Read the success story
Transcription
Read the success story
Kitchen retailer profile · Kutchenhaus The door’s always open Nobilia has just opened another Kutchenhaus showroom, in Brentwood, Essex. But this time it is a franchise run by Dave Cowling who also operates a successful Clive Christian showroom. David Harris talks to him about the move and why he’s already thinking about taking on a second franchise Dave Cowling T here has been much debate in recent issues of kbbreview about how German kitchens compare with British kitchens, with strong views aired from both sides of the fence. But one thing that always seems to emerge is that people do ask for German kitchens and they believe they offer good quality, albeit at a price… It is that last preconception that Nobilia was keen to shake off, however, when it opened Kutchenhaus in the UK to sell its products. The first three Kutchenhaus shops, in Manchester, Sutton Coldfield and York are all notably big, operated directly by Nobilia, and have immediately taken a significant position in the local markets. Philip Croak, sales and operations director Kutchenhaus, says that one of the main aims is to show customers that German kitchens do not have to be pricey. He says: “People do perceive German kitchens as expensive and one of our main tasks has been to show people that we are not only good, but good value. That’s one reason why our latest design tool on the website, which allows customers to configure their ideal kitchen on screen in just a minute or two, has the price displayed in the corner of the screen, so customers can immediately get an idea of how much what they are looking at will cost them.” What that means, in pounds and pence, says Croak, is that while some Kutchenhaus kitchens might cost £15,000 fitted, the average cost in the York shop comes in at £9,800. Not the cheapest kitchen you will find, but economical enough to raise questions about the theory that German equals pricey. It was only a matter of time before Kutchenhaus ventured outside the North of England, so it was no surprise when a branch opened in Brentwood, Essex, in January. There was an important difference, however, because the Brentwood Kutchenhaus was the first to be franchised. Two years in planning, 62 · kbbreview · July 2015 062-064_Kitchen Retail Profile_July15_KBBR.indd 62 19/06/2015 15:23 Kutchenhaus · Kitchen retailer profile Top: The Brentwood franchise is in a shopping centre Below: Cowling’s large showroom has 10 full displays Bottom: Kutchenhaus ‘coffee girl’ logo overlooks handleless Sand lux lacquer and Montana pine display Mineral grey Laser kitchen with Silestone Blanco Zeus worktops and Elica extractor hood Cowling says: “There was a big gap in the market for properly designed German kitchens at prices that aren’t as expensive as people perceive them to be. Yes, they cost more than Howdens or Magnet, but with Nobilia you get an incredibly professional organisation.” It is also an impressively large one. As information displayed on the wall of the new Kutchenhaus branch proudly proclaims, Nobilia was founded in 1945 (putting it in at the start of the postwar industrial revival), it now makes 580,000 kitchens a year – 2,600 completed kitchens a day. It exports to 86 countries. In taking on a Kutchenhaus franchise, Cowling is buying a small slice of a massive cake. Appeal Handleless Satin Grey lux lacquer kitchen with island, row of tall appliances and media centre the Brentwood franchise was taken on by Dave Cowling (pictured top left), already a wellestablished kitchen retailer in the area through the Clive Christian dealership he runs with his brother in Brentwood’s high street. Clive Christian occupies a fairly rarefied part of the kitchen market, so why did Cowling decide to take the plunge with the first Kutchenhaus franchise? It turns out that the price point of Kutchenhaus was a vital ingredient. Nobilia’s target market also appealed to Cowling. He says: “They appeal to 80% of the market. They are not interested in the bottom 10%, the flat-pack, cheapy-cheapy bit. And they are not interested in appealing to the top 10% bespoke market. The rest they cover.” The franchise agreement with Nobilia did not require any initial set-up fee from Cowling, but he is obliged to sell only Nobilia furniture with whatever appliances he chooses. Brentwood, Cowling’s home patch, is ideal for this sort of kitchen, he says. “It’s affluent, people have a large disposable income and we are well placed to deal with those coming from further afield.” The new store is bang in the middle of Brent- wood, in the Baytree shopping centre, not far from the high street. It is a large shop, if not quite as big as the York or Manchester branches, and it is impressively fitted out. This is partly down to careful preparation from Cowling and