Tesco restructure boosts kitchen and bathroom sales

Supermarket giant Tesco has restructured its bathroom and kitchen project, with the appointment of Mark Two to supply product and lead installations, boosting sales.

The restructure includes an appointment of a head of sales, new sales team and procedure, together with the recruitment of an in-house head of installations.

Tesco kitchen and bathroom sales are now being driven by Mark Two, which not only provides the product but also leads the installation. Liz Lakin, who works for Mark Two in conjunction with Tesco, leads the projects with Retail Installation Services (RIS) responsible for installation with the South.

In addition to Tesco, Mark Two also supplies independent bathroom and kitchen studios with its Lakes Kitchens and Balterley Bathrooms range. However, the distributor has recently lost business having supplied Dolphin Bathrooms and Focus, which both entered administration

However, it has led retailers to question whether the company’s focus on chasing volume sales with Tesco will detract them from servicing the independent and, ultimately, leading to its decline.

Diane Buckley of Stuart Henry Kitchens on the Wirral commented: “When Tesco get what they want, they will chew them up and spit them out”. She added: “When Mark Two has been spat out they will have no independents left because they will have deserted the Lakes range”.

Her view was re-iterated by anonymous industry insider M_eye_view, who commented: “Mark Two is going to find themselves in very big trouble soon, they keep chasing the ££s they will p**s off independents. They will walk. Tesco will squeeze Mark Two for what they can get and when they have what they want, pop goes Mark Two.”

But not all kitchen industry experts shared the same view. Tim Foley of Kitchensfitted.com said: "Good combination - be interesting to see how things progress. Catering for the masses wil always be more difficult." 

However, he believes Tesco with its online service will evolve better than other multiple outlets and DIY giants and present a possible threat to their business. But he says independents who embrace and invest in an online presence, give themselves the best chance to compete on a level playing field. Foley continued: "All businesses have to adapt and evolve - every change presents a risk - no threat if independents do similar."

And managing director of Mark Two Nick Hopkinson MBE shrugged off suggestions that Tesco would pose a threat to his business. He commented: “All change presents challenges. Without change we would have gone bust years ago.”

EDITOR'S COMMENT: Every little helps

Editor Kitchens & Bathrooms News,
Philippa Turrell

While much of the retail kitchen and bathroom industry is getting in a tizzy about the threat of cheap prices on the internet, challenges to their business may actually lie elsewhere. Tesco is now helping itself to yet more kitchen sales following a recent re-structure of its team. The supermarket giant has recently appointed a new sales team and Mark Two Distribution now provides the product and leads the installations. Could this powerful combination be enough to attract kitchen consumers away from the high street? This supermarket brand certainly has clout and if it has the right product, at the right price, plus a comprehensive after-sales service – it could be the value that consumers are looking for. Independent retailers which suggest their business is safe, because Tesco doesn’t offer a wide enough choice, may find themselves disappointed. The supermarket has already created an online marketing campaign to drive business and this is tied up with attractive consumer promotions. It could be just enough to entice purchasers.

 But could this arrangement between Tesco and Mark Two, actually create more difficulties for the distributor than high street retailers. The recent and much-publicised troubles of Mark Two have already seen the business lose money chasing volume sales. The company, which supplied both Dolphin and Focus, lost out following the collapse of both of these businesses. Could Tesco be the final nail in the coffin? Will we see this supermarket giant further squeeze Mark Two’s business with demands for keen pricing? Or will independents eventually walk away from the distributor, concerned that its interests only lay in servicing large contracts? Frequently, manufacturers are accused of running with the hares and hunting with the hounds? If it works for the company - fine - but it can also be the reason for a businesses’ demise. Has Mark Two overextended its business model or is it simply a case of every little helps?

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INTERVIEW: FIRA going for gold

CEO of The Furniture Industry Research Association (FIRA) Jonny Westbrooke explains the significance of its Gold Certification and defends the association’s right to present it to DIY giants for their kitchen installation services

Q. The FIRA Gold Award has recently changed to become FIRA Gold Certification but why?

A. The FIRA Gold Award has been around for many years and it was often marketed by holders as an award although it always consisted of an audit programme; in short it is earned rather than bestowed. We, therefore, chose to change from calling it an ‘Award’ to ‘Certification’ to emphasise the rigorous procedures behind the accreditation scheme. In addition, we wanted to make it clear that it is an on-going certification process, whereas awards are generally associated with a specific date and therefore lose impact over time. We felt it would be more beneficial to redefine the scheme as Certification, especially as we want it to be recognised by both consumers and specifiers in all furniture sectors.

