Today, many consumers are watching TV programmes on their computer screens, and accessing internet content on their televisions. The talk is of I-TV – television that offers internet access, interactivity or (BBC) iPlayer content in the living room.

Today’s home cook wants to produce something tasty and healthy for the family. With the recent surge in consumer awareness of both the produce itself and ways of preserving and cooking it, more and more customers are looking to buy appliances that will help them create low-fat meals quickly and efficiently.

A lot of education is still required to convince customers of the benefits of induction technology. Independent dealers are well positioned to embark on this educational task and capitalise on the fast growing and lucrative market. Anna Ryland reports.

Despite the economic crisis, the personal audio sector has continued to flourish, helped by innovations such as touch screens and the increasing popularity of social networking and music streaming services. Libby Plummer reports.

A distribution system managed from a single point – an integrated IT system – has a direct impact on the productivity, efficiency and profitability of your business, advises Andrew Maszyr, Development Director, Cromwell Business Systems.

Traditionally, washing machines and tumble dryers were seldom purchased for their state-of-the-art features and high spec programming. It was more a case of replacing a worn or broken down model in a hurry. But all this has changed in recent years, thanks to the wave of high-tech laundry features that have flooded the market.

The camera and camcorder market has seen mixed fortunes in recent times, although it has fared reasonably well during the recession thanks to a number of factors including the rise in social networking and video sharing. This report will look at the Digital Still Camera (DSC) sector, comprising fixed lens models (compact cameras) and changeable lens models (D-SLR and hybrid models).

Numbers speak for themselves. Over 1,600 retailers attended Sony’s Home 2010 roadshow which ran from 1 March until 15 April in eight locations throughout the country from Weybridge in Hampshire to Stirling, as well as Dublin. The roadshow focused on this year’s most exciting technologies for consumers and the great retail opportunities for the dealers:  Freeview HD, 3DTV and TV on demand in the shape of Bravia Internet Video.

Keeping up to speed within changes in employment law is a seemingly never ending challenge.  During the next 12 months we are likely to see new legislation providing enhanced rights for agency workers together with the much anticipated Equality Bill. In March, employers with more than 250 employees will have to get to grips with the employees having a statutory right to request time off to train.   

Consumers are increasingly becoming aware of the benefits of eco-efficient products. As well as messages about the environmental aspects of such technology, the exponential increase in green products has been largely fuelled by the recent economic downturn, as consumers try to save as much cash as possible.

The electrical independent Paul Taylor is well known in Spalding and the surrounding area. Every morning commuters to the town hear the company’s promise on local radio: ’If your appliance has broken down and you place an order with Paul Taylor for a new one before 10am it will be delivered and installed by the time you come back home in the evening’. With this approach he successfully wiped out most of the competition from Spalding. “When I took over Paul Taylor there were eleven electrical shops in Spalding, in one form or another, including department stores. Now there are only our shop and the Co-op,” says David.

For almost a decade, the market penetration of dishwashers in Britain remained under 30%. In other European countries, such as France, Austria and Switzerland, the levels of penetration of the appliance are over 65%. It is very significant therefore that this situation has suddenly begun to change.

Consumers looking for HDTV products are spoilt for choice these days, whether it’s an HD Ready set, an HD set-top box or a Blu-ray Disc recorder.

A wide choice

Matt Evans, JVC’s assistant product manager, says: “The market trends show 1080p adoption is growing, which led to us to increase the number of 1080p models in our range – screen sizes range from 19 to 47 in.”

Barry Jenkins has transformed his business several times over the last thirty years.  A passionate surfer, who used to take part in international competitions, he started out manufacturing fibreglass surf boards and exporting them to France. In winter when the demand was slack he produced swimming pool furniture for hotels. His next business venture was souvenir retailing at the time when Jersey was a bucket and spade holiday destination. He had five shops at one stage. When tourism in Jersey started to decline he developed the photographic side of the business. “I expanded the range of cameras and started bringing in more audio products – radios and recorders – and eventually we ceased all other businesses and concentrated on what we do now.” The company was renamed Fotosound to reflect it. It is now linked to two associated businesses: a photographic shop – Digital Photo Centre – and Telefitters, specialising in installations of televisions and audiovisual equipment.

There will always be two types of consumers. “Firstly, there are dedicated green consumers, environmentally conscious shoppers, who have proven that they will remain green during hard times – even if it means paying a little bit more. Then there is the average cash-strapped consumer for whom saving cash is king. For these individuals going green is a bonus, but saving money and lowering their household running costs will always be the deal-breaker,” explains Jonathan Casley, sales and marketing director, Glen Dimplex Home Appliances.

