By Steve Miller

Last year, the biggest concern for many consumers purchasing appliances was what color or features to choose. This year many are worried about being able to afford a home to keep them in.

As home sales have ebbed and credit has been harder to come by, appliance makers are facing a challenging year. Kitchen appliance shipments in March slid 10.5% to 3.97 million units, per the Assn.of Home Appliance Manufacturers, Washington. Overall shipments for the first quarter dropped 12.1%.

And in a positive sign for the environment, but an ominous one for manufacturers, more consumers are holding onto their dishwashers and refrigerators, said Peter Rogovin, managing director of Nextlevel SMG, New York, a brand strategy consulting firm, who has advised in the appliance industry. That could prove problematic for LG. The Korean brand launched a campaign in December from BrandBuzz, New York, urging consumers to "trade up" their current appliances for some shiny new ones, whether they were needed or not.

"That campaign came along, and then the housing market really collapsed," Rogovin said. "Now it's a very different equation."

General Electric, meanwhile, is looking to dump its century-old appliance unit for a price tag as high as $8 billion.

One Energized Category
The appliance category has gone green, but it's not tree huggers fueling the move, it's Joe Lunchpail looking to save some cash. When asked to rate factors that would most influence a purchase decision, 72% of consumers named energy-efficient features, including appliances, per a recent survey by the National Assn. of Home Builders, Washington.

"Even as the economy falters, one trend that might continue to keep sales above water is the idea of green energy-saving," said Mark Delaney, director of the home industry sector at NPD Group, Port Washington, N.Y. "The trick is for major appliance companies to stay on message. Things like steam laundry features, and those front-load washing machines, they look good but it can be pointed out that they also save water. The retailer and the manufacturer have to point out the long-term gains."

Kenmore's Elite Ultra Wash dishwasher claims to use about half the water of its regular model. GE continues to roll out a series of energy-efficient appliances, including a line of refrigerators.

Bosch, meanwhile, came out with a TV campaign last year that asserted that its dishwashers were "not only the most energy-efficient and environmentally friendly," but also the quietest. To hammer this home, it showed a swooping owl landing on an operating dishwasher in the middle of a remote canyon.

Speed, But at What Price?
Another key selling point is speed. Want a 12-pound turkey in 42 minutes? Then TurboChef has the stove for you. The high speed-cooking ovens, commonly found at your local Subway, are coming to consumer kitchens.

The ovens "have the potential to change home cooking," Rogovin said. "If it can be shown to help the quality of life for very busy people, it can resonate."

One barrier is the $7,000 price tag. To get the word out, the company recently inked three-year deals with Martha Stewart and Emeril Lagasse. The two will "appear in a very targeted way with a variety of media," said Steve Bashara, chief branding office at TurboChef, Atlanta. The stove also will have placement on Stewart's show.

RETURN TO CATEGORY LIST