At Elkjøp’s training fair Campus Home, Christine Hundsnes and Christian Nævdal, category director and sales director at Elkjøp Nordic respectively, point to robotic lawnmowers as one of the most exciting categories in the market. At the same time, the company is seeing growth in everything from robot vacuum cleaners and beauty products to electric scooters and wet cleaning.
– Robotic lawnmowers took off last year, and they are taking off even more this year. There is fierce competition, with more products and brands competing for the same customer, but we are seeing the market explode. We can already see that in our figures, says Nævdal when we meet him at the end of May.
When we speak to him in August before the publication of this article, he can report solid sales over the summer.
Annonse
– To put it into perspective: last year we sold nine times as many robotic lawnmowers as the year before, and we expect further growth this year, says Hundsnes.
Out into the garden
Nævdal believes the electrical retail trade has a good starting point for succeeding with robotic lawnmowers and other technology products for the garden.
Christian Nævdal with the Clean Go 100 Mini handheld vacuum cleaner, from Elkjøp's own brand Apt. Photo: Stian Sønsteng
– A lot of it is linked to the technology. Consumers are used to buying smart products from us. When the same brands move into the garden, it feels natural that we know more about the technology than the builders’ merchant trade, Nævdal tells the trade magazine Elektronikkbransjen.
Annonse
He says that Elkjøp had previously tried the category without fully succeeding.
– We tried robotic lawnmowers a few years ago without success, but product development has made it natural for customers to come to us. That is why we are investing more, says Nævdal.
At the same time, he points to a practical challenge.
– The products are large and the season is short, while DIY retail has larger floor space and dedicated seasonal areas. We fight for every centimetre in the store, but we turn things around and adapt, says Nævdal.
The robots continue
Robot growth does not stop at the edge of the lawn. Indoors too, development is continuing at high speed.
Annonse
– We have been waiting for a slowdown in the robot vacuum cleaner market, but it is not happening. People are upgrading, buying for different floors and holiday homes, and moving from simple to fully automatic models. The development is fantastic, says Hundsnes.
She points out that customers are increasingly choosing models that both wash, dry and handle more of the cleaning automatically.
– In the Christmas sales period, from Black Week and through Christmas, we sold 52,000 robot vacuum cleaners, says Nævdal.
Gandalf Distribution’s Stefan Sjöö (left) and Gabriel Svensson show electric scooters from Navee. Photo: Stian Sønsteng
Legal e-scooters
At the same time as robot products are growing strongly, Elkjøp is still seeing strong demand for e-scooters.
– This category has gone from seasonal to year-round in our stores. Interest extends across the whole country and throughout the year, says Nævdal.
E-scooters are a category where Elkjøp places great emphasis on regulations and safety.
– The market is still developing. Our approach is to offer only legal products, and many people are not aware of the limitations that apply. A lot is being sold that does not comply with laws and regulations, says Hundsnes.
– Parents need to know that third-party liability insurance is mandatory. If you have an unapproved e-scooter and think you are insured, the insurance does not apply if something happens. That is why it is extremely important for us to follow local regulations and inform customers about the insurance requirement, says Nævdal.
– We operate in four countries, and the rules vary. Speed limits and battery capacity are typical differences. The season is also longer in Denmark than in Norway, says Hundsnes.
Christine Hundsnes with some of the beauty products from Elkjøp's own brand Re. Photo: Stian Sønsteng
Beauty is growing
On the small domestic appliances side, Elkjøp is also seeing strong growth in personal care.
– Grooming is more or less flat this year. At the same time, beauty, which includes skincare, make-up mirrors and facial treatments, has seen enormous growth, albeit from a low base, says Hundsnes.
She particularly highlights developments in hair care.
– Hair care is increasingly dominated by premium brands such as Dyson. We are seeing the same journey as across the entire small domestic appliances segment: multifunctional products with multiple attachments. Demand is driven by social media and a younger generation, says Hundsnes.
LED masks are another category that has got off to a good start.
– These products have had a better start in Norway than in the other countries. Whether this is due to a faster rollout in stores or more active marketing from suppliers is difficult to say, says Hundsnes.
– Suppliers have been clear in their launch strategies and influence sales through marketing. Over time, we will see whether the differences between countries even out, says Nævdal.
Coffee and ice cream
Coffee continues to be one of the biggest categories within small domestic appliances.
– Coffee makers are still going strong, while capsule and espresso machines are providing competition. Consumption has changed. Coffee is lifestyle, identity and trend, influenced by social media. Iced coffee is driving developments, and the product category is performing very well, says Nævdal.
Hundsnes highlights ice cream makers as one of last year’s big surprises.
– Ice cream makers saw fantastic growth last year. A new player made it easier for consumers and worked heavily with social media, which attracts younger customers. It is often the children who say, «we have to buy this». Now we are also seeing slush and soft-serve machines coming in. It is about supplier dynamics and who invests and drives sales, says Hundsnes.
Next growth area
Wet cleaning is the category Nævdal believes could become the next major growth engine.
– Innovation is high, and the market must partly be created. Many people do not know the need exists. Philips OneUp is a fantastic product that replaces the bucket and mop and does everything in one. We have only seen the beginning of what wet cleaning can become, says Nævdal.
– How do you show the benefits of such products?
– We would very much like to have live demo areas in store, but it quickly becomes messy and not very inviting. That is why we have to work with good product videos, online content and promoters from time to time. If consumers saw the same as our salespeople see at Campus Home, their eyes would be wide and their wallets easily opened, says Nævdal.
– “Seeing is believing” also applies internally. Training arenas like these make salespeople more confident about product benefits and regulations, whether it is electric scooters, robotic mowers or wet cleaning. That is critical for the customer experience, says Nævdal.
