High prices and new customs: causes of the Essen crisis

Historical manufacturer of kitchen products Essen You are going through a sensitive momentin a market where consumers compare more, pay less, and expect prices to reflect value. The sector agrees on this The company was out of position in the face of a more competitive ecosystemTo the public that has stopped verifying high values ​​and to the business form – direct selling – that no longer has the same appeal as it did a decade ago.

In recent days, the company published A A statement in which it highlighted that only 1.9% of its sales come from utensils made abroadIt is an area, they say, where there is no local technology. He pointed out that he exports 30% of his production to subsidiaries in the region.

Due to the decline in demand in recent monthsCompany I had to adapt its structure and reduce 29 functionsBetween effective and temporary. El Cronista attempted to contact Essen for further information, but the company preferred not to comment further.

last year It was the brand I entered the home appliances department With induction stove. But its strongest bet in this category came with the launch of the kitchen robot that sought to compete with the German company Thermomix.

The price, the difference that has become the limit

In the market it is categorical: The consumer stopped accepting high prices. The emergence of new brands, the increased transparency resulting from online shopping, and the entry of global players are putting a clear ceiling on the traditional values ​​of Essen.

People are not willing to pay more for a product for which they do not see any added value.“, male Nahuel BenitezDirector of Marketing and Communications Hudson kitchen appliancesWho is having a positive year despite the context. His company grew – with a presence in supermarkets, wholesalers and a strong business at Mercado Libre Between 25 and 30% in units It maintained investments in marketing, even with weak consumption.

“It’s been a complicated year, however Those with strong brands and stable pricing strategies have been able to sustain themselvesHe noted that it provides market data: In 2025, the total sales of this category will be closed Between 5% to 10% In units compared to 2024. The opportunity is there, but not for everyone.

More competition, more comparison

The increase in the number of players has also hit Essen. Kankaia project that combines national production and imports, and lived The first six months of strong growthwith sales being conducted in A 90% through e-commerce and marketplaces.

Whoever sets a higher price is excluded from the market“, he sums up Thomas Beutinfounder of the brand. He says consumers today compare every purchase, driven by platforms such as Timo also Shanewhich offers products at low prices and fast shipping.

The company is preparing lighter lines for 2026, potential developments in stainless steel, and trips to China to explore new sectors. “Demand decreased This is why high prices are not validated. But also There is more supply“, he points out.

Direct sales, a format that has lost appeal

For the city of Essen, there is another structural problem Relying on direct salesa model that, although still attractive, no longer defines the business as it once did.

according to Guillermo D’AndreaProfessor of Marketing at IAE Business School, Purchasing behavior has completely changed. “People buy online, especially durable goods,” he explains. “The comparison is instant and time has become a critical variable.”

Classic direct sales – based on meetings, demonstrations and dealer networks – have become something else: “Today’s sale for Influencers. “But when the price is high, it doesn’t happen with two clicks,” says D’Andrea.

For the mass sectors, friction is crucial: “There is Chinese players win“Not for quality but for price and speed.”

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