Eye popping picture quality, staggering size.

Transcription

90”
80”
70”
60”
Eye popping picture quality, staggering size.
Canada’s leader in big screen TVs.
Vol. 38 No. 4
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O N E
USB Digital-Audio Converter
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CONTENTS
Volume 38, Number 4, April 2013
6
EDITOR’S NOTE
A Year of Milestones .................................................................................................................................................................. 5
AUDIO VIDEO
It’s a Wireless World
Music streaming has become integral to the AV world, and mobile devices are essential tools, both in
the home and as part of the store demo.
By Gordon Brockhouse ............................................................................................................................................................... 6
Canada’s Consumer Technology
Business Journal
PUBLISHER
Bob Grierson
ASSOCIATE PUBLISHER
EDITORIAL DIRECTOR
John Thomson
[email protected], Ext: 225
V.P. SALES
Mary Thomson Grierson
EDITOR
Christine Persaud
12
20
28
CONTRIBUTING EDITORS
Peter Burian, Vawn Himmelsbach,
Wally Hucker, Ted Kritsonis, Frank Lenk
CREATIVE DIRECTOR
Erik Devantier
OFFICE MANAGER
Jeanette Bottoni
Second Screens: There’s An App for That
Content providers are jumping on board the second screen trend, but hardware manufacturers are
also finding ways to both use and create apps that help bring further excitement to the category.
By Frank Lenk.................................................................................................................................................................................12
Going for Control......................................................................................................................................................................18
EDITOR-AT-LARGE
Gordon Brockhouse
ASSISTANT EDITOR
Adam Grant
CONNECTIVITY & CONVERGENCE
GOING MOBILE
Get Creative
Smartphones and tablets aren’t just consumption devices; they have morphed into sophisticated
content creation tools for everything from photos, to video, music, and even mobile art.
By Gerry Blackwell ......................................................................................................................................................................20
Mobile Creativity Accessories: What’s Out There? ............................................................................................26
CUSTOM CORNER
Outdoor Entertainment
We look at both wired and wireless options for outdoor audio and video, and the considerations that
need to be made when bringing AV outside.
By Gordon Brockhouse ............................................................................................................................................................28
RETAIL TIPS
Targeting Target
34
Target is poised to be major competition for big boxes, chains, and independents, alike. Industry
experts weigh in on the retailer’s strategy and impact, and we analyze Target’s first few store openings
north of the border.
By Wally Hucker ............................................................................................................................................................................34
APPLIANCES
Small Appliances are Booming: Are You On Board?
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[email protected]
42
Research firm NPD calls small appliances the “bright spot” in consumer electronics retailing, with the
category continuing to post strong retail growth. Are you missing an opportunity to dip your hand
into that pot?
By Christine Persaud (additional reporting by Adam Grant) .............................................................................42
SHOP TALK
New Mississauga store for Lastman’s Bad Boy; MasterPass Digital Wallet arrives in Canada; and Bruce
Schepers and Pioneer Canada part ways are just a few of this month’s headlines.
By Wally Hucker ............................................................................................................................................................................46
46
MARKETNEWS
The Mobile Phone: A Retrospective ......................................................................................................................................56
Exclusive: Q&A with Dr. Martin Cooper ................................................................................................................................56
New headphones, receivers, soundbars, docks at Yamaha dealer show..............................................................58
Sony highlights 4K, connectivity at Canadian dealer show .......................................................................................58
Ferrari by Logic3 intros FSI Air speaker dock ....................................................................................................................58
Copyright 2013. Marketnews is published monthly by
Bomar Publishing Inc. All rights reserved. The contents of
this publication may not be reproduced in whole or in
part without the written consent of the publisher.
Publications Mail Registration Number 40015963.
GST Registration R140396912. ISSN: 0714-7422.
The views expressed by advertisers are not necessarily
those held by the Publisher.
Positive Marketing undergoes restructuring ...................................................................................................................59
56
TomTom intros two new GPS sport watches....................................................................................................................59
PayPal coming to an LG TV near you ....................................................................................................................................59
Yamaha’s Ron Zupka retires......................................................................................................................................................59
New network AV receivers from Marantz...........................................................................................................................60
New Harmony remote can also control your Philips Hue lights..............................................................................60
PM40015963
Panasonic announces GF6 Micro Four Thirds compact ..............................................................................................60
MARKETNEWS SUBSCRIPTION
Personnel Appointments ..........................................................................................................................................................60
58
Manage your Marketnews
subscription by scanning this
QR code.
Have $5K to spare? Miele’s new Combo Convection-Steam Oven might be for you....................................61
Distribution Appointments ......................................................................................................................................................61
FOCUS ON
Scot Kerek is enjoying every moment as he continues to help build AVAD Canada and its vendor
model within the CE/CI channel.............................................................................................................................................62
4 MARKETNEWS
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If you haven’t been to
marketnews.ca,
here’s what you’ve been missing...
MARKETNEWS.ca
EDITOR’S NOTE
ONLINE EXCLUSIVES
Adam’s App of the Week: Canadian rock group Rush
was recently inducted into the Rock and Roll Hall of Fame,
and also came out with a fancy new app. We gave it a
look and a listen: “The Rush app is the perfect companion
for any fan that loves to hear Geddy Lee, Alex Lifeson, and
Neil Peart play sonically complicated, lengthy tracks about
purple monkeys flying around on dishwashers in a battle for
intergalactic supremacy...at least that’s what I make of it all.”
Travel Tech: When travelling, it is important to map out the areas and attractions you
want to check out. For art fans, many nicely-tuned Websites and apps provide great
pre-museum visiting resources: “Many include virtual tours, videos and audio commentaries
on displayed art works, including those in special exhibits. Even private commercial galleries, like the Gagosian in New York (and London), are getting into the mobile app game. The
Gagosian iPad app (free), a multimedia magazine about the gallery’s exhibits, is absolutely
gorgeous.”
Ted’s Take: Ted Kritsonis recently visited Amsterdam to check out an array of new
products from TomTom: “With journalists from around the world on hand, TomTom’s top
executives revealed some aspects of the company’s new focus centred on the slogan ‘Where
you want to be’ instead of ‘Where you want to go.’ In short, TomTom wants to be the “brand of
choice for everyday athletes.”
GADGET TALK BLOGS
A recent study suggests that children exposed to too
much time with tablets could require a heavy digital
detox: “My almost 16-month old is an expert at the
iPad/iPhone. He knows how to swipe to unlock it, how
to navigate through screens and photos, how to click on
an app, then click out of it. If we’re at a restaurant and
he’s getting bored, I won’t hesitate to let him play one of
his educational alphabet or number learning apps for a
short time. But what I don’t do is replace this for personal
interaction.”
Photo by: Jomphong
REVEWS
Are you a fan of remote control helicopters?
Then perhaps the Crimson Eye chopper
is something you should check out. Our
reviewer let it fly around the office, and offers
his impressions.
VIDEOS
Showrooming has become a delicate
topic to many in retail who now have
to worry about how to keep shoppers
buying from them, instead of etailers.
Recently, Marketnews staff had a round
table conversation on the matter.
DAILY NEWS
Bill Clinton is the latest big name to make it onto
Twitter. Find out who enthusiastically encouraged
one of the most notorious Presidents in U.S. history
to join the micro-blogging site. Read more about
this at:
www.marketnews.ca
DROP BY DAILY for breaking news, exclusive features, blogs and video
footage of industry events. Please send your comments, concerns, or
questions regarding the Website to:
[email protected].
MARKETNEWS MOBILE APPS can be downloaded at www.marketnews.ca
A Year of Milestones
It’s easy to get nostalgic in this industry. Even those who haven’t worked in CE for the past
20 or 30 years can still recall when some of the biggest products and technologies were
revealed, and how they impacted your life. Many of these innovations influenced not just
the way we use technology, but the way we live day-to-day.
This year, especially, is one that marks a number of milestones. It was in April of 1973 that
Dr. Martin Cooper of Motorola made the very first call from a mobile phone. Four decades
later, the device once known as the “brick” has evolved into the ultra-slim gadget that acts
more like a miniature computer, with voice calling far down the list of its endless capabilities. In a special feature in this issue, we chat with Dr. Cooper, now 84, to reminisce about
those early days, and look toward the future in mobile.
A decade after that, a technology called the Compact Disc (CD) officially launched in the
U.S. and Europe, accompanied by Sony’s CDP-101 CD player. It wowed consumers as they
marveled at how tunes could fit on one side of this small digital disc, and you could skip
to the beginning of each track with the push of a button as the circular object spun at
amazingly quick speeds. It was the year prior (1982) when the CE industry actually agreed
on the universal CD format, and the first album was released: Billy Joel’s 52nd Street. In its
first year, 30,000 CD players and 800,000 CDs sold stateside.
The following year marked another important step in the evolution of the music industry: the debut of the first portable CD player. In 1984, the Sony D-50 Discman was that
generation’s iPod, ushering in a brand new way of listening to music.
Bob Menzies of Beyond Ink & Computers shares an especially nostalgic story of the anniversary of the first radio broadcast of the CD in Canada. He recalls to Marketnews that, in
April 1983, he and his brother Dave had a store in Vancouver, BC called Big Bird Sound.
“At the time,” he says,“we were the largest Hitachi audio dealer in Canada. We borrowed
their prototype CD player from the national dealer show in Vancouver. As soon as the rep
left us with the prototype (with one sampler disc), Dave & I took it straight to CFOX Radio
where Africa by Toto was the first CD tune broadcast in Canada. I have a cassette recording
of that crazy interview and broadcast.”
The CD seemed to be a marvel that could never be matched. But 20 years into its run
came a formidable next-generation competitor: iTunes.
The first iTunes Store launched in April 2003, a decade ago, to complement the, by then,
already widely popular iPod. The digital download store offered more than 200,000 songs
for a pay-per price of $0.99 each; something that was unheard of for entire albums. Music,
after all, was supposed to be sold as a package, with a pull-out paper insert, and “B side”
tracks that could only be heard by purchasing the whole she-bang. The iTunes model received plenty of pushback from the industry. Regardless, iTunes represented a major step
toward what consumers wanted, and in combating the rampant illegal pirating of music
online that preceded it.
By February 2006, over one-billion songs had already been sold via iTunes. Today, that
figure has skyrocketed to baffling heights; iTunes was even named the number-one
music retailer in the U.S. in April 2008. Downloadable, and now even streaming, music, has
become the standard today.
Menzies reminds us that the CD was introduced to help the audio business recover
from the onset of video. Funny enough, we almost find ourselves full circle three decades
later, as the hoopla surrounding high-definition television, 3D, Smart TV, and 4K technology, is being complemented by a host of networking features in audio gear that’s meant
to, in large part, enhance the listening experience with high-quality downloaded and
streamed tunes, and get this generation of consumers interested in superior sound once
again.
We’re in the midst of big changes in CE and especially retailing, as the industry looks for
the next right step. It’s perhaps a sign that Africa, the first song to be broadcast on CD in
Canada, isn’t the typical ‘80s track. It includes a complex set of beats and rhythms, with
everything from a bass drum, snare, hi-hat, and congas, to a cowbell and shaker. It’s
perhaps much like the CE industry is today, with a mish-mash of ways to consume and
share audio and video content that must eventually work together in order to create that
cohesive, rhythmic beat; that perfect song. I can’t wait to sing it.
Thanks for reading.
— Christine Persaud
FOLLOW US ON...
MARKETNEWS 5
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It’s a Wireless World
AUDIO VIDEO
By Gordon Brockhouse
Like many people who work in the CE industry, I’m
frequently buttonholed at social gatherings by folks who
want to ask tech questions. That happened at a recent
Sunday dinner. My partner’s son-in-law was looking for a
way for his wife to get music easily in their living room,
without having to fumble for discs or remote controls.
I asked if they have smartphones: he does, she doesn’t.
That was a prelude to one possibility. If they had music on
an iPhone or Android device, it would be easy to stream it
to a properly equipped sound system. Just navigate to the
songs you want to hear, just as you do when you’re listening through headphones, then tap an icon to send it to the
sound system. No fuss, no muss.
This was news to him. This is interesting, because he’s
not at all unsophisticated technically. Quite the contrary:
he runs a successful Internet business from his home,
where he has a robust wireless network installed. But he
had no idea how easy it is to stream music wirelessly to a
good-sounding speaker system from a handheld device.
There are lots of customers, and potential customers,
in this position. “Customers are looking for a solution for
playing music from smart devices,” comments Jeff Earl,
Director of Sales for NAD at Lenbrook Canada. “Half of
the market now has a smartphone. That’s a very broad
customer base.”
It’s not just iTunes libraries people want to listen to, Earl
notes. Internet radio and online subscription services are
also important sources of music for lots of listeners. Adds
Erik Nielsen, Senior PR Manager for Sonos, Inc.: “Pandora
and streaming services are among the most music popular
sources for our customers. Initially, there was a reluctance
to give up owning music. As people discover the joy of
discovering music, that’s not as much of a barrier.”
The Brighton WBT 50 Bluetooth speakers from Sinclair Audio feature Bluetooth wireless connectivity for streaming
from any Bluetooth-equipped mobile device. Other connectivity options include optical digital audio, RCA analog audio, and 3.5mm mini jack. Each enclosure houses a 5.25” woven fiberglass woofer and 1” silk dome tweeter, powered
by a built-in 50-watt amplifier.
offers two Jambox portable Bluetooth speakers, and Braven
(distributed in Canada by Erikson Consumer) has five,
including a rugged model with built-in LED flashlight and a
water-resistant model that can be used lakeside or poolside.
All of the foregoing are battery-operated portable speakers. Many of them have built-in microphones, so they can
work as speakerphones. When a call comes in, the music
pauses, then resumes when your call is finished.
There are other form factors as well. Boston Acoustics’
TVee Model 30 soundbar system has built-in Bluetooth
for music streaming. Erikson Consumer offers Bluetooth
bookshelf speakers under its Sinclair brand. Arcam has a
Bluetooth-equipped DAC, the rBlink. NAD’s Viso 1 speaker
dock combines a 30-pin iPod dock with wireless Bluetooth
connectivity. For 2013, Yamaha is offering Bluetooth versions of its popular desktop music systems. Tivoli offers
Bluetooth-equipped table radios. Yamaha and Pioneer
have Bluetooth dongles for their network AV receivers.
Before you can stream music to a Bluetooth speaker,
you have to pair the device and speaker. The process is
the same as pairing a phone with a Bluetooth headset. Put
the speaker in Discover mode (usually this just involves
pushing or holding a button), then go into the Bluetooth
section of the phone’s Settings menu, and let the phone
find the speaker.
Some new models, like Sony’s SRS-BTV5 speaker ball
and Samsung’s DA F60, automate the pairing process with
some Android phones. They incorporate NFC (Near Field
Wireless Options
Wireless audio products come in all shapes and sizes, at
prices from under $100 to many thousands. They range
from inexpensive single-piece Bluetooth speakers, to wellequipped AV receivers, to wireless DACs, to whole-home
music distribution systems. Virtually all wireless audio
products use either Bluetooth or Wi-Fi to stream music
from mobile devices; some employ both technologies.
Bluetooth: CES 2013 was awash in Bluetooth speakers, from established CE brands like Klipsch, JBL, Sony and
Samsung; from mobile accessory makers like SuperTooth;
from multimedia specialists like Edifier and Logitech; and
from emerging brands like Coby. Mobile specialist Jawbone
Jeff Earl, Director of Sales, Lenbrook Canada: “Dealers aren’t demo’ing to the extent they should. A salesperson
should be able to take the customer’s phone, pair it with a speaker, and show the customer how to use it.”
Overview
• With Canadian smartphone penetration over 50%, music streaming has become an important feature
for all kinds of audio products, including portable speakers, AV receivers, desktop music systems and
audiophile DACs.
• To sell streaming audio products, salespeople have to know what kinds of mobile devices their customers
are using, and how they listen to music.
• A seamless demo is a must with streaming audio products. This can be a challenge, because many
products have setup quirks that will show up in the store, but not in day-to-day use.
6 MARKETNEWS
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Next level of freedom. Next level of control.
Yamaha Network A/V Receiver Controller App for iOS and Android
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MNAPR13.indd 7
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AUDIO VIDEO
Communications). Tap a mobile device running Android
4.1 Jelly Bean or later to the speaker, and the two devices
will automatically pair. (This won’t work with iOS devices,
because Apple has not yet incorporated NFC into the
iPhone or iPad.) After the two devices are paired, you can
choose how you want to hear your music in your device’s
music player software.
Wi-Fi: Wi-Fi can also be used for audio distribution.
It’s the basis for Apple’s AirPlay protocol, but also has relevance in the Android and Windows worlds (more on that
below). AirPlay works on iOS devices (iPhone, iPod touch,
iPad) running iOS Version 4.2 or later, as well as any PC or
Mac running iTunes.
AirPlay-capable audio products come in all kinds of form
factors, including speaker docks, compact music systems,
self-contained speakers, AV receivers and even audiophile
DACs. Arcam’s forthcoming airDAC has built-in Wi-Fi (and
an Ethernet port as well) and AirPlay support. And of course,
the Apple TV media adapter and AirPort Express network
adapter also support AirPlay (for both audio and video).
With AirPlay, as long as the iOS device (or computer
with iTunes) and AirPlay sound system are on the same
network, you’re good to go. Tap a small icon and see a list
of all the AirPlay speakers on your local network (as well
as the device’s headphone output). Select where you want
the music to go. The playback device will turn on and
switch to the appropriate input, and streaming will begin
within a few seconds. With iTunes on a PC or Mac, you
can use AirPlay to stream to multiple devices, controlling
playback volume independently on each.
As noted, Wi-Fi can also be used for streaming from
Android devices, as well as Windows devices (not just PCs,
but smartphones and tablets as well) to DLNA (Digital Living Network Alliance) compliant playback devices. Those
include smart TVs and many AV receivers. The process is
similar to AirPlay. If your mobile and playback devices support DLNA, you can send digital content (in many cases,
video as well as audio) from the mobile device via Wi-Fi.
As with AirPlay, in the player software, the DLNA playback
device will appear as an option. Select it to begin streaming. Often, the process can work in the reverse direction,
allowing you to pull content from the mobile device onto a
playback device. From the playback device, you’ll be able
to navigate to the desired content, and then select it to
begin streaming.
Odds and ends: There are a couple of other wireless
audio distribution technologies. Arcam uses Kleer technology on some models, including its rCube iPod speaker
system and rDAC-kw DAC. That enables them to receive
uncompressed PCM audio at 44.1kHz/16bits from the
Boston Acoustics’ TVee Model 30 soundbar system has built-in Bluetooth for music streaming from mobile devices.
Available in six vibrant colours, the Braven 570 Bluetooth speaker provides 10 hours of playback time per charge. It
also functions as a speakerphone.
rWave and rWand+ wireless dongles. The rWave attaches
to the USB port of a PC or Mac, and the rWand+ to the
30-pin connector on an iPod, iPad or iPhone (the Lightning
connector is not supported). The rDAC-kw will be supplanted by the AirDAC (as well as the rBlink for Bluetooth fans).
NAD’s DAC 1 Wireless DAC uses a proprietary wireless technology to send uncompressed PCM audio at
48kHz/16 bits from a transmitter that fits to the USB port
on a PC or Mac to a DAC/receiver with analog and coaxial
digital outputs.
Rather than using the user’s Wi-Fi network for its popular
whole-house music-distribution system, Sonos uses its
own wireless mesh network. Every device in a Sonos
system is a transmitter and a receiver. This extends range
and reliability, because any device only needs to be able
to communicate with the closest Sonos device, rather than
the network router, which may be much further away.
These are all special cases, however. Bluetooth and
Wi-Fi/AirPlay are the dominant technologies for wireless
music distribution.
Sony’s SRS-BTX500 portable Bluetooth speaker features NFC technology, allowing
one-touch connectivity to smartphones running Android 4.1 Jelly Bean or later.
Tradeoffs
Bluetooth and Wi-Fi each have advantages for distributing audio. Proponents of Bluetooth point out that it works
with both Android and iOS devices (and BlackBerry and
Windows Phone, for that matter). AirPlay is Apple-only.
“There’s a growing number of Android devices in the
market,” observes Jason Zidle, Director of Marketing and
Product Development at Erikson Consumer. “The strength
of Samsung has changed a lot of things. That’s why I’m a
big believer in generic technology like Bluetooth.”
Adds Lenbrook’s Earl: “We’re embracing Bluetooth
because of its universal nature.” At CEDIA 2012, NAD announced an AirPlay version of its Viso 1 music dock, but
that model “is probably not coming to Canada,” Earl says.
Lenbrook Canada will continue with the acclaimed Viso 1
(and the follow-up white version).
Connect anywhere: Another advantage of Bluetooth
is availability. Most AirPlay devices work in infrastructure
mode; streaming occurs through a router, so the source
Arriving in Canada in May, the new Klipsch Music Centre KMC 3 Bluetooth stereo
speaker contains a 5.25” woofer powered by a 35-watt amplifier and dual 2” full-range
drivers powered by a 2x15-watt amp. It can operate from AC power or eight D cells.
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AUDIO VIDEO
Form Factors
Until the last couple of years, the main method for playing
music out loud from a mobile device was an iPod dock.
That could take the form of a standalone portable system
with built-in dock, or an accessory dock that connected to
a home audio system. The smartphone and tablet explosions changed that.
As Earl observes, “Docks have become passé.” All it takes
to verify Earl’s statement is a quick look at some recently
introduced speaker docks. Something’s missing: the dock
connector. They may have AirPlay or Bluetooth, and quite
a few (like Polk’s Woodbourne) have both. And most have
iPod-direct USB ports that will accept audio over an iPhone/
iPod/iPad cable, and charge the device at the same time.
These strategies neatly address the fallout from Apple’s
adoption of the Lightning connector on the iPhone 5 and
latest iPads. With USB and streaming connections, the new
dock connector becomes a non-issue. “The change in dock
connector helped create an opportunity for wireless products
and USB,” notes Andrew Murphy, Director of Marketing at
Pioneer Electronics of Canada, Inc. “We don’t have any traditional docking products. But almost every product we have
for home and car has full integration with Apple devices.”
Wireless streaming is changing the way audio is demonstrated and sold at retail. “We’re transitioning from the
speaker demo room, to streaming products throughout
the store,” Earl says. That’s true in every department that
carries audio products, from portables to home theatre.
For example, take AV receivers, where AirPlay has
become a fixture for several key vendors. “AirPlay is table
stakes in any AV receiver over $350,” Murphy says. According to Pioneer Canada’s internal estimates, between
80,000 and 100,000 of the 170,000 AV receivers sold
in Canada in 2012 were AirPlay-capable. Like Yamaha,
Denon and Marantz, Pioneer is offering AirPlay on all its
AV receivers for 2013, except for entry-level models.
Not all receiver manufacturers have jumped on the
AirPlay bandwagon, however. Holdouts include Onkyo,
NAD, Arcam and Harman/Kardon. Wireless connectivity
is something that retail buyers look for on receivers, says
Erikson’s Zidle; but that doesn’t mean it’s top-of-mind with
end-users. “Apple is a super-strong force,” he says. “But if
I was a buyer, AirPlay wouldn’t be the be-all and end-all.
Bluetooth is much more flexible. For AV receivers, the holy
grail will be wireless audio and video.”
Streaming in the Store
The recipe for selling wireless audio products is familiar:
know your customer, and know your products. The first
step, Earl says, is listening and keeping an open mind. Don’t
Pioneer’s XW-SMA4 wireless speaker features AirPlay support, with a Wireless Direct option that allows
streaming from iOS devices without going through a
router. The three-way system has a 4” woofer, dual 3”
midrange drivers, and 1” tweeter.
and playback devices need to be on the same local area
network for AirPlay streaming to work. That’s certainly
fine at home; but what if you want to stream wirelessly
when you’re out of range of your home network, or when
you’re in a location where no Wi-Fi network is available?
