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.
In this instalment, George Liakatos, head of sales at Jura Australia discusses declining selling prices, online sales and the need for suppliers to constantly innovate, even when the market is soft.
How has the first half of 2013 been for your business?
After a strong start to the year, business slowed in the crucial Mother’s Day period for our category. Feedback from our dealers suggests that the slow sales during this period were felt across other categories in appliances. Whilst this is disappointing, we are optimistic that this will turn around with some additional planned activity in the coming months. We had a strong introduction of our new models in April which helped enormously. It’s important that even in difficult times we are still producing and innovating quality new products to our consumers.
What are your predictions for the second half of the year?
We are seeing a gradual return in consumer spending and confidence which is particularly evident in the increase of our premium machine sales. We are confident that this increase will continue through to the end of the year particularly with the introduction of our new Impressa Z9 One Touch.
What opportunities do you see for the electrical retailing industry?
The retail landscape continually evolves and we are seeing new technology playing a more vital role in the development of our industry. Online is continuing its huge growth and we are projecting that a quarter of our sales will be made online in the next 2-to-3 years. Our partners in the US are already experiencing this level of share in their business. Consumers are more tech-savvy than ever and are hungry to engage with retailers using different platforms. It is up to all within the industry to help fulfil this requirement.
What threats are currently present in the industry?
Price deflation would be the biggest threat. Unfortunately the current market is too price driven rather than focusing on quality products and the experience in store. With our increase in premium sales we are confident that consumers are still looking to invest in quality products.
I fear that as an industry we are too pessimistic; with the current conditions creating a market that is focused purely on price and driving ASPs down even further. Such trends make it more difficult for manufacturers to continue investing in new developments and innovating new products, which in the long term is not good for the consumer or business.
What is your favourite product of 2013 so far?
It would have to be our new Impressa Z9 One Touch in stunning piano black. Already a desired product by both our dealers and end consumers, it has performed very well. Its introduction finally completes our premium range with all models being fitted as standard with our TFT display. The improvements in coffee quality are evident with new technology that enhance the coffee experience from our new Aroma + Grinder and revolutionary fine foam technology.