Rising metal costs are causing pricey stainless steel stoves and refrigerators to lose their lustre, at least among the budget-conscious.
Although the stylish finish remains popular among upscale consumers, more shoppers are turning to alternatives that look almost the same but cost less.
Prices of steel and other metals used in stainless appliances have been on the rise, leading many manufacturers to increase their prices. Copper prices have jumped about 40 per cent in the past year on the benchmark London Metal Exchange, and nickel is up 15 per cent.
Earlier this year, Whirlpool raised prices on stainless steel products by as much as 2 per cent and other big US manufacturers are to follow suit. “Because many manufacturers have had to pass through price increases, [stainless steel] has lost some favouritism in the market,” said Jay McIntosh, Americas director of retail and consumer products for Ernst & Young.
“Manufacturers are looking for ways to innovate around that, perhaps creating the same look by using lesser quality metal or by using cheaper materials.”
Stainless steel can add quite a bit to the cost of an appliance. A 25.6-cubic-foot side-by-side refrigerator from Maytag sells for US$1299.99 in white at retailer Sears but the price is US$1629.99 for stainless.
To cash in on the rising popularity of the silvery-grey metal appliance makers are offering products in finishes that mimic the appearance of stainless steel.
“Customers really want the sophisticated look of stainless steel and the faux finishes give them that look at an affordable price,” said Bill Lennie, a senior vice-president at Home Depot.
General Electric has seen rising demand for CleanSteel, a laminate coating that resembles stainless, but does not show fingerprints. Appliances in this finish, which GE launched last year, sell for as much as US$500 less than stainless steel, according to Lynn Pendergrass, GE vice-president of marketing.
At Home Depot, GE introduced a paint finish that resembles stainless for its Hotpoint appliances. A silver metallic side-by-side refrigerator with an ice dispenser sells for about US$900, compared with about US$1450 for a similar-sized GE fridge in stainless.
The finish, launched in late spring to commemorate Home Depot’s 25th anniversary, “gives the value-oriented consumer the opportunity to have the look of remodelling without the cost”, Pendergrass said. Store brochures tout it as “today’s alternative to stainless”.
Despite the rising appeal of the new faux finishes, many consumers still want appliances in true stainless steel, which is valued for its durability as well as its appearance.
But the metal does have drawbacks, such as the visibility of fingerprints.
Brian Maynard, marketing director at KitchenAid, Whirlpool’s high-end appliance brand, said cable shows on cooking and remodelling had inspired many consumers to upgrade their kitchens with pricey metal.
“When people see stainless steel more and more in those types of settings, that drives the demand,” Maynard said. “If you are someone who loves to cook and entertain, you’ll invest in appliances that help you enjoy that.”
At LG Electronics, the look-alike is titanium. Although this material is less resistant to scratches and does not show fingerprints, it can be just as expensive as stainless because of manufacturing costs.
LG is seeing more interest in its smooth black or white finishes, which are less costly than titanium. Best Buy sells an LG refrigerator with a top freezer priced at US$699.99 in white, the titanium version is US$100 more.
Despite the attention the new finishes attract, most consumers stick to tradition when picking colours.
Even for the high-end KitchenAid brand, Maynard said, white remained the most popular appliance colour.
From The New Zealand Herald