That’s possible with Bluetooth, because it’s a peer-to-peer
technology. But it’s not with most AirPlay products.
The operative word is “most.” Pioneer’s SMA-series speakers have a Wireless Direct mode that allows for a direct
peer-to-peer Wi-Fi connection between the player and
speaker. You activate this mode by pushing a button at the
back of the speaker. Once that’s done, the speaker creates
a local hotspot that shows up in the list of available Wi-Fi
networks in the Settings menu in iOS. Choose that network,
and you’re connected, wherever you happen to be.
A similar feature is available on Polk’s gorgeous Woodbourne speaker, which will ship in Canada in August for
$649. When AirPlay Direct mode is selected, the Woodbourne shows up as a playback option when you touch
the AirPlay icon on an iOS device. This attractive feature
brings much of the ease of use to AirPlay that NFC brings
to Bluetooth.
Sound quality: AirPlay has a theoretical advantage
over Bluetooth in terms of sound quality, because it
transmits uncompressed 44.1kHz/16-bit PCM digital audio,
quite literally CD-quality. I use the qualifier “theoretical,”
because even through AirPlay sends uncompressed audio,
the audio files that most people stream over AirPlay are
compressed to begin with.
Some high-performance Bluetooth audio products support the apt-X codec, which uses less compression than
the SBC (Sub-Band Coding) scheme that’s standard for
Bluetooth stereo audio playback, for better sound quality. To derive these benefits, both the mobile device and
playback device must have apt-X support. An increasing
number of speakers (including NAD’s Viso 1, Klipsch’s
KMC 3 and Polk’s Woodbourne) support apt-X. So does
Arcam’s rBlink DAC. But the number of smartphones and
tablets with apt-X capability is still quite limited.
Yamaha’s TSX-B232 desktop music system has a built-in CD player, legacy iPod dock, front USB input that’s
compatible with the iPhone 5, plus Bluetooth connectivity for streaming from mobile devices.
Sonos’ whole-home music systems use proprietary mesh wireless networking to distribute audio. The systems, which
include a subwoofer, soundbar, amplifiers and self-contained full-range powered speakers, let users stream locally
stored music, Internet radio or subscription services throughout their home.
10 MARKETNEWS
MNAPR13.indd 10
4/30/13 2:09 PM
AUDIO VIDEO
Arriving late this summer, Polk’s gorgeous Woodbourne speaker has an AirPlay direct mode, which allows direct
wireless connectivity to an iPad, iPhone or iPod touch. The well-connected system also features apt-X Bluetooth connectivity; plus Ethernet, optical and analog ports.
let your prejudices colour your recommendations. If you’re
an Apple person and your customer is an Android user,
don’t push AirPlay. “Dealers have to be agnostic, and learn
to restrain expressing their opinion about which bandwagon
they’re on,” he cautions. “It’s the customer’s decision.”
Another key point is applications. For most customers,
playing music libraries will be a key application. But many
people may also be interested in Internet radio and streaming services. It’s as easy to shoot Internet-delivered music to
a Bluetooth speaker as it is to send locally stored music.
With AirPlay, it’s possible as well. The TuneIn Internet
radio app, for example, lets you select an AirPlay speaker
as the destination. And some AirPlay products have apps
for other services built-in. Pioneer’s SMA speakers, for
example, can be controlled from Pioneer’s Control app,
which has a vTuner Internet radio and Pandora functions.
And of course, there’s the demo. “Dealers aren’t demoing to the extent they should,” Earl says. “A salesperson
should be able to take the customer’s phone, pair it with a
speaker, and show the customer how to use it.”
It’s important that the demo go smoothly. For that to
happen, dealers have to know the quirks of the products
they’re selling, because these can cause hiccups with both
Bluetooth and AirPlay.
For example, pairing a customer’s phone with a Bluetooth speaker may be problematic if the speaker has already been paired with other devices. “You need to know
capabilities of product,” Earl says. “How many devices can
be paired to the speaker at one time? With some products,
you have to force speaker to forget a device so you can
add more. With others, if the phone is not in the vicinity,
it’s effectively forgotten.”
Murphy says demo challenges have also come up with
Pioneer’s SMA wireless speakers. “We’ve had a great
response with our dealers supporting these products,” he
says. “But sell-through has been slower than initial load-in.
We have to educate consumers as well as dealers.”
Part of the challenge is addressing all the connection
options these products offer: USB, AirPlay, DLNA, Wireless
Direct, and HTC One (for one-touch DLNA connectivity
with HTC smartphones). To that end, Pioneer has seven
YouTube videos on its site that explain different connection options.
And it’s looking at ways of helping dealers with connectivity challenges that can come up in the store, colouring
the customer’s perception of the product. For example,
many dealers completely power down display areas at the
end of the day. If you’ve put an SMA speaker in Wireless
Andrew Murphy, Director of Marketing, Pioneer Electronics of Canada, Inc. “The change in dock connector
helped create an opportunity for wireless products and
USB. We don’t have any traditional docking products.
But almost every product we have for home and car has
full integration with Apple devices.”
Direct mode to allow peer-to-peer connectivity with mobile
devices, the speaker will retain that setting if you turn off
its power switch. But if you cut AC power, the speaker reverts to infrastructure mode, and wants to connect through
a router. That could add an extra step during a demo,
which would make the customer think the product is
harder to use than it really is, even though the issue would
not likely arise at home. To address this, Pioneer Canada is
considering providing dealers with routers for demo areas.
“If you have to set it up in front of the customer, you
give the appearance of complexity,” Murphy explains. “We
want to make sure the demonstration is as intuitive as it
will be at home.” That’s just what a customer looking for
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Second Screens:
There’s an
App for That
By Frank Lenk
What’s the hottest new feature in audio and video? It’s not
something that’s built into the AV gear itself, like 3D, or
a ‘smart’ interface. It’s the ability to integrate with tablets
and smartphones. These ‘second screens’ are having a
huge impact on the living room ecosystem. And they’re
just getting started.
Traditionally, audio and video have been consumed
on dedicated devices. But these media are now becoming fluid, readily transferred between various playback
devices, large and small.
At the same time, handheld devices are invading the
living room, and opening up new potential in the old AV
gear. They’re freeing receivers, Blu-ray players and TVs
from the constraints of a simplistic interface. And they’re
allowing users to interact with entertainment systems in
new ways, to unlock entirely new capabilities.
Just about every company involved with consumer electronics has a stake in this transition. But there are really
two separate sides to the story: content and control. We
spoke with major players from both sides: Canada’s two
major content providers, as well as a number of the leading audio and video hardware manufacturers.
Content Providers
Content delivery is rapidly shifting from a TV-centric approach, to one that embraces multiple devices. “Our strategy
is quite simple,” says David Purdy, Senior Vice President,
Content, Rogers Communications. “To take our video offering, and make it go across as many devices as possible.”
Rogers Anyplace TV is the service that’s most directly realizing that goal. It’s available to all Rogers Cable TV, Internet,
wireless and Home Phone customers, on the major secondscreen platforms: iOS, Android and BlackBerry devices, as
well as on personal computers and game consoles. Recently, Rogers partnered up with LG to offer an Anyplace TV
app through its 2012 and 2013 Smart TVs, including OLED
and Ultra TV. The first on-demand video app of its kind in
Canada, this will allow Rogers customers to authenticate
their accounts directly from the LG Smart TV, then continue
watching streaming content directly on the TV.
The service offers various types of content: TV series on
One new way of connecting smartphones and tablets to the home theatre is through MHL wired connections. This
allows for transmitting 1080p video and multi-channel audio from a compatible mobile device through a compatible
receiver, like Yamaha’s RX-V675, then to the HDTV.
demand, paid movie rentals and ‘live’ TV channels. Users
can view Anyplace TV over any Internet connection, but
as with Rogers’ previous on-demand services, access to
premium content is tied to subscriptions via Rogers cable.
Content is being expanded rapidly. “We now have some
16,000 titles as part of Rogers Anyplace TV,” says Purdy.
“Most studios, most sports leagues are supportive.”
At the same time, device coverage is also broadening.
“We’re talking to Microsoft, and all the games-console
manufacturers,” says Purdy. “To all the smartphone manufacturers. To all the TV manufacturers.”
Rogers is trying to anticipate how consumer preferences
are changing. “One of the major trends is binge-viewing,”
says Purdy. For example, suppose a viewer discovers a
show like Dexter. Historically, there would have been no
easy way to catch up. Now, there are on-demand or subscription options that let viewers get aboard in a hurry.
Purdy notes that services like HBO Go already offer “lookback,” with a library of one or more seasons of a show available at one time. More and more content will be delivered
using subscription-based video-on-demand (SVOD), and
other new models. The licensing deals for this are being
worked out, and monetization schemes established.
The latter is particularly important. “We’re dealing with
studios, sports leagues, content networks,” says Purdy. The
old system of advertising based on ratings is obviously not
a good fit for these new delivery models. “It’s something
the industry needs to figure out, immediately.”
Up until now, Rogers’ video-on-demand service has been
essentially an adjunct, a bonus feature for cable or Internet
subscribers. But going forward, it could become the tail
that wags the dog.
Bell’s approach is very different. Its second-screen video
service, Bell Mobile TV, is available only to users on a Bell
wireless data plan, and runs an additional $5 per month
for 10 hours of viewing. However, Nauby Jacob, Vice President of Services, Products and Content, Bell Canada, notes
that you won’t incur additional bandwidth charges for the
viewing over and above the $5 fee.
The Mobile TV app is available for iOS, Android and
BlackBerry. The service currently carries about 30 channels, including both ‘live’ broadcast TV from major networks such as CTV, CBC and TSN, as well as on-demand
content. “You can catch up with anything you missed from
last night,” says Jacob.
“There are a lot more channels to be made available,”
says Jacob. “Every day we add an incredible amount of
new content.”
Bell Mobile TV is being consumed on both smartphones
and tablets, says Jacob. Numbers are higher on smartphones, simply because there are more of them out there.
However, Jacob notes that about twice as much video is
consumed per tablet. Sessions also tend to be longer; on a
phone, 10-minute viewing sessions are common.
Jacob emphasizes that Bell Mobile TV is actually adding
to the existing audience. “People are watching in more
places, on more devices,” he says. “For the last little while,
we’ve had 11 to 12 million TV subscribers. It’s been pretty
Overview
• Audio and video is becoming fluid, readily transferred among various devices, not just displayed and
controlled via the TV.
• Mobile devices, like smartphones and tablets, are finding their way into the living room, and opening up
new potential for AV gear.
• Content providers field their own apps, but hardware manufacturers are jumping on board, too, focusing
on remote control software within AV products.
• Apps are becoming an important sales tool in promoting the second screen experience, but consumers
need to see how they work.
12 MARKETNEWS
MNAPR13.indd 12
4/30/13 2:09 PM
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Screen images simulated. No “ultra high definition” or “4K” video content is currently available. No broadcast or other standard currently exists for “4K” or “ultra high definition” television and the 84LM9800 may not be compatible with such standards if and when
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Rogers’ Anyplace TV brings a second screen experience to Rogers customers, accessible via iOS, Android and BlackBerry devices, as well as computers and through gaming consoles.
consistent. Before the end of 2013, we’ll have one-million
mobile video subscribers. That’s all additional viewership.
We’re adding 10 per cent to a number that has been growing at a slow rate.
“Our job as Bell is to make it easy for people to get access,” Jacob continues. “We’re actually finding that already
about 30 per cent of customers are aware of Bell Mobile
TV. It’s becoming a big factor in how people choose a
carrier. It’s an important part of our strategy. It shows the
quality of our wireless network.
“Canada is in the forefront of this technology,” he adds.
“We’re ahead in terms of the number of subscribers, in
accessibility and in pricing. Canada is also advanced in the
type of TV content being offered.”
A third approach, and one that presents plenty of competition for the traditional providers like Bell and Rogers,
is represented by Netflix Inc., standard-bearer for Over
The Top (OTT) Internet-based video services. Without a
distribution network of its own, the company has to work
harder to get viewers’ attention, regardless of platform.
“We’re still finding a lot of people not discovering they
can get Netflix on a TV,” says Joris Evers, Director of Global
Corporate Communications, Netflix Inc. Canada was the company’s first international foray, and has proved to be a successful one. “We’ve been happy with the take-up in Canada.”
While not requiring a distribution network can also be a
major advantage, Bell’s pricing on Mobile TV obviously
does give the company a bit of a home-field advantage
over OTT interlopers. Someone preferring to watch Netflix
on his phone would be paying Netflix for the content and
paying Bell additionally for the data throughput.
Bell, however, sees this in a more positive light. Jacobs
emphasizes “the benefit of having telecommunications
and media ‘together’ under one roof.
“Not enough good things are said about having these
together…having one company that can make decisions a
lot more quickly.”
The perceived shift from traditional content providers to
OTT services is a topic unto itself that we will cover in an
upcoming issue. For the purposes of this article, however,
it’s worth noting that mobile viewership of Netflix is growing gradually. “We do see that people are watching on
mobile devices,” says Evers. “The number of hours is much
lower. It makes sense… the better experience is when you
lie back on the couch.”
Evers notes that the most popular way to get Netflix is
through the game consoles. In fact, he confirms that the
PlayStation 3 is the top Netflix delivery platform, as noted
by Sony during its announcement of the new PlayStation 4.
Devices like the Apple TV and Roku are also significant,
as are Blu-ray players. Smart TV is growing, but laptops actually run close behind. “PC and Macintosh laptops are still
very popular devices for us,” says Evers. They’re particularly popular as an alternative to large-screen TVs in tight
locations such as small apartments, or student dormitories.
Usage on mobile devices is growing rapidly in percentage
terms, says Evers, but from a small base. “It’s all about user
freedom… Giving people the ability to watch where they
want to, watch when they want to. We try to make it easy.”
Viewing patterns are definitely changing. Recently, Evers
bumped into someone who watches one episode of his favourite series during his lunch break.” Mobile devices will
increasingly enable these scenarios, with viewing filling in
previously ‘dead time’ during the day.
“Everybody’s going to have their (content-delivery) apps,”
says Evers. “Tomorrow, this is the way you’re going to
watch television.”
David Purdy, Senior Vice President, Content, Rogers
Communications: “Our strategy is quite simple: to take
our video offering, and make it go across as many devices as possible.”
Bell’s Mobile TV “second screen” video offering is only
available to its customers. But the advantage is that
users can watch from their mobile devices for an additional $5 per month for 10 hours of viewing; there are
no added bandwidth charges.
Joris Evers, Director, Global Corporate Communications,
Netflix Inc.: “It’s all about user freedom… Giving people
the ability to watch where they want to, watch when
they want to.”
14 MARKETNEWS
MNAPR13.indd 14
Remote Apps: Video
While content providers field their own apps, hardware
manufacturers have focused on remote control software.
Sony, being a manufacturer of both televisions and mobile
devices, has moved quicker than most to marry the two.
Sony’s first-generation tablet app was essentially “just
an infrared remote control,” says Karol Warminiec, Central
Training Supervisor, Sony of Canada Ltd. But the second
generation added macro capabilities, “the big feature that
4/30/13 2:09 PM
everyone was looking for.”
Sony’s Tablet S was unusual in its inclusion of an infrared
transmitter. Sony is now expanding its Wi-Fi remote capabilities, but IR remains a guarantee of backward compatibility.
(An IR-equipped Xperia smartphone is on the way.)
Sony’s new TV SideView app is available for both iOS
and Android, with separate versions for smartphone and
tablet. It works with 2012 and 2013 Sony equipment,
including Bravia TVs, as well as Blu-ray players and Sony’s
Internet Player with Google TV.
TV SideView includes fast access to content sources,
like YouTube, or social networks like Twitter. It also has
a new electronic program guide. “You can be watching
the hockey game, and want to watch a movie later,” says
Warminiec. “You can do all your searching on the tablet,
then push the movie to the TV.”
So far, the program guide includes the biggest TV providers, such as Rogers, Bell and Shaw. Some of the smaller
regional providers may take longer to get onboard.
Sony is also reaching out from the TV end. “We will have
screen mirroring built into our smart TVs,” says Warminiec.
This will support both Miracast wireless and MHL wired connections. The MHL port will charge the mobile device, which
should be particularly handy if it’s streaming a long movie.
Sony’s high-end TVs will also include two remotes, a standard type and a compact one with NFC pairing built in. Users
will be able to tap an Xperia smartphone or tablet against the
latter and instantly establish a connection with the TV.
Panasonic is supporting all its devices with a single app,
Viera Remote 2, available for both iOS and Android. “It’s
obviously very, very important,” says Barry Murray, Director of Marketing for the AV Group, Panasonic Canada Inc.
“From a product perspective, it’s mainstream.”
Murray sees apps starting to offer capabilities that weren’t
feasible with a traditional remote. For example, the 2013
version of the Viera Remote includes the ability to set colour
parameters, or even select the colour space. This can be
used by a certified tuner, but it’s accessible to the user.
For Panasonic, the encroachment of mobile devices is
seen as inevitable, but not worrisome.
“We’ve seen this coming for a number of years,” says
Murray. “We don’t see this as any threat to the TV business. The television is the largest screen in the home.
We’ve called it ‘the digital heart.’” There may be various
second screens, but it will remain the first.
In fact, Murray notes that there could actually be a ‘second screen’ within the TV itself. On new Panasonic sets, My
Home Screen provides a display that can be customized for
up to six members of a household, giving each up to four
screens holding their favourite apps. “It’s going to lead to
Netflix, one of the main over-the-top (OTT) services
that’s helping to fuel the second screen trend, is most
popularly accessed through gaming consoles. In fact,
Sony’s PlayStation 3 is the top Netflix delivery platform.
Along with being dust and water-resistant, Sony’s new Xperia Z tablet incorporates Near-Field Communications
(NFC) technology for seamlessly transferring content from the tablet to a TV, plus a universal IR remote for controlling a TV and other Sony devices, and SideView, a downloadable app for further interacting with the TV.
people using more than just a second screen,” says Murray
“We’ll have to integrate the smartphone, the PC and
the TV,” says Murray. “The magic in this is putting this together in a way that makes it all easy to use, that makes
it manageable.”
Moving content among all the various devices is getting
easier. “It’s coming together,” says Murray. “The major platforms are all being supported.” For example, Panasonic is
offering compatibility with standards such as WiDi, DLNA
and Miracast.
Watching copy-protected material on multiple devices remains problematic. “Some providers allow it, some don’t,”
notes Murray. As second screens become more important,
the UltraViolet universal cloud-based copy-protection
system might finally come into its own. “It will happen,”
predicts Murray. “It’s just a matter of time.”
Access to content is equally important in the audio world.
Andrew Murphy, Director of Marketing, Pioneer Electronics
of Canada, notes that sales of AirPlay-equipped receivers
have been huge. Android, clearly, is playing catch-up.
“Consumers using Apple devices tend to be a little more
prevalent,” says Murphy. “It lines up a bit more closely
with our customer profile.” However, this is changing. For
example, Pioneer is now supporting HTC Connect in its
newest receivers, as well as DLNA.
But it’s the mobile apps that are generating the most
enthusiasm right now. “Mobile apps are going to be incredibly important,” says Paul Belanger, Technical Product
Manager, Americas, D&M Group. He sees consumers
rapidly coming to expect that every AV device will have an
app associated with it.
Even simpler audio gear such as headphones may now
include an equalizer app, or an app that will let the user
manage a fitness program. Docks are getting more complex, and similarly acquiring remote control apps. Even for
the pure audiophile, apps are key. “For two-channel digital
audio, apps are a very important aspect, going forward,”
says Belanger.
“For the younger generation, this stuff is intuitively
familiar,” says Martin Hill, Sales Manager, Yamaha Canada
Music. Whether it’s iOS or Android, they’re more comfortable than they are with the traditional AV interface.
“They’re reluctant to pull out the remote. They’re far more
comfortable pulling out their phone.”
Pioneer launched its fourth-generation remote control
Paul Belanger, Technical Product Manager, Americas,
D&M Group: “We’re at the beginning of the app revolution.
We’re designing products thinking about mobile apps. It’s
no longer an afterthought. They now go hand-in-hand.”
Martin Hill, Sales Manager, AV Division, Yamaha Canada Music Ltd.: “…Ask the customer: what kind of phone
have you got? Download an app to his phone, pair it up
with a receiver, and tell him: look, you’re controlling it.”
Remote Apps: Audio
MARKETNEWS 15
MNAPR13.indd 15
4/30/13 2:09 PM
Yamaha’s AV Controller app will automatically go into demo mode if it senses it isn’t
synced to a receiver, so salespeople can still download it to their devices and show it
to customers even if it’s not hooked up in the store.
app this spring. “These apps have evolved to the point
where they’ve become the primary interface,” says Murphy. “It’s an amazing level of control and simplicity.”
Murphy notes that “a strong core of customers” is very interested in advanced capabilities such as access to digital content,
or distribution of audio to multiple speaker zones. Touch-based
apps make these features much more accessible.
“These apps are a great control method for operating
a secondary zone,” says Murphy. “Before, you needed to
learn a series of complex buttons.” Now users have full
control of the system, anywhere that Wi-Fi reaches, even in
the backyard.
It’s the sort of capability that just a few years ago would
be included only with installations running in the tens of
thousands of dollars. ”You now get that kind of experience
with a $700 receiver,” says Murphy.
“It’s almost a custom-install type of capability,” agrees
Hill. “For a complicated higher-end receiver, it seems to
work extremely well. It’s easier to navigate, almost an
ideal application for your tablet.”
One example, Hill notes, would be setting the cut-off frequency on a subwoofer. Confusing on a traditional remote,
it can be handled on a tablet or phone with the swipe of a
finger. Positioning a speaker can similarly be accomplished
by dragging an icon.
Hill notes that it would be impossible for a company like
With apps like Marantz’s Remote App and Western Digital’s WD Remote, users can control AV receivers from a tablet or smartphone; from simple tasks like adjusting volume,
to selecting content, sources, or zones and initiating play.
Yamaha to build a physical remote with these kinds of capabilities. Wider-area coverage comes as a bonus, extending
control even into the backyard. “Before, you’d have to run
an infrared system outside and buy a high-end remote.”
D&M is going beyond mobile devices to give users yet
another option. “Every one of our network receivers also
has a built-in Web interface,” notes Belanger. “The user
can type in the IP address and do any and all setup via the
Web browser.” Again, advanced functions are no longer
restricted to the front panel of the receiver itself, or to a
menu displayed on the TV.
Elimination of manuals is yet another benefit of devicerelated apps. “In the past two years, we haven’t been
printing owner’s manuals,” says Belanger. Manuals are
now being distributed electronically, and formatted so that
they’re usable on a mobile device. This might be a “highlyoptimized” Acrobat PDF file for reading on an iPad. Or it
might be a Web site, that’s loaded when the user scans a
QR code in the packaging.
Murphy similarly sees mobile apps as having “tremendous
benefits” for the less-demanding user. Pioneer’s latest AV
Navigator includes a full interactive manual, with tutorial
videos and help buttons. “It’s a great tool,” he says. “We can
build in so much more information, and update it easily.”
One problem with these remote control apps is that they
do tend to be device-specific. Belanger sees the rather ne-
glected HDMI CEC (Consumer Electronics Control) spec as
a possible solution. “It kind of opens up the playing field
for tighter integration,” says Belanger.
Belanger admits that even with CEC, cross-brand compatibility remains problematic. However, he feels that basic
functions like Pause and Play now have a pretty good
chance of working between different brands. “There’s a base
set of commands that a component manufacturer needs to
stick to.” As apps take over more and more of the control
functions, this will certainly be something to keep an eye on.
