Burak Bahar – Gulf Region Sales Manager, Beko
Is the market demand for feature-rich IoT devices growing in the middle east region?
The Middle East market is always hungry for the latest and newest technologies and we expect this to be a driving factor in the home appliances sector.
All devices have increasingly become connected and the Internet of Things has transformed our world thanks to huge leaps in mobile technologies and the development in the Internet. Today, 10-11 billion devices are connected to the internet. It is expected that this figure will reach 20-30 billion in 2020. The world of the Internet of Things is growing into a multi-trillion-dollar business. Smart home technologies market expected to grow 5 times and reach 400 billion dollars in 2020.
As such, Beko is making significant investments in the digital transformation. We are working on connectivity, cloud computing and data mining technologies. We attach importance in developing a common protocol with the aim of maximizing the benefits of the consumers from the smart technologies. We use the power of the technology for the sake of easing the life and extending the comfort of our consumers. Our household appliances transform into the smart devices understanding the needs of consumers and offering exclusive solutions for them.
Beko’s brand philosophy addresses all the needs of the new generation by offering smart technologies. Beko stands to be a consumer-focused brand delivering quality, smart technology, stylish functional design and environmental responsibility, which provides savings for the world and at home. Beko is the rising everyday choice for the new smart generation.
By investing in R&D, design and eco-friendly technology, Beko innovates to make life easier. The brand’s “Smart Solutions” positioning focuses on the products’ aesthetic and technological characteristics as well as the advantages they provide to the consumer.
Homewhiz is the beginning of our smart home technologies journey. In the near future, the products we use at our homes will have the capability of understanding and learning, and touch every spot of the consumer’s life.
The below video gives an insight into how we see the future of the smart home:
What is the company’s outlook on demand vis-a-vis challenges also related to the stiff competition from other top brands?
Beko has been the fastest growing brand in the overall European market between 2000-2016 and is now the second largest brand in Europe in the white goods sector so we have a very solid track record in entering into a market as a relatively unknown brand and overcoming the challenges represented by other top brands.
Discuss the brand’s focus on the premium segment vis-a-vis the mid-range or the entry level consumer electronics/appliance market?
Beko offers great quality and value at every price band for our customers which is a major driving force behind Beko being the leading brand in freestanding category in Europe. As the official partner of the everyday, we at Beko are committed to offering smart and innovative solutions to help make people’s lives easier every day.
What are expected new launches before the year ends?
We have no new launches planned for the Middle East in 2017 but we have a number of exciting launches planned for the region in 2018.
Discuss if the company has been successful to make inroads as anticipated since entering the market? What’s the market share you are aiming for in Middle East region?
In the UAE, Beko’s growth in 2016 was driven predominantly by large appliances, with sales of washing machines and dishwashers growing by 20% in the United Arab Emirates, year over year. Cooling appliances, including Beko’s state of the art refrigerators and freezers, also saw robust growth as the Beko brand continues to make inroads into the Middle East white goods market, with sales in this category also growing by 20%.
In Saudi Arabia, Beko’s growth in 2016 was driven predominantly by large appliances, with sales of washing machines increasing up to 75% in the Kingdom of Saudi Arabia, year over year. Cooling appliances, including Beko’s state of the art refrigerators and freezers, as well as dishwashers also saw robust growth as the Beko brand continues to make inroads into the Middle East white goods market, with sales in both of these categories growing up to 75% in Saudi Arabia.
How has the company’s go to market strategy changed in the region? Who are your current distributors?
The Beko brand promise is to be the ‘partner of the everyday’, and our products champion that promise by developing products and technology that fits seamlessly into family life. Our products and innovative technology not only provide good value, but help busy households manage domestic tasks efficiently, creating more time to spend with family.
Beko has been Europe’s fastest growing home appliance brand between 2000-2016 which we have achieved by continually developing products and technologies that fit seamlessly into people’s live and help make daily chores that bit more simple and efficient. We have increased our market share in leading markets like France, Italy, Spain and Poland and are now the 2nd leading brand in Europe . Our objective is now to replicate that success in the Middle East markets and the first half results are an encouraging sign that we will achieve our goals.
