Retail Observer

RETAILOBSERVER.COM SEPTEMBER 2016 64 A S S O C I A T I O N N E W S T he opportunity to gain insights on retail trends, connectivity, customer demographics and product reviews drew hundreds of professionals from leading home appliance manufacturers to Digital Destinations: AHAM's 2016 annual member meeting in Naples, FL. PIRCH CEO Jeffrey Sears drew on more than three decades of retail and executive experience to walk meeting attendees through the story of his founding of PIRCH and the role appliances play in daily life. "You don't make a washer and dryer," he said. "You make the caretaker of your child's first blanket." Manufacturers, he said, should strive to create a memorable customer experience and celebrate their products' role in their customers' lives. Ever wonder why products receive positive or negative reviews? David Kender, senior vice president of editorial for leading review site Reviewed.com, offered some possible reasons. "You have to nail the setup experience," he said. "It has to work from the moment you take the product out of the box. The first couple of hours are absolutely critical for how it will be perceived by journalists." He sees a bright future for connected appliances. "We're so excited to see what you can do," he said. "We want this thing called the smart home to work." As connectivity continues to emerge, the value it adds to appliances is what will drive consumers to buy. Connectivity also presents new opportunities for manufacturers and retailers to capture value, said Kabir Ahuja, a partner at McKinsey and Company who has led extensive research on the smart home. "Be fearless in your pursuit of alternate business models," Ahuja urged Digital Destinations attendees. "There's a whole bunch of economic value that's going to be generated. Does it go to consumers as a surplus, or to retailers and manufacturers?" That added value could come through innovative service models, improvements in user experience, or an overall sense that connectivity has made the appliance better. Manufacturers shared their insights on a panel focusing on connectivity. Participating were Cyril Brignone, CEO of Arrayent, Nate Cho, connectivity program manager for Electrolux, Eric Forti, business development manager for Jarden Consumer Solutions, and Manas Mehandru, UL's business development manager for appliances, HVAC and lighting. And while retailers and manufacturers may be tempted to market connected appliances to younger consumers, they should keep in mind that younger consumers may not be willing to spend on higher- end models, noted demographer and economist David K. Foot told attendees. Young adults who are starting families, he said, tend to opt for lower-priced refrigerators and freezers and upgrade when they're about 50. That's also the age when people tend to have more time to cook, leading them to buy higher-end stoves and ovens. "The older people spend more money, because they've got the money," Foot said. AHAM's annual member meeting is the home appliance industry's premier opportunity for networking and knowledge. AHAM's 2017 annual meeting will take place April 30-May 1 in Washington DC. AHAM'S 2016 ANNUAL M EM BER M EETING Insights and Innovation RO

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