousness about the underlying employment fi gures, can the UK consumer be persuaded to go for it in traditional seasonal fashion this year?

The good news is that, as seasons go, 2010/2011 has an exceptionally rich array of electrical products to entice every kind of customer from early adopters to more traditional but no less demanding shoppers.

In home entertainment (see feature page 15 of this issue), the UK consumer’s love aff air with TV and all its off shoots and developments has every reason to remain intense and passionate. From superb new LCD fl at panels, through the continuing growth of HD, Blu-ray and now the advent of 3D in the home, to the enticements of a connected, on-demand, internet enabled future with the TV at its heart, there is plenty for consumers to get excited about.

Digital imaging – both still and video – has taken some giant leaps forward, and compact, micro system, DSLR and digital camcorder devices off er a range of advanced features and performance undreamed of just a few years ago. It may also be that this is the year for e-readers to fulfi l their promise, as gifts that are both high-tech and encourage reading. DAB radio, the subject of intense scrutiny over the past few months (see Get Connected Editorial Comment July 2010), has a massive market to go for, and it’s up to the industry to convince consumers that if they’re going to buy a radio, it has to be DAB.

The Major Appliances market, perhaps a little less seasonally aff ected, has also delivered what is probably the most outstanding off ering of style, sophisticated function and value for money that we’ve seen in many years. Induction, with its clean, modern lines, energy effi ciency and performance benefi ts, is edging its way into the conservative UK cooking world. And for those still not ready to take the plunge, gas and electric hobs now come in a choice of modern styles and fi nishes that allow householders to make that all-important “statement.” It’s also interesting to see how strongly the white goods industry has responded to changing social conditions in the UK, and producing style, compactness and high function to fi t the new 21st century and is a way of life (see feature page 18 of this issue).

Bricks-and-mortar retailers may be under pressure from the internet, as well as from the increased competition from the likes of Best Buy and a Currys that has considerably upped its game, and nobody knows yet which way the consumer will jump: will it be a “go for it” or a cautious season. But with VAT due to go up in January, this could be a reasonable last quarter?

¹ register online at www.gcmagazine.co.uk for your FREE copy of Get Connected Magazine

Average net circulation for the 12 issues distributed between Jan-Dec 2008 is 6,228

Marlinda Conway Editor in Chief

Terry HeathEditorial & Publishing

Director

George ColeConsumer Electronics

Consultant

Top CatThe Voice of The

Manufacturer

Lynne HenryCommunications Offi cer,

GfK Marketing Services

James McIntoshConsultant Home

Economist

Will DobsonCreative Director

Page 5: Get Connected: August 2010

Available across LED, LCD and Plasma TV platforms, with conversion from 2D to 3D using our stylish and lightweight 3D Active Glasses.

Pair it up with the world’s first 3D Blu-ray player* the BD-C5900 to create a richer 3D home entertainment environment.*Correct as of March 2010

A NEW DIMENSION IN TV HAS ARRIVED

samsung.com/uk/tv

MEDIA SIGN OFF

FILENAME BG0241_3dTV_NewDimBD-C5900Trade_v1 Creative Director Account Client

BLU-RAY PLAYER BD-C5900 ARTWORK PRO 100%

ORIGINATION 10/03/10 TRIM/TYPE 297 x 210mm Copywriter Art Director Typographer

PROOF DATE 6 August 2010 1:11 PM BLEED 3mm

Page 6: Get Connected: August 2010

THE WORD | INDUSTRY NEWS

6

GET

CO

NN

ECTE

D

AU

G 2

010

Electrolux buys Merloni’s Ukrainian plant for €19 millionElectrolux has signed an agreement to acquire the Ivano-Frankivsk washing machine factory from Antonio Merloni S.p.A. for €19 million.

Ownership of The facility, which employs 150 people, is intended to strengthen Electrolux’s presence in the region and will function as a part of the fi rm’s supply base for markets in Central and Eastern Europe.

Hans Stråberg, President and CEO of Electrolux, said: “By broadening our manufacturing base in the

emerging markets of Eastern Europe we will increase our competitiveness and be able to supply CIS markets from within the CIS area.”

Ukraine participates in the free trade framework within the Commonwealth of Independent States (CIS), which includes Russia, Kazakhstan, Armenia, Azerbaijan and a number of other countries.

Closing of the deal is expected to take place in the fi rst quarter of 2011 and is subject to approval by competition authorities.

Gorenje acquires Asko Appliances Group from MerloniSlovenian manufacturer Gorenje has concluded a contract for the acquisition of premium Swedish MDA provider Asko Appliances Group. The purchase price has not been revealed.

Asko produces dishwashers, washing machines and tumble dryers in Vara, Sweden and cookers, ovens and ironing systems in Lahti, Finland. The brand also has a niche range of professional products for the semi-commercial market.

Gorenje already has a foothold in the Swedish market and is “realising its strategy as a fast-growing pan-European player.” The acquisition of Asko, which was formerly owned by Italy’s Antonio Merloni Group, will give the company further access to the Nordic countries and to North American and Australian markets. Gorenje said the move gains it “another prestigious brand for the group.”

Loewe chief resigns after World Cup business falls below expectationsLoewe CEO Frieder C. Löhrer has resigned after sales associated with the World Cup fell short of expectations. The company posted an EBIT loss of EUR 4.9 million in the second quarter of 2010 compared to a positive EUR 0.7 million in the same period last year (see ‘Company Financials’ section for further details).

Loewe reported that higher procurement costs and price adjustments were compounded by problems with suppliers, which prevented the launch of the new Individual TV family in to key European markets until the World Cup had already started.

Frieder Löhrer said: “We did not accomplish everything we had planned in recent months. In particular, the business associated with the FIFA World Cup in South Africa fell short of our expectations. I accept personal responsibility for this and have requested the Supervisory Board to accept my resignation with immediate eff ect.”

BSH Customer Service wins 2010 TEQ AwardBSH Customer Service has won the D&G Total Excellence and Quality (TEQ) Award for the second year running. 95.2% of the 420,000 customers surveyed by D&G rated BSH as “excellent or good” in the category of white goods manufacturers.

BSH Customer Service made several enhancements to its operation to retain the Award this year. Colin Embling, Contact Centre Operations Manager, said: “The past year has seen signifi cant investment in contact centre training programmes and this has produced more knowledgeable advisors who are now even better equipped to help the customer over the phone and avoid unnecessary engineer visits.”

”This is good news for our customers, but it is also very reassuring for our dealers,” commented BSH Customer Service Director Bernhard Vocke (pictured). “When they sell a Bosch, Siemens, Gaggenau or Neff appliance, they can be confi dent that their customer will receive the best customer service in the industry.”

See www.gcmagazine.co.uk for the stories behind the news…

Fall in consumer credit refl ects economic uncertainty, says FLAConsumers take ‘wait and see’ approach to long-term commitments  

Consumer con� dence dents UK sales growth in July (BRC)Non-food sector hit particularly hard

July high street sales exceed expectations (CBI)Survey predicts strong growth will continue into August

UK unemployment down againBiggest drop in three years for the three months to June

UK jobs under pressure later this yearPrivate sector has to take up the slack

King says return to economic “normality” a long way offBank of England’s 2011 growth forecast cut from 3.4% to around 3%

Page 7: Get Connected: August 2010

08706060601www.bcgxl.co.uk/bigtour2010

Register your interest today forthe industry event of the year

STARNAMESTHE BIGGEST

BRANDS

VIPBENEFITS

HUGEREWARDS

ENTRY ISFREE

The only place to be seen this year is at the ‘A-List’ Big Tour 2010, featuring the biggestnames in kitchens and bathrooms. Over 30 of the top manufacturers will be inattendance at an exclusive venue near you to give you incredible deals and helpfuladvice. With free entry, refreshments and amazing Airmiles prizes to be won, you’ll begiven the 5-star treatment all the way.

The UK’s only touring kitchen& bathroom exhibition is biggerand better than ever before

EXCLUSIVEDEALSFANTASTICOFFERS

TOURDATES Opening times 10am-8pm

Scotland Hampden Park 4th Nov

Birmingham National Motor Cycle Museum 10th Nov

Manchester MUFC, Old Trafford 12th Nov

Bristol University of the West of England Conference Centre 16th Nov

London Mercedes-Benz World, Weybridge 18th Nov

FREE ENTRY INTOTHE MUSEUM

EARLY BOOKINGS QUALIFYFOR STADIUM TOURS*

EARLY BOOKINGS QUALIFYFOR STADIUM TOURS*

*Stadium tour availability strictly on a first come first served basis

BC100734 Stars Get Connected Ad 297x210mm:Layout 1 23/7/10 10:14 Page 1

Page 8: Get Connected: August 2010

THE WORD | INDUSTRY NEWS

8

GET

CO

NN

ECTE

D

AU

G 2

010

PURE and Marshall do it againAt a launch event at the Marshall Amplifi cation factory on 28 July, PURE and Marshall presented a new and improved version of the multi-award winning EVOKE Marshall digital radio, the EVOKE-1S Marshall.

The EVOKE-1S Marshall is wrapped in black vinyl, recreating the iconic look of a Marshall amp, with solid wood construction, brass-eff ect control panel and a black metallic speaker grille. It has an integrated full range hi-fi speaker and is equipped to provide a natural

‘direct-from-the-studio’ sound. An optional, matching S-1 standalone speaker enables stereo output and richer, deeper bass.

New features include ChargePAK compatibility; an OLED display with light sensor; more station presets (30 digital radio or FM); auxiliary input and FM with RDS. PURE’s textSCAN™ and Intellitext® have also been added. A USB connector enables software updates via the Internet. And, in true rock style, the volume pot still goes up to 11.

Paul Marshall of Marshall Amplifi cation said: “Working with PURE we’ve created a digital radio that brings iconic Marshall design to an equally iconic radio that all listeners can embrace as a stylish statement of their love for music.”

With a SRP of £119.99, the EVOKE-1S Marshall will be available at independent retailers from September, following initial exclusive availability at specialist music retailer HMV during August.

High retail margins off ered on “unique” wall mounts for LED TVs US wall mount brand LEVELMOUNT is to launch a new range of products designed specifi cally for LED TVs onto the UK market. The fi rm is off ering high retail margins with competitive retail prices, 24/7/365 European customer technical support, lifetime warranties and £1000/£2500 insurance protection plans.

See full article on www.gcmagazine.co.uk or contact 01379 871820 for further information: www.levelmount.co.uk

‘The vital ingredient’ supports Hotpoint cooking range Hotpoint has launched a major advertising and PR campaign to promote its new cooking range. ‘The vital ingredient’, which features the Openspace built-in oven and Ultima freestanding cooker, will appear in weekend supplements and selected consumer magazines until the end of year.

The campaign will be backed by online advertising and TV sponsorship. A full suite of POS and promotional support is available to accompany in-store displays.

Indies come head-to-head in BBG-Peerless 2010 Cricket Cup � nalHughes-Apollo were crowned champions of this year’s BBG-Peerless Cricket Cup, having pitted a mixed team from the two retailing brands [Apollo was acquired by Hughes early last year] against Shasonic, in what BBG described as a “hard-fought” � nal. More than 160 competitors and spectators representing independent electrical retailers attended the annual event.

Andrew Lillywhite, former Logistics

Director at Waterline, has been

appointed Commercial and Operations

Director at kitchen, bathroom and

heating distributor BCG.

Gorenje Commercial Manager Neilan

Scrooby has been appointed to the new

role of Regional Sales Manager, South.

