Ilve slashes prices to reposition itself lower in the market

Published on Tue, 28/08/2012, 02:45:12

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Eurolinx, the Australian supplier of Ilve appliances, has today announced a reduction in prices across its kitchen range.

UPDATE: Eurolinx has replied to Current.com.au's request for more details and objected to the headline of this story. Read Eurolinx's response here.

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The release reads:

“Ilve Appliances have reduced the prices of a range of their designer built-in ovens across Australia. This allows the brand to connect with a wider range of consumers and play a greater competitive role in the market.

“The re-pricing of Ilve’s built-in ovens has received a positive response from retailers Australia-wide.

“The price reduction in our products has allowed our retailers to now specify Ilve products in new situations where previously they may have been price prohibitive.

“Retailers are able to sell Ilve products for a more competitive price point, and therefore promote a stronger interest in the Ilve brand, and sell more within their stores. We are playing more with the competitors in the industry this way.

“Having realised there was a gap in the market for premium cooking brands and products, by repositioning those products we have enabled our retailers across Australia to re-introduce Ilve built-in products.”

“The changes also allow Ilve to take a stronger competitive approach within the marketplace. Showing strategic intent, Ilve have recognised where they want to drive the direction of the brand and compete with a broader range of other brands in the market.”
 




The reality is that Ilve holds an extremely tiny portion of the built in market. So small in fact (check the latest GFK figures), it is almost pointless having an offering at all. Therefore, in order to move more product, Eurolinx had no real option but to reposition the pricing to a point where their offering now more closely resembles the offering by brands perceived in the market as their direct competition. To do nothing would have simply continued the status quo of selling the tiniest of quantity into stores and thereby consumers. Clearly it will have an effect on Eurolinx's margin, but they will now move more product. If that is their strategy (which appears to be the case), then they will at least improve on their currect run rate.
Posted by Paul. 28/08/2012 06:11:24 PM
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