Hardware business Mitre 10 unveiled a new brand direction this week, putting out an open invitation to all Australians to come and try out ‘the other hardware store’. The campaign, which is aimed primarily at DIY customers, sees Mitre 10 flaunting its number two status in the home and hardware category: behind industry leader Bunnings. But according to the business’ general manager of marketing Karen Fahey, the campaign isn’t about taking its rival down a peg, but rather cele
r celebrating the competition they provide.
“We respect them greatly,” Fahey told Inside Retail.
“But this is our chance to be a bit noisy, a bit disruptive, have some fun and inject our personality into the category, and remind Australians that they have a very good choice.”
The new direction follows a years-long store refresh scheme, which has seen hundreds of Mitre 10 locations upgraded into ‘sapphire stores’, while the business’ Thrifty Link and True Value Hardware chains are in the process of being converted to Home Hardware sites.
The plan moving forward, Fahey said, is to run a dual-brand business, with Mitre 10 as the flagship and Home Hardware as its alternative.
And while this process has been ongoing for some time, the changes to customer behaviour throughout the pandemic played a large role in spurring on the new direction.
“During Covid-19, a lot of people were forced to shop locally, and many of them rediscovered their local hardware store,” Fahey said.
“Many of them found that things have changed. We’ve improved the offer. We’re using customer data and insights to run a shopper-led range, rather than a supplier-led range.
“I think a lot of people were pleasantly surprised, reengaged with their local, family-run hardware stores, and discovered the personal care and service that they actually needed during that time.”
“The Mitre 10’ers care more”
According to Fahey, Mitre 10’s biggest customer is in its trade sector, but there is a massive opportunity for the business to pick up some of the hobbyist and DIY customer base: a group that Bunnings has owned for some time.
“Bunnings has a considerable war chest to advertise with, and has expanded aggressively, so over the past ten years that’s been bound to diminish our visibility and share in the market,” Fahey said.
“There have been quite a few things that have worked against Mitre 10 in the DIY space, but this is an invitation to more DIYers to get the solutions to their challenges on the first trip [at Mitre 10].
“They can enjoy the experience of [having] people who will walk them around the store to the product and talk them through it, rather than point them to aisle 37, and who will care about their project and try to understand what they’re trying to achieve.
“The Mitre 10’ers care more.”
The pandemic undoubtedly provided the hardware space with strong growth over the last few years, with more Australians taking the opportunity to try on DIY projects and re-furnishing their homes.
Looking forward, however, Fahey acknowledges that the sector has some headwinds blowing against it. The cost of building has increased, and people are beginning to travel again, so the fight for wallet share is tougher.
“As our globe begins to open up again, we’re confident and happy that we provide a great experience for our customers,” Fahey said.
“We’re servicing rural communities that, sometimes, are one- or two-horse towns. Sometimes it’s just a Mitre 10 and a Home Hardware. And we have a responsibility to those towns, and take that very seriously.”