Global operating company D&M Holdings

Inc. has announced the appointment

of Jamie McKay, former Commercial

Manager for Denon UK, to General

Manager of Denon’s pan-European

headphones operations. He will also take

on the role of General Manager for Boston

Acoustics UK.

Hoover Candy has appointed Sharon

Hamer as Sales Director responsible for

independent regional sales in the UK and

Northern Ireland.

Whirlpool’s chest freezer (model AFG

070 NF E-AP) has been awarded a Best

Buy in Which? Magazine’s Best Buy

Freezers Test Lab report, July 2010. The

product achieved a best in category test

score of 72%.

Manufacturer of energy saving and

charging accessories Energenie has

appointed AVSL Group Ltd as its UK

distributor. The partnership will bring

the Energenie brand to key independent

retailers throughout the UK.

Siemens’ top-of-the-range coffee

machine, model EQ7, obtained top marks

in a consumer testing feature on Channel

5’s Gadget Show to take 1st place ahead

of appliances from Gaggia and Magimix.

Whirlpool has created an ‘Interface Disc’

that allows any type of metal saucepan

measuring 22cm to 28cm in diameter to

be used on an induction hob, removing

the need for consumers to buy induction-

compatible pots and pans. Whirlpool

Brand Marketing Manager Juliana Sado

said the accessory should “overcome any

niggles at the point of sale.”

The AEG-Electrolux Ergorapido was

rated category winner in a performance

test conducted by the independent

German test institute SLG. The appliance

gained 78 points, putting it ahead of the

Bosch Move and Rowenta Air Force,

which came second and third in the test.

Bosch has created an eye-catching point-

of-sale item for independent retailers

selling the eco-friendly Logixx 8

VarioPerfect™ washing machine

with EcoSilence™ Drive. The display

incorporates a digital photo frame that

runs a demonstration of the features and

bene� ts of the product and is available

free of charge via Bosch area managers.

Siemens has launched a free 5-year

warranty on selected built-in appliances

in a major new promotion running

until January 2011. A minimum of � ve

qualifying products must be purchased

from participating dealers if consumers

are to become eligible for the scheme.

Page 9: Get Connected: August 2010

THE WORD | INDUSTRY NEWS

9

GET

CO

NN

ECTE

D

AU

G 2

010

Apple’s net income for the three months

to 26 June 2010 climbed to $3.25 billion,

compared to $1.83 billion for the same

quarter last year. Revenues, at $17.7

billion, exceeded analysts’ forecasts of

$14.75 billion. 3.47 million Macs were

sold during the quarter, a new 3-month

record and 33% up on the same period

last year. iPhone sales grew 61% to 8.4

million units, and the iPad, which was

released at retail during the quarter,

achieved total sales of 3.27 million units.

BSkyB posted a pre-tax profi t of £1,173

million for the year to the end of June

2010 on revenues of £5,912 million.

The company said that 90,000 new

subscribers were added in the fourth

quarter, taking the overall total to 9.86

million, 30% of which take HD.

Carphone Warehouse Group (CW) said it

is confi dent of meeting full-year

expectations following better than

expected Q1 results. CW Europe reported

like-for-like revenues up 3.7%, largely

due to strong sales of smartphones.

Connections were down by 1.1% due to a

reduction in sales of lower value pre-

pay phones.

Electrolux posted a 56% rise in net

income to 1.03 billion kronor ($140

million) for the second quarter of 2010.

Sales during the period fell 0.6% to 27.31

billion kronor. President and CEO Hans

Stråberg said the business was “on track

and presenting a record Q2 result…. 2010

could be the year we approach our goal of

an operating margin of 6% with continued

improved capital effi ciency.”

Indesit Company posted net profi ts of

€11.5 million in the 2nd quarter of 2010

against losses of €8 million in the same

period last year. Revenues rose 9.6% to

€672 million in the three months to 30

June. Operating margin increased to €29

million, up 105.2% on the €14.1m posted

in Q2 2009.

LG Electronics reported a net profi t of

856.4 million won for the three months

to the end of June 2010, some 33% down

on net profi t of 1.28 billion won for the

corresponding period in 2009. Revenue

for the three months was down slightly

at 14.4 trillion won. Asian fi nancial

commentators say that failure to keep

pace in the burgeoning smartphone

market was largely responsible for the

drop in profi ts.

Loewe posted an EBIT loss of EUR 4.9

million in the second quarter of 2010,

compared to a positive EUR 0.7 million

in the same period last year, on sales of

EUR 74.0 million – a slight rise of 4% on

Q2 2009. In the fi rst six months of 2010,

Group sales increased by a moderate

3% to EUR 147.4 million. EBIT for the

fi rst half amounted to a loss of EUR 4.1

million, down from positive EUR 1.4

million in H1 2009.

Panasonic Corporation revised its half-

and full-year forecasts upwards after

improved performances in all divisions

led to Q1 consolidated group sales rising

35% to 2,161.1 billion yen. Operating

profi t, pre-tax income and net income

received a signifi cant boost, rising from

losses of 20.2 billion yen, 51.8 billion

yen and 53.0 billion yen last year to 83.8

billion yen, 84.3 billion yen and 43.7

billion yen respectively.

Philips reported an upturn in profi ts for

the three months to June 2010, with sales

up 12% to €6.2 billion “led by double-

digit growth at Lighting and Consumer

Lifestyle.” The Consumer Lifestyle division

includes Philips’ TV and other consumer

electronics products. Net profi t was €262

million for the quarter, compared to €45

million for the same period last year.

Samsung Electronics posted a record

quarterly net profi t to June 2010 of

£4.28 trillion Won (£2.3 billion), up a

massive 83% on the same period last

year, but said the future outlook for

consumer electronics means the high

profi ts are unlikely to be sustained.

While year-on-year operating profi ts

in the semiconductor division were up

765%, telecommunications suffered a 36%

fall, and operating profi ts in the digital

media division, which includes TV and

household appliances, were down by 69%.

Sharp recorded net sales of 741.6 billion

yen for the three months ended 30 June, a

rise of 24.0% on the same period last year.

Operating income improved from a loss of

26.0 billion yen to a positive 22.5 billion,

while net income, at 10.6 billion yen,

recovered from a loss of 25.2 billion.

Sony Corporation reported sales up 3.8%

year-on-year to 1,661.0 billion yen

(18,663 million US dollars) for the fi rst

quarter ended 30 June 2010. An operating

income of 67.0 billion yen for the quarter

was in sharp contrast to losses of 25.7

billion a year ago. Income before taxes

swung from a loss of 32.9 billion yen to

78.9 billion.

Whirlpool Corporation recorded Q2 net

earnings up 163% to $205 million,

compared to $78 million during the same

period in 2009. Sales increased 9% to $4.5

billion and operating profi t rose from

$134 million to $331 million.

Summer’s three “Ws” are winners for e-commerce According to e-retail body IMRG Capgemini, “www” spelt a record June for online sales. Purchases rose by 20% on the same month in 2009 to £4.4 billion, boosted by the combination of “the World Cup, Wimbledon and the weather.” This was the second consecutive month that year-on-

year growth has been above 20% – such high rates haven’t been recorded by the e-Retail Sales Index since June 2008.

Online sales of electrical goods rose 26% compared to June 2009 and gained 3% on May 2010. The report also highlighted that June 2010 was a particularly strong month

for multi-channel retailers, who enjoyed year-on-year growth of 27%. IMRG said the rise suggests high street retailers are recognising the “overwhelming benefi ts” of a strong online off ering.

Read the full article at www.gcmagazine.co.uk

Page 10: Get Connected: August 2010

THE WORD | INDUSTRY NEWS

10

GET

CO

NN

ECTE

D

AU

G 2

010

Family-run TV and Video Direct branches out in Bury

TV and Video Direct, a leading family-run independent electrical retail business in the North West, has expanded its existing portfolio of retail, commercial and Internet businesses to include an outlet in the The Rock, a new development in Bury. The � rst customers through the door were greeted with champagne by operations director Matt Brown (second from right) and retail manager David Evans (far right).

PURE in full fl ow…PURE has launched a cloud-based music service that allows users to tag tracks on digital, FM or Internet radio stations and buy them direct from PURE radios with inbuilt Flow technology. The new service, dubbed FlowSongs, will be available in the UK as a beta, ahead of an international roll-out later this year.

As the fi rst of a range of new services coming to PURE’s Internet-connected digital radios, Colin Crawford, director of marketing, said FlowSongs will open up “signifi cant additional sales opportunities and attract a whole new customer base.”

The service allows unlimited tagging of tracks via a 90-day trial period and annual online subscription of £2.99. Tracks cost between 79p and £1.29 and can be streamed from any compatible PURE radio for downloading.

“You hear it, like it and now you can buy it,” commented Will Page, chief economist at PRS for Music. “It’s a truly remarkable step forward in the digital convergence story as well,” he added.

Marc Newson designs for SmegA new collection of cooking products in fi nishes ranging from black and white to bright shades of blue, yellow and green has been designed by Marc Newson for Smeg.

The Australian-born originator, renowned for his penchant for smooth, free-fl owing lines and transparency, has imposed his stamp on this new range

of ovens and hobs by creating soft lines and user-friendly features.

According to Smeg, the design was driven by the search for “maximum clarity, with immediately understandable symbols and simple commands.” And as an alternative to intuitive electronic displays with large and clear graphics, Newson ovens are also available with distinctive silver control knobs for those that prefer a more traditional method of operation.

A range of 75cm gas hobs with silver controls comes in enamel fi nishes of blue, yellow, green, white or black, or in stainless steel. Alternatively, two models are available in a silky-matte eff ect black or white glass and complemented by gold control knobs.

The Marc Newson collection also comprises induction hobs ranging from 30cm to 90cm wide with serigraphy in a choice of grey, gold or red brick. The 90cm-wide hob is also available in a ribbon version (35cm deep) with 3 in-line induction zones.

Products are exclusive to John Lewis for the month of September and will be released to selected retail partners from October onwards.

See www.gcmagazine.co.uk for the stories behind the news…

Project Canvas presses on with invitation to manufacturers

Next step goes ahead despite Virgin Media complaint against Canvas

ITV con� rms move into pay-TV HD digital channels will be

introduced to Sky+HD in autumn

Sky Sports 1 and 2 to be broadcast via Freeview

Sky and Top Up TV agree a deal with digital terrestrial broadcaster

BSkyB reaches agreement on proposed sale of Easynet Global Services

B2B telecoms operation to be sold to LDC for £100 million

Roberts teams up with Absolute Radio to push DAB salesRoberts Radio has created specially branded radios for Absolute Radio to help promote DAB to the network’s listeners. On-air promotions will run across all of Absolute Radio’s stations, targeting peak-time audiences of breakfast and home-time shows. A selection of the promotions will also be supported in national newspapers and magazines.

DSGi backs iPad as best-selling Christmas gadget DSGi has forecast the iPad to be the most popular of the 5,000 products on its shelves this Christmas. Revealing a list of the ten “big technologies” for the festive season this year, the retailer said its buyers are backing “a variety of exciting new products.”

Microsoft’s Kinect for XBox 360, described as the “biggest step forward in game play since the Wii”, is tipped to be the second biggest seller of the season, and a move towards 3D is also predicted as the technology works its way across diff erent product sectors.

“By December, 25% of the TVs at DSGi’s PC World and Currys stores will be 3D, and with Sky planning the launch of its 3D channel along with numerous movie titles due for release in the format, demand is expected to be high,” the retailer said. “More 3D cameras will also arrive this winter and there will be more titles for the PS3, which already has 3D capability.”

