China's irrelevant and there's no price erosion in smalls: Sunbeam CEO

Published on Tue, 02/06/2009, 11:39:51

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Exclusive by Patrick Avenell

SYDNEY: Contrary to popular belief, and in direct opposition to former employee David Gilmore, Sunbeam CEO David Jackson has gone on record saying there’s no price erosion in the small appliance category.

Furthermore, Jackson dismissed Gilmore’s comments about cheap Chinese imports, saying it’s had no noticeable effect.

“I can’t comment on any price erosion at a retail level within the category, because I really don’t believe there is one, at least from a Sunbeam perspective,” said Jackson.

This remarkable revelation, which goes against not only Glem’s David Gilmore, but also Panasonic managing director Steve Rust, is contrary to the widespread perception that smalls are in a constant battle to hold up prices. Jackson, however, is happy to swim against the tide.

“I can only talk on the Sunbeam perspective: we make sure [to] maintain a consistent and stable market platform, which includes consistent and stable pricing and being fair to everyone.”

In addition to this, Jackson said that Sunbeam invests heavily in its branding, television campaigns and events promotion.

“All of those things that you do to invest in your brand, and your product, and your business, all helps to provide a [more] stable price environment, as stable a retail environment as you can get,” he said.

When asked directly about the recent claim that cheap Chinese imports are destructive eroding prices in the smalls categories, Jackson deflected this issue, saying it was just an everyday problem.

“There [are] direct imports, in any product category, whether it’s brooms or brushes, it’s the same thing, so I don’t think it’s any greater or less than any other product category in this country.

“Everywhere you go, whether it’s clothes, underwear, there are non-branded products that retailers sell to pull customers inside the door.”

Lastly, Jackson reported that business was going well at Sunbeam, and that the team was already well into its planning for the Christmas period.

“Business is good, we’re tracking along well, very happy with things,” he said.

Do you agree with David Jackson? Or do think there is price erosion in smalls? Send me an email.








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