gekkofm

Following a two year hiatus, IFA is back and re-energising the tech world’s attention. From smartphones and smart homes to TV, audio and domestic appliances, the show was packed with the newest and exciting products from some of our favourite brands including LG, Samsung, Toshiba, Miele and countless more.

IFA is one of the globe’s largest technology events, with a confirmed 1,100 exhibitors and 161,000 visitors this year. The show attracted a strong media presence; more than 2,500 journalists came to Berlin and around half of them were representing international media organisations. So far, media monitoring has identified coverage of IFA 2022 by publications and broadcasters in over 100 countries around the world.

This makes IFA a vital industry showcase for trade and consumers to see leading brands present their latest products and innovation to not only the press but also to retail buyers as well as the general public. Plus it provides observers on a world stage, through social media and chat, a window to the latest technology trends, discovering where brands are developing their product portfolios. Furthermore, it’s a barometer for retailers to see what’s coming, helping them prepare for range planning and the knowledge share required to sell these new products effectively in the coming seasons.

Having not had a full event since 2019, during this period it seems that many brands have been taking influence from how we now live our post pandemic lives. Therefore, following lockdowns and the ghosts of COVID, they are recognizing that we value our homes more than ever as places to thrive and grow, not merely live. Consideration is also being given to our lifestyle choices and the generational importance in sustainability as a concern in the technology we use day to day to enhance our lifestyles. This is being recognised more I suspect, to generational demands and less because brands wanted to. Nonetheless, it’s a positive step forward and one the technology industry can lead in and set examples for others.

Therefore the overriding message, which every brand was shouting about loudly, was sustainability both in terms of materials and product usage. I noted that less was being said about the ethics of manufacturing and how products are made. Perhaps this is a step too far to address across all category lifecycles. But even so, sustainability and design had become significant buzz words at IFA 2022.

The sustainability message carried into some of the stand designs, with Panasonic and the hall they occupied being very low cost, with a focus on reduced waste. This meant no floor covering and attention was focussed on the products rather than their IFA setting. Also of note, was the fact that some brands didn’t bother attending this year. Sony being one such brand whose only presence was a meeting booth.

Changing Consumer Styles

As indicated, brands have also been busy in their understanding that our homes have become increasingly more important as a style statement that reflects our changing lifestyles. This meant a host of new style focussed products and technology being brought to market and proudly showcased to the world at IFA2022.

One such brand to do this rather spectacularly was LG who brought us the new MoodUp fridge which is not only filled with advanced refrigeration features but also has personalisation at its core. Owners are able to change the colour of their fridge depending on their mood and light up their kitchen to reflect the desired ambiance. Furthermore, it incorporates speakers to play music thus providing an additional sonic experience.  With the ThinQ LG app on your mobile devices, you will be able to adjust the lighting from 22 colours on the upper panels and 29 colours on the lower panels. For those that don’t need this choice of combinations there are also 4 preset colour schemes. These presets also have the benefit of enabling the app to stream music playlists that compliments the selected colourway as well as syncing the light effects with the music so that the colours change with the music.

Sticking with home appliances, it appears that it’s no longer unusual to desire a range of products that are fully interactive. Some offer interactive panels, where, for example, you can pull-up recipes to assist with your cooking, Facetime a friend or simply use your appliance as a digital photo frame to display your snaps in an endless loop. Samsung presented such a solution with a bespoke range on MDA’s, which not only look fantastic but are also super efficient in their energy consumption and water usage.

The competition is also ahead of the curve. Again, LG have their own unique technology as demonstrated on their Instaview capable fridges, while Panasonic had its combination ovens which seem old fashioned but have been revitalised with new features in its SDA range alongside its bread makers and juicers. A clever move, reflecting the trend towards making things in the home to assist in budgeting and sustainability, as well as reducing the need for packaging and transport. These categories are seeing growth and Panasonic is very much ahead of the curve leading the charge here for premium brands.

It certainly appears that some lockdown habits are persisting, together with health and the increased cost of living being a driver for certain categories. I would suspect that breadmaking and juicing will continue to gain popularity across all generations. In fact Panasonic announced that their mission across all well-being categories, inner, outer and spatial well-being, is to deliver on their vision of holistic well-being.

Commercial Appeal

Another trend evident from many brands including Samsung, LG, Panasonic and TCL was developments in heating and cooling products. Aircon may not be a particularly glamorous category but in adding air purification technology and applying a variety of unpronounceable, ethereal names such as NanoeX or Breaver, manufacturers are trying to garner attention in this category but i feel these unpronounceable names are merely branding for branding sake, maybe detracting for the core of the product and its health benefits.

