laundry
Laundry category gets ready to tumble! With so many players in one market, the consumer is the one who is always going to reap the benefits. But, there is hope for the retailers – how can they get the promised margin back that is going to boost their business? Sean Martin reports. packed market at the moment. There is a lot of hustling and bustling going on in this category. But there obviously isn’t as much spare cash flying around as their once was so it’s imperative that retailers know what the consumer wants. Not only is it a market where the consumer is determined to save money, but by all accounts they’re also looking to save space. The general consensus is that front loader washing machines are on the up. “It’s not a new trend, but it is gathering momentum,” says Parmco’s General Manager, Trevor Preston. “It’s probably been being driven by the major suppliers with the new models that they’re bringing out. We tend to follow international trends. The European’s have been front loading for years. We lag slightly behind Australia, but we’re now catching up with them in terms of that type of product.” Agreeing with Trevor Preston is Tura Gim, Whitegoods Product Manager for Samsung Electronics New Zealand, who says that it is the Asian and European brands that are the reason for the front loader machines: “We are seeing more European and Asian brands push their front loader models into the market. In New Zealand, however, the market still favours top loader machines but front loader machines have certain advantages, which consumers are beginning to favour, so we are seeing definite growth in this category.” Even among the top loader mainstays, there’s recognition of this ongoing trend. Paul Kleinsman, Fisher & Paykel’s General Manager Sales & Marketing New Zealand, concurs that the front loader market is growing, and for that reason Fisher & Paykel has been actively pushing it: “We’re looking at developing it even further. I think that’s because of a number of reasons – I think that’s tied in with the need to conserve energy and water and I think with apartment living laundry is shrinking in size and the need to put washing machines under cupboards or under the bench in order to save space. There has been a massive increase in the size of [the front loader] market in Australia, it’s almost 50/50 now in terms of top loader versus front loader.”
LAUNDRY IS A
You’re such a squeeze The laundry market is tight, competitive, and something of a struggle for some at the moment. With so many players scrambling for their share of the market what effect does this have on the market? “In a tight market the issues are that everyone is clamouring for market share and drives some fairly aggressive behaviour in the marketplace,” says Paul Kleinsman. “I think that the consumer has been winning at the end of the day and the prices represent very good value for the consumer.” Price erosion is a term that was bandied around as if it was the norm as I spoke to the major players for this article. But it’s not just in
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laundry that the consumer want’s more for less, all whiteware categories, with the possible exception of refrigeration according to some, are suffering from the demanding nature of the consumer. As front loading washing machines make inroads, the nature of the beast tells us that more players offering front loading machines means more competition and, almost inevitably, means more price erosion. “If anything we are starting to see big erosional decreases in front loading price points,” says Haier’s New Zealand Brand Manager, Troy Scragg. “The New Zealand public want to see a saving, but they don’t know what they’re saving. Unfortunately if we don’t see a saving, then the category doesn’t grow because there is no other stimulus and we’ll also make the old one last longer.” Yvonne Hong, Brand Manager for Haier, agrees that the market is suffering from a degree of price erosion, but states that this plays to Haier’s advantage: “Consumers are expecting more so they want more features in products at a more affordable price point. That’s where Haier has been so popular. It’s probably been a loss for some brands but a gain for us.” So a super-competitive market isn’t all doom and gloom. Samsung’s Tura Gim says: “New competition puts pressure on margins but the upside for established brands such as Samsung is that we have an ‘edge’ by which we can differentiate ourselves. The newcomers are fighting over a portion of the market that simply puts pressure on their pricing strategies and that is a no-exit street for them. Brand names have never been more important.” And is there any room for another player in an already compact market? “Yes,” he says. “The market is already very full but if new players can give customers a new offering, be it through reliability or price, then there’s always room. This can be seen in the European market, where hundreds of brands compete for a larger share of the market. It is difficult for new brands to differentiate themselves and create an ‘edge’ when entering a market which is already well-served by well-established, reputable brands.” Taking back the margin Adding value back into the category may be seen as a waiting game for some. The economy is still not back into full swing yet, but when it does, or if, get back to where it was then the value will soon follow. Trevor Preston describes the current state of affairs in a nutshell: “It’s more that the end consumer has been more cautious than normal. It’s got to be the recession, the fear of unemployment – all the normal stuff that’s been going through the consumers mind for the last few years.” So what can Parmco, and other suppliers, do to get that much needed injection of value into the category? “Get products with the right features for what the end consumer wants, get the right price
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WARES FEBRUARY 2013
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laundry