As apps become the default user interface for devices
like receivers, it seems inevitable that the whole design
approach of those devices will start to change. “We’re at
the beginning of the app revolution,” says Belanger. “We’re
designing products thinking about mobile apps. It’s no
longer an afterthought. They now go hand-in-hand.”
But there’s still a lot of potential untapped. “We’re not
necessarily designing the product around the mobile app,”
adds Belanger. But within the coming months we may well
see manufacturers starting to plan the app first, then build
the hardware to support it.
And, of course, the apps will evolve. So far, their features
have largely mimicked what could be done with a traditional remote. But that will change in the next generation.
For starters, popular content sources like Netflix should be
available as a single control. Beyond that, who knows.
Pioneer recently launched its fourth-gen remote control app, which adds the ability to access music libraries stored on devices, and create playlists that can be streamed wirelessly to the receiver, all from within the app.
16 MARKETNEWS
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“During product meetings, there used to be a discussion
of the hardware: wattage, and so on,” recalls Hill. “Now,
there’s a whole discussion of what you want to do in these
applications.”
Yamaha, by the way, is in a unique position, as far as
software development. “We don’t outsource development
of the apps,” notes Hill. “Yamaha, because of the associated music business, already has more apps on that side,
as many as 50 or 60, as opposed to the four we need for
our receivers.” One advantage so far has been the ability
to maintain backwards compatibility with earlier hardware.
For other AV hardware manufacturers, managing a software ecosystem may be more of a stretch. “It’s a challenge,
to be sure,” agrees Belanger. “We’re transitioning from being
a hardware manufacturer to being a software provider.”
“It’s a very tricky game,” says Belanger, “managing
expectations, deciding which features to include, or not.
“We’re trying to hit the right balance, trying not to have
too many features that 10 per cent of customers will be
glad to have but 90 per cent won’t.
“People are a lot more critical of a manufacturer-provided app than they are of a third-party app,” Belanger adds.
“Our primary challenge is that we’ve introduced new
functionality within the AV receivers,” says Pioneer’s Murphy. “That necessitates creating new versions of the apps.”
Unfortunately, it’s impossible to keep users from downloading the wrong version of the app, only to find that it
doesn’t work.
It’s possible that app repositories like Google Play will
need to evolve better mechanisms to handle hardwarerelated apps.
Retail
The potential for AV apps is exciting, but are today’s
customers actually looking for apps when they walk into
the store? “The more technically-oriented ones: yes,” says
Belanger. “If the customer goes looking for an audio component intending to hook it up to his network, he probably
has a pretty good idea there’s an app associated with it.”
In any case, apps are becoming an important sales tool.
“If the associate can whip his phone out of his pocket and
connect to the receiver, it makes for an incredibly impactful demo,” says Belanger.
“If you go into a store now and ask about a receiver, and
the associate pulls out a remote, you’re almost losing the
sale,” says Hill. “Instead, ask the customer: what kind of
phone have you got? Download an app to his phone, pair it
up with a receiver, and tell him: look, you’re controlling it.”
The apps themselves can be designed to help in closing
the sale. “If you download our app and it doesn’t sense
that it’s been synced to a receiver, it goes into demo
mode,” says Hill. “So you can still show the app, even if
the store is not hooked up.
“It’s a huge sales tool,” says Hill. “Our AV Controller app is
not only fine for consumers, it’s also a huge marketing tool.”
“We use these apps as part of the sales cycle with the
consumer,” agrees Murphy. “These apps can help close the
sale faster. They can generate a higher ASP, and make it
easier to integrate speakers into the sale, for a secondary
zone. For example, ceiling speakers in the kitchen.”
“We see a lot of floor associates with tablets, that are
part of their presentation,” says Murray. They use the
tablet to show off new functionality, and also to grab extra
information about the product.
“But it does have to be shown,” says Murray. The potential
of mobile device integration isn’t necessarily obvious to the
consumer. It needs explanation and demonstration. Obviously, specialty shops will have an advantage in this regard.
Again, the apps themselves can help. Panasonic is taking advantage of mobile devices to feed more and more
information to the retail floor. “We no longer print a big
quantity of catalogs,” says Murray. Product information
can be accessed online, simply by scanning a QR code on
the packaging.
This is a difficult time for retailers, notes Hill. The main
problem continues to be getting the store environment
fully networked, hooking up every TV, every receiver.
Without that, the potential of mobile device integration
isn’t going to be demonstrated properly.
Salespeople need to come up to speed as well. “The
‘keener’ in the store, he’s using it,” says Hill. “But that’s not
enough.”
Sony has an advantage with its own stores. “Our guys,
they’re going to be wearing a phone around their neck,
or have a tablet in their hand,” says Warminiec. “We’ve
already been doing that for the last few years. It’s still
probably one of the biggest ‘wow’ demos that we do.”
“The challenge now is working with other retailers,” says
Warminiec. “We have a large group of reps across the
country. They’re all equipped with a tablet and an Xperia
phone. We try to find those ‘keeners’ in the stores that really love this stuff. But they’re still few and far between.”
Conclusion
Integration between home entertainment systems and
mobile devices is accelerating. But there are still many
unknowns.
Will consumers buy a tablet just for the living room?
Is there still a niche for more narrowly-focused ‘remote’
devices? What happens to smart TV, when it’s connected to
even smarter handheld devices? And how will TV content
evolve to take advantage of all these new ‘second screens?’
Whatever the outcome to these and other questions,
there will be exciting opportunities along the way, both
at the manufacturing level, in product design, and on the
retail floor. mn
Going for Control
Aside from the control apps created by hardware manufacturers and content providers, there’s also a large body
of products coming from specialists in whole-home control systems. A good example is Control4, a company that
sells only through custom installers, but is offering strong AV functionality, and bringing prices down squarely
into the mainstream.
“Control4 has always tried to be the operating system of the whole home,” says Marcel Mukerjee, Senior Area
Manager for Canada, Control4 Corporation. “We offer a simple way to orchestrate everything.”
At the heart of a modular Control4 configuration would be something like the company’s HC-800 Controller, or
a compatible Sony receiver (such as the STR-DA5800ES).
“We’ve partnered with Sony,” notes Mukerjee. “They’re
building receivers with Control4 controllers built into
them.”
This central unit can control every device that Control4
has a software driver for, including most AV gear, as
well as its own audio amplifiers, security controls and
lighting dimmers.
Control4 is also able to manage content. For example,
Mukerjee notes that with a bit of third-party software,
the system can pull audio or video off an iTunes server,
or control an Apple TV. It can connect to a Sonos audio
system. A media player module can search NAS (network
attached storage) drives to find other kinds of media.
User interaction is handled by a selection of 5- and
7-inch tablet-style remotes, either hand-held or wall-mounted, or traditional remotes with physical buttons. There are
Marcel Mukerjee, Senior Area Manager, Canada,
also apps for iOS, Android, Windows PC and Mac.
Control4 Corp., notes that, with a bit of third-party
The cost starts at about $2,000 for a controller and/
software, a Control4 system can pull audio or video
or AV receiver, plus some basic lighting controls. After
off an iTunes server, or control an Apple TV; connect
that, the homeowner can expand to HVAC, or security.
to a Sonos audio system; or even a media player
A reasonably full-featured installation should run under
module can search NAS (network attached storage)
$10,000, says Mukerjee.
drives to find other kinds of media.
What sets Control4 apart from the apps that come with
AV equipment is the ability to set up multifaceted usage scenarios, involving multiple home systems. “Where the
magic really happens is where you have a certain action create a reaction,” says Mukerjee.
For example: turning on the lights in the kitchen in the morning could automatically turn on the TV and tune in
a news channel. Starting a movie on the Blu-ray player could dim the lights and close the blinds. Mukerjee notes
that his own home has a particularly noisy furnace, so he has the fan disabled while watching a movie.
At the moment, Control4 is still moderately high-end. But it’s probably a pretty good indication of where the
mainstream is headed. mn
Control4’s Wireless Music Bridge will allow consumers to use a mobile device
as a second screen for connecting to music services streaming through a
Control4 system. This will not only make it easy to play tunes from multiple
devices within the home, but also for guests to play tunes from their own
smartphones or tablets wirelessly through your system. It’s fully compatible
with Apple’s AirPlay, DLNA, and Bluetooth technology.
18 MARKETNEWS
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Get Creative!
GOING MOBILE
By Gerry Blackwell
A few years ago, when Patrick O’Neill, Founder and CEO of
Olloclip, discovered how much fun it was taking pictures
with his iPhone, and how surprisingly good the results
could be, he had a brain wave.
“Wouldn’t it be cool,” O’Neill recalls thinking, “if you
could put different lenses on your iPhone, to take widerangle pictures, say, or extreme close-up shots?”
In some ways, it was a crazy idea. Part of the charm of
shooting with an iPhone is that it’s so simple and spontaneous. Even if you could figure out a way to attach lenses,
would anybody want to do it?
That germ of an idea remained dormant for a year or so.
Then, as the quality of iPhone cameras kept improving by
leaps and bounds, and more and more consumers abandoned traditional photography for smartphone-ography,
O’Neill got serious about his idea. He hired consulting
engineers to help design the lenses and figure out how to
attach them, and then pitched the idea at crowd-source
venture capital site, Kickstarter.com.
The result is the Olloclip, a brilliantly elegant three-in-one
photo lens for iPhones. It clips securely to the corner of an
iPhone 4/4S/5, covering the built-in lens. Depending which
way you attach it, the Olloclip provides a fish-eye, macro
or wide-angle capability. It weighs a few ounces, is small
enough to fit in a shirt pocket, and attaches in seconds.
The answer to the question about whether anyone
would want to use such a product is apparently yes. Less
than two years after O’Neill created the Kickstarter pitch at
his kitchen table, Olloclip has arguably become one of the
An artist hard at work at Sony’s CES booth this past January points to the trend toward using smartphones and
tablets for creativity, not just content consumption.
hottest mobile accessories companies, if still a long way
from being among the biggest.
The employee count is up to 40. The products are sold
in every Apple Store in the U.S. and Canada. (Apple discovered Olloclip online and approached O’Neill.) It’s available
at Best Buy, Henry’s, Black’s, and several smaller retailers
in Canada. In the U.S., it’s in Wal-mart, Target, Sprint and
dozens of independents. It’s also in shops across the rest
of the world.
“People are using Olloclip to take amazing photographs,”
O’Neill enthuses. “It’s bringing out the artist in people who
didn’t know it was there before.”
Mobile Creativity
Olloclip is a great business story, but it’s also the tip of a
trend iceberg that electronics retailers need to be aware of,
and figure out how to exploit.
It’s not just Olloclip bringing out the artist in people, it’s
mobile devices in general; smartphones, tablets, ‘phablets,’
and their evolving ecosystems of apps, accessories and
‘appcessories.’ More and more, consumers are finding
ways to use their mobiles to generate original content, and
not just short texts or business documents. Many are using
them for seriously creative activities.
Needless to say, this is truest of young people. Carolina
Pini, Brand Marketing Manager for Mobile Communications at LG Canada, tells of a friend’s 11-year-old daughter
who produced a surprisingly slick-looking video of herself
dancing to a pop song. She shot the video, edited it, and
posted it to a sharing site, all with her smartphone.
“They know everything, all the features, they know all
the apps they can download for video production on the
device and then post-production,” Pini says. “I was blown
away. Eleven years old!”
Photography and videography are the most obvious
examples of mobile creativity, probably the dominant
modes of mobile expression. That’s hardly surprising given
the devices have built-in cameras and have for years since
Sony Ericsson introduced the first camera phones.
But consumers are becoming aware of other possibilities
as well. Drawing and ‘painting’ on the screen, for example.
Professional artists, including a few art world stars such as
David Hockney, routinely use iPhones and iPads to create
serious work.
Creating and recording music is another example.
Apple’s popular GarageBand app for the iPhone and iPad
showed the way. Many have followed, and many have
taken it further.
Professionals have created original music using their
mobile devices with purpose-built recording accessories.
Artists routinely capture video of concert and touring
experiences with their mobiles to share with fans. The Canadian indie rock band Metric made a video featuring clips
shot on Sony’s Xperia ion smartphone by fans watching
a performance. And some performers are using tablets to
display music notation while playing.
Inventors have even created entirely new musical instruments (in software) that exploit the multitouch interface
and sound reproduction capabilities of mobile devices.
It’s no coincidence that BlackBerry, as part of its BlackBerry 10 launch, announced the appointment of a “global
artistic director,” in the person of pop princess Alicia Keys.
The message is clear (if slightly counter-intuitive given the
brand’s history): the BlackBerry Z10 isn’t just for business,
it’s for creativity too.
Mobile creativity is not an easy trend to quantify, or even
define. But distributors, retailers and manufacturers agree
that it represents a golden opportunity for dealers to cash
in and sell more accessories, and more mobile devices.
The clearest statistical evidence of a change in consumer
behaviour may be the decline in sales of point and shoot
digital cameras. Consumers don’t need digicams anymore because they have cameras in their smartphones
with similar or at least adequate functionality, or so they
perceive. Sales of DSLRs and high-zoom point-and-shoots,
meanwhile, continue to grow, but those products offer
advanced capabilities smartphone cameras can’t match.
Mark Haar, Director of Consumer Electronics at market
researcher The NPD Group, says Canadian point-and-shoot
sales dropped 26% in 2011 and a further 24% in 2012.
“The smartphone is certainly a key causal factor, but
we’re not able to quantify the specific impact,” Haar says.
Trevor Robertson, Vice President of Business Development at Vancouver, BC-based mobile accessories distributor Atlantia, says his retailer customers are telling him their
Overview
The Olloclip 3-in-1 add-on lens for the iPhone began as
nothing more than a crazy idea, and has since become
one of the hottest products in the creative smartphone
accessories category.
• Consumers are finding ways to use their mobiles now not just to consume, but also to generate
original content.
• Smartphones and tablets are becoming valuable tools in photography, music, and video creation as well
as editing and manipulation.
• While many tasks can be performed using free or paid apps, or built-in functions, there are a number of
third-party accessories that retailers can stock in this category to enhance the experience for consumers,
and capitalize on the trend.
• Creativity accessories for mobile devices can help offset declines seen in other traditional categories, like
point-and-shoot digicams.
20 MARKETNEWS
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GOING MOBILE
point-and-shoot sales are off by more like 40% to 60%.
As Robertson points out, retailers need to replace that lost
revenue with something. Products like the Olloclip (which
his company happens to distribute in Canada) would be a
logical choice, he argues.
Consumption
vs. Creation
The conventional wisdom until fairly recently was that mobile devices were great for content consumption, but not
so much for content creation. That is clearly changing.
“I don’t have any scientific evidence [that consumers are
using mobiles more for creativity],” says Vicken Kanadjian,
Managing Director of Montreal, QC-based distributor Cesium
Telecom Inc. “But I do notice a lot more people in my own
ecosystem; friends, family, colleagues; using smartphones
and tablets for creating photos, music, art. And we’re selling a
lot more accessories tailored to this type of activity.”
Allan Kambeitz, Director for Portable Computing at Future
Shop and Best Buy Canada, says the retailer saw strong
pre-Christmas sales of products such as Crayola’s DigiTools
for iPad, a set of hardware accessories that enhance the experience of using the company’s popular crayon art app for
children. Stylus sales have also picked up, Kambeitz notes,
and his sense is that consumers are buying them at least
partly to use with drawing and painting apps.
Most of those we talked to agree the change in usage
patterns has boosted sales of accessories. Robertson says
that while the majority of his company’s sales still come
from cases, protective screens and chargers; the traditional
troika of category winners; sales of accessories that enable
content creation are growing faster.
Some also believe mobile creativity, and the availability
of innovative enabling accessories like the Olloclip, may
actually boost sales of mobile devices themselves, as consumers realize they can do more with these devices than
they may have once thought. “I absolutely do think that it
has a positive impact [on mobile device sales],” Kambeitz
says. “Although I don’t have any tangible evidence that
there’s ‘x’ amount of lift.”
Ken Price, Director of Marketing for Mobile Communications at Samsung Canada, notes that the premium
products in his company’s lineup, those with the advanced
features needed for content creation (higher resolution
cameras, faster processors, bigger screens) are among its
best sellers. The Galaxy Note II, a smartphone with a 5.3inch screen, largest on the market, is an example, he says.
Carolina Pini, Brand Marketing Manager, LG Canada: “The
relationship that consumers have to their smartphones is
a very intimate one. [They expect them to] capture, create,
edit, modify, to share feelings and special moments.”
Samsung’s S-Pen, which ships with the Galaxy Note tablet, isn’t just a standard stylus. It comes with handwriting
recognition technology, plus features like Air View for hovering it over the screen to activate certain tasks.
Innovation breeds innovation. The mind-boggling ingenuity and technological sophistication that go into modern
mobile devices such as the iPhone, iPad and Samsung
Galaxy products inspire people like O’Neill; designers, app
developers, entrepreneurs. They see possibilities that others, even the device manufacturers sometimes, don’t, and
gamble that consumers will see them too.
“What fundamentally changed is access to apps,” says
Farhad Esmail, Director of Marketing for Mobile Communications at Sony Canada. “You have endless possibilities now
for creating new experiences [on mobiles] for consumers.
You have to find an audience, of course, and you have to
be able to reach it. But it [apps and the app distribution
infrastructure] means you can do all kinds of unique things.”
He’s right: apps are key. Dealers need to understand the
role and impact of apps, even if they offer no direct retail
selling opportunity.
The iPhone’s camera app (and of course the built-in camera hardware too) came first, then products like Olloclip.
Drawing and painting apps such as Art Rage, Layers Pro
and Paper, created demand for styli that make it easier for
artists to draw and paint on a touchscreen. Music making and recording apps such as GarageBand, BeatMaker
and dozens of others, inspired musicians to think of also
recording from analog sources, creating demand for microphones, adapter cables, and outboard mixers.
Mobile device manufacturers recognize all too well the
power of apps. Apple, as well as masterfully fostering its
iOS app development community and distributing its wares
(to great profit to itself, of course), also chips in with its own
apps. Many, it’s worth noting, are content creation apps that
expand the possibilities of what people can do with these
devices. GarageBand and iMovie are prime examples.
Android device makers also sometimes jump in where
they see an opportunity to show consumers new ways to
use a product. Samsung’s Galaxy S Note is a sophisticated
note-taking app, for example, Price says.
If BlackBerry or Microsoft Windows 8 Mobile currently
lag iOS and Android, it’s largely because they have failed
so far to attract app developers in as large numbers as
Google and Apple have.
While Android now boasts as many apps as iOS, there
is a clear iOS bias in the accessories market. Because the
design of many accessories depends on the device form
factor, it’s easier for designers, witness Olloclip, to focus
on iPhone or iPad only because there is a huge base of
customers with exactly the same product. In the Android
world, there is a welter of different form factors.
Innovative apps and accessories are important, but as
Price says, “It’s a combination of factors. The horsepower
and the apps both have to be there.”
Kambeitz agrees. “Part of the challenge was that these devices weren’t very powerful to begin with. It was limited what
you could do with them. The ability to do creative things on a
mobile is much more advanced now than it ever was.”
The increasing power and sophistication of the devices
has spurred and will continue to spur innovation. “I don’t
think anyone ever said they don’t want to create on their
mobile,” Robertson observes. “But they needed a mature
product to do it with. It’s a bit of a chicken and egg thing.”
The technology is clearly maturing fast. Quad-core
processors for tablets and smartphones are rapidly becoming industry standard. Double or quadruple the RAM
of first-gen iPads: 2 GB at the top end is now common.
That power is needed to make sophisticated art, video,
photographic and music apps work efficiently, and enable
attachment of peripheral devices.
At the same time, larger, higher-resolution screens on
mobiles make creative apps easier to use, especially apps
for drawing/painting, photography and videography. Most
recent tablets and premium smartphones can display full
1080p HD or higher resolution.
Mark Haar, Director of Consumer Electronics, The NPD
Group notes that point-and-shoot camera sales dropped
26% in 2011 and 24% in 2012, and he points to the
smartphone as being a key causal factor.
Trevor Robertson, Vice President, Business Development,
Atlantia Products: “I don’t think anyone ever said they don’t
want to create on their mobile. But they needed a mature
product to do it with. It’s a bit of a chicken and egg thing.”
“You have to want to pay for that premium hardware
experience, and also carry something larger,” Price says.
“That’s in exchange for the expanded possibilities of what
you can do with that more powerful hardware.” Including
creating original content.
So what happened to turn the conventional wisdom on
its ear?
Drivers
22 MARKETNEWS
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MNAPR13.indd 23
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GOING MOBILE
“I don’t think consumers, off the top, walk in and say
I need a higher-resolution screen,” Kambeitz says. “But
when they see it with their own eyes, it doesn’t take long
for them to realize the value, especially when they’re
working with video or photos.”
Smartphone screen sizes, meanwhile, keep getting
bigger (even while some tablets are shrinking.) Samsung,
Sony, LG, Huawei and HTC have all either introduced or
are expected to introduce this year models with fiveinch or larger, 1080p screens. Price says that in the next
generation of Samsung’s five-inch-plus smartphones, the
bezel will be whittled to the point that the device appears
to be all screen. As a result, they’ll be little bigger overall
than four-inch smartphones. Sony already touts its flagship
5-inch Xperia ZL smartphone as having a screen that occupies 75% of the front of the device versus the 60-68%
that’s common in others.
Finally, and perhaps most importantly from the pointof-view of figuring out how to exploit this trend at retail, a
few ‘soft’ factors play into the equation.
Consumers have become very attached to their mobile
devices. “The relationship that consumers have to their
smartphones is a very intimate one,” Pini says. “People
love their phones. It’s a part of their lives now more than
ever.” And they have come to expect those devices to be
able to do everything, but especially, she argues, to “capture, create, edit, modify, to share feelings and special moments,” and to reflect and express their owners’ lifestyles.
Touchy-feely stuff, but potentially important.
The other related factor is the role of online sharing
services such as Instagram, Vimeo and YouTube; and social
media sites like Facebook. Instagram in particular, Robertson points out, was designed with mobile users in mind. It
didn’t even have a conventional Website until fairly recently.
“We live in what is termed a sharing economy,” Esmail
says. “The fact that we live in this personalized world
means we can choose to communicate whatever narrative
about ourselves that makes sense to us, creating a kind of
self-actualized brand.”
Creating content with mobile devices and more or less
instantly uploading it is at the heart of this behaviour. It’s not
perhaps the same as a professional (or amateur) artist setting
out to create a painting in ArtRage, or a musician mixing a
track in GarageBand, but it is a form of creation and it’s very
prevalent, especially among younger demographics.
It’s clear consumers want to be creative with their mobile
devices. We get it. But what do they need to help them be
creative? Apps, of course, but apps are sold from online
stores controlled by platform vendors, and typically for next
to nothing, if not free. That leaves accessories. Of which
there are hundreds, many fantastically ingenious. See the
sidebar at the end of this article for a tiny sampling.
It’s in the Phone
It’s worth noting that there are features and products that
come direct from the smartphone manufacturers themselves. Consider Samsung’s S-Pen, a sophisticated stylus,
an enhanced version of which ships with the latest Galaxy
Note 8 tablet. With the handwriting recognition technology, remove the S-Pen from the tablet and it automatically
launches features like Pen Detection. Using the new Air
View capability, the S Pen need only hover over the screen
to show previews of videos, e-mails, photos and appointments on SPlanner without opening the file or application
in full. S Pen Gesture allows images and content to be easily edited and cropped, while Paper Artist and Photo Note
allow photos to be artistically personalized.