Q. What is the requirement for FIRA Gold Product Certification when the UK already operates British Standards?

A. Good question. The main difference is that the FIRA Gold Certification is an auditing programme. This enables FIRA to establish if the manufacturers or retailers continue to supply products to the same specification to the one originally tested. As you can appreciate, trends change within the kitchen industry and therefore each scheme holder has to commit to testing any changes to the product offer; whether caused by a change in specification, such as a new drawer system or a new seasons’ door design.

Q. What proportion of kitchen manufacturers or kitchen furniture sold does FIRA Gold product represent?

A. Most major retailers and certainly nearly all contract-based kitchen companies hold FIRA Gold Product Certification and therefore, I would think that this would represent a high proportion of the market, probably around 80%.

Q. How much consumer awareness does the FIRA Gold Product Certification or FIRA Gold Installation Certification have in the trade or high street?

A. Following the re-launch of FIRA Gold, this year, we have proactively started marketing the FIRA Gold Certification Scheme to architects, facility managers and specifiers. With the aid of a forthcoming web project, we aim to assist specifiers within the domestic and commercial markets to understand even more fully the different standards and specifications available within the UK, which will naturally include detailed information about FIRA Gold Certification schemes.

We will also be developing a FIRA Gold consumer campaign in 2012, as well as encouraging our holders to use the logo within their own marketing material. As part of our 2011 re-launch FIRA’s marketing manager created a FIRA Gold Technical Reference pack, providing a full range of marketing support and POS activities for marketing managers of Certification holders to e4xplain what it is to their customers.

Q. What advantage is it for high street retailers to sell FIRA Gold Product furniture?

A. It helps them increase their sales by:

Standing out from their competitors and adding value to their offer by using FIRA Gold Product Certification quality mark of excellence

Providing customer satisfaction through consistently achieving product excellence

Giving confidence to their customer that the product has been tested and audited by the independent industry experts not just reaching the minimum standards, but exceeding them

Allows them to grow their reputation and brand as a quality supplier

Creates new and exciting advertising and PR opportunities ultimately raising their profile

Having an independent certification which is industry recognised as a mark of product excellence.

Q. B&Q and Homebase have recently achieved FIRA Gold Installation Certificate, yet these are frequently held up as poor examples of kitchen fitting. Does this not bring the FIRA Gold Installation into disrepute?

A. Due to the high volumes of kitchens that the larger retailers install there will always be unhappy customers and internet-based reviews are sometimes strongly biased towards them particularly if they are very active; in other words it can often be the case that a few loud voices make a very big commotion. It should be said that the supply and fitting of a kitchen is logistically very complicated, any number of things can go wrong which the retailer may not have direct control of. From time-to-time things do go wrong for every business and we believe it is how problems are dealt with that is the real mark of excellent customer service.

The key point is that by achieving FIRA Gold Installation Certification, large retailers are showing their commitment to ensuring their installations are carried out as well as possible. FIRA Gold Installation Certification looks at every aspect of the installation process, ensuring that installations are carried out following a robust process which FIRA has audited. Through the certification process, large retailers have shown their genuine desire to improve their installation services, which can only be good for consumers.

Q. Why has the uptake for FIRA Gold Installation Certification been so limited with only five accredited companies?

A. The installation scheme is relatively new in relation to the product scheme. We are in negotiations with several larger manufactures and retailers so we are confident that over the next year the number of certified holders will grow. Also, the numbers of kitchen installed by the current holders is huge and represents a huge chunk of the market.

Q. How can you encourage boutique kitchen studios to apply for FIRA Gold Installation Certification, when they want to disassociate themselves from DIY offerings?

A.  I would certainly encourage smaller retailers to apply, after all FIRA Gold is a certification scheme and the mark of excellence for furniture. What better way to give potential customers’ peace of mind than by demonstrating that your service has been certified by the industry’s independent authority?