SAMSUNG: IT’LL ALL COME OUT IN THE WASH Samsung’s WA456 top load washer means you can do more laundry with its 9.5kg super capacity. The PowerJet feature enables thorough and gentle washing while achieving water usage efficiency by creating a “waterfall” effect in the drum. WA456 is supported by instant troubleshooting via smart phone and the digital inverter controls the machine’s energy output more efficiently by regulating the input and output of power to the machine at the same time to maintain a constant flow. The WF856 8.5kg front load washing machine features Eco Bubble Technology which generates bubbles by dissolving detergent with air and water before the normal cycle begins. The dissolved detergent penetrates into fabric quickly, evenly and deeply and at the same time it helps save energy as it does not need as much hot water for the wash cycle. This technology is easier on fabric because it ensures the detergent is absorbed fully and then washed away easily. It too has a digital inverter. www.samsung.com/nz
F&P GETS BIGGER AND TOUGHER Fisher & Paykel’s CleanSmart 10kg is the brand’s biggest and toughest washer. With precision controls delivering fingertip reassurance, SmartDrive technology and SmartTouch control dial deliver a great
points and make sure that the product quality is top flight,” states Trevor Preston. Much like with any strong relationship, clear communication around features and benefits between suppliers and end consumers, or retailers and end consumers, is crucial. “Samsung is confident that consumers will pay that extra $200-300 dollars if they fully understand the benefits offered by Samsung’s products,” says Tura Gim. Troy Scragg picks up on this, saying that the retailers need to get across the benefits, rather than what discounts are on offer: “It’s going back to the nuts and bolts. [The retailers] need to talk about the features of the product; profile the consumer and give them an educated understanding of what a front loader or top loader can do instead of leading with the fact that they can buy this one $75 cheaper for example.” Haier is currently doing detergent value adds and gift card value adds which allows it to hold the actual value of the appliance being traded, and in turn allows retail to make more margin. That’s not the only promotion Haier is currently offering in an attempt to get the consumer spending. “We have a laundry promotion coming up where with every Haier washing machine you can get up to a $250 Haier gift card which will drive customers back to the retail stores,” explains Yvonne Hong. “If you add a dryer and make it a washer-dryer combo, you also get $50 worth of washing detergent.” The motivation doesn’t really need further explanation behind this but Troy Scragg reckons it’s well worth underlining: “Obviously we work hard to preserve that price point and we’re also [doing the promotion] in March so we’re trying to extend the season by entering it early. No one is going to buy fridges at the moment so we’re trying to get into laundry and grow the category and extend the season by starting it earlier.” F&P’s Paul Kleinsman agrees that retailers can make the most of the products that they have at their disposal if they know more about what they are giving. This is why, like many other brands, Fisher & Paykel offers comprehensive training to keep the retailer up to date. “[It’s about] increasing their knowledge of the products to help them sell up. At the end of the day, the consumer spends a hell of a lot of money on their wardrobe, and they spend relatively a small amount of money on a washing machine that could potentially destroy their wardrobe. Typically, the more you spend on a washing machine, the better clothes care you get.” It’s also about making the offering as simple as possible for the retailer says Kleinsman: “We’ve got a range of products where we start from a fairly basic product and then we step up through a range of models, each of which has a greater feature level than the one underneath it and so there is a real sell up strategy that the retailer can engage on.”
wash every time, through 12 pre-programmed cycles. With its soft close glass lid and robust construction, CleanSmart 10kg offers top quality and durability. With a 4 star energy rating and a 4 star water rating it is also one of the most efficient washers on the market and its 10kg capacity makes it ideal for large families. www.fisherpaykel.co.nz
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Cleaning up in the year ahead Despite a few struggles right now, as I write in February, everyone that I spoke to seems optimistic for the year ahead. Samsung’s Tura Gim again emphasis communication will be key for Samsung in the market this year. “We will continue to drive our key technology message to the market and communicate the benefits of these technologies to consumers, such as the benefits of our Digital Inverter and Bubble Wash technology. Also we are introducing a selection of new models this year – new technology, new design. So exciting times ahead backed by a trusted brand!”
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i-Dos: from Bosch The intelligent automatic dosing system. From the outside the Bosch WAY32840AU simply looks like another beautifully designed Bosch appliance, but it’s the ingenuity lying within that sets it apart. An array of sensors enables the i-Dos automatic dosing system. Sensors detect the load volume, the degree of soiling and even the type of textiles - cotton or synthetic. The precise amount of liquid detergent is then measured and dispensed into the drum and the washing process adjusts accordingly. And automatically. Two intelligent automatic programs are all you need for a perfect wash, every time. Choose Automatic for a normal load, or Automatic Soft for delicates. The range of sensors within the WAY32840AU will do the rest, informing the i-Dos automatic dosing system which then determines the amount of liquid detergent required. Of course, not every load of laundry will be ‘normal’ which is why the WAY32840AU also offers a range of other programs to wash everything from shirts to down wear. The right treatment for every stain Every stain is different, so the HomeProfessional i-Dos washing machine helps to target and remove 16 of the toughest stains. Thanks to the innovative stain removal system, each stain gets the specific treatment it needs. The very latest Bosch technology controls the machine’s intelligent cycles and drum movements for each of the different stain options, so that clothes are washed gently or more vigorously as needed. The revolutionary drum design with its droplet shaped surface, small holes and asymmetrical paddles do the rest – without any need for additional stain removers.
