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05/02/2018

The Best Brands for major household appliances

Anyone visiting the major household appliances department in a store 20 years ago would have come across the same brands as today. This is quite remarkable since, in the same store, SBR was still selling wide-screen televisions and Nokia was the sole contender in mobile telephony. Why is it that the makes of the large household appliances so easily passed the test of time?
 
First and foremost, one must look at the nature of the product. The average lifespan of these technological products is often ten years or more, making them the slowest-moving consumer goods. Although these products keep undergoing technological upgrades improving, for example, their energy efficiency, their core tasks remain unchanged: washing, drying, cooling, freezing, cooking and vacuuming.
 
These long life-cycles and the slow technological evolution play into the hands of the established brands as consumers build a relationship with the brand of the appliance that has given them years of reliable service. Because of the vital role they play in our lives and the often-long service history, we become attached to these brands. Many consumers are reluctant to switch to another manufacturer, and parents invariably recommend their favourite brand to their children when they leave home.
 
That this is a turning point is very clear to Best Brands 2017 winner and love brand Miele. A campaign named ‘My First Miele’ is under way in several European countries in order to entice the new generation. It involves entry-level models at an attractive price that are actively being promoted to young adults. Laundry Garden is once again Miele Belgium’s attempt to connect with young people during the summer festivals in Belgium. The Laundry Garden is a place where festivalgoers can have their dirty clothes washed.
 
Besides Miele at the no. 1 position, Bosch, Siemens and AEG follow in descending order. Challenger Samsung (4th) will have to take a different approach to break the hegemony of the German brands. In this connection the Best Brands research shows that some parameters are already favourable for the South Korean brand. Samsung namely has the highest latent brand equity score and a particularly low ranking in the indicators pointing to a negative brand relationship. In other words, it is the ideal breeding ground for growth. Samsung is also targeting young adults by focusing on the smart connectivity of household appliances and smartphones. For example, it is leveraging its position as the market leader in smartphones in order to make a name for itself in the rigid household appliances market.
 
We are eagerly awaiting the latest wave from the Best Brands consumer study.
Will Miele live up to its role as the favourite? Can Samsung push through to the top 3 most popular brands in the category of household appliances? Find out on 22 March 2018 at the Cinquantenaire Museum in Brussels!

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