The digital switchover reached an important milestone at the end of 2009, when the North West region began the move from analogue to digital on 4 November, with the process due to be completed on 2 December. It’s important because, it’s the first major urban region to make the change, and includes cities such as Manchester and Liverpool. Around seven million viewers in this region are estimated to be affected by the switchover. On the face of it, the digital switchover is progressing well. According to Ofcom figures for the end of September 2009, the number of households with TV sets that could receive digital TV was 89.8%, with an average of 2.4 digital capable sets per household.

Accessories have long been hailed by manufacturers and switched-on retailers as the indispensable high-margin add-on for any consumer electronics sale. But on the other side of the till, media hype about “rip-off Britain” and negative publicity generated by events such as the Competition Commission report on extended warranties a few years ago have conspired to give consumers a jaundiced view of anything that smacks of an ‘add-on’. Is that ‘essential item’ the salesperson has just thrown into the mix really that crucial to the full enjoyment of their imminent purchase?

Consumers have quickly embraced solid state audio products, and the market has segmented into a number of product groups including, personal digital music players, hi-fi systems with iPod or MP3 compatibility, iPod docking systems and media players (sometimes called home or music servers). The result is that retailers can offer a range of solid state audio products that cater for a wide range of customer needs and expectations.

The garment care category still registers a healthy £94.3m for conventional steam irons and £32.1m for steam generators (year-on-year, to end August 09; Source: GfK), despite the stiff economic climate. Looking further at the figures, conventional steam irons take around 90% of all volume sales (4.7m units) but much less in value (around 75%), with steam generators at nearly a quarter of value sales. Correspondingly, steam generators are at around 7% of volume.

Today's home cook is many things. Inspired by adventurous ideas on cookery programmes and with interest in healthy eating at an all-time high, there has never been a better time to capitalise on the nation's love of entertaining at home.

The presence of coffee shops, such as Costa Coffee, Caffe Nero and Starbucks, on almost every high street has raised people's expectations of the quality and variety of coffee they drink. In fact, coffee has become a part of the modern lifestyle. Recreating ‘the café experience' at home is now not only an aspiration but it is considered a necessity by many consumers, especially during the recession. This is excellent news for electrical retailers.

A number of consumer electronics products and small appliances are predicted to become Christmas bestsellers regardless of the recessionary pressures on family budgets. In fact, the competitive situation in the market was responsible for a great spate of new product developments with which manufacturers are trying to tempt the retrenching consumer back into the marketplace.

Overall, the total UK cooking market (excluding microwaves, hobs and hoods) has declined by 9.6% in volume year on year to 527 thousand units for the first four months of the year, according to GfK figures for January to April 2009. However, range cookers have declined even more - by 27.3% to 35.6 thousand units for the same period. This is mainly due to the decline of the housing market and the current recession.

John Hutchison has been actively involved in championing the interests of the independent sector not only as retra president but also by frequent participation in various industry forums. Most recently he has proved that at present one of the key success - and survival - factors for the independent is staff training. At a time when many companies struggle to survive Hutchinsons Hi-Fi & Vision recorded a sales increase in excess of 17% for the six months between January and June 2009 compared with the same period last year.

The games market experienced a record year in 2008, although it took a turn for the worse in 2009, as hardware sales slowed down and software tie ratios (the number of titles bought per system in use) fell.  However, hardware price cuts in time for a holiday sales season were the welcome stimulus to the market.

Overall, the total UK cooking market (excluding microwaves, hobs and hoods) has declined by 9.6% in volume year on year to 527 thousand units for the first four months of the year, according to GfK figures for January to April 2009. However, range cookers have declined even more - by 27.3% to 35.6 thousand units for the same period. This is mainly due to the decline of the housing market and the current recession.

In May 2009, BBG Distribution merged with Peerless Industries, the US-based leading manufacturer of TV and audio mounts and installation accessories for residential and commercial markets. Peerless has over 50 years' experience serving a wide range of customers in such sectors as  healthcare, hospitality and transportation, and its products have an established reputation for quality, ease of installation and functionality.

In an electrical retail market that is down in volume and value in most sectors, both warranties and retail finance, are enjoying quite a renaissance. Warranty conversions are increasing as customers look to protect themselves from an uncertain future and retail finance is enjoying double-digit growth through many retailers. With a nervous banking industry refusing to lend money generally, 0% credit card offers disappearing daily and the cheapest unsecured personal loans some 8% above base rate - perhaps it is little wonder financial services are booming at point of sale.

This periodical survey, conducted by IER in association with leading floorcare brand BISSELL is based on survey questionnaire featured in the March 2009 issue of the magazine and online. Its aim was to obtain an in-depth insight into the lifestyle of electrical independents - their work environment and their professional and personal situation. We hope that you will be able to identify yourself with the picture we have created from the survey responses.

