Tag Archives: SDA

Smoothie operator

juicer banner

With healthy eating at an all-time high, the market for juice extractors and other food prep gadgets has steadily been growing over the past few years.

A recent study by Mintel found that now 41 percent of Brits are cooking from scratch every day, with consumers looking to control their diets and improve their health.

Retailers need to cater to their audience, ranging a good selection of products within the category, with the ability to sell them effectively, as sales are only going to grow.

Now a mainstay of the health food appliance category, sales of low-fat fryers, for example, are continuing to increase, growing by 12 per cent year on year, where traditional deep fat fryers declined by one per cent.

While the fryer category as a whole has grown by eight per cent, two-thirds of this growth is down to healthier fryers alone. With a higher price point averaging at £101 compared with the average £25 for traditional fryers, low-fat fryers are not only a more popular product, but also more profitable for your store.

Likewise, sales of standalone grills have increased by 30 per cent since 2011. The category has seen a jump in popularity as a whole, with 15 per cent of Brits interested in purchasing a grill, compared with only 10 per cent in 2013. Traditional fruit juicers have seen a 35 per cent drop in sales volume since the beginning of 2016. On the other hand, juice extractors (such as the NutriBullet) have grown by 111 per cent and sold nearly one million extra units in the past 12 months.

Healthy

Extractors are taking the market away from juicers because of their health credentials. Whereas juicers only release the sugary juice (sometimes as much as a can of coke), extractors keep the vitamin-filled fruit fibre, creating a healthy smoothie. There are clear health benefits to all of these products, with low-fat fryers and grills cutting fat from everyday cooking, and extractors making smoothies to make it easier to hit that all important five-a-day. However, all of these products are considered purchases, with price points generally higher than their ‘unhealthy’ counterparts. While the health benefits of the products are clear, many consumers will need to be convinced that their new extractor or fryer is value for money.

As such, to make the most of the category, it’s important for your store to explain the financial benefits to shoppers.

A good example is juice extractors – the average price of a medium smoothie (450ml) from a high-street coffee chain is £3.25. Based on the ingredients of this smoothie, making the same thing at home by buying a watermelon, grapes and some strawberries would only cost around £1.35. Using a mid-range extractor, such as the Morphy Richards Easy Blend, it would take only 19 smoothies to recoup the cost of the product.

Based on making one smoothie a day, this would take less than three weeks.

This is a perfect opportunity to demonstrate the financial benefits of a juice extractor to shoppers, many of whom will already be buying smoothies every day from a local coffee shop. Knowing that they can recoup the cost of the product in as little as three weeks will be a huge factor in their decision to purchase, as the extractor will likely save them a significant amount over time.

For those shoppers who favour convenience over savings, a demonstration could change their attitude to the product. Show them how easy it is to make their smoothie every morning, while simultaneously offering them a sample made right in front of them.

Features

If you’ve decided to demonstrate a juice extractor product in your store, set aside a budget to buy fresh fruit each morning on busy days, especially each weekend. Ensure that your staff are trained to use the product, including food and hygiene training, and are briefed on its unique features.

Position the demo stand prominently, offering passers-by a fresh smoothie and the opportunity to discuss the product with a staff member.

The health SDA category is an excellent one to tap your store into consumer interest and market trends. It also offers a great opportunity to create some theatre in store, demonstrating these fantastic new products with colourful displays that will catch the eye of passing shoppers, as well as those already interested in making a purchase.

 

Read more at: http://ertonline.co.uk/opinion/smoothie-operator/

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Smart Move

smart home banner

The connected home is now reality, not a fantasy. The global market for smart-home appliances is expected to be worth $38.35 billion by 2020, and will only grow as demand and consumer interest in smart appliances increases. Shoppers will be looking for smarter appliances, but these can be balanced with regular models depending on a consumer’s desire to have some or all of their devices connected.

