retra conference 2016
‘IoT is upon us, whether we like it or not’
Themed around ‘The Smart Connection’, retra’s annual industry conference brought together trade figures to discuss making the most of the opportunity
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onference chairman Declan Curry welcomed an optimistic group to the annual retra conference 2016.
He cited a growing demand for home technology, and a poll in the room saw 88% of those present saying they believed that the connected home presents a good opportunity for independents. However, with only 51% confident in selling or servicing connected home products currently, Declan asked what changes need to be made to retailers’ businesses to take advantage of that opportunity. Recently appointed Glen Dimplex Home Appliances chief executive, and former Samsung UK president, Andy Griffiths reflected on the changes smart home presents for the industry. He reflected on the role of the smartphone in creating an ‘always on’ culture, and where the industry looks set to move next. For the remainder of the decade, market saturation will be the reality, but that remains a large pool of demand ready for upgrade, he said. While there is commoditisation and loss of value, the scale still provides potential. Andy also noted the potential for a ‘shopped
out’ consumer, that doesn’t need more ‘things’, and how the next generation values their time and experiences more than physical possession. To that end, a retailer’s store and website must be a great experience. “Connected home is a game changer, period,”
he said. “It will be so far reaching; we will look back in 10 years and be amazed at how we used to do things. It is a big project, and there is lots to do, but this presents the best opportunity for profitable channel engagement in 20 years.” He added: “This is nothing to be afraid of.
It is an opportunity to redefine the customer offering, to look at pre-sale, the buying experience and point of purchase, post-sale service and continuously connect with your customers. Work with great brands to bring experiential retail to life.” He also highlighted the value of service
selling, from installations to ongoing support. “60% of the value could be realised outside of the box you sell,” he said. “For today, focus on servicing consumers with high quality products, services and experiences. As an industry, we’re generally good at change. There is always innovation and products coming
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into the market. When we’re at our best, we’re connected to the customer. There are customers out there who are desperate for help to get the most out of this technology.”
Smart home is ‘the’ opportunity Hughes Smart Home manager Ashley Shorey Mills and AWE Europe managing director Stuart Tickle took to the stage to relay that they believe smart home is ‘the’ opportunity in the industry. Ashley has headed up the Smart Home division of Hughes for the past three years, with the intention of creating an environment where the retailer can go to consumers, rather than wait for them to come to Hughes. That includes holding its own events, such as the Hughes HomeTech show on October 23 to 25 later this month. AWE has focused on custom install trade
distribution and training for the last 15 years, Stuart explained, and continues to invest for the future with its facility near Epsom. “Smart home is different to someone walking
into store and buying a box; really you’re selling a lifestyle,” he said. “We’ve created this facility, but we want the industry to use it, and other industries to come together and create opportunity. Training is an important part of that.” Ashley noted that Hughes initially
developed the Smart Home arm to differentiate itself in a market which typically erodes value-added propositions. “You have to look at new channels,” he said.
“Don’t just try and maintain the norm at the expense of profit. Focus on how you increase customer spend, include complementary products, charge for that higher level of service – think, ‘What can’t the internet do?’ “We have increased our TV average price
through Smart Home, and generally see stronger margins through the category.” The pair also advised independent
retailers to concentrate on their advantages compared to competitors – they are known and trusted, with existing customer bases, have the product range and knowledge and opportunity to create theatre. Ashley cited a recent Barclays Digital report
that found that of consumers interested in smart home technology, 66% would shy away from a ‘do it yourself’ approach, and would want someone to do it for them.
Retra chief executive Howard Saycell highlighted some of the changes at the association over the past 18 months, and future plans
“We still have a few years before this takes
over,” Ashley said. “But there are small steps you can do with your existing customers. Tell them what you do. Set yourselves apart, give manufacturers a reason to come to you and say, ‘You’re doing something different, we want to incentivise you to expand this.’ There are lots of consumers who are money rich and time poor, and value the services you can provide.” Hughes has just built its first show apartment
to demonstrate to potential customers what can be done with smart home technology. “Awareness has grown; we’ve seen 30% year
on year growth and now have seven full time sales staff and 12 installers in Smart Home,” Ashley said. “It has been a slow process to engage with consumers, but we’ve been proactive. “The customer gets the right solution and
the retailer gets sales with margin that works for them. You can do this now. At the same time, look at the bigger picture. Promote yourself in this field. If you think smart home is an opportunity, make sure to act on it. “Eventually your customers will want smart
products – you need to be there with the knowledge and product when they do. You have to be relevant to your customers.” Retra chief executive Howard Saycell reflected on a busy 18 months for the association. That includes a new retailer and consumer facing retra website, changes to the consumer finance offering, with new rates from V12 and Hitachi Finance currently being introduced. There is also a new employment contract and employee handbook, updated Retraservice code of practice, and Howard celebrated the success of the IER Award-winning retra training which was taken online and has since trained more retailers than would have been possible going around the country. He also highlighted the role retra plays,
united with techUK and AMDEA, to shout on behalf of the trade and to remind bodies such as the British Retail Consortium to consider the impact on small businesses in all that they do.
October 2016
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