A Perfect Pitch

It’s not easy to keep an eye on the global market when you’re trying to run a small-to-medium business, but these days it is becoming increasingly important in order to remain relevant. Many customers do have the time to research products and trends in the industry and, as a result, are becoming more knowledgeable and more demanding of their suppliers.

The Australian market is heavily influenced by what is happening in Europe and hence many of the larger manufacturers or companies regularly send representatives overseas to stay on the cutting edge – but this is a luxury most small-to-medium businesses cannot afford. However, an encouraging solution is at hand.

Ron Redman is the business development manager at Blum and has more than 35 years experience in the K&B industry. He believes it’s essential for the Australian industry to be at the forefront of design and trends in order to reduce imported products stepping into our market.

‘As long as the Australian industry has the awareness of what trends and benefits there are in what’s being developed in Europe, I think it’s good for the industry,’ he says. ‘The kitchen industry has to become aware of the customer’s needs and not just the price.’

Directly related to this is what industry consultants Liz Jones and Marylou Paino have observed as a ‘polarisation’ in the market.

‘The middle market is shrinking and becoming less available, which means the top (premium) end of the market is growing, at the same rate as the bottom (value) end of the market.’ says Liz. ‘The challenge for the kitchen industry is that the more the value end grows, the more loss of share the cabinetmaker will experience.

‘The value end is really being driven out of global procurement operations, specifically in Asia, and is also being driven by large retailers, whereas the premium end is the area of the market that the cabinetmakers can really own. In that market people want premium looks, premium services, premium materials. European relevance is absolutely critical in that premium end of the market.’

In response to this dilemma, when they embarked on their trip to the Eurocucina kitchen and bathroom show in Italy earlier this year, Liz and Marylou were determined to level the playing field for the smaller players.

‘Marylou has got a design background, I’ve got a business background, and between the two of us we thought we could bring back some really valuable insights for the Australian industry,’ says Liz.

These professional insights have evolved into a practical resource – Trend Journal – which provides businesses with a comprehensive overview of the global kitchen industry but, most importantly, how it relates to the Australian market.

If you look at global kitchen markets in particular,’ says Liz, ‘there’s a lot of concentration where major retailers dominate, whereas in Australia it’s still very fragmented. We want to keep it fragmented in many respects, but to do that we actually have to make small businesses more relevant.’

Liz and Marylou believe that – because of its size and population – the Australian market has some unique challenges.

‘In Australia we actually have pretty good global awareness,’ says Liz, ‘but I think the challenge to the Australian market is that we have a very small population which makes getting critical mass harder for players. We’re also geographically dispersed so it’s often difficult to obtain collective knowledge competencies.’

The first in a series of Trend Journals focuses on kitchens, with a follow-up title on bathrooms to be released next year. Future titles will explore other topics such as house design and environmental products.

The Trend Journal is ideal for the small-to-medium size builder, cabinetmaker, or even architect/designer. The current version on kitchens contains broad information about:

• the current and future kitchen market in Australia
• some of the dynamics of, and changes to, the market
• how changes impact on smaller players in terms of competition
• European styles and images, giving you insight into the latest international looks straight from Eurocucina
• practical tools and advice on how you can use these styles to make your business more relevant
• the styles, looks, finishes and textures that will inspire your customer.

‘The information in our journal is very specific to “here’s the look and here’s the trend” but “here are also some ideas on how you can achieve these in the day-to-day running of your business”,’ says Liz.

‘Also, we’re not aligned to anybody and I think that’s what’s unique about our offering – we take a very unbiased and neutral view.’

In terms of trends coming out of Europe , Liz and Marylou observed a definite move towards the electronic age and a dramatic shift away from the decorative era seen in kitchens during the 80s and 90s. These days consumers are more interested in the functionality of kitchens and getting back to basics.

‘It was more about internal elements and a lot about the engineering,’ says Liz. ‘Everything was very understated, nothing was over the top, so the minimalistic tone was still there. Colour was neutral tones, still a lot of timber, a lot of natural materials, a lot of stainless steel.’

‘The challenge was the quality of some of the engineering wasn’t quite up to par, but the intent is right and the focus on hardware is certainly the direction we are heading in.’

Ron Redman, who also attended the fair, says, ‘From my perspective a lot of what we saw at Eurocucina is transferring to here in Australia . Kitchen manufacturers [and builders] need to be aware of what the customer’s needs are and what customers are seeking.’

Of Trend Journal, Ron says, ‘I think it’s fantastic that two people of such experience have the ability to dissect an incredible amount of data and present it in a logical form for the Australian industry to digest. Personally I think there are benefits for manufacturers [and businesses] to use the material by Marylou and Liz to support their business in achieving international designs and international flair.’