From branding to innovation and as mentioned, there’s no doubt that sustainability is the name of the game at IFA alongside intelligent connectivity of devices and Smart Home solutions and there was certainly lots to impress. Sometimes, however, I’m left with the impression that innovation can also be created only for the sake of it with no real commercial or mass appeal but merely to grab headlines. The LG Styler ShoeCase has to be for me the most random exercise in innovation from an established global brand. This thing is in essence, a box in which to display and sanitise your footwear, removing the odour of stinky feet. These cases are transparent on three sides, with customisable lights and a 360-degree turntable which refreshes shoes in 40 minutes with LG’s TrueSteam technology to reduce odours, viruses and bacteria. This is all very clever but the ThinQ app lets you go that one step further, in that you can upload the details of your most precious kicks to share on social media and brag about.. Mindblown? Mine is.

Taking this concept one step further still, you could place this box of wonders on the LG Aero Furniture table. Made from recycled materials, the LG Furniture range crosses home furnishings with technology. What is basically a lamp with mood lighting, buyers of the Aero table can choose a base and top to match their decor.

This approach was a trend across the board from Samsung with its ‘Bespoke’ range of home appliances which again enabled personalization of your appliances to match your living space and tastes. Taking the technology Samsung is known for and turning it into a statement piece many would like in their home. This naturally extended into some more traditional technology you expect to see at IFA such as the new Laser, 4K Triple and NEO QLED 8k televisions.

Toshiba also had some interesting tricks up their sleeve such as the new Toshiba Tik Tok TV to appeal to the generational shift familiar with the platform, bringing it to the biggest screen in your home with quantum dot 5k, Dolby Atmos and Onkyo speakers.

I suppose what we are seeing here from brands like LG and Toshiba is a way to tap into all generations and remain relevant whether that be through traditional technology as we know it and the new world, where technology intersects art and design to enhance and in some cases, create lifestyles. All done within the remit of sustainability and convenience for an ever changing and evolving population that now lives differently to how we did only two years ago. The paradigm was well and truly turned on, metaphorically and in reality.

In essence, I suppose the absence of this behamouth hosted in Berlin, has made us all grow fonder towards IFA, reminding us of  its importance in the industry, garnering more than 1.6 million impressions on all social media. This makes IFA the ideal platform for brands to showcase, with pride, their innovation which retailers will be ranging in the coming months. With the economy as it is, and home ownership becoming increasingly more prohibitive due to interest rates, some may revert once again to improving the space they currently live in. That’s where you fit in. Make the most of the opportunity and give your customers honest advice and sustainable solutions from the best technology that matches their needs.

To read the full article by Dan Todaro, Managing Director please visit ERT Online

The cost of living crisis has had a dramatic impact on consumer spending with brands needing to focus on value and the longevity of their products to win customer loyalty. These were some of the key findings from a new research report by marketing agency Gekko.

The survey of 2,165 respondents carried out by YouGov in August commissioned by Gekko, revealed that two thirds, 66% have cut back spending on ‘personal non-essential considered purchases’. These are defined as non-essential purchases that have a degree of financial or emotional investment.

Meanwhile more than 4 in 10 (43%) of people have cut back on spending on ‘essential household items’ due to the increased cost of living.

The re-considered purchase

For personal non-essential considered purchases, 52% of 18-24 year olds have cut back on spending, compared to 68% of 25-34 year olds and three quarters (75%) of 35-44 year olds. The categories hit hardest by a cut back in spending of consumers of these goods are: Consumer electronics and homeware and home furnishings with 61% of consumers of these goods reducing spending. Clothing & apparel 60%, DIY and garden, 50%. Baby and child, 41%.

In today’s environment the number one factor making people consider a purchase in the consumer technology space is that something is within budget, 69%, durability/ being fit for purpose was next, 52%. Third in the list was sustainability, still favoured by 23% of respondents. Brand awareness was favoured by just 13% of respondents. For Gen Z (18-24 year olds), the result for sustainability was far higher at 38%, suggesting the need for a tailored approach for brands to remain relevant in the current environment.

Brits slash spending on essential items

For essential household items, more than 2 in 5 respondents revealed they had reduced their spending (43%). Of these, 1 in 3 (32%) have slashed spending on essential household items by more than 15%. 3% have cut spending on essential items by more than 50%. There are some significant variations, based on gender, location, age and financial situation. 48% of women have reduced spending on household items, vs 38% of men. Of those who have reduced their essential household spending, home owners (of any type) are the most affected, with 63% saying they had cut spending by up to 15%, compared to 51% of renters.

Londoners are least likely to cut spending significantly. Of those who have reduced their spend on household essentials, just 2% of Londoners are cutting spending by more than 50%. Meanwhile in the East of England this rises to 6%, and 7% in the North West.

Millions of Brits looking to switch brands

Brand loyalty has plummeted in the current climate. 60% of people would switch brands for essential items and 48% of people revealed they are more likely to switch non-essential considered purchase brands. Men are less likely to consider switching their considered purchase brand choices, 43% versus 52% of women.

