In our Influencers series run in conjunction with Appliance Retailer magazine, Current.com.au speaks to the industry leaders, big brands and well-known identities that have helped shape the electrical retail industry in 2013.
According to Peter Breen, general manager of sales at Sampford IXL (distributor of Gaggenau and Neff), suppliers and retailers alike need to work to keep margins in cooking appliances and to offer consumers the complete offering when it comes to products and service.
How was the first half of 2013 for your business?
Through strong promotions offering value, a persistent product training program to create and maintain our brand champions in store and a dedicated team at Sampford IXL, we started the year well in a still challenging market. Floor traffic remains below expectations but that means we have to put an offer to the consumer that ensures they are taken to our brands by our retail partners and we sell more products in a single transaction.
These days it is not just about an oven, cooktop and rangehood pack only; the premium customer wants compact appliances as well and, of course, a dishwasher to complete the kitchen. Our mindset is we want that package to be all Neff or Gaggenau appliances.
What opportunities do you see for the electrical retailing industry?
Great customer service is the key to growing sales in any business. This means from introduction to a brand on a shop floor or website and throughout the life of the products. Customer service is never affected by the market; it starts with creating the right model and delivering every time.
What threats are currently present in the industry?
Suppliers taking the margin out of the cooking category. We need to protect what we have and avoid the race to the bottom. This is where the pro forma model works beautifully with guaranteed margin. Additionally, stock is held in storage and delivered directly to the customer saving the retailer costs.
What is your favourite product of 2013 so far?
The Gaggenau CX480 full surface induction cooktop — a true luxury product at RRP $11,999. I also am very impressed with new Series 400 Gaggenau cooktops, which complement the CX480 perfectly.