Vacuum Cleaners Discussions

Dyson has this week released details of their end of year 2009 performance and generally paints a positive picture. Highlights include:-

• Despite the recession, global sales for the company increased 23% to 770m GBP
• Operating profits more than doubled from 90m to 190m GBP
• The Dyson Air Multiplier is a top seller in Australia; within 6 weeks, representing 64% of the market for desk fans, by value.
• In the UK and US markets, the updated 'ball' range represents more than half of the Dyson cleaners sold.
• In the UK, the company has a total market share for vacuum cleaners, by value, of 40%.
• Dyson is the market leader for vacuum cleaner sales (by value) in the UK, US, Canada, Australia, France, Belgium, Spain, Switzerland, Ireland and New Zealand.

Looking ahead, the company talks about new product launches scheduled towards the end of 2010 - a fair number of which (my speculation) are likely to continue the trend of offering a completive advantage by using digital motor technology. Ironically, a technology originally developed for use in their full-size vacuums, while all current models continue to use traditional motors.

http://www.independent.co.uk/news/business/news/dyson-profits-double-thanks-to-rd-investment-1983841.html

http://www.themanufacturer.com/uk/content/10603/Dyson_cleans_up

http://www.managementtoday.co.uk/channel/Entrepreneurship/news/1006022/sales-vacuum-dyson-gadgets-cost-worth-paying/

http://www.eurekamagazine.co.uk/article/25296/Dyson-doubles-operating-profits.aspx - note: this has the statement 'The company has also confirmed plans to launch a robotic version of its bagless vacuum cleaner' - dunno if that's significant, but I haven't seen it reported elsewhere.

Thanks Venson, I take on board you views. I personally find it enjoyable, reviewing patent filings for Dyson, just like many people do with Apple, as a glimpse as what might one day be released. With proper Robotic vacuums (i.e. not sweepers) it's generally a case of speculating what the major challenges are and how they might be overcome.

I see the Dyson 'fan' regularly in the stores, but like many, the appeal of paying a high price for something that would be used so infrequently is very hard to justify. Recent Dyson patents show they have experimented with mounting heating elements to their fan, so something like that might be more practical for the cooler parts of the world. 

The previously mentioned Dyson kitchen appliances are either due a big launch in the near future, or a huge write off. There's so many patents and the designs shown are very detailed. With many expired patents and little in the way of innovation, kitchen appliances have never been more affordable. The best chance a brand has to increase margins is to offer a chic design.  

The value you place on the space saving aspect can vary hugely. I've visited houses in Orange County with huge sweeping kitchens... and yet seen new small apartments in the city here with virtually no preparation area. Dyson does need to continue to diversify to get a reasonable return of the digital  motor tech... and Dyson won't launch a product unless it can demonstrate a new way of doing things. As said, the deep irony is that they don't currently offer digital motors on any of their mains powered cleaners....

The other angle I like from a business perspective, is making these kitchen appliances linkable / interchangeable. I can't think of many products nowadays that that successfully do this ...but I do know from playing with Transformers and Micro Machines in the 80s, that if a company gets it right, it could be very lucrative for growing the brand's loyalty.

M00seUK wrote:

Two dyson products come to mind M00seUK.......contra rotating washer and waterless dish washer.  The first was pulled off the market in 2005 under the cloud of ignominous lackluster sales with the promise that it would be redesigned and launched and the latter has been discussed here by you as early as July 2007.  Still waiting on both.  Next time you decide to read and rapture about the ever growing number of patents filed by dyson you may want to keep it to yourself.  Just a thought.

Carmine D.

HSN, Home Shopping Network, has culled its inventory of dyson products with the caveat check back again products are added frequently.  I've been doing so but note that the upright selection is limited [believe it or not DC14 is still for sale at $349 yet DC 33 the latest and greatest can be purchased at a plethora of retailers for $318].  Dyson canisters and handhelds are and have been non-existent for some time now on the HSN site.  Not what I would expect during the ramping up of sales for the holiday season. 

http://home-solutions.hsn.com/dyson-floor-care-canister-handvacs_c-hw0108_a-2699-7401_xc.aspx?prev=hp!sf!7401&cm_re=department_carousel*page1_spot3_image*Dyson_Branding&ccm=HW|2699

Carmine D.

Hi Carmine,

Sears is doing them one better by supplying the DC14 online by way of an outsourced vendor for $389.99.

Venson

PS -- Happy shoppers/not so happy store employees, a local Sears will be open for Thanksgiving. Don't know if this applies to all branches as I've discovered no info one way or the other online.

My store is open on Thanksgiving, and I cannot wait for the lack of traffic on that day. Sears is a sinking ship, and is desperate for any strategy to bring in customers and sales.

iMacDaddy wrote:

Hi iMacDaddy,

Though it's changed a lot, I'd hate to see Sears go as I have very fond remembrances of it back in the day when it had everything from fishing tackle to washboards.

However, things have changed. There probably was a time when people wouldn't have thought about leaving home to go out to shop on Thanksgiving Day. It was considered a day for family. There to, things have changed.

Nonetheless, I am a bit surprised at Sears' pricing ideas as regards floor care items. Way, way up there when so many people are being cautious with just about every penny.

Anyway, Happy Thanksgiving to you. Hope you can get out early . . .

Venson

I went by a local K-Mart today and saw that it is open 24 hours.  Also noted that there was not a dyson to be seen, not a display, brochure, and/or part like filters and tools.  Gone.  Lock stock and barrel.

Carmine D.

CarmineD wrote:

Hi Carmine,

I wonder what they're doing. The K-Mart website is overloaded with Dyson vacs AND fans no less.

http://www.kmart.com/shc/s/search_10151_10104?keyword=dyson

Do chain store branches have the option to independently decide not to stock?

Venson

Venson wrote:

Hello Venson:

Yes, store managers for retailers have flexibility to stock/not to stock product in their stores as long as the brands and models are sanctioned by their Corporate Office.  In this store's case, the dyson vacuum products are being outsold by other vacuum brands and models and have been for quite awhile.  So a joint local-Corporate management decision was made to ditch in-store dysons.  In the current economy, and based on the vacuum competition, dyson vacuums on the K-Mart web site right now will probably sell as well as the dyson fans. 

Carmine D.

iMacDaddy wrote:

Hi all,

I just couldn't wait until tomorrow to ask -- who went shopping or worked in the stores this grand Thanksgiving day and what did you see?

Venson