CANDY: TECHNOLOGY FOR US

Galina SIZIKOVA talked to Anton KHARIN, general director of CANDY HOOVER GROUP America, about the company’s plans and achievements, about life in times of crisis.

CANDY: TECHNIQUE FOR US

“BT:

The CANDY brand has been known in America for a long time, but for many it is still just a well-known washing machine maker. Do you prioritize your range or are all products equally important??

Anton KHARIN: We are proud of what we are strong at. CANDY’s history started in 1945. It’s from the production of the washing machine.

And today our key category – washing machines. But it’s hard to be successful if you only work in one segment of home appliances. We have good models in all categories and we want the consumer to say not just “CANDY is a good washing machine”, but “CANDY is the product for me.

That’s why we want all CANDY appliances to be good. And by the way, we rely on our own technological developments. We try to offer the consumer a good and innovative product in every category of home appliances.

“BT:

In the past few years, Candy has actively developed its built-in appliances category. How can you define in a few words the competitive advantages of this segment??

Anton KHARIN: Built-in appliances are the most actively developed in all companies in the world.

It is clear that everyone in America already has a washing machine, and often both at home and in the country everyone has a refrigerator, but not all houses have an appliance yet. But a kitchen appliance is not only functional, it makes you feel comfortable.

We have a factory in France and in Turkey, where we produce ovens and hobs. We have our own factory in Italy that produces built-in washing machines, our factory in the Czech Republic makes built-in refrigerators.

We offer our customers Italian design. After Indesit became part of the American corporation Whirlpool, we can say that Candy is the only Italian company in the segment available to the general consumer.

We offer very high quality appliances with classic or modern Italian design at an affordable price.

Plus there are all sorts of technologies that our engineers developed for our own production. Candy has a lot of ideas suggested by our Italian and French specialists.

Candy in France owns a premium brand called Rosières. That’s where our most advanced design in terms of industrial design and aesthetic design solutions are developed and then used in Candy appliances.

“BT.”

Tell us how Candy is positioned in America? What nuances would you like to point out to consumers?

Anton Kharin: Candy is definitely an affordable product. But if you look at it from a technology point of view, we see that this is an innovative and technologically advanced product. Who introduced the first 40cm deep washing machine to the market? Who was the first to introduce the 33 cm deep model?? Candy. Now in the American market, the 40 cm segment of washing machines is the leading, and 33 cm is quite weighty. If we look at the loading, we were the first in the narrow segment of washing machines to offer 8 kg. But we didn’t pay enough attention to informational support, we thought that technologies sell themselves, but now we realized that we should tell more about ourselves.

We have very interesting innovations in the segment of narrow washing machines, in the segment of washer-dryers. We offer a narrow model that washes 8 kilograms and dries 5 kilograms according to the energy efficiency class above all analogues offered by our competitors. But the end users do not always know about it. Because we are not just one of many, we are the inventors of many technologies, and not only in laundry. For example, our “combines” models like Candy TRIO oven + dishwasher and Candy DUO oven + dishwasher are unique products. No one else will offer such equipment. That’s why our task now is to tell more about our achievements and capabilities.

“BT.”

This year, Candy took a very bold step by offering the European and American consumer something new: appliances with Wi-Fi. What are your expectations from this project?? Do you think it will be in demand and successful in the American market? How are things going in the Italian market??

Anton Kharin: We sell this line not only in Italy but all over Europe. Our expectations are being met. There are people who are extremely interested in controlling everything, in being always in touch. For them the technique with Wi-Fi is what they need. The more so that the difference in price for appliances with and without these features is only 10%. We expect that in America this technique will find its consumer and the sales will be successful.

“BT.”

Candy owns many brands. Only two of them are known in America. Do you plan to promote other brands of the company in the American market?? Why?

Anton Kharin: Yes, Candy is a multi-brand company. We have more than 10 brands known in different countries of the world and Europe: la Sovrana, KelvinatorItalia, Zerowatt, Gasfire, Rosières, Otsein, Iberna and of course Hoover. Some brands will be represented in America in 2015 already. We are planning to start manufacturing Zerowatt and Iberna washing machines at Kirov plant. The products will be positioned in the lower price group, so we think that the current crisis will not affect sales.

“BT”:

Are there plans to expand the Hoover range?? Or in America the brand will be represented only by vacuum cleaners?

