COMMENT: Righting the wrongs

Editor Kitchens & Bathrooms News,
Philippa Turrell

Beko must be breathing a sigh of relief (with News of the World having taken most of the recent headlines), following the national publicity surrounding the safety of some of its fridge freezers.  The figures of 500,000 frost-free fridge freezers, which could pose a fire hazard, made for uncomfortable reading and caused a near meltdown of its customer hotline. There’s nothing quite like an outraged public to create such a reaction. Although I naturally understand the concerns of those consumers involved, and don’t want to make light of the circumstances, it should be pointed out this is a rarity in domestic appliance manufacture.

Malcolm Scott, corporate chair of the Kitchen, Bedroom, Bathroom Specialists Association (KBSA) comments: “It is clearly regrettable that there is a problem but it must be remembered that this is an isolated incident and with more than 100 million appliances in use in the UK at the moment, it illustrates just how safe modern appliances are.”  

The appliance manufacturer should be proud of dealing with the situation and the way it reacted is testament to the hard work of all its employees. It not only increased the capacity of its call centre by 20 times, employing more staff to man the lines, but increased the capacity to modify the faulty appliance by five times. Beko certainly didn’t hide from its responsibilities but kept all customers up to speed through social media. And it continues to do so.

It should offer a valuable lesson to all, that problems can and do arise in all companies. And before you’re too quick to judge, consider what can happen in your own business. It’s not only the issues that arise but how you deal with them that shows the true marque of a business. And, although I’m fairly confident that Beko didn’t want to deal with the situation, in such an open arena, it should be recognised not criticised for recent actions.

Beko call centre flooded with customer queries

Appliance manufacturer Beko has increased its call centre capacity by 20 times to cope with customer queries over its 500,000 fridge freezers, which pose a potential fire risk. It has three call centres operating on Saturday and Sunday and has increased its capacity to offer free modifications by five time and 'plans to increase further'.
The company has also provided an online check for concerned consumers, allowing them to supply contact information and for a modification appointment to be arranged.
The Beko fridge freezer models affected were manufacturerd between January 2000 and October 2006. These have a serial number that begins with either 00, 01, 02, 03, 04, 05 or 06 and can be found on a label inside fridge. Other Beko branded models and all Beko frost-free fridge freezers manufactured after this date are unaffected.
In a statement provided by Beko: "We had already spoke directly with tens of thousands of consumers."
It added: "Over 500,000 of these products have been sold and most have been safely  in use, some for over 10 years. It is important to realise that the risk to consumers is extremely low. You can continue to use your fridge freezer, but as with any electrical product, if you notice anything different please contact us. Our original plan, as discussed and supported by Trading Standards was for a phased approach in order to minimise consumer delay and concern."

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COMMENT: What impact will the growing rental market have on white good sales?

Steve Macdonald, marketing director of Hoover Candy shares his views on the growing rental market in the UK and how it could impact on the industry. He says in this recession-driven economy, retailers and manufacturers of high value products need to look at the key drivers in the marketplace to guarantee the success of the future.

It goes without saying that no matter what the government says, we are still in the grips of a recession driven economy  and as the consumer has learnt to live within a more frugal economy, the consumer is also asking themselves with every product purchase no matter how large or small;  ‘do I really need it.’ We have seen this across all sectors, but appliances are still in an area where the consumer is proving prudent.

The market is changing – the cheap and chic consumer is becoming more polarised from the aspirational high end purchaser; with the middle market a very competitive playing field. But is there another way we can look at the market – and perhaps look to the past to gain lessons for the future?
Recent statistics (source: Your Property Network August 2010) indicate that tenant demand in the UK continues to grow. The Chartered Institute of Housing (CIH) issued a report which states more and more people are looking to rent, rather than buy, in the short to medium term. The Paragon Group's second quarter 2010 report also tells us that three times as many landlords say that tenant demand is rising. As marketers of white goods, do we need to respond to this change by offering the consumer a solution that is relevant to their lifestyle choice - but also importantly responds to the disposable trend -
where consumers want to be able to replace and upgrade more frequently than ever. In our consumer-driven society where the perception is that if something goes wrong, there's no sense repairing it when the replacement cost is not that much higher, do we need to look at adding another solution to our offerings?

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Impulse Bathrooms expected to snap up Ideal Standard plant

Group managing director of
Imperial Bathroom Products, Jan Klomp

Chinese manufacturer Impulse Bathrooms is said to be striking a deal with Ideal Standard over the purchase of its Middlewich factory.
The news follows Impulse Bathrooms announcement [Kitchens & Bathrooms News, February 2011 issue] it was seeking to acquire a ceramic manufacturing plant 'with a strong preference for a UK location'.
This was around the same time Ideal Standard announced its Middlewich factory closure.
Almost 250 people lost their jobs when Ideal Standard shut the doors of its Middlewich plant but this deal could see a  rumoured 150 jobs created.
Although details of the deal remain firmly under wraps, Impulse Bathrooms has been recruiting for staff in the local area.
Group managing director of [parent company] Imperial Bathroom Products, Jan Klomp commented: "The rumours in East Cheshire have been for a while the 'Chinese' are coming...But they [local press and residents] have finally put two and two together. Our pre-recruitment for staff and presence in Middlewich over the last 10 days has generated an interest. We will refrain from any further comments."