Page 11: Get Connected: August 2010

ASK YER MAN

11

GET

CO

NN

ECTE

D

AU

G 2

010

Amica has been establishing strong brand credentials in the UK, and Simon Freear, country manager in the UK, answers some of the questions that UK retailers have been asking about the brand and its background

SIMON FREEAR, COUNTRY MANAGER FOR AMICA IN THE UK

Simon Freear_

Amica promotes its guarantee strongly to the trade. How does that work for retailers, and what is behind it in terms of product quality, brand values and backup service?Amica has a long history in the design and manufacture of household appliances. Its original factories in Wronki, Poland, began producing appliances in 1957. The Amica brand was introduced in 1992 and is now well established as the fi rst choice in Poland, renowned for a range of reliable products with attractive designs and an outstanding combination of features and quality. Amica has won numerous prizes and awards over the years, including Product of the Year and The Most Trusted Brand; and it has been ranked the tenth most valuable Polish brand and the seventh most innovative Polish company. Amica appliances have proved extremely popular across the world, and there are now subsidiary offi ces in many other countries.

Every individual appliance is thoroughly tested before it leaves our factories to ensure consistently high levels of quality and consumers, retailers and distributors can be confi dent in Amica products - each one supported with an excellent after-sales care service and backed up by a full, two year guarantee for parts and labour, which is a great sales tool and extremely valuable for consumers, particularly in the more recent economic climate.

Amica also promotes the technology and innovation of its products. What do you think are the most important developments from Amica that customers really see as a benefi t and retailers can really sell?Amica is a leader in technological innovation. Our products provide a wide variety of exceptionally saleable features and options to suit a range of lifestyles and requirements. All of our products are rated A or above for energy effi ciency and incorporate some of the very latest technology.

Self-cleaning is something to watch over the coming months. Reports show an increase in the sales of self-cleaning ovens for reasons of convenience, and the function will become more necessary on washing machines as thermostats are turned to even lower temperatures for washing. Our Scandium ovens are a real contender for the top spot in self-cleaning ovens, with the unique Aqualytic system being up to 90% more energy effi cient than its pyrolytic counterparts taking just 30 minutes for a clean oven chamber using no detergents, scrubbing or intense heat. Amica’s brand new 7kg AWM712 and 714D washing machines cater for low temperature washing with 15 programmes including a self-clean cycle - which uses high temperature sterilisation to limit the build-up of bacteria, mould, dirt and odours in the drum and the tank, which will shorten the lifetime of any machine – particularly useful when washing regularly at low temperatures.

Amica’s brand new Inari induction hob is a breakthrough in contemporary design. Also technologically advanced and highly fl exible with an impressive maximum power output, Inari is the fi rst to connect four heating zones of 210mm on a 60cm hob. There is a timer and a Booster for each zone - two can be used at the same time - and the Virtual Booster allows more eff ective shared power of the heating zones, even if one is using the Booster function. Inari is an open zone – it will detect the presence of a pan anywhere on its surface, and the Bridge function allows two heating zones to be used as one. These are all in addition to the usual benefi ts of induction, giving retailers a list of compelling, highly saleable features.

White goods have really developed in design and user-friendliness over the last ten years or so, and are now better value than they’ve ever been. What do you see as the most important recent innovations, and what’s in the pipeline to keep the momentum going into 2011 and beyond?The good news for consumers is that appliances have become more attractive, they are more functional than ever before, and they have also become more aff ordable with the wider availability of advanced technology. All of our washing machines now have Auto Sensors, which automatically match the levels of water and energy required to the weight and type of each wash load to save resources, and self-cleaning washing machines will become a must with

the ongoing trend towards washing at low temperatures. Induction is less limited by price than before and is becoming even more technically advanced - as demonstrated with Inari. The European trend of banking appliances will continue to emerge in modern property developments and new kitchen installations and will become more commonplace with the wider availability of other built-in products, such as coff ee makers and microwaves. With the ongoing trend for open plan living and feature kitchens, there is also a rising demand for space-saving, statement and coordinated appliances. In October, Amica will launch a brand new built-in range, which will include Amica’s fi rst combination steam oven and also built-in microwave to come to the UK.

If you had to name three things that make Amica a good brand to stock for retailers, what would they be?First: reliability. Our full two year guarantee for parts and labour is a refl ection of the confi dence we have in our products, which are durable, practical and above all reliable. Reliability is extremely important for everyone – retailers need to trust in the products they stock and consumers are reassured to know they are buying quality appliances that will last for years.

Second: decent profi t margins.

Third: the Amica product range, from attractive basic models to gorgeous, high-tech, fl exible and innovative showcase pieces, giving retailers the opportunity to suitably match appliances to buyers. Our product catalogue off ers appliances to suit every household with a variety of options, features and functions to make everyone’s life easier and produce fabulous results whilst also preserving valuable resources.

Page 12: Get Connected: August 2010

12

GET

CO

NN

ECTE

D

AU

G 2

010

Philips MCI900 Streamium Hi-Fi with SoundSphere technology The Philips Streamium MCI900 hi-fi system with SoundSphere technology incorporates an integrated CD/DVD player, streaming capability and Internet radio in a two-box system with integrated 3.5” colour screen that displays album art and track info. The system features a high-quality class ‘D’ digital amplifi er (50W per channel) partnered with high-grade 24-bit DAC for “class-leading” signal to noise ratio. Estimated retail price £999.

� 802.11n Wi-Fi and Ethernet connectivity

� 160GB USB hard drive

� HDMI output

� Remote control

Sebo Felix Pet vacuum cleaner with ‘Disco’ attachmentSebo’s Felix Pet upright vacuum cleaner off ers a solution for polishing a range of hard fl ooring using a versatile attachment suitable for virtually all surfaces, including PVC, natural stone, wood and varnish. Long-term use of the Disco polisher with a fl oor maintenance product is said to build up a strong, protective coating and seal scratches that would otherwise harbour dirt and moisture.

� S-Class fi ltration system

� British Allergy Foundation Seal of Approval

� Adjustable handle with suction power regulation

� Swivel neck

� 2-metre hose

01494 465 533 www.sebo.co.uk

Whirlpool iXelium stainless steel gas hobsWhirlpool has added an anti-aging iXelium stainless steel fi nish to its collection of gas hobs. The easy-clean coating acts as a barrier to preserve the quality and natural shine of the metal, preventing surface stains and yellowing and reducing the signs of marks, scratches, temperature discolouration and corrosion. Model ref: AKT 725/IXL is a 750mm built-in unit featuring:

� Five burners: 2 x 1.65kW, 2 x 1kW, 1 x 3kW, 1 x 3.7kW four-crown wok burner

� Ergonomically positioned front controls

� 3 x robust cast-iron pan supports fi nished in matt black

Siemens Gigaset SL400A cordless handsetThe new Siemens Gigaset SL400A cordless handset is the brand’s smallest hands-free model to date. It features a large, colour display with illumination, simple keypad buttons and high defi nition voice quality on hands-free settings. The Unit is part of Gigaset’s ECO-DECT range, which uses 60% less energy than conventional power supplies. An ECO Mode on the base reduces transmission power by 80% and moderates the amount of power used in accordance with the distance between the handset and base station.

� Talk time: up to 14 hours

� Standby time: up to 230 hours

� Phonebook: up to 500 names, numbers, e-mails and anniversary reminders

� Answer machine: up to 45 minutes recording time

� Outdoor range: up to 300 metres; indoor range: up to 50 metres0845 367 0812

www.gigaset.com/uk

0208 649 5000www.whirlpool.co.uk

01293 773128www.philips.co.uk

Page 13: Get Connected: August 2010

Samsung condenser tumble dryersSamsung’s fi rst range of condenser dryers for the UK market feature the same design as the brand’s AIR Refresh washing machines and share many of the same benefi ts. The 7kg and 8kg machines incorporate ‘diamond drum’ technology, which creates air pockets that cushion the laundry for optimum fabric care, and paddles that lift items higher during drying so they remain in the warm air longer during each rotation. Flagship model SDC18809 has a glass door that gives a clear view of laundry as it dries.

� Full graphic user-friendly LED display

� Sensor drying

� 29-minute quick-dry program; ‘Delay end’ setting

� Certifi ed Wool Mark

� “My cycle” remembers regularly used settings

� Reversible door; internal light

01932 455000 www.samsung.com/uk

THE PRODUCT GALLERY

13

GET

CO

NN

ECTE

D

AU

G 2

010

Fagor iF-64R frameless 4-zone induction hobThis 60cm induction hob from the Fagor 2010 collection has a frameless design that will work well in contemporary kitchens in which the trend is for an uninterrupted, streamlined work surface. The four-zone appliance has digital touch controls for each cooking zone and nine precise power levels.

� Zone sizes: front right 18 cm (2.3 kW), front left 21 cm (2.3 kW), back right 18 cm (2.8 kW), back left 18 cm (2.0 kW)

� Timer from 1 to 99 minutes on each zone

� Seven safety features

� 5-year guarantee

01256 308 067 www.fagor.co.uk

Baumatic P632BS multi-function built-in ovenThe latest addition to Baumatic’s family of BlackLine cooking appliances is the P632BS, an A-rated multi-function oven fi nished in black steel with a mirrored glass door. The 60cm appliance comes complete with two baking trays, a trivet and pizza stone and has removable side racks and roof liner, two safety shelves and telescopic runners.

� Net oven capacity 50 litres

� 9 cooking functions

� LED programmer

Vita Audio R1 MkII DAB/FM radioVita Audio has introduced the R1 Mk11, an enhanced successor to the original R1. The new model has an optional ‘BackPack’ which provides power for wireless

listening and a carry case produced from hand-stitched leather to protect

the unit and aid portability. The Mk11 is available in Rich Walnut veneer or high-gloss lacquer fi nishes in Dream White and Midnight Black.

� DAB, DAB+ and FM Tuner with RDS

� Switchable auxiliary input for MP3 and other audio devices; stereo headphone output

� 9 watts nominal power output; 3.5“ high-fi delity drive unit

� Exclusive RotoDial control with soft illumination

� High contrast display with large format clock

� 10 station presets and extensive range of clock & alarm functions

01702 601410www.vitaaudio.com

� Wipe-clean enamel cavity

� Triple-glazed removable door

0118 933 6900 www.baumatic.co.uk

Page 14: Get Connected: August 2010

�George Cole pinpoints hotspots in the world of consumer electronics.E-mail: [email protected]

PAY FOR USING BBC iPLAYER?As the government looks for ways of

plugging the vast hole in the

country’s � nances, all kinds of

cost-cutting and revenue-raising schemes

are being considered. Now, culture secretary

Jeremy Hunt has � own a kite, and raised

the possibility of computer users being

charged for watching catch-up services like

BBC player. The argument goes that while

TV viewers have to pay £145 annually for a

television licence, those watching TV on the

net are getting it for free.

The TV licensing rules are a little

confusing, and it’s very easy to fall foul

of them when using a computer to watch

television. If you use your PC to watch live

television, then you need a TV licence. Ditto,

if your computer has a TV tuner card. But

if you only use your computer for watching

catch-up services, then you don’t need a

licence. However, Hunt has suggested that

this situation could change. But how could

charging for catch-up TV be implemented?

The � rst thing to say is that despite the

rise of PCs, broadband and catch-up TV

services, most of us still use a television

for watching programmes - around 97%

of them are watched this way. What’s more,

despite the rise of PVRs, DVD recorders

and catch-up services, about 95% of us still

watch scheduled television services – in

other words, we watch programmes at the

time they are broadcast. But there are huge

variations within these � gures. For example,

40% of students watch live television on

laptops in their halls of residence.

