Retail Observer

August 2017

The Retail Observer is an industry leading magazine for INDEPENDENT RETAILERS in Major Appliances, Consumer Electronics and Home Furnishings

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RETAILOBSERVER.COM AUGUST 2017 48 I ssue after issue of just about every major trade publication and all industry shows are focused on home connectivity, but are you prepared to sell it? Let's dive in on this innovation specifically in the major appliances category. INNOVATION IS KEY TO CONSUMERS TODAY Today, we are more and more connected because of smartphones and we've recently seen an explosion in the growth of devices like Google Home and Amazon Alexa. Not only do we want information at the touch of a fingertip, we want the flexibility to trigger actions based on voice command. It's just so simple – even my two-year-old grandson has mastered how to boss Siri around. The appliance industry recognized the appeal of home connectivity several years ago and has been spending R&D time to bring these types of innovation to improve the appliances that make up a home. GE continues to lead the way and offers connected refrigeration, ranges, wall ovens, dishwashers, washing machines and dryers, and room air. The biggest question is this – how will the innovation make the user's life better? Is it worth it? Some of the current benefits are centered around real-time communication, like being notified when a load of clothes is done, or seeing what's in my fridge while I'm at the grocery store. But some of the more impactful benefits provide homeowners with a peace of mind like checking that you turned off that oven after you've left the house, or if your dishwasher is leaking. These connected appliances can even help with service issues, alerting you on your phone with maintenance reminders and diagnosing errors. All of these benefits prompt many to upgrade their appliances despite having appliances still in working order. So how can you win with these customers? INDEPENDENT RETAILERS' PLAYBOOK FOR SELLING INNOVATION Smart technology needs to be sold by an experienced and knowledgeable sales staff, and that's where the independent channel succeeds. Plus, you have more control over how you showcase the products in advertising and in-store. Consider these three points for selling the connected home: 1. Display it The best way to sell an item is to display it. Customers who come into your brick-and-mortar store want to see and touch the product before they buy. Create a unique, attractive environment where these connected devices live, and make it feel like home. Really play up your in-store display and signage. 2. Advertise it Tell your customers about the innovation in your advertising efforts. Use words like "connected" or "smart" as key catch phrases to capture attention. With digital advertising, maybe test pre-roll video ads to help you reach key customer demographics while showcasing the features of these products visually. 3. Demo it Your sales team serves a vital role in the education phase with customers. Train your sales staff on what the innovation does, download the applicable apps and demo the features to customers. By doing this, you remove the fear factor and you've helped justify the price point of the item, especially in draw-step-sell scenarios. It's exciting to see all the new innovations coming out that benefit customers. And we should expect that this technology will continue to improve and expand. HOME CONNECTIVITY IS HERE. ARE YOU PREPARED TO SELL IT? MIssy Hodges Appliance Trends Missy Hodges, Vice President of Appliances MEGA Group USA RO

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