Get Connected: July 2011

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HIGH STREET HIGH NOON?Retailing in the UK has been savagely reshaped by the recession, and many believe the High Street as we know it has an imminent date with extinction. Is that necessarily a bad thing? And what, if anything, can be done to save the best of the old while embracing the new?

THE GREEN ROOMThe impeccable green credentials presented by so many of today’s major domestic appliances are the result of sustained investment and commitment from leading manufacturers. With eco-friendliness now a higher priority in the kitchen, retailers have a powerful new sales tool

PORTABLE CE DEVICESPortable, powerful, stylish and well connected. What is the future for the burgeoning portable consumer electronics devices market?

GROWTH FROM KNOWLEDGEGfK with the fi gures on what’s selling in portable CE devices

FROM THE BENCHAlan Bennett considers the optimum conditions for the ultimate viewing experience

BACKCHATLinsar’s Barry Kick gives a 2-minute interview

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

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The music system with more choice

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Digital, FM and Internet Radio, CD and Dock for iPod/iPhone Enjoy an incredible range of listening with the compact, powerful Sirocco 550 hi-fi system. As well as broadcast radio (digital and FM), a CD player, a dock for iPod/iPhone and an input for USB flash drives, Sirocco 550 uses Wi-Fi to receive internet content (thousands of radio stations, listen again programmes, podcasts and PURE Sounds) and stream music stored on a Wi-Fi-enabled laptop or network storage device. You can even buy music direct from Sirocco 550 using the unique FlowSongs service.

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Get Connected. Greyfriar Cottage, Winchester Road, Chawton, Alton, Hampshire. GU34 1SBwww.gcmagazine.co.uk

Editor in Chief: Marlinda Conway Telephone: 01420 886 33 [email protected]

Editorial & Publishing Director: Terry HeathTelephone: 01420 886 33 [email protected]

Magazine Advertising Sales:Graham Southern Telephone: 05557 735 501 [email protected]

Creative Director: Will Dobson [email protected]

Advertisement Production Administration: Will Dobson Telephone: 01342 850 456 [email protected]

Production and Print: Blackmore Press, Shaftesbury, Dorsetwww.blackmore.co.uk

Subscriptions & Circulation: GCCD, 13 Premier AvenueGrays, EssexRM16 2SB.Telephone: 07818 088 671Fax: 01375 370 436 [email protected]

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

Copyright © 2011 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

13 / / / / / High Noon on the High Street What’s happening to retail in the UK?

16 / / / / / / / / / / / / / / The Product Gallery

18 / / / / / / / / / / / / / / / / The Green Room Effi ciency in Major Domestic Appliances

26 / / / / / / / / / / / / / / Portable CE Devices Carrying the Future

28 / / / / / / / / / Growth from Knowledge GfK facts & fi gures on the portable CE market

30 / / / / / / George Cole Gets Connected

32 / / / / / / / / / / / / / / / / / From the Bench Alan Bennett covers the viewing angles

34 / / / / / / / / / / / / / / / / / / / / / / / Backchat Industry comment and a 2-minute

interview from Linsar’s Barry Kick

P17 BEKO DPU8360 ‘DRY AND SAVE’ CONDENSER DRYER www.beko.co.uk

THE GAGGIA GELATIERA:pure indulgence� is summer, help your customers

unwind and indulge in delicious quality ice-cream at home.

www.gaggia.com

Guaranteeing great tasting results every time, and easy to operate and clean, the Gelatiera from premium Italian brand, Gaggia, prepares gelato in just thirty minutes. Motorised paddles churn the ice-cream leaving it smooth and creamy and producing a

real, authentic Italian experience at home.� e Gelatiera perfectly balances a creamy consistency with the distinct classic taste of the

fi nest Italian hand-made gelato. Ready to use in fi ve minutes, the machine has a built-in freezer so you don’t have to re-freeze the bowl and can leave the cooling system on until ready to enjoy.

Robustly built, the machine has the capacity to produce up to 600g of ice-cream and also comes with an additional bowl meaning you can make multiple batches.

Jo Pratt, presenter and celebrity chef, comments: “� ere is something really indulgent about making your own ice-cream at home and with the Gaggia Gelatiera you can be adventurous with your fl avours and seriously impress family and friends.”

To support the launch of the Gelatiera, Jo has created some delicious recipes that are sure to whet the appetite.

CONTENTS

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Get Connected. Greyfriar Cottage, Winchester Road, Chawton, Alton, Hampshire. GU34 1SBwww.gcmagazine.co.uk

Editor in Chief: Marlinda Conway Telephone: 01420 886 33» [email protected]

Editorial & Publishing Director: Terry Heath Telephone: 01420 886 33» [email protected]

Magazine Advertising Sales:Graham Southern Telephone: 05557 735 501» [email protected]

Creative Director: Will Dobson » [email protected]

Advertisement Production Administration: Will Dobson Telephone: 01342 850 456» [email protected]

Production and Print: Blackmore Press, Shaftesbury, Dorset www.blackmore.co.uk

Subscriptions & Circulation: GCCD, 13 Premier AvenueGrays, EssexRM16 2SB.Telephone: 07818 088 671Fax: 01375 370 436 » [email protected]

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

Copyright © 2011 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

13 / / / / / High Noon on the High Street What’s happening to retail in the UK?

16 / / / / / / / / / / / / / / The Product Gallery

18 / / / / / / / / / / / / / / / / The Green Room Efficiency in Major Domestic Appliances

26 / / / / / / / / / / / / / / Portable CE Devices Carrying the Future

28 / / / / / / / / / Growth from Knowledge GfK facts & figures on the portable CE market

30 / / / / / / George Cole Gets Connected

32 / / / / / / / / / / / / / / / / / From the Bench Alan Bennett covers the viewing angles

34 / / / / / / / / / / / / / / / / / / / / / / / Backchat Industry comment and a 2-minute

interview from Linsar’s Barry Kick

(P17) BEKO DPU8360 ‘DRY AND SAvE’ CONDENSER DRYER www.beko.co.uk

The GaGGia GelaTiera:pure indulgenceThis summer, help your customers

unwind and indulge in delicious quality ice-cream at home.

www.gaggia.com

Guaranteeing great tasting results every time, and easy to operate and clean, the Gelatiera from premium italian brand, Gaggia, prepares gelato in just thirty minutes. Motorised paddles churn the ice-cream leaving it smooth and creamy and producing a

real, authentic italian experience at home.The Gelatiera perfectly balances a creamy consistency with the distinct classic taste of the

finest Italian hand-made gelato. Ready to use in five minutes, the machine has a built-in freezer so you don’t have to re-freeze the bowl and can leave the cooling system on until ready to enjoy.

Robustly built, the machine has the capacity to produce up to 600g of ice-cream and also comes with an additional bowl meaning you can make multiple batches.

Jo Pratt, presenter and celebrity chef, comments: “There is something really indulgent about making your own ice-cream at home and with the Gaggia Gelatiera you can be adventurous with your flavours and seriously impress family and friends.”

To support the launch of the Gelatiera, Jo has created some delicious recipes that are sure to whet the appetite.

EDITORIAL COMMENT

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We’ve always been in favour of reporting the good news in our industry, talking up the positives

and fi nding reasons to look ahead with as much confi dence as possible.

As we’ve seen over the past few diffi cult years, confi dence is a key element in the economic health of the country. When consumers don’t have confi dence, they don’t spend money at retail. And when people are not buying, the entire economy suff ers.

But while there’s little point in being negative and taking delight – as the mainstream press seems to do – in headlines of doom, there is even less point in pretending there’s not a problem. Just a glance through the news pages of this issue of Get Connected is enough to confi rm there is a problem that, for our retailers, is at least as acute as it’s been at any time since 2008. We report it because it’s there to be reported, and only by facing the facts with a clear-sighted realism can the industry formulate and execute the best strategies for dealing with it.

The Government seems to have woken up very late to the fact that retail, which is the essential interface in the “real” economy (“the part of the economy that is concerned with actually producing goods and services, as opposed to the part of the economy that is concerned with buying and selling on the fi nancial markets”), is suff ering from diffi culties largely beyond its control, and needs support.

There is a lot that can be done, if the will and the expertise is there, to get regulators, legislators, landlords, local authorities, manufacturers and retailers talking together about mutual help. But Governments don’t really have that expertise. It resides in the practitioners, and all the Government can do is listen to them and act on what they say.

In our experience, electrical retailers are among the most astute, commercially aware and self-motivating business people in the country. They are people worth listening to, because they really do understand what

is happening at the grass roots of the real economy, because that is where they are positioned. And they really do have clear ideas, based on solid experience, about what can be done to aid economic recovery.

Having said that, there can be very little doubt that retailing in the UK is undergoing profound and irreversible change, and the traditional model of the High Street simply no longer works for some communities in some locations across the country. New channels, new ways of selling, new ways of engaging consumers and giving them the service, convenience and choice they demand are being opened up. It’s a change that began before the recession, and will only be reinforced as the economy recovers, and any retailer who is not part of managing change will fall victim to it.

So what do you think the Government, and we, as an industry, should be doing now? Do you welcome the appointment of Mary Portas as the fi gurehead of a “save our High Streets” initiative, or is it just another celebrity sticking-plaster applied to a problem that’s bigger, more complex and more intractable?

And what about the proposed removal of the law preventing manufacturers from setting a Recommended Retail Price (RRP) on some classes of electrical goods? Anything that takes away restrictive regulation from our industry has to be welcomed, but will it have the desired eff ect of creating a “level playing fi eld” and helping independents to compete in a price-driven world?

We have gathered opinions from a number of sources (see pages 13-15 in this issue) that may have some readers applauding and others fl inging the magazine across the room in anger.

Either way, it’s good to talk. Please do send your thoughts, opinions, ideas and rants to [email protected]. Heaven knows the country and its Government could do with some real guidance from people who actually make, distribute, sell, install, service or repair electrical goods for a living.

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

Graham SouthernAdvertising Sales

Lynne HenryCommunications Offi cer,

GfK Marketing Services

James McIntoshConsumer Consultant

Will DobsonCreative Director

To become a local stockist and to further understand the benefi ts to your business please contact Lisa Watson on 0208 734 2133 / [email protected]

With a free 5 year warranty, direct delivery, display plan options and instore training, the A+ rated SJ range of refrigerators are cleverly designed with technologies including Plasmacluster and Hybrid Cooling/This is Why the SJ range adds value, sales and profi tability for your business needs.

This is Why

REDUCES AIR LOSS BY 22%

Job No: 68855 Client: Work Club Campaign: Sharp/Butterfly Fridge Proof No: 04 Publication: Get Connected Insertion Date: 01/07/2011

Paramount Building, 206-212 St John Street, London, EC1V 4JY t: +44 (0)20 7324 1420 f: +44 (0)20 7324 1455e: [email protected] www.splashworldwide.com

EDITORIAL COMMENT

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We’ve always been in favour of reporting the good news in our industry, talking up the positives

and fi nding reasons to look ahead with as much confi dence as possible.

As we’ve seen over the past few diffi cult years, confi dence is a key element in the economic health of the country. When consumers don’t have confi dence, they don’t spend money at retail. And when people are not buying, the entire economy suff ers.

But while there’s little point in being negative and taking delight – as the mainstream press seems to do – in headlines of doom, there is even less point in pretending there’s not a problem. Just a glance through the news pages of this issue of Get Connected is enough to confi rm there is a problem that, for our retailers, is at least as acute as it’s been at any time since 2008. We report it because it’s there to be reported, and only by facing the facts with a clear-sighted realism can the industry formulate and execute the best strategies for dealing with it.

The Government seems to have woken up very late to the fact that retail, which is the essential interface in the “real” economy (“the part of the economy that is concerned with actually producing goods and services, as opposed to the part of the economy that is concerned with buying and selling on the fi nancial markets”), is suff ering from diffi culties largely beyond its control, and needs support.

There is a lot that can be done, if the will and the expertise is there, to get regulators, legislators, landlords, local authorities, manufacturers and retailers talking together about mutual help. But Governments don’t really have that expertise. It resides in the practitioners, and all the Government can do is listen to them and act on what they say.

In our experience, electrical retailers are among the most astute, commercially aware and self-motivating business people in the country. They are people worth listening to, because they really do understand what

is happening at the grass roots of the real economy, because that is where they are positioned. And they really do have clear ideas, based on solid experience, about what can be done to aid economic recovery.

Having said that, there can be very little doubt that retailing in the UK is undergoing profound and irreversible change, and the traditional model of the High Street simply no longer works for some communities in some locations across the country. New channels, new ways of selling, new ways of engaging consumers and giving them the service, convenience and choice they demand are being opened up. It’s a change that began before the recession, and will only be reinforced as the economy recovers, and any retailer who is not part of managing change will fall victim to it.

So what do you think the Government, and we, as an industry, should be doing now? Do you welcome the appointment of Mary Portas as the fi gurehead of a “save our High Streets” initiative, or is it just another celebrity sticking-plaster applied to a problem that’s bigger, more complex and more intractable?

And what about the proposed removal of the law preventing manufacturers from setting a Recommended Retail Price (RRP) on some classes of electrical goods? Anything that takes away restrictive regulation from our industry has to be welcomed, but will it have the desired eff ect of creating a “level playing fi eld” and helping independents to compete in a price-driven world?

We have gathered opinions from a number of sources (see pages 13-15 in this issue) that may have some readers applauding and others fl inging the magazine across the room in anger.

Either way, it’s good to talk. Please do send your thoughts, opinions, ideas and rants to [email protected]. Heaven knows the country and its Government could do with some real guidance from people who actually make, distribute, sell, install, service or repair electrical goods for a living.

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

Graham SouthernAdvertising Sales

Lynne HenryCommunications Offi cer,

GfK Marketing Services

James McIntoshConsumer Consultant

Will DobsonCreative Director

To become a local stockist and to further understand the benefi ts to your business please contact Lisa Watson on 0208 734 2133 / [email protected]

With a free 5 year warranty, direct delivery, display plan options and instore training, the A+ rated SJ range of refrigerators are cleverly designed with technologies including Plasmacluster and Hybrid Cooling/This is Why the SJ range adds value, sales and profi tability for your business needs.

This is Why

REDUCES AIR LOSS BY 22%

Job No: 68855 Client: Work Club Campaign: Sharp/Butterfly Fridge Proof No: 04 Publication: Get Connected Insertion Date: 01/07/2011

Paramount Building, 206-212 St John Street, London, EC1V 4JY t: +44 (0)20 7324 1420 f: +44 (0)20 7324 1455e: [email protected] www.splashworldwide.com

THE WORD | INDUSTRY NEWS

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The seven-day period that rocked the retail world

As quarter-day fell at the end of June, chaos reigned on planet retail. The catalyst that accelerated

retail collapses at the start of the recession was again seen as instrumental in delivering the fi nal blow that would kill off another round of Britain’s well-known high street names.

In a seven-day period, business failures and store closures at high-profi le retailers such as HomeForm (Moben, Dolphin, Kitchens Direct, Sharps), Habitat, TJ Hughes, Thornton’s, Jane Norman and Carpetright threatened staff jobs and consumer confi dence.

The Retail Trust charity reported a 300% increase in calls to its confi dential helpline in a three-day period from retail employees fearing redundancy. The charity said that the team taking calls, answering e-mails and responding to texts from worried retail staff had seen contacts rise 40% on June of last year, after the aforementioned troubled companies put 10,000 jobs at risk.

Manchester-based HomeForm, which was bought out of administration in 2007 by US private equity fi rm Sun Capital Partners, was the fi rst of the casualties. The Group appointed Deloitte on 23 June after a funding requirement resulting from a trading downturn could not be secured. Shortly after the appointment, the Sharps Bedrooms division was sold to a new company, Sharps Bedrooms Limited, owned by an affi liate of Sun European Partners LLP. The sale was said to have safeguarded 627 of the 1,208 HomeForm jobs.

Within 24 hours of HomeForm’s collapse, Habitat, which had ventured into selling kitchens and appliances, put 30 of its stores outside London into administration and sold its three fl agship stores in the capital to Home Retail Group in a £24.5 million deal.

The heavily indebted Habitat retail operation in the UK was bought in 2009 by private equity group Hilco, which styles itself a “global leader in retail restructuring.” Habitat said that trading conditions had remained challenging for retailers of big-ticket items and a return to profi tability for the business in the UK appeared unlikely.

The failure of such familiar retail names prompted consumer watchdogs to warn shoppers to “protect their cash” when making deposits on expensive items. But the counsel came too late for customers of Kitchens Direct, Moben and Dolphin. Deloitte warned that, unless a sale of the businesses takes place, 453 customers with deposits totalling £1,530,000 who did not pay by debit card, credit card or fi nance agreement were unlikely to receive a refund.

A further 921 customers with deposits totalling £2,584,000 “should be able to reclaim the money from their credit or debit card provider,” Deloitte advised.

The operations of Moben, Dolphin and Kitchens Direct were closed down, and at the time of this magazine going to press, the administrators were engaged in “urgent discussions” with key stakeholders and interested parties in an attempt to sell all or parts of the businesses. 557 staff were made redundant and 24 remain employed by the company “whilst matters are fi nalised.”

On 30 June, discount department store chain TJ Hughes called in administrators after fi ling an intention to do so three days prior, citing the withdrawal of credit facilities and protection against the threat of a wind-up order application from a supplier. The chain had only recently, in March this year, been refi nanced and sold to its management in a secondary buyout backed by private equity fi rm and “turnaround specialist” Endless LLP.

Endless said in a statement: “We have provided TJ Hughes with working capital since March when it was about to fail and knew then that pulling it back from the brink was going to be diffi cult. Trading at the business has continued to be signifi cantly down on last year as a result of diffi cult retail conditions and the loss of supplier and credit insurer confi dence. Sadly, on this occasion, a rescue of the company has not been possible and we will now focus on helping the administrator save stores and jobs.”

On 7 July, restructuring specialist GA Europe acquired Endless’s secured debt arising from TJ Hughes and was appointed to work with administrators Ernst & Young to liquidate stock from the retail chain’s 57 stores.

Joint administrators Tom Jack and Simon Allport stressed that they were still attempting to sell the department store group as a going concern and were in discussions with more than 30 interested parties.

Emmanuel Hembert, principal at global strategy consultancy A.T. Kearney, described the situation on the high street as “a bloodbath”.

“We urged caution about the unexpectedly upbeat retail fi gures in March and April, and we have unfortunately been proved right,” he said. “Economic fundamentals remain weak and are suff ocating consumer spending. March and April were rosy on the surface, but in fact many sectors have experienced a decline in sales for several months in a row.”

Kearney also accused retailers of “eating each other’s lunch”. He said: “In order to continue growing, large retailers are expanding into non-food, putting more high street players at risk. Only the most effi cient through the entire value chain [category management, assortment, logistics, store operations, promotions, pricing...] will survive.”

TOUCH AND PLAY...






DTiM1000C 93cm Piano Induction Hob delivers full zoneless cooking for up to 5 pans








Visit De Dietrich at Grand Designs NEC to play Piano.

Introducing the world’s most advanced

DeDietrich_PIANO_Draftsv2.indd 1 23/06/2011 14:21


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The seven-day period that rocked the retail world

As quarter-day fell at the end of June, chaos reigned on planet retail. The catalyst that accelerated

retail collapses at the start of the recession was again seen as instrumental in delivering the fi nal blow that would kill off another round of Britain’s well-known high street names.

In a seven-day period, business failures and store closures at high-profi le retailers such as HomeForm (Moben, Dolphin, Kitchens Direct, Sharps), Habitat, TJ Hughes, Thornton’s, Jane Norman and Carpetright threatened staff jobs and consumer confi dence.

The Retail Trust charity reported a 300% increase in calls to its confi dential helpline in a three-day period from retail employees fearing redundancy. The charity said that the team taking calls, answering e-mails and responding to texts from worried retail staff had seen contacts rise 40% on June of last year, after the aforementioned troubled companies put 10,000 jobs at risk.

Manchester-based HomeForm, which was bought out of administration in 2007 by US private equity fi rm Sun Capital Partners, was the fi rst of the casualties. The Group appointed Deloitte on 23 June after a funding requirement resulting from a trading downturn could not be secured. Shortly after the appointment, the Sharps Bedrooms division was sold to a new company, Sharps Bedrooms Limited, owned by an affi liate of Sun European Partners LLP. The sale was said to have safeguarded 627 of the 1,208 HomeForm jobs.

Within 24 hours of HomeForm’s collapse, Habitat, which had ventured into selling kitchens and appliances, put 30 of its stores outside London into administration and sold its three fl agship stores in the capital to Home Retail Group in a £24.5 million deal.

The heavily indebted Habitat retail operation in the UK was bought in 2009 by private equity group Hilco, which styles itself a “global leader in retail restructuring.” Habitat said that trading conditions had remained challenging for retailers of big-ticket items and a return to profi tability for the business in the UK appeared unlikely.

The failure of such familiar retail names prompted consumer watchdogs to warn shoppers to “protect their cash” when making deposits on expensive items. But the counsel came too late for customers of Kitchens Direct, Moben and Dolphin. Deloitte warned that, unless a sale of the businesses takes place, 453 customers with deposits totalling £1,530,000 who did not pay by debit card, credit card or fi nance agreement were unlikely to receive a refund.

A further 921 customers with deposits totalling £2,584,000 “should be able to reclaim the money from their credit or debit card provider,” Deloitte advised.

The operations of Moben, Dolphin and Kitchens Direct were closed down, and at the time of this magazine going to press, the administrators were engaged in “urgent discussions” with key stakeholders and interested parties in an attempt to sell all or parts of the businesses. 557 staff were made redundant and 24 remain employed by the company “whilst matters are fi nalised.”

On 30 June, discount department store chain TJ Hughes called in administrators after fi ling an intention to do so three days prior, citing the withdrawal of credit facilities and protection against the threat of a wind-up order application from a supplier. The chain had only recently, in March this year, been refi nanced and sold to its management in a secondary buyout backed by private equity fi rm and “turnaround specialist” Endless LLP.

Endless said in a statement: “We have provided TJ Hughes with working capital since March when it was about to fail and knew then that pulling it back from the brink was going to be diffi cult. Trading at the business has continued to be signifi cantly down on last year as a result of diffi cult retail conditions and the loss of supplier and credit insurer confi dence. Sadly, on this occasion, a rescue of the company has not been possible and we will now focus on helping the administrator save stores and jobs.”

On 7 July, restructuring specialist GA Europe acquired Endless’s secured debt arising from TJ Hughes and was appointed to work with administrators Ernst & Young to liquidate stock from the retail chain’s 57 stores.

Joint administrators Tom Jack and Simon Allport stressed that they were still attempting to sell the department store group as a going concern and were in discussions with more than 30 interested parties.

Emmanuel Hembert, principal at global strategy consultancy A.T. Kearney, described the situation on the high street as “a bloodbath”.

“We urged caution about the unexpectedly upbeat retail fi gures in March and April, and we have unfortunately been proved right,” he said. “Economic fundamentals remain weak and are suff ocating consumer spending. March and April were rosy on the surface, but in fact many sectors have experienced a decline in sales for several months in a row.”

Kearney also accused retailers of “eating each other’s lunch”. He said: “In order to continue growing, large retailers are expanding into non-food, putting more high street players at risk. Only the most effi cient through the entire value chain [category management, assortment, logistics, store operations, promotions, pricing...] will survive.”

TOUCH AND PLAY...






DTiM1000C 93cm Piano Induction Hob delivers full zoneless cooking for up to 5 pans








Visit De Dietrich at Grand Designs NEC to play Piano.

Introducing the world’s most advanced

DeDietrich_PIANO_Draftsv2.indd 1 23/06/2011 14:21


8

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BRC con� rms slight rise in retail salesRetail sales increased in June as stores committed to clearance sales earlier than usual, according to the BRC. While food sales continued to slow, general homewares bene� ted from modest growth, but consumer caution continued to hit big-ticket items.

The monthly BRC-KPMG Retail Sales Monitor showed that, on a total basis, sales rose 1.5% against a 3.4% increase in June 2010.

Noting the spate of shop closure announcements and weak company results in June, BRC Director General Stephen Robertson said the � gures were “not as bad as they could have been.”