But how could viewers be charged

for using catch-up services? Well, Hunt

has rightly ruled out a universal PC tax,

so perhaps services like the player could

be made subscription or pay-per-view

offerings? It’s possible, but the picture

gets confused because freesat HD TVs

(and HD set-top boxes) can access player

programmes, so if I’ve already paid my TV

licence fee, why should I have to pay extra?

And the BBC, ITV, Channel 4 and others are

keen to launch Project Canvas, which would

blur the lines between the internet, catch-up

services and subscription-free TV services

like freesat and Freeview.

Although many of us now regularly

shop online and even use micropayment

services like iTunes to purchase individual

music tracks, online payment systems can

still sometimes be a pain to use and it can

be an even bigger pain to get recompense

when things go wrong. BBC player is a

fantastic resource and part of the reason is

its ease of use: you log onto the site, select

your programme and then watch or listen.

Placing an additional barrier in front of this,

in the form of some kind of payment system,

would ruin a superb service. But since

when has this consideration ever stopped a

politician from meddling?

BLU-RAY GETS BIGGERSharp is the � rst company to launch a new generation of Blu-ray discs and

players in Japan, which conform to the

Blu-ray BDXL format. Standard Blu-ray

discs store up to 25GB (single layer)

or 50GB (double layer). The BDXL

standard makes it possible to produce

multi-layer discs that store up to 100GB

on a rewritable disc or 128GB on a

write-once disc. Next year, Verbatim

will be launching a triple layer Blu-ray

disc that stores up to 100GB. Sharp

says a pack of ten BDXL discs will

cost the Japanese equivalent of £60.

Little wonder that BDXL is being aimed

at commercial enterprises such as

archiving and medical imaging.

BDXL is an interesting development,

but don’t expect it to make a great

impact on the Blu-ray consumer

market. Leaving aside its high price,

the biggest snag is that BDXL discs will

not play on standard Blu-ray players,

recorders or drives. Because of this,

movie companies are not likely to use

it - well, at least not until BDXL players

are mass market products. It used to

be said that when large capacity discs

became available, � lm companies

would scrap boxed sets and put a

complete TV or movie series onto just

one or two discs. But it never happened,

not least because consumers think they

are getting more for their money if the

content they buy is spread over a set

of discs, rather than on one single disc,

however large it is.

GEORGE COLE GETS CONNECTED

14

GET

CO

NN

ECTE

D

AU

G 2

010

George Cole Cole

George ColeGeorge ColeGeorge

Page 15: Get Connected: August 2010

TV & HOME ENTERTAINMENT

15

GET

CO

NN

ECTE

D

AU

G 2

010

A s the busy fourth quarter sales season arrives, it’s worth looking at what are set to become the biggest drivers in the

television and home entertainment market. This is the time when broadcasters launch their new season of programmes, and a slew of blockbuster Blu-ray and DVD titles are released, so it’s little wonder that the TV remains at the heart of home entertainment. So what will attract this year’s TV and Home Entertainment buyers?

“The main drivers for TV are relatively consistent in terms of picture quality, sound quality, design and overall viewing experience,” says Joni Shakles, Philips’ TV marketing manager. LED is now playing a signifi cant role in allowing very slim form factors, she adds, while full screen local dimming LED technology has dramatically boosted contrast and black levels.

A taste for HDFor Steve Gater, LG’s head of marketing, the World Cup gave viewers their fi rst taste of subscription-free, high defi nition TV on terrestrial television. Over half of LG’s 2010 TV range is equipped with Freeview HD. “Almost a third of our TV sales in June were Freeview HD TVs, so there is clear demand,” he says. Within the LCD TV market, the key drivers have been the super-slim form factor, visible picture quality improvements and

the availability of free to air HD content, says Tom Monetto, Sharp’s Aquos product manager. With LED technology (and particularly Edge LED), TVs have taken a step forward in aesthetic design, showing off some of the thinnest profi les yet. “Our Quattron TV off ers contemporary design with a super slim bezel. In terms of picture quality, 100Hz and 200Hz are more readily available on TVs, key to improving the handling of fast moving action on any content. LED technology has also allowed for brighter images.”

Graham North, Humax’s commercial director, thinks that the main drivers for sales of freesat and Freeview products lie in two main areas. “Firstly, the consumer is waking up to the fact they can receive quality HD content without the need to subscribe to a service,” he says. “Secondly, the consumer is moving

away from old recording technology such as VCRs and VHS, and switching in high numbers to digital television recorders [DTRs]. Sales of DTR products, such as the new Humax HDR-FOX T2, should increase, now Freeview+ HD is on the market, and this will become the main route for any consumer to record their favourite HD and SD content free-to-air.”

3D in the mixNo discussion about TV would be complete without mentioning 3D. “The availability of 3D-ready TV has certainly been a key highlight so far this year,” says

Slim, smart and well connected

The UK consumer’s love aff air with all things TV can only intensify as the home entertainment sector continues to fascinate us with new, exciting and irresistible attractions. George Cole looks at this season’s new faces and established stars

PHILIPS: “VERY SLIM FORM FACTORS AND DRAMATICALLY

BOOSTED CONTRAST AND BLACK LEVELS”

21ST CEN

TURY STYLE A

ND

PERFORM

AN

CE

Page 16: Get Connected: August 2010

LG’s Gater. “Looking towards the rest of this year, consumer interest and uptake of 3D TV is expected to continue to build, with the rise in 3D content – in particular the Sky 3D channel due to launch in autumn.” At the IFA show, Sharp will unveil its fi rst Quattron 3D TV. Sharp has developed the world-fi rst four primary colour 3D LCD, and plans to off er 46- and 60-inch Quattron 3D models this Christmas. Philips’ Shakles says: “There’s no doubt that 3D will be a major feature of Q4, and Philips will have 3D-ready TVs across its higher end models.”

Getting connectedConnected TVs, providing internet access and compatibility between numerous electronic devices in the home, will also continue to drive sales, says Gater, as they off er consumers more compelling content. A large range of LG’s TVs off er LG’s NetCast Entertainment, which enables viewers to access popular online services - including Picassa and YouTube - from the comfort of their sofa.

“Internet connectivity is becoming more important, with consumers increasingly aware of the potential to use their TV as a media portal,” adds Shakles, “and Philips will continue to promote its NetTV feature which will now be available on three of our TV ranges and off ers viewers open access to the whole of the web.” Humax will be launching new internet TV features on its latest Freeview HD range – the HD-FOX T2 zapper and HDR-FOX T2 digital TV recorder. This will include popular catch-up services and Sky Player. North says Humax will continue to focus on Freeview and freesat HD digital TV recorders, but will be expanding this to include a whole range of internet TV services too. “We will be working closely with our partners in the internet TV arena to ensure we deliver strong messaging to the consumer about the value of catch-up services and how to access them. Humax will also be running promotional off ers where possible to aid our key retailer partners in maximising sales,” he adds.

Blu-ray prices coming downWhen it comes to Blu-ray sales, price will continue to be the main driver. “The cost is coming down for both hardware and discs,” says Grace Liang, Sharp’s AV product manager. Wieger Deknatel, Philips’ Blu-ray marketing manager, adds that “the main drivers on Blu-ray have been outstanding value for money, with a top quality product from major brands available for around £130, a continual stream of new features and the availability of software – with the top movie titles launching simultaneously on Blu-ray and DVD.” Deknatel also notes that new features have included: the ongoing development of BD Live; wireless connectivity; internet connectivity; and that in Q4, we are likely to see a wide number of products off ering 3D playback. Philips plans to launch the new 7000 and 8000 series Blu-ray players, which will be 3D-ready and will include the company’s NET TV system for open internet connectivity – including video-on-demand for the BDP8000.

James Forrester, Sony’s category marketing manager, says: “Entry Blu-ray players will continue to be the key volume driving models, particularly as the Blu-ray market becomes increasingly mass market. However, the key development will be in higher range product with real added value benefi ts. For example, 3D Playback will stand out for a lot of consumers with 3DTVs.” Sony is running a promotion through Q4, “Perfect Partners,” which is a package saving for the best matched Blu-ray player or home theatre system and a Bravia TV. “Not only does the consumer get a saving, but they get a recommendation from a Sony retailer, without having to do the research themselves,” adds Forrester.

Liang says Sharp will be launching a 3D Blu-Ray player in October, which will off er a slim design and the possibility of being set up either horizontally or vertically. LG’s Blu-ray players and Blu-ray home cinema systems do much more than just play Blu-ray discs and DVDs, says Gater. LG’s 3D BX580 Blu-ray player and HB965TZ 5.1 home cinema system can wirelessly stream information and content from other compatible devices in the home via DLNA (Digital Living Network Alliance) connection. Many of LG’s Blu-ray products are also equipped with wireless technology to access a number of popular internet applications, such as YouTube via LG’s Netcast Entertainment.

Mounting demandFlat display sets not only look slim and stylish, but they can be wall-mounted or placed on many types of stands. “In terms of mounts, there are two main reasons why consumers want to have their screen up on the wall – the clean aesthetics of having the screen ‘fl oating’

and the added functionality that a good quality bracket can provide,” says Paul Dawes, director of marketing, BBG-Peerless. With the new ultra thin LED screens, consumers are getting even closer to having a screen that hangs on the wall like a picture. Peerless’ Slimline range includes a fully articulating fl at panel mount that is just 28mm from the wall, but can extend up to 730mm to give full 90 degrees swivel left and right, even with the largest screen. “In the UK, the wall mount market has grown to 1.3 million units per annum, according to GFK,” notes Jeremy Lanaway, Vogel’s’ trade marketing manager, “This is driven by consumers’ desire to save space in their homes by eliminating unnecessary bulky furniture, proven by the fact that wall mount volumes are almost overtaking sales of regular stands and furniture.” But Lanaway says many independents are missing out on sales. “Of the 1.3million sales, 892,000 were sold through mass merchants and only 118,000 wall mounts were sold in independent retailers. When aligned with TV sales, only one wall mount was sold for every twenty TVs.” He adds that since wall mounts yield a substantial value attachment to a Flat TV with high profi tability, they can supplement those less than amicable margins from Flat TV.

“A combination of new AV technology coming to market and households purchasing larger screens has created a need for stands to become ever more discreet with a lower viewing position,” says Chris Emerson, Alphason’s chief operating offi cer. Alphason’s off erings include two stylish Vantage stands designed exclusively for the new ultra slim TVs. the VAN840/2-BR-PB for use with LED TVs up to 50 inches in size, and the VAN720/2-PB for TVs up to 47 inches.

“In terms of furniture the drivers are very much the same, in that for most consumers the decision comes down to a combination of functionality and aesthetics,” says Dawes. “Ample storage space for AV equipment (DVD players, set-top boxes, games consoles etc), an eff ective cable management system and toughened safety glass shelves are all basic requirements for a TV support, while high gloss black and natural wood fi nishes to match the screen or domestic décor are the styles of choice for most consumers.” Peerless-BBG has high expectations for its Stabilis safety kit, which clamps a large fl at panel screen to a stand or furniture, in order to prevent it from being pulled or pushed over in the home. The product is quick and easy to install and is universal for screens from 32- to 60-inches, with height adjustment and swivel facility.

TV & HOME ENTERTAINMENT

16

GET

CO

NN

ECTE

D

AU

G 2

010

SOPHISTICATED MOUNTS HAVE FREED THE TV TO GO ANYWHERE

HUMAX: SUBSCRIPTIONFREE QUALITY HD CONTENT AND RECORDING

LG: “CLEAR DEMAND FOR FREEVIEW HDTV”

Page 17: Get Connected: August 2010
Page 18: Get Connected: August 2010

AN ELEGANT BANK OF APPLIANCES FROM THE NEFF COLLECTION

TOWN & APARTMENT LIVING

18

GET

CO

NN

ECTE

D

AU

G 2

010

As the UK develops, cities are spreading into the suburbs, and apartment buildings and narrow town houses designed to stimulate aspirations of idealistic lifestyles

have sprung up on the banks of urban and rural waterways and become notable fi xtures in neighbourhoods throughout the land.

