In a frank and exclusive interview with channelnews, the Product Marketing Manager of Miele, Rudi Niemoeller says that despite the economic doom and gloom, things are actually looking up for the German appliance giant in Australia.
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And in spite of what we are told about the slowing economy, Niemoeller says that the level and buying power of Miele’s customers makes the company buffered from economic fluctuations.
“Traditionally, customers in Miele’s target market have been relatively immune from economic fluctuations and the current phase of the economic cycle is no exception for Miele”, says Niemoeller, adding that, “Whilst demand for the construction of new homes has experienced somewhat of a downturn, an increasing number of customers are upgrading their homes with the latest domestic technology”.
Furthermore he notes that when times get tough, consumers tend to stick with brands they trust.
“In toughening overall economic conditions, people tend to head towards the known and trusted brands that have a proven track record. The most successful brands will be those which can offer not only consistently superior product quality, but also a reliable and professionally managed infrastructure in the areas of after-sales service, logistics and general customer support”, he says.
And as for what is ‘hot’ in the appliance sector nowadays, he notes that “an increasing number of customers avail themselves of the benefits of commercial cooking technology in their domestic kitchen.
“Steam cookers and induction cooktops are two good examples for categories, which currently experience very strong growth on the local market”.
Asked as to what is more effective – a distributor strategy or are direct sales, he says that it is the market that decides this strategy.
“Miele have recognised many years ago that, ultimately, it is the end consumer who determines as to which particular product best suits their individual needs”.
Niemoeller also points out that some 15 years ago, “Miele pioneered its Chartered Agency System in Australia, where the purchase transaction is essentially directly between Miele and the end consumer. This system has enabled Miele to get a lot closer to the ultimate users of our products, facilitating valuable feedback from customers, which was instrumental in further fine-tuning some product features and specifications to maximise customer satisfaction under local conditions. In a maturing market where customers can readily keep in touch with the latest developments from around the world, any local distribution strategy which loses focus of the ultimate customer needs and wants is doomed to fail”.
Moreover he says that, it is having their own shops which works much better for Miele’ segment of the market.
“It is also unrealistic to expect a distributor to make the long term infrastructure investments necessary to deliver an uncompromising brand experience to the end consumer. For this reason, Miele has recently opened their own branches in Western Australia and New Zealand, two regions where previously the brand was marketed through distributors”.
As for the challenges in the next 12-18 months in the appliance sector, Niemoeller admits that Australians are virtually spoilt for choice.
“The plethora of brand names represented on the Australian market continues to represent a somewhat confusing choice for retailers and consumers alike”.