UK recovery stallsThe Offi ce for National Statistics has reaffi rmed that UK gross domestic product in volume terms increased by 0.5% in the fi rst quarter of 2011, following a 0.5% fall in the fi nal quarter of 2010. The news confi rms that the UK economy is now stagnant, and some analysts fear that an upturn in the second quarter of the year will not come about.

Consumer spending during the three months fell 0.6%, the biggest decline since the second quarter of 2009, while disposable income fell by 0.8% in the same period, following a drop of 0.9% in the fourth quarter of 2010.

Retail pro� t warnings doubleStruggling retailers issued more pro� t warnings in the � rst half of 2011 than during the whole of the previous year, according to a report released by Ernst & Young.

The business advisory � rm said that listed retailers have issued 26 pro� t warnings so far this year – almost twice as many as in 2009, highlighting the strain on businesses as consumption shrinks under Britain’s ailing economy.

The second quarter of 2011 saw the largest number and proportion of UK quoted companies warning since the peak of 2008.

Alan Hudson, partner and head of restructuring at Ernst & Young UK, said it has been a tough � rst six months of trading for many listed businesses, and it is no surprise that the retail sector continues to suffer.

“The latest � gures show that household disposable income is falling 2.7% year on year, with tax rises, bene� ts cuts and below-in� ation wage increases are really taking their toll on consumers’ ability to part with their cash at the tills,” he said.

The report stated that rising input prices also remain a signi� cant contributor to pro� t warnings, with the weak economic environment making it harder for companies to pass on signi� cant rises in raw materials.

Ernst & Young said that warnings are expected to stay relatively static in the third quarter, barring a further sharp deterioration in growth or credit availability, before increasing in the fourth quarter of the year.

Shop price inflation up in JuneOverall shop price infl ation increased to 2.9% in June from 2.3% in May, according to the BRC-Nielsen Shop Price Index. Food infl ation rose from 4.9% to 5.7%, while non-food increased from 0.8% to 1.3%.

BRC Director General Stephen Robertson said: “Real disposable incomes have dropped the most in 34 years but increasing petrol and energy bills plus low wage rises are the main causes.

“Shop prices are going up much more slowly than the wider Consumer Prices Index. Overall shop price infl ation is being driven by surging world commodity prices, the eff ect of the weak pound on import costs and higher VAT – all beyond retailers’ control.

“Considering January’s VAT rise, non-food infl ation is still very low.”

South of England suff ers highest number of retail store closuresData released by PwC revealed that nearly half of multiple retail store closures recorded in 300 UK town centres during the fi rst fi ve months of this year were located in the South of England.

The report, compiled by the Local Data Company on behalf of PwC, said that UK retailers have closed 20 stores a day on average this year, and showed that the South bore the brunt of the retail downturn to the tune of 1,036 of the 2,156 closures nationwide.

PwC’s latest retail insolvency statistics for Q2 2011, released on the same day, recorded 375 retail insolvencies, a rise of 9% on the same period last year.

Mike Jervis, PwC insolvency partner and retail specialist, said retailers will continue to struggle for the next six months.

Since the start of the recession, fi nancially troubled retailers have closed, or plan to close, an average of half of their store portfolios, according to PwC. Mark Hudson, retail and consumer leader at the fi rm, said “we are seeing a repeat of the buying behaviours we saw in the second half of 2008. The next challenge,” he added, “is going to be planning sales and securing stock for Christmas. There are going to be some tough negotiations in the coming months.”

Robertson commented that underlying conditions in retail are “still tough” and being masked by a minor revival in non-food sales, driven by price cuts and clearance events starting earlier in the year.

“It shows just how tough times are when total sales growth of 1.5% is regarded as not that bad,” he added.

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Dixons announces £224.1 million pre-tax loss Dixons Retail issued preliminary results for the year to April 2011 showing a pre-tax loss of £224.1 million. Excluding the £309.4 million impairment charge following the shutdown of business in Spain and writing down the value of online business Pixmania and operations in Greece, the group made a pro� t of £85.3 million, which was in line with market expectations.

Total sales in the UK & Ireland fell 5% to £3,816.1 million, and like-for-like sales were down 3% across the year. Underlying operating pro� t for the full year was £71.3 million, a slight improvement on the previous year’s £71.1 million.

The UK & Ireland performance was described by the company as “encouraging in the context of a weak market.”

Comet year-end losses amount to £8.9 million Kesa Electricals announced the closure of 17 Comet stores after the chain posted losses of £8.9 million for the year ended 30 April 2011. In its end of year statement Kesa said that two stores traded below breakeven and 31 failed to fully absorb Comet’s fi xed cost base.

Despite a positive start to the fi nancial year, trading at Comet over the Christmas and New Year period failed to off set earlier weakness in the market and tougher conditions in the fi nal quarter. Total revenue fell 6.8% to £1,537.9 million compared to F/Y 2010 (7.7% on a like-for-like basis).

Within days of releasing its year-end results, Kesa Chairman David Newlands confi rmed speculation that the sale of the Comet chain was under consideration.

Knight Vinke moves to quash Comet media rumourKesa Electricals’ biggest investor has moved to clarify its stance on the sale of Comet following recent media reports suggesting it is opposed to the disposal.

Shareholder Knight Vinke said in a statement: “We confi rm that we have not at any stage said that we would be opposed to a sale of Comet. On the contrary, we would have no objection to Kesa selling Comet today, subject to Kesa obtaining an acceptable price and the process not being drawn out beyond the two to three months that the board has indicated it will take to sell the business.”

The investor added that it would not support any plan to close down or liquidate Comet if there were other alternatives for the 250-store chain and has put forward a plan that it wants the Kesa board to assess while simultaneously considering the sale of Comet.

Both parties expect Kesa should be able to update the market by the time of its annual shareholders meeting in September.

BrightHouse reports double-digit profi t riseRent-to-buy electricals and furniture retailer BrightHouse has posted a 16.4% rise in underlying EBITDA to £39.7 million in the year to March 31. Revenue rose 15.4% to £227.7 million, while operating profi t increased to £33.6 million from £24.8 million in the year prior. Like-for-like revenue grew 9.2%.

The 228-store retailer opened 30 new outlets during its 2010/11 fi nancial year and a further 30 are planned for this year. Chief executive Leo McKee said: “Despite the travails of the High Street, we continue to see customer demand for our products and services remain relatively buoyant. The current fi nancial year has started in line with management expectations and we are working towards delivering another positive year.”

Refocusing HMV Group announces poor resultsHMV, having refi nanced and undertaken a restructuring and refocusing that will see the Group, among other things, expanding its range of consumer electronics products, has announced a profi t before tax and exceptional items for the 53 weeks to 30 April 2011 of £18.8 million. Exceptional & impairment charges, however, pushed the Group into total losses of £121.7 million.

Having taken the £111.5 million hit in non-cash impairment charges for the Waterstone’s book store and HMV Canada disposals, the plan is now to refi t some 150 outlets by September, in time for the Christmas sales period. With sales of traditional music and video carriers being severely hit by downloads and supermarket competition, the refocused HMV is aiming to create a wider entertainment-based off ering that will include consumer electronics hardware, MP3 players, tablets and headphones.

“HMV remains a world-class entertainment brand,” said CE Simon Fox, “and we now have a very clear focus and strategy to drive cash generation and cost reduction, reinvigorate the customer off er and further diversify the Group into the growth areas of live, ticketing and digital.”

Best Buy UK losses dampen CW preliminary resultsCarphone Warehouse, 50% owner of Best Buy Europe, reported in Group preliminary results that Best Buy UK, which opened its fi rst store here in April 2010 and now has ten “Big Box” outlets in the UK, has racked up losses of £62.2 million for the 12 months to 31 March 2011.

The Best Buy UK losses are in stark contrast to Carphone Warehouse Group’s other divisions (overall Group earnings up 67% to £63.3m), and highlight the diffi culty Best Buy has had in launching and establishing a specialist electrical retail chain in the UK in the teeth of a severe and continuing economic downturn.

The reported £62.2 million loss is some £50 million more than forecast. The joint venture was always prepared to take a substantial initial hit to establish Best Buy in the UK, but under current conditions, with other specialist electrical chains struggling, speculation over Kesa selling off its Comet operation and a predicted gloomy outlook over the next few years, £62 million may be a hit too far.


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BRC con� rms slight rise in retail salesRetail sales increased in June as stores committed to clearance sales earlier than usual, according to the BRC. While food sales continued to slow, general homewares bene� ted from modest growth, but consumer caution continued to hit big-ticket items.

The monthly BRC-KPMG Retail Sales Monitor showed that, on a total basis, sales rose 1.5% against a 3.4% increase in June 2010.

Noting the spate of shop closure announcements and weak company results in June, BRC Director General Stephen Robertson said the � gures were “not as bad as they could have been.”

UK recovery stallsThe Offi ce for National Statistics has reaffi rmed that UK gross domestic product in volume terms increased by 0.5% in the fi rst quarter of 2011, following a 0.5% fall in the fi nal quarter of 2010. The news confi rms that the UK economy is now stagnant, and some analysts fear that an upturn in the second quarter of the year will not come about.

Consumer spending during the three months fell 0.6%, the biggest decline since the second quarter of 2009, while disposable income fell by 0.8% in the same period, following a drop of 0.9% in the fourth quarter of 2010.

Retail pro� t warnings doubleStruggling retailers issued more pro� t warnings in the � rst half of 2011 than during the whole of the previous year, according to a report released by Ernst & Young.

The business advisory � rm said that listed retailers have issued 26 pro� t warnings so far this year – almost twice as many as in 2009, highlighting the strain on businesses as consumption shrinks under Britain’s ailing economy.

The second quarter of 2011 saw the largest number and proportion of UK quoted companies warning since the peak of 2008.

Alan Hudson, partner and head of restructuring at Ernst & Young UK, said it has been a tough � rst six months of trading for many listed businesses, and it is no surprise that the retail sector continues to suffer.

“The latest � gures show that household disposable income is falling 2.7% year on year, with tax rises, bene� ts cuts and below-in� ation wage increases are really taking their toll on consumers’ ability to part with their cash at the tills,” he said.

The report stated that rising input prices also remain a signi� cant contributor to pro� t warnings, with the weak economic environment making it harder for companies to pass on signi� cant rises in raw materials.

Ernst & Young said that warnings are expected to stay relatively static in the third quarter, barring a further sharp deterioration in growth or credit availability, before increasing in the fourth quarter of the year.

Shop price inflation up in JuneOverall shop price infl ation increased to 2.9% in June from 2.3% in May, according to the BRC-Nielsen Shop Price Index. Food infl ation rose from 4.9% to 5.7%, while non-food increased from 0.8% to 1.3%.

BRC Director General Stephen Robertson said: “Real disposable incomes have dropped the most in 34 years but increasing petrol and energy bills plus low wage rises are the main causes.

“Shop prices are going up much more slowly than the wider Consumer Prices Index. Overall shop price infl ation is being driven by surging world commodity prices, the eff ect of the weak pound on import costs and higher VAT – all beyond retailers’ control.

“Considering January’s VAT rise, non-food infl ation is still very low.”

South of England suff ers highest number of retail store closuresData released by PwC revealed that nearly half of multiple retail store closures recorded in 300 UK town centres during the fi rst fi ve months of this year were located in the South of England.

The report, compiled by the Local Data Company on behalf of PwC, said that UK retailers have closed 20 stores a day on average this year, and showed that the South bore the brunt of the retail downturn to the tune of 1,036 of the 2,156 closures nationwide.

PwC’s latest retail insolvency statistics for Q2 2011, released on the same day, recorded 375 retail insolvencies, a rise of 9% on the same period last year.

Mike Jervis, PwC insolvency partner and retail specialist, said retailers will continue to struggle for the next six months.

Since the start of the recession, fi nancially troubled retailers have closed, or plan to close, an average of half of their store portfolios, according to PwC. Mark Hudson, retail and consumer leader at the fi rm, said “we are seeing a repeat of the buying behaviours we saw in the second half of 2008. The next challenge,” he added, “is going to be planning sales and securing stock for Christmas. There are going to be some tough negotiations in the coming months.”

Robertson commented that underlying conditions in retail are “still tough” and being masked by a minor revival in non-food sales, driven by price cuts and clearance events starting earlier in the year.

“It shows just how tough times are when total sales growth of 1.5% is regarded as not that bad,” he added.

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Dixons announces £224.1 million pre-tax loss Dixons Retail issued preliminary results for the year to April 2011 showing a pre-tax loss of £224.1 million. Excluding the £309.4 million impairment charge following the shutdown of business in Spain and writing down the value of online business Pixmania and operations in Greece, the group made a pro� t of £85.3 million, which was in line with market expectations.

Total sales in the UK & Ireland fell 5% to £3,816.1 million, and like-for-like sales were down 3% across the year. Underlying operating pro� t for the full year was £71.3 million, a slight improvement on the previous year’s £71.1 million.

The UK & Ireland performance was described by the company as “encouraging in the context of a weak market.”

Comet year-end losses amount to £8.9 million Kesa Electricals announced the closure of 17 Comet stores after the chain posted losses of £8.9 million for the year ended 30 April 2011. In its end of year statement Kesa said that two stores traded below breakeven and 31 failed to fully absorb Comet’s fi xed cost base.

Despite a positive start to the fi nancial year, trading at Comet over the Christmas and New Year period failed to off set earlier weakness in the market and tougher conditions in the fi nal quarter. Total revenue fell 6.8% to £1,537.9 million compared to F/Y 2010 (7.7% on a like-for-like basis).

Within days of releasing its year-end results, Kesa Chairman David Newlands confi rmed speculation that the sale of the Comet chain was under consideration.

Knight Vinke moves to quash Comet media rumourKesa Electricals’ biggest investor has moved to clarify its stance on the sale of Comet following recent media reports suggesting it is opposed to the disposal.

Shareholder Knight Vinke said in a statement: “We confi rm that we have not at any stage said that we would be opposed to a sale of Comet. On the contrary, we would have no objection to Kesa selling Comet today, subject to Kesa obtaining an acceptable price and the process not being drawn out beyond the two to three months that the board has indicated it will take to sell the business.”

The investor added that it would not support any plan to close down or liquidate Comet if there were other alternatives for the 250-store chain and has put forward a plan that it wants the Kesa board to assess while simultaneously considering the sale of Comet.

Both parties expect Kesa should be able to update the market by the time of its annual shareholders meeting in September.

BrightHouse reports double-digit profi t riseRent-to-buy electricals and furniture retailer BrightHouse has posted a 16.4% rise in underlying EBITDA to £39.7 million in the year to March 31. Revenue rose 15.4% to £227.7 million, while operating profi t increased to £33.6 million from £24.8 million in the year prior. Like-for-like revenue grew 9.2%.

The 228-store retailer opened 30 new outlets during its 2010/11 fi nancial year and a further 30 are planned for this year. Chief executive Leo McKee said: “Despite the travails of the High Street, we continue to see customer demand for our products and services remain relatively buoyant. The current fi nancial year has started in line with management expectations and we are working towards delivering another positive year.”

Refocusing HMV Group announces poor resultsHMV, having refi nanced and undertaken a restructuring and refocusing that will see the Group, among other things, expanding its range of consumer electronics products, has announced a profi t before tax and exceptional items for the 53 weeks to 30 April 2011 of £18.8 million. Exceptional & impairment charges, however, pushed the Group into total losses of £121.7 million.

Having taken the £111.5 million hit in non-cash impairment charges for the Waterstone’s book store and HMV Canada disposals, the plan is now to refi t some 150 outlets by September, in time for the Christmas sales period. With sales of traditional music and video carriers being severely hit by downloads and supermarket competition, the refocused HMV is aiming to create a wider entertainment-based off ering that will include consumer electronics hardware, MP3 players, tablets and headphones.

“HMV remains a world-class entertainment brand,” said CE Simon Fox, “and we now have a very clear focus and strategy to drive cash generation and cost reduction, reinvigorate the customer off er and further diversify the Group into the growth areas of live, ticketing and digital.”

Best Buy UK losses dampen CW preliminary resultsCarphone Warehouse, 50% owner of Best Buy Europe, reported in Group preliminary results that Best Buy UK, which opened its fi rst store here in April 2010 and now has ten “Big Box” outlets in the UK, has racked up losses of £62.2 million for the 12 months to 31 March 2011.

The Best Buy UK losses are in stark contrast to Carphone Warehouse Group’s other divisions (overall Group earnings up 67% to £63.3m), and highlight the diffi culty Best Buy has had in launching and establishing a specialist electrical retail chain in the UK in the teeth of a severe and continuing economic downturn.

The reported £62.2 million loss is some £50 million more than forecast. The joint venture was always prepared to take a substantial initial hit to establish Best Buy in the UK, but under current conditions, with other specialist electrical chains struggling, speculation over Kesa selling off its Comet operation and a predicted gloomy outlook over the next few years, £62 million may be a hit too far.


10

Linsar meets demand for “convenient sized” TV screens Demand from the independent channel has prompted Linsar UK to launch a 26” model into its Titanium LED range.

The new Full HD unit has an integral DVD Player, Freeview, EPG, HDMI and PC inputs. All models in the range have a Plug, Play & Record facility, easy-to-use remote control and come with a 5-year product warranty.

Linsar Director Terry Reed said: “We treat feedback from our loyal customers very seriously and so when demand for a 26” screen was evident due to a gap in the market, we realised the opportunity and moved fast with a solution.”

Electrolux to implement prices increases in EuropeElectrolux has confirmed that it intends to increase prices in European markets to off set the rising costs of raw materials and transport. The company said in a statement that appliance prices will rise by 5% to 7%, eff ective from 1st October this year.

Bosch has been named ‘Best Large Home Appliance Brand’ in the Which? Awards 2011 for the second time. The brand previously won the title in 2009.

Which? has awarded Best Buys to Kenwood’s Major Titanium (KM020), Chef Classic (KM336), kMix Stand Mixer (KMX series), Mini Chopper (CH250) and kMix 1.6L jug kettle (SJM040 series).

Smeg has launched a range of glass splash-backs in 8 colours to complement the brand’s collection of coloured FAB and stainless steel appliances. Products are available in a selection of heights and widths, in Black, Cream, Red, Pastel Blue, Lime, Silver, Matt Black and Matt White.

Samsung has launched a £3 million marketing campaign for its � agship ecobubble™ washing machine range. The initiative includes print, PR, TV and digital elements, and focuses the energy-ef� cient bene� ts of the appliance.

KEF has kicked off its 50th anniversary activities with a trade-in initiative running until 1 October 2011. Consumers trading-in old speakers of any age and brand at participating KEF retailers will be eligible for a 20% discount off any model from the multi-award winning KEF Q- and T-Series ranges.

Built-in appliance leader Neff has teamed up with Macmillan Cancer Support to hold ‘The World’s Biggest Coffee Morning’ on Friday 30th September, hosting a series of events on the day in conjunction with designated kitchen specialist dealers nationwide.

Haier has launched a nationwide UK consumer advertising campaign focusing on its MyZone cooling products. The four-month promotion will run in key lifestyle magazines and national newspaper supplements, with supporting online activity and a dedicated website at www.myzonebyhaier.com

Sky freezes subscription pricesSky has announced a freeze on its subscription charges until at least September 2012, saying the move will give customers peace of mind at a time when many other household bills are on the rise.

The price freeze applies to all TV, broadband and talk products from 1st September 2011.

Samsung forecasts 26% fall in Q2 operating pro� tsSamsung Electronics has forecast Q2 operating pro� t of 3.7 trillion won ($3.48

billion), a 26% decline on the record 5.01

trillion won recorded a year earlier. Giving

its earnings guidance ahead of the release

of of� cial results, the company estimated

Q2 revenue at 39 trillion won, a 2.9%

increase from 37.89 trillion in the same

quarter of 2010. No estimate for net pro� t

was released.

Panasonic moves to close Cardiff TV Design CentrePanasonic has announced that it is considering closing its Television Design Centre in Cardiff and relocating work to Japan in a move which could threaten almost 140 jobs.

The company made the announcement to staff on Friday 1 July and requested that the union enter into a consultation process. The union representing staff at the centre said the announcement came as “a complete surprise.”

In a statement, the company said: “It is Panasonic’s aim for all areas of its business to be pro� table and we are looking at options to consolidate our design efforts from Panasonic Manufacturing (PMUK) Television Design Centre in Cardiff to Japan.

“The potential transfer of these business functions will help ensure that Panasonic’s European TV business will remain competitive while delivering high quality with a lower competitive product cost.

“If this consolidation goes ahead, it is likely to have a signi� cant impact on the 138 employees who work within the PMUK Television Design Centre and potentially some shared service support functions. The other business units at PMUK are not affected.

“A period of consultation is now under way. Until this has concluded, Panasonic has no further comment.”

First new-format Sony Centre retail store opens in Wimbledon Former Wimbledon champion Martina Navratilova and Sony Europe MD Gildas Pelliet (pictured) opened the fi rst new-format Sony Centre retail store on 21 June in Wimbledon’s Centre Court shopping centre. The 128-square metre outlet is the fi rst of its kind in the UK and adopts the new global retail format, designed to help customers personally interact and engage with Sony’s products as they would in a home environment.

The store is totally open-fronted and inviting, incorporates a bright pallet of colours and features world class architecture and design. Its modular layout has product set out for customers to get up close and hands-on.

Roy Dickens, Retail Director for Sony UK, commented: “Sony’s goal is always to exceed customer expectations, and feedback from them tells us that they want to be excited by an interactive and entertaining shopping experience. Our new store concept gives shoppers an opportunity to engage with trained and knowledgeable staff as they play, and to experience the right Sony proposition for their needs.”

The timing, the location and the presence of Martina Navratilova at the opening could not have been more appropriate. The fi rst week of Wimbledon was well underway and Sony was ready to fi lm and broadcast the fi nals in 3D.

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“Eco � rst” for Glen Dimplex Home AppliancesGlen Dimplex Home Appliances has announced that it has become the � rst

company to be approved by the EST

Recommended scheme across all three

cooking sectors: freestanding, built-in and

range cooking.

Almost a hundred products in the Stoves,

Belling and New World brands’ cooking

collections were judged to be amongst some

of the most energy ef� cient on the market.

GDHA CE Denver Hewlett said: “Our

production and technical teams, led by

Mark Baker, our Head of Research &

Development, have worked alongside the

Energy Saving Trust for the last two months,

assisting them in the painstaking testing

process. To have this of� cial endorsement

of our products is a great reward for the

months of hard work and research that

have gone into creating products that are

genuinely greener.”


Hotpoint marks its 100th anniversary with the launch of a new microsite celebrating the brand’s history. www.hotpoint100.co.uk contains footage of old ads, facts about the brand, and promotions such as an invitation to post a picture of an old Hotpoint appliance for the opportunity to win a brand new one. Retailers can download a range of posters, bunting, product stickers and lea� ets.

Smeg is giving away a genuine England rugby shirt to purchasers of its St George FAB28 fridge in a promotion that runs until 31 October 2011. Retailers are being offered a special display incentive, and a competition for the best St George FAB window display is being held. The winner will receive the funding to kit out a local junior rugby team of their choice.

Headphone specialist Sennheiser has become the � rst consumer electronics company to join Brand-i, a website directory dedicated to listing approved online stores selling genuine products, which has the backing of bodies such as the Trading Standards Institute and the Industry Trust.

Beko has entered into a year-long sponsorship of the LMFM Outside Broadcast Unit ‘Roadrunner’ to support local retailers in the North East of Ireland and drive the Beko brand message to a wider consumer audience. Beko will be promoted on air and online throughout the sponsorship period.

Roberts Radio has introduced its � rst internet-only radio compatible with ConnectR, the brand’s recently-launched iPhone / iTouch app which is available free of charge from the app store. The new STREAM 105 has an RRP of £100.

Independent electrical dealers and installers urged to join indi.co.ukA relatively new website promoting members of the independent electrical retail and installation industry in a convenient search directory is said to be going from strength to strength. www.indi.co.uk was established by Phil Millington of The Satellite Shop in Tunbridge Wells in the second half of 2010 as a resource for consumers and trade and now has almost 6,000 industry members listed.

Explaining the concept behind indi.co.uk, Millington said it was an idea he had on the backburner for a few years. “Although many manufacturers, distributors and associations have dealer locators on their websites, they are often diffi cult to fi nd and use. Indi provides multiple tag searches so an end-user can search for dealers that sell [for example] fl at screen TVs and TV aerial installation and are CAI members in London.

