How Sharp Is Planning To Expand Into Europe With Its Home Appliance Ranges
- 1 million square meter factory in Manisa
- A thoughtful approach to the market
- Pampered Sharp products
- All products are tested in the Vestel deaf chamber
- Efforts to be made in marketing
Acquired under license in September 2014, the Sharp brand is now ready to conquer Europe with its home appliance ranges. The licensee Vestel opened the doors of its Turkish factories to us and presented its strategy.
1 million square meter factory in Manisa
Vestel, with its 1 million square meter factory in Manisa, Turkey, saw things in a big way for Sharp. The Turkish home appliances group took over the Sharp license for Europe in September 2014 and had been taking the deal very seriously ever since. Amid a substantial industrial hub, which works as a white label for more than 90 brands in Europe, Sharp Home Appliances Europe Marketing Director Alberico Lissoni outlined his strategy at the end of June 2017. “The agreement between Sharp and Vestel is more than just a licensing agreement,” insists Alberico Lissoni, “we are true partners.” To supply the 35 European countries provided by Sharp, Vestel has set up a dedicated office, teams, strategy, and services to serve the brand.
“With the industrial power of Vestel, Sharp combines its innovation and design which make the signature of the century-old Japanese brand,” continues Alberico Lissoni. France Director of Sharp Home Appliances, Guillaume Villecroze, adds that “all Sharp products leaving Vestel factories are sent to Japan for approval, they must meet the standards of the brand.”
If the market share is still modest, 1.5% in Europe, for a turnover estimated at more than 100 million euros, Sharp intended to reach 2% in 2018. Vestel will even invest 150 million euros to double the capacity of its factories in 2018. The dishwasher factory will be able to release 1.8 million pieces in 2018 against 900,000 this year, and the washing machine factory will increase to 2.5 million pieces in 2018 against a capacity of 1.8 million today.
A thoughtful approach to the market
Starting from scratch with Sharp, the Vestel teams also re-examined their approach to the market with Sharp products. Although each country is different, Sharp still has to deliver to 35 countries in Europe. “We’re realistic about the price,” says Alberico Lissoni, “we place ourselves in the middle of the range because we have to get the products at the right price.” Guillaume Villecroze, the sales manager for France, explains that he wants to go after brands such as Bosch and Siemens: “Our target is the mid-range, but we sell across all segments.”
In preparation for the IFA in Berlin at the beginning of September 2017, Sharp has developed a connected range which will be presented at the event. These products, which work via smartphone or tablet, have been designed for consumers. The user will be notified if his product goes on a breakdown before it becomes too complicated to manage. This is part of the after-sales policy of the home appliances company. Sharp also wants to amaze with prices that are only 100 to 200 euros higher on connected products than those of the classic ranges.
Pampered Sharp products
For future Sharp lines, “the teams have left the drawing board,” underlines the European Marketing Director. To determine the design of Sharp’s future ranges, Vestel put four teams of young designers from the company into competition. The winners saw their products put into production. Vestel opened the doors of its refrigerator and washing machine production line to us. When refrigerators are tested for 40 to 50 minutes, washing machines are tested over 2500 cycles or ten years of regular use. The door is opened 210,000 times by a machine to check its resistance.
All products are tested in the Vestel deaf chamber.
Sharp relies on extremely silent ranges. In an impressive deaf room, all the new products are tested. Their noise is measured at 39 decibels when the normal is at 58 decibels. A great success for Guillaume Villecroze, director of sales in France, “but impossible to demonstrate at a point of sale or on the internet.” After 70 to 80 stages of assembly on very modern chains, Vestel pays particular attention to the Sharp lines. When 3% of production is tested in standard times, for Sharp, 5% of production goes through the test room. 97.5% of the products are declared good, a better figure than the 90% customarily targeted, proof of the quality of Sharp products for the Vestel teams.
Efforts to be made in marketing
Guillaume Villecroze explains that the proximity of the Manisa factories in Turkey to the European market is a real plus for Sharp products. When products from Asia have to be transported by freighter for several weeks, delivery times are concise at Sharp. The Japanese license has only arrived in specific markets for a few months, such as in Spain, so while volumes are not yet there, Sharp is focusing on quality.
In countries that have been delivered for more extended periods, distribution has been carefully worked out. “Distribution is well in place now, says Alberico Lissoni, our last big step to be taken is communication and marketing that we have to work at European level,” said the director of Sharp Home Appliances Europe.
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