By James Wells in Sardinia, Italy

De’Longhi claims it will fight the global downturn by focusing on premium products with features that justify higher prices that consumers will regard as an investment.

In a presentation to the IFA Press Conference on Friday, De'Longhi's global group marketing director, Diamantis Economou, said the company will continue to concentrate on developing its brand in the premium end of the small domestic appliances market.

“We have been driving the premium sector and clearly it can exist in this environment,” Economou said.

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Economou pointed to products selling for over 1,000 euros such as the De’Longhi Primadonna espresso machines and the Kenwood Cooking Chef as products that have provided the company with a worthwhile return on investment in both sales and brand marketing.

“Why are consumers going beyond their reach to purchase premium products – it fundamentally comes back to what you are selling,” he said.

“It was a consumable, now the small domestic appliance category is an investment. When you are spending over 1000 euros, consumers are more critical and they don’t have the cash to burn.

“They are critical and demanding as their access to information is greater, often consumers know more than the sales person – they know what the want and what they are buying.

“Consumers can not afford to buy cheap – it nicely summarises why premium can excel and do well.”

Commenting in a statement presented at the conference, De’Longhi chief marketing officer, Mark Welch, also reinforced the premium message.

“Our strategy is to focus on premium products with clear reason for the consumer to trade up. This has created a sustainable business model which strengthens our leadership position and brings value growth to the market despite the tough economic environment.”