Retail Observer

RETAILOBSERVER.COM NOVEMBER 2023 50 B randSource is continuing to make the luxury appliance space a top priority and announced several initiatives at the group's recent Convention 2023 in Nashville to help members capture more of the high-end market. To fully leverage the segment's opportunities, BrandSource developed a dedicated LUXE initiative and has expanded its strategic vendor partnerships to include over 40 premium and super-premium brands, including Dacor, Fisher & Paykel, Forno, JennAir, Miele, Monogram, Signature Kitchen Suite (SKS), Thermador, Thor, and Zline. Many of these manufacturers were at the Nashville show to discuss their products and the opportunities they offer with the AVB Brandsource members. The push toward luxury appliance is reflected in the group's 330% increase in ultra-premium catalog listings in the last year-and-a-half. It has helped make BrandSource a dominant player in the high-margin category. As AVB COO Dave Meekings noted in his keynote presentation, "We are now the dominant player in the luxury space. We have the best tools in the industry, like HUP, KIOSQ, and our state-of-the-art websites that target and capture the luxury customer. No other platform offers all the tools necessary to drive the sophisticated sales process that luxury sales require. On top of that, we have dramatically increased our luxury catalog. It is truly a game changer." Also driving AVB's luxe ascendancy are its retail financing, vendor discounts, and range of other retail technology tools such as SYNC that provide the upscale purchase experience and sophisticated service levels high-end shoppers expect. As part of the LUXE initiative, a panel of premium vendors was assembled at Convention to advise those dealers already in the luxury space as well as those considering a foray into the category. Panelists included Monogram's Julie Burns, Arvind Veershetty of Jenn-Air, Dacor's Geraldine Morrison, ZLine's Brant Coyne, Mike O'Keefe of Signature Kitchen Suite, and Chris Kaeser of BSH. Chad Evans, AVB's vice president of merchandising, moderated the session and posed questions ranging from from where the luxury market is headed to why it might make sense to enter that business. There was a consensus among the panelists that offering even a small package of luxury appliances elevates the entire customer experience of shopping in your store. In addition, super-premium appliances deliver higher margins to retailers, and the customers who buy them are typically less impacted by the inflationary constraints of today's marketplace. There was also an insightful discussion regarding a potential shift away from gas cooking due to government regulations, and the impact it would have and the opportunities it might present, such as increased interest in induction cooking. There was also talk of popular trends in the industry, including colors and finishes. "We were excited to assemble some of top executives from a great cross-section of vendors," Evans said. "We are also working diligently to add new features and content to the online catalogs for luxury brands to leverage our marketing prowess." He noted that AVB will be running several "test-and-learn" marketing campaigns over the next several months to help drive brand and category awareness. Evans added that Convention 2023 was a great place to make connections for those considering the luxury segment. "Given the fact that some luxury brands are being very stringent in their dealer distribution strategies, sessions like these open up a host of alternative opportunities with some lesser-known yet up-and-coming brands to develop relationships and ultimately expand your luxury reach." AVB PUSHES DEEPER INTO THE LUXURY SPACE BrandSource's LUXE initiative was a hit in Nashville Andy Kriege Appliance Trends Andy Kriege is General Manager of Communications at AVB BrandSource, the nation's largest merchandising and marketing co-op for independent appliance, mattress, furniture, and CE dealers. RO Forno is one of more than 40 premium brands comprising BrandSource's LUXE contingent.

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