While opinions may vary on this modern-day turn in domestic architecture, the underlying reasons for it are perceptible. Locations off ering good commuter routes to major towns and cities are becoming more crowded – in turn, the demand for homes in these areas is high; single occupancy is growing and families are contracting in size; and for those developing land in desirable environments, making the best of building vertically as opposed to expanding horizontally provides, to coin a phrase, ‘more bang for the buck’.

The upside of this is: more bang for the builder’s buck translates into more bang for the appliance supplier’s buck. The number of cooking, cooling, dishwashing and laundry products sold into any single household is not infi nite, but the opportunity exists to supply products into six apartments (for example) as opposed to one house. And many new apartment blocks are labelled as ‘luxury dwellings’, which suggests that appliances sold into them should certainly carry an element of good design and quality and, with this, a higher retail margin.

A developing nationAccording to De Dietrich, in 2001 the UK census recorded 20% of people living in a fl at or apartment. By the time the next census comes around, in 2011, Richard Walker, Sales and Marketing Director for the De Dietrich & Fagor brands, believes we can “confi dently predict” this statistic will rise to around 30%, given the vast amount of urban regeneration in towns and cities throughout the past ten years.

Simon Freear, country manager for Amica UK, quotes national statistics that show how the population’s living arrangements have evolved over the years: “The number of households in Great Britain increased by 34% between 1971 and 2008 while the average number of occupants fell from 2.9 people to 2.4 in the same period, refl ecting an ongoing trend towards smaller households. Of the 25 million households in Great Britain in 2008, 64% were occupied by just one or two people – 14% more than in 1971.”

Freear also refers to a survey conducted last year by Cabe, the Commission for Architecture and the Built Environment, which revealed that fl oor areas and room sizes in the UK are the smallest in Europe and our new builds are less than half the size of those in the US and Australia. In the same research, respondents also recorded an important detail of Britain’s homes: Of the 2,249 owners whose properties were built between 2003 and 2006, 44% said they didn’t have enough space for small children to play safely while food is being prepared and more than a third said there was not enough space in the kitchen for appliances.

Housing trendsChanges in housing trends and lifestyles have a big infl uence on appliance buying patterns, so it is worth noting other developments in these areas before moving on. Eco-towns, in which compact, sustainable living is promoted, are destined to become a feature of Britain’s landscape. Such communities already exist and government proposals for additional developments are well underway. The creation of these ecologically balanced settlements will no doubt stretch the imagination of architects, builders and appliance designers, but in doing

Page 19: Get Connected: August 2010

so will also generate a greater demand for more environment-friendly products in the future.

While the appliance market is heavily dependent on a healthy economy boosting the numbers of new and eco-friendly builds in the years to come, another transformation is taking place in the UK now. Light, airy and orderly living is an increasing draw for consumers, and open-plan kitchens, rather than a necessity dictated by space being at

a premium, are becoming a desirable and attractive feature, whether incorporated into a renovated back-to-back dwelling of the early 20th Century, a restored cottage of later years or a 60s semi.

De Dietrich’s Richard Walker, referring to the aforementioned statistics, says: “Add to this the trend for open-plan living, which has been growing apace over the past fi ve years, where dining rooms are being knocked through to create larger ‘living spaces’ or where house builders are purely maximising smaller spaces, and a pattern of appliance requirements has emerged for kitchens in these types of homes. Appliances either have to be smaller versions of their standard-size counterparts or there is a new trend towards incorporating separate options in one appliance, thus providing dual functionality in a single package.”

Clean-cut and compactDe Dietrich fi rst introduced its compact ovens collection in 2003 with open-plan and compact kitchens in mind. The 2010 range incorporates the features and benefi ts found in standard sized De Dietrich ovens, and Walker says they off er a unique selection of options if sited side by side. “A 45cm multifunction

pyroclean oven (DOP745); a 45cm ICS microwave combination oven (DME795) and 45cm steam oven (DOV745) fulfi l every type of cooking option, and if required can be sold separately as a second alternative to a standard multifunction single or double oven.”

At the top end of the cooking market, the trend is very much towards compact appliances linked either with other compacts or with standard single ovens, notes Neff sales director Mike Jarrett. And when it comes to choosing new appliances, he believes that most consumers will probably have some idea of what they want, but this will be based on “emotional factors” such as design, brand and aspiration. “They need an ‘expert’ to either confi rm that their choices are logical and rational or to off er guidance,” he says.

Giving an example of how retailers can help consumers make the best choices, Jarrett draws on the current leaning towards steam and steam combination ovens and says retailers should be aware of the diff erence

between the two – i.e. pure steam models and those that add moisture to traditional cooking methods: “The cooking principles are diff erent and the latter provides cosmetic and texture benefi ts, but only for limited food types, whereas pure steam provides the ‘health’ benefi ts as well as maintaining colours, texture and vitamins

for a wide variety of foods.” Opting for compact appliances also

provides consumers with the choice of mixing and matching necessary cooking products with ‘luxury’ items such as warming drawers and built-in coff ee makers.

Steve Dickson, commercial manager for Belling and Stoves, talks of the growth of cafe culture “sweeping towns and cities across the UK” and leading to a rise in popularity of built-in coff ee machines. He says coff ee makers such as the Stoves S7-E450BCMAUTO 45cm appliance off er a “convenient and stylish addition to the contemporary kitchen” whilst keeping counter tops free of clutter for preparing food.

Or maybe that clutter-free space could be used to accommodate some of the selection of hob designs that are now available on the market…

Clean-cut and cleverIn compact kitchens and open-plan living areas, a streamlined look is generally the most desirable. Clean lines with surfaces that are easily maintained. But for many consumers, the hob conjures up images of food spills, scourers and Cif. What a treat is in store for the purchaser coming back to replace the hob of yesteryear. The easy-clean surfaces of induction hobs and standard ceramic electric appliances, and those with new coatings such as Whirlpool’s iXelium, which can be found on the brand’s stainless steel gas hobs, are very much a benefi t to be promoted at point of sale.

Few people fi nd cleaning the hob therapeutic, but fewer could image life without one. Yet Juliana Sado, Brand Marketing Manager at Whirlpool, suggests that such appliances are “not necessarily essential” in today’s kitchen: “Microwave and steam ovens can cope with the majority of hob work.”

It’s doubtful that most would agree with this alternative view, but Joan Fraser, Product development and Training Manager at Smeg UK, in her usual resourceful way, reasons that

AMICA INARI OPENZONE INDUCTION HOB

TOWN & APARTMENT LIVING

19

GET

CO

NN

ECTE

D

AU

G 2

010

STOVES BUILTIN S7E450BCMAUTO COFFEE MACHINE

Page 20: Get Connected: August 2010

many consumers simply do not need a full-size hob. On the fl ipside, others need one or more additional hob functions.

With this in mind, Fraser recommends Domino hobs as off ering a practical and versatile solution. “Domino hobs allow customisation of the work zone according to space and cooking requirements,” she says. “Smeg’s 30cm models are available in gas, electric or induction cooking modes, with a variety of choices including a Teppanyaki hob, a fryer and an indoor barbecue.” There’s nothing like covering all the options, and inspiring your customers in the process.

An interesting comment on the supply of hobs comes from De Dietrich’s Walker, who picks up on the fact that Energy Performance Certifi cates are a prerequisite for all new build projects, and many house-builders are seeking diff erent appliance solutions to incorporate in new apartment developments, as opposed to the standard oven, hob and hood pack. He says a number of house-builders are talking to the Fagor brand regarding the installation of 60cm induction hobs as “not only do products save electricity because of their 90% energy-effi ciency but the installation of induction hobs in apartments negates the need for additional gas pipework at the time of build. This also results in savings over the longer term as annual hob inspections are no longer required.”

My spaceEvidence shows that while some consumers may choose to reside in pocket-sized homes – such as those trading down or owning second

homes as getaways – others, such as fi rst-time buyers, for example, generally have little in the way of an alternative. Yet most will still want their surroundings to refl ect their personalities and their kitchens to be well laid out and appealing with imaginative and resourceful means of storage and the full complement of domestic appliances.

“It’s all about aff ordable luxury,” propounds Alessandro Finetto, Director of Global Consumer Design, Whirlpool Europe. “And we can relate to the car industry here, where we have a small car full of accessories (not gadgets) that delivers a better driving experience. Appliances are the same – delivering total quality using technology and programmes to generate money savings and a better quality of life.”

Whirpool’s Sado adds: “With people leading increasingly busy lives they are looking for products that off er speed and convenience as well a healthier lifestyle. There are great advantages with steam and microwave cooking, which off er the passport to a healthy future.”

Sado believes today’s microwave ovens are “very capable” appliances, with greater functionality than many full-sized ovens. “They are able to bake, brown, crisp and steam as well as microwave, all taking a fraction of the time and energy of a full-sized or conventional oven.” Whirlpool’s latest MAX range of microwaves comes to market in October 2010. The units have a rounded back and are designed to fi t neatly into the corner of the worktop. Both new models are multi-functional, with the inclusion of steam in one and crisp and grill in the other.

Hotpoint Brand Manager Iain Starkey notes that where worktop space is at a premium, built-in microwaves will off er a good solution but, on the other hand, he argues the point for the brand’s award-winning Openspace oven, which provides the versatility of a double oven

in a standard 60cm appliance. “At a capacity of 70 litres, the unit off ers 20% more space than a traditional single oven and can be split into independently controlled compartments with the use of an insulating divider.”

Belling and Stoves’ Dixon believes that creating a social, fl exible space that enables consumers to deliver “professional results” is a chief priority, especially since more people now entertain at home. He adds that the styling and size of an appliance shouldn’t compromise its functionality and presents the Belling BI60i, the “world’s fi rst” built-in oven to use induction in the main oven cavity, as a prime example of function and effi ciency. The patent pending 6-in-1 appliance is capable of slow cooking, roasting, grilling, steaming, fan cooking and baking casseroles, and has a dual zone grill. The BI60i uses “an impressive 50% less energy than a standard A-rated oven when in induction mode” – a signifi cant cost-saving for the consumer.

Cool spaceProfessional results, however, do not rely solely on the expertise or ingenuity of the cook, but also in the way foodstuff s are stored. Today’s cooling appliances are the larders of yesterday, off ering fl exible storage, precise temperature control, air circulation systems, humidity control and antibacterial linings, all of which help keep foodstuff s in tip-top condition, and are available in products of a range of heights and widths across freestanding, built-in and integrated collections.

Compact or open-plan room layouts will mean the style of the cooling appliance will be every bit as important as its functionality. For those needing to create the illusion of space, Whirlpool recommends the use of glass and mirror fi nishes. The brand recently introduced the new Nova range of American-style side-by-sides which has fi nishes in black mirrored

WHIRLPOOL’S MAX MICROWAVE FITS SNUGLY INTO THE CORNER OF WORKTOPS

FAGOR’S LFU45IT 45CM DISHWASHER: INTEGRATING ‘WET’ APPLIANCES CREATES CLEANER LINES AND A GREATER SENSE OF SPACE

TOWN & APARTMENT LIVING

20

Page 21: Get Connected: August 2010

Introducing our all-new freestanding collection that’s full of big ideas. From the stylish 60cm gas twin cavity cooker to the multifunction cooker with innovative induction hotplate. And what’s more, all our freestanding

cookers are AA energy rated and are made right here in the UK - ensuring the highest quality and the best supply. Here are some more great ideas that you can see across our new collection:

Belling FSE60MF (60cm)

Idea 21:AA energy rated

ovens

Idea 33: Flame safety devices across the range Idea 39: Removable inner door glassIdea 3: Ergonomically designed control knobs Idea 48: Easy clean enamel

A freestanding collectionthat’s all about free thinking.