We currently have distribution deals with a number of key outlets such as Carrefour, PlugIns and Sharaf DG, and X-Cite and are also present in the e-commerce space with partners such as Souq.com.
What are your plans further to consolidate in the region?
Our focus for 2018 is on our key markets of Saudi Arabia and the United Arab Emirates. Each of these markets
The consumer appliance industry is expected to continue to see growth in Saudi Arabia based a number of factors including a growing population as well as increased participation of women in the workforce. In addition, according to the UN, Saudi Arabia’s total energy consumption per capita is more than 3 times higher than the world average causing growing concern among the Saudi population around energy efficiency.
Beko’s current range of smart, green next generation products makes it well-positioned to address these energy-efficiency concerns in Saudi Arabia. The Saudi Energy-Efficiency Center (SEEC) continues to make efforts to reduce energy consumption, and Beko is ready today to meet this initiative. Beko’s innovative technology has been awarded A+++ energy efficiency rating, making Beko products the best in class for energy efficiency, and producing an average 70% energy saving across cooling and laundry categories.
The UAE is experiencing a trend towards more energy-efficient and sustainable products as more consumers focus on energy conservation when purchasing appliances for the home. The UAE government encouraged more green initiatives in 2016 which has raised awareness about energy-efficient products. In fact, energy efficiency was one of the top three influences on consumer purchasing decisions in 2016. Beko products are among the best in class for energy efficiency, boasting an A+++ efficiency rating for cooling, laundry and dishwashers.
The UAE is also experiencing a growing focus on healthy diets and nutrition and, as a result, more consumers are likely to focus on buying appliances to help them eat more healthily. According to the World Health Organization, 37% of the population in the UAE is obese or overweight.
Incorporating hero technologies such as Active Fresh Blue Light and Everfresh+ which can extend the freshness of your food by 10-30 days, Beko cooling products allow consumers to lock in more nutrients and maintain the nutritional value of food for longer. Beko small domestic appliances such as the new Vacuum Blender, which reduces oxidation, and the Slow Juicer, which gently crushes rather than chopping fruits and vegetables, also help to maintain the maximum nutritional value of juices and smoothies.
Discuss other innovations from the company?
Our R&D department are constantly developing new hero technologies to make people’s lives as easy as possible.
Beko recently announced its range of HomeWhiz connected home appliances at IFA Berlin.
HomeWhiz technology enables consumers to use their smart devices to monitor, control and update home appliances remotely, for the ultimate seamless experience. Using these smart devices, consumers are able to control the home whilst making the most of life outside the house.
The HomeWhiz mobile App, supported by iOS and Android, connects users directly with compatible Beko appliances.
Other key hero technologies we recently launched include:
A wide range of freshness, flexibility and time saving solutions:
- EverFresh+ technology which prevents humidity loss in fresh food, allowing fruit and vegetables to stay crisp-fresh for up to three times longer
- EverFresh+ 0°C compartment keeps meat, fish and dairy products fresh for up to three-times longer
- NeoFrost™ Dual Cooling Technology – provides no odour mixing between the compartments, as well as longer freshness of all products
- FreshGuard – Dual Cooling – specially-coated filter and UV LEDs which neutralise bad odour molecules
- Active Fresh Blue Light process of photosynthesis, which is natural in all fruits and vegetables, continues inside the refrigerator, increasing freshness and Vitamin C and other essential nutrient levels
- RapidCooler – chills 1.5l of liquid in 15 mins
A range of new offerings under three cooking options:
- Combination Microwave Oven Technology Saves up to 50% cooking time whilst maintaining great taste
- IoT supported PizzaPro+™ mode, controlled via Smart control via tablet/phone/internet enabled TV
- Surf Technology – allows you to cook food evenly at multiples levelsand can reduce cooking time by up to 30%.
Washing Machines, Washer Dryers & Tumble Dryers
- AirTherapy™ – World’s first washing machine with warm air circulation featuring:
- Refreshment Program – one kilogram of daily used clothes ready to wear in 30 minutes
- Clean & Wear Program – wash and dry a one kilogram load within 120 minutes
- AutoDosing technology – No need for detergent loading up to one month
- Three times faster cleaning solution with Fast+ Function
- Up to five times improved cleaning performance with AquaIntense®