Blomberg Cutting Ties to Some Distribution? Arçelik Says Not True. UPDATED 4
NOTE: Official Arçelik Response Below
Blomberg, a subsidiary of Turkish appliance giant Arçelik, is reducing its committment to 2-step distribution. Sources inform us that Blomberg has not signed new distribution agreements with its current but lapsed 2-step distributors, and has changed payment terms to Payment in Advance or L/C, which is another way of saying, "You're dead to us."
What might be driving Blomberg's less than aggressive market strategy to 2-step? Sources indicate that Blomberg had forecast unit sales well above what can be done through a 2-step strategy and has been disappointed by reality, that Blomberg's primary objective is OEM and private label, and Blomberg neither committed the sales and marketing resources nor developed the service infrastructure, required to support a 2-step strategy.
UPDATE: March 17
-Email sent to the address listed on the Blomberg website: info@blomberginternational.com was undeliverable and returned.
-Calling Blomberg at the telephone number listed on the Blomberg website: 800-459-9848 forwarded to distributors for sales, and referred to the selling dealer for service but left no opportunity to reach a Blomberg employee or representative or to leave a message.
UPDATE: March 18
-We reached a Blomberg distributor this morning who confirms the change in payment terms to L/C. A change, it was explained driven by a temporary "glitch" in the supplier's insurance coverage.
-This distributor further called the contract "automatically renewing", and not requiring signature or renegotiation.
-This distributor believes that Arçelik is looking for a company to manage the US 2-step distribution and marketing efforts, hold inventory, and provide financing as was once done by the deceased Ultra 8 for Ariston, and currently done by Eurochef for Fratelli and ILVE.
-We have found the contact information for Blomberg's US rep, and hope to have their perspective shortly. (below)
UPDATE: March 18
-USA Rep says, not true, "We are staying with 2-step distribution."
-Arçelik response expected tomorrow
UPDATE: March 19
-Official response from Arçelik
To Appliance Advisor,
Arcelik Company, parent company of the Blomberg brand, has regretfully noted the information posted on the blog dated March 17. We would like to inform that the info that is posted, do not reflect correct perspective on the Blomberg brand presence in the US market. In fact, Arcelik Company, is commited to be present and enlarge the Blomberg brand activities within the US as well as Canadian appliance market. We do have strong relations with the industry and just recently Arcelik Company has become a member of AHAM to be more active in designing and developing products for the N.American market. Last but not least, Arcelik Company is committed to a stronger presence in the US market by enlarging distribution network across a wider region.
Best regards.
Arcelik Company – Blomberg


Obviously ...
... it was from Turkey ... it was replete with grammatical errors ... I guess translations ain't what they use to be !!!
Translation
Well, i must give them this. they were not shy about firmly stating their position. Most companies from overseas would not have responded as quickly, either. Many other European companies would have dithered for weeks about a response, if they issued one at all.
As for the grammatical errors, I only wish I could do as well in French, one of my country's 2 offical languages as they did...................
Arçelik Responds to March 17 Story
Arçelik provides official response to our March 17 story direct from Turkey HQ.