refrigeration
Refrigeration: Is bigger better? The market for refrigerators is expected to pick up with the coming season. But which styles of fridges will be hot? Is bigger going to be better and what new features or advances will we see? Phil Weafer reports. IT’S BEEN A relatively mixed year for refrigeration and there is a real sense that this will continue but then pick up as we near the busiest time of year. Of course, as always, the marketplace is competitive and will continue to be as we approach “refrigeration season”. When asked how the market has been over the last year, Bosch’s Sarah Alexander emphasises the competitive nature of the sector, “It has been a tough year in the refrigeration category, and it is a very competitive market.” Michael Opie, Panasonic’s home appliances Product Manager, draws on an already positive year: “It’s gone quite well for us this year, we’ve been very happy with how sales have gone.” Over at Haier, Tony Scragg feels similarly satisfied: “We’ve had a really good year in refrigeration especially where we play strongest, in that entry-level area of the market.” But Scragg is also quick to temper expectations around the marketplace in general. “It’s been very hard over the last year, there’s no doubt about that. We can see the total market size and it’s been pretty flat but we’ve picked up a good share in that market.”
Pricing becoming “compressed”? Haier’s Troy Scragg also feels that pricing in the market is an issue and one of the factors behind the increased popularity in the larger units: “You’d have to be honest and say that the compression in price is the biggest issue in the market and that has really been driven up in the French door and the side-by-side market.” He continues: “In refrigeration, the top-end core products are getting eroded critically and that’s one of the fundamentals as to why we’ve seen the 400 litre category grow so well because people are stepping up to a larger product [but] at the 300 litre price point.” There are some positive signs emerging from what is a notoriously competitive market, though. Jon Barrell, Sales Director for consumer electronics at Samsung for one says the feeling he has from the channel is positive: “When I gauge the channel and I speak to INSTANT EXPERT – REFRIGERATION • Bigger is becoming better in refrigeration but there’s a danger that price “compression” will simply mean more and bigger fridges will be sold at lower margins… • Bigger means more room inside but it can also bring with it more functionality and other high-tech but usable features that shouldn’t be undersold… • Wine cabinets are an expanding market but they aren’t just small fridges – they require a different sales approach to match the consumer’s investment in what’s stored inside…
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OCTOBER 2013
customers there seems to be good unit growth, some value growth. The feedback from the retail channel is positive.” Nicole Williams at BDT with its Mitsubishi Electric product says the winter months haven’t been as weak as previous years across the market: “We’ve actually had quite a strong winter and the market in general performed quite well which is great because obviously it’s the quiet season. So we’re looking forward to a big summer.” Are French doors filling a need? So what is expected to be the hero of the channel this season? Casting around the market, opinion is that larger capacity units, particularly French door models, will be the stars this summer. This certainly seems to be the consensus from the suppliers I’ve spoken to. Beko’s Murray Linn is one who feels that the larger, more spacious units appear to be what the consumer is looking for: “The market is changing quickly and people are now looking for bigger fridges, they’re looking for side to side or French door fridges that offer more space.” Linn sees the increasing levels of building consents as a good thing for the market and a major reasoning behind the proliferation of larger scale units: “There is a lot more focus amongst homeowners on kitchens now than there used to be. The reality of the market now is that consumers are looking for bigger, better kitchens.” This growth in larger capacity units also reflects the interest consumers have in upgrading. A step-up in refrigeration unit is seen as a big commitment, a luxury item that consumers now look forward to. This is a view that Michael Opie shares, feeling that as more disposable income becomes available to consumers they will be looking to upgrade their kitchens. Jon Barrell at Samsung would agree with this notion and adds this is just one factor behind the rise in demand for larger capacity units: “We’ve done some research and found that one driver behind purchases is people are looking to upgrade, not just replace broken units. That has been a driving factor behind the new units.” The move towards larger capacity units certainly ties in with the trends that are occurring worldwide, especially in the European and American markets. And Nicole Williams says BDT and Mitsubishi Electric are looking to move into the larger capacity aspect as a result: “This is the first time Mitsubishi has had a large capacity fridge over 700L launching. It’s following global trends and we think that the New Zealand consumers will embrace it.” This is a sentiment shared by Sarah Alexander at Bosch, who also sees growth in that market. “Consumers like the concept, the layout of the fridge appeals for larger plates and I see this category growing.” Over at Panasonic, Michael Opie says the move towards the larger
