MIDDLETON, WI— Three years ago, Spectrum Brands gave Black + Decker a significant overhaul as part of an effort to reinvigorate the now 107-year-old brand and better connect with younger consumers.
The initial effort included an update of the brand’s logo, product packaging and an updated selection of appliances that laid the foundation for an assortment that is focused less on price and more on value and additional features.
Today, that effort is paying dividends for Spectrum Brands in the U.S. marketplace with a greater selection of Black + Decker kitchen electrics on the shelves of leading retailers. In addition to the Black + Decker initiative, the company has also worked to expand its assortment of George Foreman grills to include multi-functional cooking appliances and even outdoor grills.
During a recent quarterly investor conference call, company officials noted that despite a drop its global small appliance division, Spectrum’s efforts in small electrics is paying dividends as the company reported higher U.S. revenue from growth in mass channels and e-commerce.
In an interview with HOMEWORLD BUSINESS®, Karen Baer, senior director of product marketing, home products, for Spectrum Brands, discussed the current state of the company’s small electrics business and the impact of the changes made in recent years.
HOMEWORLD BUSINESS: What have been the biggest changes over the past couple years to how Spectrum Brands approaches the small electrics segment?
KAREN BAER: We refocused on the consumers who use our products every day and have a better understanding of the end user. We now make sure we’re in front of the consumer and know their likes and dislikes in an effort to understand as best as possible what delights them. But we want to go beyond their expectations and provide products that offer the best performance no matter the price. It’s great to see the work we started two to three years ago now hitting the digital and physical shelves of retailers.
HWB: How has the company augmented its pricing structure with small electrics?
KB: We know that not everyone can afford a $600 blender or a $300 toaster oven. We have a strong understanding of who our consumers are for our brands and that Black + Decker consumers are more apt to purchase products at certain pricepoints. Our goal is to be able to delight our consumers whether it’s with a $30 toaster oven or an $80 toaster oven. We want to have the right products for people no matter their income or whether they’re a single person living in an apartment or a large family living at home.
HWB: How did the changes the company made over the past few years impact the product development teams?
KB: We have a global team and we’re able to incorporate more ideas into the process. This allows us to get a look at what is hot in key areas around the world, which gives us insight as to what trends may be coming across the globe. We have also made significant investments in equipment and our lab facilities in an effort to make sure we are developing higher performance products. Our ability to rapid prototype allows us to get product to market faster. We have also invested in improved equipment in our facilities in China.
HWB: How have the changes at retail and the blurring of channel lines impacted how Spectrum brings product to market?
KB: The blurring of the lines has been happening over time. At the same time, the changes in how the consumer shops have also had an impact on this. We continue to work with our retail partners to develop products that make sense for them, but we also know the consumer today is much more intelligent in how they shop. Differentiation today has to be more than just changing the color of an item. Higher end consumers will need more features in their products while other consumers may not need as many features. More and more there is no difference between an e-commerce shopper and a brick-and-mortar shopper.
HWB: With companies able to easily interact with consumers, what impact does this have on product development?
KB: We scour not only product reviews for our products, but also reviews from competitor products as well. This gives us great insight into how consumers are using or accidentally misusing products. We pull those insights and use it into our product development process moving forward. We also watch our social media to see what recipes consumers are asking for and make sure we are providing them the best possible tricks and tips. In addition, we also interact with our consumer when they reach out, which they love.
HWB: When looking at future product development, what role do you see “smart home” products playing within small electrics?
KB: I think for Spectrum Brands and the industry as a whole to get smart home right and innovate, we have to make sure the products we offer truly solves a consumer frustration and have features that add value. The challenge is finding the perfect match of why the product is a connected product and how does it benefit the end user. That’s important before we just start making a bunch of smart home products.