President and CEO of Franke Home Solutions Barbara Borra talks about the last step of the brand’s transformation balanced with a need for consistent retail support

Following the acquisition of cooker hood manufacturer Faber, Franke Group rebranded its residential business – Franke Kitchen Appliances – as Franke Home Solutions.

Its recently refurbished showroom at its headquarters in Aarburg, Switzerland, which measures 350sqm and features the company’s sinks, taps and home appliances, marked the last step in its transformation.

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President and CEO of the Franke Home Solutions Barbara Borra explains: “Franke Home Solutions was borne out of the merger of Kitchen Systems and Faber hoods and cooking systems.

“We brought together those two divisions a couple of years ago which allowed us to develop synergies and expand the reach of what we could do.

“This is why we made the decision to change the division’s name. Starting from the kitchen, we want to reach other spaces outside the kitchen”.

Change leads rebrand

Borra is keen to emphasise the rebrand is more than a change of name. It signifies the transformation that has taken place in the company during this time.

She clarifies: “It is a reflection of the change we have been bringing in over the last few years.

“One of the claims of this rebranding is ‘transform change into an opportunity’. Change is certainly the motive of what we have been doing in the last years.”

It has seen the Franke Group, which has a turnover of 2.5bn CHF and with a direct presence in 37 countries, consolidate its production of stainless steel sinks.

It has established centres of excellence in Aarburg and in Peschiera del Garda, Italy, and discontinued production in Poland and Germany, which has gone hand-in-hand with streamlining its portfolio.

Borra explains: “We had several factories producing slightly different versions of the same product. So we consolidated the footprint.

“We created a global range that while being more concise was giving more variety.

“Instead of having three sinks in a certain product line but not covering all the breadth of cabinets, now we have complete lines that cover the full size of cabinets.”

Borra continues stating Franke has also reviewed its tap portfolio, to make sure its offer was “complete, distinctive, innovative and sustainable.”

And although sustainability has become somewhat of a recent phrase in the KBB industry, Borra states it has always been at the core of the business.

She is keen to point out the 100-year old Swiss manufacturer hasn’t reacted but anticipated needs, focusing on wellbeing for the home and planet.

Among its sustainable credentials, 70% of the stainless steel used by the company is recycled.

Home appliance evolution

Further evolving its business of food preparation sales of sink, tap, waste disposer and hoods, Franke has also introduced home appliances.

Borra offers the reason for Franke entering the sector, commenting: “We are one of the biggest producers of hoods and we have completed our offer, selectively, with appliances.

“We have done this recently in the UK so we can offer a full system to all our professional partners and then into our consumer.

“They have a consistent product line from the design and colour in sinks through to the appliances.”

It isn’t the first time the company has introduced appliances into the UK, having first introduced premium-priced Frames by Franke in the UK, in 2016, before discontinuing the collection.

But Borra is keen to point out its latest appliances are not the same and explains the learnings: “At that time, we were trying to be differentiated in design.

“Maybe we were too polarising and certainly we were not competitive. By that, I mean you should be able to cover from mass premium to premium – not only one segment of the market.

“We came back with a product range that is complete, covers a different price point, and I would call it distinctive but minimalistic design that can be accommodated in different styles of kitchen.”

With a selective distribution policy focused on kitchen retail specialists and not selling the same models online, she explains how Franke appliances benefit retailers.

“It is a service to our professional partners for two reasons, one because instead of having different suppliers of sinks, taps, hoods and appliances you have only one supplier. But, we have also protected the margin of our kitchen partners.”

She points out the importance of focusing on kitchen retailers, adding: “You cannot be with retailers and try then go direct to consumers.

“We have differentiated our product range, so we have a little presence online, but we have a dedicated range, so this doesn’t disturb the business of the professional.”

Retail reaction

Purposely working with a selective number of UK retailers, around 200 showrooms, to sell Franke home appliances Borra says it has had positive response: “It was a mutual decision because it’s not just about saying, ‘OK, please display those products as well’. We partnered with retailers who saw a space that Franke could legitimately occupy.”

She explains the economy stalled the potential growth of UK appliance sales, commenting: “Certainly the market evolution of this year penalised our ambition as far as development of the revenues, but it is temporary, and I’m pleased how consistent we were with our strategy.

“What happens, very often, when you see sales being South of where you want to be, you can be opportunistic.

“But the UK was very disciplined on keeping its strategy and I think it is going to pay back.”

Reliable relationship

Stating the global market has been “brutal” Borra explains strength in its relationships with retailers has seen the business win through: “The UK, suffered a little bit more [than the rest of Europe] but what I can say is that in each market we suffered everywhere this year versus last year.

“But in every market we did better than the industry, which for me is a reflection of the quality of our relationships we have with our trade partners.”

She cites the company’s service through COVID as being key to strengthening retail relationships: “Even when the demand was exceeding supply, we always served first, and at the best of our capabilities, our historical partners.

“Fortunately, there are people who remember who was there in those times.”

Going forwards, Borra says the company aims to focus on two key elements of Water and Air.

“They are elements that are very close or critical to life – and life means well-being, which is a key space we want to occupy on the life of our consumer.” And she adds “our ambition is to have one anchor product in each household.”

While Franke Home Solutions has been transformed, Borra reports there will also be stability in its support its kitchen retailers, by being “predictable and consistent”, concluding: “I think those need to be the two characteristics of a reliable supplier.”