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.

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

Venson wrote:

Hi Venson:  Don't know if you are a daily hard copy newspaper suscriber.  After perusing the sales and ads, I'd say dyson was by far the biggest advertised vacuum product by big box retailers with the largest discounts offered: 25-35-50 percent from MSRP. 

Carmine D. 

CarmineD wrote:

Hi Carmine,

No need for newspapers around here. I haven't had a cat, bird or puppy for years.

I generally get my news off the net from all sorts of sources but mainly by way of the New York Times online. I also use Google for news alerts re vacuums. An interesting article re Dyson pricing in the UK appeared today. I pretty sure vacmanuk knows the skinny for real.

http://www.guardian.co.uk/money/2010/nov/25/vacuum-cleaner-price-check

Best,

Venson

This is what dyson is offering its owners on-line for the next 3 days.  Not really that good.

Carmine D.

Not displaying correctly? See email in full | Unsubscribe     We're running a special 3 day promotion on our website for Black Friday. As a Dyson owner, we wanted you to know first.     Until midnight EST on November 28, 2010, you can buy any new Dyson vacuum on Dyson.com with 15% off plus free shipping. It includes the latest Dyson Ball™ machines, such as the ultra-compact DC24 Animal, and the powerful new Dyson handhelds.     Abbreviated Terms: The 15% off Black Friday promotion will be in effect on Dyson.com from 12:01 a.m. EST, Friday, November 26, 2010 until 11:59 p.m. EST, Sunday, November 28, 2010. This offer is only valid while supplies last. This offer applies to the purchase of a new Dyson upright, canister or handheld vacuum cleaner product only. Excludes: parts, accessories, Dyson Air Multiplier™ fans and refurbished vacuum cleaner products. This offer may only be modified by a Dyson representative. Dyson reserves the right to terminate this offer at any time. Full terms and conditions are on the Dyson website.

Venson wrote:

Some details, Venson.  [Don't know if the NPD link shed any light on this].  Cyber Monday registered record returns for on line orders.  Number of people logging onto web sites hit record levels.  Compared to Black Friday, Cyber Monday on line sales were 31 percent higher.  Average order increased by 2.1% aided by increase in luxury good sales.  AMAZON was biggest winner on cyber Monday.  Wal*Mart next.  Then TARGET......  BEST BUY, KOHL's, SEARS were all in top 10. BEST BUY cyber Monday sales increased 50% and best ever.  Overall cyber Monday sales rose 19.4 % over last year which tops 14 % [last year] which was the highest in 7 years.

So based on early returns Christmas sales are off to a good start.  Too early to tell if the momentum will continue.  Retailers have offered biggest discounts in years and stretched out the sales season.  Two factors could combine to result in minimal growth at best for holiday sales season. 

Carmine D.

CarmineD wrote:

I've received email ads from several big box retailers that they are continuing cyber Monday sales prices today too, on vacuums. 

Carmine D.