LG has features like Panorama Note with its latest Optimus devices, which lets artists see portions of the canvas
on the mobile device rather than the big picture (literally)
so they can zoom in and work on intricate details without
needing a big screen.
In-phone cameras are also including more interesting
Available in its latest Optimus devices, LG’s Panorama Note function lets creative types hone in on a specific area of a
virtual canvas to work on intricate details via the small screens.
features, like BlackBerry’s Time Shift feature in the Z10,
which lets you rewind or fast forward a photo to correct
for issues like closed eyes or turned heads; and Samsung’s
Dual Camera for placing the photographer into the image
or video via a number of cool effects. Nokia’s Lumia 920,
a Windows 8-based device, has the option to download a
neat app for creating animated GIFs from your still images.
And these are just a few examples. The list goes on.
Retail Strategies
Bottom line: you can’t carry everything. Even Future
Shop and Best Buy can’t carry everything. Kambeitz says
that while Future Shop now carries a “fantastic” range of
creativity-enabling mobile accessories in its stores, some of
it only sells online.
“We just don’t have room to fit everything on the floor,”
he says. “But this has given us the opportunity to test
online to see what the response will be.” If it’s good, then
it makes sense to bring the product into the store. It’s a
strategy others recommend as well.
The basic tips that are always hammered home in any
category are re-iterated by all of those we spoke with:
show how the products can be used to enhance the
Apple’s popular GarageBand app for the iPhone and
iPad helped to fuel the trend toward creating and
recording music using mobile devices.
experience, and merchandise them effectively. Too many
retailers have not been as innovative as they could be,
manufacturers and distributors charge. Even something as
simple as featuring tablet accessories on the same page as
the tablets in a flyer has made a difference, says Kambeitz.
The mobile creativity phenomenon isn’t going away any
time soon. As Robertson says: “Whenever you have an
installed base this big, there’s always going to be people
coming out with new and interesting things to help grow it.”
As processors get faster, screens bigger and higher resolution, and as consumers realize what a powerful tool for
expression they have in their pockets, the Patrick O’Neills
of the world are going to come along with ingenious, enticing accessory products. How many can you sell? mn
At the absolute simplest level, free apps like Draw Something
and Instagram opened the industry’s eyes to the consumers’
desires to get more creative with their mobile devices.
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GOING MOBILE
Mobile Creativity Accessories:
The three main categories for mobile creativity include
photography, music, and videos. And there are thirdparty accessories in all three categories that run the
gamut, from simple add-ons, to more sophisticated
devices. Herewith is a sampling.
Smartphone-ography
Depending on how you attach it, the Olloclip provides
fish-eye, macro, or wide-angle capability to the iPhone’s
built-in camera.
Makayama’s iPad Movie Mount is a hard shell plastic
case that turns an iPad into a serious video camera.
For the really creative types, Schneider Optics offers
the $200-$300 iPro Lens System for the iPhone, which
includes 2x telephoto, fish-eye, and wide-angle lenses,
along with a hard case and bayonet mounting system.
Clipping the Snappgrip onto an iPhone allows you to
hold the smartphone just like a point-and-shoot camera,
thus making it easy to snap photos one-handed using
the built-in shutter release.
With the ability to be used in extreme environments and
mounted on everything from a ski pole to a person’s
body, the Liquid Image Ego + Wi-Fi digital video camera
can wirelessly connect to an iOS or Android device for remote control, live view streaming, and to play back video.
There are two broad categories of products for photographers and videographers: those designed to extend the
capabilities of smartphone cameras, like Olloclip, and those
that let you use your mobile in support of traditional photography and video.
Olloclip is not alone in building interchangeable lenses for
mobiles. Photojojo has the Photojojo Phone Lens Series. It’s
a set of three discreet lenses: telephoto, wide-angle/macro,
fisheye, that sells for US$49.
Unlike Olloclip, which only works with late-model iPhones,
Photojojo claims its lenses work with any smartphone or tablet. The system for attaching them requires semi-permanent
installation. It’s a ring of magnetic material that sticks with
adhesive to the mobile’s chassis, surrounding the built-in
lens. The Photojojo lenses then stick magnetically to the
ring.
It may not be as elegant in some ways as the Olloclip, and
possibly too fussy with three pieces instead of one. But for most
smartphone-ographers, it’s more versatile, and cheaper.
At the high end, Schneider Optics, the U.S. subsidiary of
German optical manufacturer Schneider-Kreuznach, has the
iPro Lens System for iPhone 4, 4s and 5 only. (It’s distributed in
Canada by Gentec.) The system includes discreet 2x telephoto,
fisheye and wide-angle lenses, and a hard case for the iPhone
that incorporates a bayonet mounting system for the lenses.
There is also a “handle” that screws into the iPro case and
doubles as a holder for the lenses.
The iPro lenses are sold online in kits of two or three lenses,
priced from $199 to $299, or sold separately from $79 to
$105. The case is $31. Are the smartphone-ographers in your
customer base ready for a $300 lens system?
There are scads of other possible accessories. Photojojo
has a battery-operated Photo Spotlight that works with
virtually any mobile. Studio Neat has a $30 Tripod Mount
and Stand that lets users attach their iPhone to any standard
photo tripod. Joby, maker of the GorillaPod flexible tripod
products, has a few different versions for use with smartphones.
Makayama, a Dutch company, makes the simple but brilliantly-designed iPad Movie Mount, a hard-shell plastic case
that turns an iPad into a serious videocam. The tablet snaps
into the Mount, which has a tripod port, a shoe for attaching
accessories such as outboard microphone or movie light,
and a sliding lens mount that lets you screw in third-party
lens extenders and then switch easily between extender and
native lens.
Accessory possibilities are almost endless. And new, ever
more ingenious items are coming to market all the time.
SnappGrip, another Kickstarter company, is about to begin
shipping an iPhone case that basically turns the phone into
a point-and-shoot camera. It adds physical camera controls,
including a conventional shutter button, making it easier to
shoot one-handed. IR-Blue, yet another Kickstarter-funded
start-up, is developing a live-view thermal imaging system
that uses a smartphone.
Photo/Video Support
And then there are products designed to exploit the capabilities of smartphones and tablets to enhance traditional photography and videography. Several companies, for example,
have remote shutter release products that let you use your
mobile device to trigger a DSLR shutter.
Why would anyone want to do this? To automate time
lapse photography, or set timers for other reasons. To
simplify using the camera’s Bulb mode for long exposures.
To shoot candids with a tripod-mounted DSLR: wait for the
target to come in range and click without going near or even
looking at the camera. (Yes, you could do this with the wireless remote available for many DSLRs, but most remotes use
IR, requiring line of sight.)
At the simplest is a product like the ioShutter SLR (about
$70) from Enlight Photo. It plugs into an auxiliary port or
the remote shutter release socket on the camera (there are
versions for Canon and Nikon products). The other end goes
into the headphone jack on the iOS device.
A free mobile app lets you program the shutter release,
to set the number and frequency of time lapse frames, or
the amount of time the mirror stays up in Bulb shots. The
ioShutter app can also be set up to trip the shutter when the
user shakes the mobile device, or in response to a prearranged sound.
Triggertrap Ltd. has a similar product, Triggertrap Mobile.
The free app on its own can be used to trigger the mobile
device’s shutter. With the addition of a dongle and camera
connector (about $30), similar to the ioShutter, it can be
used to control a DSLR.
Triggertrap adds a few interesting wrinkles. It can use the
iOS device’s built-in GPS receiver to do “distance lapse”
photography from a moving vehicle, make exposures every
so many metres or kilometres, rather than every few seconds. And it can be used with two iOS devices, one a slave
attached to the camera, the other a master connected to the
slave over Wi-Fi. The master can then wirelessly trigger the
camera’s shutter and change settings.
The tiny BlueSLR dongle uses Bluetooth to communicate
between camera and mobile. It plugs into a camera’s USB
port. The free companion app for iOS or Android lets the user
remotely trip the shutter from a mobile device, using various
programming modes, including time lapse. Satechi has just
released a similar Bluetooth-based product (about $45).
Finally, CamRanger has a high-end option (about $300)
that works wirelessly, and not only lets the user remotely
trigger the shutter according to various programs and timers,
but also streams video from the camera in live view and
allows control of focus and zoom and most other camera
functions.
Customers serious about integrating mobile device and
DSLR will likely need custom mounting options. TetherTools has a whole range of products for photographers and
videographers, including the Wallee Connect Kit for iPad and
Samsung Galaxy (about $120.)
The kit includes a simple hard-shell case, similar to, but
lighter and less obtrusive than, the Makayama case, into
which the tablet snaps. The Connect mechanism, which
looks a bit like a door knob, locks into the patented connector on the back of the Wallee case. It provides a variety of
connection options, including 1/4-inch tripod head, 3/8-inch
tripod mount, 5/8-inch Pin for light stands and clamps and
connectivity for Arca-style mounting systems.
The Wallee kit creates a surprisingly rock solid connection
and offers endless versatility and expandability. The case
on its own (about $40) can be paired with the Connect Lite
(about $50) to provide a simpler set of mounting options.
The Connect Lite also turns the Wallee case into a very
elegant table stand for the tablet.
Mobile Cams
Another set of products, while not strictly accessories for
mobile devices, were built from the ground up to be used
on the go and, in some cases, to integrate with iOS and/or
Android devices. Wearable and mountable digital camcorders, designed mainly for use by extreme sports aficionados,
is one example.
The Liquid Image Ego + Wi-Fi (about $180) is a full
HD (1080p 30fps, 720p 60fps) digital video cam with a
12-megapixel sensor for still photography. The Ego produces
brilliant quality wide-angle video in the most extreme environments, markedly better-quality video than smartphones
or tablets produce.
The tiny, lightweight camera can be mounted on ski poles,
wind surfer masts, hang glider struts, bicycles, motorbikes,
helmets or a person’s body, using a range of optional mounting accessories. Ego is built tough to withstand extreme
conditions that an iPhone or iPad never could. A key to this
product’s appeal is that it integrates with Android and iOS devices, using built-in Wi-Fi capabilities and a free app. Users can
remotely control the camera from the mobile, stream live-view
video from it, and play back video.
Other companies, including GoPro and Muvi, have similar
camera products, but none so far offers the same Wi-Fi connectivity with mobile devices out of the box.
Introduced at CES, Mophie’s OutRide is a combo case and
wide-angle lens for the iPhone 4. For US$149, users can
shoot at a 170-degree wide-angle view. The polycarbonate
case has interchangeable backs: one for shooting on dry
land, and another for use in up to five meters under water.
As with other similar wearable camera accessories, it can be
worn or mounted in a number of ways and on a number of
devices; from around the head, to adhered to a flat surface,
or even clipped to a bicycle’s handlebars.
Let There be Music
Apps that enable musicians to record to their iOS or Android
devices or mix music on the fly using mobiles are almost liter-
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GOING MOBILE
What’s Out There?
ally a dime a dozen. But recording analog sources using the
built-in microphone, while fine for voice memos or interviews,
will not produce high-fidelity music recordings. So a few companies, including Blue Microphones, an established maker of
studio gear, have introduced products designed for use with
mobiles, mostly iOS devices.
Blue’s Mikey Digital (about $90) is a compact directional
condenser microphone that plugs into the main connector on
iOS devices and records markedly better-quality sound than
native iPad/iPhone mics. The microphone swivels 230-degrees, to provide optimal directionality, and has three gain
settings. Customers looking for studio-grade sound quality on
an iPad or iPhone; and it can be achieved; will need to shell
out a little more for Blue’s Spark Digital (about $200), but it
produces superb-sounding audio.
Tascam, Teac’s professional recording equipment brand,
also has a high-quality mic that plugs into iOS devices, the
IM2 ($80 or less). IK Multimedia, a company that specializes
in electronic products for musicians, has a handheld mic that
plugs into iOS devices, the iRig Mic (about $60).
Microphones are just the tip of the iceberg. IK Multimedia
alone offers a broad range of products, originally only for
iOS, now increasingly for Android devices as well. They
include the iKlip series of adapters (each about $40) for attaching iPads and iPhones to a microphone stand.
IK’s iRig BlueBoard (about $100) is a foot pedal that connects wirelessly to iOS devices and lets musicians control
iOS music apps while performing. And iRig Keys (about
$100) is a mini keyboard controller that works with iOS
devices as well as with PCs and Macs.
A number of companies, including IK Multimedia, offer
adapters that allow musicians to plug standard 1/4-inch
mono jacks from electric instruments into iPads or iPhones.
Griffin, a major player in the mobile accessories market,
has the GuitarConnect Pro analog to digital interface cable,
which includes a dongle with gain adjustment.
Need more ideas for mobile music accessories?
Musician’sFriend (www.musiciansfriend.com), an online
store, lists about 30 different products in its ‘iOS Compatible
Gear’ department.
than a finger. The Jot Pro features a thin metal point with a
tiny see-through plastic disc at the end. It makes the Jot Pro a
more precise instrument than most styli.
Styli are the only really art-specific accessories, although
a British company, iFoolish, does have an iPhone case that
adds an “etch-a-sketch” or “magic drawing” screen on top of
the iPhone screen that users can write or draw on and then
erase quickly, or save to the phone. The company’s name
may tell you all you need to know about this product.
For more intricate photo manipulation, Adobe recently
launched Photoshop Touch for smartphones. Building on the
version of the app that has already been available for tablets, the smartphone version has been optimized for iPhone
4S or 5 (iOS 5), iPod Touch, and Android devices with OS 4.0
or later. It builds on the desktop version, allowing photos to
be manipulated using familiar touch-based gestures. Capabilities include the ability to enhance images using features like
layers, selection tools, filters, tonal and colour adjustments;
apply effects and add graphical text; edit images as large as
12 MPs with layers; and combine images using the Scribble
Selection feature, and refine the selection with the Refine
Edge tool. There’s a 400% touch zoom feature for honing
in on specific areas of a photo. Images can be automatically
synced to Adobe Creative Cloud with 2GB of free storage. It’s
available for download at $4.99.
Allowing photo enthusiasts to apply filters and effects to
photos before they are snapped is the new Filters! App from
Formatt Hitech. Created by Toronto, ON-based TenBelowZero, Inc., the app allows users to adjust exposure, apply
neutral density, graduated, or black & white, or colour filters;
or even use special effects. Doing so in the pre-processing
phase mimics the photo experience one would get with a
DSLR camera, allowing the user to view how the effect will
look before snapping the shot, and eliminating the need for
post-processed editing. If you do want to further tweak the
photo after the fact, apps like the aforementioned Photoshop
Touch allow for that. The younger generation prone to snapping “selfies” (self-portraits,) will be pleased to know that the
effects work with both the main and front-facing cameras of
the iPhone.
Mobile Art
Output
Despite Steve Jobs famously deriding the stylus as a holdover from an earlier, failed generation of mobile computing
devices, stylus products have found a ready market. Apparently. Sales data is scarce to non-existent, but the rush of
makers into the market post-iPad, with more coming all the
time, suggests demand.
Some of it comes from customers who want to be able to
make handwritten notes on their mobiles, but the market is
also driven by consumers using drawing and painting apps.
According to Dan Provost, Co-Founder of Studio Neat, maker
of the Cosmonaut stylus, the release of popular iPad drawing
and painting apps corresponded with marked increases in
sales of his company’s product. It was most noticeable with
Paper from FiftyThree Inc., which had 1.5 million downloads
in two weeks last year when it came out. Draw Something
from OMGPOP, a “social drawing” app and game, provided
another boost.
The stylus is imperfect technology at best. Many users
complain that styli don’t really mimic drawing with a pencil
or pen. The points are too thick, making them imprecise. The
Cosmonaut, for example, resembles a fat crayon more than
a pen or pencil. Some styli may not be as responsive as a
finger. Another problem: resting the heel of a hand on the
screen engages the touchscreen, which can override input
from the stylus.
Which styli are, nevertheless, in hot demand? Which will
get the best traction with customers? One of the earliest
successes was the Bamboo stylus ($30 to $40) from Wacom,
a company with a strong pedigree in the electronic art world,
a maker of pen tablets for artists. The Bamboo, a simple,
elegant design, still frequently appears near the top of
reviewers’ lists of best styli.
Another hot prospect, a higher-end option, is the Pogo
Connect (about $80) from Ten One Design. It connects
to the host iPad via Bluetooth and uses a patent-pending
point technology, making it generally more responsive,
and also touch sensitive. The width of a line changes
as you press harder or softer. With other styli, you have
to change stroke width in the app. The Pogo Connect
technology also makes it easier for drawing apps to figure
out what is unwanted heel-of-hand contact, and what is
legitimate stylus input.
The well-reviewed Jot Pro (about $30) from Adonit also
stands out because of its unique, if somewhat odd-looking,
point design. Most iPad styli feature a rounded rubber tip
that basically mimics your finger, with slightly more accuracy
The other need mobile creators have is to output their work.
It’s less of an issue for videographers and musicians. They can
play their work directly on the iPad, or pipe it to a larger or
higher-fidelity output device. For visual artists and photographers, though, the lure of paper remains strong.
While printing from an iPad, has been problematic in the
past, it is becoming less so. (It was never as big a problem
in the Android world.) More and more printer makers are
embracing Apple’s AirPrint technology, which makes it easy
for iPad/iPhone apps to send print jobs to a compatible printer
over a wireless connection. Virtually every maker has AirPrintcompatible models now, some more than others. According
to one recent count, Canon had 95 compatible models, Epson
93, HP 57, although those numbers will likely have changed
by the time you read this.
There are also apps, including one from Epson, that get
around the iOS printing problem by letting users import content to the app from the originating app and then print from
their app to any compatible wireless printer. Lantronix has a
better, but more expensive solution, the xPrintServer (about
$100). It plugs into a network and enables printing directly
from the IOS app menu to virtually any USB or network
printer on the network.
IK Multimedia offers the iKlip series of adapters which,
for about $40, allows musicians to mount an iPad or
iPhone to a mic stand.
Mophie’s outride is a wearable camera that serves as
a combo case and wide-angle lens for the iPhone 4. It
stands out, however, because it comes with a case that
can be used in up to five metres of water.
The Blue Mikey Digital
is a compact directional
condenser microphone
for iOS devices that can
record better quality
sound than the device’s
built-in mic.
Users are familiar with the
Adobe Photoshop software.
With Photoshop Touch, they
can get all of the basic photo
manipulation tools on a
smartphone or tablet, leveraging touch-based gestures.
Usual Suspects
Traditional accessory categories can play a role in enabling
mobile creativity too. There are, as we’ve seen, activityspecific mounting and stand options such as those from
Makayama, TetherTools and IK Multimedia. But iPad artists
accustomed to painting at an easel may also see the need
of a more conventional case/stand such as the Mophie
Workbook. The Workbook is an iPad case with the look of a
Moleskin notebook and doubles as a table stand. One of its
advantages, though not unique, is that it can be adjusted to
hold the screen at almost any angle.
Creators working away from home or office are also likely
to see a need for portable chargers. Visual apps, and video
apps, in particular, drain the device’s batteries faster than
most. Mophie, with its Juicepack Powerstation products ($80
to $100), promises relatively fast recharging in the field
from power packs smaller and lighter than a first-gen iPod.
Several other manufacturers have similar products.
mn
For about $80, creative types can snag the Pogo Connect
from Ten One Design, a high-end stylus that can adjust
the width of a drawn line depending on how hard or soft
you press it on the device.
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Outdoor Entertainment
CUSTOM CORNER
By Gordon Brockhouse
It sounds almost as simple as “one plus one makes two.”
When the weather gets warm, people like being outside.
When they’re entertaining, they want music, which means
they need some kind of audio capability in their outdoor
areas. This might be something as simple as a portable
iPod speaker, or something as ambitious as a multispeaker outdoor zone in a whole-home music distribution
system. All this adds up to a significant opportunity for
custom integrators and CE retailers.
The outdoor-living phenomenon is accelerating. “This
has been a growth category for us over the last three
years,” says Agata Mossop, Director of Sales for Lenbrook
Canada. “Patios and decks have become an extension
of the home.” Homeowners are outfitting their outdoor
areas with premium furniture and barbeques, and even full
outdoor kitchens. And they’re paying more attention to the
décor of their outdoor spaces. “Music is certainly part of
that solution,” Mossop notes.
Adds Mike Chorney, Director of Sales and Marketing for
Trends Electronics International Inc.: “This is an opportunity
to add significantly more dollars to the budget. Consumers are seeing their outdoor space as a space they want to
invest in. It’s becoming an entertaining space; and when
people entertain, they want music. We’ve created a new
segment in the market.”
The two companies’ product offerings are representative
of the wide range of outdoor audio options available to
Canadian CE dealers and their customers.
Trends’ focus is the Custom Installation (CI) channel. It’s
the Canadian distributor for Dana Innovations’ CI brands,
which includes Sonance speakers, Trufig wall switches
and grilles, and iPort docking products. Outdoor products
account for a good chunk of Trends’ Sonance sales. “Last
year, 20 per cent of our Sonance numbers were outdoor
products,” Chorney says, “and we’re their biggest customer
on the planet.”
Sonance has expanded its Landscape series of 70-volt
outdoor speakers since their introduction in 2011. The
benefit of 70-volt systems, which are widely used in
professional sound reinforcement, is that they allow for
very long cable runs. Obviously, this is relevant in outdoor
applications, especially in large lots.
In 2012, Sonance added a high-output 8” head with
Pioneer’s XW-SMA3 Wi-Fi speaker features AirPlay support and vTuner Internet radio; and can be controlled by
smartphone apps. It’s water-resistant and battery-operated, making it suitable for outdoor applications.
compression tweeter, alongside the 4” and 6” heads
already in the Landscape lineup. There’s also a new 15”
buried subwoofer, which joins the 10” and 12” models
in the series. These models emit bass through a port that
sticks above ground, looking a little like an oversized
mushroom. Also new in the line is the Hardscape freestanding subwoofer. To power the system, Sonance offers
Crown amplifiers designed for 70-volt applications. This
year, Sonance has added Sonarray packages, consisting of
eight head speakers plus a single sub.
“These systems aren’t cheap,” Chorney points out. “In
Canada, our average system is $40,000 to $50,000. Our
highest residential package was around $250,000.” Not
many customers want to make this kind of investment without knowing how it will sound. To address this issue, Trends
has eight demo systems, each consisting of eight heads, a
subwoofer and amplifier, available for its dealers’ use. “The
kit can be set up in 10 or 15 minutes, and the whole family
can have a listen,” Chorney says. “It’s like test-driving a car
before buying. The feedback we get from consumers is it’s
the best audio system they’ve ever heard.”
Lenbrook, meanwhile, has CI-oriented products that are
closer to the mainstream, plus an expanding roster of retail products. In its PSB brand, Lenbrook has two universal
indoor-outdoor speakers, the CS500 and CS1000. These
all-weather speakers are suitable for classic under-soffit or
post mounting, and are supplied with mounting brackets.
Wireless Options
For customers who don’t need a permanently installed
system, there are portable products from Tivoli and Ge-
neva. These aren’t weatherproof, but smaller models like
the Tivoli PAL BT can be easily carried outside for occasions when tunes are needed. Like a growing number of
Tivoli models, the PAL BT has Bluetooth connectivity, so
that users can stream music from a smartphone or tablet.
And that points to another trend in outdoor sound: the
growing number of wireless options. “The traditional wired
outdoor speaker market; under-soffit, rocks; is still strong,”
says Jason Zidle, Director of Marketing and Product
Development at Erikson Consumer. “But it’s being cannibalized by wireless options. Many people today are happy
streaming from their phone, and they have become less
tolerant of spending more on the installation than on the
product. They’re shifting to carry-out/carry-in products like
Soundcast. If the installation is permanent, people don’t
mind going wired.”
