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Company profile: GfK Retail and Technology
business group director, responsible for the factors have made CE a struggle for
home appliances sector. retailers and manufacturers alike. The GfK MARKET EXPERTISE
most frequently used products, new
Home appliances market
The UK home appliance technologies and products perceived as
market in 2009 ‘essential’ have been the best performers.
“Major and small domestic appliances have Many other traditionally strong categories
been two sides of the same coin this year which have a lower frequency of use and
with major appliances bearing the brunt of are therefore seen more as ‘nice to have’,
hard times falling by nearly 9% in volume. have struggled,” explained Nigel Catlow,
The strong Euro has helped keep value GfK business group director, Consumer
from collapsing too far along with a flight to Electronics.
quality by some consumers replacing “In retailing, buying online has
washers and fridge freezers which resulted continued to grow whilst traditional store
in stark polarisation this year. For the shopping has seen more mixed results.
independent sector, 2009 will be seen as This trend has probably been
particularly harsh as it is on course to see accelerated by the recession but started
well over £20m in lost sales,” commented well before. It is clear that some
Anthony Williams – GfK account director, electronic specialists have done well EROL SUKAN is a business group
home appliances, MDA/SDA using their expertise to install and /or director at GfK Retail and Technology. He
(anthony.williams@gfk.com, 0870 603 offer customised solutions, or simply has more than five years experience
8115). take advantage of consumers’ need for working closely with retailers and
“By contrast, small domestic information on ‘new’ technologies in HD manufacturers in the kitchen sector.
appliances, covering everything from air or the digital switchover. Mass retailers in Erol advises GfK’s extensive client base
conditioners to vacuum cleaners, saw the more price aggressive or bargain on consumer behaviour and high street
nearly a 3% rise in total sales. Significant sectors of the market have also trends and on online trading
contributors as diverse as kettles, shavers performed well in general terms for environments, aiding decisions about
and cookware have all seen growth in the consumer electronics, due in part to the product ranges, marketing and
last 12 months and not all of it focused expansion of display and range of CE merchandising.
around the key Christmas period. products. The middle ground of erol.sukan@gfk.com
“Whilst independents make up just 1% electronic retailing has been more of a 0870 603 8275
of the overall sales of small appliances, struggle and remains so, under price
they remain robust in high value attack from high footfall mass merchants
Consumer electronics
categories like vacuum cleaners and at one end and more personal expertise
coffee makers. This has helped them from specialists at the other.
grow in line with the market reaching “The prospects for 2010 are unclear.
nearly £50m in the last year. There is, of course, room for optimism as
“There is also reason for some many of the key indicators such as
optimism next year in major appliances as consumer confidence are becoming
those forced out of the premium ranges more positive and a number of key CE
offered over the last three years are more markets are recording growth again.
than likely to trade up in the future.“ Inevitably the advent of terrestrial HD
broadcasting will help drive higher value
The consumer electronics flat panel TVs, set top boxes, Blu-ray
market players and their associated accessories.
GfK Retail and Technology has been Linked with the World Cup, this should
tracking the sales of consumer electronics ensure a strong second quarter. These
NIGEL CATLOW is business group
products since 1973, providing clients with HD products are, for the consumer, a
director for consumer electronics at GfK
weekly and monthly reporting and more unknown proposition. This clearly
with over 25 years of experience in
intelligence via GfK Retail Panel. All major gives the chance for all specialists to
market research, marketing management,
distribution channels are monitored, regain some lost ground using their
and marketing communication.
including electrical retailers, technical product expertise. We have seen in the
Nigel has gained his consumer
superstores and internet traders. past that general elections can create a
electronics experience at Philips and at
negative effect as campaigning tends to
Taylor Nelson across diverse markets.
Consumer electronics in 2009 highlight deficiencies, however this is still
Nigel’s career at Philips included both UK
and beyond some months away (early May) leaving
and European roles as well as
“2009 has been one of the toughest years the path clear for a strong second
involvement in product development.
in the industry for many years. The quarter. By then, 2010 models with new
nigel.catlow@gfk.com
weakness of the pound, low consumer features and technologies will adorn
0870 603 8109
confidence and various other economic stores.” ■
January 2010 TheIndependentElectricalRetailer 37
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