With 30 years’ experience of the kitchen appliance industry, selling to the retail channel, Owain Harrison has been appointed MD of buying group KBBG. In one of his first interviews in the role, we discover his vision to grow retail membership and help the sector flourish
Q: Were you surprised when former KBBG MD Bill Miller announced he was retiring and what attracted you to the role of managing director?
A: I was surprised when Bill [former KBBG MD Biller Miller] told me he was going to retire and flattered when he approached me to succeed him.
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I have spent around eight years working with KBBG UK as a supplier and it has clear value add, especially for independents who value their independence – being able to operate as their own business.
KBBG’s commitment to supporting independent retailers and helping secure sector growth was impossible to resist. The opportunity to learn new categories, join this excellent company with a shared vision, and to work with such an exciting customer base the three main pillars behind my reasoning.
Q: What is the shared vision?
A: When the KBBG first came to the UK market they had a 10-year plan. It’s box ticked.
But 98% of independent kitchen retailers in Germany are members of buying groups, so we still have this huge, untapped potential to A) secure membership growth and B) help the independence sector really flourish.
Q: Do you have a growth figure in mind?
A: If we talk about JKMR Research numbers, which reports around 3,500 kitchen studios, clearly there is still significant opportunities for more growth.
We’re still
at the beginning of where KBBG could add value in the independent sector in the UK. I really think associations like KBBG and KBSA are vital in helping secure the health of our membership.
Q: Will you be looking at increasing bathroom representation?
It has been one of the key pillars of growth, over the last three years, to add bathroom members and there has been consistent additions to the supplier base from the bathroom sector.
We’ve got a target list of some suppliers who we would like to work with, and there is still more to do with the suppliers we currently have within the membership, but that’s a long-term growth strategy.
Q: What will your first 90 days in the role look like?
My primary focus will be to get out and talk and listen to as many retailers and suppliers as possible.Ultimately, I want to ensure KBBG remains the go-to resource for independent retailers
Q: The KBBG recently joined forces with trade association the Kbsa – where you were appointed corporate chair in 2022 – so can we expect that partnership to continue?
Q: The partnership with the KBSA has proven highly beneficial for both organisations, and more importantly for our members.
The Kbsa is resurgent and highly relevant, so we’re completely committed to continuing this collaboration.
I want to continue to explore new initiatives with the KBSA to ensure the partnership evolves and continues to meet the challenging needs of the industry.
The Kbsa has links with Trustmark, it has its own awards and conference, while Der Kreis has the purchasing power of 4,000 members, enabling independents to compete at a national level, offering improved buying conditions, bonus payments and better co-operation with leading suppliers across kitchens and bathrooms and services.
The relationship helps elevate both our voices within the industry.
Q: What are the biggest issues impacting independent sector?
A: Undoubtedly the macro and micro economic factors, and the major political changes in Europe and US administration, creates a level of short-term instability and uncertainty.
We’ve got first time buyers getting older, average house prices are stagnant and still at a record high, of around £308,000 in England £229,000 in Wales and just under in Scotland.
We haven’t broken free of that UK tradition of creating pent up demand and then not actually getting people onto the ladder.
Gov.uk’s figures says we need 300,000 house builds, this year, to stand still. But for the last three years, we haven’t built more than150,000 houses a year.
Until we get a relaxation of lending and some inflationary stability, the market is being really squeezed.
There are changing consumer behaviors as a result of that, we see rising costs, likely disruption, huge inflation, increased competition, and lead times become extended on consumer decisions because they spend more time shopping around. So I think we have to flip it into an opportunity.
We are facing a big challenge and we have to help independent retailers navigate economic uncertainties, as part of our role.
We need to help our members adapt to that and remain profitable, collaborating with suppliers, and we have the tools within the KBBG to help people achieve this.
Q: What will be the biggest opportunities for KBBG?
A: Independent retailers add so much value to our industry, and we are ultimately here to help them.
We need to focus on continuing to create value and then success will follow for our members.
I think the biggest opportunity lies in empowering independent retailers to differentiate themselves through clear expertise, value add, personalised service and innovative product that’s not available on the general high street.
There are opportunities for us to continue helping suppliers to promote to our membership, capturing consumer interest, because the biggest challenge in the industry is reaching people in market with the right product at the right time.
We can give our members great advice on trends, legislative, market and technology changes.
The big opportunity for KBBG is to be the intermediary that brings everybody together for shared vision.
Q: So what will be the benchmark of your success?
A: It’s really about the membership, these are independent, regularly family businesses so for me, a healthy and flourishing KBBG membership means our independent sector is secure.
This is a fantastic industry that for 30 years has been my home, so for me, success will be measured by the growth in our membership’s turnover, a healthy and strong supplier base who experience strong collaborative growth and the satisfaction and profitability of our members.
I’ll also gauge success by how effectively we adapt to market trends and create unique tools that position KBBG as an indispensable partner to independent retailers and those suppliers who support the channel.
Q: What is the best advice you’ve been given?
“Why and how?” So, “why am I doing this?” and “how will I make a difference?” It’s a framework for everything. I ask myself “why and how?” quite a lot to make sure I’m doing the right thing at the right time.
Q:What advice would you give to retailers who are concerned about the market?
Pick the right partners, know your business, make sure you’re reaching customers in market and plan your cost accordingly.