Distributed in Canada by Erikson Consumer, the Soundcast lineup includes two self-contained stereo speakers. The OutCast ($949) and OutCast Jr. ($649) are both
cylindrically shaped, combining a single downward-firing
woofer with four full-range drivers (two for each channel)
around the circumference near the top of the speaker.
Their rechargeable batteries are rated for 10 hours of
music playback. They can work with the iCast, which integrates a legacy 30-pin iPod dock and 2.4GHz transmitter,
or the UAT, an optional wireless USB transmitter for use
with PCs and Macs. Playback from a PC or iPod/iPhone can
be controlled from a backlit keypad on the speaker’s top
surface. The feature works with iTunes, as well as subscription services like Pandora and Rhapsody. A Bluetooth
dongle for the Soundcast speakers will be available soon.
Zidle says wired outdoor speakers, such as the JBL
Overview
• Homeowners who want outdoor audio can choose from a vast array of products, from single-piece
wireless speakers to high-performance 70-volt wired systems.
• Wired systems offer greater reliability, since there are no RF issues; but wireless products offer
more flexibility.
• With wired systems, a key issue is getting good audio coverage in areas where sound is desired without
disturbing the neighbours.
• The market for outdoor TV is in its very early stages. According to market leader SunBriteTV, the market
is growing at 200% annually.
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CUSTOM CORNER
Control One All-Weather speakers that Erikson Consumer
distributes, are sold and installed mainly by CI specialists,
but wireless systems are more broadly distributed. “We’re
starting to see wireless products in patio stores,” he elaborates. “Those places can’t send an installer, and are less
adept at selling audio products. But we’ve made inroads
with Soundcast. The people who do wired systems are primarily boutiques who can offer choices to their customers:
under-soffit, rock, wireless.”
Adds Lenbrook’s Mossop: “The Soundcast-type products
are going to other channels. For products like ours, it’s still
the key AV custom installers, who work with landscape
and pool companies to deliver a complete solution.”
The smartphone explosion has created another category of speakers suitable for outdoor use: self-contained
battery-operated wireless models that can stream music
from a smart device via Bluetooth. Erikson, for example,
distributes Jambox Bluteooth speakers from Jawbone, and
more recently added the Braven line. Typically, Bluetooth
speakers aren’t weatherproof, but they’re small and portable so it’s easy to bring them out to the deck to stream
music from a smartphone.
Last year, Pioneer introduced three wireless speakers
that stream music via Wi-Fi. They can establish a direct
Wi-Fi connection with a wireless device, rather than going
through a router for music streaming; and have built-in
vTuner Internet Radio and Pandora functionality which
can be controlled from Pioneer’s Control app for Android
and iOS. Any of these can be carried outside and plugged
into an outdoor AC outlet. But the two-way XW-SMA3 is
water-resistant and battery-operated, making it the best
candidate of the series for outdoor entertainment.
There’s no doubt that single-piece Bluetooth and Wi-Fi
speakers can be used for bringing music outside. But
they’re primarily retail products, and are covered in greater
detail in this issue’s feature on wireless audio.
Sonance’s Landscape Series includes satellite speakers (heads) that can be soffit-, post- or stake-mounted, in-ground
subwoofers that radiate through mushroom-like vents, and a freestanding subwoofer. According to Trends Electronics, Canadian distributor for Sonance, the average Landscape system totals over $40,000.
While wireless speakers can add some music to a pool or
patio party, they can’t really fill a big yard with sound. A
properly configured wired system can. And wired systems
have another advantage: reliability. There are no hiccups if
a source component is out-of-range. “Wired systems work
consistently, every time,” Chorney observes.
Most important, a wired system is always there, ready
to be used. “It’s nice to walk to a keypad and not have to
hunt for your device and wait for a Wi-Fi login,” observes
Jon Barron, Owner of Sight and Sound Home Theatre in
Nanaimo, BC. Barron’s company designs, supplies and
installs residential entertainment systems for homeowners
on Vancouver Island, frequently working with Vancou-
ver contractors. About 70% of Sight and Sound Home
Theatre’s projects are new construction, and 90% of those
projects involve an outdoor zone. “There’s lots of new
construction on Vancouver Island,” Barron says.
Barron’s go-to multi-zone option is the Niles ZR6, and
for outdoor zones, he typically specifies Niles’ Solo-6MD
keypad. Not only is it weather-resistant, it provides full
meta-data display. In most installations, he mounts the Solo6MD on a decorative post, with conduit housing Cat5 cable
connecting the controller to the distribution amplifier.
For the outdoor zone, most of Barron’s customers are
just looking for background music, and he’ll typically
install a single pair of wall speakers, but will also use rock
or flowerpot speakers. In the latter case, Sight and Sound
installs conduit before the patio slab is placed. “If the customer wants really good sound, we may do four speakers
and a sub,” Barron adds.
Dale Webb, Partner in Avery Audio in Dorset, ON, agrees
about the benefits of wired systems for outdoor audio.
Like Sight and Sound Home Theatre, Avery Audio has a
customer base with a heavy interest in outdoor living. Its
primary market is owners of vacation homes in Muskoka,
in the heart of Ontario’s cottage country.
Webb says 99% of Avery Audio’s outdoor audio projects
are wired. “The wireless world hasn’t caught up with
wired,” he says. “Virtually all our customers require different zones with a keypad in each zone.” Besides reliability,
a key benefit of a keypad is that customers can always
access the system from whatever zone they’re in.
Avery Audio sells Russound, Niles and ELAN systems,
and these vendors offer smartphone apps to control their
systems. Webb says an increasing number of customers are using these apps to complement the keypad. If
they don’t have their phones handy, they can walk up to
Jason Zidle, Director of Marketing & Product Development, Erikson Consumer: “The traditional wired outdoor
speaker market is still strong. But it’s being cannibalized by wireless options. Many people today are happy
streaming from their phone.”
Agata Mossop, Director of Sales, Lenbrook Canada:
“Outdoor audio has been a growth category for us over
the last three years. Patios and decks have become an
extension of the home. Music is certainly part of that
solution.”
Hard Wired
the keypad to operate the system. But if they have their
phones with them, they can control the system without
leaving their Muskoka chairs.
Getting Covered
A challenge with outdoor sound is delivering enough sound
to the primary listeners without disturbing the neighbours.
“Indoors, you can get music in the kitchen from an adjacent living room,” observes Zidle of Erikson Consumer.
“Outdoors, sound dissipates very quickly. You need to keep
speakers as close to the listener as possible. If the customer
has a deck, that’s the area to concentrate on.”
One advantage of wireless systems like Soundcast is
that the system can be carried around, Zidle notes. “If the
party moves to the pool, you can take the speaker with
you. With wired systems, you need to probe the customer
about listening locations. It’s also an opportunity to upsell.
If the customer likes to garden, you can suggest adding a
landscape speaker. That way, they don’t have to turn the
deck speakers up and annoy the neighbours.”
Proper placement and aiming of the speakers can mitigate neighbourhood issues, Chorney says. “Two speakers
mounted on the side of the house may sound loud in the
barbeque area on the deck, but quiet in the yard. You can
turn it up, but that may disturb the neighbours.”
That makes proper planning critical. After Sonance
dealers conduct a demo at a customer’s home, they send
a drawing of the outdoor area to the Sonance design
centre, and conduct a questionnaire on usage. Elaborates
Chorney: “We ask, ‘What’s the intent of the listening area?
Background music? Dance parties?’ We lay out the system
and present it to the dealer and user. Our close rate is
almost 100 per cent.”
Streaming music via Wi-Fi to outdoor wireless speakers
requires a high-performance router. D-Link’s DIR-845L
Extreme Range Dual Band Gigabit has six multi-directional antennas that locate and track network devices.
This extends range and reduces deadspots, D-Link says.
30 MARKETNEWS
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CUSTOM CORNER
Soundcast’s OutCast portable wireless speaker has a
downward-firing 8” woofer and four full-range drivers
in a stereo 360° array near the top. It can receive music
from a matching wireless iPod dock or USB transmitter.
There are top-mounted controls for volume and iTunes
control; and bottom LED lighting.
For Avery Audio’s clients, coverage is an especially
important issue with outdoor audio, because most of these
systems are going in lakefront vacation homes. Sound
travels readily over the water, making it easy to disturb
other cottagers.
“Outdoor music has real acoustic challenges,” Webb
explains. “The listening area is large, so the challenge is to
get good stereo coverage. Typically, we integrate two pairs
of speakers, because more speakers mean more even
sound. But it depends on what the customer is willing to
spend. And we place speakers to avoid noise pollution.
Neighbourhood considerations are very important to our
customers. When I raise this issue, they’re very responsive.
On a deck, instead of putting speakers on the house and
having them fire over the lake, we’ll put them on a railing
so that they fire back toward the house.”
Webb outlines a couple of installations that illustrate his
approach. For a 400-square-foot patio, he installed four
rock speakers around the perimeter, firing back into the
patio. “The speakers blend in, and they’re not affected
by the weather.” The system is controlled from a keypad
attached to a tree near the water, with the cable routed
through grey conduit.
He used a similar approach to provide sound in a classic
Muskoka wood gazebo, which is attached to the cottage,
installing four weatherproof speakers around the perimeter
directing sound into the gazebo. For that project, Webb
also installed an upgraded wireless router, so that users
could stream music wirelessly. “Integration of docks is becoming passé,” Webb states. “We’re doing more networked
systems with streaming audio, plus control from system
vendors’ apps.” Because high-speed Internet service isn’t
widely available to lakeside homes in Muskoka, homeowners tend to play locally stored music, as opposed to
using streaming services.
For a client with a lakeside Muskoka Cottage, Avery Audio in Dorset, ON installed a TV that pops up from a flagstone
patio surrounding a hot tub.
warmth. If spiders follow them, that can pose real problems, because spider webs are highly conductive.
SunBrite TVs are completely sealed, protecting them
from the elements. But they carry a substantial premium.
Intended primarily for residential applications, SunBrite’s
Signature Series LCD televisions are available in 32”, 46”
and 55” sizes for $1,495, $2,795 and $3,995 respectively.
These are SunBrite’s “best sellers, by far,” Dixon says. SunBrite has “over 80 per cent marketshare” in outdoor TVs in
North America, he adds.
The Signature Series can withstand pretty well all the
extremes of Canadian weather, being able to operate at
temperatures down to -30°C. And a built-in cooling fan lets
them keep working in temperatures as high as 50°C. For
clients in more frigid zones, the Marquee and Pro series,
intended for commercial markets, have built-in thermostatically controlled heaters, allowing use in temperatures as
low as -40°C. In the Marquee Series, a 46” display retails
for $4,995.
Marquee displays are used primarily for digital signage.
They have high light output, making them suitable for
applications with high ambient light, such as poolside and
open west-facing installation, Dixon says. However, they
lack built-in sound. The Signature Series has a “very robust
speaker and amplifier, with good-size drivers,” Dixon says.
He estimates that 95% of SunBrite buyers already have
some kind of outdoor speaker system, either wired or
wireless. “In party mode, people may fire up the sound
system with music, while they monitor the game on TV,”
he says. “When a couple are at home, they may be in
news mode, and listen to sound from the TV. For solo applications, TV sound is important. People want the whole
entertainment package.”
Dixon says the North American market for outdoor TV is
growing by 200% a year. “Customers are staying in their
homes longer, but want to do something new. We’re seeing steady increases in backyard spending.”
SunBrite is putting the finishing touches on its Canadian
distribution and dealer network. Its products are carried
by AVAD. “But we’re also looking at other distributors and
a number of key independent retailers,” Dixon says. “We
have a lot of dealer applications pending. Retailers are
starved for new categories to sell.” Referring to price erosion and paper-thin margins, Dixon notes, “a lot of indoor
flat panel is being sold as a courtesy to the customer.”
As with audio, it’s important to learn the buyer’s application and plans. “You need to understand the ergonomic
flow of the backyard,” Dixon states. “Is it being used for
parties? Is there a dining area? Where do people congregate? Where do they want to watch TV? Where is the sunlight hitting? You need to understand not just the current
backyard, but where the customer wants to go.”
Dealers also need to instill confidence about the product
in their customers, he adds. If the best place for the television is an area that’s exposed to rainfall, customers need
to be made comfortable that this is a safe application.
Dixon says any skilled CI can handle installation of a
SunBrite display. That’s not to say there’s no scope for
creativity. “We’re seeing some new trick installations, such
as motorized lifts on TVs hidden behind a cooking area.
CIs are applying the creativity from indoor installations to
outdoors.”
To highlight high-end installations, SunBrite is launching
a backyard-of-the-month promotion on its Facebook page.
And it’s revamping its Website. When the new site goes
live in late May, Canadian dealers will be added to the
dealer locator. “We have a very aggressive digital campaign,” Dixon says. “Our dealer locator sends a good supply of leads to our CI guys. Eighty per cent of the people
who come to the site go to the dealer locator.” mn
Outdoor Video
Most of Webb’s outdoor projects involve only audio,
though he has done some interesting video projects. “One
of our coolest projects was an outdoor hot tub in a patio
area,” he says. “The TV popped up out of a sealed flagstone surface, with a heated cavity underneath. We take
the TV out every year to deal with the condensation.”
Condensation isn’t an issue with SunBriteTV’s dedicated outdoor televisions. Neither are rain, snow, freezing
cold, bugs or spiders. Indoor TVs have open vents, and
exposure to precipitation can damage one very quickly.
Hanging an indoor TV under an eave or in a gazebo or
outbuilding may protect it from rain. But other problems
can’t be solved this way, notes Tom Dixon, Vice President
Marketing for SunBrite. Condensation can drip through the
vents and zap circuit boards. Insects can crawl in, seeking
Part of SunBriteTV’s Signature Series, the SB-5560HD is sealed from the elements, making it impervious to rain,
snow, bugs and other risks of outdoor use. It can function at temperatures from -30°C to 50°C.
MARKETNEWS 31
MNAPR13.indd 31
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MNAPR13.indd 33
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4/30/13 2:10 PM
Targeting Target
RETAIL TIPS
By Wally Hucker
There’s good news and bad news for Canadian retailers in
many categories, including consumer electronics, as the
first 24 Target stores have opened in Canada.
The good news is that experts who Marketnews talked
to about Target’s long awaited, perhaps even dreaded in
some quarters, appearance on Canada’s retailing scene
feel that the U.S.-giant won’t be a category killer. The bad
news is that Target, according to most of them, will take
business from everybody: big boxes, department stores,
discounters, and specialty retailers.
“In any category,” says Bob Lapointe, Founder and
President of the Tailbase retail tracking and Website design
company, which has been tracking Target since April 5,
“Target will be more formidable competition than Zellers.”
In addition to its plethora of clothing and footwear,
Target Canada stores offer groceries, kitchen and cookware, toys, and a small selection of sporting goods and
hardware for the home; plus seasonal merchandise. Of
more interest to our readership is, of course, the consumer
electronics selection. There is also a smattering of smaller
appliances, like microwave ovens and blenders.
Field Agent Canada, a Calgary, AB-based retail audit and
market research firm, has been monitoring Target since the
January 2011 announcement that the U.S. retail giant was
coming to Canada. The company has advised Canadian
retailers and vendors about living with the arrival of Target
here. Founder and President Jeff Doucette concurs with
Lapointe, and numerous other industry observers. “If we’ve
learned anything about Target in two years,” he notes,
“it’s that they know a lot about running stores. They do
very good marketing. They are going to be a formidable
competitor.”
That “F” word doesn’t faze Derek Collier, the Vice President of Merchandising for BC-based Audio Video Unlimited
(AVU.) “I believe Target, or any successful retail store,” Collier
muses, “is good for the retail market in Canada. The U.S.
market houses some of the best retailers in the world, one
of the reasons many Canadians rush south to purchase.
“I believe the news of fresh retailers opening in Canada,”
he adds, “is better for retail than the current news of store
closures. Competition is always good, so is employment,
and improving Canadian retail helps keep Canadians in
Canada.”
A former Target executive, who asked to remain anonymous, feels there are three key things Canadian retailers
must do: “know your competition,” he advises, “get in and
shop Target; and up your game.”
Target Canada doesn’t call its customers shoppers or customers; they’re “guests;” and the retailer reportedly trains
upwards of 90% of its staff to operate a cash register.
Know Your Competition
Target Canada is a wholly-owned subsidiary of Target Corporation of Minneapolis. Founded in 1962 with just one
store, albeit as an outgrowth of a dry goods retailer on the
Minneapolis scene since 1902, Target finished that year
with four. It now operates over 1,700 stores in the U.S.
Typically, the stores are much larger south of the border
than they are here in Canada, from 95,000 to 135,000
square feet. Such stores generate US$60 million to US$80
million in sales, and may have 200 employees.
Target Corporation is second in discount sales revenue
in the U.S. only to Walmart, according to 2012 filings of
income statement forms 10-K/A and 10-K with the U.S. Securities and Exchange Commission. It rated number 38 on
the Fortune 500 list last year, when it increased its revenue
to US$69.865 billion, but saw its operating income decline
to US$4.456 billion. Its net income for the year increased,
however, to US$2.929 billion.
It is claimed that 97 per cent of Americans recognize
Target’s bull’s-eye logo. Before the company opened in
Canada, Gregg Steinhafel, Chairman, President, and CEO
of parent Target Corporation, said that 70% of Canadians
were already aware of the brand.
Target will open 124 stores in Canada this year in five
waves of 20 to 28 stores at a time. Three pilot stores
opened just west of Toronto on March 5, near the company’s Milton distribution centre. Another 17 stores opened
two weeks later, and four more on March 28. These stores,
by the way, won’t be the last of Target’s invasion. Target
Canada, headquartered in Mississauga, ON, is looking for
more real estate for 2014, says Steinhafel.
The stores slated to open in 2013 are all in former
Zellers locations. Minnesota-based Target Corporation,
after musing aloud for some time about expanding
internationally, including into Canada, paid Zellers’ parent
Hudson’s Bay Company $1.825 billion in January 2011 for
up to 220 Zellers’ leaseholds. This ready-made nationwide
footprint, while allowing for fast and convenient expansion, was not without its issues, as we shall see.
Target Canada is spending $10-$20 million converting
each former Zellers location it intends to open. That’s
another $1.25 billion, for a total investment of over $3 billion in its first three years in Canada, the first two of which
generated no sales revenue.
Zellers locations ranged from 25,000 to 90,000 square
feet. Accordingly, Target arranged to enlarge 40 of the 124
Canadian locations by a total of 600,000 square feet, or
an average of 15,000 square feet each. Such stores should
generate about $40-$50 million in annual sales.
Each of these Target Canada stores will have 100 to 150
employees. There are no commissioned sales, according
to our former Target executive. The teams on the floor and
team leaders are paid an hourly wage. Store executives,
about four to 10 per store depending on its size, are paid a
salary. At the executive level, there are performance bonuses.
Surprisingly, the former exec says there are no rah-rah
cheerleading sessions at Target. “There are daily meetings,
for every shift, where they talk about priorities for the day.”
Target Canada’s stores are among the few large operators with long hours. The Ontario stores are open from 8
a.m. to 10 p.m., except Sundays, when they close at 9 p.m.
Target Canada continues the corporate philanthropy of
its parent and its parent’s predecessor company, which
have given five per cent of profits to support local communities. In February 2012, Target Canada made its first
Canadian charitable donation, of 100 per cent of the sales
from the Jason Woo pop-up store in Toronto, contributing
$60,000 to the United Way Toronto. Last December 2012,
Target Canada’s Facebook Page was responsible for a $1
Overview
• Target’s entrance into Canada poses some stiff competition for other discounters, big boxes, and
independents, alike.
• The retailer has had both ups and downs since soft opening its first of 124 stores set to open this year
throughout Canada.
• While Target stores are more heavily focused on categories like apparel, there is a significant CE presence,
including store-within-stores in wireless through a partnership with Glentel.
• Opinions differ between market research experts and CE industry pundits on how big an impact Target
will have on the independent CE retail market.
34 MARKETNEWS
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RETAIL TIPS
million donation to a half dozen nonprofit organizations.
Volunteering to help the community is another corporate
feature. As early as last July, over 400 store employees
were cleaning up Mississauga parks, and assisting at food
banks. Another $125,000 was donated to Peel United
Way. At least another 10 charities have been assisted with
money and/or volunteers.
Also akin to its American parent, Target Canada has
committed to sustainable and energy efficient business
practices. It is seeking to receive LEED (Leadership in
Energy & Environmental Design) certification for all stores
it opens in 2013.
Corporate good works and environmental awareness
has not saved the U.S. parent from all criticism. It has
taken flak for donations to anti-gay organizations, and for
allowing its pharmacists to follow their consciences as to
whether they will or will not dispense the so-called morning after pill.
Location, Location, Location
The site of a property accounts for its top three merits, according to the old saying among real estate agents. While
Target Canada was able to obtain sites from coast to coast
in one fell swoop by buying the Zellers leaseholds, there
are issues, and not just with the size of the stores.
During Marketnews’ opening day visit to the East York
store, Lisa Gibson, Target Canada spokeswoman, replied to
comments about the two-storey layout of this location. “It’s
not our preferred model,” she avowed.
“I believe their locations are not as great as Walmart’s,”
states Jose Linhares, a Director of the Linen Chest chain of
home accoutrements stores. Linhares also operates Zedlin
Group, a retail consulting firm. Longtime readers may
remember him as co-president of Groupe Dumoulin in its
formative years. Before that, he was with Sony of Canada
for many years. “They picked up second tier type locations,” he adds. “They are not in the best trading areas.”
“Target’s mix of locations in Canada may not be ideal
now,” reflects Eric Blais, Founder and President of Headspace
Marketing in Toronto, “but they may be happy to have it.”
Doucette feels that it may be more a case of making a virtue of necessity. “Is their situation perfect? No, but those were
the available stores, and Target is really moving to be open to
different formats in the U.S., including two-storey ones.
“For Target to have built a Canadian network organically,” he continues, “they needed to start at least 10 years
ago. Vendors are not happy with chains of 20 stores going
head to head with Walmart.” Rolling out all these stores
in a short period of time is the better option, in Doucette’s
opinion. “Lowes still has no traction versus Home Depot
after 10 years in Canada.”
Blais also affirms multiple Target formats work well in
the U.S. “Look at their different formats, like SuperTarget,
and CityTarget.” The latter debuted last year in the U.S.,
By the end of March, Target says that 44,000 Canadians
had signed up for its Red Card debit and Royal Bank
MasterCards, which offer a five per cent discount on
purchases.
some being incorporated into existing downtown landmark
buildings, and a pilot in Seattle in a three-storey mixed
use commercial-residential building. “We also see Walmart
trying to cover other markets.” In fact, just before Christmas,
Walmart opened a very small store, in the Gerrard Square
mall downtown, even before it was totally converted from
one of the Zellers locations declined by Target.
There is at least one drawback to smaller stores, according to Doucette. “Smaller stores put pressure on the supply
chain.” However, he notes, once Target has the goods in
stock, it handles them well. “Target is very good at getting
product from the backroom to the shelves.” He believes it
does this better than major competitor Walmart.
A high ranking sales person from one vendor to Target
Canada, the only one Marketnews found who would speak
to the issue, explained the problem Target Canada faced
with stocking televisions. “They knew they were ordering
in advance and would get delivery of models that would
be six months old, and that they would be opening at
the end of the Japanese model year, and no new product
would be available until May.”
Why Expand Into Canada?
“…For the first time in its history,” says Doug Stephens,
Founder and President of management consulting firm
Retail Prophet, and author of The Retail Revival, “[Target]
is having difficult times in the U.S., after a meteoric rise.”
Stephens looks at retail from a vantage point of 22 years
in all channels, and selling to Target, Walmart, and Home
Depot, among others. This hiccup in earnings may have
been the final shove which made the company move
north, because by 2008, Target had already decided to
cut its expansion stateside from about 100 to about 70
stores per year.