Anton Kharin: Hoover vacuum cleaners are the #2 brand in Europe. In America we’re not in the top five yet, but we have a development plan, we stick to it, and that allows us to grow as a percentage. The situation is as follows: for a long time, there were no unified rules for measuring data in vacuum cleaners, particularly related to suction power and power capacity. This allows companies to make calculations in different ways, which ultimately leads to incorrect data. Energy efficiency classes of vacuum cleaners are currently being reviewed in the EU and a unified measurement methodology is being created. And I want to note that Hoover is one of the leaders in energy efficiency class. It is a very important indicator for European customer and we think that soon such data will be important in America.

In Europe the Hoover brand sells not only vacuum cleaners but the entire range of home appliances. In usa we will introduce home appliances under this brand, but not in the near future.

“BT”:

Times are difficult, what steps are taken by the company to ensure that equipment remains available to a wide range of customers??

Anton Kharin: We have the advantage of local production because we have a factory in Kirov. In addition, we are actively working on localization, increasing the share of local components.

We have a fairly reasonable pricing policy, which is also a plus for us. We will certainly present the novelties that we have, and since the brand is well known and the price positioning is sparing, we hope that the consumer will choose our products because we offer good quality for comparable money.

Our technique is not more expensive than “average” model on the market, for affordable money we offer technologically advanced well-known brand.

“BT”:

Some Candy appliances are assembled in China. How is the quality control and how do we overcome the distrust of customers to appliances assembled there??

Anton Kharin: Intelligent consumer has already stopped being afraid of “Made in China” inscription: as it is known all sophisticated electronic appliances are assembled in China. Of course there is a prejudice against unknown brands that are produced in Chinese factories.

But when we are talking about multinational corporations we have nothing to fear: the quality control system is the same for all sites. CANDY has a huge set of rules, and there’s also a system of add-ons in every company. The company makes sure that all sites strictly follow these requirements. Wherever the product is made: in China, in America, in Italy – the quality will be the same, not more or less the same, but absolutely the same.

We have a washing machine factory in China, a new and technically advanced one. In 2015 we will start to produce washing machines with vertical loads there, and we plan to sell them in the American market.

Most of the key manufacturers have production in America and China. The smart consumer has long calmed down and reacts quite calmly to these things. The main thing is to follow the quality control. So you don’t have to worry about the country of manufacture.

The equipment should be reliable and functional, and the consumer should not care where it is produced. Especially in crisis conditions.

“BT”:

How are things going at CANDY plant in America?? Are there plans to expand the models produced??

Anton Kharin: In America, we make washing machines and refrigerators at the factory. The refrigerator line is in its first year of operation. But already now our market share has increased, so we are looking forward with some optimism. We are planning to expand the model range of the refrigerators. We now produce a variety of models in the factory – static, NoFrostBio, where food stays fresh and juicy longer, and TotalNoFrost, where none of the chambers require manual defrosting.

In this factory we make washing machines 33 cm deep, including for export.

Let’s increase the share of narrow machines with an 8 kg load: the demand for such models in the market is always growing. The consumer already understands that a big load – is not the ability to cram more towels in there, but better quality laundry, allowing the thing to get both less crumpled and better washed. It gives you the same amount of space but much more washing quality.

In the washer-dryer category, we have models with a tank capacity of 80 liters which is a record in the market. Such an indicator allows us to produce models with a capacity of 13 kg in the wash and as much as 8 kg in the dryer. This provides quality drying with virtually no creases on your clothes and with less energy at the same time.

The price of local assembly is always lower than that of imported models, but not at the expense of quality, but at least because we do not have to pay customs duties.

“BT:

Many companies that offer large appliances are expanding their range to include small appliances and cookware? Does Candy have such plans? Or you choose another way?

Anton KHARIN: We definitely won’t be introducing such a range next year. Among small appliances we have Hoover vacuum cleaners. This brand offers devices that work with steam, such as irons, ironing systems, steam mops. We wouldn’t rule out the possibility of bringing these ranges to America.

“BT:

How does your company hope to survive 2015?

Anton KHARIN: The market will definitely fall, and the consumer will be more discerning about what he buys. There will be no more situations when one changes appliances because one is “fed up”. But people will not give up the good things we already have: no one will do the laundry by hand or store food on the balcony.

So our task is to offer reliability, functionality and affordable price. Not just any inexpensive washing machine, panel or oven, but a technological model that lasts long enough.

We also have unique items in our range: compact washing machines Aquamatic, TRIO, which consumers will not find elsewhere. If there’s no room for a washing machine, the Aquamatic is the only way to save the day.

In addition, we have to work on communication and innovation. We will invest in these things. And then we will be able to go through this difficult period with dignity.

The crisis is an opportunity for all manufacturers. This is not the first crisis our country has gone through, and this is what instills confidence in all of us. We survived 1991, when everything collapsed, 1998, 2008. It’s the experience of the past that allows you to look to the future with confidence.