The relationship between retailer and supplier is changing. Increasingly suppliers, such as Apple, Nespresso and Nike, are taking their brands direct to customers through retail, while at the same time, retailers are moving up the supply chain to take on the role of importer and distributor of private label products. Electrical retailer, The Good Guys, and global appliance giant, Whirlpool, have met somewhere in the middle. The two have agreed to collaborate on local market product developme
ent, procurement and marketing for Whirlpoolbranded product in exchange for channel exclusivity.
Whirlpool’s kitchen, refrigeration and laundry appliances will be available exclusively from The Good Guys from October 2015. The agreement does not include exclusivity for Whirlpool branded Crisp and Grill microwave products, which will continue to be available in general retail distribution.
The collaboration is a diversion from the longheld view of some in the industry that retailers and suppliers should stick to what they know.
“I think the industry is really at a point of its evolution where, whether you’re a retailer or a supplier, you’re looking for new business opportunities,” said The Good Guys group GM, merchandise, Wayne Jennings.
“While brands are focused on influencing what shoppers buy, retailers are more interested in where they buy. It is when these two goals overlap that there is opportunity to collaborate. And that is the spirit in which we are entering this partnership with Whirlpool.”
Jennings said to evolve and challenge the norm between retailers and suppliers requires an openness and willingness to share information both the good and the bad.
“In simple terms, there has to be an alignment between both parties. In some ways it’s very similar to a marriage you have to be aligned and have a very similar business goal and strategy in place,” Jennings said.
With Australia being a focus for growth over the forthcoming years, Whirlpool’s management team has acknowledged the benefits of partnering exclusively with The Good Guys.
Whirlpool GM strategy, marketing and sales Australia, Harry van Dyk, said the agreement simplifies their go to market strategy. They no longer have to negotiate which stores their product is sold in or which deals they need to put together, instead freeing them up to focus on “what they bring to the party” product that matches Australian market demands.
“We believe The Good Guys mirrors our values and goals of providing consumers with high quality, state of the art technology and product,” van Dyk said. “And this partnership will enable invaluable access to customer insights that will assist in further developing our Australian specific product range and marketing propositions.”
The process is already underway with The Good Guys’ buying team and the sales and marketing team at Whirlpool having already travelled together. The collaboration involves reviewing Whirlpool’s extensive global product library, finding the most suitable product for the Australian market and negotiating hard with the factory to deliver a good value appliance that will perform well in the market.
The Good Guys plans on developing more of these types of strategic alliances over the coming years across a range of product categories. Jennings said the unique relationships established with key brands enables the retailer to deliver wellfeatured products with a quality brand and value for money for its consumers.