“It’s a gamble,” muses Stephens, “but I think it’s a worthy
gamble. There’s been a dearth of competition in Canada.
The last major expansion into Canada was by Walmart, 20
years ago. Zellers was the walking dead. In the absence of
It comes as no surprise that virtually all Americans recognize the bull’s-eye Target logo,
but before the company even opened in Canada, Target Corp. Chairman, President, and
CEO Gregg Steinhafel, said that 70% of Canadians were already aware of the brand.
Zellers, there’s been no discount competition for Walmart.
Target’s expansion here is strategic, and good sense.”
Regular Shop Talk readers may recall having read that
The Bargain! Shop had plans two years ago to open
almost 100 stores across Canada. Although much smaller
shops, with a consequently narrow product mix, The
Bargain! Shop offered a credible selection of merchandise
from convenience foods to clothing, seasonal items to
small CE products, accessories, and software, and was
positioned to take advantage of the in-between period of
Zellers’ wind-up and Target’s launch. Unfortunately, the untimely death of CEO Jack Buley, the driving force behind
its aggressive expansion, largely curtailed the expansion.
“Target is coming here for a reason,” Doucette sums up.
“Canada is a real good place to be a retailer.”
Targeting Consumer
Electronics
While Target is best known for affordable chic apparel, it
has other strong categories, such as its pharmacy, toys,
and groceries. “Consumer electronics,” says Doucette, “is
one of Target’s strong categories.”
Its stores have a wide range of CE products, from flat
panel televisions to memory cards and batteries. Panasonic, Sony, Samsung, LG, Toshiba, Haier, Magnavox, Philips,
and Elements have flat panels up to 50 inches displayed,
literally at length, on the wall. Canon and Nikon have
digital SLRs accessible on aisle shelves, along with point &
shoot and intermediate models from Panasonic, Sony, and
FujiFilm.
Microsoft has a significant presence, with both hardware and
software, for computing and for its Xbox gaming platform.
“Target Canada has done a great job of merchandising Apple products in its stores,” Doucette observes. “It’s
almost like a mini Apple store. Indeed, the Apple section
does emulate a micro Apple store, with blond wood tables
and other minimalist fixtures. “It’s unlike Costco,” he observes, “where Apple products are hard to find and reach.
Apple,” he ventures, “adds to the Target brand.”
The CE departments in the two Toronto stores visited were
bright, clean, and airy feeling. There were discrepancies,
however. The CE department of the East York Town Centre
store was much larger and the aisles wider and less cramped
feeling than that of the Shoppers World Danforth store.
Target’s CE department employees, says our ex-exec, are
given extra training. They have a minimum of 15 hours
online exposure to the category. This time is, of course,
not much compared to what many employees at CE specialty shops are given.
What specialized training do Target’s CE staff receive,
Marketnews asked the company several times. “Target
evaluates a number of factors when hiring team members,” says Joanne Elson, Director of Communications
for Target Canada of placement practices, “placing them
Target was surprised by the massive response to its initial store openings, noting that
traffic was, at times, heavier than anticipated.
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On hand to help celebrate the opening of the Target Store at Shoppers World Danforth in Toronto were actors Sarah Jessica Parker (photo on right) and Blake Lively, the latter of
whom posed with Target Canada President Tony Fisher and the retailer’s mascot, Bullseye.
within the department that best suits their skill set and
interests, and meets the needs of the Target business.
Team members participate in a series of learning plans,”
she says rather obliquely, “and position-based training.”
This, of course, doesn’t hold a candle to training offered
by independent CE retailers. “Independents have significant
product knowledge,” says Robert Gumiela, Vice President
of Marketing for Power Audio Video Group. “They carry
complete selections of suppliers well into the premium
categories, such as 2K/4K, 240 Hz, Smart technologies, and
connectivity and convergence such as NFC and Wi-Di.
“The value proposition of an independent or regional
retailer for consumer electronics,” Gumiela continues, “is
far greater than a selection of opening price point models.
Target’s merchandising strategy and product selection is in
line to compete more with other Canadian mass merchants such as Walmart rather than independent retailers.”
The prevailing view among independent CE retailers
is that discounters and big boxes will be the victims of
Target’s Canadian incursion. “As this relates to the AV
world,” says AVU’s Collier, “I find Target slightly higherend than Walmart, and very similar in customer focus and
SKU assortment. Target will divide dollar support in the AV
market with the likes of Best Buy, Future Shop, Costco and
Walmart in my opinion.”
This viewpoint has at least some support from some outside marketing professionals, though most with whom we
Doug Stephens, Founder & President, Retail Prophet, and
author of The Retail Revival: “The last major expansion
into Canada was by Walmart, 20 years ago. Zellers was
the walking dead. In the absence of Zellers, there’s been
no discount competition for Walmart. Target’s expansion
here is strategic, and good sense.”
spoke believe independents will be affected as well (more
on this later.)
“Target is coming,” says Mark Satov, Founder and Leader
of Satov Management Consulting Services in Toronto, “but
there are not too many in its sights. They may pick off a
lot, but not kill a category, except for maybe Walmart.”
Target Canada stores are unlikely to become destinations for wireless, according to Tailbase’s Lapointe. “I’m
impressed with Glentel’s merchandising,” he admits, referring to the wireless retailer’s store-within-store concepts,
“but it’s not first in my mind for cell phones, although it’s a
lot better than Walmart. At least there is somebody there
who knows what they are talking about.”
Who Shops Target?
Lapointe visited the Target store in East York while on a
business trip to Toronto. “I was very impressed with the CE
department, and the clean layout,” he recalls. He decided
to buy a memory card for his smartphone. “I was also impressed with Glentel’s merchandising,” the company which
is selling various brands of mobile phones and accessories
from Bell, Fido, Rogers, and Virgin within the CE department. “They were nice, and let me try it before buying it,
and made a $100 sale. I would have bought one a couple
weeks earlier at my local Best Buy, but they didn’t have it
in stock.”
Choosing Glentel, which is already the purveyor of wireless products and plans in Costco stores in Canada (along
with its own branded stores that include T-Booth and WirelessWave, among others,) is an example of Target’s willingness to let outside experts run specialty departments, or at
least be part of the supply chain. Starbucks operates coffee
shops in most Canadian locations. The groceries on sale
at Target Canada are brought to the backdoor by Sobey’s,
whereas Walmart handles its own supply chain.
But male CE industry types are not the target Target shopper. “The stores are laid out for the female consumer,” says
Stephens. He points to vast sight lines so departments can
be spotted easily from afar, and shelves that do not rise as
high above the floor, to accommodate shorter reaches.
Tom Hickman, Vice President of Electronics at Nationwide
Marketing Group, which bought Cantrex last year, points to
Target’s customer base as a significant strength. Based in
Winston-Salem, NC, the 40-year-old marketing group serving thousands of independent storefronts has always had to
consider Target. “Target has a broad and affluent customer
base,” says Hickman. He cites the educated female aged
25-to-45 years old as the prime demographic, “making the
average purchase more profitable.”
Studies indicate that Target’s strategy of offering what is
perceived as trendy or trend-setting merchandise, particularly clothing, instead of deeply discounting already
cheap junk, has attracted shoppers who are younger, more
Target’s electronics department carries a variety of items, both big and small; from a selection of TVs, to digital cameras and DSLRs, and mobile phones.
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educated, and wealthier than Walmart’s. The median Target shopper in America is 41, and there is an 80 per cent
chance that he or she has attended college, and 45 per
cent chance that they have graduated. Median household
income of the customer base is $US63,000. Just over
three-quarters of its shoppers are women, and more than
45 per cent of the households have children.
The Shopping Experience
“Expect more. Pay less,” are two imperatives trademarked
by Target. “Fast, fun, and friendly is a Target motto,” our
anonymous ex-Target exec reminds us. He notes that about
90 per cent of team members are trained to use the cash
registers. The only exclusions are stockroom and other
workers with no contact with “guests,” as Target-types prefer
to call shoppers. (Marketnews noticed during an opening
day visit that no items were identified as being “On Sale” in
the East York store. Instead, large cards identified them in
Target talk as having a “Temporary Price Reduction.”)
If there is a third person in a Target checkout line, a team
leader in charge of guest experiences may decide to add
another team member as a cashier, or have the guest led
to another register. At the Shoppers World store, only automated self checkout machines are available at one end
of the store. Some shoppers reported the machines were
very slow to recognize and process cards. At the Milton,
ON store, we happened across a bright red phone on the
wall. Pick up the receiver, and an automated voice allows
you to press “1” to have a customer service rep assist you,
or press “2” to speak to one over the phone.
The stores are attractive and well laid out is a comment
frequently made by marketing professionals. “Target stores
are a step up in design from a Walmart,” says Linhares of
Linen Chest. “Their merchandising and overall layout is
more appealing, with clean, bright colours.
“They focus on design. Many of their house brands are
well packaged, well designed, and differentiated enough,
avoiding comparison shopping. They are Walmart with
emotion. They appeal to shoppers’ emotions, and not just
their pockets.”
Stephens concurs. “The strength of Target for the last
decade has not been prices,” he emphasizes, but merchandising. Whereas at Walmart, every ounce of effort is made
squeezing cost out, at Target, the emphasis is on design
and experience. Price is not the primary concern.
“Their stores are attractive, and appeal to consumers,”
he observes. “They’ve made some very good designer
alliances, like Jason Woo, and Roots.” These brands, like
Apple, of course, add to the cachet of the Target brand.
It hasn’t been uncommon, however, to also overhear
Through a partnership with Glentel, Target features a variety of smartphones from Bell, Fido, Rogers, and Virgin with
knowledgeable sales staff.
shoppers comment that the stores look like cleaned up
Zellers locations, right down to the red décor and redshirted employees.
Speaking of which, some Target Canada team members
on the floor are, in fact, ex-Zellers employees, who were
guaranteed an interview, but not a job. There is a split
among Canadians’ reactions to the hiring or not of ex-Zellerites. Some feel they were overpaid, unhelpful, and poor
housekeepers in their previous jobs. Others feel they got
the dirty end of the stick. That latter view, not surprisingly,
prevails at the UFCW (United Food & Commercial Workers)
which represented workers at many Zellers stores.
Target, by the way, is staunchly anti-union, according
to the ex-exec. Although it does not have the high profile
of anti-unionism Walmart has, he says the retailer will do
all it can to prevent unions from being established in its
stores. He recalls one store on the east coast of the U.S.
which was being organized by a union, and which shut
down for six months for renovations. “Target believes it
doesn’t need third party reps, and can look after its own
employees. They make sure their leadership is listening to
its employees. I believe they do that, and there is no need
for a union.” None of Target’s stores, he adds, have ever
been unionized.
On the Web front, while e-tailing is a large part of the Target strategy stateside, the Target Canada Website is strictly
While U.S. Target stores are typically in the range of 95,000 to 135,000 square feet, Canadian stores will be much
smaller, at 25,000 to 90,000 square feet; though the retailer will be expanding 40 of them by an average of 15,000
square feet each.
informational, directing people to stores, with no e-commerce. There has been no buzz about e-tailing in Canada.
“Our current priority is opening our 124 stores on time
and on brand,” says Elson. “We do not want to detract from
that priority, so we will not have e-commerce initially.”
But she doesn’t close the door on the possibility of a
Canadian e-tailing site in the future. “While I don’t have
additional details to share at this point in time,” she notes,
“Target’s digital strategy, including e-commerce, will continue to evolve.”
For now, it doesn’t appear as through the Target.com
Website ships to Canada.
Security
Target has made serious efforts to make its products
available for shoppers to touch and feel and operate,
which is particularly important with the CE category. When
small and valuable items like cameras or iPods are on
open display, it creates a challenge to prevent them from
leaving the store without being purchased. “If you lock
them up,” notes Ravinder Sangha, Marketing Manager for
Halo Metrics, a Richmond, BC-based national supplier of
security and asset protection, whose products will be in
some fixtures in Target Canada, “you need more staff to
demonstrate them and serve the customer.
Eric Blais, Founder & President, Headspace Marketing,
Toronto, ON: “I don’t know if Canadians will see Target as a
destination for all their needs. They have great deals on apparel, and house brands, but an iPad is an iPad is an iPad.”
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“There’s an instant lift when product is in the hands of
the shopper,” he adds. “Typically, sales are hampered/
curbed when shoppers can’t get their hands on products.”
Target has expensive, small CE electronics, like digital
SLRs, on open shelves so they can be manipulated. “Target
has an extremely good APP (Asset Protection Program),”
says the ex-Target executive. Products and technologies
from Halo Metrics, like EAS (Electronic Article Surveillance)
chips, RF (radio frequency) technology, monitoring systems,
and other technologies help reduce theft. “These help
balance the use of staff and the need for security,” says
Sangha. “With these, staff can focus on serving and selling.”
Field Agent Canada’s Doucette agrees that: “Target has
very interesting ways of merchandising consumer electronics.” He speaks of a Target store he visited in New York
City that used touch screens, which allowed shoppers to
explore games without having to interact with staff, and
without the product being hidden behind a counter.
Our ex-Target exec divulges that Target is experimenting
with advanced security measures like facial recognition.
He further states that Target Canada will partner with law
enforcement agencies here, as its parent does in the U.S.
“They want to help break up theft rings. It’s part of the
corporate DNA.”
What’s Not to Like?
“The President of Target Canada [Tony Fisher] said that Canadians are less likely to shop one store for all their needs
than Americans,” says Blais of Headspace Marketing. “And
he said that they will have to change this.” Blais sees this
as both amusing and perhaps a bit overconfident. “Is Target’s success in Canada based on changing that shopping
pattern?” He thinks it a tall order. (For the record, Fisher
moved to Canada last year, and had to furnish his house
and shop for sports gear for his kids. Contrasted to the
U.S., he told the Financial Post, “There just isn’t the same
breadth of options from a one-stop shopping experience.”
Going to different retailers gave him insights into Canadian
retailing and how Target could compete here.)
“They created so much buzz around apparel before the
stores opened,” Blais adds, “with their alliances with Roots
and Jason Woo, trying for the Canadian flair. I don’t know
if Canadians will see Target as a destination for all their
needs. They have great deals on apparel, especially house
brands, but an iPad is an iPad is an iPad.”
East Toronto received its first Target flyer towards the
third week of April. It was colourful, and on glossy paper
instead of the newsprint used by Zellers. Not surprisingly,
the most space was devoted to apparel, followed by
grocery items. There were three pages out of 28 devoted
to CE, plus a page of music and gaming software, with
the following items featured: a notebook, a mouse, two
printers, two TVs, a soundbar, a game system, two smartphones, three cameras, and a GPS.
The lack of CE products in the flyers is noted by
Lapointe. “I was expecting more noise,” he says. “They did
not have an exciting flyer.”
Still, one shouldn’t underestimate Fisher and his approach to proffering his company’s goods. He has been
with Target since 1999, and with a degree in marketing
management and a minor in computer science, is known
for using technology and data analysis to drive sales and
focus on providing what customers want. The aforementioned notebook at $699.99 offered a $75 Target gift
card with it, and one of the printers, priced at $49.99,
offered a gift card, of $20. The 250 GB Xbox 360 bundle
at $299.99 with controller and five games also included
a gift card, for $30. Obviously, these were very attractive
offers to consumers.
As a divisional merchandise manager for toys and sporting goods, Fisher and his team used shopper insights and
data about them to reconfigure the toy area to make it
easier to navigate and, consequently, a more enjoyable
Jeff Doucette, Founder & President, Field Agent Canada,
Calgary, AB: “If we’ve learned anything about Target in
two years, it’s that they know a lot about running stores.
They do very good marketing. They are going to be a
formidable competitor.”
Two years ago, a U.S. Target store had cleverly displayed
a cross-promotion with Call of Duty Modern Warfare 3
and PepsiCo products, including colas and potato chips,
showing merchandising smarts from which any retailer
can learn. Photo by Jeff Doucette
place to shop. In sporting goods, his team extensively analyzed shopper demographics and sales data, in order to
customize each store’s assortment of product. Assortment,
instead of being based on the size of a store, was based
on shopper preferences.
Perhaps this, in addition to difference in size, explains the
fact that the sporting goods offerings, coincidentally noted
by Marketnews, varied so widely between the East York and
Shoppers World stores, both of which are in east Toronto.
The former was at least twice as large as the latter.
What’s more, as an incentive to shoppers, in February,
long before Target opened its first store in Canada, the
company introduced its Red Card debit and Royal Bank
MasterCards, both offering a five per cent discount on
purchases. Online purchasers were the first to benefit from
the discount.
“I haven’t noticed any exclusions,” replied Field Agent’s
Doucette, when asked if this applies to Apple products
as well. Apple, of course, has notoriously low single digit
margins for retailers.
Is Target willing to take a loss on selling these products?
This has even the experts baffled. “I don’t get their business model on certain categories,” admits Blais.
But this loyalty incentive seems to be working. By the
end of March, the company claimed that 44,000 Canadians were enrolled with Red Card. Canadians shopping
Target in the U.S. had another 30,000 Red Cards from
south of the border, but they are not accepted here.
Combined with Target Canada’s liberal 90-day return
policy, which prominent in-store signs advise requires no
receipt, just a credit card or sufficient identification, the
Red Card discount is looking to be a significant attraction.
The card may also help to counter-act some of the pricing differences, not just between Target Canada and Target
U.S., but also between Target and Canadian competitors
like Walmart. In comparison shopping, Doucette’s company found Walmart to be about 8% cheaper, on average.
But he figures Target will eventually even out prices as
it adjusts to the Canadian market. And the 5% Red Card
discount can help to minimize the difference.
the Aurora, ON store on opening day, “and the one thing
that could hurt them.” He does qualify that the bare shelf
phenomenon will likely be short-lived. They have supply
chain problems right now,” he observes of the start-up
period for so many stores. Marketnews has learned that
Target Canada’s three distribution centres are operated by
a third party. Doubtless some frank and earnest discussions will be taking place. “The customer doesn’t care why
the shelf is bare,” he states. “They just know that it’s bare.”
Fisher and his team were surprised by the initial flock of
shoppers. “The response from guests in our soft opening
phase was positive,” says Elson, “and traffic, at times, was
heavier than anticipated. We worked hard to replenish our
stores and to better understand volume needs, and how
guests in Canada shop our breadth of product offerings…”
To open 124 stores in less than 10 months, she adds,
“represents an enormous undertaking and our first store
openings have produced valuable insights on how Canadian guests shop our stores that will help us continue to
fine tune and enhance the Target experience in Canada…
and we will apply our learnings into our forecasts for
future openings.”
Be that as it may, both mainstream and trade media
in Canada and the U.S. hopped on the issue of empty
shelves. Some bloggers gleefully pointed fingers, too.
Whether they were making a mountain out of a molehill
or not, remains to be seen. Our experts all feel the retailer
will iron out supply wrinkles. After all, the company managed to settle the $250 million lawsuit over the use of the
Target name in Canada launched by the Canadian retailer
that operates Fairweather and other clothing shops.
There have been some great merchandising strategies
that indicate interesting things to come if Target Canada
follows suit with the U.S. in that department. Two years ago,
Doucette was in Minneapolis, sussing out Target before
delivering seminars to Canadians in the retail chain about
what to expect. Doucette was so impressed with a cross
promotion for Call of Duty Modern Warfare 3 and PepsiCo
products like Pepsi Cola and Doritos, he posted an article
online about it, complete with photos and video. “The display was in the food section,” he explains to Marketnews.
“Think about the genius of this display,” advises his site.
“When a new video game like COD MW3 comes out,
gamers often lock themselves down and spend long periods of time tackling the new game. They need munchies
and caffeine, and this display of PepsiCo products gives
COD gamers a one-stop shop for all their gaming needs.
Hurdles to Overcome
With the initial store soft openings, Lapointe, Stephens,
Blais, and Doucette all mention the lack of product on the
shelves in departments other than CE. “That could be Target Canada’s Achilles’ heel,” thinks Stephens, who visited
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Experts Say
Independents, Look Out
Jose Linhares, Director, Linen Chest and Operator of Zedlin Group: “They focus on design. Many of their house
brands are well-packaged, well-designed, and differentiated enough, avoiding comparison shopping. They are
Walmart with emotion. They appeal to shoppers’ emotions, and not just their pockets.”
“The PFresh section of the store,” Doucette continues,
“is located 100 meters from the main electronics section where the video games are usually merchandised.
While the game was prominent in the home section, this
secondary merchandising, free of purchase barriers such
as locked display cases, shows Target’s ability to be entrepreneurial and take some risks that make sense for the
growth of its business and the needs of its guests.
“This,” Doucette cautioned Canadian retailers in that
blog, “is the kind of marketing you will be up against.”
Cross Crossborder
Shoppers
Fisher and his crew have had to do some explaining as
to why Target Canada’s prices aren’t at parity with the
American stores. Everybody in the industry knows about
higher Canadian cost factors. Transportation distance is one
biggie. “It’s a long way from Target’s distribution centres in
Milton, Cornwall, and Calgary,” muses Doucette, “to many of
their stores. The bilingual packaging requirement is another
outstanding one, but many consumers don’t get it yet.”
One apparently knowledgeable poster with the online
handle StephenBB81 gave figures on Huffington Post
Canada, how Canadian import duties dramatically affect
the retail price. “Our Government,” he writes, “applies 18
per cent duties on textiles from China/India. The U.S. Government applies four per cent duties.”
He then follows up using a T-shirt which costs a dollar in
China, and gives U.S. mark-up figures. “Import company
buys for $1.04,” he writes, incorporating the duty, “puts a
20 per cent margin, equals $1.30. Warehouse company
buys for $1.30 puts a 20 per cent margin, equals $1.63.
Store buys for $1.64 puts a 75 per cent margin, equals
$6.56. So the U.S. shirt costs $6.56.”
Using the same markups factoring in the Canadian 18
per cent duty, he calculates that the Canadian retail price
will be $7.40. “A difference of 14 cents at import equals
84 cents different in pricing on the shelf!!,” he exclaims,
adding that “the Canadian store actually makes WAY less
money seeing as they have higher labour costs, higher
shipping/receiving costs, higher fuel costs.”
There have also been complaints about product selection. Many online bloggers, and teenage girls known to
your correspondent, have complained that the selection of
brands they have grown to love at Target in the U.S. is not
available up here. Catty comments or not, these kids are
the future mainstream consumers.
While, as earlier noted, many on the CE side feel that
discounters like Walmart and Costco are most likely to feel
the direct heat from Target’s entrance north of the border,
many of the marketing and management experts we
spoke with state that independents and big box electronics
specialists are just as likely to feel the impact of CE sales
going to Target.
“People will lose market share,” Doucette says bluntly.
“The whole Target demographic is aimed at women. The
stores are probably more female friendly. Mom is in the
store, and they know that she controls the family’s purchasing power.
“Even though the consumer electronics category is maleoriented,” he continues, “Target will have the advantage.”
He and several others gave reasons for this.
First and foremost, as families are in the store, the
male will likely excuse himself to go hang around the
CE department, and thus Target becomes a known and
safe place to buy consumer electronics, especially items
that have become commoditized, like televisions. There
are also more females buying electronics these days,
and Target’s liberal 90-day return policy appeals to them.
“Women are great returners,” observes our ex-Target exec.
But others urge retailers that it isn’t worth panicking about.
“They are seasoned professionals who are used to selling against some of the biggest box store chains in North
America,” says Chris Hetherington, General Manager, Strategic Development for Mega Group. “Our retailers have been
competing against the likes of Walmart, Costco, Future Shop,
Best Buy, Canadian Tire, and others, for years. One more general power retailer entering this market in CE will probably
not have much effect on the independent. The folks that will
buy CE from Target are not the independent’s customer.”
