Competition in the domestic appliances market is exceptionally fierce. In the dishwasher category alone there are more than 15 major brands and over 330 models on offer. With space at a premium, and maintaining operating efficiency vital, retailers must make tough choices.
Across the entire range of domestic appliances – from free standing white goods to small handheld devices – the brand manufacturer is under pressure, and not just from competing brands. Low cost development and manufacturing in the Far East means that the retailer also now has the option of developing and stocking own label products – at the expense of the branded equivalent.
Faced with these competitive pressures, brand owners need to be absolutely clear about their brand values and how these are communicated. Irrespective of what each individual value says, together they must say 'value for money'. No matter where on the scale, from deluxe to economy, a product sits, if it can’t demonstrate value for money, it won’t sell.
Innovation in this market is a given. Talking washing machines, single serve coffee systems and remote control showers were all unheard of just a few years ago. They will be the norm by the end of the decade.
Establishing where innovation will yield the most valuable results calls for deep sectoral knowledge and a real understanding of consumer lifestyles and behavioural patterns. We have both, but we can also bring world-class access to technology solutions, a holistic approach to design and through our office in Hong Kong we can offer a high quality 'design to manufacture' capability in China.
Not only can we help brand owners to innovate within existing categories, but we also help them to understand where else they can play – building on their core competencies and extending into adjacent or complementary market spaces.