“The project has grown considerably in size and we now have a website for the industry

that will evolve into a useful utility for the public and trade alike.”

To enable both aforementioned parties to get the best from the site, Millington is urging all independents to ensure their details are logged on the search directory.

He is also looking for industry members and affi liates to help with content for the website category pages. The intention is that every category listed will have a facing page containing unbiased information about a particular product area or service, the purpose being to “help the reader make an informed decision and hopefully a purchase decision.”

“We know it is content and relevance that is important and the category pages with the most relevant content are getting the most impressions and clicks,” Millington said.

For further information: 01892 548468 or e-mail [email protected]


10

Linsar meets demand for “convenient sized” TV screens Demand from the independent channel has prompted Linsar UK to launch a 26” model into its Titanium LED range.

The new Full HD unit has an integral DVD Player, Freeview, EPG, HDMI and PC inputs. All models in the range have a Plug, Play & Record facility, easy-to-use remote control and come with a 5-year product warranty.

Linsar Director Terry Reed said: “We treat feedback from our loyal customers very seriously and so when demand for a 26” screen was evident due to a gap in the market, we realised the opportunity and moved fast with a solution.”

Electrolux to implement prices increases in EuropeElectrolux has confirmed that it intends to increase prices in European markets to off set the rising costs of raw materials and transport. The company said in a statement that appliance prices will rise by 5% to 7%, eff ective from 1st October this year.

Bosch has been named ‘Best Large Home Appliance Brand’ in the Which? Awards 2011 for the second time. The brand previously won the title in 2009.

Which? has awarded Best Buys to Kenwood’s Major Titanium (KM020), Chef Classic (KM336), kMix Stand Mixer (KMX series), Mini Chopper (CH250) and kMix 1.6L jug kettle (SJM040 series).

Smeg has launched a range of glass splash-backs in 8 colours to complement the brand’s collection of coloured FAB and stainless steel appliances. Products are available in a selection of heights and widths, in Black, Cream, Red, Pastel Blue, Lime, Silver, Matt Black and Matt White.

Samsung has launched a £3 million marketing campaign for its � agship ecobubble™ washing machine range. The initiative includes print, PR, TV and digital elements, and focuses the energy-ef� cient bene� ts of the appliance.

KEF has kicked off its 50th anniversary activities with a trade-in initiative running until 1 October 2011. Consumers trading-in old speakers of any age and brand at participating KEF retailers will be eligible for a 20% discount off any model from the multi-award winning KEF Q- and T-Series ranges.

Built-in appliance leader Neff has teamed up with Macmillan Cancer Support to hold ‘The World’s Biggest Coffee Morning’ on Friday 30th September, hosting a series of events on the day in conjunction with designated kitchen specialist dealers nationwide.

Haier has launched a nationwide UK consumer advertising campaign focusing on its MyZone cooling products. The four-month promotion will run in key lifestyle magazines and national newspaper supplements, with supporting online activity and a dedicated website at www.myzonebyhaier.com

Sky freezes subscription pricesSky has announced a freeze on its subscription charges until at least September 2012, saying the move will give customers peace of mind at a time when many other household bills are on the rise.

The price freeze applies to all TV, broadband and talk products from 1st September 2011.

Samsung forecasts 26% fall in Q2 operating pro� tsSamsung Electronics has forecast Q2 operating pro� t of 3.7 trillion won ($3.48

billion), a 26% decline on the record 5.01

trillion won recorded a year earlier. Giving

its earnings guidance ahead of the release

of of� cial results, the company estimated

Q2 revenue at 39 trillion won, a 2.9%

increase from 37.89 trillion in the same

quarter of 2010. No estimate for net pro� t

was released.

Panasonic moves to close Cardiff TV Design CentrePanasonic has announced that it is considering closing its Television Design Centre in Cardiff and relocating work to Japan in a move which could threaten almost 140 jobs.

The company made the announcement to staff on Friday 1 July and requested that the union enter into a consultation process. The union representing staff at the centre said the announcement came as “a complete surprise.”

In a statement, the company said: “It is Panasonic’s aim for all areas of its business to be pro� table and we are looking at options to consolidate our design efforts from Panasonic Manufacturing (PMUK) Television Design Centre in Cardiff to Japan.

“The potential transfer of these business functions will help ensure that Panasonic’s European TV business will remain competitive while delivering high quality with a lower competitive product cost.

“If this consolidation goes ahead, it is likely to have a signi� cant impact on the 138 employees who work within the PMUK Television Design Centre and potentially some shared service support functions. The other business units at PMUK are not affected.

“A period of consultation is now under way. Until this has concluded, Panasonic has no further comment.”

First new-format Sony Centre retail store opens in Wimbledon Former Wimbledon champion Martina Navratilova and Sony Europe MD Gildas Pelliet (pictured) opened the fi rst new-format Sony Centre retail store on 21 June in Wimbledon’s Centre Court shopping centre. The 128-square metre outlet is the fi rst of its kind in the UK and adopts the new global retail format, designed to help customers personally interact and engage with Sony’s products as they would in a home environment.

The store is totally open-fronted and inviting, incorporates a bright pallet of colours and features world class architecture and design. Its modular layout has product set out for customers to get up close and hands-on.

Roy Dickens, Retail Director for Sony UK, commented: “Sony’s goal is always to exceed customer expectations, and feedback from them tells us that they want to be excited by an interactive and entertaining shopping experience. Our new store concept gives shoppers an opportunity to engage with trained and knowledgeable staff as they play, and to experience the right Sony proposition for their needs.”

The timing, the location and the presence of Martina Navratilova at the opening could not have been more appropriate. The fi rst week of Wimbledon was well underway and Sony was ready to fi lm and broadcast the fi nals in 3D.

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“Eco � rst” for Glen Dimplex Home AppliancesGlen Dimplex Home Appliances has announced that it has become the � rst

company to be approved by the EST

Recommended scheme across all three

cooking sectors: freestanding, built-in and

range cooking.

Almost a hundred products in the Stoves,

Belling and New World brands’ cooking

collections were judged to be amongst some

of the most energy ef� cient on the market.

GDHA CE Denver Hewlett said: “Our

production and technical teams, led by

Mark Baker, our Head of Research &

Development, have worked alongside the

Energy Saving Trust for the last two months,

assisting them in the painstaking testing

process. To have this of� cial endorsement

of our products is a great reward for the

months of hard work and research that

have gone into creating products that are

genuinely greener.”


Hotpoint marks its 100th anniversary with the launch of a new microsite celebrating the brand’s history. www.hotpoint100.co.uk contains footage of old ads, facts about the brand, and promotions such as an invitation to post a picture of an old Hotpoint appliance for the opportunity to win a brand new one. Retailers can download a range of posters, bunting, product stickers and lea� ets.

Smeg is giving away a genuine England rugby shirt to purchasers of its St George FAB28 fridge in a promotion that runs until 31 October 2011. Retailers are being offered a special display incentive, and a competition for the best St George FAB window display is being held. The winner will receive the funding to kit out a local junior rugby team of their choice.

Headphone specialist Sennheiser has become the � rst consumer electronics company to join Brand-i, a website directory dedicated to listing approved online stores selling genuine products, which has the backing of bodies such as the Trading Standards Institute and the Industry Trust.

Beko has entered into a year-long sponsorship of the LMFM Outside Broadcast Unit ‘Roadrunner’ to support local retailers in the North East of Ireland and drive the Beko brand message to a wider consumer audience. Beko will be promoted on air and online throughout the sponsorship period.

Roberts Radio has introduced its � rst internet-only radio compatible with ConnectR, the brand’s recently-launched iPhone / iTouch app which is available free of charge from the app store. The new STREAM 105 has an RRP of £100.

Independent electrical dealers and installers urged to join indi.co.ukA relatively new website promoting members of the independent electrical retail and installation industry in a convenient search directory is said to be going from strength to strength. www.indi.co.uk was established by Phil Millington of The Satellite Shop in Tunbridge Wells in the second half of 2010 as a resource for consumers and trade and now has almost 6,000 industry members listed.

Explaining the concept behind indi.co.uk, Millington said it was an idea he had on the backburner for a few years. “Although many manufacturers, distributors and associations have dealer locators on their websites, they are often diffi cult to fi nd and use. Indi provides multiple tag searches so an end-user can search for dealers that sell [for example] fl at screen TVs and TV aerial installation and are CAI members in London.

“The project has grown considerably in size and we now have a website for the industry

that will evolve into a useful utility for the public and trade alike.”

To enable both aforementioned parties to get the best from the site, Millington is urging all independents to ensure their details are logged on the search directory.

He is also looking for industry members and affi liates to help with content for the website category pages. The intention is that every category listed will have a facing page containing unbiased information about a particular product area or service, the purpose being to “help the reader make an informed decision and hopefully a purchase decision.”

“We know it is content and relevance that is important and the category pages with the most relevant content are getting the most impressions and clicks,” Millington said.

For further information: 01892 548468 or e-mail [email protected]

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RETAIL REVIEWRETAIL REVIEW

that was already well under way before the recession. The recession simply accelerated and exacerbated a shift in consumer demand that had begun decades before. The choice to shun the High Street in favour of the quicker, more convenient, free parking, once-a-week trip to the supermarket had already been made by signifi cant numbers of consumers.

The High Street is undoubtedly changing, but we are not at the beginning of a “new era” in retail: we are already a lot further down the road of change than that.

The consumer has spokenSeen in this light, it’s been suggested that the decline of some High Streets in some locations has to be accepted as a natural process: part

of changing social structures and changing consumer demands. A High Street that grew organically, sometimes over centuries, to serve a specifi c community cannot expect to go on serving it when that community has radically changed. Many people don’t work where they live any more. In households where everybody goes to work, there’s no longer a dedicated

“homemaker” for whom shopping is a task that can be allotted precious time. There’s a generation that doesn’t actually want to spend time chatting

with the butcher and the baker while being individually “served” with their purchases. There’s a generation that uses public transport only when there’s no alternative (such as the commuter train to work) and uses the car whenever possible. For these consumers, the big, single-location, by-car, easy free parking trip to the supermarket or out-of-town megastore is the natural choice.

There’s been more blood on the pavements. Names such as Habitat, HomeForm (Kitchens Direct,

Moben, Dolphin, Sharps), T. J. Hughes, Jane Norman and Focus have bitten the dust. Dixons has taken a huge hit on closure of its operations in Spain. Kesa was reportedly thinking of selling Comet and pulling out of the UK.

As well as this fresh crop of retail failures and diffi culties, there has been a rash of reports charting UK retail in crisis: the BRC-KPMG Sales Monitor for May showed a like-for-like drop in sales value of 2.1%, providing a “more realistic refl ection of how tough conditions on the High Street really are”; the infl uential Item Club has predicted ten years of hard times and slow retail growth; and a uSwitch.com survey of consumers showed that only 6% of shoppers remain loyal to their high streets, with boarded-up shops, lack of choice, expensive parking and generally “shabby” appearance being cited as the main turn-off s.

Gurus galoreFailure of more high-profi le household names, and “evidence” that High Streets are falling into disuse and decrepitude, have sparked a fl urry of concern in the general media, and gurus have been in demand on TV and radio and in the papers, giving opinions on what’s wrong with retail, how it might be fi xed, and the steps necessary to “save the High Street.” Much of the focus has been on countering the eff ects of the recession, fi nding fast fi xes for shabby high streets, expensive parking, high rents and rates, lack of public transport. And, of course, that perennial argument about supermarkets and out-of-town megastores killing the independents.

But there is a body of opinion that believes the faults in the UK’s High Streets are not the cause of their decline, but a result of it. Poor choice of shops, lack of public transport, boarded-up premises, rents and rates disproportionate to turnover, a general air of shabbiness and neglect are, some say, the results of a change in shopping habits

“…the faults in the UK’s High Streets are not the cause of their decline, but a result of it”

Can the UK’s High Streets be � xed, or is the whole concept past its sell-by date? Is there a way back for the “traditional” British retail experience, or have the new needs and habits of consumers already evolved to the point where it can no longer satisfy their 21st century demands? Get Connected takes a look at these complex questions, with the help of opinions - probably controversial - gathered from inside and outside our industry.


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Doorway to heaven?A FAB way to go…A Smeg FAB fridge has been used as the doorway to a “secret” cellar bar in one of London’s trendiest watering holes. The recently opened

Breakfast Club on Spital� elds’ Artillery Lane installed the adapted

appliance as a covert entrance to its moodily-lit basement bar ‘The

Mayor of Scaredy Cat Town’. Customers are invited to walk through

the Smeg fridge to discover the hidden jewel, which is already

renowned for a range of cocktails including American classics.

The Mayor of Scaredy Cat Town can be found “Behind the Smeg Fridge, The

Breakfast Club, 12-16 Artillery Lane, Liverpool Street E1 7LS”

GDHA looks for the ‘Face of New World’GDHA brand New World has launched a campaign to fi nd the ‘Face of New World’ as the brand image is revamped in a bolder, stylish and younger fashion. Consumers are invited to compete for the title which will provide the opportunity to become an ambassador for the brand, tweeting and blogging on its behalf and attending interiors exhibitions, design shows, fashion and food events.

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

Swan teams up with TV show Come Dine With MeSmall appliance brand Swan is to introduce a range of products which it says will be the “must have” in electrical goods in the run up to Christmas. The company has confi rmed a licensing deal with ITV Studios for the popular reality show Come Dine With Me and will launch the new collection in September.

The range of ‘table theatre’ items will come with a recipe book and game pack, so dinner hosts can be judged in a manor similar to that of the TV show. Cooks will be encouraged to add their recipe successes and disasters, pictures and scores to the Come Dine With Me by Swan facebook page.

Electrolux marks fi rst year of Vac from the Sea projectElectrolux is marking the fi rst anniversary of its ‘Vac from the Sea’ project with a consumer initiative entitled “A Cleaner Ocean, One Vacuum Cleaner at a Time”.

The Vac from the Sea project involved Electrolux building a number of unique concept vacuums using plastic trash gathered from the sea. Now the mission is continuing with 1.5% of sales from all Electrolux Green Range cleaners sold in Europe going directly to Algalita and its partner organisation 5 Gyres, who together analyze plastic pollution and its severe eff ects on the marine environment.

The in-store promotion includes new packaging, in-store presentations and fi lms.

Vax unveils world’s fi rst cardboard vacuum cleanerFloorcare brand Vax is supporting young British design talent with the production of the “world’s fi rst” cardboard vacuum cleaner, designed by Loughborough University student, Jake Tyler.

The Vax ev is constructed for optimum sustainability using recycled and recyclable materials that reduce the burden on landfi ll. The corrugated cardboard panels that form the body of the appliance are easily replaced if damaged and cost a tenth of the price of an equivalent plastic panel. They are multi-purpose, too, starting off as part of the box the vacuum cleaner is sold in. Once the cardboard parts are separated from the box they ‘pop’ into place around the motor housing.

Components that cannot practically be made of cardboard have been produced from recyclable, pure nylon plastic using rapid process manufacturing rather than injection moulding, so Vax ev can be manufactured locally to order without the need for costly tooling moulds and assembly lines, while avoiding long distance distribution.

Vax is currently exploring a limited production run of the vacuum cleaner.

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Yamaha appoints Big Red SalesYamaha has appointed Big Red Sales Ltd to sell its AV products into BRSL’s established dealer network, commencing with the introduction of the company’s Desk Top Radio, Audio Systems and One Bar solutions.

BRSL, which presently handles business for Vogel’s, Sennheiser, Off the Wall and Linsar, reported “record turnover” for the fi rst six months of 2011 – a time described by director John Reddington as “the most challenging period in the 40 years I have been in the Industry.”

With the addition of the Yamaha brand in BRSL’s portfolio, Reddington said he is “confi dent” that the remainder of the year leading up to the peak season will see increased sales.

The arrangement with Yamaha leaves the Japanese brand in a position to continue to look after its current distribution partners.

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

Sony shareholder meeting in Tokyo well attended Sir Howard Stringer expresses con� dence in the future

Retailers face “unjusti� ably-high” charges for payment processing Hard-pressed customers switch payment methods

Samsung announces UK launch date for Galaxy Tab 10.1 “Slimmest, lightest and smartest tablet” will hit UK stores in August

It’s time to change, says CI(H) chief executive “Let’s get passionate about what we do again”

“Think Asia, Think Hong Kong” event comes to the UK in September A spotlight on business opportunities…

Electrolux agrees acquisition of Olympic Group Deal due for completion by August

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RetAIL ReVIeWRetAIL ReVIeW

that was already well under way before the recession. the recession simply accelerated and exacerbated a shift in consumer demand that had begun decades before. the choice to shun the High Street in favour of the quicker, more convenient, free parking, once-a-week trip to the supermarket had already been made by significant numbers of consumers.

the High Street is undoubtedly changing, but we are not at the beginning of a “new era” in retail: we are already a lot further down the road of change than that.

The consumer has spokenSeen in this light, it’s been suggested that the decline of some High Streets in some locations has to be accepted as a natural process: part

of changing social structures and changing consumer demands. A High Street that grew organically, sometimes over centuries, to serve a specific community cannot expect to go on serving it when that community has radically changed. Many people don’t work where they live any more. In households where everybody goes to work, there’s no longer a dedicated

“homemaker” for whom shopping is a task that can be allotted precious time. there’s a generation that doesn’t actually want to spend time chatting

with the butcher and the baker while being individually “served” with their purchases. there’s a generation that uses public transport only when there’s no alternative (such as the commuter train to work) and uses the car whenever possible. For these consumers, the big, single-location, by-car, easy free parking trip to the supermarket or out-of-town megastore is the natural choice.

There’s been more blood on the pavements. Names such as Habitat, HomeForm (Kitchens Direct,

Moben, Dolphin, Sharps), T. J. Hughes, Jane Norman and Focus have bitten the dust. Dixons has taken a huge hit on closure of its operations in Spain. Kesa was reportedly thinking of selling Comet and pulling out of the UK.

As well as this fresh crop of retail failures and difficulties, there has been a rash of reports charting UK retail in crisis: the BRC-KPMg Sales Monitor for May showed a like-for-like drop in sales value of 2.1%, providing a “more realistic reflection of how tough conditions on the High Street really are”; the influential Item Club has predicted ten years of hard times and slow retail growth; and a uSwitch.com survey of consumers showed that only 6% of shoppers remain loyal to their high streets, with boarded-up shops, lack of choice, expensive parking and generally “shabby” appearance being cited as the main turn-offs.

Gurus galoreFailure of more high-profile household names, and “evidence” that High Streets are falling into disuse and decrepitude, have sparked a flurry of concern in the general media, and gurus have been in demand on tV and radio and in the papers, giving opinions on what’s wrong with retail, how it might be fixed, and the steps necessary to “save the High Street.” Much of the focus has been on countering the effects of the recession, finding fast fixes for shabby high streets, expensive parking, high rents and rates, lack of public transport. And, of course, that perennial argument about supermarkets and out-of-town megastores killing the independents.

But there is a body of opinion that believes the faults in the UK’s High Streets are not the cause of their decline, but a result of it. Poor choice of shops, lack of public transport, boarded-up premises, rents and rates disproportionate to turnover, a general air of shabbiness and neglect are, some say, the results of a change in shopping habits

“…the faults in the UK’s High Streets are not the cause of their decline, but a result of it”

Can the UK’s High Streets be fixed, or is the whole concept past its sell-by date? Is there a way back for the “traditional” British retail experience, or have the new needs and habits of consumers already evolved to the point where it can no longer satisfy their 21st century demands? Get Connected takes a look at these complex questions, with the help of opinions - probably controversial - gathered from inside and outside our industry.

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And this is also the generation that has taken to the convenience and price advantages of online shopping in a big way. Advertising and business communications expert Sir Martin Sorrell said in a recent radio discussion that, while the recession may not have caused the boom in online retailing, it has accelerated “the rise of the clicks.” He added that “this is an e-commerce country,” and predicted that in the future most non-food products will be sold on the Internet. Electrical retailers are well aware that the only diff erentiator that currently matters on the internet - price – has already shaved margins to, or even beyond, zero, and is giving consumers unrealistic price benchmarks that “proper” retailers – those who give real advice, quality service and after sales support – cannot possibly match. Unfortunately, consumers who fi nd a bricks and mortar specialist retailer unwilling to match web prices assume that he is just “profi teering.” If only they knew!

Any answers?So, with these seismic shifts in the retail landscape already well advanced before the recession, should we be looking at how to save Britain’s High Streets in general, or accepting that some cannot survive in their present form, and instead focusing town-by-town, High Street-by-High Street, shop-by-shop on what individual communities want and how it can most profi tably be delivered? There is no one-size-fi ts-all national solution. The local, more detailed, custom-designed solutions will have to be found locally by local retailers, residents, local authorities, landlords and business associations working together for mutual benefi t. What works in Harrogate may not be the answer in Harlesden or Harwich, and anyone charged with a national plan to “bring the bustle back to our High Streets” is going to have to engage

all participants at local level and be prepared to entertain a large number of tailor-made solutions. Does any “guru” have the stamina or the capacity for local detail to do that – let alone the grace and modesty to admit their own pet ideas will not necessarily be the best in every situation?

There are still thriving High Streets with great independent stores providing excellent service all around the UK today. From leafy rural

and suburban locations to big city shopping enclaves, there are retail operations grouped into a recognisable High Street format that are serving their specifi c communities extremely well. Some village and small town High Streets remain the hub of communities that still recognise themselves as such, rather than as a random collection of nameless people who happen to live next door to each other and have to catch the train to work every morning. In major cities – London is a prime example – many “village” communities have sprung up grouped around an urban High Street that provides the immediate area with what estate agents like to call a “vibrant local scene.” The restaurants, bars and independent specialist retailers provide the goods and services young professionals want, at the time they want them – and all within walking distance in a city where getting about by car is not a brilliant everyday prospect.

Clearly, High Street successes like this that have grown organically in response to community demand can’t be simply replicated and imposed on other communities across the country. There has to be some local reference to what people want. However, fi nding that out is not as simple as just asking them.

Saying and doing Remember Woolworths – the high-profi le failure that fi rst brought the public’s attention to the fact that something bad was happening in retail? There was an outcry because a loved

and old-established brand had been toppled, and nostalgic

regret at the passing of a retail icon led the public to demand that

“something should be done about it.” The majority of people, asked

if they wanted to see Woolworths back on the High Street, said “yes.”

But would they have started to shop there more frequently and spend more money there?

Woolworths’ demise was a clear indication of the diff erence between what consumers say they want and what they actually do. They were sorry to see it go, but had clearly already voted for its demise with their feet - and their cash – by not shopping there enough or spending enough of their money to keep it going. An example of consumers’ serial reluctance to do in practice what they like the idea of in theory.

Similarly, consumers say they love the idea of a High Street with plentiful cheap or free parking, regular bus services, a family butcher, an artisan baker, a wet fi sh shop and a grocer selling fresh produce, plus friendly, helpful specialist retailers who can advise them on consumer electronics and major domestic appliances. They even say that if their High Street were like that they would use it more. But in most cases these are the very people who have driven the butcher, the baker and the specialist independent off their High street by choosing to shop at the supermarket and the out-of-town big stores, and are now complaining that the High Street they’ve shunned is looking tatty and doesn’t have a great choice of shops.

So beware of asking consumers associated with a failed or failing High Street how it could be revitalised. Check the history in a little more detail to fi nd out how the community’s relationship with its High Street has evolved.

Not a mile from this offi ce there’s a market town with a High Street dominated by charity shops, estate agents, banks, building societies and coff ee chains. There used to be three family butchers, fi ve fruit and veg shops, seven independent electrical retail/repair outlets and branches of two multiple electrical retailers. Now there’s one of each, all struggling to survive.

A major supermarket with massive free parking facilities opened within a stone’s throw of that High Street some years ago, and it was argued that it would bring more footfall to the town and boost local retailers. It is now common for local residents to drive to the supermarket to do their shopping, but never, from one years’ end to the next, take the one minute’s walk to the High Street, because they believe there’s nothing there that they want. I’m not saying the supermarket killed the High Street, because the community had already evolved into a dormitory town for London workers and the “local” feel was breaking down. But given the opportunity, local shoppers jumped at the chance of one-stop shopping and convenient, free parking.