Some categories are clearly just jumping on the bandwagon, such as a connected SDA, which is in most cases an expensive and underused version of a regular appliance.Yet when considering the connected home from a long-term financial and time-efficiency perspective, some are valid purchases, once you’ve weighed up the cost against its potential long-term worth. Many of these domestic appliance products are, however, costly and there’s a good chance that if you could afford a kitchen and utility room full of connected devices, you’re perhaps not going to be the one cleaning or cooking and directly using the connected devices.

For retailers, the margins on smart appliances are evident, however this must be weighed up against unit sales, which may mean a lower margin than your bread-and-butter range could achieve if it were occupying the same space in your store. While the investment in ranging smart appliances may not be attractive at the moment, remember that sales in John Lewis stores in the smart-home category increased by 81 per cent year on year from 2014 to 2015. This is a growing trend that will likely spread to independent retailers, as smart appliances become increasingly more mainstream.

Having a select range of smart appliances gives your store an aspirational product and proposition for shoppers to consider when looking for a new washing machine or fridge. It’s worth considering that many shoppers looking to purchase a new appliance are doing so as a ‘distress purchase’. These consumers will be looking for a reliable device, not necessarily one with smart features.

However, a demonstration from a knowledgeable staff member connected via a tablet or smartphone, to explain the benefits of the smart system, may persuade many shoppers to purchase for the long-term benefits. These include compatibility with future smart appliances they may add to their home.

My advice is to pepper your range with connected devices, but don’t forget the mass-market appeal of traditional appliances and offer choice at all price points and functionality.

Read more at http://ertonline.co.uk/opinion/smart-move/

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SDAs: Are they really worth it?

tefal fry sda

Small appliances attract footfall in-store, encourage impulse purchases and can help make your store look more attractive to customers, says Daniel Todaro, managing director of field marketing agency Gekko

The short answer to that question is yes, and they will always be worth ranging for two good reasons.

Firstly, they attract customers into your store, which is valuable to increase traffic and change perceptions. You don’t want to be perceived as only ranging high-ticket, one-off purchases.

The second is that we are becoming a little more adept in the kitchen, partly driven by celebrity chefs, Great British Bake-Off and MasterChef.

The growing SDA market creates an opportunity for many consumers to replace their old, outdated items and do so guilt-free as the initial outlay is considerably less than some other gadgets and the long-term gain and use are easily justified.

According to researcher GfK, the UK SDA market grew nine per cent in 2014 to surpass £779 million. The research also highlights the growing demand for liquidisers, which grew by 144 per cent with an average price tag rising from £36 to £42, and also a 95 per cent increase in the juicer market.

Our interest in healthy eating is demonstrated by the 48 per cent increase in 2013 of low-fat/no-oil deep fryers. However, do be wary of fads, as low-fat/no-oil SDAs dropped in value by £2m in 2014, losing popularity by becoming mainstream products. I suspect the same will happen to juicers as the market becomes saturated.

The SDA category, which also includes hot beverage makers, kettles, toasters, food preparation, sandwich toasters, health grills and deep fryers, is a staple category that offers consumers convenience and choice at various price points. The UK is one of the most diverse markets for SDAs in the world, with more than 700 new SDA products introduced into the market in 2014 alone, offering retailers an opportunity to refresh seasonal ranges with limited risk.

Although electrical retailers will always thrive on the MDA staples, diversifying your product range to include SDA will make your store more attractive to a broader spectrum of shoppers. Many small appliances are stylish, well designed, and will make your store look better.

With the in-store customer journey becoming increasingly more important in retail, correctly merchandising your store, coupled with training your staff to communicate the benefits of your products, will transform interested shoppers into customers, and will ultimately improve sales.

Gekko suggests that sales staff quickly identify the individual customer’s motivation to buy, whether it is driven by value, style with colour coordinated bundled solutions, or practical features aimed at making life easier.

Remember value is in the eye of the spender, the role of sales staff is to demonstrate that value in each and every conversation.

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