Competing on a new level

Amica, a WSE-listed white-goods manufacturer whose fridges and ovens are well-known in Poland, has begun selling smaller appliances, adding vacuum cleaners, kettles, hair dryers and other products to its offer. The goods will be produced in China.

Marek Uszyński, Amica's director of strategy, said that the company was adapting its product line to meet the evolving demands of the Polish market. "Adding smaller appliances to our established range of larger products is part of our strategy in the household appliances market, in the widest sense. We also think that the strength of the Amica brand and the high level of brand recognition among consumers represents an opportunity for us," he said. Uszyński declined to give an estimate of how much the new products would increase Amica's sales.

The firm is counting on its brand name to sell the products. "We did not plan any promotional activity in connection with our decision put these products on the market, with a limited distribution, at the end of 2007," Uszyński said. "We do have plans to advertise them, but it is still too soon to give any exact details," he added.

Some analysts have commented that Amica's decision to enter this sector, while a good one, may have been made too late. Doubts have also been expressed about Amica's ability to compete with Zelmer, a major Polish producer of small domestic appliances, which has outperformed Amica on the stock market recently. However, Poles' increasing purchasing power and the ongoing housing boom mean that the domestic-appliances sector looks set to remain profitable and healthy for some time to come.