This is by no means the counsel of despair for independents. There is still enormous scope for good independent retailers to thrive and prosper on the strength of their

RETAIL REVIEW

BOARDEDUP SHOPS ARE A HIGH STREET TURNOFF

LOCAL COUNCILS MAKE SHOPPERS PAY BEFORE THEY EVEN GET TO THE SHOPS

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superior quality, service and knowledge. There are strong arguments for encouraging and helping independents by looking at local planning regulations pertaining to big store applications, for talking to landlords about realistic rents and to local authorities about decent parking, reasonable business rates, good public transport and promotional events. But these things, important as they are, will only help “bring back the bustle” if there is a local community that is receptive to the benefi ts of High Street shopping.

Oh Mary Portas, what shall we do?Mary Portas, celebrity guru and retail expert (her track record is impressive and nobody can deny that, within her own disciplines, she knows what she’s talking about), has famously been called in by the Government with the composite national mission of “addressing the problem of vacant shops; adopting new business models for the high street that fi t the needs of the modern shopper; preventing the proliferation of “clone towns”; and increasing the number of small and independent retailers doing business in local town centres.”

She comes with a reputation for delivering forthright, acerbic advice and insisting on her own ability to fi nd the right answers to retail problems. She is on record as saying that big supermarket chains have killed off too many High Street traders. She has a personal track record of retail success. But it is diffi cult to assess how all that might translate into helping independent retailers, since most of what we know about her as a retail adviser is based on her TV persona, edited to entertain rather than deliver serious professional advice. However qualifi ed their stars might be, “business”

programmes such as Portas’ series, “The Apprentice” and “Dragon’s Den” are essentially light entertainment, not intended to be educational or commercially detailed.

She is currently, we believe, on holiday while a team of civil servants carries out the information-gathering exercises and surveys that she will need to do her work, and while her website gathers ideas and suggestions from the public and from retailers. It is, as we have noted, unlikely that there is any overall national solution to be identifi ed by any guru, however experienced. From the evidence of her TV series, she is good at telling retailers they need to understand their customers, to make the shop look good, to know their products, to smile a lot, be enthusiastic and welcoming and make sure their hair is combed and they have a clean shirt on. All great basic retail advice, but among the surviving independent electrical retailers on the High Streets of Britain today, none of it is a revelation.

And while Ms Portas did make a visit to Tesco prior to her holiday, it is diffi cult to believe that – even with her celebrity and experience behind her – she can have one iota of infl uence on the business model of the UK’s most successful retail organisation. The law of the retail jungle is already in place: big manufacturers and suppliers boss smaller retailers; big retailers boss everybody.

We hope as fervently as anyone that this turns out to be more than another publicity stunt by a government that doesn’t know what to do, and calls in a “celebrity” to demonstrate that something is indeed being done. How long does it usually take for the celebrity “tsar” of this or “guru” of that to cease to be associated with their Government task?

It’s a trait of most Governments that, faced with a problem they’re not qualifi ed to deal with, they announce a review, or a Public Enquiry, or a Royal Commission, or something that will take so long that either people will have forgotten about it, or the problem will have gone away, or the consequences have arrived so there’s no point in doing anything about it because it’s too late. This time, there is urgency. As the British Retail Consortium’s director general Stephen Robertson so appositely says “action, not reviews” are what’s needed now. And the most eff ective, most knowledgeable, most vigorous action can only be taken by those involved: by retailers, local groups and their business partners.

Removing the RRP ban: will it help?For thirteen years the electrical industry in the UK has suff ered from a law prohibiting manufacturers of a range of electrical goods from publishing a Recommended Retail Price (RRP) for those goods, and from

having a free choice about which retail outlets they supply those products to. In 1998 it was seen as a pro-consumer, pro-competition law, but times have changed, and to the relief of many independent retailers the OFT is recommending that the Competition Commission removes the ban on manufacturers giving a Recommended Retail Price on electrical goods.

The move has been welcomed as creating a “level playing-fi eld” for independents, who have suff ered from price-cutting competition they can’t hope to match, and who have lacked a consumer-credible benchmark to prove to their customers that they are not “profi teering” by charging what is in fact a reasonable price for the goods they sell.

The removal of the ban on RRPs is to be welcomed, but comes with a warning. As one independent retailer said to Get Connected: “It is a massive relief to know that RRPs may be back soon. It gives us a reference point, and a better chance of making a living margin. But it is still a recommended retail price, and it will only work if manufacturers are prepared to take action by refusing to supply retailers who deviate blatantly from it and cut prices ridiculously. We all know that the biggest diff erentiator in e-commerce is price. It’s all they’ve got over proper electrical retailers, and if that’s taken away from them, it will theoretically be a huge help to my business.

“We’ll have to wait and see how many manufacturers are really prepared to forgo volume and the Holy Grail of market share by preventing the volume retailers from selling their products too cheaply. I have more than once had the impression over the past ten years that some manufacturers have hidden behind the ban on RRPs, claiming to retailers like me that there’s nothing they can legally do to stop the cut-price merchants from ruining the consumer electronics market. Now we’ll be able to see who steps up to the plate.”

* If you agree with, are outraged by, or want to express any reaction to the opinions contained here, email: [email protected]. We’re open for debate and will publish as many of your views as we possibly can in the interests of helping the electrical retail sector live long and prosper.

RETAIL REVIEW

TATTY HIGH STREETS SHOWING SIGNS OF NEGLECT

THE DESOLATION OF THE HIGH STREET CAR PARK

“The decline of some High Streets in some locations has to be accepted as a natural process”

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And this is also the generation that has taken to the convenience and price advantages of online shopping in a big way. Advertising and business communications expert Sir Martin Sorrell said in a recent radio discussion that, while the recession may not have caused the boom in online retailing, it has accelerated “the rise of the clicks.” He added that “this is an e-commerce country,” and predicted that in the future most non-food products will be sold on the Internet. Electrical retailers are well aware that the only diff erentiator that currently matters on the internet - price – has already shaved margins to, or even beyond, zero, and is giving consumers unrealistic price benchmarks that “proper” retailers – those who give real advice, quality service and after sales support – cannot possibly match. Unfortunately, consumers who fi nd a bricks and mortar specialist retailer unwilling to match web prices assume that he is just “profi teering.” If only they knew!

Any answers?So, with these seismic shifts in the retail landscape already well advanced before the recession, should we be looking at how to save Britain’s High Streets in general, or accepting that some cannot survive in their present form, and instead focusing town-by-town, High Street-by-High Street, shop-by-shop on what individual communities want and how it can most profi tably be delivered? There is no one-size-fi ts-all national solution. The local, more detailed, custom-designed solutions will have to be found locally by local retailers, residents, local authorities, landlords and business associations working together for mutual benefi t. What works in Harrogate may not be the answer in Harlesden or Harwich, and anyone charged with a national plan to “bring the bustle back to our High Streets” is going to have to engage

all participants at local level and be prepared to entertain a large number of tailor-made solutions. Does any “guru” have the stamina or the capacity for local detail to do that – let alone the grace and modesty to admit their own pet ideas will not necessarily be the best in every situation?

There are still thriving High Streets with great independent stores providing excellent service all around the UK today. From leafy rural

and suburban locations to big city shopping enclaves, there are retail operations grouped into a recognisable High Street format that are serving their specifi c communities extremely well. Some village and small town High Streets remain the hub of communities that still recognise themselves as such, rather than as a random collection of nameless people who happen to live next door to each other and have to catch the train to work every morning. In major cities – London is a prime example – many “village” communities have sprung up grouped around an urban High Street that provides the immediate area with what estate agents like to call a “vibrant local scene.” The restaurants, bars and independent specialist retailers provide the goods and services young professionals want, at the time they want them – and all within walking distance in a city where getting about by car is not a brilliant everyday prospect.

Clearly, High Street successes like this that have grown organically in response to community demand can’t be simply replicated and imposed on other communities across the country. There has to be some local reference to what people want. However, fi nding that out is not as simple as just asking them.

Saying and doing Remember Woolworths – the high-profi le failure that fi rst brought the public’s attention to the fact that something bad was happening in retail? There was an outcry because a loved

and old-established brand had been toppled, and nostalgic

regret at the passing of a retail icon led the public to demand that

“something should be done about it.” The majority of people, asked

if they wanted to see Woolworths back on the High Street, said “yes.”

But would they have started to shop there more frequently and spend more money there?

Woolworths’ demise was a clear indication of the diff erence between what consumers say they want and what they actually do. They were sorry to see it go, but had clearly already voted for its demise with their feet - and their cash – by not shopping there enough or spending enough of their money to keep it going. An example of consumers’ serial reluctance to do in practice what they like the idea of in theory.

Similarly, consumers say they love the idea of a High Street with plentiful cheap or free parking, regular bus services, a family butcher, an artisan baker, a wet fi sh shop and a grocer selling fresh produce, plus friendly, helpful specialist retailers who can advise them on consumer electronics and major domestic appliances. They even say that if their High Street were like that they would use it more. But in most cases these are the very people who have driven the butcher, the baker and the specialist independent off their High street by choosing to shop at the supermarket and the out-of-town big stores, and are now complaining that the High Street they’ve shunned is looking tatty and doesn’t have a great choice of shops.

So beware of asking consumers associated with a failed or failing High Street how it could be revitalised. Check the history in a little more detail to fi nd out how the community’s relationship with its High Street has evolved.

Not a mile from this offi ce there’s a market town with a High Street dominated by charity shops, estate agents, banks, building societies and coff ee chains. There used to be three family butchers, fi ve fruit and veg shops, seven independent electrical retail/repair outlets and branches of two multiple electrical retailers. Now there’s one of each, all struggling to survive.

A major supermarket with massive free parking facilities opened within a stone’s throw of that High Street some years ago, and it was argued that it would bring more footfall to the town and boost local retailers. It is now common for local residents to drive to the supermarket to do their shopping, but never, from one years’ end to the next, take the one minute’s walk to the High Street, because they believe there’s nothing there that they want. I’m not saying the supermarket killed the High Street, because the community had already evolved into a dormitory town for London workers and the “local” feel was breaking down. But given the opportunity, local shoppers jumped at the chance of one-stop shopping and convenient, free parking.

This is by no means the counsel of despair for independents. There is still enormous scope for good independent retailers to thrive and prosper on the strength of their

RETAIL REVIEW

BOARDEDUP SHOPS ARE A HIGH STREET TURNOFF

LOCAL COUNCILS MAKE SHOPPERS PAY BEFORE THEY EVEN GET TO THE SHOPS

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superior quality, service and knowledge. There are strong arguments for encouraging and helping independents by looking at local planning regulations pertaining to big store applications, for talking to landlords about realistic rents and to local authorities about decent parking, reasonable business rates, good public transport and promotional events. But these things, important as they are, will only help “bring back the bustle” if there is a local community that is receptive to the benefi ts of High Street shopping.

Oh Mary Portas, what shall we do?Mary Portas, celebrity guru and retail expert (her track record is impressive and nobody can deny that, within her own disciplines, she knows what she’s talking about), has famously been called in by the Government with the composite national mission of “addressing the problem of vacant shops; adopting new business models for the high street that fi t the needs of the modern shopper; preventing the proliferation of “clone towns”; and increasing the number of small and independent retailers doing business in local town centres.”

She comes with a reputation for delivering forthright, acerbic advice and insisting on her own ability to fi nd the right answers to retail problems. She is on record as saying that big supermarket chains have killed off too many High Street traders. She has a personal track record of retail success. But it is diffi cult to assess how all that might translate into helping independent retailers, since most of what we know about her as a retail adviser is based on her TV persona, edited to entertain rather than deliver serious professional advice. However qualifi ed their stars might be, “business”

programmes such as Portas’ series, “The Apprentice” and “Dragon’s Den” are essentially light entertainment, not intended to be educational or commercially detailed.

She is currently, we believe, on holiday while a team of civil servants carries out the information-gathering exercises and surveys that she will need to do her work, and while her website gathers ideas and suggestions from the public and from retailers. It is, as we have noted, unlikely that there is any overall national solution to be identifi ed by any guru, however experienced. From the evidence of her TV series, she is good at telling retailers they need to understand their customers, to make the shop look good, to know their products, to smile a lot, be enthusiastic and welcoming and make sure their hair is combed and they have a clean shirt on. All great basic retail advice, but among the surviving independent electrical retailers on the High Streets of Britain today, none of it is a revelation.

And while Ms Portas did make a visit to Tesco prior to her holiday, it is diffi cult to believe that – even with her celebrity and experience behind her – she can have one iota of infl uence on the business model of the UK’s most successful retail organisation. The law of the retail jungle is already in place: big manufacturers and suppliers boss smaller retailers; big retailers boss everybody.

We hope as fervently as anyone that this turns out to be more than another publicity stunt by a government that doesn’t know what to do, and calls in a “celebrity” to demonstrate that something is indeed being done. How long does it usually take for the celebrity “tsar” of this or “guru” of that to cease to be associated with their Government task?

It’s a trait of most Governments that, faced with a problem they’re not qualifi ed to deal with, they announce a review, or a Public Enquiry, or a Royal Commission, or something that will take so long that either people will have forgotten about it, or the problem will have gone away, or the consequences have arrived so there’s no point in doing anything about it because it’s too late. This time, there is urgency. As the British Retail Consortium’s director general Stephen Robertson so appositely says “action, not reviews” are what’s needed now. And the most eff ective, most knowledgeable, most vigorous action can only be taken by those involved: by retailers, local groups and their business partners.

Removing the RRP ban: will it help?For thirteen years the electrical industry in the UK has suff ered from a law prohibiting manufacturers of a range of electrical goods from publishing a Recommended Retail Price (RRP) for those goods, and from

having a free choice about which retail outlets they supply those products to. In 1998 it was seen as a pro-consumer, pro-competition law, but times have changed, and to the relief of many independent retailers the OFT is recommending that the Competition Commission removes the ban on manufacturers giving a Recommended Retail Price on electrical goods.

The move has been welcomed as creating a “level playing-fi eld” for independents, who have suff ered from price-cutting competition they can’t hope to match, and who have lacked a consumer-credible benchmark to prove to their customers that they are not “profi teering” by charging what is in fact a reasonable price for the goods they sell.

The removal of the ban on RRPs is to be welcomed, but comes with a warning. As one independent retailer said to Get Connected: “It is a massive relief to know that RRPs may be back soon. It gives us a reference point, and a better chance of making a living margin. But it is still a recommended retail price, and it will only work if manufacturers are prepared to take action by refusing to supply retailers who deviate blatantly from it and cut prices ridiculously. We all know that the biggest diff erentiator in e-commerce is price. It’s all they’ve got over proper electrical retailers, and if that’s taken away from them, it will theoretically be a huge help to my business.

“We’ll have to wait and see how many manufacturers are really prepared to forgo volume and the Holy Grail of market share by preventing the volume retailers from selling their products too cheaply. I have more than once had the impression over the past ten years that some manufacturers have hidden behind the ban on RRPs, claiming to retailers like me that there’s nothing they can legally do to stop the cut-price merchants from ruining the consumer electronics market. Now we’ll be able to see who steps up to the plate.”

* If you agree with, are outraged by, or want to express any reaction to the opinions contained here, email: [email protected]. We’re open for debate and will publish as many of your views as we possibly can in the interests of helping the electrical retail sector live long and prosper.

RETAIL REVIEW

TATTY HIGH STREETS SHOWING SIGNS OF NEGLECT

THE DESOLATION OF THE HIGH STREET CAR PARK

“The decline of some High Streets in some locations has to be accepted as a natural process”

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Geneva Model M iPod/iPhone dock systemThe Geneva Sound System Model M is a complete bookshelf sized stereo system in a single cabinet. The compact model with LED display houses two Hi-Fi speakers and uses patented technology to deliver true stereo imaging. It is fi nished in piano-lacquered wood in white, black or red and holds an RSP of £550.

� 2 x 1” tweeters / 2 x full-range 4” woofers / 2 x bass ports

� 4 x powerful Class D digital amplifi ers

� Digital radio with 6 presets / Digital clock with alarm

� Stereo mini line-in jack

� TouchLight controls / Remote control

0843 2897195 www.sav-distribution.co.uk

Dimplex Bingham electric � reThe contemporary-styled Dimplex Bingham has a clear glass casing providing a three-way view of the brand’s Opti-myst fl ame and smoke eff ects. The unit creates a dramatic and safe focal point for homes and commercial settings and is also suitable for corner installation.

� Independent fl ame and heat / Variable fl ame eff ect

� Long lasting dichroic Xenon bulbs

� Remote control operation

0845 601 5111 www.dimplex.co.uk

Loewe Xelos LED TVLoewe has developed its Xelos TV range with the introduction of LED backlight technology. The Xelos houses DVB-T and DVB-C tuners – a DVB-S2 tuner can be fi tted on request – and comes in 32- and 40-inch screen sizes with a range of display options. Products are available to order now in Black or Chrome Silver fi nishes. RSP £995 and £1,590 respectively.

� 100Hz moving image display

� Multimedia functions

� USB recording / CI Plus interface

� Loewe Sound System+ (2 x 20W integrated speakers)

01294 315 0000 www.loewe-uk.com

Whirlpool ARC 229 wine cellarWhirlpool’s new ARC 229 in-column wine cellar is an electronically controlled unit that maintains a stable temperature and consistent humidity. Low vibration dampers and a glass door with ultraviolet protection ensure the safe storage of wines.

� Five oak shelves hold up to 46 bottles

� Internal temperature range 6° to 18°C

� Elegant ‘Fusion’ design with integrated handle

0208 649 5000 www.whirlpool.co.uk

Samsung SS7550 Series stick cleanerSamsung’s new 2-in-1 cordless vacuum cleaner combines a powerful, lightweight upright with a detachable handheld unit. The appliance has a motorised power brush with pick-up booster and corner-cleaning feature, and is suitable for upholstery, hard fl oors, rugs or carpets. SRP: £139.99

� 18.5-volt lithium battery

� Twin-chamber cyclone

� Twin fi ltration system with washable HEPA fi lter

� Available in black with blue accents or white with blue accents

01932 455000 www.samsung.co.uk

THE PRODUCT GALLERY

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Panasonic LUMIX GF3 DSLRWeighing just 225g, the LUMIX GF3 is the lightest and smallest of Panasonic’s interchangeable lens LUMIX G system cameras. The product produces high-quality photography and AVCHD Full HD movies and automatically focuses shots in up to 0.18 seconds. It has an aluminum chassis, easy-grip handle and comes in a choice of black, red, white or brown.

� Intuitive 3-inch LCD touch screen

� 12.10-megapixel Live MOS Micro Four Thirds sensor

� High-end image processor

� Face Recognition / Intelligent Scene Selector

01344 862444 www.panasonic.co.uk

Electrolux ENL60710X American-style fridge freezerThe Electrolux American-style fridge freezer with in-door water and ice dispenser is a no frost model that keeps perishable foods in the correct climate. The appliance incorporates a SpacePlusTM extra-large vegetable drawer which uses humidity control to preserve the natural texture of produce. A full-width dairy compartment is conveniently placed in the fridge door and a full-width wine rack in the fridge compartment.

� Intensive cooling with auto switch-off / Fan air circulation

� Electronic temperature controls with LCD display

� 2 large salad drawers with humidity control / 3 adjustable glass shelves

� 2 freezer drawers, 3 freezer shelves and 4 freezer door shelves

08445 611611 www.electrolux.co.uk

Beko DPU8360 ‘Dry and Save’ condenser dryerBeko has extended its ‘Excellence’ laundry range with the launch of the DPU8360 8kg ‘Dry and Save’ condenser tumble dryer. The appliance has an A+++ energy rating and is powered by heat exchange technology.

� 15 sensor-dry programmes

� Interactive LCD display

� Dryness-level indicator light / End of cycle buzzer

� SRP: £449.99

0845 600 4911 www.beko.co.uk

PURE Sirocco 550The latest launch from PURE, the Sirocco 550, is an internet-connected micro hi-fi system with digital radio, FM, CD and iPod/iPhone dock. The unit provides streaming of digital music collections, access to PURE’s online portal ‘The Lounge’, and is part of Apple’s ‘Made for iPod’ and ‘Made for iPhone’ programmes. SRP £349.99.

� 80W RMS stereo sound

� Clearsound™ technology

� Input for USB fl ash drives / 2 x auxiliary inputs / Video output (composite)

� Fully-featured RF remote control

� Large graphical OLED display / Quick access to favourite stations via presets

0845 1489001 www.pure.com

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Geneva Model M iPod/iPhone dock systemThe Geneva Sound System Model M is a complete bookshelf sized stereo system in a single cabinet. The compact model with LED display houses two Hi-Fi speakers and uses patented technology to deliver true stereo imaging. It is fi nished in piano-lacquered wood in white, black or red and holds an RSP of £550.

� 2 x 1” tweeters / 2 x full-range 4” woofers / 2 x bass ports

� 4 x powerful Class D digital amplifi ers

� Digital radio with 6 presets / Digital clock with alarm

� Stereo mini line-in jack

� TouchLight controls / Remote control

0843 2897195 www.sav-distribution.co.uk

Dimplex Bingham electric � reThe contemporary-styled Dimplex Bingham has a clear glass casing providing a three-way view of the brand’s Opti-myst fl ame and smoke eff ects. The unit creates a dramatic and safe focal point for homes and commercial settings and is also suitable for corner installation.

� Independent fl ame and heat / Variable fl ame eff ect

� Long lasting dichroic Xenon bulbs

� Remote control operation

0845 601 5111 www.dimplex.co.uk

Loewe Xelos LED TVLoewe has developed its Xelos TV range with the introduction of LED backlight technology. The Xelos houses DVB-T and DVB-C tuners – a DVB-S2 tuner can be fi tted on request – and comes in 32- and 40-inch screen sizes with a range of display options. Products are available to order now in Black or Chrome Silver fi nishes. RSP £995 and £1,590 respectively.

� 100Hz moving image display

� Multimedia functions

� USB recording / CI Plus interface

� Loewe Sound System+ (2 x 20W integrated speakers)

01294 315 0000 www.loewe-uk.com

Whirlpool ARC 229 wine cellarWhirlpool’s new ARC 229 in-column wine cellar is an electronically controlled unit that maintains a stable temperature and consistent humidity. Low vibration dampers and a glass door with ultraviolet protection ensure the safe storage of wines.

� Five oak shelves hold up to 46 bottles

� Internal temperature range 6° to 18°C

� Elegant ‘Fusion’ design with integrated handle

0208 649 5000 www.whirlpool.co.uk

Samsung SS7550 Series stick cleanerSamsung’s new 2-in-1 cordless vacuum cleaner combines a powerful, lightweight upright with a detachable handheld unit. The appliance has a motorised power brush with pick-up booster and corner-cleaning feature, and is suitable for upholstery, hard fl oors, rugs or carpets. SRP: £139.99

� 18.5-volt lithium battery

� Twin-chamber cyclone

� Twin fi ltration system with washable HEPA fi lter

� Available in black with blue accents or white with blue accents

01932 455000 www.samsung.co.uk

THE PRODUCT GALLERY

17

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Panasonic LUMIX GF3 DSLRWeighing just 225g, the LUMIX GF3 is the lightest and smallest of Panasonic’s interchangeable lens LUMIX G system cameras. The product produces high-quality photography and AVCHD Full HD movies and automatically focuses shots in up to 0.18 seconds. It has an aluminum chassis, easy-grip handle and comes in a choice of black, red, white or brown.

� Intuitive 3-inch LCD touch screen

� 12.10-megapixel Live MOS Micro Four Thirds sensor

� High-end image processor

� Face Recognition / Intelligent Scene Selector

01344 862444 www.panasonic.co.uk

Electrolux ENL60710X American-style fridge freezerThe Electrolux American-style fridge freezer with in-door water and ice dispenser is a no frost model that keeps perishable foods in the correct climate. The appliance incorporates a SpacePlusTM extra-large vegetable drawer which uses humidity control to preserve the natural texture of produce. A full-width dairy compartment is conveniently placed in the fridge door and a full-width wine rack in the fridge compartment.

