Case Study #25: Dyson Achieves Close to 50% of Total Vacuum Cleaner Sales in Last Three Years

The founder of the Sea Truck, Ballbarrow, Trolleyball and Wheelboat is inspired to extend his innovative thought process in improving a practical application: Cleaning, and specifically, vacuuming. Thirty years ago, James Dyson notices that a bag vacuum cleaner loses suction power as dust quickly clogs the pores of the bag and blocks airflow. Dyson feels this is a counter-productive process.

Over 5,000 protoypes later, Dyson designs, manufactures and distributes a line of suction-free vacuum cleaners with dual cyclone technology. Dyson vacuum cleaners are significantly more expensive than comparable models, but the company experiences tremendous growth since it expands in the United States. In 2004, Dyson becomes the U.S. number two upright vacuum cleaner brand, and expects to sell 900,000 units by the end of 2004, a 350% growth rate from 2003 (Hall, James. “The Dyson vacuum is cleaning up in the US domestic market”, Telegraph UK, November 2004). Within ten years, Dyson is able to capture share from its direct competitive set with a “function-meets-form” design without lowering its transaction price points to targeted distributors. Since 1993, Dyson’s vacuum cleaner sales to date are 24.5 million units (2007), of which 10 million are sold in the last 3 years (Dyson Press Release “Thought You Knew What a Handheld Could Do? Think Again”. September 2009).

Dyson sells a little less than 50% of its total vacuum cleaner sales during a global economic downturn.

Experts say that the last recession officially starts in December 2007 so declines in gross domestic product begin earlier in the calendar year. So, what are the ingredients of Dyson’s success during an economic downturn? Here are some “stratelytical” insights for their vacuum cleaner sales successes:

• Dyson diversifies into other product lines, such as handheld vacuums, personal fans and hand dryers. This helps boost sales of the flagship offering. For example, someone who decides to wash their hands after using a bathroom at a restaurant is most likely relieved to dry their hands in a Dyson Airblade hand dryer instead of another hand dryer. This creates a positive association for the end-user and makes them consider buying a Dyson vacuum cleaner. This person may be interacting with a specific product, but they are having associations about the entire brand.

• Outbreak fears from E.coli, swine flu and other diseases create an incredible global focus on preventative self-health actions. Investing now in a state-of-the-art vacuum cleaner or hand dryer can minimize the spread of parasitic germs. This may be less expensive than visits to the doctor or hospital in the long-term.

• The complexity of Dyson’s product technology is simply communicated through market-facing touchpoints, ranging from the Dyson Ball in the vacuum cleaners to the airflow power from the Dyson Airblade. Videos of these touchpoints are in the right hand navigation bar. This form of transparency increases level of customer confidence for the Dyson brand. This can be translated into higher sales and profits for the company.

The company’s latest innovation is a handheld fan called the Dyson Air Multiplier. This fan does not have any blades: http://cli.gs/8u5HYR. It is exclusively available at the Dyson online store and certain design stores. Dyson is a company to watch as it “airs” more innovations in the short-and-long-term.