and now
http://www.brisbanetimes.com.au/business/weak-sunbeam-appliance-sales-hurt-gud-as-profit-falls-31-20140121-3168r.html
after the crash of SUP (I might miss the codeL supercheap auto etc)
is that the sign of an healthy econony or one trending up???
and today asx is up
GUD is not a good bellwether of the state of the consumer economy. It does highlight some of the issues facing consumer goods makers and importers/distributors though.
One being cheap Chinese generic goods are eroding brand value. Do you know what make of oil filter your mechanic uses in your car? Do you care? Supercheap Auto distribute Ryco filters almost exclusively by the way (Ryco is a GUD brand) but I imagine that retail sales make up a tiny proportion of the market.
Another being that the two big retailers are squeezing and eroding the margin and value of independent brands.
GUD has a poor portfolio of consumer brands. Look at the Oats brand. What major point of differentiation is there in an Oats branded broom or bucket as opposed to any other broom or bucket you might buy from Big W or Bunnings. When you shop at Bunnings do you even care or notice what the brand name is of the mop or broom you are buying. Their brands are of little value.
Same with Dexion. Any Chinese manufacturer can knock off and knock out pallet racking shelving. There is little value to the "Dexion" brand and in fact it has become a generic term for a type of pallet racking.
Sunbeam is the only consumer brand in the GUD stable that is probably worth anything as a brand yet GUD concede that they have dropped the ball in terms of product development and keeping current with consumer requirements. Look at the brands that are doing well in kitchen appliances. Kenwood mixers cost a fortune. Nespressos are converting instant coffee drinkers in droves, and private school mums are flocking to the Thermomix cult forking out $2,000 a pop for a German made blender. GUD tried to take over Breville but the ACCC stopped it. Thank goodness for Breville.
GUD has been a bit of a dud business with poor quality brands that has not been well managed. Retail and consumer goods has been with its challenges over the years but some other companies have done well (with some setbacks) over the past few years including SUL, RCG, BRV and even JBH has made a come-back.