Commenting on the findings Daniel Todaro, Managing Director of Gekko said: “The results highlight the dramatic but also the uneven impact of this cost of living crisis. There is certainly no generic strategy for brands wanting to remain relevant in the current economic climate. These huge variations in choice are clearly based on income level, age, gender and location. No longer is desire beating need when making choices.”

He continued: “While large numbers of people are being seen to be cutting spending on considered purchases, it is now implied that brands should focus on price and durability as the two key factors driving buying decisions. Ephemeral qualities like brand values seem less important in today’s climate. However it is important for brands to have expertly crafted messages for different audiences with sustainability still crucial, in particular for younger audiences. Having the right tone and audience-centric approach may assist brands in weathering the turbulent times predicted ahead.”

To read the full research click here

With the average turnover of staff or attrition rate, at 63% in retail compared to the national average of 15% across all employers, isn’t it time that retailers take stock of this a little bit more? Considering how much it is estimated to cost retailers – a recent report cited that globally retailers lose $19 billion each year on new staff costs –  it’s a false economy not to treat your staff as a highly valuable asset. Instead, much of what is spent on recruitment could be channelled into refreshing stores and training staff to enable them to be effective in their roles and provide an exceptional customer journey for shoppers.

The focus should be on retention rather than recruitment and with over 32% of retail staff stating that they receive no formal training at all, it’s a critical part of the puzzle that creates the whole picture for your customer experience.

Brands know this and that’s why they invest millions each year to train third party retail partners. New starter or induction training isn’t where staff training should begin and end. An ongoing plan for individual staff members is essential, with regular reviews and new initiatives implemented. Also consider all the brands that come in and train your staff week in, week out and then compare that to the training you deliver to your staff. How does your internal training stack up in comparison and ask whether your own training benefits your employees and enables them to be the best that they can be and are motivated whilst doing it?

It’s recorded that one in three staff leave their jobs due to a lack of training that allows them to learn new skills and develop their skill set. This shouldn’t be the case, as shoppers expect to be engaged by sales staff who know how to handle the sale of a considered purchase. The sales associate has to understand the importance of the sales process and how to navigate this to meet the customer’s needs and enhance their experience. Without training, who’s to blame when the sale doesn’t get closed or the customer walks out and later orders online? Often I think it’s the retailer for failing to develop the associate’s skill set to identify the need, create a journey that responds to the need and close the sale through an enhanced customer experience which builds on your customer service proposition.

Now more than ever, enhancing the customer experience is critical to create theatre in order to take the consumer through the varied steps of the journey from demo to sale. To do this, the responsibility as the employer is to equip your staff to be the best they can be – and this all starts with training. A key element of success in store, especially for considered purchases,  is the engagement of shoppers with any retail sales advisor [RSA]. Therefore as the employer, are your RSA’s proactive, helpful, skilful, knowledgeable, and capable of providing a personalised experience? This is something the online experience can’t replicate and physical retailers should be capitalising upon and drawing people in-store with the promise of a worthwhile face to face engagement.

The difference is down to individuals, their training and management, all of which are critical when it comes to talking about a brand and its products. It is vital that RSA’s are informed and motivated to deliver an exemplary customer experience through being not only advocates of the brands ranged but also of the store itself.

So what can be implemented at very little expense, apart from time, in order to give staff the opportunity to grow with a view to be successful in their roles and motivated to remain as an employee of your store. Here are five suggestions that you can influence:

1. Ask your suppliers for training support or choose to work with brands that offer recognised training e.g. those who’ve been shortlisted for an ERT training award. Look around your store and identify every brand or category that your staff can’t sell effectively. These are the brands you can lean on for training support.
2. Seek out and invest in training specialists to support your business and develop your staff to be effective in their roles. But first, you need to understand what things are like from the shoppers’ point of view. What is their experience like when they come into your stores and engage with your sales people? Consider commissioning a mystery shopper survey to provide an independent assessment that can be benchmarked against other retailers and indeed your competitors. This will provide you with insight on what behaviours need to be changed and skills improved so that the training can be tailored accordingly.
3. Membership of organisations such as BIRA (British Independent Retailers Association) can offer specialist retail training and bespoke learning – https://bira.co.uk/benefits/retail-training as can seeking out support from your buying groups or trade bodies such as CIH, Retra, Sirius or Cedia to name but a few.
4. Check with your local authorities to see if they offer free specialist training and support to you as an independent retailer in the community. An example – https://www.midsussex.gov.uk/licensing-business/independent-retailers-support-programme-2021-2022/
5. Build and develop a Sales Advisor training program for your store(s) that recognises personal development and rewards individuals for their efforts. This does not necessarily need to be monetary, it could be in the form of certificates and or treats.