partly down to help from a team of German fitters that Nobilia sent over from Germany in December, who took more than a month to fit out the store. There are some thoughtful touches. Because it is in a shopping centre, the wide doors are permanently open, allowing those passing to wander in for a look if they want without feeling trapped. The showroom itself is smart, roomy and u July 2015 · kbbreview · 63 062-064_Kitchen Retail Profile_July15_KBBR.indd 63 19/06/2015 15:23 Kitchen retailer profile · Kutchenhaus There was a gap in the market for properly designed German kitchens at affordable prices. Yes they cost more than Howdens or Magnet, but with Nobilia you get an incredibly professional organisation includes a room with a television in it that is intended for children to watch films while their parents take their time shopping for a kitchen. It is a clever idea. The staff include Cowling’s sister, Stella Dawes, as showroom manager, and three full-time sales and design staff – Robert, Raquel and Andrew. The layout of the shop draws customers down a central aisle with kitchen displays off it to the left and right in a conventional and neat design, but it doesn’t have a crowded feel: the planning time seems to have been well spent. And not crowding the customers is an overall aim for Cowling and his team. He says: “We really don’t want people to feel that they will be cornered by sales staff if they come in here. Obviously, we are here to help, but we want a relaxed atmosphere. We think that the kitchens should speak for themselves.” Happy Who is the typical customer? There isn’t one, says Cowling. “It could be someone with a onebedroom apartment or a couple with a family who live in a £1 million house. We really do cover the range,” he adds. Since opening in January, Cowling has been fairly happy with sales, which he describes as being “four or five kitchens a week on average and in the best weeks six or seven”. The first kitchen was sold “to a developer friend” before the shop even opened and the first from the sales floor went within a fortnight of opening. Cowling uses subcontracted fitters to put in the kitchens, but is happy enough to supply the kitchens alone to both customers who want to use their own builders and to the trade. There is a gap between ordering and delivery, says Cowling, typically six to eight weeks, depending on the German factory and, notably, German holidays. Another advantage of the Kutchenhaus franchise, says Cowling, is that customers see the kitchens on the internet and come from some distance to buy them because they have decided that Nobilia is a good bet. In one case, he even found himself travelling to Chippenham in Wiltshire, nearly 100 miles west of London and considerably further from Brentwood, to plan and design one kitchen. It is a help that, if a customer wants a Nobilia kitchen in the UK, then Kutchenhaus is an obvious place to buy it. The Kutchenhaus website is used purely to display what is on offer – you can’t buy directly from it, so a visit to a store (or from someone at that store) is essential. Another thing that seems clear is that Kutchenhaus is now preparing to open more franchises to expand its UK coverage and that Cowling will be among those bidding to run further shops. He is open about enjoying the prospect of becoming a multiple franchisee, although he acknowledges that it is still “very early days”. Croak also makes it clear that he would be happy to see Cowling take on more Kutchenhaus stores. It seems unlikely that Nobilia will run more shops directly, as it did through the first three Kutchenhaus stores. Croak makes if pretty obvious that Nobilia does not see itself as a retailer, except in very specific circumstances. He says:“We are Nobilia and we don’t really do retail. We set up Kutchenhaus because nobody really knew the Nobilia name in the UK. Our business model was designed for supply to businesses and in order to raise public perception of the brand we needed to launch ourselves initially.” Croak says that he is talking to several potential franchisees already, so the market can probably expect further Kutchenhaus franchises to be announced. This is all part of Nobilia’s long-term plans to accelerate growth in international markets, which it has made clear for some time. Brentwood may be a very small part of a large global jigsaw for Nobilia, but as the launch pad for a network of UK franchises, it has an imporkbbr tance that belies its size. Top: Lacquer white gloss Flash kitchen with blue quartz island Above: Silestone worktop with professional chrome mixer Below left: One of the two front window kitchen displays Below: Cowling and team with Philip Croak (third from left) from Kutchenhaus 64 · kbbreview · July 2015 062-064_Kitchen Retail Profile_July15_KBBR.indd 64 19/06/2015 15:23