the BIG interview
retailers to ask why - what do they want it for? How often are they going to use it? What style of cooking are they interested in? By asking a few questions, it becomes easy to explain the benefits of our appliances.” Magimix gets significant customer feedback lauding the work of its in-store demonstrators, Steve adds, and benefits from those consumers becoming enthusiasts for the brand themselves. “We get a lot of thank you letters and messages,” he says. “We’re not talking about consumers in Magimix, we’re talking about fans, and those fans talk to other people. If you get someone onto the subject of Magimix, they are evangelical about it.”
The bigger picture “The market is very interesting at the moment,” says Steve. “There is lots of change afoot.” That does not need to be seen as a negative,
he adds. “There are challenges, but there are always lots of opportunities for quality products, and good brands, to work with retailers,” he says. “It’s a joint effort. These opportunities are there when you provide joined up solutions for consumers, whether that is demonstrations in- store or better communication. “UK consumer confidence is taking a bit of a bashing, and the political landscape is an unknown quantity, and that does affect people’s confidence to purchase, but it also makes people more wary and considered about what they purchase. If we can inform the consumer better, they will naturally say, ‘OK, it’s a bit more than I was intending to spend, but I’m not going to have to buy it again six months later’. “I don’t think anyone really likes the
throwaway culture, but we’ve become addicted to it. Retailers need to encourage consumers to buy the right product, based on what they really need - as retailers or manufacturers you shouldn’t be trying to bamboozle consumers into buying what’s not right for them.” The small domestic appliance market is
an increasingly noisy space, which is not beneficial to the overall picture, Steve believes. “In the small kitchen appliance market
there are 22% more ‘things’ being sold than three years ago,” he says. “On top of that, there are 18% more brands competing in this space than two years ago. However, what happened in this market last year? It went into decline, for the first time in eight years. It’s an interesting dichotomy, that there are more brands, more products, and yet the market is going backwards. “A lot of retailers are addicted to price
erosion. The UK retail environment is under a lot of pressure and prices are constantly being diluted. So many retailers are playing in so many different spaces, and specialists are having a tough time because they’re trying to
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keep up with the generalists. At the same time, specialists are where consumers get the best advice and service. It’s difficult.”
The more you change
direction, the more consumers don’t know what you stand for
Magimix attempts to avoid being drawn
into value erosion by having distinct distribution, where not all products are offered to all players, Steve adds. “We try and provide the right offering to
the right channels,” he explains. “It is about increasing the value of the proposition; adding value, trading up and offering the right thing for the consumer. There is so much noise in the marketplace that our message is harder and harder to get across. Our fans are really good at sharing their experiences, and that helps deliver sustainable growth. Ultimately, sustainable growth is only achievable if people like what you’re doing.” If retailers can draw themselves away from a
cycle of value erosion, they can focus on other benefits that they offer their customers. Steve comments: “I’ve spoken to a number of smaller retailers that specialise, offering value to the consumer through good, curated product choice and having an experience that convinces the consumer they are getting the right product for their needs. Trying to keep up with the online market, the only way you do it is by reducing the price, which is unsustainable and is a very limiting mentality too. There’s a lot to be said for great service, education, talking to the consumer and providing them with the right proposition.” The in-store experience is increasingly
important for communicating those messages. “I was in a large retail store over lunch and I hated the shopping experience,” Steve says. “The guys that are making the right noises in this market are the ones that are creating a better shopping environment. Your environment needs to resonate with your customers.” Independents have more flexibility to change and be creative than larger multiples too. “I’ve been into amazing shops, like the cookshop Ruby & Scarlet in Felixstowe, where I just wanted to walk around the store,” Steve says. “You can create a lot of theatre, and theatre is something that, if it changes on a regular basis, invites consumers to come back in. They might not come in wanting something specific, but by browsing an interesting environment and experiencing a product, they walk away with something. “That environment is a very unique
proposition that each independent can take
advantage of - change it regularly and spice it up.” Shifting away from the price conversation might be hard, but it would be worthwhile, Steve believes. “You’ve got to unlock value, not just have the cheapest prices,” he explains. “Everyone will be better off; consumers will be more satisfied and more pounds will be going through the till.” For anyone in the market, knowing
your customer is essential, Steve believes. “Consumers are looking to solve their problems, so what are the problems you’re trying to solve and who are those people who have those problems?” he asks. “Identify what is special about you. Magimix has been lucky – we’ve had our unique selling point since 1971, with the quality of our product and excellent customer service. We provide the consumer with the best solution that fits their needs. It’s a tough market, but ultimately good products that solve problems will win in the long run.”
Magimix launched a takeaway cup attachment for its Le Blender in November 2016, adding an attachment sale for its existing product
April 2017
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