Retail Observer

RETAILOBSERVER.COM OCTOBER 2019 54 A fter nearly two decades of fits and starts – including an early attempt at integrating with electric utilities in pursuit of energy efficiency – smart appliances have finally attained critical mass. Nearly every manufacturer now offers connected features in at least some, if not most of their product lines, allowing tech-savvy consumers to set oven controls by scanning a food package bar code, peruse their refrigerator shelves from the supermarket to see what else they need to buy, automatically reorder laundry detergent when levels run low, and receive alerts from their washers when the laundry is done. But despite these new 21 st century marvels, merchants hold mixed opinions on whether consumers and retailers are ready for these advanced appliances. "Dealers still consider it somewhat gimmicky," said Chad Evans, merchandising GM for the AVB family of buying groups. "Consumers are not really asking for it at this point, and it's not being presented as a major selling feature, like a new finish or a linear compressor." Moreover, the injection of new technology into white goods, which moves them beyond their traditional functions of cooking meals, cleaning clothing and dishes, and keeping food fresh, necessitates a whole new skill set for dealers who are already struggling to keep up with the demands of traditional servicing. "Dealers are concerned about getting the appliance to connect," Evans said. "They're no longer selling a solution – they now have to be an expert on connectivity and risk customer frustration." Mark Pardini, a veteran officer of the BrandSource buying group and principal of Pardini Appliance in Ukiah, Calif., agreed. "From a technical standpoint [the business] is becoming more complicated," he said at BrandSource's recent fall Convention in Dallas. "I think you're going to have to have more quality personnel working for you – you can't just have somebody off the street." "There's a lot of training involved," he added, "a lot of technical assistance the consumer is going to need, whether it be Bluetooth or just operating the appliance. It's complicated because now when people buy an appliance, they're buying a computer that just happens to wash their dishes or keep food cold or clean their clothes. But they're buying a computer." Not surprisingly, manufacturers have a somewhat different take on the burgeoning category. During a Whirlpool brand product training at the BrandSource Convention, representatives stressed that connected capabilities provide a way to future-proof customers' purchases. Their argument: fluid over-the-air software updates will ensure that the smart appliance the customer buys today will continue to get better over time. Dealers were also urged to keep their floor models connected to the Internet in order to highlight features and other digital benefits, such as remote diagnostics to reduce service calls, and such "purposeful innovations" as meal suggestions, food prep guidance and automatic oven settings based on a scan of foodstuffs on hand, all stemming from Whirlpool's 2017 purchase of online recipe bank Yummly. "It was a good meeting," said BrandSource member John Gunnip of Spenard Builders Supply, a 22-store home improvement chain based in Anchorage, Alaska. "I got a chance to learn more about smart appliances. I haven't done a lot with them yet, but younger-generation customers are coming in asking for them." That emerging next-gen demand isn't lost on vendors, who view connected appliances as both the future and the present as well, said AVB's Evans. "They see smart features associated with step-up products that can be set apart from other models. They're looking to get more traction and push the agenda, and everyone is trying to figure out a way to sell the concept easily and effectively." Manufacturers may find their white-goods white knight in the guise of 5G mobile technology, which is potentially 50 times faster than the current 4G standard and boasts significantly reduced latency. "All appliances will become Internet hubs," predicted John White, AVB's chief technology officer, bathing homes in always-on, blink-of-an-eye connectivity. But, in the meantime, "Not many consumers are using smart features," he told attendees at a BrandSource Convention seminar. "They have no real-world benefit today." Evans concurred. "Realistically, what does it do?" he asked. "Tell you how much time is left in the dry cycle? Until it physically moves laundry from the washer to the dryer, kind of like 'The Jetsons' lifestyle, I'm not sure how much value it offers." Alan Wolf Appliance Trends Alan Wolf , Content Specialist — AVB | BRANDSOURCE RO SMART APPLIANCES: ARE WE THERE YET?

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