Electrolux Design Lab names winner

Electrolux named the winner of its Design Lab contest as Adrian Mankovecky from Slovakia who carried away the title for his Portable Spot Cleaner, at Room Home Intelligence at the Business Design Centre in London. His design concept was a small cleaner that refreshes clothing and removed stains with steam and ions.

He beat a field of 1,300 industrial design students throughout the world who were asked to consider the theme of ‘intelligent mobility’. The entrants were invited to create home appliance ideas for how people prepare food, clean and do dishes both within and beyond the home. It demanded the appliances should be more potable and provide flexible control to liberate people from being in the home. The brief also requested that the ideas offer personalisation and inspire users, while using technology to offer support and guidance.

The jury, which included Danish design Cecilie Manz, award-winning architects Hayes and James Slade and Henrik Otto, senior vice president of global design at Electrolux, was impressed with Mankovecky’s thinking.

The reason for naming Adrian Mankovecky the winner was given as : “The Portable Spot Cleaner is built on a very solid consumer insight and it is highly relevant. It is an instant laundry device that has a positive impact on the environment by reducing consumption. Its usage and interaction are very intuitive. We all want one.”

Senior vice president of global design at Electrolux Henrik Otto added that he personally liked how the Portable Spot Cleaner is similar to the Ergorapido being “a fresh new way of tackling a clothing care problem on the go, and with consideration for sensitive materials.”

Adrian Mankovecky wins a 5,000 Euros and a six-month paid internship at an Electrolux global design centre.  The second prize was presented to Enzo Kocak from Monash University in Melbourne Australian for the Ribbon, a flexible thermos and third prize was presented to Roseanne de Bruin from Massey University in New Zealand for the Smoobo blender.

The People’s Choice award, voted online, was presented to Matthew Schwartz for his Onda Portable Microwave.

EDITOR'S COMMENT Power to the people

 Kitchens & Bathrooms News
Editor, Philippa Turrell

As a resident of one of the hardest riot hit areas, Croydon, I can’t fail to mention the recent atrocities which have taken place throughout the UK’s cities. People have been justifiably outraged at the mentality of this wilful and malicious mob. Left in their wake has been complete and utter devastation, with property, livelihoods and even lives left in ruins. According to Businesszone.co.uk, One in 10 UK retail businesses has been affected.  I hope that all your bathroom and kitchen showrooms have remained unscathed.  But it’s good to hear of communities pulling together, with ‘riot wombles’ cleaning up the aftermath. Distributor BCG is also offering support to affected kitchen and bathroom businesses by providing ‘anything and everything’. It just shows the power of joining forces…

In our industry there has been some concern about a recent ‘coming together’ of ‘forces’, resulting in the Kitchen & Bathroom Forum. It is a group of nine industry associations: Builders Merchants Federation; Association of Manufacturers of Domestic Electrical Appliances; Furniture Industry Research Association; Society of British Interior Designers; Institute of Kitchen, Bedroom, Bathroom Installers; Bathroom Manufacturers Association; Kitchen, Bathroom, Bedroom Specialists Association; National Training Group and National Association Professional Installers and Testers.

If its motive is just for sharing knowledge between bathroom and kitchen associations – fine – just another talk shop. But with all these parties in one room, I’ve questioned if this Forum proposes to act as ‘one voice’ instigating industry change. “One Voice – Not us”, the members of the Forum retorted in unison. Yes, that irony wasn’t completely lost on me, either.

I’m sure all these associations represent their members well. In fact that’s not a point in question. But who ‘voted’ or ‘elected’ these bodies to come together? And what about those individuals in the industry that don’t belong to any of them, how will they be represented, if at all? While, I clearly don’t believe in mob rules, I do believe that ALL those working in the industry should have an input into its future direction.

But they’ve already suggested that they want to work together to resolves issues, improve standards and perhaps engage with government. How do they propose to go about it if not speaking together or as A voice? And who ‘elected’ these bodies to come together to do that very job? What about the individuals in the industry that don’t belong to any of these bodies, how will their ideas be represented if at all? There’s lots of questions but at the moment not many answers. While, I don’t believe in mob rules, I do think that ALL those working in the industry should have an input into its future.