Introducing our all-new freestanding collection that’s full of big ideas. From the stylish 60cm gas twin cavity cooker to the multifunction cooker with innovative induction hotplate. And what’s more, all our freestanding

cookers are AA energy rated and are made right here in the UK - ensuring the highest quality and the best supply. Here are some more great ideas that you can see across our new collection:

Belling FSE60MF (60cm)

Idea 33: Flame safety devices across the range Idea 39: Removable inner door glassIdea 3: Ergonomically designed control knobs Idea 48: Easy clean enamel

FOR A BROCHURE CALL 0844 248 4149 OR VISIT WWW.BELLING.CO.UK

12617 Get Connected Freestanding 297x210.indd 1 19/7/10 14:46:28

Page 22: Get Connected: August 2010

glass and in Luxilen™, a high-gloss durable material resembling glass. Sado says these units “may be big in capacity, but they are neat in dimension – slimmer than a conventional 60 cm fridge and freezer placed side by side.”

And for customers who prefer, or are perhaps tied to, the choice of under-counter or built-under refrigeration, fridge drawers may provide a stylish alternative. Hotpoint has in its range a set of two 90cm soft-close drawers that fi t neatly under the counter in a run of cabinets and can be fi nished with the brand’s ‘Experience’ steel fronts or with matching cabinet fronts. The award-winning design provides 190 litres of storage and incorporates a wine rack, two salad crispers, two meat/fi sh boxes, a dairy box and bottle holder.

Designer spaceMaking a ‘design statement’ is generally an important detail both for fi rst-time appliance buyers and those coming back into the market after a number of years, and many choose a single appliance such as the refrigerator or cooker hood to create the desired eff ect.

Whirlpool’s Sado congratulates manufacturers for their development of “aspirational” cooker hoods, styled in a range of materials and shapes with features such as illumination that cleverly adapts for ambient and mood lighting – “ideal for town and

apartment and open-plan living,” she says. “Hoods are a necessity, especially with the living area opening up. We forget that the hood has a crucial part to play, not only in removing cooking odours but also grease. The investment in a good quality hood with a high extraction rate and intelligent technology will also protect furnishings in the home.

“And today they are no longer the ‘noisy monsters’ of the past,” she points out. “Good appliances are extremely quiet and powerful and, as well as extracting cooking odours, will vent room odours too and you don’t even have to remember to turn them on.”

Whirlpool’s latest hoods in the Glamour, Fusion and Ambient ranges boast a 6th Sense® mode that uses the readings from inbuilt sensors to run at exactly the right power levels for maximum energy effi ciency and extraction performance. The technology also detects other room odours and pollutants and will automatically start the appliance up at the correct extraction rate to improve air quality.

Quiet spaceFor those working in compact kitchens or living in open-plan areas the operational noise levels of appliances should be taken into consideration. Dishwashers that ‘gush’ their way through programmes and vibrating washing machines are not going to create an ambient living space. And where the luxury of a utility room is not present, there is also the style aspect to take into account.

Integrating ‘wet’ appliances will help streamline the kitchen, thereby creating a greater sense of space, but in dishwashers there are some new and very striking design alternatives on the market. Gorenje, for example, has a décor door for its 60cm built-in dishwashers which complements its ‘Pure’ oven range and allows design-conscious consumers to create a “harmonious” space, while Neff has developed a stylish range of ‘In Line’ dishwashers. The two 60cm-wide compact models, S65M63N0GB and S66M63N0GB, are suitable for placing at eye level; in a bank of appliances; an island unit; side-by-side; in column or beneath the worktop. 6 place-setting S65M63N0GB is just 45cm in height and, importantly, both are said to feature “quiet operation.”

Smeg also off ers a diff erent take on the standard 60cm dishwasher: a 90cm, fully-integrated horizontal model providing a variety of diff erent installation options and designed to fi t with 90cm pan drawers. Product Development and Training Manager Joan Fraser says: “Despite its width, the fl exible DI912 requires only 36cm to open the door – an ideal space saver, especially in a galley kitchen.”

Ruth Ferguson, Marketing Manager at

Gorenje UK, points out that dishwashers are “steadily losing their ‘luxury’ tag” as people come to realise the water, time and energy savings appliances can off er. She also notes “greater interest” in slim-line models, and says this suggests that more people are fi nding room in the kitchen for such products.

“Dishwashers are also becoming standard prerequisites for new builds,” comments De Dietrich’s Walker. “However, anyone that has lived with a dishwasher is more likely to want one, even if the kitchen is lacking in space, and most manufacturers have for many years included 45cm slim-line options in their ranges.” He highlights the De Dietrich DVY640JU1 – a compact version incorporating the brand’s sensor technology and ‘Silence Inside’, which makes it “ideal for open-plan kitchens.” Operating at 43dB(A), “it will never drown out the sound of conversation.”

Less spaceSlim-line washing machines, rather than being of reduced width, off er a slimmer depth that allows them to fi t under narrow worktops. Such appliances have existed in mainland European markets for many years and are now just becoming a feature in the UK. Amica has two 42cm models in its collection, the AWSM12D and AWST10L, both of which boast sensor-controlled operation, a drum capacity of 5kg and a broad selection of programmes.

Indesit also off ers a reduced depth model (the 5kg, 45cm IWSC5125) featuring the brand’s ‘Eco Time’ function, which washes smaller loads in around 30% less time, using 40% less water and up to 50% less energy than a standard cycle.

The most recently launched slim-line machine on the UK market is the Candy Grand’O, a 40cm, 7kg appliance which Hoover Candy Marketing Director Steve MacDonald says is designed to give “a high-standard wash to those with a limited amount of fl oor space.” The A+ rated unit has a 350mm door for ease of loading and a full range of cycles that include Allergy Care and Stain Vanish options.

Kitting out compact spaces and satisfying the demand for convenience and order in open kitchens is a challenge, but not an insurmountable one. As Gorenje’s Ferguson says: “A lack of space doesn’t mean that design and personal preferences have to be forgone.” There are a variety of options available for the consumer, she points out, “be it through the use of colour, designer collaborations or a single appliance used as a style statement. Consumers want their kitchen, whatever the size, to be an expression of their personality, and the retailer must take this into account if they want to make the most of the sales opportunity presented to them.”

HOTPOINT’S FRIDGE DRAWERS OFFER AN ALTERNATIVE TO STANDARD UNDERCOUNTER REFRIGERATION PRODUCTS

TOWN & APARTMENT LIVING

22

GET

CO

NN

ECTE

D

AU

G 2

010

Page 23: Get Connected: August 2010

GROWTH FROM KNOWLEDGE

23

GET

CO

NN

ECTE

D

AU

G 2

010

Growth from Knowledge

Environmental effi ciencies have been a particular focus and point of diff erentiation in the Major Domestic Appliances sector for many years, yet in Small Appliances the awareness and development of such has been markedly slower. Seema Baines, GfK Senior Account Manager, Major Domestic Appliances, and Andrew Walsh, Account Manager for Small Domestic Appliances, provide an “eco-update” on the two market sectors

Small Kitchen Appliances

The Small Kitchen Appliances market has been slow to acknowledge the requirement for energy-saving products. And whilst effi ciency ratings for white goods have been

long standing, they have never existed in the small appliance sector. This in itself could be a key reason behind manufacturers’ lack of eco-products, as they are not required to compete on an “environmentally conscious” level, which in turn may have led to little demand from consumers for such products.

One product market that is starting to adopt an eco-friendly position is Kettles, where reducing water consumption appears to be a key feature. Using less water not only saves on the water bill, but means the appliance is in use for less time too – a bonus of which is, of course, a reduction in energy.

85% of kettles sold have water-level indicator windows. MAT Jun ’09 - May ’10 value increased 8.8% to account for 90% of the sector (£142.5m). On the other hand, a more obvious energy-effi cient option such as temperature control is only featured on 0.5% of kettles sold, a fall from 1.3% last year.

Hot water dispensers have also been a recent development in the kettles market. The category launched mid-2007 with major brands developing products and citing that boiling water can be had “in seconds”. Again, this works on the principle that water consumption can be minimised and the time taken to boil the water vastly reduced. After an initial strong market penetration, hot water dispensers now account for 3.8% of the total kettles market value MAT (£6.25m), a decline of 12% on last year.

Overall, it appears that eco-friendly appliances are yet to make a signifi cant impact in the SKA markets. It is diffi cult to access the reasons behind the lack of products available and it could be attributed to a number of factors: including low consumer demand, low penetration of products from manufacturers, or a combination of the two. Perhaps little demand from consumers may have discouraged manufacturers from developing eco-products and ranges further.

Major Domestic AppliancesEnergy effi ciency is however a particularly relevant topic to white goods when considering that appliances such as fridge freezers remain switched on as a necessity for the majority of their life.

Of the 2.1 million fridges and fridge freezers sold in the twelve months to May 2010, 97% were rated “A” or above – an increase from 63% back in 2004. With the “A” rating now becoming the industry standard, the “A+” and “A++” extensions refl ect the fact that manufacturers recognise the need for the modern refrigerator to be less energy guzzling.

For appliances with several functions that can boost effi ciencies, such as washing machines, a triple-letter classifi cation exists. This refers to energy effi ciency (as measured for a fully loaded 60-degree cycle), wash performance and spin performance. More than three-quarters of the £838 million washing machine market falls into the rating of AAB or above.

Dishwashers is another triple-class rated market with energy, cleaning and drying effi ciencies. Sales of AAA rated products have seen impressive growth since 2002 and now constitute 85% of the market.

Whilst consumer awareness of the need to be “green” has undoubtedly grown, there are perhaps more practical motivations behind purchasing decisions. The economic situation and spiralling utility bills have put pressure on disposable incomes and if consumers can see a cost benefi t to appliances they will certainly take it. Green marketing remains a hot topic and with manufacturers, retailers and the media continuing to address how we can reduce our impact on the environment, retail sales of energy-effi cient products will carry on growing.

A tale of two markets

GfK Retail and Technology MDA Energy Efficiency

6370

7882

8995

72

8386 87 88 90

71

8488

93 94 95

0

10

20

30

40

50

60

70

80

90

100

2004 2005 2006 2007 2008 2009

Cooling Washing Machines Dishwashers

MDA Energy performance A rated or above share

All volume based

For further information please contact: Seema Baines (small appliances):0870 603 8114 [email protected]

Andrew Walsh (major appliances):0870 603 8266 [email protected]

www.gfkrt.com/uk

Page 24: Get Connected: August 2010

24

GET

CO

NN

ECTE

D

AU

G 2

010

Is brand loyalty a signi� cant market factor in 2010? “No,” says Alan Bennett

E-mail: [email protected]

F ine sets, these Fergusons. Many people thought so, and other makes had their

adherents too: Bush, Murphy, Decca, HMV – the further back in time you go the greater were buyers’ loyalties to speci� c brands. As with the car industry in recent times, television and radio dealers once had exclusive agencies, and companies like Murphy would swear their dealers to secrecy regarding technical details and service procedures. We’ve come a long way since then; most viewers now don’t know the make of their TV or whatever, even when phoning for help with it! Yet everybody knows what make of car they own…

CustomersSuch brand loyalty as remains now is

largely con� ned to the over-55s, I’ve found,

and regretfully most of that is misguided

because there’s virtually no correlation

between early products and current ones

from any manufacturer as design personnel

change, as every possible manufacturing,

marketing and service economy is

practised, as third-party manufacturing

(‘badge engineering’) becomes common,

and as cheap and shoddy components (see

last month) are used in production of all but

top-class equipment.

