Retail Observer

RETAILOBSERVER.COM JUNE 2015 62 I f aliens touched down on earth today and analyzed the U.S. appliance business based on manufacturer generated promo- tional dates, they would surmise that the only time consumers buy appliances is July 4th and the month of November. Who could blame them? These heavy promotional activities would lead any highly functional creature to conclude this is the lone time to shop. Heck, why even advertise anything the rest of the year? Fortunately, this is not the case. As retailers, we have to plan our business not only on these holidays, but we need to generate foot traffic year round to offset the margin crunch associated with these holidays. As we build this plan, we must be diligent with our inventory and plan to sell, to ensure we are maximizing our margin opportunity. You see, what the aliens don't know is that appliances fail everyday in consumers' homes. When a major appliance fails, the whole earthling family unit is thrown into chaos. In fact, in a recent report from Traqline based on 12 months of data from 2014, 59 percent of consumers are in the market for an appliance because their current appliance broke. When this happens, the situation needs to be rectified in a timely manner and cannot wait until the next holiday. As an industry, we are just entering a replacement cycle for the largest shipment years in the history of appliances. Between 2005 and 2006, there were close to 100 million appliances sold in the U.S. If an average appliance lasts 10 years, this would put us on track to see a significant increase in the amount of consumers that are purchasing under duress. So, the challenge is to be in the top of a consumer's mind when this situation arises. We need to deliver a message of salvation to consumers that communicate our value. The most important message is that we represent a solution for their problem. That we are affordable, have breadth of assortment and have products in all categories to satisfy their needs. Traqline report also revealed that 50 percent of consumers physically shop at only one store. Sure, they will do their research online through website searches, social media and online circulars, but when it comes down to entering the actual market- place, 50 percent visit just one location. That is one big chunk of the available consumers in the market that we can't afford to miss. This message needs to be delivered everyday across multiple platforms. Although circulars are still a drawing card, less than 38 percent of American homes still take delivery of the newspaper. Consumers are using television, the Internet and social media as their main means of gathering information. We need to make sure that our stores are represented in these media outlets. Affordable cable advertising with a consistent cadence will deliver additional mind share for your store, but the fastest growing category for paid media is social. It is imperative that we reach consumers more and more through paid social media. Although this may seem like a huge abyss to those of us that have been in the business for more that 20 years, it needs to be a priority for independent retailers across America. The content needs to deliver a message that can be thematic in nature, but should also deliver a "call to action" for the customer. We need to create the awareness for our stores, that we have value and selection for the consumer. We need to think outside of the product categories that manufacturers have driven us to believe are the only promotable models. (French door refrigeration and laundry.) Consumers are coming into the marketplace in droves and they will be looking to replace products from all categories. They will be coming 365 days a year, not just on holidays. Our promotional activity needs to incorporate everyday products like built-in appliances, freezers and ranges. Our message needs to be concise and consistent. Don't be like the aliens. Know your markets' needs and the pending opportunity for your business. Convey to your market a promotional cadence that will deliver consumers and profit for years to come. Patrick Maloney Appliance Trends PREPARING FOR SHARE IN THE WORLD OF APPLIANCES Patrick Maloney Senior VP Appliances Nationwide Marketing Group RO

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