� Intensive cooling with auto switch-off / Fan air circulation

� Electronic temperature controls with LCD display

� 2 large salad drawers with humidity control / 3 adjustable glass shelves

� 2 freezer drawers, 3 freezer shelves and 4 freezer door shelves

08445 611611 www.electrolux.co.uk

Beko DPU8360 ‘Dry and Save’ condenser dryerBeko has extended its ‘Excellence’ laundry range with the launch of the DPU8360 8kg ‘Dry and Save’ condenser tumble dryer. The appliance has an A+++ energy rating and is powered by heat exchange technology.

� 15 sensor-dry programmes

� Interactive LCD display

� Dryness-level indicator light / End of cycle buzzer

� SRP: £449.99

0845 600 4911 www.beko.co.uk

PURE Sirocco 550The latest launch from PURE, the Sirocco 550, is an internet-connected micro hi-fi system with digital radio, FM, CD and iPod/iPhone dock. The unit provides streaming of digital music collections, access to PURE’s online portal ‘The Lounge’, and is part of Apple’s ‘Made for iPod’ and ‘Made for iPhone’ programmes. SRP £349.99.

� 80W RMS stereo sound

� Clearsound™ technology

� Input for USB fl ash drives / 2 x auxiliary inputs / Video output (composite)

� Fully-featured RF remote control

� Large graphical OLED display / Quick access to favourite stations via presets

0845 1489001 www.pure.com

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THE GREEN ROOM

AMICA’S COMBI STEAM OVEN INCORPORATES A ‘RAPID HEAT’ FUNCTION

THE GREEN ROOM

Energy effi ciency and sustainability are key priorities for manufacturers of kitchen appliances and the European labelling system is now “catching up” with the extraordinary developments in the performance of products. But opinions diff er on whether consumers have really taken the ‘eco’ message on board; whether their hearts are sold on price and style, or whether saving money in the long term and conserving the earth’s precious resources provide enough motivation to buy the very best energy-rated appliances.

And when it comes to purchasing, low energy and water consumption are high on the list. “We are getting there, but there is still a way to go to persuade the rest,” says McKelvie. His remarks are echoed by Maytag’s Caroline Guillermard, Product Marketing Manager Premium, who comments that manufacturers are wholly committed to the relationship between product and the environment; however, “we have a long way to go to convince the consumer. Concerns about the environment are changing, yet consumers are still persuaded by price, style and brand values and this isn’t going to change as quickly as we’d like.”

Hotpoint Brand Manager Iain Starkey, while agreeing with Guillermard’s view, is keen to highlight the fact that GfK charts show that, in some cases, energy effi ciency and lower running costs are the most important reasons for purchase. An opinion shared by Hoover Candy Marketing Director Steve Macdonald, who – although registering evidence that suggests people are delaying purchases and conserving their cash – believes that when they do decide to spend they expect their money to go further, “not just at the point of sale but also to continue to provide savings throughout the operational life of the machine.”

“For the UK consumer, a good reliable brand name still takes precedence over green credentials,” asserts Neff Sales Director Mike Jarrett. “From our studies, people are defi nitely interested in energy-effi cient appliances but do not want to pay a premium for the privilege of owning them. This is set to change in the future as the subject goes higher up the political agenda with

Research carried out by refrigeration specialist Lec confi rmed that price was indeed the most important aspect

in the purchase decision. However, as Commercial Director David Garden points out: “Of the 1,000 consumers we quizzed, 90% said that a product’s energy rating and eco credentials are essential. In fact, when asked to determine the most important factors in the purchasing decision, price was followed closely by energy effi ciency and functionality.”

A high level of design, followed by technology and then price is how Whirlpool views consumer perceptions. According to Dean McKelvie, Product Marketing Manager

Freestanding, energy and resource-saving technology still has to justify itself and demonstrate a return on investment. “Most of us simply don’t recognise what is going on behind the control panel,” he says, adding that technology has to be translated both into consumers’ language and tangible savings. “Resource-saving appliances deliver high rewards for consumers, who have never had such amazing technology at terrifi c prices as they do today.”

Whirlpool’s ‘Pocket Vs Planet’ survey revealed that, even during these challenging economic times, 57% of people feel that the impact on the environment is as important a consideration as getting the best-value deal.

The value of

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the arrival of EU regulations on the greening of appliances. Design is very important to customers, as are price, reliability and quality. After that comes energy effi ciency in the priority rankings.”

Jarrett points out that from July 2011 it will be illegal to sell any B-rated cooling appliances in the UK and from 2012 A-rated cooling will not be allowed either – the minimum will be A+. “At Neff , we have ensured that all our cooling appliances will conform to the regulations well in advance of these dates as the lowest rating currently in the range is already A+. From 2012, there will be no choice but to purchase energy-effi cient cooling appliances and, in our opinion, this will set a precedent for the [MDA] market as a whole.”

LabellingAs the development of energy-effi cient products powered ahead of expectations, the European Energy Label failed to refl ect the progression of technology, leading to inconsistencies across the system and consumer confusion as to which products really are the ‘greenest’. As Smeg Product Development and Training Manager Joan Fraser notes: “The system was not designed and set up to allow for performance improvements. Hopefully,” she adds, “the new system will provide the long-overdue clarifi cation, with inbuilt future-proofi ng.”

The new EU energy label for kitchen appliances will, as per the previous version, have set classes ranging from the most ineffi cient to the most effi cient, but with ratings up to A+++ in all product sectors. It will also contribute to consumers’ ability to make a more informed decision as the washing machine label, for example, will show the annual energy consumption in kWh (no longer per cycle), and contain pictograms highlighting selected performances and characteristics such as noise emissions in decibels; spin-drying effi ciency class; capacity in kilograms and annual water consumption in litres.

Hoover Candy’s Steve Macdonald is hopeful that the new system will make it easier for consumers to make a direct comparison between competitive products, “particularly at the top end, where there can be a signifi cant

diff erence between what actually constitutes an A-rated appliance. The new label should help clarify the diff erences between A and A+++ product.”

But Whirlpool’s McKelvie, although welcoming the consistency the label should bring, asks: “How far will the pluses go?” He has a point. Beko, for example, is currently promoting its WMB81445L washing machine as A+++++ rated – two pluses beyond the scope of the new system. Head of Product Buying Les Wicks says the 8Kg machine produces a 50% energy saving on a 60˚C cotton wash, compared to standard A-rated models, and washes two loads for the price of one.

Overall, suppliers see the move to again harmonise the appliance labelling system as benefi cial. Lec’s David Garden says: “I think these are positive steps and will ensure that factual fi gures regarding energy credentials are stated and regulated on product. At Lec we have created a good brand message on energy effi ciency in conjunction with the Energy Savings Trust and continue to develop

our range in line with tightening regulations. There will be, in my opinion, some interesting developments from other brands and some key decisions taken over the next 12-18 months as energy regulations come into force.”

For Maytag’s Guillermard, the positive ‘plus’ sign [as opposed to the earlier proposed ‘minus’ sign] and the mention of annual consumption are all good steps to make the label more meaningful. “It will deliver market transparency and hopefully help consumers make an informed purchasing decision, which we all hope will translate into sales.”

Use of the new label will be mandatory from 30 November 2011 on refrigeration appliances and from 20 December 2011 on washing machines and dishwashers, although voluntary use of the new format before the aforementioned dates is encouraged. Dealers will have to ensure that products displayed or off ered for sale show the label in a clearly visible manner. Appliances placed on the market with the old label before the mandatory introduction dates can be displayed and sold at any time.

APPLIANCES OPERATING IN SYNERGY: WHIRLPOOL’S GREENKITCHEN 2.0™ CONCEPT

“The appliance industry has always been excellent at delivering innovation, but not so good at maximising its promotion”

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THE GREEN ROOM

AMICA’S COMBI STEAM OVEN INCORPORATES A ‘RAPID HEAT’ FUNCTION

THE GREEN ROOM

Energy effi ciency and sustainability are key priorities for manufacturers of kitchen appliances and the European labelling system is now “catching up” with the extraordinary developments in the performance of products. But opinions diff er on whether consumers have really taken the ‘eco’ message on board; whether their hearts are sold on price and style, or whether saving money in the long term and conserving the earth’s precious resources provide enough motivation to buy the very best energy-rated appliances.

And when it comes to purchasing, low energy and water consumption are high on the list. “We are getting there, but there is still a way to go to persuade the rest,” says McKelvie. His remarks are echoed by Maytag’s Caroline Guillermard, Product Marketing Manager Premium, who comments that manufacturers are wholly committed to the relationship between product and the environment; however, “we have a long way to go to convince the consumer. Concerns about the environment are changing, yet consumers are still persuaded by price, style and brand values and this isn’t going to change as quickly as we’d like.”

Hotpoint Brand Manager Iain Starkey, while agreeing with Guillermard’s view, is keen to highlight the fact that GfK charts show that, in some cases, energy effi ciency and lower running costs are the most important reasons for purchase. An opinion shared by Hoover Candy Marketing Director Steve Macdonald, who – although registering evidence that suggests people are delaying purchases and conserving their cash – believes that when they do decide to spend they expect their money to go further, “not just at the point of sale but also to continue to provide savings throughout the operational life of the machine.”

“For the UK consumer, a good reliable brand name still takes precedence over green credentials,” asserts Neff Sales Director Mike Jarrett. “From our studies, people are defi nitely interested in energy-effi cient appliances but do not want to pay a premium for the privilege of owning them. This is set to change in the future as the subject goes higher up the political agenda with

Research carried out by refrigeration specialist Lec confi rmed that price was indeed the most important aspect

in the purchase decision. However, as Commercial Director David Garden points out: “Of the 1,000 consumers we quizzed, 90% said that a product’s energy rating and eco credentials are essential. In fact, when asked to determine the most important factors in the purchasing decision, price was followed closely by energy effi ciency and functionality.”

A high level of design, followed by technology and then price is how Whirlpool views consumer perceptions. According to Dean McKelvie, Product Marketing Manager

Freestanding, energy and resource-saving technology still has to justify itself and demonstrate a return on investment. “Most of us simply don’t recognise what is going on behind the control panel,” he says, adding that technology has to be translated both into consumers’ language and tangible savings. “Resource-saving appliances deliver high rewards for consumers, who have never had such amazing technology at terrifi c prices as they do today.”

Whirlpool’s ‘Pocket Vs Planet’ survey revealed that, even during these challenging economic times, 57% of people feel that the impact on the environment is as important a consideration as getting the best-value deal.

The value of

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the arrival of EU regulations on the greening of appliances. Design is very important to customers, as are price, reliability and quality. After that comes energy effi ciency in the priority rankings.”

Jarrett points out that from July 2011 it will be illegal to sell any B-rated cooling appliances in the UK and from 2012 A-rated cooling will not be allowed either – the minimum will be A+. “At Neff , we have ensured that all our cooling appliances will conform to the regulations well in advance of these dates as the lowest rating currently in the range is already A+. From 2012, there will be no choice but to purchase energy-effi cient cooling appliances and, in our opinion, this will set a precedent for the [MDA] market as a whole.”

LabellingAs the development of energy-effi cient products powered ahead of expectations, the European Energy Label failed to refl ect the progression of technology, leading to inconsistencies across the system and consumer confusion as to which products really are the ‘greenest’. As Smeg Product Development and Training Manager Joan Fraser notes: “The system was not designed and set up to allow for performance improvements. Hopefully,” she adds, “the new system will provide the long-overdue clarifi cation, with inbuilt future-proofi ng.”

The new EU energy label for kitchen appliances will, as per the previous version, have set classes ranging from the most ineffi cient to the most effi cient, but with ratings up to A+++ in all product sectors. It will also contribute to consumers’ ability to make a more informed decision as the washing machine label, for example, will show the annual energy consumption in kWh (no longer per cycle), and contain pictograms highlighting selected performances and characteristics such as noise emissions in decibels; spin-drying effi ciency class; capacity in kilograms and annual water consumption in litres.

Hoover Candy’s Steve Macdonald is hopeful that the new system will make it easier for consumers to make a direct comparison between competitive products, “particularly at the top end, where there can be a signifi cant

diff erence between what actually constitutes an A-rated appliance. The new label should help clarify the diff erences between A and A+++ product.”

But Whirlpool’s McKelvie, although welcoming the consistency the label should bring, asks: “How far will the pluses go?” He has a point. Beko, for example, is currently promoting its WMB81445L washing machine as A+++++ rated – two pluses beyond the scope of the new system. Head of Product Buying Les Wicks says the 8Kg machine produces a 50% energy saving on a 60˚C cotton wash, compared to standard A-rated models, and washes two loads for the price of one.

Overall, suppliers see the move to again harmonise the appliance labelling system as benefi cial. Lec’s David Garden says: “I think these are positive steps and will ensure that factual fi gures regarding energy credentials are stated and regulated on product. At Lec we have created a good brand message on energy effi ciency in conjunction with the Energy Savings Trust and continue to develop

our range in line with tightening regulations. There will be, in my opinion, some interesting developments from other brands and some key decisions taken over the next 12-18 months as energy regulations come into force.”

For Maytag’s Guillermard, the positive ‘plus’ sign [as opposed to the earlier proposed ‘minus’ sign] and the mention of annual consumption are all good steps to make the label more meaningful. “It will deliver market transparency and hopefully help consumers make an informed purchasing decision, which we all hope will translate into sales.”

Use of the new label will be mandatory from 30 November 2011 on refrigeration appliances and from 20 December 2011 on washing machines and dishwashers, although voluntary use of the new format before the aforementioned dates is encouraged. Dealers will have to ensure that products displayed or off ered for sale show the label in a clearly visible manner. Appliances placed on the market with the old label before the mandatory introduction dates can be displayed and sold at any time.

APPLIANCES OPERATING IN SYNERGY: WHIRLPOOL’S GREENKITCHEN 2.0™ CONCEPT

“The appliance industry has always been excellent at delivering innovation, but not so good at maximising its promotion”

20

In the meantime, it should be benefi cial to all concerned if all suppliers would abandon the intermediate ‘A-‘ rating in communications in order to promote consistency at these early stages.

UK trailing behindGas and electricity costs have escalated in the past two years and, according to energy suppliers, there is to be no letup in the foreseeable future. Households are increasingly stretched by this additional burden on their budgets, but while there has been a widespread move to switch off lighting and appliances at times when they are not necessary and to demonstrate frugality in the use of home heating, Neff ’s Mike Jarrett rightly remarks that, when it comes to being ‘green’, the UK is still lagging quite a long way behind most other European countries.

“We need to raise awareness both at trade and consumer level to change the consumer’s mindset on the subject of energy effi ciency,” he comments. “The importance of long-term cost savings in terms of money in the pocket should be emphasised more clearly, especially in these recessionary times when every penny counts.”

“To accelerate uptake of energy- and water-effi cient appliances we need to drive home the importance of smart consumer choices through marketing,” comments Graham Bremer, Head of Marketing at Electrolux. “This,” he says, “includes highlighting cost savings – the follow-on value of going green. Strong sustainability messaging generates results.”

Bremer adds that Electrolux is proactive in helping to raise awareness of eco-issues with consumers. “Two examples of these are our informative web site www.electrolux.com/ecosavings and our “Vac from the Sea” initiative to get plastic waste out of the world’s oceans and into home appliances www.electrolux.com/vacfromthesea.”

Smeg’s Joan Fraser believes that energy effi ciency and environmental assets should regularly form part of the training content delivered by manufacturers and, where possible, tangible benefi ts such as average water and energy saving per month/year should be illustrated. De Dietrich Sales and Marketing Director Richard Walker is in agreement, pointing out that both his brands, De Dietrich and Fagor, off er “full hands-on product and sales training in which every aspect of the appliance is considered together with energy savings.”

Samsung, too, stresses the importance of regular and eff ective training to ensure retail staff have the tools needed to articulate the various product benefi ts. Marketing Manager Andrew Jones says “the key for manufacturers is to communicate the overall savings that can be made by investing in a green product. For example: how many pounds per week or month the consumer will save in running costs, or how much less they can expect their energy bills to be.”

Additional benefi tsThe benefi ts of resource-saving appliances go far beyond conserving water and energy. Whirlpool, for example, worked out that the average UK household could save around £193.20 per year with the brand’s new Green Generation refrigeration technology. The calculation was based on information from WRAP (Waste resources & action programme)

which suggests that the average household disposes of £420 worth of food every year – 46% of this is fresh food, which could be kept for longer in the correct refrigerated conditions.

In a second example, Whirlpool notes that its Detergent Dosing Recommendation system, present in Green Generation washing machines, could save up to £249.00 over the lifecycle of the machine. Dean McKelvie explains that the fi gure is based on the concept that consumers overdose detergent by as much as 45%.

Providing an alternative example of savings, Siemens Brand Manager Jane Massey says: “In the UK we are still using 15.4 million outdated fridges, freezers and washing machines. If everyone living in the UK switched their current washing machine to an A-rated Siemens appliance, we would save enough CO2 to fi ll more than half a million Olympic-sized swimming pools.” Massey also points out that Siemens dishwashers can save up to 39 litres of water per load, compared to washing up by hand.

The key eco messages for retailers at the point of sale, she says, “are to acknowledge that today’s new super-effi cient appliances are, by necessity, slightly more expensive to purchase, but choosing an ecologically innovative appliance will more than pay off in cost savings in the long run. In addition to

FAGOR’S 8KG TURBO TIME WASHING MACHINE IS A+++ RATED FOR ENERGY EFFICIENCY

THE GREEN ROOM

Keep food fresher for longer with Zanussi’s CrispNoFrost Fridge Freezer A rated frost free Zanussi fridge freezer ZRB634FX features Zanussi’s CrispNoFrost technology. This ensures that humidity levels are maintained in the fridge whilst a low, stable temperature is maintained. The result is that food is preserved properly and stays fresh for as long as possible.

Other key features include a maxi shopping drawer which allows the storage of extra-large items such as a Christmas turkey.

The fridge freezer automatically defrosts and the stainless steel look is � ngerprint proof, so the appliance is easy to maintain.

Zanussi Trade Sales: 08445 610610www.zanussi.co.uk

“ ‘Go green’ messaging remains a powerful selling tool for retailers”

FRIDGE

FREEZER

FRIDGE

FREEZER

A+ energy efficiency throughout the side-by-side and combi range

Haier’s A+ chest freezer range

A

Haier UK Head Office: Tel: 020 8166 4978 Email: [email protected]

www.haier.com0114 254 2400 01244 535 9290845 052 9030

*

*Source: Euromonitor International Limited; retail volume sales in units based on 2010 data.

Amazing new technology from Haier

Fridge, freezer or bottle chiller?The choice is yours...

-18°C 5°C

Haier has launched the new AFD626 combi fridge freezer series. The middle compartment of this fridge freezer can be independently controlled from +5°C to -18°C, giving customers greater flexibility over how they manage not only their food but also their drinks! The AFD626 is available in stunning Haier glass black, red, white and stainless steel effect. To learn more about this product, please contact Haier.

A

*

Visit us at IFA 2011

WG: hall 3

.1, stand 103

TV: hall 3

.2, stand 134

A+ can provide up to 25% energy savings compared to A rated modelsHRF-663CJB

BD-203GAA BD-103GAA

HB21FGRAA AFD631GW CFE633CS2

A

Haier_GC_ad_June_2011_A4 v3.indd 1 22/06/2011 17:14

20

In the meantime, it should be benefi cial to all concerned if all suppliers would abandon the intermediate ‘A-‘ rating in communications in order to promote consistency at these early stages.

UK trailing behindGas and electricity costs have escalated in the past two years and, according to energy suppliers, there is to be no letup in the foreseeable future. Households are increasingly stretched by this additional burden on their budgets, but while there has been a widespread move to switch off lighting and appliances at times when they are not necessary and to demonstrate frugality in the use of home heating, Neff ’s Mike Jarrett rightly remarks that, when it comes to being ‘green’, the UK is still lagging quite a long way behind most other European countries.

“We need to raise awareness both at trade and consumer level to change the consumer’s mindset on the subject of energy effi ciency,” he comments. “The importance of long-term cost savings in terms of money in the pocket should be emphasised more clearly, especially in these recessionary times when every penny counts.”

“To accelerate uptake of energy- and water-effi cient appliances we need to drive home the importance of smart consumer choices through marketing,” comments Graham Bremer, Head of Marketing at Electrolux. “This,” he says, “includes highlighting cost savings – the follow-on value of going green. Strong sustainability messaging generates results.”

Bremer adds that Electrolux is proactive in helping to raise awareness of eco-issues with consumers. “Two examples of these are our informative web site www.electrolux.com/ecosavings and our “Vac from the Sea” initiative to get plastic waste out of the world’s oceans and into home appliances www.electrolux.com/vacfromthesea.”

Smeg’s Joan Fraser believes that energy effi ciency and environmental assets should regularly form part of the training content delivered by manufacturers and, where possible, tangible benefi ts such as average water and energy saving per month/year should be illustrated. De Dietrich Sales and Marketing Director Richard Walker is in agreement, pointing out that both his brands, De Dietrich and Fagor, off er “full hands-on product and sales training in which every aspect of the appliance is considered together with energy savings.”

Samsung, too, stresses the importance of regular and eff ective training to ensure retail staff have the tools needed to articulate the various product benefi ts. Marketing Manager Andrew Jones says “the key for manufacturers is to communicate the overall savings that can be made by investing in a green product. For example: how many pounds per week or month the consumer will save in running costs, or how much less they can expect their energy bills to be.”

Additional benefi tsThe benefi ts of resource-saving appliances go far beyond conserving water and energy. Whirlpool, for example, worked out that the average UK household could save around £193.20 per year with the brand’s new Green Generation refrigeration technology. The calculation was based on information from WRAP (Waste resources & action programme)

which suggests that the average household disposes of £420 worth of food every year – 46% of this is fresh food, which could be kept for longer in the correct refrigerated conditions.

In a second example, Whirlpool notes that its Detergent Dosing Recommendation system, present in Green Generation washing machines, could save up to £249.00 over the lifecycle of the machine. Dean McKelvie explains that the fi gure is based on the concept that consumers overdose detergent by as much as 45%.

Providing an alternative example of savings, Siemens Brand Manager Jane Massey says: “In the UK we are still using 15.4 million outdated fridges, freezers and washing machines. If everyone living in the UK switched their current washing machine to an A-rated Siemens appliance, we would save enough CO2 to fi ll more than half a million Olympic-sized swimming pools.” Massey also points out that Siemens dishwashers can save up to 39 litres of water per load, compared to washing up by hand.

The key eco messages for retailers at the point of sale, she says, “are to acknowledge that today’s new super-effi cient appliances are, by necessity, slightly more expensive to purchase, but choosing an ecologically innovative appliance will more than pay off in cost savings in the long run. In addition to

FAGOR’S 8KG TURBO TIME WASHING MACHINE IS A+++ RATED FOR ENERGY EFFICIENCY

THE GREEN ROOM

Keep food fresher for longer with Zanussi’s CrispNoFrost Fridge Freezer A rated frost free Zanussi fridge freezer ZRB634FX features Zanussi’s CrispNoFrost technology. This ensures that humidity levels are maintained in the fridge whilst a low, stable temperature is maintained. The result is that food is preserved properly and stays fresh for as long as possible.

Other key features include a maxi shopping drawer which allows the storage of extra-large items such as a Christmas turkey.

The fridge freezer automatically defrosts and the stainless steel look is � ngerprint proof, so the appliance is easy to maintain.

Zanussi Trade Sales: 08445 610610www.zanussi.co.uk

“ ‘Go green’ messaging remains a powerful selling tool for retailers”

FRIDGE

FREEZER

FRIDGE

FREEZER

A+ energy efficiency throughout the side-by-side and combi range

Haier’s A+ chest freezer range

A

Haier UK Head Office: Tel: 020 8166 4978 Email: [email protected]

www.haier.com0114 254 2400 01244 535 9290845 052 9030

*

*Source: Euromonitor International Limited; retail volume sales in units based on 2010 data.

Amazing new technology from Haier

Fridge, freezer or bottle chiller?The choice is yours...

-18°C 5°C

Haier has launched the new AFD626 combi fridge freezer series. The middle compartment of this fridge freezer can be independently controlled from +5°C to -18°C, giving customers greater flexibility over how they manage not only their food but also their drinks! The AFD626 is available in stunning Haier glass black, red, white and stainless steel effect. To learn more about this product, please contact Haier.

