Round-up | NEWS


Retailers warned of price rises as shipping costs soar


RETAILERS HAVE been told to brace themselves for possible price increases across imported KBB products as suppliers are hit with soaring freight costs amid a global shipping crisis that may last months.


The BMA raised the alarm on the developing shipping container crisis back in December when it revealed global shutdowns, followed by a sudden spike in demand, were causing


congestion at ports and


disruption to the supply chain. According to many suppliers kbbreview spoke to, the ongoing situation has led to “whopping price hikes” in shipping container costs,


HPP adapts post-Covid


HILLS PANEL Products (HPP), which celebrates its 30th anniversary this year, says it has responded quickly over the past 12 months to the challenges and opportunities presented by the Covid pandemic. Most recently HPP has launched the Inspiration Centre with Egger that hosts a range of information for installers with tools like virtual samples in 2D and 3D visuals, worktops finder, visualiser and combination guides. HPP is an Egger Diamond Distributor. HPP MD Keith Wardrope said: “We have adapted to changes resulting from the diverse impact of the pandemic and tried to respond positively to meet new challenges and opportunities we all face.


“Our partnership with Egger is


entering an exciting new chapter in our 30th anniversary year. Our new online Inspiration Centre follows earlier investment in extra warehousing for a range of products. “Sustainability, recycling and other responsible business practices are increasingly important to business and consumers’ purchasing decisions. KBB businesses that are aware of sustainability features and measures can


connect with public opinion,


especially among younger customers, and distinguish themselves from competitors. Businesses can also improve their own bottom lines through energy and raw material efficiencies, recycling and other sustainability improvements.” After the pandemic first


hit, HPP


temporarily closed its Oldham and Sheffield operations. The reopening of facilities began in May 2020 with new health and safety measures.


which suppliers suggest will be


impossible to bear in the short-term, leading to price increases on goods. Speaking to kbbreview Mike Tattam, sales and marketing director at shower enclosure brand Lakes said: “The massive hike in container costs makes surcharges and price rises unavoidable for suppliers and retailers should expect to see these passed on to any product coming into the UK via the main ports. Surcharges, of course, are temporary and will be removed when shipping problems unwind, but price rises are permanent.” BMA chief executive Tom Reynolds


added: “Poor availability of containers and fierce competition between


European and the more lucrative Pacific trade routes has multiplied the cost of shipping, in some cases tenfold. While manufacturers will attempt to minimise the impacts on retailers and customers as far as possible, it is an extraordinary additional cost that will be impossible to bear beyond the very short term.” The obvious challenge to retailers is on


passing these increases to


consumers, many of whom are already uneducated when it comes to the cost of KBB products and who are also likely to be under pressure financially


due to the pandemic.


Amdea chief executive Paul Hide said: “I’m not hearing any manu- facturers in Europe tell me that their manufacturing has been disrupted by running out of components. There are supply shortages, but that is not the issue with large appliances – it is due to record demand.


“Prices will settle, but the question is how soon and how quickly? We won’t see a price crash, as the market is controlled


by five major shipping


players, and there is no end to this high demand.”


IFA trade fair bounces back with live event in September


THE IFA consumer electronics trade fair will return to Berlin this year as a live, in-person event on September 3-7.


The organiser Messe Berlin has reported strong industry support for the event, which is to be held at the Exhibition Grounds Berlin ExpoCenter City in Berlin.


The last event was held as a purely digital show, but even though the September event will take place in person, for those who cannot attend, the IFA Xtended Space digital experience will also take place in parallel. This will offer streamed content, including product presentations and interactive exhibitor rooms.


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Anzeige_1/4_kbbreview.indd 1 March 2021 · 04.02.21 08:59 5


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