Automatically saves resources The HomeProfessional i-Dos washing machine boasts a 5 star water and 4 star energy rating. Bosch’s VarioPerfect® technology also gives the option of washing laundry faster, or with less energy. Automatically quiet and durable The washing machine features EcoSilence Drive® – a brushless, frictionless magnetic drive, providing strong performance, exceptionally economical, long serving and whisper quiet. Thanks to the AntiVibration Design® sidewalls, vibrations are kept to a minimum, even at high spin speeds. The machine always remains cool, eliminating energy loss and faults caused by frictional heat. Features to make washing simple Boasting a new interface with bright, clear TFT display, the HomeProfessional i-Dos washing machine is easy to use and operate. The amount of time remaining in the wash cycle, as well as the water temperature, spin speed and programs selected are all vividly displayed on the interface. The machine also features intuitive controls and JogDial to ensure that programs can be navigated easily and precisely. For forgotten laundry items, the Start/Pause button with ‘Add’ function allows laundry items to be added mid-cycle, as soon as the wash cycle permits. A Comfort Door opens 180 degrees to enable effortless loading and removal. Quite simply the HomeProfessional i-Dos is the most intelligent Bosch washing machine yet.
laundry
LETTING OFF STEAM WITH PHILIPS The GC3540 Philips Steam Iron features easy gliding on all fabric
HAIER IS UP FRONT
with its SteamGlide soleplate – Philips’ premium soleplate. GC3540
Haier’s front
also offers fewer refills with its 300ml water tank and a 3m cord
loaders, including
ensures great reach. The Steam tip allows the user to get steam into
the HWM80-1401
hard-to-reach areas and the Double Active Calc System prevents scale
and HWM70.1203D,
build-up.
feature a Wave Drum
The GC4412 Steam Iron easily removes creases with 100g steam boost. It too has a SteamGlide soleplate, Double Active Calc
design to protect clothes and make
system and steam tip and an
for better cleaning. Up to 11 programme cycles, include a quick
electronic safety shut-off when left
wash function, which only takes 15 minutes. Haier has also included
unattended.
electronic controls so the user can choose their preferred cycle
The GC8635 PerfectCare Aqua Pressurised Steam Generator is about carefree ironing meaning
with just the touch of a button and an LED display shows the time remaining on each wash. This range is backed by a two year warranty. www.haier.co.nz
that no setting is required with OptimalTemp and a fully visible 2.2L water tank. Iron any ironable garment from without having to adjust the settings. The GC510 QuickTouch Garment Steamer and GC526 QuickTouch Garment Steamer are easy to use without the need for an ironing board. They have a water tank capacity of 1L, an easy steam holder and powerful continuous steam of 30g/m. The GC510 is 1280W whilst the GC526 is 1500W. The GC240 Easy8 Ironing Board has a unique Shoulder Wing System, multilayered board cover, XL board shape, special cord holder, convenient hanging rail, unique storage basket, XL iron tray, child and transport lock. www.philips.co.nz
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And Haier will continue to offer consumers more bang for their buck. A strong winter which continued through to the summer has set the brand in good stead for the rest of the year, especially with its HWMP55-918 washing machine, which Consumer rated as the number one washer in the New Zealand market. Haier claims to currently hold 8.6% retail volume share on a global scale and the fact that it is also now picking up awards only helps its cause. Says Yvonne Hong: “At a global level, in December last year Haier was named the number one brand in major appliances in the world by Euromonitor and this is actually the 4th year that we’ve received this and year on year we’ve grown on a global scale. I think that adds credibility to the brand when you’re not as well known or not as established as other brands.” Troy Scragg picks up on this and emphasises the demand: “It demonstrates the scale of the business. [We] have the capacity to create a machine every 12 seconds.” He continues on this note and expounds upon the current state of the industry: “It’s hard, but there’s no doubt that we can see the market has lifted. There are definitely signs of the market increasing in size. We’ve tracked imports for many years and it’s shown signs of lifting.” This lift is marginal but it’s there. So, if you’re talking to the players at the top end, the market is looking a bit flat, but brands which are active towards the entry level are having a good time of it. How much a consumer spends on a laundry product is dictated by the economy. As the economy picks up, will the consumer spend more on average or have they become used to getting as much discount as possible? Only time will tell on that front.
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