A

*

Visit us at IFA 2011

WG: hall 3

.1, stand 103

TV: hall 3

.2, stand 134

A+ can provide up to 25% energy savings compared to A rated modelsHRF-663CJB

BD-203GAA BD-103GAA

HB21FGRAA AFD631GW CFE633CS2

A

Haier_GC_ad_June_2011_A4 v3.indd 1 22/06/2011 17:14

22

GET

CO

NN

ECTE

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JU

LY 2

011

energy savings of up to 75% compared to the average 15-year old appliances, today’s new greener appliances generally off er signifi cantly superior features. For example, our engineers are constantly working on innovative solutions for reducing power and water consumption. Siemens’ Zeolith drying system for dishwashers (energy effi ciency A-30%) is a great example of the groundbreaking innovation that is possible, even in categories that already

feature extremely effi cient appliances. In fact, Siemens’ iQ700 dishwasher with Zeolith drying is the world’s most energy-effi cient dishwasher.” Siemens also lays claim to producing the world’s most energy-effi cient tumble dryer, which over a 5-year period could save up to £450 on running costs.

Maximising promotionPoint-of-sale materials are an essential aid to raising eco-awareness and educating consumers in-store; however, Beko’s Les Wicks believes more needs to be done: “The appliance industry has always been excellent at delivering innovation, but not so good at maximising its promotion,” he contends. “Manufacturers and retailers alike issue increasing amounts of information to consumers, so the task must now be to ensure that feature benefi ts, including energy ratings, are clear, concise and easy to understand and relate to. This will help ensure that ‘go green’ messaging remains a powerful

selling tool for retailers.” He explains that POS materials available for Beko’s WMB81445L ‘A+++++’ washing machine focus on the product’s ability to wash two loads for the price of one. “This is an easily understandable and quantifi able statement that consumers can relate to, which will help them recognise the benefi ts of buying this model.”

Indesit Company also highlights the importance of good promotional material.

Advertising and Communications Manager Libby Morley says that both brands – Indesit and Hotpoint – supply retailers with dedicated POS packs for appliances and off er an online ordering service for such. She stresses that retailers should “make good use” of the materials provided and “take advantage of any training provided too.” Indesit Company

has 18 multi-skilled trainers on the road, covering built-in and freestanding products.

Hotpoint’s Iain Starkey also fl ags up the fact that selected products in the brand’s collection are factory-fi tted with the Eco Tech symbol, which is Hotpoint’s guarantee of “class-leading, environmentally friendly performance.” He adds that many of the brand’s appliances also have eco features and energy ratings printed onto the fascias.

Gorenje, too, has taken steps to help consumers quickly and easily identify energy-effi cient appliances. Marketing Manager Ruth Ferguson advises that the brand has introduced the Eco Care label across its appliance range. “This identifi es the most energy-effi cient products by providing a visual aid that is of benefi t both to consumers and retailers. POS materials for this label are also available for retailers to allow them to highlight the products that are the most green.”

Confusion cooking?While the focus on environmental concerns relating to the use of laundry, dishwashing and refrigeration products has continued to strengthen in the past decade, less consumer interest seems to have been aroused by the ‘greening’ of ovens – perhaps because progress in this area hasn’t been communicated to the same degree as in wet and cold appliances. The fact that only electric ovens are labelled in accordance with EU regulations, as there is no standard for measuring the effi ciency of gas ovens, and that other cooking appliances such as hobs and microwaves do not come under the labelling system is probably a tad confusing for consumers too.

Nonetheless, signifi cant moves have been made to improve effi ciencies in the one cooking sector that does carry the energy label, despite some dissent amongst manufacturers as to how consumption is measured (skeptics question the use of the ‘brick test’ in determining energy ratings), and when the new EU label for electric ovens is made compulsory, it may be that some uniformity in the manner in which ratings are communicated will help minimise consumer confusion and increase awareness.

THE GREEN ROOM

Professional cooling technology keeps food quality and nutrition at its bestAEG’s ProFresh NoFrost combi-bottom fridge freezer range keeps 99% of the moisture in food for a week, for superb freshness and quality, while using 20% less energy than A-class models.

Cooking like a professional means having the best ingredients. Keeping those ingredients at their best between weekly shopping trips, though, is a challenge. Standard no-frost fridge freezers have just one cooling system, resulting in extremely dry air in the fridge compartment which dehydrates food and compromises freshness and quality.

AEG’s ProFresh fridge freezers, however, have two separate cooling systems. This means that temperature and humidity in the fridge compartment can be optimised.

Neue Klasse designThe ProFresh Plus fridge freezer is also in the Neue Klasse design family, which suits modern kitchens and lifestyles.

AEG Trade Sales: 08445 610610www.aeg.co.uk

“People are de� nitely interested in energy-ef� cient appliances but do not want to pay a premium for the privilege of owning them”

SIGNIFICANT MOVES HAVE BEEN MADE TO IMPROVE ENERGY EFFICIENCY IN OVENS

Indesit Washing Machinewith Smart Technology.

Maximum performance. Minimum waste.

Indesit Washing Machine

Special cycles dedicated to duvets, shirts, jeans, outwear, delicates & wool keep fabrics like new, ensuring maximum washing effi ciency.

Special Shoes programme keeps sport shoes like new saving you the time and effort needed to wash them by hand.

Stand-by function automatically turns display off after a few minutes of inactivity to cut down on energy consumption.

Ergonomic handle design for easier gripping. A Larger door for easier loading. New practical user-friendly display.

A++ superior energy effi ciency, the new Prime washing machines save you time, energy and water whilst offering the optimum washing performance.

www.indesitprime.co.uk

The new Prime washing machine uses Smart Technologyto measure the amount of cottons and synthetics in theload optimising the cycle duration, temperature, washing and rinsing phases to reduce water and energy consumption by as much as 60%, in up to 50% less time*.*compared to traditional cycles with full loads. Discover the new Prime

line of home applianceswith Smart Technology.

Discover the new Primeline of home applianceswith Smart Technology.

11330 Prime WM Ad 210x297.indd 1 17/6/11 15:35:03

22

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energy savings of up to 75% compared to the average 15-year old appliances, today’s new greener appliances generally off er signifi cantly superior features. For example, our engineers are constantly working on innovative solutions for reducing power and water consumption. Siemens’ Zeolith drying system for dishwashers (energy effi ciency A-30%) is a great example of the groundbreaking innovation that is possible, even in categories that already

feature extremely effi cient appliances. In fact, Siemens’ iQ700 dishwasher with Zeolith drying is the world’s most energy-effi cient dishwasher.” Siemens also lays claim to producing the world’s most energy-effi cient tumble dryer, which over a 5-year period could save up to £450 on running costs.

Maximising promotionPoint-of-sale materials are an essential aid to raising eco-awareness and educating consumers in-store; however, Beko’s Les Wicks believes more needs to be done: “The appliance industry has always been excellent at delivering innovation, but not so good at maximising its promotion,” he contends. “Manufacturers and retailers alike issue increasing amounts of information to consumers, so the task must now be to ensure that feature benefi ts, including energy ratings, are clear, concise and easy to understand and relate to. This will help ensure that ‘go green’ messaging remains a powerful

selling tool for retailers.” He explains that POS materials available for Beko’s WMB81445L ‘A+++++’ washing machine focus on the product’s ability to wash two loads for the price of one. “This is an easily understandable and quantifi able statement that consumers can relate to, which will help them recognise the benefi ts of buying this model.”

Indesit Company also highlights the importance of good promotional material.

Advertising and Communications Manager Libby Morley says that both brands – Indesit and Hotpoint – supply retailers with dedicated POS packs for appliances and off er an online ordering service for such. She stresses that retailers should “make good use” of the materials provided and “take advantage of any training provided too.” Indesit Company

has 18 multi-skilled trainers on the road, covering built-in and freestanding products.

Hotpoint’s Iain Starkey also fl ags up the fact that selected products in the brand’s collection are factory-fi tted with the Eco Tech symbol, which is Hotpoint’s guarantee of “class-leading, environmentally friendly performance.” He adds that many of the brand’s appliances also have eco features and energy ratings printed onto the fascias.

Gorenje, too, has taken steps to help consumers quickly and easily identify energy-effi cient appliances. Marketing Manager Ruth Ferguson advises that the brand has introduced the Eco Care label across its appliance range. “This identifi es the most energy-effi cient products by providing a visual aid that is of benefi t both to consumers and retailers. POS materials for this label are also available for retailers to allow them to highlight the products that are the most green.”

Confusion cooking?While the focus on environmental concerns relating to the use of laundry, dishwashing and refrigeration products has continued to strengthen in the past decade, less consumer interest seems to have been aroused by the ‘greening’ of ovens – perhaps because progress in this area hasn’t been communicated to the same degree as in wet and cold appliances. The fact that only electric ovens are labelled in accordance with EU regulations, as there is no standard for measuring the effi ciency of gas ovens, and that other cooking appliances such as hobs and microwaves do not come under the labelling system is probably a tad confusing for consumers too.

Nonetheless, signifi cant moves have been made to improve effi ciencies in the one cooking sector that does carry the energy label, despite some dissent amongst manufacturers as to how consumption is measured (skeptics question the use of the ‘brick test’ in determining energy ratings), and when the new EU label for electric ovens is made compulsory, it may be that some uniformity in the manner in which ratings are communicated will help minimise consumer confusion and increase awareness.

THE GREEN ROOM

Professional cooling technology keeps food quality and nutrition at its bestAEG’s ProFresh NoFrost combi-bottom fridge freezer range keeps 99% of the moisture in food for a week, for superb freshness and quality, while using 20% less energy than A-class models.

Cooking like a professional means having the best ingredients. Keeping those ingredients at their best between weekly shopping trips, though, is a challenge. Standard no-frost fridge freezers have just one cooling system, resulting in extremely dry air in the fridge compartment which dehydrates food and compromises freshness and quality.

AEG’s ProFresh fridge freezers, however, have two separate cooling systems. This means that temperature and humidity in the fridge compartment can be optimised.

Neue Klasse designThe ProFresh Plus fridge freezer is also in the Neue Klasse design family, which suits modern kitchens and lifestyles.

AEG Trade Sales: 08445 610610www.aeg.co.uk

“People are de� nitely interested in energy-ef� cient appliances but do not want to pay a premium for the privilege of owning them”

SIGNIFICANT MOVES HAVE BEEN MADE TO IMPROVE ENERGY EFFICIENCY IN OVENS

Indesit Washing Machinewith Smart Technology.

Maximum performance. Minimum waste.

Indesit Washing Machine

Special cycles dedicated to duvets, shirts, jeans, outwear, delicates & wool keep fabrics like new, ensuring maximum washing effi ciency.

Special Shoes programme keeps sport shoes like new saving you the time and effort needed to wash them by hand.

Stand-by function automatically turns display off after a few minutes of inactivity to cut down on energy consumption.

Ergonomic handle design for easier gripping. A Larger door for easier loading. New practical user-friendly display.

A++ superior energy effi ciency, the new Prime washing machines save you time, energy and water whilst offering the optimum washing performance.

www.indesitprime.co.uk

The new Prime washing machine uses Smart Technologyto measure the amount of cottons and synthetics in theload optimising the cycle duration, temperature, washing and rinsing phases to reduce water and energy consumption by as much as 60%, in up to 50% less time*.*compared to traditional cycles with full loads. Discover the new Prime

line of home applianceswith Smart Technology.

Discover the new Primeline of home applianceswith Smart Technology.

11330 Prime WM Ad 210x297.indd 1 17/6/11 15:35:03

24

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In some corners of the market, greater energy effi ciency is accompanied by greater oven capacities. Hoover’s Prodige, for example, has a cavity almost 40% larger than standard, at 76 litres, yet the appliance is rated A-20%. Some of the models have a divider that allows the cavity to be split into two ‘fl exi’ cooking zones with independent temperature controls – a further saving in energy if only one zone is required.

Samsung added to its Dual Cook oven range in 2011 with the Dual Cook Steam oven – the fi rst product to provide the choice of splitting the oven in two to cook at independent temperatures with the option of using steam technology. Andrew Jones says the 65-litre appliance is AAA-rated for energy and saves up to a further 25% when using the upper cavity only.

Hotpoint recently introduced two new Openspace ovens, one with pyrolytic cleaning and the other with Stay Clean catalytic liners. As with existing Openspace models, these new A-rated, 70-litre ovens have an insulating divider that allows the cavity to be split into two independently controlled compartments.

Early this year, AEG introduced Neue Kollektion single ovens rated at A-10%, with Pyroluxe versions in the A-20% category, and Gorenje took the step of increasing the capacity of its Pure built-in ovens to 65 litres, with an “even better” energy rating of A-20%.

CommunicationWhile the arrival of the new energy label should make ratings easier to communicate at the point of sale, additional and proprietary environment-friendly features will continue

to need explaining. An example of such is provided by Amica country manager Simon Freear, who highlights the Eco function incorporated into the brand’s A-rated Scandium oven. Freear explains that the feature utilises residual heat inside the oven chamber to regulate energy consumption.

He also points out that the Scandium’s Aqualytic cleaning system uses 90% less energy than its pyrolytic counterparts; although, for some, this may be seen as comparing apples with oranges, as aqua-based cleaning systems, though said to be “kinder to the environment”, are not considered by all to be as eff ective as pyrolytic, especially on heavily soiled and greasy cavities.

Steve Dickson, Commercial Manager for Belling, believes it is crucial for retailers to get additional “eco messages” across to customers. “For example, the Belling Bl60i – the fi rst induction oven on the market – off ers a saving of £75 per year on energy bills, and this cold, hard fi gure is often enough to capture the customer’s imagination before you even talk about the product’s other features.” When used in induction mode, the Bl60i consumes 50% less energy than an A-rated oven.

A greener futureEnergy effi ciency and sustainability are now fi rmly established as fundamental elements in the design of kitchen appliances, and manufacturers have continued to drive technological advances in energy, water and consumables savings to such a high that one would be forgiven for asking if there is any more room for further improvement and progress.

Looking ahead at the strongest trends and potential developments in eco technologies, Gorenje’s Ruth Ferguson thinks that products will continue to develop at “lightning speed”, off ering even better energy effi ciencies. “We believe that key trends for product development will be the integration and use

of Smart Grid technology and rechargeable batteries to allow consumers to minimise energy costs, with remote operation of appliances also an area of interest.”

Whirlpool, too, sees Smart Grid technology as the future. Dean McKelvie says the brand’s Green Generation range of appliances is the “fi rst step” in the enablement process. He also highlights the company’s GreenKitchen 2.0™ – a concept that takes “best in class” technology and delivers an integrated eco-system obtained by combining individual appliances in a synergetic way in order to save or reuse water, heat and energy. The technology increases energy savings by up to 70% and accommodates integration into the Smart Grid system.

Beko’s Les Wicks is also thinking along the lines of recovery & recycling resources, envisaging more in the way of heat recovery systems playing a part in the future: “The heat from the back of a fridge or freezer could be used as a heat source for the home or to provide warmer air input for the tumble dryer. And as water becomes scarcer we will have to be more inventive about how it can be used. Perhaps water that has been used in the dishwasher should be recycled and used in a second process,” he suggests.

It is worth mentioning at this point that the new Maytag dishwasher, model ref: MDW 606 AWG, achieves its low level of water consumption by saving the water from the fi nal rinse in a dedicated reservoir where it is recycled for use at the beginning of the next programme. The appliance uses an unprecedented 6 litres of water to wash 13 place settings, providing proof that, inch by inch, the development and discovery of eco technologies continues to edge forward. Perhaps not at the same pace witnessed throughout the noughties, but as the line goes: one small step for man; one giant leap for mankind.

THE GREEN ROOM

CANDY’S GRANDO EVO WASHING MACHINE INCORPORATES A 20C WASH PROGRAMME THAT DELIVERS A 40C RESULT

PREMIUM COOL WITH ‘GREEN’ CREDENTIALS: NEFF’S COOLDELUXE REFRIGERATION RANGE

The Platinum collection combines innovative technology and stunning aesthetics

with environmental credentials. One day all kitchens will perform this well.

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In some corners of the market, greater energy effi ciency is accompanied by greater oven capacities. Hoover’s Prodige, for example, has a cavity almost 40% larger than standard, at 76 litres, yet the appliance is rated A-20%. Some of the models have a divider that allows the cavity to be split into two ‘fl exi’ cooking zones with independent temperature controls – a further saving in energy if only one zone is required.

Samsung added to its Dual Cook oven range in 2011 with the Dual Cook Steam oven – the fi rst product to provide the choice of splitting the oven in two to cook at independent temperatures with the option of using steam technology. Andrew Jones says the 65-litre appliance is AAA-rated for energy and saves up to a further 25% when using the upper cavity only.

Hotpoint recently introduced two new Openspace ovens, one with pyrolytic cleaning and the other with Stay Clean catalytic liners. As with existing Openspace models, these new A-rated, 70-litre ovens have an insulating divider that allows the cavity to be split into two independently controlled compartments.

Early this year, AEG introduced Neue Kollektion single ovens rated at A-10%, with Pyroluxe versions in the A-20% category, and Gorenje took the step of increasing the capacity of its Pure built-in ovens to 65 litres, with an “even better” energy rating of A-20%.

CommunicationWhile the arrival of the new energy label should make ratings easier to communicate at the point of sale, additional and proprietary environment-friendly features will continue

to need explaining. An example of such is provided by Amica country manager Simon Freear, who highlights the Eco function incorporated into the brand’s A-rated Scandium oven. Freear explains that the feature utilises residual heat inside the oven chamber to regulate energy consumption.

He also points out that the Scandium’s Aqualytic cleaning system uses 90% less energy than its pyrolytic counterparts; although, for some, this may be seen as comparing apples with oranges, as aqua-based cleaning systems, though said to be “kinder to the environment”, are not considered by all to be as eff ective as pyrolytic, especially on heavily soiled and greasy cavities.

Steve Dickson, Commercial Manager for Belling, believes it is crucial for retailers to get additional “eco messages” across to customers. “For example, the Belling Bl60i – the fi rst induction oven on the market – off ers a saving of £75 per year on energy bills, and this cold, hard fi gure is often enough to capture the customer’s imagination before you even talk about the product’s other features.” When used in induction mode, the Bl60i consumes 50% less energy than an A-rated oven.

A greener futureEnergy effi ciency and sustainability are now fi rmly established as fundamental elements in the design of kitchen appliances, and manufacturers have continued to drive technological advances in energy, water and consumables savings to such a high that one would be forgiven for asking if there is any more room for further improvement and progress.

Looking ahead at the strongest trends and potential developments in eco technologies, Gorenje’s Ruth Ferguson thinks that products will continue to develop at “lightning speed”, off ering even better energy effi ciencies. “We believe that key trends for product development will be the integration and use

of Smart Grid technology and rechargeable batteries to allow consumers to minimise energy costs, with remote operation of appliances also an area of interest.”

Whirlpool, too, sees Smart Grid technology as the future. Dean McKelvie says the brand’s Green Generation range of appliances is the “fi rst step” in the enablement process. He also highlights the company’s GreenKitchen 2.0™ – a concept that takes “best in class” technology and delivers an integrated eco-system obtained by combining individual appliances in a synergetic way in order to save or reuse water, heat and energy. The technology increases energy savings by up to 70% and accommodates integration into the Smart Grid system.

Beko’s Les Wicks is also thinking along the lines of recovery & recycling resources, envisaging more in the way of heat recovery systems playing a part in the future: “The heat from the back of a fridge or freezer could be used as a heat source for the home or to provide warmer air input for the tumble dryer. And as water becomes scarcer we will have to be more inventive about how it can be used. Perhaps water that has been used in the dishwasher should be recycled and used in a second process,” he suggests.

It is worth mentioning at this point that the new Maytag dishwasher, model ref: MDW 606 AWG, achieves its low level of water consumption by saving the water from the fi nal rinse in a dedicated reservoir where it is recycled for use at the beginning of the next programme. The appliance uses an unprecedented 6 litres of water to wash 13 place settings, providing proof that, inch by inch, the development and discovery of eco technologies continues to edge forward. Perhaps not at the same pace witnessed throughout the noughties, but as the line goes: one small step for man; one giant leap for mankind.

THE GREEN ROOM

CANDY’S GRANDO EVO WASHING MACHINE INCORPORATES A 20C WASH PROGRAMME THAT DELIVERS A 40C RESULT

PREMIUM COOL WITH ‘GREEN’ CREDENTIALS: NEFF’S COOLDELUXE REFRIGERATION RANGE

The Platinum collection combines innovative technology and stunning aesthetics

with environmental credentials. One day all kitchens will perform this well.

“Compact system cameras are a good choice for high street retailers as they lead to additional accessory sales of lenses, memory cards, fl ashguns, bags and tripods.”

Toshiba’s Hicks also thinks that “another area for healthy sales is HD camcorders – current models like our Camileo range are really popular, as they off er a lot of high end features for a relatively low cost – so consumers get a great deal too.”

Mix of opportunitiesAlthough emerging portable markets such as tablets and e-readers are gaining most of the media coverage, more established portable formats can still reap dividends. Owen Watters, Roberts Radio

sales and marketing director, says “portable radios continue to off er a huge potential for high street retailers and we off er a wide range of models to refl ect the broad scope of models that consumers seek.” It’s a view supported by Colin Crawford, Pure’s director of marketing. “I’m not going to pretend,” he says, “that digital radio has the market potential of tablets, but there is still a real appetite in the UK for radio on the move, as continued product success in this area shows. This is particularly true for independents, as the multiples don’t show off personal products very eff ectively.” Sales of portable products are driven by a number of factors, including size, price, design, performance, convenience, content, apps, says Roberts’ Watters. Pure’s Crawford says the biggest driver for digital radio is content, followed by build quality, sound quality and convenience.

It’s amazing what we carry around with us these days – everything from smartphones to MP3 players, e-readers, tablets, cameras,

camcorders, digital radios and media players. The world of portable devices has certainly come a long way since the days when the Walkman tape player was at the cutting edge of portable technology. For retailers, the portable boom is both exciting and challenging: exciting because it opens the way for a host of new products and formats; but with the challenge of choosing the right products, brands and technologies with the strongest sales potential.

Where will it carry us next?Not surprisingly, there are many opinions when it comes to the products most likely to lead the portable communications explosion. Paul Hicks, Toshiba’s DPS (Digital Products & Services) business development manager, says “tablet devices will be a big driver for retailers. They’re the newest signifi cant device category, and they secure a large space in the retail market, which in turn brings additional footfall into stores. There is also a wide range of accessories that go with tablets, so there’s an incremental business opportunity for retailers.”

The success of Apple’s iPad (which sold two million units in its fi rst two months on the market) has seen many companies entering a market that was previously thought to be a niche sector. Sony, for example, has announced two new tablets, which are due this autumn. Sony is also one of the leading supporters of e-readers, devices that allow users to pack hundreds of e-books into a palm-sized device. Amazon says that sales of e-books now outstrip traditional books, and although many people are sceptical about the potential success of e-readers, this market is set to grow over the coming years.

For Alex Windle, LG’s head of marketing mobile, “2011 is very much the year of the smartphone, with devices becoming richer in features and turning into sophisticated all-in-one multimedia devices. Smartphones also off er retailers higher margins.” Nick White, head of digital imaging, Samsung, says that devices which off er features that appeal to a wide audience are best suited to high street retailers, as these

tend to generate the most sales. “Also, products which require accessories can deliver a good boost in sales for

high street retailers,” he adds. He cites the example of Samsung’s

NX11 camera, which has similar technology to a digital SLR but

in a compact form.

THE TOSHIBA CAMILEO RANGE DELIVERS HD QUALITY AND CONVENIENCE IN A LIGHT, COMPACT PACKAGE

PURE’S MOVE OFFERS DAB ON THE MOVE WITH A CHOICE OF STYLISH CASES

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PORTABLE CE DEVICES

Time was when FM transistor radios - and then the revolutionary Sony Walkman tape player - were the last word in portable CE devices. Today, the category has expanded to include on-the-move access to huge libraries of music and books, sophisticated gaming, the means to watch, shoot and share still and moving images, direct voice-to-voice contact with people all over the world, and computing power that only a short time ago would have been more than acceptable on the big, fi xed desktop in the offi ce. George Cole looks at what consumers are carrying now, and what they’re likely to be carrying in the future

Lucy Edwards, Fujifi lm’s marketing manager, digital cameras, notes that, “with regards to cameras, performance is still a key driver in the market. Consumers are realising that to get quality images they need a dedicated device as a step-up from using a camera phone. Additional functionality is also important too, such as GPS, which can automatically tag photos with the location they were taken. Simpler controls and touch screens, easy upload to websites such as Facebook, plus stylish designs, have all been well received in the digital camera market recently”.

