Harvey Norman & Italian Espresso machines

Lwowiak

I have mentioned this once before, but I can still see the signs. If the BES900 continues to sell well for them, I believe we will be seeing some Italian (or European) bling on the shelves soon. The volume of coffee machines sold by HN would make some of the specialist retailers green with envy. Yes, the smart-ass-one-liner-know-it-all-small-wanna-be-retailer will always pat themselves on the back and say how a bench tested machine from them is the best in the world. But... business is business and Gerry knows how to make a buck. It will of course be offered with the obligatory extended warranty plan.
I am curious to see which manufacturer [NOT importer] will come on board and make it happen. In reality, you cannot wish for a better distribution system for your product. As long as a network of service agents can be sourced, it would be viable. They just need to be able to properly demo the machines. The scenario is being assessed and I have heard whispers from old colleagues who are now in very senior positions.
I went for a wonder through the Bundall store this afternoon, and the changes in the store layout and product offerings signify the change of direction being taken. I like HN, their product offerings, and their concept, but have always found some of their salespeople a bit irritating. Overall I still prefer them [and Domayne] over DJ and Myers.
I had a very pleasant surprise when I checked out the Breville machine and the Smart Grinder ($188). A delicious coffee aroma was emanating from somewhere. Upon closer inspection I found FRESH COFFEE beans.
With a roasted on date [22/11/2012] and very clear instructions on the packet that they were fresh and should be consumed within three weeks.
The brand was Cre8tive and was $31.77kg.
The usual Golden bean award was on the packet [1kg], so the beans must be good
If they have taken the step of selling freshly roasted coffee beans, what next??

UNM

interesting. re: 'extended warranty' - a cast iron absolutely 100% guaranteed way for retailer to earn money.  Unless of course the salesperson cocks up the data entry.

Brett H

Like all retailers their share priceand ROE is hurting.  I think you might be onto something.  If the money is going to the pointy end then that's where HN will go.  The only thing will be that HN won't be interested on unreliable supply chains.  That may be the weak link in the argument.

Lacehim

on 1353712594:

The only thing will be that HN won't be interested on unreliable supply chains.  That may be the weak link in the argument.

They might not be all that happy when the Italian's take a long break and then take more to get back into the swing of things.  It seems to be the way they do things over there. Personally I can't see HN Selling Italian machines.  Chinese made to look like Italian Machines, now I can see that.  More profit in it for HN!

Lwowiak

on 1353714343:

Personally I can't see HN Selling Italian machines.  Chinese made to look like Italian Machines, now I can see that.  More profit in it for HN!

I disagree. Have a good look in their stores. The amount of quality European  products they now sell is amazing. Ovens, fridges, cooktops etc. How many retailers sell Gaggenau? HN has connections in Europe. Their market is based on selling quality brands not cheap Chinese brands like other retailers. Look at their range of TV's, mostly high end. Manufacturing in China is not as cheap as it was many years ago. Eastern  Europe has had enormous capital invested into it, with many factories relocating there from Italy, France, Spain etc.

Kelsey

Maybe Reiss should get in touch...

Ol Grumpy

Noooooooooooooo.... :bespoke pls

Lacehim

on 1353716531:

Eastern  Europe has had enormous capital invested into it, with many factories relocating there from Italy, France, Spain etc.

China, eastern europe who cares where, anywhere there is cheap labour. I personally wouldn't want to put down 3k on a machine at HN because they know nothing about coffee (not the standard we discuss here anyway), and all you'll be dealing with is someone reading from memorised scripts.  The support will be from some white good repair place, that also doesn't know anything about coffee. I'll be sticking with the retailers that do care, like some of the sponsors here, that dedicate themselves to good customer service before and after sale.

Kelsey

I'm with you there buddy. Poor Gerry, one more thing for him to have a cry about.

