Saturday, November 28, 2009

Money & Business

The Vacuum's Design Moment

By Thomas K. Grose
Posted 5/15/05
Page 2 of 2

Dirty business. Dyson's American success hasn't gone unnoticed by competitors. Main U.S. rival Hoover points out that, based on unit sales, it's still king of the uprights, selling three times as many cleaners as Dyson. Nevertheless, Hoover's sales are down, and it recently launched a series of print and TV ads claiming its WindTunnel cleaners pick up at least 56 percent more dirt than Dyson's. Meanwhile Dyson and Oreck, another manufacturer, are suing each other on competing claims of patent infringement.

So is the swanky cleaner worth an extra couple hundred bucks? Well, two thirds of British Dyson owners go on to buy another one. "The loyalty of Dyson customers is amazing," Piercy marvels. Scores of comments posted on an American blog dedicated to Dysons are rapturous in their praise of the product. ("They rock," was how one writer summed it up.) Consumer Reports , however, found that while Dysons are very good machines, other, less expensive brands clean as well or better.

Headquartered in a sleek glass-and-steel low-rise complex on the edge of this picturesque Cotswolds town some 100 miles northwest of London, Dyson has 1,200 employees here, a third of whom are scientists or engineers (manufacturing is handled in Malaysia). Dyson spent $75.5 million on research and development last year and will spend $94.4 million this year, a strong indication of the importance of R&D to a company based on innovation. Dyson's latest machine, launched this month, is the DC15, nicknamed the Ball. To improve maneuverability, it has no wheels, instead pivoting on a plastic ball that doubles as the motor housing.

Eventually, Dyson wants to introduce a robotic cleaner. His team set aside a prototype three years ago because it would have cost between $3,000 and $5,000, but they're working on reductions. "We think we've done that," he says. "But we made a conscious decision not to go into that market yet." For now Dyson is concentrating on solidifying and growing its American beachhead. Says McLoughlin: "Dyson has enormous upside potential to grow." If so, that sucking sound may soon be even louder.

THE DUST BUNNY

English entrepreneur James Dyson invented the bagless vacuum cleaner in 1978. Today, his company, Dyson, is cleaning up in the United States.

Company founded: 1993

Personal history: Born 1947 in Norfolk. Studied at the Royal College of Art. Also designed the Ballbarrow, a wheelbarrow that runs on a ball, and the Sea Truck, a flat-hulled craft.

Pretax profits: Nearly doubled last year to $194.2 million on sales of $803.9 million. Dyson vacuums sell for between $420 and $620.

Newest product: The Ball, a vacuum cleaner that moves along and pivots on a rotating ball.

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