To read the full article by Dan Todaro, Managing Director please visit ERT Online

There is no escaping the fact that we are in the midst of the biggest cost of living crisis in a generation, with rising inflation and energy prices putting the squeeze on household finances by around £1,000 this year alone.

Inflation is set to rise even further, February’s figure has already reached 6.2%, marking its highest point in thirty years. In Chancellor Rishi Sunak’s spring statement he announced measures to try and alleviate the situation for households, but the charge was they won’t be nearly enough to alleviate such a unique situation.

While demand for products remains high and footfall continues to increase towards pre-pandemic levels, inflation, energy bills, and rising taxes have already begun taking their toll on consumer confidence. As of this month the GfK Consumer Confidence Index is down to -31, its lowest point since late 2020. Tellingly, the most significant drops come from the outlooks for personal finances and the wider economic situation, alongside the major purchase index, indicating that consumers are already concerned about how much they have to spend.

This perfect storm of cost increases, ongoing supply chain issues and Brexit red-tape, is also continuing to impact retail. In such a position, it is inevitable that these costs are eventually passed onto the consumer through higher prices. Lush has become another high street business that has had to up their prices by an average of 8.5%, joining the likes of Tesco and many others who have recently declared similar moves. Such retailers have also warned that further increases cannot be ruled out given the uncertainty.

Therefore the situation we now face is a consumer that is tightening their wallets amid the largest income collapse since the 1970s. Combined with retailers that are under pressure to remain competitive among some of the most difficult trading conditions in recent years.

Customer loyalty is going to be hard to retain if customers are more willing to shop around to grab the best deals for products, so a number of approaches need to be considered in order to ensure you are the most attractive proposition amongst the competition.

How can retail navigate its way to success in these tricky times?

Smart Pricing

It is clear that pricing is going to be a key factor this year, both in terms of the purchasing consumer and the margin conscious business. Indeed, effective margin management has emerged as a key growth driver for 2022, and getting this right will provide a significant boost. With 34% of UK business still pricing on an ad-hoc manual basis, introducing real time, automated pricing models will be a real differentiator in these uncertain times.

While staying competitive on pricing is important, it is not always necessary to simply be the cheapest for a given product, and retailers should be careful to not get themselves into a black hole of low-margin continuous discounting. Kantar research has shown that as much as 34% of brands are in a vulnerable position where their brand equity index is not supported by their pricing models.

Customer Service

It is important to remember that it is not just price that determines value. Research conducted by OnePoll on behalf of Gekko Group found that 37% of Consumer Electronics (CE) consumers would be willing to spend more on those products if they receive quality service, emphasising the real importance of getting this right at all points.

In-store and online advisors can extol the virtues of relevant products and their benefits. While true of nearly all product categories, it is particularly relevant to consumer electronics and other considered purchases, where shoppers will likely have more questions or want to see a demonstration.

Continuing with electronics for example, the value of efficient and smart devices can be highlighted by knowledgeable staff who are able to answer any queries from interested customers. The long-term money saving virtues of a smart thermostat for example, are easily explained in person, allowing such a product to shine when it might otherwise fly under the radar of a price conscious shopper. Fixtures and displays should also be updated to provide real value when a representative is not feasible.

Reward Loyalty

With consumers more willing to shop around than ever, it is important to explore all avenues in trying to keep them most engaged with your offering. This has led to a mini-revolution when it comes to existing loyalty schemes, particularly those of the major supermarkets.

Google search trends for ‘loyalty cards’ and ‘best savings’ have increased thanks to the rise in the cost of living, and consumers are looking for new types of schemes to entice them. Around 96% of shoppers say that they would like schemes to do more, and this goes beyond the small freebies or spend for points style many of us are used to.

Shoppers now look for personalised pricing, community outreach, and even gaming elements as a way to keep them interested. Tesco’s Clubcard prices are now a huge feature of their in-store displays, creating the desire to be involved and not miss out on potential savings. Personalisation has been a big point for Sainsbury’s, who is able to leverage its data to hand out relevant offers to customers, making them feel personally valued.

In combination with effective pricing and good customer service, the reward element is yet another way that retailers can present value against their competitors in this market.

The winners in retail this year will be stipulated by a few factors. Discounters will naturally have a headstart in attracting customers in the immediate term, but as we have explored, value is not just defined by price alone. Shoppers are also looking for quality and efficiency, with a view to being price conscious and also more environmentally friendly. These factors need to be clearly communicated across channels and all elements of the customer journey should be audited to ensure that this is the case.

Find your strengths in the current climate and promote them through all means available, while staying true to your brand will resonate with the customer whichever end of the pricing spectrum you are on. Doing this, alongside ensuring your customer experience is efficient and enjoyable, will keep consumers loyal even in these testing times.

To read the full article by Tom Harwood – Data and Insight Manager Gekko Group, please visit Talk Retail

Photo by Karolina Grabowska