Price is only one factorLG’s Windle says that the smartphone market is opening up as many smartphone manufacturers support the Android mobile platform, and there is much scope for diff erentiation through features and design. LG was fi rst to market with dual-core [fast processor] smartphones and is continuing its commitment to 3D, with the development of a smartphone that off ers glasses-free 3D. LG’s Optimus 2X smartphone can be connected to a TV and used as a gaming controller. Samsung’s White says that “consumers do think about price when considering the purchase of a product, but this isn’t the only key driver in their decision. Consumers seek value in the form of design, brand, features and overall performance, and these attributes are equally important to them. We are also seeing a tendency towards consumers investing in products that will provide the latest innovations in technology as a way of future-proofi ng their investment.” Samsung’s SH100 camera, for example, is Wi-Fi enabled, so consumers can easily share their images over the internet.

The success of Apple in the digital music market (iPods take around 70% of the digital music player market), smartphones (the iPhone dominates the market, although the Android platform is catching up, as noted above) and tablets, shows how powerful brands are in this sector. “Brand names are always important where consumers want an assurance of quality. This is particularly the case with compact cameras, where image quality is the driving force behind consumers looking to upgrade from their camera phones,” says Fujifi lm’s Edwards. LG’s Windle agrees: “When purchasing smartphones and tablets, consumers look to brands they trust.” Consumers like to buy from brands they trust and know will support them with their product for years to come, adds Samsung’s White. Toshiba’s Hicks agrees that brand names do play a part in a consumer’s decision-making process - although it’s not always the major factor, he says. “In today’s marketplace, consumers are very savvy with their money and will make an informed judgment, based on in-depth research, brand trust and whether a product is fi t for their needs.”

Horses for courses?Many portable devices are the electronic equivalent of the Swiss Army Knife, and off er multiple functions. A smartphone, for example, can also be used as a digital camera, games player, digital music player and digital photo album. So is there still a place for the dedicated device? LG’s Windle thinks “the trend is moving towards more integrated products. Smartphones can pack a huge range of functions into one device. In general, this is what consumers are opting for - ease of use and convenience, as they don’t want to carry many diff erent devices around with them.” But others are not so sure, including Omar Gurnah, Sony category marketing manager, who says: “As smartphones get cheaper, sales of high-end MP3 players will fall. However, sales of entry-level to mid range players are fl at, and that is because people are buying MP3 players as

a secondary music player. You don’t want to go running with a £500 smartphone, or use up all of your phone’s battery on the daily commute. That is where dedicated music players come in.” Toshiba’s Hicks adds: “There are natural limitations to any do-it-all device. There will always be people that want more functionality from a device, and this is where manufacturers have an opportunity to add value for customers. This is especially true of devices like camcorders, where physical components, such as optics, are required for better images.”

Consumers will choose products that best meet their requirements, so there will

continue to be demand for both integrated and specialist products,

says Samsung’s White: “Camera phones have increased the demand for

digital cameras by taking photography to a wider audience. Many of today’s mobile phones off er consumers a wide array of features and

signifi cantly improved image quality, but their primary function is telecommunication. The digital camera’s primary function is to take high quality pictures, and that is why they will always come out on top for photography enthusiasts.” Fujifi lm’s Edwards also sees camera phones as less of a threat and more of a stimulus to digital camera sales: “Many consumers’ introduction to digital photography is now via camera phones, which actually benefi ts the market by increasing the overall interest in photography. After this initial experience, many consumers look for better image quality and more fl exibility, which inevitably leads them to a dedicated camera product.” And as Pure’s Crawford notes, “you still can’t get digital radio on smartphones, and until then, our customers certainly say they want simplicity.”

Balance of powerFor a long time, consumer electronics companies dominated all sectors of the portable communications market, but computer companies like Apple have moved into areas such as digital music and turned it upside down. So, can consumer electronics manufacturers maintain a strong grip on this sector? “With a continued rise in integrated products,” notes Samsung’s White, “CE companies that are

strong across a range of categories will be better placed than those which only focus on one or two categories. There are also signifi cant growth opportunities for CE companies in convergence. Samsung’s smartphones, for example, can be used as a remote control for LED televisions as well as a viewing device for one of our latest cameras.” White also believes that by enabling simple connectivity to various portable devices, consumers are more inclined to purchase devices from brands that have products across a range of CE categories.

Effi cient retailA combination of display, demonstration and dialogue with the customer can help sell portable products. “The ability to create a positive customer experience through the presentation of products in-store is a huge advantage,“ says Samsung’s White. “It is important to allow consumers to interact with products. If retailers can demonstrate the capabilities, consumers are going to be more impressed than merely seeing them on a shelf. An impressive way of displaying products is to showcase how they connect with each other to demonstrate convergence.”

Fujifi lm’s Edwards adds that demonstration is always key to persuading consumers to move up the quality scale. “Retailers should look to have a wide range of products available to test, and with respect to cameras, should also create diff erent scenarios in-store that demonstrate the functionality of the products.” Roberts’ Watters says that colour can play a part, too. “Colour is fantastic at drawing in consumers. Our Revival spring colour window competition was so successful the retailers kept the window display for a lot longer than required.” And Sony’s Gurnah points out that “we have retailer display solutions especially made for independent dealers to help them demonstrate products in-store - something many of the larger retailers can’t do.”

“Tablet devices will be a big driver for retailers”

THE SONY READER: A WHOLE READANYWHERE LIBRARY IN A SLIM, COMPACT DEVICE

SONY WALKMAN OF THE DIGITAL GENERATION

APPLE’S IPOD TRANSFORMED THE PORTABLE AUDIO MARKET

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“For retailers, the portable boom is both exciting and challenging”

“Compact system cameras are a good choice for high street retailers as they lead to additional accessory sales of lenses, memory cards, fl ashguns, bags and tripods.”

Toshiba’s Hicks also thinks that “another area for healthy sales is HD camcorders – current models like our Camileo range are really popular, as they off er a lot of high end features for a relatively low cost – so consumers get a great deal too.”

Mix of opportunitiesAlthough emerging portable markets such as tablets and e-readers are gaining most of the media coverage, more established portable formats can still reap dividends. Owen Watters, Roberts Radio

sales and marketing director, says “portable radios continue to off er a huge potential for high street retailers and we off er a wide range of models to refl ect the broad scope of models that consumers seek.” It’s a view supported by Colin Crawford, Pure’s director of marketing. “I’m not going to pretend,” he says, “that digital radio has the market potential of tablets, but there is still a real appetite in the UK for radio on the move, as continued product success in this area shows. This is particularly true for independents, as the multiples don’t show off personal products very eff ectively.” Sales of portable products are driven by a number of factors, including size, price, design, performance, convenience, content, apps, says Roberts’ Watters. Pure’s Crawford says the biggest driver for digital radio is content, followed by build quality, sound quality and convenience.

It’s amazing what we carry around with us these days – everything from smartphones to MP3 players, e-readers, tablets, cameras,

camcorders, digital radios and media players. The world of portable devices has certainly come a long way since the days when the Walkman tape player was at the cutting edge of portable technology. For retailers, the portable boom is both exciting and challenging: exciting because it opens the way for a host of new products and formats; but with the challenge of choosing the right products, brands and technologies with the strongest sales potential.

Where will it carry us next?Not surprisingly, there are many opinions when it comes to the products most likely to lead the portable communications explosion. Paul Hicks, Toshiba’s DPS (Digital Products & Services) business development manager, says “tablet devices will be a big driver for retailers. They’re the newest signifi cant device category, and they secure a large space in the retail market, which in turn brings additional footfall into stores. There is also a wide range of accessories that go with tablets, so there’s an incremental business opportunity for retailers.”

The success of Apple’s iPad (which sold two million units in its fi rst two months on the market) has seen many companies entering a market that was previously thought to be a niche sector. Sony, for example, has announced two new tablets, which are due this autumn. Sony is also one of the leading supporters of e-readers, devices that allow users to pack hundreds of e-books into a palm-sized device. Amazon says that sales of e-books now outstrip traditional books, and although many people are sceptical about the potential success of e-readers, this market is set to grow over the coming years.

For Alex Windle, LG’s head of marketing mobile, “2011 is very much the year of the smartphone, with devices becoming richer in features and turning into sophisticated all-in-one multimedia devices. Smartphones also off er retailers higher margins.” Nick White, head of digital imaging, Samsung, says that devices which off er features that appeal to a wide audience are best suited to high street retailers, as these

tend to generate the most sales. “Also, products which require accessories can deliver a good boost in sales for

high street retailers,” he adds. He cites the example of Samsung’s

NX11 camera, which has similar technology to a digital SLR but

in a compact form.

THE TOSHIBA CAMILEO RANGE DELIVERS HD QUALITY AND CONVENIENCE IN A LIGHT, COMPACT PACKAGE

PURE’S MOVE OFFERS DAB ON THE MOVE WITH A CHOICE OF STYLISH CASES

26

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PORTABLE CE DEVICES

Time was when FM transistor radios - and then the revolutionary Sony Walkman tape player - were the last word in portable CE devices. Today, the category has expanded to include on-the-move access to huge libraries of music and books, sophisticated gaming, the means to watch, shoot and share still and moving images, direct voice-to-voice contact with people all over the world, and computing power that only a short time ago would have been more than acceptable on the big, fi xed desktop in the offi ce. George Cole looks at what consumers are carrying now, and what they’re likely to be carrying in the future

Lucy Edwards, Fujifi lm’s marketing manager, digital cameras, notes that, “with regards to cameras, performance is still a key driver in the market. Consumers are realising that to get quality images they need a dedicated device as a step-up from using a camera phone. Additional functionality is also important too, such as GPS, which can automatically tag photos with the location they were taken. Simpler controls and touch screens, easy upload to websites such as Facebook, plus stylish designs, have all been well received in the digital camera market recently”.

Price is only one factorLG’s Windle says that the smartphone market is opening up as many smartphone manufacturers support the Android mobile platform, and there is much scope for diff erentiation through features and design. LG was fi rst to market with dual-core [fast processor] smartphones and is continuing its commitment to 3D, with the development of a smartphone that off ers glasses-free 3D. LG’s Optimus 2X smartphone can be connected to a TV and used as a gaming controller. Samsung’s White says that “consumers do think about price when considering the purchase of a product, but this isn’t the only key driver in their decision. Consumers seek value in the form of design, brand, features and overall performance, and these attributes are equally important to them. We are also seeing a tendency towards consumers investing in products that will provide the latest innovations in technology as a way of future-proofi ng their investment.” Samsung’s SH100 camera, for example, is Wi-Fi enabled, so consumers can easily share their images over the internet.

The success of Apple in the digital music market (iPods take around 70% of the digital music player market), smartphones (the iPhone dominates the market, although the Android platform is catching up, as noted above) and tablets, shows how powerful brands are in this sector. “Brand names are always important where consumers want an assurance of quality. This is particularly the case with compact cameras, where image quality is the driving force behind consumers looking to upgrade from their camera phones,” says Fujifi lm’s Edwards. LG’s Windle agrees: “When purchasing smartphones and tablets, consumers look to brands they trust.” Consumers like to buy from brands they trust and know will support them with their product for years to come, adds Samsung’s White. Toshiba’s Hicks agrees that brand names do play a part in a consumer’s decision-making process - although it’s not always the major factor, he says. “In today’s marketplace, consumers are very savvy with their money and will make an informed judgment, based on in-depth research, brand trust and whether a product is fi t for their needs.”

Horses for courses?Many portable devices are the electronic equivalent of the Swiss Army Knife, and off er multiple functions. A smartphone, for example, can also be used as a digital camera, games player, digital music player and digital photo album. So is there still a place for the dedicated device? LG’s Windle thinks “the trend is moving towards more integrated products. Smartphones can pack a huge range of functions into one device. In general, this is what consumers are opting for - ease of use and convenience, as they don’t want to carry many diff erent devices around with them.” But others are not so sure, including Omar Gurnah, Sony category marketing manager, who says: “As smartphones get cheaper, sales of high-end MP3 players will fall. However, sales of entry-level to mid range players are fl at, and that is because people are buying MP3 players as

a secondary music player. You don’t want to go running with a £500 smartphone, or use up all of your phone’s battery on the daily commute. That is where dedicated music players come in.” Toshiba’s Hicks adds: “There are natural limitations to any do-it-all device. There will always be people that want more functionality from a device, and this is where manufacturers have an opportunity to add value for customers. This is especially true of devices like camcorders, where physical components, such as optics, are required for better images.”

Consumers will choose products that best meet their requirements, so there will

continue to be demand for both integrated and specialist products,

says Samsung’s White: “Camera phones have increased the demand for

digital cameras by taking photography to a wider audience. Many of today’s mobile phones off er consumers a wide array of features and

signifi cantly improved image quality, but their primary function is telecommunication. The digital camera’s primary function is to take high quality pictures, and that is why they will always come out on top for photography enthusiasts.” Fujifi lm’s Edwards also sees camera phones as less of a threat and more of a stimulus to digital camera sales: “Many consumers’ introduction to digital photography is now via camera phones, which actually benefi ts the market by increasing the overall interest in photography. After this initial experience, many consumers look for better image quality and more fl exibility, which inevitably leads them to a dedicated camera product.” And as Pure’s Crawford notes, “you still can’t get digital radio on smartphones, and until then, our customers certainly say they want simplicity.”

Balance of powerFor a long time, consumer electronics companies dominated all sectors of the portable communications market, but computer companies like Apple have moved into areas such as digital music and turned it upside down. So, can consumer electronics manufacturers maintain a strong grip on this sector? “With a continued rise in integrated products,” notes Samsung’s White, “CE companies that are

strong across a range of categories will be better placed than those which only focus on one or two categories. There are also signifi cant growth opportunities for CE companies in convergence. Samsung’s smartphones, for example, can be used as a remote control for LED televisions as well as a viewing device for one of our latest cameras.” White also believes that by enabling simple connectivity to various portable devices, consumers are more inclined to purchase devices from brands that have products across a range of CE categories.

Effi cient retailA combination of display, demonstration and dialogue with the customer can help sell portable products. “The ability to create a positive customer experience through the presentation of products in-store is a huge advantage,“ says Samsung’s White. “It is important to allow consumers to interact with products. If retailers can demonstrate the capabilities, consumers are going to be more impressed than merely seeing them on a shelf. An impressive way of displaying products is to showcase how they connect with each other to demonstrate convergence.”

Fujifi lm’s Edwards adds that demonstration is always key to persuading consumers to move up the quality scale. “Retailers should look to have a wide range of products available to test, and with respect to cameras, should also create diff erent scenarios in-store that demonstrate the functionality of the products.” Roberts’ Watters says that colour can play a part, too. “Colour is fantastic at drawing in consumers. Our Revival spring colour window competition was so successful the retailers kept the window display for a lot longer than required.” And Sony’s Gurnah points out that “we have retailer display solutions especially made for independent dealers to help them demonstrate products in-store - something many of the larger retailers can’t do.”

“Tablet devices will be a big driver for retailers”

THE SONY READER: A WHOLE READANYWHERE LIBRARY IN A SLIM, COMPACT DEVICE

SONY WALKMAN OF THE DIGITAL GENERATION

APPLE’S IPOD TRANSFORMED THE PORTABLE AUDIO MARKET

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“For retailers, the portable boom is both exciting and challenging”

GROWTH FROM KNOWLEDGE

Growth from Knowledge

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Portable audio has undergone a series of transformations over the last half-century, exploring a few blind alleys on the way but continuing to innovate and adapt to changing consumer demands. It has stood up remarkably well to the recent pressures on the Consumer Electronics sector. With accessories such as headphones scoring growth in a depressed market, and the rise of DAB boosting portable radio sales, Portable Audio certainly has legs. GfK account director Nick Simon looks at trends and current performance

Portable Audio: not getting carried away with its success

For further information please contact Nick Simon in the UK on +44 870 603 8128 or email [email protected]. www.gfkrt.com/uk

GfK. Growth from Knowledge

T he Portable Audio market has been constantly redefi ned over the last fi fty years. Hence its relative

durability. Forty years ago we were restricted to pre-recorded music played back on a portable cassette recorder, which the more adventurous of us connected to a microphone and then rammed it up against a radio with questionable Lo-Fi results. Then the Radio Cassette Recorder came along, and the larger boombox version became a 1980s style icon, when we also embraced the new personal stereo products that developed as a three-way split of cassette, radio and radiocassette products, whose common feature was the headphones that were supplied with each. In the nineties we had the relative cul de sacs of mini disc and especially Digital Compact Cassette.

The rise of MP3/4You could say that in the last ten years we successfully got the whole portable audio recording and listening experience taped, as it were. Since 2001, MP3 players and their more sophisticated video equivalent have accounted for sales in excess of 30 million units, without even considering the numerous mobile phones that also double as music players.

Unfortunately this crossover, and the sheer volume of products sold to date, have led to a slowdown in sales, with the 4.6 million units sold in the 52 weeks ending April 2011 being a pale refl ection of the 6.1 million units sold in the previous moving year ending April 2010. You could have been forgiven for assuming that these woeful tidings, together with the much publicised slowdown of the whole Consumer Electronics industry, would have left the Portable Audio sector in a similar state of acute decline. But the 52 week ending comparison sees a reduction of “only” -10.9% in value, compared to -16.7% for the MP3/MP4 market ( which is still worth 65% of the total category).

Headphones driving aheadThe real success story is the continued growth of the Headphones market (up 12% and 14% in units and value respectively), demonstrating the popularity of top-end

noise cancellation products in particular, and also the reluctance of consumers to abandon traditional headphones while still purchasing copious amounts of new style in-ear products. The total market size of the product is nearly fi ve million units, equating to £135 million.

DAB broadens portable possibilitiesOf course, a fundamental plus factor of the whole Portable category is the inexorable rise of DAB. Although we should give credit to manufacturers of essentially static Audio Systems for the support that they have provided, the dominant product is the Portable Radio, with Clock Radios too contributing to a total DAB market whose products are twice as likely as their static counterparts to be portable. In addition, this market is now enjoying the stimulus of internet radio, allowing access to a worldwide off er of diff erent broadcasting.

• Listen to over 15,000 stations from around the world• Play your music collection from your computer • Wireless connection • Auxiliary input socket for iPod/MP3 playback• Headphone socket • Battery or mains operation

www.robertsradio.co.uk

ROBERTS

FREERemote Control App

GROWTH FROM KNOWLEDGE

Growth from Knowledge

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Portable audio has undergone a series of transformations over the last half-century, exploring a few blind alleys on the way but continuing to innovate and adapt to changing consumer demands. It has stood up remarkably well to the recent pressures on the Consumer Electronics sector. With accessories such as headphones scoring growth in a depressed market, and the rise of DAB boosting portable radio sales, Portable Audio certainly has legs. GfK account director Nick Simon looks at trends and current performance

Portable Audio: not getting carried away with its success

For further information please contact Nick Simon in the UK on +44 870 603 8128 or email [email protected]. www.gfkrt.com/uk

GfK. Growth from Knowledge

T he Portable Audio market has been constantly redefi ned over the last fi fty years. Hence its relative

durability. Forty years ago we were restricted to pre-recorded music played back on a portable cassette recorder, which the more adventurous of us connected to a microphone and then rammed it up against a radio with questionable Lo-Fi results. Then the Radio Cassette Recorder came along, and the larger boombox version became a 1980s style icon, when we also embraced the new personal stereo products that developed as a three-way split of cassette, radio and radiocassette products, whose common feature was the headphones that were supplied with each. In the nineties we had the relative cul de sacs of mini disc and especially Digital Compact Cassette.

The rise of MP3/4You could say that in the last ten years we successfully got the whole portable audio recording and listening experience taped, as it were. Since 2001, MP3 players and their more sophisticated video equivalent have accounted for sales in excess of 30 million units, without even considering the numerous mobile phones that also double as music players.

Unfortunately this crossover, and the sheer volume of products sold to date, have led to a slowdown in sales, with the 4.6 million units sold in the 52 weeks ending April 2011 being a pale refl ection of the 6.1 million units sold in the previous moving year ending April 2010. You could have been forgiven for assuming that these woeful tidings, together with the much publicised slowdown of the whole Consumer Electronics industry, would have left the Portable Audio sector in a similar state of acute decline. But the 52 week ending comparison sees a reduction of “only” -10.9% in value, compared to -16.7% for the MP3/MP4 market ( which is still worth 65% of the total category).

Headphones driving aheadThe real success story is the continued growth of the Headphones market (up 12% and 14% in units and value respectively), demonstrating the popularity of top-end

noise cancellation products in particular, and also the reluctance of consumers to abandon traditional headphones while still purchasing copious amounts of new style in-ear products. The total market size of the product is nearly fi ve million units, equating to £135 million.

DAB broadens portable possibilitiesOf course, a fundamental plus factor of the whole Portable category is the inexorable rise of DAB. Although we should give credit to manufacturers of essentially static Audio Systems for the support that they have provided, the dominant product is the Portable Radio, with Clock Radios too contributing to a total DAB market whose products are twice as likely as their static counterparts to be portable. In addition, this market is now enjoying the stimulus of internet radio, allowing access to a worldwide off er of diff erent broadcasting.

• Listen to over 15,000 stations from around the world• Play your music collection from your computer • Wireless connection • Auxiliary input socket for iPod/MP3 playback• Headphone socket • Battery or mains operation

www.robertsradio.co.uk

ROBERTS

FREERemote Control App

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HEAD IN THE CLOUD?Will the homes of the future have

racks of CDs, DVD boxed sets and Blu-ray libraries? Or will

all our entertainment content be stored on the internet? If you’ve been reading the news recently, you can’t have missed the hype over Cloud services, with Apple’s iCloud being the latest in a long line of planned ventures. A Cloud service basically stores your content - such as music and photos – online rather than you having a physical copy in the home. Google, Amazon, Sony and Samsung are other companies that have announced Cloud services.

The idea is that our music, photos and

(eventually) videos are held in a cyber

locker – an online storage depot - which

streams or downloads our content to

various devices such as smartphones,

computers, Smart TVs and media players.

It sounds like an enticing proposition

– no need to clutter up your home with

hundreds of discs, and the ability to

access your entertainment content

anywhere there’s an internet connection.

Even the Hollywood studios are getting

in on the act with the Ultraviolet, a new

online movie service we talked about

some time ago. Ultraviolet will allow users

to purchase movies, which are stored

online and accessed by various devices.

But will Cloud services replace

physical content? Many people now rip

their CDs to music library programs like

Apple’s iTunes – a friend of mine does this

and then packs his CDs in the loft. But it’s

another thing to dispense with owning a

physical copy and leaving all your content

online. There are also issues about piracy

– something music and movie companies

are concerned about when it comes to

Cloud services like Apple’s iCloud and

Amazon’s Cloud Drive. Cloud services also

rely on us having access to fast, reliable

broadband services – something many

homes lack. And there’s also the issue

of having your Cloud account hacked or

attacked by viruses and other malware.

I purchase a fair number of individual

tracks from iTunes, but if I want to buy

an album, I still prefer to own a physical

copy. But perhaps it’s just my age, and

maybe younger consumers are quite

happy about not owning a physical copy

of an album, boxed set or movie? Cloud

services certainly have implications for

manufacturers of consumer electronics

equipment. And let’s not forget that

Apple has a strong track record in

disrupting existing markets and formats

– look what it did to the music and

mobile phone markets.

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

George Cole

YOUR WHOLE LIFE IN YOUR POCKETIn this month’s feature on portable devices (page 22), there’s a discussion on whether

consumers want devices with multiple

functions, such as smartphones that also

play music and take digital snaps. As you’ll

see from the feature, opinion is divided over

the merits of all-singing, all-dancing devices.

