EXCLUSIVE: By Jack Cheeseman, ERT Editor
CIH/Euronics is launching two new home appliance own-brands into the UK market; these will be sold exclusively through Euronics retailers.
The announcement came at the end of September at the buying group’s annual Member Conference – aptly name ‘Gamechangers’. I was lucky enough to be invited along to see the unveiling of not just one, but two completely new product ranges that will be available in Euronics stores from January next year.
The new own brands are called Sensis and Schönhaus and they each offer a collection of essential appliances – including washing machines, tumble dryers, refrigerators and dishwashers – aimed at slightly different demographics…
Above: The Schönhaus collection. Top: the Sensis range
Sensis – with the tagline ‘Makes sense’ – includes quality, affordable products aimed towards busy young families, while the Schönhaus range adopts the ‘Beautifully at home’ slogan and is aimed at the 50+ consumer who is looking for a more considered purchase as well as in-depth support and advice.
So why has CIH/Euronics – a 450-strong buying group of electrical retailers – decided to manufacture and start selling its own brands of home appliances? As Steve Scogings, Chairman of CIH and Managing Director of Stellison, opened the Conference, all became clear…
“Many brands are entering the direct-to-consumer (D2C) channel, all believing they can make more money and increase their market share,” said Mr Scogings. “They will continue to grow their D2C online business while still looking to us for support in doing so.”
Steve Scogings, CIH Chairman
‘Manufacturing monopoly’
Mr Scogings went on: “Our only option is to take back control for all our Members, both small and large alike, to supply you with the tools to help put an end to this manufacturing monopoly and set your company’s future on a different course.
“What you see here is just the beginning, but only when we are all working together can we turn the tide in favour of the independent electrical retailer – and away from the multinational manufacturing behemoths.”
CIH Chief Executive, Paul Tyler, then took to the stage to explain how the electrical retail market is changing with more manufacturers making cutbacks and potentially using fewer independent retailers to display their products.
“One of our main threats as a Membership is the irresponsible behaviour of some of our suppliers and their chosen routes to market,” he said. “D2C is, without question, becoming more aggressive and a distraction to consumers. Some Members have made the decision to stop supporting and purchasing from brands that are making decisions like this, but will the loss of one or two retailers be enough to change things or even make manufacturers notice? Certainly not, but if we all take this stance, it will make a difference.
Paul Tyler, CIH Chief Executive
“This is a battle that we will never win. Certain suppliers are on a journey that will ultimately not end well for us; they have your margin or your commission to trade directly with the consumer with.”
Mr Tyler spoke about his concerns for the long-term future of the traditional electrical retailer, and why it’s important for the generations to come that independents survive on the high street with a physical presence.
“So we need to take back control,” added Mr Tyler, “and we believe we are doing just that – by securing not just one, but two brands that you all own. This is our chance to prove the suppliers are wrong with their chosen activities, and if we all do this together it’s going to be a real success.”
The creation of these two new exclusive brands has been quietly taking place at CIH over the past two years. The recent Conference was the first time the brand names were revealed to Members, and they were both met with overwhelmingly positive feedback.
The retailers that I spoke to throughout the day were feeling optimistic following the announcements and were impressed with both Sensis and Schönhaus. Most importantly, however, they were all in support of the move and excited about the exclusivity both brands offered Euronics stores on the high street.
Stay tuned for my full report from the Euronics Gamechangers Conference, including interviews with the CIH top team, coming soon in ERT magazine…