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WARES OCTOBER 2013
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refrigeration
HEAT UP SALES WITH HAIER With living costs on the rise, Haier’s new vertical freezer cares for the environment and frozen foods. The new HVF260 is available in stainless steel and white options and features the latest in automatic defrost technology. Also new from Haier this season is the HTD647RSS French door
LIEBHERR INTEGRATING OPTIONS Integrated appliances can fit in with any design, concealing themselves behind the chosen joinery in any kitchen. Distributed through Award Appliances, leading German manufacturer Liebherr ensures refrigeration is part of this integrated option offering a full range for any preference. No matter what option in the range, be it an underbench refrigerator or French Door, they all feature the Liebherr “door-on-door” system where the joinery door is fixed directly onto the appliance door. Liebherr’s integrated fridges show off the materials, colours and design of any custom kitchen while behind the scenes, cutting edge technology ensures the food is kept fresh and vitamin rich. www.awardappaliances.co.nz
FISHER & PAYKEL: THE NEXT GENERATION Fisher & Paykel is adding to its ActiveSmart fridges this summer. All units in the line include new water dispenser styling and Smart Touch controls combined with design features to match with Fisher & Paykel’s family of kitchen appliances. The hero of the group is the ActiveSmart Fridge – 900mm French Door with Ice & Water 614L. The range has been designed to maximise space as well as access. The French doors bring access to wide-open shelf spaces inside the units. The ActiveSmart feature consists of a microprocessor, interior temperature sensors, independently controlled variable speed fans and multiple air ducts that work together to provide constant feedback and adjusts to the way the owner lives. www.fisherandpaykel.co.nz
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OCTOBER 2013
refrigerator. The new unit has a gross capacity of 634L: 423L in the refrigerator, 211L in the freezer. Interior LED lighting illuminates bright white light which is energy efficient and lasts longer than incandescent lights. www.haier.co.nz
units has certainly aided the company in the market as it is moving towards a sector in which it has had several units already established. “We have five fridges in the 400-500L plus categories which are the two that have grown over the last year and we have got quite a reasonable market penetration having been there for a little over a year now,” he says. But Nicole Williams tempers the overall move towards double-door units, explaining that the Mitsubishi Electric multi door range is still as popular as ever: “I think definitely customers are looking for more than just your traditional two-door fridge. For us obviously we see great popularity with our multi door range, so we think that multi drawer is just as popular as the side-by-side models.” Not just big but functional too Alongside the uptake of higher capacity fridge/freezer units is the continued move towards “smart” products. Opinions differ on the features and technologies which work – or are necessary – but the general consensus is that what the customer finds useful must reign supreme. One aspect that is particularly growing is energy conservation. Smart refrigerators have been talked about for years, without the market moving entirely towards those models. When asked about smart features, Nicole Williams says that functionality will always rule the day on fridges: “I think there’s a bit of a line in the sand between usable features, things like the ability to soft-freeze something or an automatic ice-maker or smart-touch control panel, I think those are realistic features that will probably become more mainstream.” Samsung has certainly made an innovative move with the release of its new AW4 sparkling water refrigerator, the first of its kind. Speaking about the new unit, Jon Barrell says that the product has received a good early reception: “Our focus is on establishing it as a successful unit on the market, it’s a world-first and it’s great because it drives convenience.” Adding that in such a competitive market such as refrigeration, any technological features that can help a product can stand out are a massive plus, Barrel adds Samsung will also be driving Wi-Fi connectivity on the refrigeration units. Panasonic’s Michael Opie is another advocate for his technological advances. Highlighting the work put into energy conservation as a big factor in the advances on new refrigeration units.
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A fridge for every kitchen EBE4300SD The timeless soft curves and sleek stainless steel bar handles will add a touch of style to your kitchen. With the fridge compartment at eye level, the fridge is easily accessible. This refrigerator is a 430L bottom mount with multifunction touch controls on a mark resistant stainless steel classic curved door, with outstanding interiors.
EBM5100SD 510L bottom mount refrigerator with mark resistant stainless steel classic curved door and outstanding interiors
EHE5167SB 510L french door refrigerator with water dispenser, automatic ice maker, stainless steel doors, bar handles and R600a refrigerant
For more information talk to your Electrolux representative or visit www.electrolux.co.nz
ERM3701WE A built in refrigerator offering 370L of frost free refrigeration. Designed to fit seamlessly into your kitchen, while providing energy efficiency.