A statement issued by Ideal Standard read: "Ideal Standard International can confirm that it is engaged in ongoing meaningful discussions with Imperial Bathroom Products Ltd regarding the potential purchase of its Middlewich facility. To this date nothing has been concluded."

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BSH repairs fire hazard dishwashers

BSH Home Appliances has identified a number of its Bosch, Neff and Siemens dishwashers have an electrical component that may overheat and cause a potential fire hazard.
The threat is posed by selected models manufactured between 1999 and 2005 and to help customers identify whether they own an affected dishwasher, BSH has set up a contact site.
BSH is undertaking a free repair programmes of the affected dishwashers and consumers will be able to arrange a visit at home.
Additionally, a dedicated call centre has been set up on Freephone 0800 561 0082 to answer questions and help facilitiate the scheduling of repairs.

Latest News: Beko fridge freezers in fire risk claims

It is believed up to 500,000 Beko fridge freezers could be posing fire risks in homes and businesses, according to the London Fire Brigade (LFB), although this figure is unconfirmed by Beko.

The LFB reports that 20 fires in the capital, causing one death, have been attributed to a defrost timer on a specific production range of Beko frost-free refrigeration, which can fail and overheat.

The affected 36 frost-free refrigeration models were manufactured between January 2000 and October 2006.

These include: CAD543FX; CDA654FW; CDA647FS; CDA647FW; CDA648FS; CDA648FW; CDA653FS; CDA653FW; CDA653FX; CDA659FS; CDA751FS; CDA751FX; CA5411FFS; CA5411FFW; CA5411FFX; CA7014FFX; CA7015FFS; CA7015FFW; CA7015FFX; CDA539FS; CDA539FW; CDA539FX; CDA543FS; CDA543FW; CDA752FS; CDA752FW; CDA752FX; CS460FF; CS460FFS; CS460FFSD; CS461FFW; CS461FFS; CSA4706FFX; CSB4606FFS; CSB4606FFSD; CSB4606FFW.

The LFB alerted Beko to the problem in June 2010, however the appliance manufacturer states it was confirmed in December 2010.

Since becoming aware of the issue, Beko has worked with the LFB and trading Standard to identify the best method of reaching all affected consumers and arranging a modification.

A statement released to the press read: “We have contacted all retailers who sold these products to seek their help in identifying affected customers from their sales records. This has allowed us to mail these customers to make them aware of the issue and urge them to contact our Freephone number [0800 009 4837] to arrange the modification.”

It continued: “We are working with a major electronics retailer to contact owners of these products and carry out a free of charge modification to replace the defrost timer…As a result of this on-going activity, we have mailed over 200,000 owners and have successfully located and modified 11,000 units.”

But consumer champion Which? has said more can be done by the appliance manufacturer to ensure all buyers are protected, not just those who have the contact details for Beko.

Douglas Herbison, chief executive of the Association of Manufacturers of Domestic Electrical Applicances (AMDEA) disagrees with Which? He said: "We understand that Beko has been following the agreed procedure for dealing with the issue that has arisen. We also understand that the product in question has not been manufactured since 2006. As usual, there will be an assessment of what exactly caused the problem in this product and whether or not this could be addressed by a change in the relevant standard."

Herbison continued: "It is important to remember that products are often recalled as a precautionary measure if a fault is identified and this process is intended to ensure that consumers are confident of their safety but the process of reviewing the safety of products is on-going and any potential risk is taken very seriously and addressed as soon as possible."

For its recent appliance launches Which? has awarded Beko Best Buys for selected models.

 A Which? spokesperson points out: "Beko has performed consistently well in Which? reliability surveys over the past few years, scoring an impressive 89% in the most recent one. We have also awarded Best Buys to two Beko fridge freezers - neither of which are affected by this problem with the defrost timer".

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Breaking News: Beko fridge freezers in fire risk claims

According to the London Fire Brigade, Beko fridge freezers have been the cause of 20 fires in the capital, which have caused injury and one death, since 2008.

The incidents have been attributed to the defrost timer on a specific production range of Beko frost-free refrigeration which can fail and overheat, which leads to plastic components and insulation catching fire.

Fire chiefs are urging people to check if they own the particular models of Beko fridge freezers, which were manufactured between January 2000 and October 2006. 

 According to the London Fire Brigade investigation team, it has been working with the manufacturer to establish the link between the faulty timer switch and a number of house fires.

The Brigade alerted Beko to the problem in June 2010 and the manufacturer is trying to locate the products, offering a free of charge service for the fault to be corrected.

London Fire Brigade's assistant commissioner for fire safety regulation, Steve Turek said: "Expert fire investigators have had to work for a long time to confidently establish these faulty fridge freezers as the cause of a number of serious fires. Having established this link, we have worked closely with Beko to ensure the public is kept safe."

A safety notice issued by Beko read: “Quality and customer safety and satisfaction is paramount to Beko; all it products are independently tested before being placed on the market and meet all UK and European safety standards. The number of incidents to which these products have been potentially linked is extremely small, nevertheless, as a responsible manufacturer we have decided to proactively contact the owners of these fridge freezers as we wish to make a free in-home modification to remove any potential risk with this component.”

LEC has also issued a Product Safety warning for a frost free refrigeration model, where the defrost timer can fail and overheat.

The model affected is the LEC TF2304W in white and was manufactured between January 2004 and October 2006.

Manufacturer of LEC appliances, GDHA is carrying out a free of charge modification to the defrost timer.