This would be excellent news for anyone concerned if not for the fact that this growth occurs on the back of price erosion. The downward trend in prices has always been a part of the electrical industry, but the speed with which it occurs is not, and it would be foolish to describe it as a healthy competitive phenomenon. The contributory factors are well known: cheap (still!) labour costs in the Far East, competition on price by multiples and supermarkets which embarked on a nonfood retail path and sheer stupidity of some Internet traders who drive themselves faster than others out of business.

Magnus Yngen, a European head of Electrolux, told me a couple weeks ago that the prices of domestic appliances will have to go up not only because of the increasing costs of raw materials but also to put a stop to commoditisation of even the best products. I think that if most manufacturers adopted this stance, you would welcome such a move. You know well that it isn't the customer who demands constantly cheaper prices (in fact, they are prepared to pay premium to get top quality appliances) but it is the greed of some corporate giants which robs products of their value. With this in mind, please turn to page 5 to see one reader’s opinion.

Anna Ryland, Editor

aryland@datateam.co.uk