SH: So, does that justify why BSH sells direct-to-consumers, while at the same time having a strong independent dealer network? It’s a balancing act, isn’t it? You need to be where the consumer is, but retailers get upset when brands sell direct… GS: Exactly – our intention is not to be a retailer, but our entire go- to-market approach is to be where the consumers are. I went to an AMDEA meeting where I saw a recent YouGov
study, which asked more than 10,000 consumers spread across the UK about where they purchase their white goods from. Obviously, the majority of MDA purchases are bought offline
still, but a good nine to 10 percent [of consumers] are buying them directly from the manufacturers. We need to be present there, otherwise we’d miss that part of the market completely. We aren’t the first ones opening up this route to market – I think we’re probably one of the last. More importantly, we’re not doing anything disruptive when
we’re directly accessing the consumer who is out there looking for an exclusive environment. From a pricing or stock perspective, we’re treating our direct- to-consumer channel the same as any other retail channel we have. There is no favourable treatment.
SH: At this year’s Retra Conference, it was clear that more consumers are placing importance on sustainability and energy efficiency when they are buying home appliances… GS: That message is cutting through because of what we’re doing as an industry, although we would hope to see more of it. At a recent AMDEA meeting, we discussed how we could
amplify that message even more – all the manufacturers will have their own individual messages, but it helps us an industry if we all amplify it. One of the things I’ve noticed in the UK market is the awareness
of sustainability – even in the last three years I’ve been here it’s gone up. More and more people are aware of energy efficiency and sustainability topics, and there is also a strong sense of brand loyalty in the UK – once they like a certain brand, they stick with it.
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We have been very transparent and will continue to do the same by proactively providing information to our retailers
Siemens WG56B2A1GB washing machine
SH: It’s about being transparent, isn’t it? GS: Absolutely. We have been very transparent and will continue to do the same by proactively providing information to our retailers. There is a small percentage of consumers who want to buy
direct from a manufacturer or in an exclusive environment. Having direct access also gives us more information and understanding.
SH: Data is key – it’s about getting that information on consumers… GS: Absolutely, and that helps us to design our proposition much better. It not only helps our direct-to-consumer channel but also how we go-to-market overall – how we do business with our independents and key accounts. Everything improves because we get more insight.
SH: Where do you see the opportunities for BSH to grow its business? GS: We are looking at the replacement side – largely freestanding appliances. We have opportunities in cooling, where we have a strong ambition to further grow our market share and become the largest manufacturer in that segment. We do see opportunities in the built-in side as well – we are very
strong in cooking, but we believe there are opportunities in surface and ventilation, which we want to explore further. In the replacement market and the kitchen planning market, we have scope to improve – not just in terms of our share. We’re also looking at how we become a more attractive and trustworthy brand for consumers, and from our trade customers’ perspective, we want to be even more attractive and easy to do business with.
SH: So, independent retailers are still a key part of your strategy? GS: Absolutely they are. We continue to provide support in terms of training, promotions, relationships and service – all of that won’t slow down. In fact, it will strengthen and that is something that is absolutely at the core of our go-to-market approach.
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Bosh Unlimited 7 cordless vacuum cleaner 32 Editor’s Interview: BSH
Editor’s Interview
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