We still have a few customers who

vaguely believe that Wharfedale equipment

is designed and built in a beautiful

Yorkshire valley, that Grundig products are

conceived and made in Germany BMW-

style, that Finlux TVs still hail from swish

Scandinavia, and so on. But there are not

many of them left. For most buyers, the

main – often the only – purchase criterion

now for a TV, for instance, is price per

screen inch, while build quality, integrity

and even performance don’t come into the

equation: “It’s got £100 off!”, “Wow, there’s a

42-inch telly for 500 quid!”

SetmakersManufacturers have done little to encourage

brand loyalty, knowing, I believe, that there

is no great chance that users of their

equipment will seek out the same make

again when their TV or whatever breaks

down or needs updating. Indeed, the fact

that it has broken down and not been

repaired can be a big deterrent to this. In

some cases famous, even iconic brands

now trade on their illustrious history and

good reputation, dressing mutton as lamb,

so to speak, and selling equipment which is

quite ordinary (and maybe having parts in

common, perhaps even the whole lot apart

from cosmetics identical to other makes

selling at lower prices) and certainly not

deserving of the re� ected glory of the name

it carries. This is true of some TV and video

products, and especially of white goods –

for many years we have sold, rented and

serviced a wide range of washing machines

and tumble dryers, and have found that

the products of economy brand Beko have

better build quality and lower rates of failure

in service than those of two of the best

known and longest established names in the

business. Living in my kitchen now is the

brilliant Beko model 7247, ful� lling all my

needs, and with a good prospect of longevity.

I believe that makers could pull back

some loyalty on the part of dealers – and

through them, customers – by offering a

better after-sales service and support. For

instance, by not running out of essential

spares even before their TV products’

one-year guarantee has expired. But this

concept is lost on many manufacturers,

and not just those with cheap and cheerful

products: I’ve heard that a long-established

and well-respected second-league Japanese

brand has withdrawn support from all its

repair agents whose spares turnover is less

than £5000 a year, an impossible order for

most regional service centres, and another

blow for the punter whose equipment

breaks down.

To pile on the agony, the next generation

of service manuals from this maker will

not contain circuit diagrams. How on earth

can you diagnose faults even to board level

in the absence of individual components

without anything to guide you, no matter

how skilled and experienced you are? If

buyers knew about this sort of thing such

little loyalty as might remain would go

straight out the window. And rightly so.

Meanwhile, retailers and retailing groups

have adopted their own brand names –

those belonging to supermarkets have

become bywords for low-end, low-cost

no-repair rubbish – to avoid website and

magazine price comparisons per model

between retailers. In other cases, and for

the same reason, speci� c model numbers

have been created by manufacturers for

retailing chains and groups.

KudosAmongst brands which still have reasonable

kudos and a measure of loyalty are Sony,

Bang and Olufsen, Loewe and Pioneer,

though the latter has now withdrawn from

the domestic TV market despite having

made the best plasma TVs. In the radio � eld

Roberts and Pure enjoy a lot of respect

from dealers and the public alike; the

Roberts brand goes back to 1932. Again,

in high-class audio manufacturing there

are several revered names which attract

loyalty, fanaticism even, but, of course,

these are minority purchases in a minority

product category. Even so, excellent design

and build characterise these ampli� ers,

speakers and associated gear – no crap

electrolytic capacitors here!

I guess much of the problem with TV and

video equipment is that most of it is much

of a muchness in terms of appearance,

speci� cation and performance.

WHAT’S IN A NAME?

FROM THE BENCH

Page 25: Get Connected: August 2010

THE D&G COLUMN

25

GET

CO

NN

ECTE

D

AU

G 2

010

This month’s D&G Column looks at training – something all suppliers agree is important for their retailers, but not all suppliers commit substantial time and resources to. Jeff Griffi ths answers retailers’ questions about the winning training initiatives D&G offers to its retail partners.

Training to win

Q: All my suppliers and service providers talk about training. What I need for me and my staff is clear, simple product and sales guidance that we can put into practical operation on the shop fl oor every day. We want real results in sales, turnover and margin. What does D&G do for retailers in this basic area?

A: D&G offers a comprehensive range of retailer support materials and initiatives that aim to give shop fl oor staff the hard and soft skills of selling warranties. In addition to our very successful electronic distance learning programme (currently being revised into version 4), we have four dedicated retail trainers and two sales managers on the road to assist in every store. Whether it is a quick brush-up of skills for a staff member or a full-shop training seminar, we can organise the training to suit your needs.

Selling warranties effectively is a skill quite unlike selling-in traditional products such as a big screen TV or a new washing machine. Few customers come into store with the mindset that they will buy a warranty with their new appliance. The sell needs to be much smarter than simply waiting until check-out and asking them if they want a warranty - or perhaps spare batteries for the remote control. You might sell a few batteries, but not too many warranties.

The very nature of warranties demands a completely fresh sales technique. Most shop staff are successfully geared up to offer customers physical products with tangible and immediate benefi ts, but these skills are not particularly effective at selling-in a service proposition. After all, warranties have no physical product to take home and admire, and their benefi ts won’t be felt until the covered product goes in two, three, or even fi ve years’ time.

Time and time again, a basic or refresher course is all that is required to really spark

off warranty sales and dramatically increase conversions. In next month’s D&G column we will look at some great case studies of retailers turning D&G training into maximum warranty revenue.

Q: D&G talks about warranty “products” in the same way that my suppliers talk about their different white and brown goods products. Are there really clear-cut warranty products that can be sold on the strength of their differentiation and benefi ts to suit individual customer needs?

A: D&G offers a number of warranty and service plan propositions, and we refer to them in much the same way as manufacturers speak of their products. Each one has undergone a strategic market review, is researched and designed, and eventually launched to maximise sell-through by being the best “product” available.

Many of the added value features of D&G warranties are the real sales clinchers, and offer sales staff the opportunity to address the warranty issue in new and compelling ways. Most D&G warranties at point of sale come with cover for damage caused by accident in the home and not just for breakdown. While many homeowners may be covered for this by their home insurance, in the event of an accident the D&G warranty has no claims forms to fi ll in, no excess to pay and no increase in premiums next year. Unlike many insurers, we do not have teams of loss-adjusters attempting to diminish the claim amount. We will simply repair or replace the product with an equivalent or better product!

When it comes to paying for the warranty, D&G also offers a range of payment plans to ensure tight fi nances do not kill the sale. Our 10-month interest-free credit option spreads the payment over 10 months’ direct

debit with no additional charge, and our Pay Monthly Plans offer warranty cover for as long as the customer pays the small direct debit each month. They could pay for over 10 years, and when the product goes wrong D&G will replace it with a shiny new product sourced through the original retailer. They need never actually buy another product again!

Q: D&G says that support and service to their retailers makes it easy, quick and painless for us to sort out our customers’ problems. How does that work from the retailer’s point of view? Take me through the process.

A: Our electrical retailer back-up operation is second to no company offering service-based product through independents. Not only do we offer all the materials and point of sale information you require to sell D&G warranties, our dedicated dealer support team is available through weekday business hours to help on any issue. From simple requests for more literature to in-depth questions about plan details, the dealer support team is there to help you.

Even when your warranty customers come into store the dealer support team is just a call away. You can phone up to get the answer to specifi c queries or go through the process of booking a callout for them. We fi nd this level of service really secures the customer-retailer bond. In the event of a problem the customer can call us direct of course, but retailers suggesting that customers should speak to them fi rst can really benefi t from the added-value service.

All these product benefi ts and the sales techniques required to clinch the deal require high quality training on an ongoing basis. Whether your staff need to brush up their sales skills or you feel you are not getting the most from warranty sales, call D&G today and get training to win.

JEFF GRIFFITHS, NATIONAL ACCOUNT DIRECTOR, DOMESTIC & GENERAL SERVICES LTD.

THE D&G COLUMNDomestic & General, the leading specialist warranty services business.

Domestic & General provides warranty services for UK and International clients and comprehensive product protection for more than nine million customers.

Page 26: Get Connected: August 2010

BACKCHAT

26

GET

CO

NN

ECTE

D

AU

G 2

010

�Andrew Jones, Marketing Manager for Samsung Home Appliances, ‘doesn’t quite’ have a full-blown fetish with cars, but he does fancy starring in Bullitt, the late 60s � lm probably best remembered for its car chase scene, and joining the ranks of Clarkson as a presenter on Top Gear. If the next � ve years don’t see him elevated to a position where he’s exchanging banter with Hammond and May, then he isn’t envisaging too much in the way of change on the work front, although maybe more responsibility would yield a nicer car?

Why did you choose to work in the electrical industry? My father used to work for Littlewoods, and when it came to me applying for a job during my placement year he gave me a list of his contacts. I got a job with Miele and it went from there

How would you describe yourself? Enthusiastic, clear thinking and a bit lanky

How do you think others see you? Hopefully in the same way, although they may also say ‘loud’

Is there anything about yourself that you would like to change? Always thinking I’m right

Hobbies? The usual: seeing friends, going to the pub (too much), cycling (not enough)

Do you have any particular fetishes? Cars – but it’s not quite reached fetish status

What makes you laugh? Absurdity, stupidity and Family Guy

Who has been the greatest infl uence in your life? My parents

What was the greatest turning point in your life? Meeting my wife

Greatest achievement? Marrying my wife

Greatest regret? Not being rebellious enough as a teenager

Greatest fear? Not living up to expectations

Who in the industry would you like to spend time with? My current team at Samsung, of course, because the banter is superb!

If you weren’t in your present position, what job would you choose to do? Top Gear presenter

You have been off ered a leading role in a fi lm of your choice, what character would you like to play? Steve McQueen’s character in Bullitt

If you ruled the world for a day, what would be the fi rst change you would make? I would increase tax for all big-time sports stars, athletes, movie stars and musicians and give it all to the poorest people in the world. A worldwide day off would be pretty cool also

What’s the worst lie you’ve ever told?Probably the answer to one of these questions…

Do you have any bad habits? Probably!

Pet hate? People who say they will give more than 100%. 100% is the most you can give

What would you put into Room 101?Courgettes. What’s the point?– Answers on a postcard please…

What sort of music do you like? Anything by the Foo Fighters or Pearl Jam

Favourite TV programme? Family Guy

Favourite holiday destination?Anywhere I haven’t been yet

Favourite cuisine? I would honestly struggle to pick one. I like everything …except courgettes!

Name your poison? Cold beer. Guinness if I am feeling sophisticated

What surprises you? How negative people can be

What do you daydream about? Being in the sunshine

Who do you most admire? David Attenborough

Where do you see yourself in 5 years’ time? Doing a similar type of role, maybe with more responsibility and a nicer car

Favourite quote? Good judgment comes from experience, and a lot of that comes from bad judgment

What’s your favourite piece of kit? My Nespresso coff ee machine

What motto do you live by? Sometimes the path of least resistance is the best one!

Tomorrow I will…Do my expenses

Best Buy vs Currys – a consumer’s � rst impressions:“We ventured into Best Buy Thurrock over the weekend. Very big, as expected, but there seemed to be lots of room about. Nicely displayed products and the demo rooms looked good. Staff greeted us with a smile and approached us, but not in an overbearing way. The experience was OK.