The economic slowdown is uppermost in all our minds, and across every sector. With portable heating products, pricing has always been a significant force and that doesn't really seem to have changed. In the past, it has gone hand-in-hand as a financial pressure with the unpredictability of the British weather.

With one in two households in Britain owning a pet and 20 million Brits suffering from allergies, these two groups constitute a very large market with specific needs. They have been well addressed by electrical products manufacturers in such sectors as floorcare, laundry and air treatment, and as both segments are going to grow in importance in the future, it is essential that retailers get to know these markets better if they wish to capitalise on the opportunities they present.

There's one thing you can say about the television market - it's never boring. These days, it's not enough to simply offer a flat panel product; consumers are looking for something extra, whether it's elegant design, green features, home networking or internet access.

The steam oven has long been a staple of the professional kitchen, where chefs have been utilising the benefits of retaining food's natural vitamins, minerals and nutrients for decades. Now consumers are wising up to its advantages too, as cookery programmes and food magazines continue to fly the flag for healthy eating. Built-in steam ovens and multifunction ovens with steam settings are the latest trends in appliance sales, along with Teppan Yaki grills, range cookers with griddle tops and wok hobs.

The Awards, which are in their 17th year, have the longest heritage of any awards in the electrical industry and the number of nominations they attract is greater every year.

The personal audio sector has evolved at great speed over the last few years, with MP3 players cementing their place as the standard player of choice, fuelled by the phenomenal success of Apple's iPod. As a result, sales of more traditional formats including cassette, CD and MiniDisc continue to fall. But as the MP3 player sector beings to become saturated, not to mention the inevitable affect of the current economic crisis, the market faces some tough times ahead.

The last twelve months have been difficult for the floorcare market. "Value fell by more than 8% in the twelve months to April to £477m, the lowest levels since 2005. Cylinders make up around 2/5ths of overall sales and have been one of the worst hit with a 9% drop in value. The decline can be traced to a number of factors, including a certain level of saturation following aggressive pricing tactics over the last year, consumers delaying the replacement of their primary and often higher priced cleaner and a slowdown in initial acquisitions fostered by the downturn in the housing market. Price and innovation are both key to sustaining value for the sector in the medium term and despite some price erosion at the premium end, this has at least enabled prices to avoid a major slump and prevent value falling further than volume," comments Anthony Williams, GfK senior account manager, Domestic Appliances.

Some ideas are ahead of their time. Eight years ago, Bush launched an internet TV, allowing viewers to access the web from the comfort of their couch. But the system was slow (most homes only had dial-up internet connections) and clunky. Fast forward eight years, and the situation has changed beyond recognition. Government statistics show that, in 2008, more than 65% of all homes in Great Britain had internet access, with more than half of all homes (56%) having broadband connections. What is more, broadband speeds are increasing all the time.

Amica, the largest manufacturer of domestic appliances in Poland, commanding a 12.6% market share (followed by Electrolux with a 11% market share) with subsidiaries in Germany, Russia, Romania, Czech Republic and Denmark, entered the UK market in 2006. 

The time when the majority of people lived in relatively large houses which could accommodate many appliances designed for a single purpose is becoming history. Homes, in general, are getting smaller and kitchen space is at premium. This is related to a number of socio-economic trends.

In general, the market for January to December 2008 was down when compared to the same period for 2007. Washing machines were down 2.6% in value and 3.7% in volume. Tumble dryers were down 1.8% in value and 4.0% in volume. This may have been in part due to the increase in price points, with the average washing machine retailing for £292.40 against £289.12 the previous year, an increase of 1.1%. Tumble dryers were up considerably more, £197.07 against £192.60 the previous year - an increase of 2.3% per unit (source: GfK).

Before, the current economic downturn, it was predicted that 2008 would be the year of the Digital-SLR camera and that the compact camera market would face its first real challenge after sales reached a peak in 2007. This has proved to be the case, says Cedrid Mertes, GfK account manager for photo/imaging panel, who comments: "Year-on year, the D-SLR segment has maintained the sales of the global camera market in the UK, while the compact market has reached maturity and so relies on replacement sales. Especially in a crisis period, product categories relying on replacement sales have more difficulties".

Following the huge success of the 2008 Independent Marketing Awards, the eagerly awaited 2009 Awards are once again being staged in association with IER Magazine.

The awards programme has been designed to bring together the entire independent electrical industry in a celebration of the companies, innovations and people that are achieving the highest professional standards and helping to drive this dynamic industry forward.