KNOW YOUR TECH TUES: Taptile wireless lighting

Each Tuesday, we’re going to put under the microscope just one piece of tech that can add value to your kitchen and bathroom schemes and money to your bottom line

As a bathroom designer, looking to add value to a home, what better way to create a point of difference in your project and add to your profit with a lighting scheme? At the very premium end, it may mean working in conjunction with a specialist lighting consultation but for the rest of the bathroom market, Taptile suggests it has the answer.

It has recently created a ‘plug and play’ (for professional electricians, anyway) wireless touch-control for up to three lighting systems, including on-off switch for extractor fan (or even AV system) for £149.99 RRP. The system, which governs ambient and mood lighting, can be used with new lights or even with existing fittings and up to six Taptile controls can be used in one room.

It works using an 8mm sensor panel which fits behind ceramic, composite or wood. As it’s behind the decorative surface, it means that it doesn’t have to adhere to bathroom lighting zones. The system is 100% waterproof, so isn’t dependent on the quality of the grouting, and opens up design opportunities to have lighting, extractor or AV controls in the shower or next to the washbasin or bath.

Customised control 'panel'

The Taptile Elegance Mood Lighting system features six touch points, which can be etched into bathroom tiles using a kit – or designers can go to town creating their own customised ‘buttons’, such as mosaics or shells.

Taptile has already received acclaim in the market, having been named a finalist for the Product Innovation Award at the recent KBBLondon exhibition and it is soon to introduce a system for kitchens too!

COMMENT: Innovation is everything

Commercial and marketing director of the Jacuzzi UK Group (brands including Jacuzzi, Astracast and B.C Sanitan), David Tutton explains why innovation is key to drive the kitchen and bathroom industries

‘Innovation’ has become the buzz word of the decade and while it’s a relevant topic for many industries globally, it has quite literally consumed the kitchen and bathroom market. Along with sustainability, eco-awareness and energy-saving of course, the hot topic of innovation is one we simply cannot get away from. And why would we want to? It’s an incredibly exciting tool for businesses, one that can help us to grow, push boundaries and keep on top of, and even in front of, consumer demands. In simple terms, it is innovation that will drive a business forward, especially in such difficult trading times where homeowners are being particularly cautious with their hard earned cash.

The dictionary tells us that to innovate is to make changes, but it goes far beyond this. At Jacuzzi, we believe that innovation is all about creating something new, something different and something that hasn’t been done before. It can be anything from a set of small steps forward to one giant leap but for any company trying to lead the market, it’s incredibly important.

When you’re the first to market with a product that is unique and in demand, it becomes easy, or easier shall we say, to set the company apart from its competitors. The kitchen and bathroom market is crowded with fierce competition so essentially, this is a great way to make a mark and be heard. Yes, being innovative will mean investing time and money in product research and development but the way the market is going, there doesn’t seem to be an alternative. Sadly, those who choose to ignore the calling will be left in the dust with the other companies who have failed to keep up. Innovation is no longer a choice, it’s a requirement.

At Jacuzzi, we view this constant need for innovation as a positive, not a hurdle, and I think it’s important that other manufacturers do too. It shouldn’t be feared; it should be embraced and rejoiced because the rewards will be reaped. Upfront investment in innovation can buy years of market credibility.

Take Apple for example – it’s their constant supply of fresh, innovative and exciting gadgets that has got people talking and most importantly spending money. It’s only natural that with any good innovation, rival companies will follow suit and make it their mission to go one better. This helps to create healthy competition in the marketplace, take products to the next level and provide consumers with a constant flow of fresh products and a reason to spend money. A stagnant market is one that lacks ideas and innovative thinking. A thriving market is one that is filled with companies desperate to be the first to market with the next development.

Innovation doesn’t always have to be visible to the end user, however. It can be a challenge to existing processes of manufacturing or an adaptation of customer services that makes the way you do things different, and better than your rivals. Sometimes, innovative methods of reducing labour, time and costs can be just as important as USP product innovation but ideally, you’d want to incorporate both types into your working practice.

You only have to look at this year’s kbb London exhibition to realise just how important and relevant this subject is to our industry. For the first time since the show began back 25 years ago, the organiser dedicated a separate area of the exhibition to the industry’s most innovative products, all of which were shortlisted for an Innovation Award. Let’s hope this decision spurs even more competition within the marketplace because you can never have too much. Another company’s success is another’s fuel to go that one step further next time. I say, bring it on!