Kleenmaid CEO defends "European Kitchen Studio" business model

Published on Mon, 27/02/2012, 10:55:18

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By Claire Reilly

At last week’s launch of the newly-revamped Kleenmaid brand, CEO Danny Hamilton announced the company would be adopting a “European Kitchen Studio” model for sales. Rather than distributing through traditional whitegoods and cooking appliance retailers, Kleenmaid will be sold through a selection of 21 kitchen cabinet makers and kitchen manufacture studios on the east coast.

Speaking exclusively to Current to explain the new model, Hamilton said the decision was based in part on his own experiences with the old Kleenmaid brand.

“Kleenmaid was never sold in retail stores before. It was only sold in their own stores where, what we've termed, people had the 'Kleenmaid experience'. I was a Kleenmaid customer – like many other people I lost my warranty so I had the same experience.

“But when my wife and I went into stores, they were beautiful. The sales people knew exactly what they were talking about, they were fully trained on the product.

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“If you go to traditional retail, I don’t believe that they can possibly comprehend all of the features and benefits [of a single brand] because they might have 20 or 30 brands. A man today might be selling vacuum cleaners, tomorrow he might be selling plasma TVs, the next day he might be selling a $10,000 cooking package.

“So you end up buying the cooking package from the retailer and they you go down to the cabinet maker and the cabinet maker has never fitted those appliances before, and then the cupboards don’t fit and he blames the appliance specifications, and you can’t talk to the manufacturers, so you get tangled up.

“Over in Europe, people don’t buy appliances in that way. They buy appliances through these kitchen studios. So we’re trying to bring that model to Australia. Because you don’t do this [remodel a kitchen] very often, you do it every ten years. So you can’t be an expert. And it’s a huge investment.

We will have one of our sales people who is in the [kitchen] store one day of every week, so we can train them in the kitchen appliances and how they use them. If our person is in the store every Thursday, then the cabinet maker can say to Mr and Mrs Brown ‘She’s always here on Thursday, I can make an appointment for you’ and our specialist will go in and talk to them.

Or, most of these cabinet makers have showroom consultants and designers, and we’ve trained them over the last 6 or 7 months. They all got stock in October 17, so they’ve had some time now to get their head around it. But if it’s not our person demonstrating it, it could be our culinary consultant demonstrating it, or it could be the showroom consultant demonstrating it.

The CEO of Kleenmaid, Danny Hamilton.




funny, we sold Kleenmaid in store from 1991 onwards at a retail level, it wasn't until around the year 2000 that kleenmaid went direct. so the comment about "never being sold" in retail is completely incorrect. it was the retail industry that actually gave Kleenmaid its client base and product credibility.
Posted by LEIGH. 27/02/2012 02:19:47 PM
How interesting this story, Kleenmaid only got off the ground in Australia as a Laundry supplier due to poor product profits by retailers from the then Hoover and Simpson manufacturers in Australia. Both Andrew Young and Dick England were given support by way of letters of credit by a few retailers to put a washing machine on the market which was good value, reliable to the end consumer and showed a reasonable margin to the seller. But after this was achieved they then ventured into other segments of the market that didn't need them and I think greed was then the motivation to conquer the whole kitchen appliance market.
Posted by David Emanuel. 27/02/2012 08:28:48 PM
I worked for Kleenmaid in the early days and again closer to their end as a Trainer, and the product was sold through selected retailers and from my recolection,also through cabinet makers, who I used to call on. So the concept of selling through cabinet makers is not really new, this was how Kleenmaid started. The product was always good as was the customer service, 2nd to none.
Posted by . 17/05/2012 09:20:17 AM
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