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Gorenje Launches New Built-In Brand: Gorenje+
Apr 20, 2011
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Slovenian home appliance producer Gorenje is introducing a new brand of built-in appliances, Gorenje+, to some European markets. The high-end kitchen appliances have been developed specifically for the new brand and aim to boost Gorenje's presence in the distribution channel of specialized kitchen studios, which provide for a higher return on sales.

Gorenje has primarily been known for a single brand, the Gorenje, which has been used on appliances sold in Western and Eastern European markets. It has also served as a private label manufacturer for other appliance companies. Its brands have expanded with recent acquisitions, but Gorenje+ marks its first launch of an entirely new brand name in appliances. The line will include cooking, cooling, and dishwashing appliances.

"Presence in all price segments and different distribution channels requires a suitable portfolio of clearly defined and strong brands," said Branko Apat, management board member in charge of the Home Appliance Division. "Sales under our own brands have been rising year-in-year-out and last year, they amounted to nearly 90% of total sales, the highest share to date. In the future, we wish to further increase this percentage and above all to raise our sales of appliances with higher value added."

Introduction of the Gorenje+ brand is the company's response to the rising importance of kitchen specialists or specialized kitchen studios as a distribution channel. These channels mostly market built-in appliances and are in different stages of development stages in different European markets. In Scandinavia, the distribution channel of kitchen studios represents more than 50% of total sales of built-in appliances. In Germany they account for just over 25% of built-in sales. In Russia, 15%.

Aleksander Uranc, head of marketing, said the new brand will launch this Spring in Germany, Austria, Russia, Ukraine, Scandinavia, Czech Republic, and Slovenia.

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