In our Influencers series run in conjunction with Appliance Retailer magazine, Current.com.au speaks to the industry leaders, big brands and well-known identities that have helped shape the electrical retail industry in 2013.
Mark Pacey is the general manager, sales, at Fisher & Paykel. He tells us that F&P's average sales price is increasing even though competitive forces are driving down prices.
How has the first half of 2013 been for your business?
With the introduction and take up of new products late last year (including new additions to our cooking, refrigeration and laundry range), we have been able to generate a higher average sell price across the majority of categories — this has assisted in generating a greater level of revenue for Fisher & Paykel.
It is definitely a competitive environment with buyer bargaining power buoyed by competitive supplier activity seemingly focused on driving the market down. If you have a great brand with great products, service and people all aiming to find ways of generating additional value for your customer partners then you’ll be well placed; and that’s exactly how we’ve started 2013.
What are your predictions for the second half of the year?
This is the crystal ball question — I predict the second half will be defined by continued low interest rate movement and potential recovery in the detached housing market. If these trends continue then it leans towards being a cautiously optimistic back half of the year.
That said, consumer confidence will be guided by important factors such as the upcoming election, the outlook for business investment and the path of the Australian dollar.
What threats are currently present in the industry?
You cannot be too complacent on resting on the past. Australian retailers need to engage consumers’ attention with new concepts across an increasingly borderless and competitive home appliance marketplace. Having said that, so do suppliers, as the threat of becoming irrelevant to retailers and therefore consumers is real.
How many are seeing price as a way to engage on both sides of the industry fence? It has to be more than that. Why do people want to buy a product or a brand? To understand and answer that question (by action around the brand) will allow us (and other suppliers and retailers) to stay one step ahead of the threats that are ever-present.
What is your favourite product of 2013 so far?
Our 10kg WashSmart and CleanSmart top loading washing machines are providing both functional and aesthetic benefits to consumers, while at the same time giving an opportunity to promote and drive up-sell options in a stylish product within a growth category to retailers. The traction the two washers have gained in 2013 has been pleasing, to say the least.