But naturally, mobile phone companies see

things differently and there are already

plans for smartphones to replace our cash,

credit cards and debit cards, by turning

the mobile phone into a mobile wallet that

stores electronic cash. Barclaycard and

Everything Everywhere (parent company

to Orange and T-Mobile) have already

launched a mobile payment service in the

UK, Quick Tap. The scheme initially involves

around 50,000 retailers that have special

contactless readers that use short-range

wireless technology called Near Field

Communications (NFC). Consumers who sign

up to the scheme (they need an NFC-enabled

phone) can purchase goods by simply

waving their smartphone in front of a reader.

No more scrabbling around for cash or

waiting for your card to be processed. Now,

Everything Everywhere has teamed up with

Vodafone and Orange to develop an industry

standard for mobile payments. Guy Laurence,

Vodafone UK’s chief executive, believes the

scheme will enable “everyone to put their

whole life in their pocket on one device.”

But the industry will have to convince

people that the system offers robust

security and privacy – and that it’s no

more expensive than paying by cash. Even

then, some industry insiders are sceptical,

pointing out that consumers will need an

NFC handset and retailers will have to invest

in new infrastructure (such as readers and

IT systems). And as one person pointed out:

“I’m not convinced that using your mobile

phone to save time when you purchase

a hamburger is going to be a compelling

reason for consumers to use the system.”

GEORGE COLE GETS CONNECTED

Flair for repairA great customer experience doesn’t just come down to fantastic products. At Domestic

& General we understand how excellent after-sales care will improve customer loyalty

to your brand. And with a 94% post-repair satisfaction rate, we’re expert at giving our

customers and our partners something to smile about.

[email protected]

30

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HEAD IN THE CLOUD?Will the homes of the future have

racks of CDs, DVD boxed sets and Blu-ray libraries? Or will

all our entertainment content be stored on the internet? If you’ve been reading the news recently, you can’t have missed the hype over Cloud services, with Apple’s iCloud being the latest in a long line of planned ventures. A Cloud service basically stores your content - such as music and photos – online rather than you having a physical copy in the home. Google, Amazon, Sony and Samsung are other companies that have announced Cloud services.

The idea is that our music, photos and

(eventually) videos are held in a cyber

locker – an online storage depot - which

streams or downloads our content to

various devices such as smartphones,

computers, Smart TVs and media players.

It sounds like an enticing proposition

– no need to clutter up your home with

hundreds of discs, and the ability to

access your entertainment content

anywhere there’s an internet connection.

Even the Hollywood studios are getting

in on the act with the Ultraviolet, a new

online movie service we talked about

some time ago. Ultraviolet will allow users

to purchase movies, which are stored

online and accessed by various devices.

But will Cloud services replace

physical content? Many people now rip

their CDs to music library programs like

Apple’s iTunes – a friend of mine does this

and then packs his CDs in the loft. But it’s

another thing to dispense with owning a

physical copy and leaving all your content

online. There are also issues about piracy

– something music and movie companies

are concerned about when it comes to

Cloud services like Apple’s iCloud and

Amazon’s Cloud Drive. Cloud services also

rely on us having access to fast, reliable

broadband services – something many

homes lack. And there’s also the issue

of having your Cloud account hacked or

attacked by viruses and other malware.

I purchase a fair number of individual

tracks from iTunes, but if I want to buy

an album, I still prefer to own a physical

copy. But perhaps it’s just my age, and

maybe younger consumers are quite

happy about not owning a physical copy

of an album, boxed set or movie? Cloud

services certainly have implications for

manufacturers of consumer electronics

equipment. And let’s not forget that

Apple has a strong track record in

disrupting existing markets and formats

– look what it did to the music and

mobile phone markets.

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

George Cole

YOUR WHOLE LIFE IN YOUR POCKETIn this month’s feature on portable devices (page 22), there’s a discussion on whether

consumers want devices with multiple

functions, such as smartphones that also

play music and take digital snaps. As you’ll

see from the feature, opinion is divided over

the merits of all-singing, all-dancing devices.

But naturally, mobile phone companies see

things differently and there are already

plans for smartphones to replace our cash,

credit cards and debit cards, by turning

the mobile phone into a mobile wallet that

stores electronic cash. Barclaycard and

Everything Everywhere (parent company

to Orange and T-Mobile) have already

launched a mobile payment service in the

UK, Quick Tap. The scheme initially involves

around 50,000 retailers that have special

contactless readers that use short-range

wireless technology called Near Field

Communications (NFC). Consumers who sign

up to the scheme (they need an NFC-enabled

phone) can purchase goods by simply

waving their smartphone in front of a reader.

No more scrabbling around for cash or

waiting for your card to be processed. Now,

Everything Everywhere has teamed up with

Vodafone and Orange to develop an industry

standard for mobile payments. Guy Laurence,

Vodafone UK’s chief executive, believes the

scheme will enable “everyone to put their

whole life in their pocket on one device.”

But the industry will have to convince

people that the system offers robust

security and privacy – and that it’s no

more expensive than paying by cash. Even

then, some industry insiders are sceptical,

pointing out that consumers will need an

NFC handset and retailers will have to invest

in new infrastructure (such as readers and

IT systems). And as one person pointed out:

“I’m not convinced that using your mobile

phone to save time when you purchase

a hamburger is going to be a compelling

reason for consumers to use the system.”

GEORGE COLE GETS CONNECTED

Flair for repairA great customer experience doesn’t just come down to fantastic products. At Domestic

& General we understand how excellent after-sales care will improve customer loyalty

to your brand. And with a 94% post-repair satisfaction rate, we’re expert at giving our

customers and our partners something to smile about.

[email protected]

32

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FROM THE BENCH

HOW THE VIEWING EXPERIENCE HAS CHANGED!

Alan Bennett examines some of the peripheral factors in TV viewing

Perfect viewing

I t was good to see independent electrical dealers achieving a high customer satisfaction score in the last (June) issue of Which? magazine. They achieved 12th place in a consumer

survey of 100 shops of all types; Richer Sounds came � rst, PC World 98th, Currys Digital 94th and Comet joint 82nd. In a popularity survey con� ned to electrical shops independents came sixth out of 22, with Richer Sounds � rst, Comet and Currys joint 14th, and PC World second to last. Considering that these scores take price (where independents struggle to compete with the big boys) into account, they have done well, but could do better! It seems that Richer Sounds scored best on account of ‘great’ stock, pricing and staff expertise.

Expertise and product knowledge has always distinguished

independent dealers, and this extends beyond the basics of

speci� cations, features and price – into such spheres as installation,

ambience and other in-home factors. In the March issue we

discussed aspects of ambient light. Time now to consider other

in� uences in viewing, applicable to in-shop demonstration rooms,

customers’ installations and advice to those purchasing equipment,

especially when it comes to such things as screen size and 3D

screen type.

Screen size and placingTV buyers generally choose a smaller screen than is ideal for their

viewing. To get the best out of movies and sports the widescreen

diagonal should be about 33–40% of viewing distance for SD

pictures, and 50–66% for HD and 3D viewing. Thus with the sofa 3m

from a full HD picture a 60-inch screen is appropriate, 42–44inch

for a 2m spacing, and so on. At greater distances the full detail

capability can be lost.

Regarding the mounting position, in front of or under a window is

better – to minimise re� ections and image washout – than facing one.

This can compete with any open � re in the room to become the ‘focal’

wall. To assess the chances of installing a TV screen over a � re, � t a

reasonably deep shelf to de� ect the warm airstream, then check the

temperature at the wall above with a thermometer when the � re is

running. Compare the reading with the ambient temperature rating in

the TV’s speci� cation. Take care that light from the screen does not fall

on the front panels of nearby set-top boxes or disc players, etc. – it can

wipe out remote control operation. The less light falling on the screen

the better, and soft backlighting is best as we saw in the March issue.

It is not for me to join in the huge controversy of active versus

passive 3D systems currently raging, but I believe that the passive

type has the advantage in many respects except that of 3D image

de� nition. There are systems afoot to overcome this. Certainly with

passive screens you can have all your mates or family in to watch

the football or Green Hornet 3D without needing to spend a grand

on viewing glasses...

Viewing position and soundFor the best possible

TV experience the viewer

should be within about ±15°

(30°cone, max. 50°cone) of

the vertical and horizontal

centre lines of the screen.

This avoids ill effects due to

the screen structure, and

the geometric distortion

arising from ‘slant’ viewing

of a 2D display. The room

furnishings should ideally be dark in colour to absorb light, and

not hard and shiny; these re� ect and echo sound, though here, as

with loudspeakers, we are getting into con� ict with other functions

of the lounge! The ideal, of course, is a dedicated cinema/sports

viewing room.

Surround sound loudspeakers are fairly tolerant of their

mounting position so long as a reasonable symmetry is achieved

with L, R and the two rear ones, and the centre speaker is close to

– or behind – the screen; no longer does it need to be magnetically

shielded. The subwoofer can go virtually anywhere in the room:

some top systems (not for living rooms!) now use two woofers. It

is possible to switch two speakers between a TV-surround and a

two-channel Hi-Fi system if required using double-pole two-way

switches, best set before either system is switched out of standby.

When working with a separate surround system mute the TV’s own

speakers to avoid weird phasing and other effects.

For in-shop demonstrations of hi-def and 3D TV keep two or

three brilliant Blu-ray discs, and play whichever is most appropriate

to the customers in your armchairs!

Setting upCorrect setting up is crucial to TV picture reproduction. Avoid hard,

glaring, brassy images like those preset by (e.g.) ‘Turbo’, ‘Vivid’

and ‘Dynamic’ modes: they are for competing with other makes in

brightly-lit showrooms and dealers’ windows. With many models

the ‘normal’ or similar pre-set, or with all the analogue controls at

about 50% or 60%, is a good starting point. Getting the best possible

black level is important so choose the lowest LCD backlight setting

consistent with adequate brightness and contrast. If you have a

light meter about 100–300 lux average (e.g. with a test-chart display)

is a good setting for most viewing. It is possible for your customer,

or for you in a demonstration room, to have a TV screen set up and

calibrated by an ISF (Imaging Science Foundation) professional, or

even to become one yourself: see www.greyscalesolutions.com

and www.homecinemaengineering.com

E-mail: [email protected]

Check out our new website: www.dad-online.co.ukEmail us today for your log in details so you can take advantage

of the new site!

P Live Stock Levels

P New Ordering System

P Wider Range of Products

P New Weekly Offers

P Downloadable Special Offer Sheets

P Downloadable Shop Floor Specials

TEl: 0844 854 6715

Domestic Appliance Distributors, Henry John House, Northway Lane, Ashchurch, Tewkesbury, Gloucestershire, GL20 8JH

Open 6 days a week

Domestic Appliance Distributors are your home goods specialist. We are a major distributor of domestic appliances and electronic goods throughout the UK. It is our job to bring you the newest appliances at the lowest prices.

We stock the latest brands and continue to offer expert and friendly advice to our customers. We pride ourselves with offering the best prices with the best service.

Email our web team on [email protected] check us out on

We bring you the lowestprices

32

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FROM THE BENCH

HOW THE VIEWING EXPERIENCE HAS CHANGED!

Alan Bennett examines some of the peripheral factors in TV viewing

Perfect viewing

I t was good to see independent electrical dealers achieving a high customer satisfaction score in the last (June) issue of Which? magazine. They achieved 12th place in a consumer

survey of 100 shops of all types; Richer Sounds came � rst, PC World 98th, Currys Digital 94th and Comet joint 82nd. In a popularity survey con� ned to electrical shops independents came sixth out of 22, with Richer Sounds � rst, Comet and Currys joint 14th, and PC World second to last. Considering that these scores take price (where independents struggle to compete with the big boys) into account, they have done well, but could do better! It seems that Richer Sounds scored best on account of ‘great’ stock, pricing and staff expertise.

Expertise and product knowledge has always distinguished

independent dealers, and this extends beyond the basics of

speci� cations, features and price – into such spheres as installation,

ambience and other in-home factors. In the March issue we

discussed aspects of ambient light. Time now to consider other

in� uences in viewing, applicable to in-shop demonstration rooms,

customers’ installations and advice to those purchasing equipment,

especially when it comes to such things as screen size and 3D

screen type.

Screen size and placingTV buyers generally choose a smaller screen than is ideal for their

viewing. To get the best out of movies and sports the widescreen

diagonal should be about 33–40% of viewing distance for SD

pictures, and 50–66% for HD and 3D viewing. Thus with the sofa 3m

from a full HD picture a 60-inch screen is appropriate, 42–44inch

for a 2m spacing, and so on. At greater distances the full detail

capability can be lost.

Regarding the mounting position, in front of or under a window is

better – to minimise re� ections and image washout – than facing one.

This can compete with any open � re in the room to become the ‘focal’

wall. To assess the chances of installing a TV screen over a � re, � t a

reasonably deep shelf to de� ect the warm airstream, then check the

temperature at the wall above with a thermometer when the � re is

running. Compare the reading with the ambient temperature rating in

the TV’s speci� cation. Take care that light from the screen does not fall

on the front panels of nearby set-top boxes or disc players, etc. – it can

wipe out remote control operation. The less light falling on the screen

the better, and soft backlighting is best as we saw in the March issue.

It is not for me to join in the huge controversy of active versus

passive 3D systems currently raging, but I believe that the passive

type has the advantage in many respects except that of 3D image

de� nition. There are systems afoot to overcome this. Certainly with

passive screens you can have all your mates or family in to watch

the football or Green Hornet 3D without needing to spend a grand

on viewing glasses...

Viewing position and soundFor the best possible

TV experience the viewer

should be within about ±15°

(30°cone, max. 50°cone) of

the vertical and horizontal

centre lines of the screen.

This avoids ill effects due to

the screen structure, and

the geometric distortion

arising from ‘slant’ viewing

of a 2D display. The room

furnishings should ideally be dark in colour to absorb light, and

not hard and shiny; these re� ect and echo sound, though here, as

with loudspeakers, we are getting into con� ict with other functions

of the lounge! The ideal, of course, is a dedicated cinema/sports

viewing room.

Surround sound loudspeakers are fairly tolerant of their

mounting position so long as a reasonable symmetry is achieved

with L, R and the two rear ones, and the centre speaker is close to

– or behind – the screen; no longer does it need to be magnetically

shielded. The subwoofer can go virtually anywhere in the room:

some top systems (not for living rooms!) now use two woofers. It

is possible to switch two speakers between a TV-surround and a

two-channel Hi-Fi system if required using double-pole two-way

switches, best set before either system is switched out of standby.

When working with a separate surround system mute the TV’s own

speakers to avoid weird phasing and other effects.

For in-shop demonstrations of hi-def and 3D TV keep two or

three brilliant Blu-ray discs, and play whichever is most appropriate

to the customers in your armchairs!

Setting upCorrect setting up is crucial to TV picture reproduction. Avoid hard,

glaring, brassy images like those preset by (e.g.) ‘Turbo’, ‘Vivid’

and ‘Dynamic’ modes: they are for competing with other makes in

brightly-lit showrooms and dealers’ windows. With many models

the ‘normal’ or similar pre-set, or with all the analogue controls at

about 50% or 60%, is a good starting point. Getting the best possible

black level is important so choose the lowest LCD backlight setting

consistent with adequate brightness and contrast. If you have a

light meter about 100–300 lux average (e.g. with a test-chart display)

is a good setting for most viewing. It is possible for your customer,

or for you in a demonstration room, to have a TV screen set up and

calibrated by an ISF (Imaging Science Foundation) professional, or

even to become one yourself: see www.greyscalesolutions.com

and www.homecinemaengineering.com

E-mail: [email protected]

Check out our new website: www.dad-online.co.ukEmail us today for your log in details so you can take advantage

of the new site!

P Live Stock Levels

P New Ordering System

P Wider Range of Products

P New Weekly Offers

P Downloadable Special Offer Sheets

P Downloadable Shop Floor Specials

TEl: 0844 854 6715

Domestic Appliance Distributors, Henry John House, Northway Lane, Ashchurch, Tewkesbury, Gloucestershire, GL20 8JH

Open 6 days a week

Domestic Appliance Distributors are your home goods specialist. We are a major distributor of domestic appliances and electronic goods throughout the UK. It is our job to bring you the newest appliances at the lowest prices.

We stock the latest brands and continue to offer expert and friendly advice to our customers. We pride ourselves with offering the best prices with the best service.

Email our web team on [email protected] check us out on

We bring you the lowestprices

BACKCHAT

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�Barry Kick is a Director of UK TV supplier Linsar. He has used his determination, patience and creativity to build

a company that – to his own surprise – has been accepted in the UK industry. He has a strong af� nity with water

(though a decent pint of real ale is always acceptable), has a thing for high speed, and admits to lying to his wife.

Why did you choose to work in the electrical industry? I grew up learning all about the latest gadgets from my father, who worked in the industry for most of his career

Who in the industry would you like to spend time with? I love spending time with all the guys at Linsar, but especially my co-director Terry Reed who is the only person who really understands the challenges we have faced and overcome. I would also like to meet James Dyson – clever bloke!

What makes you laugh?I like slapstick humour, which makes my son the funniest person I know

What was the greatest turning point in your life? The birth of my son

Hobbies? I love getting out on the water, whether on a board or anything else that fl oats. Also I am a bit of a gym freak and love skiing and mountain biking

What’s the worst lie you’ve ever told?I won’t be home late (see below…)

What’s your greatest regret?Letting old friends drift out of contact

What historic fi gure do you identify with?Winston Churchill – love the fi ghting spirit

How would you describe yourself?Determined, patient, creative

How do you think others see you?Ambitious, capable, pedantic!

What’s your pet hate? People who think the world owes them something, and arrogance

Do you have any bad habits?Telling my wonderful wife I will not be home late, then coming home late!

If you weren’t in your present position, what job would you choose to do?Pro waterskier/wakeboarder

Favourite TV programme?Anything Sci-Fi. Love a good movie, too

What surprises you?How well our company has been accepted in the industry

Favourite cuisine? A really good steak or a reasonably dangerous curry!

You have been off ered a leading role in a fi lm of your choice. What character would you like to play? It would have to be Superman – I know I can’t fl y and look more like his nemesis but it would be fun to pretend for a while!

You have been off ered the opportunity to rule the world for a day. What would be the fi rst change you would make? I would end the suff ering of children; if they are happy, eventually everything else will fall into place…

Is there anything about yourself that you would like to change?I would increase the amount of loft insulation and give myself a good singing voice!

Do you have any hidden talents?I can strip and re-build a car/boat engine without fi nding I have a screw left over!

Do you have any particular fetishes?High speed!

What would you put into Room 101?Gordon Brown – spent all that money and we have nothing to show for it other than debt and a section of society who have forgotten the value of hard work

What’s your greatest achievement?Creating the life we have as a family in Bournemouth

What sort of music do you like?Anything uplifting – Trance, Drum & Bass

Favourite quote?If you can keep your head while all those around you have lost theirs, you probably don’t fully understand the situation!

Who has been the greatest infl uence in your life? My parents, for more reasons than I can write here

Name your poison? Decent pint of real ale

What do you daydream about?Being on the water with the sun shining

What’s your favourite holiday destination?Even split between the beach and mountains, Obergurgl is a great European ski holiday

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

What’s the best kind of punishment….Finding that reincarnation actually exists and you have come back as a frog…

…and who deserves it?I can think of a few people!

Where do you see yourself in 5 years’ time?A further evolved version of where I am now, plus Dad to two little ones (another one on the way!)

What’s your greatest fear? Anything bad happening to my family

Who do you most admire? Barack Obama is phenomenal as an orator and a statesman

What’s your favourite piece of kit?My boat – it’s a passion

What motto do you live by?It’s a mad world; just get on with it…

Tomorrow I will……keep building Linsar and get a bit closer to my dreams

Independent Electrical Retailer:“There’s been another wave of carnage on the high street, electrical retailing is suffering and the big electrical multiples must be thinking ‘recovery? What recovery?’ As an independent I don’t know whether to see it as an opportunity, or as a sign that we’re all doomed. One thing’s for sure: just keeping on doing the same thing and hoping for the best is not an option. My business is small enough to refocus, quickly adjust to new ways of turning a pro� t…. but the choices are life or death to smaller retailers like myself.”

The latest technology, free 5 yearguarantee, gorgeous designs.

be inspired...

Plug, Play, Record Live TV functions (via USB).

Free USB key for all registered products*. *Terms and Conditions apply - see www.linsar.com for details

Please contact us on 0845 555 1101 and find out why Linsar is The British brand for the independent dealer.

BACKCHAT

34

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NN

ECTE

D

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LY 2

011

�Barry Kick is a Director of UK TV supplier Linsar. He has used his determination, patience and creativity to build

a company that – to his own surprise – has been accepted in the UK industry. He has a strong af� nity with water

(though a decent pint of real ale is always acceptable), has a thing for high speed, and admits to lying to his wife.

Why did you choose to work in the electrical industry? I grew up learning all about the latest gadgets from my father, who worked in the industry for most of his career

Who in the industry would you like to spend time with? I love spending time with all the guys at Linsar, but especially my co-director Terry Reed who is the only person who really understands the challenges we have faced and overcome. I would also like to meet James Dyson – clever bloke!

What makes you laugh?I like slapstick humour, which makes my son the funniest person I know

What was the greatest turning point in your life? The birth of my son

Hobbies? I love getting out on the water, whether on a board or anything else that fl oats. Also I am a bit of a gym freak and love skiing and mountain biking

What’s the worst lie you’ve ever told?I won’t be home late (see below…)

What’s your greatest regret?Letting old friends drift out of contact

What historic fi gure do you identify with?Winston Churchill – love the fi ghting spirit

How would you describe yourself?Determined, patient, creative

How do you think others see you?Ambitious, capable, pedantic!

What’s your pet hate? People who think the world owes them something, and arrogance

Do you have any bad habits?Telling my wonderful wife I will not be home late, then coming home late!

If you weren’t in your present position, what job would you choose to do?Pro waterskier/wakeboarder

Favourite TV programme?Anything Sci-Fi. Love a good movie, too

What surprises you?How well our company has been accepted in the industry

Favourite cuisine? A really good steak or a reasonably dangerous curry!

You have been off ered a leading role in a fi lm of your choice. What character would you like to play? It would have to be Superman – I know I can’t fl y and look more like his nemesis but it would be fun to pretend for a while!

You have been off ered the opportunity to rule the world for a day. What would be the fi rst change you would make? I would end the suff ering of children; if they are happy, eventually everything else will fall into place…

Is there anything about yourself that you would like to change?I would increase the amount of loft insulation and give myself a good singing voice!

Do you have any hidden talents?I can strip and re-build a car/boat engine without fi nding I have a screw left over!

Do you have any particular fetishes?High speed!

What would you put into Room 101?Gordon Brown – spent all that money and we have nothing to show for it other than debt and a section of society who have forgotten the value of hard work

What’s your greatest achievement?Creating the life we have as a family in Bournemouth

What sort of music do you like?Anything uplifting – Trance, Drum & Bass

Favourite quote?If you can keep your head while all those around you have lost theirs, you probably don’t fully understand the situation!

Who has been the greatest infl uence in your life? My parents, for more reasons than I can write here

Name your poison? Decent pint of real ale

What do you daydream about?Being on the water with the sun shining

What’s your favourite holiday destination?Even split between the beach and mountains, Obergurgl is a great European ski holiday

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

What’s the best kind of punishment….Finding that reincarnation actually exists and you have come back as a frog…

…and who deserves it?I can think of a few people!

Where do you see yourself in 5 years’ time?A further evolved version of where I am now, plus Dad to two little ones (another one on the way!)

What’s your greatest fear? Anything bad happening to my family

Who do you most admire? Barack Obama is phenomenal as an orator and a statesman

What’s your favourite piece of kit?My boat – it’s a passion

What motto do you live by?It’s a mad world; just get on with it…

Tomorrow I will……keep building Linsar and get a bit closer to my dreams

Independent Electrical Retailer:“There’s been another wave of carnage on the high street, electrical retailing is suffering and the big electrical multiples must be thinking ‘recovery? What recovery?’ As an independent I don’t know whether to see it as an opportunity, or as a sign that we’re all doomed. One thing’s for sure: just keeping on doing the same thing and hoping for the best is not an option. My business is small enough to refocus, quickly adjust to new ways of turning a pro� t…. but the choices are life or death to smaller retailers like myself.”

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