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Soapbox: The rental industry - how do we move forward in difficult trading times?
Steve Macdonald, marketing director of Hoover Candy shares his views on the growing rental market in the UK and how it could impact the industry:
In this recession driven economy where the consumer is King, retailers and manufacturers of high value products need to look at the key drivers in the marketplace to guarantee the success of the future.
"It goes without saying that no matter what the government says, we are still in the grips of a recession driven economy and as the consumer has learnt to live within a more frugal economy, consumers are also asking themselves with every product purchase, no matter how large or small; 'do I really need it?'
We have seen this across all sectors, but appliances are still in an area where the consumer is proving prudent.
The market is changing - the cheap and chic consumer is becoming more polarised from the aspirational high end purchaser; with the middle market a very competitive playing field.
But is there another way we can look at the market - and perhaps look to the past to gain lessons for the future?
Recent statistics (source: Your Property Network August 2010) indicate that tenant demand in the UK continues to grow. The Chartered Institute of Housing issued a report which states that more and more people are looking to rent rather than to buy in the short to medium term. The Paragon Group's second quarter 2010 report also tells us that three times as many landlords say that tenant demand is rising. As marketers of white goods, do we need to respond to this change by offering the consumer a solution that is relevant to their lifestyle choice - but also importantly responds to the disposable trend - where consumers want to be able to replace and upgrade more frequently than ever?
In our consumer-driven society where the perception is that if something goes wrong, there's no sense repairing it when the replacement cost is not that much higher, do we need to look at adding another solution to our offerings.
T: 0151 334 2781
29th July 2011