RichardM

No Italian manufacturer would want to deal with Harvey Norman. They would need to already have a massive presence in Australia, as the current consumer laws have a "it's broken, so give me my money back" feel to them, which the majors conform with. Without a decent repair channel (as is the case with the "Consumer" products), then customers could just argue it's a major failure, and get money back. Who will fund this? I guarantee not HN. It will devalue the products WAY too much.

mycuppa

IMO it's all a bit of a mute point really. There are 2 types of people that will spend > $1.5K on kit. Those that have the money and those that are infected by the coffee bug that may not necessarily have the $$, but will justify the expense as part of the ongoing upgrade elevator they are moving on. The split is most probably 1% of affluence and 99% of gritty determination to achieve better results in the coffee cup. In all cases, research will be done - just like buying another car, house or planning a big holiday - these things are not executed as spontaneous decisions. Following on from the ClickFail debacle earlier in the week (which I personally found highly amusing) buyers will do their research using a variety of tools. These days, less of the research quota is fulfilled by the in-shop service - much to the angst reported by the press who have their own high-margin businesses to protect (yet another conspiracy). However, there is nothing that the web can do to create the sensation of seeing, touching and using a product. So, if the white-box movers decide to range high-end kit and whether or not they can provide value-add services, it really does not matter at all. For all the pros and cons about pre and post sales support - people buy when they can realize value - which is a different equation for everyone. These days, it's more likely a game of price comparison and a secondary concern is advice and support, although that is sometimes the emotion we get caught up in that confuses purchasing decisions as we flip and flop price versus long-term value from support. As a retailer, I have considerable insights into the "typical, contemporary Ozzie buyer" - I won't share all my thoughts but I will say that price is king - full service is assumed as included (and then some more) so all the talk about retail and declining standard of service support is just a big smoke screen.

mycuppa

on 1353728867:

No Italian manufacturer would want to deal with Harvey Norman. They would need to already have a massive presence in Australia, as the current consumer laws have a "it's broken, so give me my money back" feel to them, which the majors conform with. Without a decent repair channel (as is the case with the "Consumer" products), then customers could just argue it's a major failure, and get money back. Who will fund this? I guarantee not HN. It will devalue the products WAY too much.

Well put RM - generally speaking, Italians are not necessarily concerned about mammoth sausage-factory production figures and they will fully expect a local agent to gear-up with spares and expertise. Although having said that, I am aware that Europe's rapid decline at the hands of Chinese manufacturing has created some massive production surplus capacity across just about every type of industry. As an example, it is possible to have high-quality, complex welded products made by skilled and experienced European trades at almost the same price point as China after you factor in risk allowances - such is the supply/demand situation in some European countries - they are working well below cost just to keep workers and systems running in the hope things will improve in the future.

Kelsey

Admirable. Once those skills and tools are lost to a country, they're generally lost forever. Or at least very hard to re-acquire.

Brett H

on 1353732060:

Admirable. Once those skills and tools are lost to a country, they're generally lost forever. Or at least very hard to re-acquire.

Absolutely!  Now let's stop and think about all those Public Service jobs in Queensland that have been terminated... I'm talking Engineers, scientists, health workers.... You may just get a very, very qualified opinion from the Harvey Staff.

Kelsey

Or losing our largest cotton farm to overseas interests.

Jonty

on 1353741175:

Or losing our largest cotton farm to overseas interests.

Cotton does not have a place in Australia, along with rice fields.... It is marginal land & sucks our water resources.  Time to adapt and get into new crops that will work on marginal land! DPI, just had mate call in and told me 4 people I use to work with took packages this week.  100 + yrs of knowledge gone...  These were plant breeders, scientists and agronomists... Back on topic, you pay for what you get and I think Jeff summed it up well in regards to less than 1.5K and greater than 1.5K kits.......  I was one of those less than $500 kits and then went all out after 5yrs of drinking what I thought was nice Grinders House Blend  ::)   Now I've just raised the bar a tad  :P

Kelsey

Agreed, I'm on the phone so not inclined to get in depth, but the addendum to the previous post was the the purchase is more about control of water.