association comment Size and other matters
AMDEA executive Sian Lewis charts the changing assortment of appliances in the UK home, and what it might mean for the future
A
MDEA is oſten asked about how the market for appliances is changing and whether we can
predict new trends. We do know what has changed and what is happening now. So, for instance, we know that the UK leads the
world in the consumption of ready-made chilled meals. But we also measure our homes in terms of habitable rooms not floor area. So for every successful footballer wanting an American-style fridge and a range cooker, there is a myriad of small flat owners with a host of small appliances crammed on top of a washer-dryer. UK households today are more likely to use gas for cooking than our continental cousins, a trend that can be traced back to the mass conversion to natural gas back in the last century. But we also have a very high penetration of microwave ovens using electricity. And an assortment of small electrical gadgets that now includes
electric woks and rice cookers as well as toasters and kettles. And that’s just in the kitchen. A growing range of personal grooming products and entertainment options means that the average UK household now keeps a lot of energy-using products about the place. But over the past 20 years we have also
seen remarkable reductions in the energy use of many appliances and the use of different materials to diminish their impact on the environment and improve their performance. Can we predict any particular trends for the future? There are burgeoning expectations
around so-called smart homes and the promise of interconnected wireless technology offering the consumer control of appliances without even lifting a finger. On the other hand there are growing concerns about data protection and people not taking enough exercise.
One key trend that persists in recent population studies is the number of people who live alone. Approximately 13% of households in the UK consist of one person. But of course just because their census return said they lived alone does not mean that they never have visitors. So the question is, do they do all their washing in one large load or do they do several little ones; do they still want a large oven in case they entertain or would they prefer small specialised gadgets; how often do they use a vacuum cleaner; do they have hair to dry? Lacking a reliable crystal ball we can only guess what might happen next, but human beings are diverse and their demand for appliances seems set to continue for the foreseeable future. • AMDEA is the UK trade association for manufacturers of large and small domestic appliances. It has 42 member companies who between them manufacture over 100 brands
What does the future hold? W
Retra chief executive Bryan Lovewell looks to the future in his final column for IER
hat does the future hold for the independent electrical retailer? If I knew the answer to that I’d
be retiring a very rich man! That said, if you listen and take advice from
industry gurus you will continue to increase your business and prosper. You could even consider attending this year’s annual one day retra conference, which takes place on May 12. There are a number of eminent experts speaking who will pass on their thoughts and expertise that could help to improve your business. You may now be thinking to yourself,
“No way, I’m not wasting my time, I’ve run my business all these years, there’s nothing anybody can tell me about retailing.” Or even that your business model is and has been successful over many decades, it’s never changed and never will. Unfortunately, if you do have that mind set, then you will at some point in the near future be forced to close your business. Just to enforce that statement, in the last twelve months I have sadly witnessed over 80 of our members close their doors. The main reasons?
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Decline in turnover, margin and footfall, increasing rents and wages. Or could it have been a lack of foresight and imagination, a lack of any momentum to move forward? Be honest with yourself, are you doing the same thing and getting the same results, or genuinely looking at ways to adapt to the market and develop your strategy? For example, how often do you review your most valuable marketing tool, your website? I regularly take a look at a number of our members’ websites; in the main they are polite and mediocre. I’ll ask another question; when did you last spend some of your hard earned cash improving your site? Do you see it as just as another unnecessary cost? Believe me when I say that if you do think that way, then your business will certainly will be on the rocky road to disaster. This will be my last column for IER and
you may now be thinking that I’m coming across as rather negative. Actually, the truth is completely the opposite! During my time as CEO of one of the best pro-active
trade associations around, I’ve been totally passionate and committed in defending the membership, whether it be within the halls of Government or in dialogue with manufacturers, broadcasters and regulators. Many of those might now be thinking “thank God he’s gone!” I think this great industry has a lot to look
forward to, particularly as the economic outlook is now looking better than it has for more than eight years. So finally, I would like to give thanks to the
team at Bedford for their continued support and to the retra membership. I would also like to congratulate Howard Saycell in his promotion to CEO, and Matt Sheldrake in taking over Howard’s role as deputy CEO - both very well deserved appointments. I look forward to seeing friends and colleagues alike at the conference, after which I will be heading off to do a bit of fishing.
March 2015
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