Satov finds the CE marketplace interesting. “Everybody is
in trouble, including Future Shop and Best Buy, although a
little less in Canada. For those two, online is a big factor in
price pressure. When shoppers go to Best Buy, they either
get a price match or they showroom.” His three-point plan
for other retailers is that they must 1) make certain on or
offline price is not a penalty; 2) offer a value proposition
in-store; and 3) be a player in the online game too.
Linhares adds that operations need to be “tight and lean.
Use a virtual platform,” he advises, “and distribution centre
to ship directly to customers, bypassing the need to carry
much back-up inventory in stores. Make the stores more
of a bricks and mortar virtual hybrid concept. Carry less
inventory, but be able to ship in 24-to-48 hours to customers. Invest in design and outsourcing.”
“Independent retailers,” says Gumiela of Power Audio
Video Group, “provide core representation and service
in areas such as 12 volt, home automation, design and
installation, whereas mass merchants are a cash and carry
solution for consumers.”
Independents need to simply continue to concentrate on
their strengths, says Linhares. “If you can’t beat them,” he
notes, “do not join them. Instead, keep true to your niche
and make it better.
“But,” he adds, “focus on some items to use as loss leaders. Make sure they are highly visible, and show that you
can also be a price leader.”
Hickman of Nationwide Marketing Group counsels
concentrating on areas not well served by Target. “It is difficult for them to sell value-added products,” he says, “that
require selling, service, and expertise. They are challenged
by technologically advanced products such as 3D and
SmartTV, which are feature-specific. Overall, Target is not
fully committed to the category.”
He, along with Hetherington, Gumiela, and Collier, all
advise CE retailers to take advantage of the programs
and technologies offered by their buying groups. Cantrex
Nationwide for example, Hickman points out, has introduced Membernet for its retailers, which allows real-time
monitoring of competitor prices, availability of vendor
deals, and customizable downloadable advertising content
for in-store, broadcast, or print usage.
“Look at your assortment and adjust it,” counsels
Lapointe. “Independents are a resilient bunch, and they
will navigate the changes as they did with Walmart.
“They’ll find better, high margin products, but,” he says,
“I think they need to be in totally new categories. Look
at Leon’s Furniture and Brault & Martineau,” he suggests.
They are doing very well. Best Buy is hurting from the
cycle: when will they see the customer again? Leon’s has
a lot more reasons for the customer to return. Perhaps the
right mix of products will include furniture and bedding.
“Target’s big advantage is that clothing, groceries,
and other goods give the consumer reasons to go back
every day of the week,” he adds. “As yet, Target is not
established in Canada as a destination for CE, so the
independent has to look at what he does differently than
Target to differentiate himself, such as having expertise in
connectivity.”
Availing oneself of the technologies available to them
is critical for retailers, Lapointe stresses. Web design and
tracking services are just two examples, he notes, which
can greatly help independents. “Retailers must realize
that people shop online. They might not buy online, from
you or your competitor if you or they don’t have a good
Website. But they might buy at your site, or your store, if
you have a good online presence.”
Stephens emphasizes what he calls the disappearing
middle. Middle class jobs and income are disappearing, and
so are middle of the road retailers. “It’s death to be in the
middle,” he says.” He uses the terms High Fidelity versus
High Convenience. Since Target is the latter, the independent
retailer likely has to choose the former: selling exclusive,
premium priced, limited availability, niche-oriented products
to which the consumer develops a strong attachment.
Gumiela opines that while Target’s CE offerings are
fairly broad, they are also rather shallow. It is unlikely, he
speculates, that the independent can compete with Target
on price alone. “You can’t out discount the discounters,”
he quotes a specialist on fighting Walmart 20 years ago.
“That’s still true today.” mn
For now, the Target Canada Website is for informational purposes only, directing customers to bricks and mortar
store locations. Will the retailer get into e-tailing north of the border? Time will tell.
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Rocelco Inc., 24 Viceroy Road, Concord, ON L4K 2L9
Phone (905) 738-0737 • 800-387-9101 • Fax (905) 738-0396
[email protected] • www.rocelco.com
MNAPR13.indd 41
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Small Appliances
are Booming:
Are You on Board?
APPLIANCES
By Christine Persaud
(with additional reporting by Adam Grant)
It’s no secret that the high-tech home is becoming a reality. Even non-tech-savvy families are bound to have at
least Wi-Fi, plus a smartphone or two, and a few devices
that can seamlessly communicate with one another.
For the most high-tech of homes, major appliances are
joining the connected “smart” device category. We looked
at some smart appliances earlier this year, and we’ll revisit
those later on in 2013.
But let’s face it. Major appliances aren’t a category one
can just easily experiment with.
There is a segment in appliances, however, that lends
itself far more easily to a level of experimentation: small
appliances and gadgets. And they’re becoming increasingly high-tech.
Before you shrug off the idea, consider this: according to
recent research from NPD Canada, small appliances as a
whole are actually the only segment showing retail growth
across all consumer electronics, IT, and video gaming sectors in terms of Canadian market dollars (revenue) at retail.
The growth in small appliances is being fueled by the
trend toward entertaining at home, and consumers’ increasing interest in healthier eating habits, and more cooking and baking to control ingredients and food intake. As
homes are being renovated, consumers are more likely to
upgrade their small appliances as well to fit the new décor.
It’s not surprising, then, that the kitchen electrics segment
in particular is leading the pack.
In 2012, the small domestic appliances category represented $1.27 billion, with 3% dollar growth versus the
year prior. Interestingly, while the average selling prices of
other industry product segments saw decreases, the average price of small appliances jumped 2%.
The industry is looking at ways of offsetting declines in
other areas of CE and IT.
“There is a definite opportunity for other sectors to
become part of the appliance landscape by learning how
they can collaborate or compete with existing manufacturers,” says Armin Begic, Manager of Home Appliances at
The NPD Group.
Naturally, one doesn’t want to divert too far from his
While it costs a hefty $3k, Krups’ Barista exemplifies the popularity of the single cup coffee machine market, and the
breadth of models available to fit both mid and higher-end retail shops.
core. We have to be realistic. A small custom AV shop
isn’t going to start stocking toasters. But high-end coffee machines? Sleek and sexy vaccums? These might be
worthwhile, and fitting, additions.
And the latest innovations are making the cross-over
easy. There have always been innovative ideas in small
appliances; from electric shavers, to electronic wine chillers, and miniature vacuums that clean the floor automatically whilst you sit idly by. But the latest models are almost
on a futuristic level, falling far more into the tech sector
than ever.
Here, we’ll take a bird eye’s view at some of the biggest
trends and most interesting new products across four
key areas in the home: kitchen appliances, home care,
personal care, and laundry.
In the Kitchen
NPD Canada says that kitchen electrics accounted for
almost half of revenue in 2012 for the small appliances
category, and 57% in Q4. The category grew at 5% in
2012, outpacing total small appliances.
While it might not be feasible to stock a shelf full of
items, even a custom AV shop can benefit in displaying
a few in the waiting area, or within a demo set up, to illustrate the high-tech home to the fullest extent.
Most sources, including NPD, point to the single cup coffee
maker as being the biggest category of growth in this area.
NPD says coffee/espresso makers represented a third of the
dollars, with single-serve brewing systems leading the pack.
Indeed, we covered some of the latest models late last
year, and new innovations are being released constantly
from a host of manufacturers.
Some boast highly customizable features, like letting you
program a person’s specific settings so he gets a perfect
cup of coffee every time. Others add interesting timer
functions, and additional features, like selectable brew
strength, and even serving size.
Coffee makers are becoming so hot, in fact, that highend manufacturer Krups has come out with a $3,000
machine. Yes, you read that correctly: three zeros.
The Krups Barista, which just hit the market in March/
April, has a one-touch digital display that can be used to
brew the perfect cup of coffee for each member of the
household. Everything from the strength, to the temperature, quantity, and grind of the coffee for each person can
be pre-programmed as a Favourite so that the person need
only tap the button and watch his perfect caffeine creation
be made in front of his eyes. Finished in two-tone black
and silver, the Barista is clearly targeted toward a very
specific market; don’t expect to see it on too many retail
shelves. But it’s very existence is an indication of just how
much attention is being paid to the single-cup coffee machine market, on both the retailer as well as the customer
sides. Which means options of all kinds (and more reasonable price points) should be seriously considered.
Anyone who bakes knows that scraping the bowl at the
end is arguably the most fun. Sure, it’s nice to grab a fingerful of raw cookie dough. But consider that there’s probably enough batter lining the edges of the bowl to make
another cookie or two. In comes the Breville Scraper
Mixer Pro ($350), a beater that simultaneously scrapes
Overview
• Small appliances are the only segment showing retail growth across all consumer electronics, IT, and
video gaming sectors in terms of Canadian market dollars (revenue) at retail.
• Products like tech-savvy vacuum cleaners, kitchen gadgets, or single-cup coffee makers, are worth
experimenting with to help offset declines in other areas of CE.
• Bringing on small appliances that complement your offerings can point to smart diversity, not fragmentation.
At-home carbonated beverage making is a relatively
new trend, and appliances like the SodaStream allow
you to make your own sodas in the flavour of your
choice.
42 MARKETNEWS
MNAPR13.indd 42
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APPLIANCES
the sides of the bowl as it mixes so that you maximize
the amount of batter, and also ensure everything is mixed
well. The technology used is “planetary mixing,” which
does a complete 360-degree swipe in a counter-clockwise
motion, followed by the clockwise sweep of the beater.
Making it even more tech-savvy is a built-in timer. This
bowl could do away entirely with the need for a spatula.
(Of course one can still dip his finger in to get that quick
taste before washing time.) It comes in stainless steel,
cherry, cream, or liquorice. Customizable colour options
are also available for the true baking connoisseur.
Clearly there’s a trend here that Hamilton Beach has
also picked up on with its 70730 Bowl Scraper Food
Processor. Using a 450-watt motor, the bowl has three
blades that scrape away food from the sides. There’s also
a chopping blade and a slicing/shredding disc.
The toaster is a fairly basic kitchen gadget, and remains
the top kitchen gadget that consumers cite using on a
weekly basis, says NPD. It doesn’t really leave much
space for innovation aside from the single-side bagel setting, right? Wrong. Consider the Adjustable Bread and
Sandwich Toaster, currently available through online
catalog Hammacher Schlemmer, which can adjust to accommodate various sizes of bread slices, or other pastries
or items. Using an adjustable lever at the top, widen or
squeeze the space based on your needs, and insert an
item that’s up to 2.33 inches thick. This means you can
toast everything from a thin slice of bread to a croissant.
And there’s also a metal sandwich basket for toasting an
entire sandwich. There are 10 toast settings so you get just
the right amount of heat and crispness.
Another area on the small kitchen appliance side showing growth, reports NPD, are beverage appliances, like
juicers and blenders. This isn’t surprising given the nation’s
increasing focus on healthier lifestyles and more natural
foods, juices, shakes, and smoothies.
Perhaps on the not-so-healthy side, however, is the
trend toward at-home carbonated beverage making. The
SodaStream, for example, is already being offered online
through tech retailers like Best Buy. Currently there are
nine SodaStream models on the market: Crystal, Fizz, Genesis, Jet, Penquin, Pure, Source, Revolution, and Limited,
with a starting price of $99.99. Each system comes with
a carbonating bottle made of either BPA-free plastic or
glass that can be filled up with cold (ideally refrigerated)
water. Once the CO2 cylinder is inserted into the machine
and the bottle is placed in its designated slot, the user just
needs to press the carbonation button. He can determine
how much he wants to carbonate the beverage. Then, it’s
time to add the flavour. SodaStream offers a collection of
options, including colas, fruity mixes, iced tea, and more.
Diet and caffeine-free selections are also available.
The BPA-free bottles can be used for up to two years
before they need to be replaced, while the glass bottles
can be used indefinitely. Replacement CO2 cylinders can
be purchased as well.
Taking the kitchen “appliance” category to an even
higher-tech side is Click & Grow, a designer of indoor
smart gardens. While the company is currently seeking
investors on Kickstarter, the concept is an interesting one
that may very well reach the retail level soon. The product
is the Smart Herb Garden, a self-watering plant system
that can help grow multiple herbs and vegetables at the
same time. Supported herb and vegetable seed cartridges
all feature a nanotech material that is engineered to provide the plant roots with the right level of oxygen, water,
and nutrients at a given time. There aren’t any pesticides,
fungicides, or hormones used. Included in the starter kit
will be basil, thyme, and lemon balm cartridges. Refill
cartridges will be available for chili pepper, mini-tomatoes,
strawberries, peppermint, spinach, salad rocket, and an
array of different types of lettuce. The catch here is that
sunlight isn’t required: it features an LED “natural-looking
light system” that won’t prove harmful to one’s eyes (especially curious children.) It uses just six watts of energy,
while the estimated annual hydro cost of operating this
product for the full year is $5. The company is working
toward a US$79 price point, though an actual release date
hasn’t been confirmed. When you consider city apartment
and condo dwellers that don’t have gardens, or may not
even have balconies, this is a great option to still get fresh
fruits and veggies at home.
Note that this isn’t Click & Grow’s first foray into smart
electronic planting devices. In August 2012, the company
released its Electronic smartpot for US$59.99. It is made
of ABS plastic and includes a pump, water reservoir, and
sensor that specifies if the plant needs water, or if the
machine’s battery power is low.
The system, which “measures all the necessary parameters and doses an exact amount of water, fertilizer and
air according to a plant’s needs,” comes with the option of
four starter kit cartridges: basil, chili pepper, cockscomb,
or mini-tomato. For the best results, smartpot needs to be
placed in a sunny area.
“Though people do not tend to buy major appliances
often,” says NPD’s Begic, “smaller gadgets that enhance
the experience of having friends and family over and that
improve the overall look of the kitchen with a nominal
investment are purchased with much more frequency.”
It’s Personal
Personal care gadgetry can be fairly simple, but there are
also some ways to take the category really high-tech. The
very fact that Philips Electronics has shifted its focus from
AV to health and wellness is telling as to the impact this
category has on this side of the business.
That said, NPD Canada does confirm that the personal
care category as a whole was flat in 2012 versus 2011,
and was actually down a percentage in Q4. The largest
categories, men’s electric shavers and hair dryers, declined
by 3%. But interestingly, facial trimmers, hair clippers, and
hair stylers grew last year.
Philips’ latest innovation in this space is the 9-in-1
Grooming Kit, a rechargeable shaver that comes with
multiple attachments; from a full size trimmer designed
to tidy up one’s beard or head hair, to a mini-shaver for
cleaning up edges. There’s also a precision detail trimmer “to create and maintain” one’s lines, a 41mm hair
clipper, and, of course, a nose, ear, and eyebrow trimmer.
The included hair clipper comb, and beard and mustache
comb, each has nine settings. All attachments can be easily washed in the sink. The set sells for $49.99.
Known for its expertise in smart body scales, Withings
has launched its Smart Body Analyzer that was introduced at CES. The $150 scale looks like a traditional scale,
but tells the user way more than just what he weighs. It
also shares data relating to fat mass percentage and heart
rate; and even monitors the air quality of the space it’s
in. The sensors that pick up this information are located
underneath the scale’s glass top.
What adds to the coolness of the Analyzer is that it can be
synced with one’s mobile device (via Bluetooth, Bluetooth
Smart, or Wi-Fi), so that the user can keep a record of his
weigh-in history, BMI (body mass index), fat mass, and heart
rate activity through a corresponding iOS or Android app.
A single Smart Body Analyzer scale is designed to work
for up to eight users or account holders, so everyone in
the household can monitor his own data. Withings claims
that “each user is automatically identified by the scale”
after stepping on it.
At the core of personal care is getting a healthy amount
of sleep, but too much sleep can be a negative thing, too.
Helping users wake up is Sonic Alert’s Sonic Boom
alarm clock, which adds an interesting twist to the typical
alarm sounds: vibrations that can alert you when it’s time
to get up and at ‘em without waking your spouse, or the
baby in the room.
The SB200ss (“ss” stands for “Super Shaker,”) can blare
tunes or a tone to wake you up at extra-loud (113 db) or
soft volumes. But if you prefer to be woken without noise,
use the 12-volt bed vibrator, and place it somewhere on
your side of the bed, perhaps under your pillow, where it
will buzz at your specified wake-up time. The clock itself
has a display with a five-level dimmer switch, and can
display regular or military time. It sells for US$45.
Caring for the Home
One of the most obvious choices to toy with in the home
care area is the vacuum, which has moved beyond being
a bulky, ugly necessity. The latest vacuums are sleek,
compact, and employ design principles that make them
showpieces as much as functional tools. And the technol-
While sales of men’s shavers are on the decline, clippers
and trimmers are seeing upward sales. Philips’ 9-in-1
grooming kit brings together both worlds by functioning
as a mini shaver, as well as trimmer and clipper for the
entire facial region.
Want your own fresh herbs at home but don’t have a
garden? Click & Grow is still working on getting funding
for its Smart Herb Garden, but the company may be on
to something; especially for the condo and apartmentdwelling market.
With the Withings Smart Body Analyzer, users can not
only check their current weight, but also fat mass and
heart rate; plus sync the data wirelessly and store it on
an iOS or Android app.
MARKETNEWS 43
MNAPR13.indd 43
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APPLIANCES
ogy they incorporate make them one of the most techsavvy categories in the home care segment.
NPD reports that while the traditional vacuum segments
of uprights and canisters both declined in 2012, the more
nimble (and arguably convenient) stick vacuums saw
strong growth.
That said, there’s still plenty of interesting innovation in
the compact canister and slim upright category that may
help rejuvenate the category; along with some neat new
innovations on the automatic floor cleaning side.
Dyson is known for its high-tech and innovative designs
in both vacuums and bladeless fans. The brand carries
with it a cachet of prestige, and attracts the customers
with disposable income, or simply those passionate about
home care and who feel the product is worth investing in.
The two latest models in Dyson’s upright and canister
categories are the DC51 Animal and the DC46, respectively. Both sell for $549, and incorporate essentially all
of the best Dyson technologies created up to this point
in one machine. This includes the two-tier cyclone, ball
design for easy maneuverability, and, of course, no
bags, belts, or replaceable filters. The filter need only be
removed and washed in cold water once a month, and left
out to air dry for 24 hours before being put back in. Both
are also designed for varying floor types, from carpets to
hardwood; plus furniture, drapes, and everything in between. The DC51 is a “push” type vacuum, while the DC46
is a “pull” with the canister following along as you move,
and a retractable cord providing more give as needed.
The machines are impressive, with the ability to capture
microscopic dust using the 2 Tier Radial Cyclones; as tiny
as 0.5 microns or 1/5,000th of a pin head. I witnessed
this after having cleaned a just-swept floor with the DC46.
About a cup full of dust and debris still managed to find
its way into the Dyson’s canister. The upright model also
has patented carbon fibre brush bar technology; while the
cylinder version includes two separate airflow channels,
which allows suction to be distributed evenly across all
floor types. The convenient click and switch method for
changing the cleaning tools can also make them fun and
easy to demo.
But Dyson isn’t the only vacuum company that’s entered
the über high-tech realm.
High-end manufacturer Miele has introduced its S8
vacuum cleaners, which boast DynamicDrive swivel castors that the company says allows for a smoother run on
structured hard floors. The shock absorbers are made from
the same high-tech foam rubber used in car shock absorbers, says Miele. Further adding to the car comparisons,
the S8 has an underbody light that remains on for 30
seconds after the power has been turned off, allowing for
the vacuum to be “parked” in dark spots, just like a fancy
sports car. There’s an automatic setting that will adjust
suction based on the type of flooring; and the unit has low
operating noise levels thanks to the encapsulation of the
motor and insulation.
Taking a tip from the futuristic Dyson design, Samsung
recently launched the MultiChamber Vacuum System
VCC96PO ($499.99), which looks like a sophisticated
robot of sorts, finished in pale gold, with an upright rocketlike shape that can sit flat when packed away. It employs
an auto dust sensing system that will adjust suction based
on how deep the dust and debris is, plus an easy-to-remove two-litre dustbin. As with the Dyson, it’s also bagless.
And the included PowerBrush self-propels, and is easy to
maneuver for comfortable operation, says Samsung. It also
boasts quiet operation, and what Samsung deems a “more
pleasant” sound than what you’re used to with other vacs.
Serving a particular niche is the Mirra 530 from iRobot, which provides pool owners with a far less strenuous
way to get the above, or in-ground pool cleaned. Introduced at CES, it can clean a pool’s surface and water without using its filtration system, hoses, or booster pumps,
claims the company.
The Mirra 530 features iAdapt Nautiq technology that
allows the ‘bot to “size up the approximate dimensions
of the pool,” then determine which cleaning cycle would
be the best and most efficient option. When in action, it
makes multiple passes over the entire inside of the pool,
floor to waterline, including walls and stairs. Overall, it can
pump and filter 70 gallons of water per minute.
It is also able to identify potential in-pool obstacles, and
change directions to help ensure that the product’s 60-foot
floating power cord doesn’t get tangled up. The subsequent debris is captured and stored in dual-top load filter
canisters located on the machine.
The cleaner can keep chlorine water evenly distributed,
and comes with a PVC active scrubbing brush. It was
released April 16 in the U.S. for US$1,299.99. Canadian
pricing and availability hasn’t yet been determined.
Of course not every home has a pool, which means such
a product will only be suitable for a small subset of retailers. Every home, however, does have gutters.
We wrote about iRobot’s Looj 330 (US$299.99) in
the CES issue, but it’s worth revisiting here. The unit is a
high-tech way to get those pesky gutters cleared, using the
same principles as iRobot’s floor cleaner and the aforementioned pool cleaner. It has a four-stage auger that is
made up of the breaker, polypropylene sweepers, ejectors
and breaker bars. A secondary set of more compact ejectors comes with the Looj as well. What’s more, this waterproof (in up to eight inches of water), remote-controlled de-
The latest model in the Dyson Bladeless Fans line, the
AM05, can expel both hot or cold air from the same unit
with the flick of a switch.
Resembling a funky rocket ship, Samsung’s VCC96PO MultiChamber Vacuum System offers quiet operation, auto
dust sensing, and a bagless design, making it easy to sell without the need to stock accessories.
vice moves at a quick pace, as the auger spins at 500RPM,
thus able to clean a 30-foot section of gutters in just 50
minutes. Two hundred linear feet of gutter can be cleaned
per charge.
Employing a similar form factor to the iRobot is the
Ecovacs Robotics Winbot. Except this device doesn’t
clean floors; it does windows. The automatic cleaner
suctions to a window or mirror via a strong motor, then
uses two other motors to move up, down, and around,
getting all of the gunk off your view to the outside world.
It uses machine washable microfiber pads for cleaning
that affix to the unit via Velcro; plus cleaning solution. It’s
powered by AC, which means your window needs to be
near enough to a power outlet to be cleaned. However,
there is a safety feature with a four-hour battery backup
that will keep the unit running if, say, the power goes out.
So you don’t need to worry about the Winbot dropping to
the floor if there’s a power outage. Two models are available: the 710 that works only on framed windows ($299),
and the 730 that works on both framed and frameless
windows ($399). Imagine having this baby running in the
store as customers check out the window displays!
Home care goes beyond just vacuuming and cleaning.
Another area where high-tech can come into play is with
heating and cooling. I’m not just talking about home automation, and doing things like controlling a thermostat with
a smartphone app. I’m talking about those good ol’ fans
that can take the place of, or complement, built-in HVAC.