“Then we went to the Currys Superstore about quarter of a mile away. It’s on two � oors. We were very impressed. Products everywhere, well displayed in easy-to-� nd sections. It looked and felt much more inviting with a greater variety of stock available than in Best Buy. There were cooking displays and a lady dispensing free Nespresso coffee. They also have demo rooms and a very good-looking hi-� section. Lots of banners/posters outside offering huge discounts/money off and shouting ‘Come in – we’re nice people’. They’re really trying hard to combat Best Buy and, on � rst impression, they’re winning.”

Page 27: Get Connected: August 2010

EXCLUSIV

E

WEB O

FFERS

ONLY O

N-LIN

E!

Email us today for your log in details to get an inside look at our fantastic website. For exclusive prices, daily offers, email offers and one off amazing deals - Don’t delay!!

Visit us: www.dad-online.co.uk

GET D IG ITAL . . .Available to our customers we supply a digital copy of ʻThe Buying Guideʼ. We also supply a priceless ʻShop Floor Specialsʼ for our customers to use along side their own customers.

Simply download every month at: www.dad-online.co.uk/downloads.

Available to our customers we supply a digital copy of ʻThe Buying Available to our customers we supply a digital copy of ʻThe Buying for our for our

www.dad-online.co.uk/downloads.www.dad-online.co.uk/downloads.

Washing Machines

2

Call: 01452 504084 | Fax: 01452 504545 | Visit:

www.dad-online.co.uk

WM5100W

W/Machine

1000 Spin

5kg Capacity

Auto Half Load

A Energy

DWDF1251W

W/Machine

1200 Spin

7kg Capacity

LED Display

A Energy

HVL211P

W/Machine

1100 Spin

5.5kg Capacity

Digital Display

A Energy

IWB5113

W/Machine

1100 Spin

5.5kg Capacity

16 Programmes

A Energy

WM6123S

W/Machine

1200 Spin

6kg Capacity

Silver

A Energy

DWDG1241S

W/Machine

1200 Spin

8kg Capacity

LED Display

A Energy

WML520P

W/Machine

1200 Spin

6kg Capacity

Quick Wash

A Energy

IWC6145W

W/Machine

1400 Spin

6kg Capacity

13 Programmes

A Energy

WME7247W

W/Machine

1400 Spin

7kg Capacity

LCD Display

A+ Energy

WMI71641

W/Machine

1600 Spin

7kg Capacity

LCD Display

A+ Energy

WML940P

W/Machine

1400 Spin

9kg Capacity

LED Display

A Energy

BHWM129

W/Machine

1200 Spin

6.5kg Capacity

Half Load

A Energy

ZWG1120M

W/Machine

1200 Spin

6kg Capacity

Time to End

LCD Display

A Energy

GO482

W/Machine

1400 Spin

8kg Capacity

Time to End

21 Programmes

A+ Energy

£135.00

OUR CHEAPEST

W/MACHINE

£173.00

3+UNITS @

£169.00 EACH

£163.00

3+UNITS @

£159.00 EACH

£199.00

LAST FEW

REMAINING

£185.00

3+UNITS @

£179.00 EACH

£169.00

GREAT BUDGET

WASHER

£179.00

LOWEST

PRICE GUARANTEED

£245.00

3+UNITS @

£239.00 EACH

£174.00

3+UNITS @

£168.00 EACH

£235.00

3+UNITS @

£229.00 EACH

£199.00

3+UNITS @

£194.00 EACH

£159.00

STUNNING

PRICE

£172.50

3+UNITS @

£169.00 EACH

£264.00

3+UNITS @

£269.00 EACH

PHEN

OM

ENA

LVA

LUE

OURCHEAPESTW/MACHINE

TIMEREMAININGDISPLAY

EXCELLENTVALUE

OURCHEAPESTINDESIT WASHER

WM6123WWHITE AVAILABLEFOR ONLY £153

DWDF1441DIRECT DRIVEONLY £199

LOWESTPRICEGUARANTEED

BIGSAVING

WME7227W1200RPM VERSIONFOR ONLY £163

FULLYINTEGRATED

EXCELLENTVALUE

BIGSAVING

Freestanding Cooking

16

The UK’s Number 1 Cooking Brand

BA5NE - ASPEN

Eye Level Cookers

4 Burners - inc 1 Rapid Zone

Fully Variable Grill

Flame Failure

Interior Oven Light

Minute Minder

Storage Compartment

H146 W50 D60cm

FSG60DOPWHGas Cooker

Double Oven

Flame Failure

Lidded

White

H90 W 60 D60cm

DG581WGas Cooker

Twin Cavity

4 Burner Hob

Top Cavity Grill

Mains Ignition

H90 W50 D60cm

DG582SGas Cooker

Twin Cavity

4 Burner Hob

Top Cavity Grill

Silver

H90 W50 D60cm

FINISH

EDM

OD

EL

£138.003+UNITS @

£135.00 EACH

£96.003+UNITS @

£93.00 EACH

W.S.

L

LPG CONVERSION KIT AVAILABLE

MODEL:BA5NEKP

MODEL:BA5NESP

MODEL:BA5NEWP

E52108AWElectric Cooker

Single Oven

Solid Plate Hob

Eco Clean Enamel

B Energy

H90 W50 D60cm

GI52108AWFFGas Cooker

Single Oven

4 Burner Hob

Flame Failure

Eco Clean Enamel

H90 W50 D60cm

D531WElectric Cooker

Twin Cavity

Solid Plate Hob

Easy Clean Liners

B Energy

H90 W50 D60cm

DG581NWPGas Cooker

Twin Cavity

4 Burner Hob

Flame Failure

Easy Clean Liners

H90 W50 D60cm

DC5422WElectric Cooker

Twin Cavity

Ceramic Hob

Separate Grill

B Energy

H90 W50 D60cm

DCFM6SPGas Cooker

Twin Cavity

Flame Failure

Lidded

Silver

H90 W60 D60cm

£159.003+UNITS @

£195.00 EACH

£134.99IN SHORT

SUPPLY

£369.003+UNITS @

£364.00 EACH

£219.00

3+UNITS @

£215.00 EACH

BLACK

£215.00

3+UNITS @

£209.00 EACH

SILVER

£215.00

3+UNITS @

£209.00 EACH

WHITE

£125.003+UNITS @

£119.00 EACH

£145.003+UNITS @

£142.00 EACH

BESTSELLER

WOW£169.00

3+UNITS @

£165.00 EACH

FLAMEFAILURE

£200.003+UNITS @

£195.00 EACH

£239.003+UNITS @

£235.00 EACH

BESTSELLER

£148.003+UNITS @

£145.00 EACH

D.A

.DEx

clus

ive FS

Don

ALL

3M

odel

s GREAT

VALU

E

FSG60TCGas Cooker

Twin Cavity

4 Burner Hob

Lidded

S/Steel

H90 W60 D60cm

£309.003+UNITS @

£299.00 EACH

DC5422W

SILVER AVAILABLE

FOR ONLY £215

NEWMODEL

NEWMODEL

Fridge Freezers

11Call: 01452 504084 | Fax: 01452 504545 | Visit: www.dad-online.co.uk

IK2020CStatic Combi2.22/1.05 cu.ftGlass ShelvesRev DoorsA EnergyH85 W50.5 D51.4cm

FFP187MPFrost Free Combi6.5/3.9 cu.ftAnti Bacterial ProtectionRev DoorsA EnergyH187 W60 D65.5cm

RF260RWStatic Combi4.3/2.4 cu.ftGlass ShelvesRev DoorsA EnergyH143 W55 D58cm

ZRB227WOStatic Combi ? cu.ftGlass ShelvesRev DoorsA+ EnergyH169 W55 D57cm

IK7031CStatic Top Mount3.0/1.0 cu.ftGlass DoorsRev DoorsA EnergyH116 W47.5 D51cm

FFP187MGFrost Free Combi6.5/3.9 cu.ftAnti Bacterial ProtectionRev DoorsA EnergyH187 W60 D65.5cm

RF270RWStatic Combi5.0/3.1 cu.ftGlass ShelvesRev DoorsA EnergyH166 W55 D58cm

ZRB634FWFrost Free Combi12 cu.ftRev DoorsWine RackA EnergyH185 W59.5 D63.2cm

ZRB224NFrost Free Combi5.9/2.3 cu.ftTotal Frost FreeGlass Shelves, Wine Rack3 Large DrawersA EnergyH169 W55 D57cm

RFA52PCombi F/Freezer5.5/3.7 cu.ftGlass ShelvesAuto DefrostReversible DoorsA EnergyH174 W54.5 D58cm

BAN12NFF/Freezer6.2/3.0 cu.ftFrost FreeGlass ShelvesA+ EnergyH175 W60 D65.5cm

ERF336MF/Freezer7.1/3.5 cu.ftGlass ShelvesRev DoorsA EnergyH170.6 W59.6 D62.4cm

£95.003+UNITS @£89.99 EACH

£109.003+UNITS @£105.00 EACH

£209.003+UNITS @£204.00 EACH£219.003+UNITS @

£215.00 EACH

£269.003+UNITS @£264.00 EACH

£269.003+UNITS @£264.00 EACH

£145.003+UNITS @£142.00 EACH

£159.003+UNITS @£156.00 EACH

£209.003+UNITS @£204.00 EACH

£299.00EXTRA LARGECAPACITY

£259.003+UNITS @

£249.00 EACH

S/STEEL LOOK

£239.003+UNITS @

£229.00 EACH

WHITE

£199.003+UNITS @

£194.00 EACH

WHITE

WOW

S/Steel

Look To

tal

Frost

FreeBE

ST

SELLER

NEWW

OW

STUNNINGPRICE

FANTASTIC

VALUE

NEWMODEL

SUPERBVALUE

FANTASTIC

VALUE

ZRB634FX

S/STEEL AVAILABLE

FOR O

NLY £315

NEW

UNDER COUNTER

FRIDGE FREEZER

ANTI-

BACTERIAL

PROTECTION

BAAN13

4

AVAILA

BLE

FOR O

NLY £2

19 IN

SHO

RT

SUPP

LY

Domestic Appliance Distributors, Henry John House, Unit A, Mill Place (South), Bristol Road, Gloucester, GL1 5SQ

Tel: +44(0)1452 504084 Fax: +44(0)1452 504545 Website: www.dad-online.co.uk

THE BUY ING GU IDECo r e L i n e P r o du c t s a nd Mon t h l y S pe c i a l O f fe r s - S upp l i e d E v e r y Mon t h

Page 28: Get Connected: August 2010

D.A.D is a major distributor of domestic appliances and consumer electronic goods throughout the UK. Based in Gloucester, we operate from an 80,000 sq ft, modern warehouse and are recognised as a significant, reputable and established trade out-let to independent electrical retailers, kitchen specialists, national multi-ples, house builders, developers and internet websites.

With a product range including over 40 brands, the choice for our cus-tomers is endless!

The Independents’ Choice

Domestic Appliance DistributorsUnit A, Mill Place 2 (South), Bristol Road, Gloucester, GL1 5SQ

Call +44(0)1452 504084 Fax +44(0)1452 504545

www.dad-online.co.uk

Supporting our Customers...We supply our customers monthly special off er booklets and fl yers that include up to the minute off ers and, when available, end of line models at fantastic prices.

Supporting our Customers...Supporting our Customers...We supply our customers monthly special off er We supply our customers monthly special off er booklets and fl yers that include up to the minute booklets and fl yers that include up to the minute off ers and, when available, off ers and, when available, off ers and, when available, off ers and, when available,