By Anhar Khanbhai
2011 has been a tough year with retailers feeling the brunt of a downturn in consumer sentiment and a trend of austerity.
The impact on retailers generally has been slow foot traffic and additional mark-downs in order to get people through the door.
With online trading playing a major role in the way Australians shop for products, for traditional retailers of floor care including electrical superstores, independent electrical retailers and department stores, the situation is even tougher.
However the floorcare market has stood its ground according to the July 2011 GfK statistics where the overall market is up by 6.4%.
In recent findings by the GfK group on floorcare, the hand-stick vacuum cleaner category showed a 61% increase in total units sold in 2011, growing in value by 69.7%.
Appliances become icons in the home
As living spaces get smaller the aesthetics of household appliances are becoming more important. Often there is not enough storage space to tuck away the vacuum cleaner and so the household’s vacuum choice is becoming somewhat of a status symbol, reflected through an increased focus on superior design.
All over Australia, the sentiment is echoed by most retailers who say the bagless and hand-stick vacuum cleaners are the most popular.
“The trend in the floorcare space is moving towards options that suit smaller living spaces and increase convenience for both singles and families,” Bosch and Siemens Home Appliances, product manager, Elisha Crewe said.
“Our plan is to develop the range further this September in time for the Christmas period with the inclusion of bagless vacuums and handsticks.”
Dyson has also enjoyed strong growth in the market despite the economic downturn as more people have realized that a good vacuum cleaner is necessity in the household rather than a luxury.
Dyson released the DC35 Digital Slim hand stick model in November 2010 and a new variant in July 2011. According to GfK July 2011 data Dyson hand sticks hold 37.9% value share (with only two models) making it a highly successful product.
Consumers own multiple vacuums
“In terms of vacuum cleaner ownership in Australia, we’re seeing multiple ownership driving sales. That is people who already own a full sized vacuum cleaner are now also purchasing a smaller, portable unit such as a handheld or hand stick cleaner for everyday cleans,” according to Dyson's Erica Galea.
Camberwell Electrics owner Hans Vanderstadt in Melbourne said Miele, Dyson and Nilfisk were the three most popular brands in store because they were each unique and had a demonstrable difference to other brands.
“Overall, the key drivers that set Nilfisk vacuums apart from the competition are our long five year warranty period combined with high performance, features and quality at competitive prices,” Nilfisk national sales and marketing manager, Anita Gounder added.
In line with Father’s day and the upcoming Christmas season, the push to sell hand held and hand-stick vacuums is in the forefront.
Dyson has a current Father’s Day promotion running on Hand Held and Hand Stick products. These promotions offer consumers a Gift with Purchase offer.
The target markets for the Bosch Hand-Stick are bachelors as their primary floorcare appliance and families as a secondary floorcare appliance.
Robotic vacuums not a threat yet
While the rise of robotics seems imminent, most major retailers still believe it will take time for consumers to adopt to this new technology.
“I am not concerned about the impact they might have on the consumer category, particularly as traditional floorcare products are a more affordable option,” Kambrook marketing manager Adam Tacey said.
Crewe explained the robotic vacuum is more of an add-on vacuum rather than a replacement vacuum solution.
“Many households own more than one vacuum to bring convenience to the household, in particular their main vacuum supported with a handstick for a quick vacuum, steam mop or alternatively a mini vacuum for cleaning the garage or the upstairs area,” she said.
“The Robotic vacuum is another option to consider into the mix to maintain house cleaning as its main purpose, in my opinion it will not replace the main canister or upright vacuum for sometime.”
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