MPM 8409 1013
ESE6977SG 690L side by side refrigerator with ice and water. Stylish flat door with bar handle and 3 star energy rating
refrigeration
SAMSUNG’S SPARKLING NEW RANGE The newly released Samsung AW4 refrigerator is the first-ever fridge to feature a built-in sparkling water dispenser. The automatic dispenser is powered by Sodastream and delivers filtered sparkling water from the same point on the refrigerator door that produces still water and ice. The dispenser uses a standard Sodastream 60L CO2 cylinder that rests in a small concealed area inside the refrigerator’s left door that can be changed when empty. The AW4 also comes with Samsung’s in-class features such as the Samsung Twin Cooling Plus; Flex Zone drawer and Flexible shelf storage. Samsung has also launched its largest capacity fridge in the shape of the T9000 fridge/freezer that has a 924L capacity and adjustable shelving. The T9000 comes with a compartment on the lower right hand side which can be converted to an extra fridge or freezer, depending on the need of the consumer. Three individual evaporators are used to cool each compartment separately. There are 13 Smart Sensors that monitor internal and external temperatures to help maintain optimal freshness inside the unit. When the unit is opened during the day and the external temperature is high, the compressor increases its speed to cool down the temperature. www.samsung.co.nz
MULTIPLYING ITS RANGE Mitsubishi Electric has added to its multi drawer range and introduces a new colour scheme this season. The new 655L MR-EX655 Connoisseur Multi Drawer was released in October and offers a larger capacity than previous models with slim dimensions due to Vacuum Insulated Panels. The unique Versa Drawer features many options including Soft Freezing for ease of use without having to thaw frozen food and the Supercool function to lock in the flavours of frozen foods. As part of the product update, the Connoisseur range is now available in red. Designed for larger living is Mitsubishi Electric’s first four door refrigerator. The new MR-L710 (L4 Grande) stainless steel refrigerator features a four door French type design, large bottle pockets and heat resistant, easy to clean tempered glass shelves. The vegetable compartment includes humidity control and a vitamin factory to help keep fruit and veg fresher for longer. www.mitsubishi-electric.co.nz
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OCTOBER 2013
Integrating a little niche With larger units becoming an important driver of the market, it would seem that integrated units are becoming less popular and relevant in the sector. So how about that? Are they seeing a decrease in popularity, or are they simply a niche market that will always retain a core consumer group? I asked around the sector to gauge a feeling. Bosch’s Sarah Alexander feels that while integrated units may not be as popular as previous years, there will always be a place for them: “I feel there will always be a market for integrated refrigeration, to achieve a fully integrated/ built-in kitchen design, integrated fridges complete the built-in solution.” So would Alexander consider it a niche product? “Yes, possibly a niche market but it still has a place in the market.” One of the main reasons for integrated models not maintaining the popularity of recent years is cost. It seems that if consumers are looking to spend good money on a refrigerator, they’ll be looking for a large capacity, French door-style unit. BDT’s Williams is amongst those in the market that sees integrated units continuing to be somewhat of a niche product: “They’re not necessarily going to be mainstream; I think they will always be a niche product.” Wine coolers growing in the market Moving away from fridge/freezers, one product that has grown in the marketplace (and appears to continue to do so) is the wine cooler/ cabinet. DéLonghi’s Product Manager for major kitchen appliances and heating, Patrick Neville, says that wine cabinet sales are selling above expectations and anticipates the trend to continue into the summer. “We’ve experienced growth year upon year, and it’s been a strong performing category, we’re comfortable with the sales and feedback from our end users,” he says. Neville also feels that a general awareness of storing wine correctly is growing around the country and will see wine cabinet sales increase in popularity. Haier’s Troy Scragg says the company’s two models (31 bottle and 51 bottle) have been going well and hopes that the summer will continue that success, even though it’s “a very tight market, there’s a lot of business there and we’re happy that both units have been going pretty well.” What has made wine coolers such a popular product? Certainly the New Zealand public is becoming more wine conscious. Patrick Neville points to the uniqueness of the product as a strong selling point for wine cabinets and emphasises their difference to everyday food storage units. “I guess it’s a unique product because it’s not a fridge, we make a clear distinction there. It’s an add-on sale – whilst you have people loving wine you also have people wanting to match it up with a classy beverage centre,” he says. Wine coolers certainly appear to be a product that consumers move up in once they first purchase one. Often, a first-time buyer will go for the smallest, entry level item and then progress upwards. Troy Scragg would certainly go along with this, saying that consumers often find more value in the larger models, while Patrick Neville too sees consumers progressing from the entry level. “Once consumers start getting into the habit of buying wine to store it, they tend to find that a 30 bottle cabinet doesn’t cut the mustard. Once you start, once you appreciate the benefits that a wine cabinet has for your wine, and they are an investment, you want to make sure that it is looked after.”
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SUMMER ’13 ACTIVESMART™ PROMOTION Sell any qualifying Fisher & Paykel ActiveSmart™ fridge 400L+ during the promotional period and your customer receives a selection of premium fresh New Zealand meat worth $300
A SIMPlE ANd VAlUAblE PROMOTION fOR yOUR CUSTOMERS
Promotion runs from 21st October 2013 – 6th January 2014 For more information visit fisherpaykel.co.nz/promotions
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