Your Customers Want High-End, Higher-Profit Appliances
The good news is that combined global revenue and shipments of major appliances are expected to grow about 4 percent this year. The better news is that the sale of feature-rich, premium appliances in the 1000 EUR-plus range ($1,300) is one of the market's strongest segments and should increase during the next few years.
"We will grow," said Friedemann Stockle, global director major domestic appliances, GfK Retail and Technology, as he ended his presentation, "Market Outlines for Home Appliances: Sustainable, Convenient and Aspirational Features Drive Appliance Sales," at the recent IFA Global Press Conference in Sardinia.
Stockle was referring to growth in the overall global MAJAP market, but he was especially excited about the trend toward higher-end goods. While many of the numbers focused on Europe and Asia, U.S. appliance retailers should share his enthusiasm and put a little extra focus on that category. Here are a few reasons why, and we're sure you can think of a few more.
- Higher-priced products typically generate higher margins. Consumers shopping in that market will complement the core product with similarly designed and priced add-ons or packages. Does your customer really want to a cheap hood or commonplace faucet or dull flooring with that beautiful fridge, range and dishwasher? No, she doesn't. The same goes for the laundry room. "Consumers are redefining the meaning of value," Stockle said at the conference. "People are saying that price is not as important as value and quality."
- "People want features," Stockle continued, adding that energy efficiency is also a huge selling point. That's fantastic news for appliance dealers. Consumers may be buying more appliances over the Internet, Stockle said, but we all know they need an educated sales associate to hold their hands and teach them about each feature and how to use it.