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The likely boom in construction of new houses, provides substantial sales opportunities in two product areas – dishwashers and waste disposal units – explains Douglas Herbison, Amdea's chief executive.
Despite complaints about the lack of affordable housing in many areas, Britain continues to be in something of a housing boom. The Government has publicly endorsed the need for a substantial increase in the existing housing stock; it is expected that between now and 2015, over 200,000 new houses and flats will be built.
More households should mean greater demand for domestic appliances, though how many of the new appliances required will be sourced through retailers and how many through the house developers is difficult to say. It is an opportunity to be taken up where possible. And as I have stated in previous editions of IER, we need to try to augment 'natural growth' with our Time to Go campaign aimed at encouraging the early replacement of domestic appliances for reasons of energy efficiency and in order to reduce household energy costs.
We seem to focus on what we might call the 'mainstream' domestic appliances – washing machines, fridges and freezers, kettles, vacuum cleaners and suchlike. There are, however, other domestic products which market penetration is much lower, and which present much greater future sales opportunities.
Selling dishwasher benefits
These are products which can offer improvements to consumers' lifestyle and at the same time deliver environmental benefits. One of them is the dishwasher. Not exactly a new product but one which so far is found in less than 30% of UK homes, compared to 50% of European and American homes. Even if one dishwasher was installed in each of the new homes, due to be built during the next eight years, the dishwasher penetration would rise to around 40% only.
We need to actively promote the proven environmental and cost-saving benefits of this product to the consumer. Through CECED, AMDEA's European Trade Association, we have accumulated laboratory data comparing water, energy and detergent use of dishwashers against washing by hand, and the dishwashers come out on top. So let's get out and sell these products as something which will do away with those unwanted after-dinner chores as well as helping the environment.
Opportunities not to be wasted
Another undersold product is the waste disposal unit. Relatively simple to install, they fit into the drain line under the sink and grind food waste into small particles that are flushed into the wastewater system with cold water.
Food waste is calculated to amount to around 20% of household waste. At a time when householders are under ever-increasing pressure to minimise and separate their waste and often have to wait up to 14 days for the dustman, a waste disposal unit is an absolute boon. No more smelly overflowing bins in the kitchen and plastic bags ripped apart by birds and animals in the back yard.
Moreover, many local authorities have woken up to the fact that waste disposal units can play an important part in helping them meet their required limits on waste going into landfill. And not only do they save handling and landfill costs, but waste disposal units actually increase the quality of sewage and allow it to be returned to the land. Throughout Europe and now increasingly in the UK, local authorities are offering incentives to householders who buy a waste disposal unit.
The household penetration of the waste disposal unit market in the UK market is only around 5%, compared to 50% in the US. This is a product which is still relatively unknown to the British public, and as such presents an unprecedented sales opportunity.
With the right sales and marketing approach, dishwashers and waste disposal units should be presented as very desirable commodities – an essential part of the modern home and kitchen. Good for lifestyle and good for the environment!