We’re all familiar with the Dyson bladeless fans that
were introduced three years ago. They’re décor pieces as
much as functional ones, employing cylindrical hoop designs that, as the name suggests, don’t contain any blades
at all. And the latest innovation adds the ability to expel
either hot or cold air from the same unit. Using the AM05,
Dyson’s DC46 canister vacuum is one of the latest from
the high-end brand, boasting all of the company’s technologies to date, including bagless operation, two-tier
radial cyclones, and ball design for easy maneuvering.
44 MARKETNEWS
MNAPR13.indd 44
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APPLIANCES
homeowners can press a button for heat when they need
it. Using Air Multiplier technology, it amplifies air for longrange direct heat projection. Or adjust to cool air when the
outside temps have skyrocketed.
With the unpredictable weather we’ve been having of
late, it’s a welcome addition to have one device that can
alternate so quickly between the two. And, as company
representatives point out, one can place the fan overtop a
vent to push air further, thus requiring less heat or AC, and
cutting down on electricity costs. According to Dyson, this
can equate to up to 20% savings. What makes them great
for families is a feature that will automatically shut the unit
off if it tips over. Plus, the exterior doesn’t get hot so you
don’t need to worry about the kids burning themselves,
or plastic toys melting if they’re accidentally placed on the
fan. Adding to the high-tech nature of these fans, along
with the obvious futuristic look, is the included magnetized
remote for control. They come in a range of cool (literally)
colours for $399 each.
says Morgan. “It’s been a steady business,” he adds.
Who would buy such a thing? The obvious candidates are
students, or those living in smaller apartments and condos.
But they’ve also been eyed by cottagers, Morgan advises.
With cottage season on the horizon, it’s an interesting option to consider for your cottage/second home clients.
You may turn your nose up at the thought of delving into
the small appliances space as a retailer (independent or
otherwise), distributor, or even sales rep. But note that
the NPD Group refers to the small domestic appliances
category as being the “bright spot” in Canada over the past
few years, posting consistent growth.
Because of the relatively low cost of small appliances
and related gadgets (with some exceptions), some of the
items can be considered impulse purchases. And they
don’t take up too much real estate in a small storefront.
Even the more expensive items could be brought on
board for use, while also gauging consumer interest. Who
knows: a wealthy client might just be willing to fork over
$3k for a coffee machine after enjoying a cappuccino made
with it whilst browsing your store. Or paying $300 for a window cleaner he didn’t know existed after watching it glide
along your store windows, keeping the glass sparkling.
With sales flailing in many traditional CE categories, it’s
worth taking some bold moves to help offset declines.
And, as is evidenced here, this can be accomplished without diverting from your base, and maintaining your core
customer segment.
A vacuum, yes, is a cleaning tool. But a rechargeable
vacuum that magically slides and glides across the floor
on its own, sensing corners and docking itself in a charger
once finished? That’s a technology product. And the
sooner you understand this, the more receptive you’ll be
to widening your focus and exploring new avenues for
sales. mn
Just like automatic floor cleaners, the Winbot glides
across windows, polishing them with microfibre pads
and cleaning solution, and using AC power.
iRobot is known for its robotic vacuums, but the latest
in the series, the Mirra 530, moves on from flat floors to
clean above or in-ground pools.
This Isn’t For Me…Or Is It?
Wash & Wear
Innovations in the laundry room tend to be reserved to
new technologies integrated in washing machines and
dryers, in terms of design, energy and water consumption,
removing wrinkles, and so forth.
While it isn’t a new product, Haier has an interesting
innovation picking up steam in Canada, according to Barry
Morgan, Director of Sales for Haier Canada: portable
laundry units.
The company has two washers and one dryer model. The
washers measure at about 1.46 cubic feet, and run for $269
and $299; while the one-cubic-foot dryer sells for $299.
There’s an approximate 50% attachment rate for the pair,
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[email protected]
OVER 4500 MEMBER STORES
IN NORTH AMERICA
MNAPR13.indd 45
brandsource.ca
4/30/13 2:11 PM
SHOP TALK
by Wally Hucker
Got a retail story that should be told? Contact Wally Hucker at: [email protected]
NEW MISSISSAUGA STORE FOR LASTMAN’S BAD BOY
(l-r): Ron Starr, Mississauga City Councillor Ward 6; Jim Tobey, Mississauga City Councillor Ward
1 (includes Lastman’s Bad Boy); Hazel McCallion, Mayor of Mississauga; Blayne Lastman of
Lastman’s Bad Boy; and Bonnie Crombie, Mississauga City Councillor, Ward 5. Photo by Wally Hucker
At 6 a.m. on April 4, Lastman’s opened its relocated store
to the public, by presenting a $500 gift card to the first
shopper in line. Thousands of other prizes were given to
first day shoppers. The crown jewel of the giveaways was a
package that included a 60-inch Samsung TV and a Whirlpool major appliance package, with a retail value of $6,500.
Door crasher specials as well as breakfast were served up
for early birds.
The new store, at 1970 Dundas St. E., is just west of Highway 427. It replaces a smaller store down the road at 1450
Dundas E., which operated there for 21 years. It was one of
the first locations opened by current CEO Blayne Lastman
when he resurrected the chain. His father Mel Lastman is
the original Bad Boy, who started the company in 1955.
The newest, and ninth, Lastman’s Bad Boy store is 24,000
square feet, according to Blayne Lastman. Electronics,
primarily televisions and home theatre systems, has its
own area of about 1,200 square feet at the centre rear of
the store. The store’s appliance area, at the west end of the
store, is about twice the size of the CE department.
A ribbon-cutting official opening, attended by local
politicos and members of the trade, was held a day earlier.
Mississauga’s mayor, Hazel McCallion did the honours, in
the company of three local councillors, Blayne Lastman, his
wife Adrianne, their son Bradley and MC writer-broadcaster-comedian Ted Woloshyn.
Among CE types on hand to wish the Lastmans well
were Toshiba of Canada’s Jim Harbec, Vice President of
Sales, Digital Products Group, and Sales Rep Graham
Toshiba of Canada’s V.P., Sales, Digital Products Group, Jim Harbec (left) and Sales Rep Graham
Anderson flank Lastman’s Bad Boy President Tony Balasingham. Photo by Wally Hucker
Anderson. Robert Gumiela, Power Audio Video Group’s
Vice President of Marketing, also attended to offer his
congratulations. Lastman’s Bad Boy joined up with Power
Audio Video Group last year.
General Manager of this store is Elmo Albert, and Sales
Manager is Pat Nicastro. They have about 35 staff members there. Including the outlet at the distribution centre,
Lastman’s Bad Boy has 10 locations in southern Ontario.
The company employs about 400 people.
Blayne Lastman estimates that the new Lastman’s Bad
Boy cost “a couple million dollars” to open.“It’s good,” says
Harbec of Toshiba,“to see an established veteran like Lastman’s opening a new store.”
Mel Lastman, Honourary Chairman of the Board, was
conspicuous by his absence at the official opening. He and
his wife Marilyn were in Florida, where the chain’s founder
and former Toronto mayor recently celebrated his 80th
birthday.
After 20 years of making the Bad Boy banner an institution in the Toronto area, Mel Lastman went into politics,
becoming the first and only mayor of the City of North York,
before becoming the mayor of the amalgamated megacity
of Toronto. With his focus on politics, the Lastman family was
sort of shunted aside by business partners, and the banner
languished until son Blayne took the helm in 1991.
He reopened the business in Scarborough, and added a
second location, which served the company well for over
two decades, in Mississauga. From the start, the original
Bad Boy and Lastman’s Bad Boy stores have been known
for loud and tacky commercials that have become legends
in advertising. Father Mel once had a two-for-one sale on
money, selling two dollar bills for a buck. Son Blayne raised
the ire of the White House and sparked an official protest by
using actors resembling President Bill and First Lady Hilary
Clinton to ballyhoo the business. Real-life sports celebs
such as WWF wrestlers and Toronto hockey legends Johnny
Bower and Bobby Baun have all been part of promos.
The company claims to have been one of the first
furniture-appliance-CE retailers to have used coupon
dealer WagJag to promote itself. It offered a $150 coupon
for $49.99.
Elmo Albert (left) will serve as G.M. of the new store, which will
have a total staff count of about 35, including Sales Manager
Pat Nicastro. Photo by Wally Hucker
STEADY EDDIE RETIRES AS FACE OF KAWARTHA TV
Bruce Kipping, Panasonic Canada’s Director of Sales (left)
presents a plaque of appreciation to Ed Laverty, retiring G.M.
of Kawartha TV, Peterborough, ON.
March 28 was the last day of 35 years on the job at
Kawartha TV for Ed Laverty. The General Manager of the
powerhouse independent in Peterborough, ON, earned
the nickname Steady Eddie, Marketnews heard from his
successor Scott Stuart.
Laverty’s calm deportment was a big component of his
attitude, or lack thereof, concurs Bruce Kipping, Director
of Sales for Panasonic Canada. Kipping was one of many
industry representatives who attended that day’s farewell
to Laverty, at the Kawartha TV store.“Ed is one of the nicest
people I have ever known and dealt with,” says Kipping.
“He is also the most sincere, and most honest. He’s never
blown up on anybody, and always listens, and would give
any reasonable suggestion a try.”
Laverty worked for Kawartha TV, an original member
of Power Audio Video Group, for a total of 35 years in two
stints, recalls Stuart. Prior to joining PG, it was one of the
Audiotronic crown jewels of the Dumoulin empire.
Stuart, who started his career at Kawartha TV 27 years
ago, about the same time that Laverty was signing on for
his second hitch, recalls that Laverty had been doing service for Hitachi and Philips prior to working for Kawartha.
“My brother Glenn (founder and owner of Kawartha TV),”
he remembers,“enticed Ed to join the company by offering
him the position of head technician.” Stuart let Marketnews
and its readers in on the private joke.“Glenn only had the
one technician.”
Laverty wasn’t confined to the service department for
very long.“Glenn realized Ed was so good with numbers,”
says Stuart,“that he put him in a management position in
the store.” After eight years with Kawartha TV, Laverty left
to spend five years as a sales rep for Hitachi.
Kipping, and Terry Seredoka, Panasonic Canada’s Senior
Account Manager, Eastern Sales Division, represented the
company at Laverty’s send-off. Other industry reps on
hand to wish him well included: Brett Johnson of Denon/
Sharp; Peter Weldon from Pioneer Electronics of Canada;
Jim Burtch from Samsung Electronics of Canada; Jeff Ginzberg and Mark Williamson of Sony of Canada; Pierre Blais
of Paradigm Electronics; and John Ball and Jeff Ellsworth
from Empire Sales & Marketing, who represented LG,
Yamaha, Gentec, and Alpine.
Laverty was also among the special guests at Panasonic Canada’s annual VIP dinner with its President, held
in conjunction with its Annual New Product Showcase.
This year’s edition, on March 18 at Toronto’s Sheraton
Hotel, introduced the company’s new President Michael
Moskowitz, and said goodbye and thanks to outgoing
president Ian Vatcher. During the course of the evening,
Laverty received a standing ovation from his peers and the
Panasonic management.“We presented him with a small
plaque in recognition of his contribution to our business,
the industry and most importantly,” said Kipping,“for his
friendship.”
Laverty has been a hard man to track down since his
retirement. He has been selling one property, moved
from Peterborough, and is spending more time with his
wife Nancy and their family, which is about to add a third
grandchild. Marketnews hopes to feature Laverty’s look at
his 35 years in the business in an upcoming issue.
While Marketnews wishes Laverty a happy retirement, we
are sad to lose a source for information and opinions who
has been quoted many times by us.
46 MARKETNEWS
MNAPR13.indd 46
4/30/13 2:11 PM
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MNAPR13.indd 47
905.513.7733 U [email protected] U www.gentec-intl.com
4/30/13 2:11 PM
SHOP TALK
A MARATHON OF SHOWS
FOR SONXPLUS
Sonxplus has completed what its Director of Business
Development, Michel Marleau, calls “a marathon of shows.”
Not content with sitting idle in what is acknowledged as
the slow season for CE sales, the cooperative participated
in five major shows in less than two months from January
31 to March 24.
First on the list was the City & Suburb Home Show,
from January 31 to February 3, at the Olympic Stadium in
Montreal.“We were showing lots of home automation at
these shows,” says Marleau.“Our home automation booths
at these shows vary from 800 to 1,200 square feet.”
Valentine’s Day saw Sonxplus at the Big O again for an-
Michel Marleau, Director of Business Development, Sonxplus,
calls it a “marathon” as the company participated in five major shows in less than two months, showcasing what’s new in
home automation.
other four-day stint. This show was the Cottage & Country
Homes Show.
Place Bonaventure was the venue for The National Home
Show.“This was the biggest one in terms of participants
and visitors,” Marleau observes of the show which ran from
March 8 through 17. This was the fifth year for Sonxplus
exhibiting there.“We were not there to sell TVs,” he states,
“but to promote Sonxplus and home automation.”
The next two shows were held at the same time, from
March 21 through 24, in Ottawa and Montreal. The Ottawa Home & Garden Show, at the Ernst & Young Centre,
is usually staffed by the Rockland, ON crew, augmented
by other specialists within the co-op. This time however,
since another show was happening simultaneously at the
Hôtel Hilton Bonaventure in Montreal, Mario Lalonde of
Rockland and his team had to fend for themselves.
The final show in Montreal was the Salon Son & Image.
There Sonxplus’s 800 square-foot home automation booth
was set up within a 10,000 square foot retail store.
“This was the one with the biggest impact in terms of
CE exposure, which is our core business.” Marleau noted
that sales were very brisk, with show attendees having had
their appetites whetted by seeing and hearing higher-end
video and audio. In addition to Sonxplus co-op members
and their staff, reps from many vendors pitched in, and
according to Marleau, were amazed at the volume of sales.
STAPLES CANADA HAVING A LOOK
AT SIZE OF 39 STORES
As posted on Marketnews.ca on April 10 and 11, Staples
Canada reportedly sent out notices to landlords of 39 of
its 330 stores telling them that the chain was reviewing its
space requirements.
“We continually review our real estate portfolio,” begins
a rather low key and generic official statement sent to
Marketnews at the close of business on the 10th,“and we
do this in line with our strategic plan. Distributing a list of
stores that are up for lease renewals to our landlords and
brokers is normal practice for our company, and for retail
real estate.
“Reviewing a lease that is up for renewal,” continues the
statement,“does not mean that we will downsize, close or
expand a particular store. Staples Canada reviews all stores
before leases are renewed and business decisions are
based on a full financial, performance and market analysis.
“As a company,” the statement concludes,“Staples is
strategically focused on addressing the changing needs of
our customers by building our omni-channel capabilities
and expanding our product assortment.”
Marketnews had tried all day on April 10 to talk to
Staples executives, and one of two of its landlords, to get
more information on figures cited in a Globe & Mail story
by Marina Strauss, which was published that morning.
Strauss extensively quoted Edward Sonshine, CEO of RioCan Real Estate Investment Trust, one of Staples Canada’s
landlords, on potential downsizing of 12 per cent of the
company’s stores. The result was the non-committal
statement above.
Nevertheless, it confirms the first part of a statement
by Strauss that “Staples has circulated a list to landlords
and real estate brokers of 39 stores that the chain plans
to downsize...” while vacillating on the second part of it.
Strauss further states that Sonshine’s company has been
informed that Staples Canada wants to downsize six of its
stores located on RioCan properties.
“All these big boxes, these category-killer-type of
tenancies,” she quotes Sonshine directly,“were based on
having the best prices and the largest selection. But once
the Internet got more mature, you can’t have the largest
selection any more and it’s tough to have the best prices ...
Eventually, there will be a lot of downsizing.”
After the Globe’s story was published, Sonshine wasn’t so
talkative, or available. Marketnews spoke with his assistant,
who said he was the only one at RioCan who should speak
to the story,“but he has back-to-back meetings,” and was
then on his way out of town. Another landlord did not
return calls as of five days later.
Initial contacts by Marketnews with Staples head office
personnel elicited the response that the company only
wished to speak about its new “innovation lab” store in
Guelph, ON. The company is using the location as a pilot to
test new services aimed at small businesses. These include
renting office and meeting rooms, training in business practices and technology, and a BannerXpress self-serve printer.
As with new Target stores, there is also a Starbucks on site.
Staples Canada’s Director of Marketing & Innovation,
Brian Coupland, was indirectly quoted by the Globe & Mail
as denying that the new innovation lab store is related to
any downsizing plans.
When no replies were forthcoming further down the
chain of command, Marketnews left messages for Coupland, and later for Steve Matyas, company President.
Neither returned calls as of this posting.
It has been no secret that the U.S. parent company,
Staples Inc., wants to reduce its retail footprint. Last fall, it
announced plans to reduce it by 15 per cent by the end of
its 2015 fiscal year. Store closing and downsizing affected
its stock last Q4. Combined with sluggish sales, profit was
down over 70 per cent for the period.
The Globe article claims that of the 39 Staples Canada
stores being considered for downsizing, a third has leases
that will expire in approximately a year, which would allow
the company to close them without penalty. A pair of
them is company-owned, and therefore only subject to
the firm’s needs and wants.
In her article, Strauss states that Staples Canada’s stores
average 20,000 square feet, with some as large as 25,000.
These could be cut to 15,000 square feet. Sonshine of
RioCan is indirectly quoted as saying that Staples Canada
pays $12 to $13 per square foot. While this is low, anchor
tenants are often offered inducements such as low rent to
locate in a commercial property. Commercial landlords like
RioCan could perhaps double their income from space not
needed by Staples Canada renting to other tenants.
The NASDAQ stock market in the U.S. didn’t take that
much notice of this northern kafuffle. Staples Inc. stock
closed at US$13.83 on the NASDAQ on the 10th, after a
mid-day high of US$13.99. It opened at US13.53, and hit a
low of $13.46.
In other news from Staples Canada, and in a case of life
imitating art, or at least a TV sitcom, the retailer is now
offering Dunder Mifflin copy paper. That’s right, the bogus
brand from the TV show The Office is now on sale at Staples, thanks to a licensing agreement with NBCUniversal
Television Consumer Products. Consumers participating in
this product placement can be the proud owners of reams
of paper embossed with the blunders made semi-famous
in the show. These include “Our motto is Quabity First,” and
“Limitless paper in a paperless world.”
NEWS BRIEFS
Richard Schulze, co-founder of what became Best Buy
and the world’s largest CE retailer, is back in the company
as Chairman Emeritus. Although the title may be honourary, the stipend is not, with up to US$2.125 million in compensation for the next year. Thereafter, a mere US$150,000
will be his annual honorarium. Returning to the board with
Schulze is former chairman Brad Anderson, and former
president & COO Al Lenzmeier. These two were reckoned
to be allies in a buy-back bid which Schulze was given
time to hustle up at the end of February. It didn’t materialize, but the trio (and their shares including Schulze’s 20 per
cent) was welcomed with ostensibly open arms by current
CEO Hubert Joly. While Best Buy shares shot up since midDecember partly in anticipation of a bid by Schulze and
cohorts, the market also liked what Joly has been doing,
emphasizing Web sales and considering cutting back on
foreign operations.
Musical instrument retailer Guitar Center, Inc. has appointed Mike Pratt, former Best Buy Canada president, as
CEO of the company, and given him a spot on its Board
of Directors, effective April 1. Pratt replaces Marty Hanaka,
who has been serving as Guitar Center’s interim CEO.
Hanaka will remain on the Board in order to assist in the
transition. On February 19, it was announced that Pratt
would be relinquishing his title of COO and president of
Best Buy Canada, roles he had held since 2008. Pratt originally joined Future Shop in 1990, and when Best Buy Co.
purchased the retailer in 2001, he became its vice president and senior vice president of operations.
LG will be beefing up its branded retail presence in emerging markets, including India, the Middle East, and Africa,
focusing predominantly on increasing its market share in
the highly-competitive smartphone business. The manufacturer reportedly has plans to up its store count by as
much as 20%, adding to the already 3,000 store locations.
The stores will display and sell smartphones, as well as
televisions and home appliances.
Samsung is adding to its direct retail presence with a
series of mini stores that will appear in Best Buy locations across the U.S. There will reportedly be 1,400 stores
included in the program by the summer, highlighting
everything Samsung in a dedicated section of each store,
including the popular Galaxy-branded smartphones and
tablets, laptops, digital cameras, televisions, and accessories. Each area will also be tended to by a dedicated
employee, though it hasn’t been specified whether this
person will work for Samsung, or be a Samsung specialist from the Best Buy team. Samsung opened its first and
only standalone store in Canada last July in the Metropolis at Metrotown shopping mall in Burnaby, BC. There’s no
word on a similar move being made with Samsung and
Best Buy stores in Canada. Samsung Canada confirms
that Samsung mini is only available in the U.S. at this
time. Immediately following the announcement that
Samsung would be teaming up with Best Buy in the U.S.
for these mini stores, the retailer’s shares jumped 16%.
Staples Canada has been honoured with an Innovation
in Sustainability Award by The Professional Retail Store
Maintenance Association, (PRSM), an authority on retail
and multi-site facilities management. The award is for the
Waste Management Recycling and Reuse category, for the
retailer’s sustainability programs. The retailer has expanded
it sustainability goals for 2013, following an upsurge in
recycling by the company and customers last year. In 2012,
Staples Canada diverted almost 50,000 kilos of batteries, both alkaline and rechargeable, from landfill. This was
double the weight collected the year before.
According to McAfee, the retail industry is facing growing risks with regards to both legacy and new point of
sale systems that must be addressed. According to the
report, POS systems are updated too infrequently, creating
vast windows of opportunities for criminals to find and
exploit vulnerabilities. Once a new vulnerability is located,
businesses using the same types of systems can be easily
identified and targeted for attack. The report calls attention to the need for retailers to implement higher levels
of security to defend against advanced security threats
such as application whitelisting; POS integrity control; and
hardware-enhanced security. The report also recommends
retailers use orchestrated security management solutions for POS systems to reduce the burden of distributed
system security monitoring and policy management; and
have system integrators certified by the PCI Council.
48 MARKETNEWS
MNAPR13.indd 48
5/2/13 2:20 PM
AVAILABLE EXCLUSIVELY
IN CANADA AT
B&B ELECTRONICS
www.BBElectronics.ca s [email protected] s1800 279 0636
MNAPR13.indd 49
4/30/13 2:11 PM
SHOP TALK
MARSHALLS EXPANDS OUTSIDE
ONTARIO, ANOTHER NIBBLE AT CE PIE
Tamara Robbins Griffith, Public Relations Manager for
Marshalls Canada, says carrying a small collection of tech
gadgets in stores just help “add to customer demand.”
Another U.S.-based retailer has opened a slew of stores in
Canada, and is intent on opening another 80 or 90. And
while most people think of Marshalls as a clothing store
attracting women aged 25 to 55, and now a home décor
merchant, the stores also carry a lot of small consumer
electronics products.
“They just add to customer demand,” notes Tamara Robbins Griffith, Public Relations Manager for Marshalls Canada.
Car chargers, iPod docks, cases, and headphones, plus personal grooming electronics like curling irons and hair dryers
are available at Marshalls. While the latter can be found in
the women’s department, as well as the beauty department,
“a lot of tech gadgets appeal to men,” she says,“so we have a
lot of them in the men’s department.
“We also have a lot of checkout items, and have specific
buyers for the checkout.” She emphasizes that Marshalls
is not a discount store, but rather an off-price retailer, a
concept that may as yet be somewhat new to Canadians
who do not cross-border shop.
“Our business model,” she states,“whether it is for iPod
docks or other merchandise, is that our buyers buy so we can
sell cheaper than department stores or specialty retailers.”
Marshalls has opened seven new department stores, including one each in Vancouver, Edmonton, and Winnipeg,
to initiate its operation to have up to 100 stores countrywide in the next eight years. Three other new stores,
averaging 30,000 square feet, opened in Ontario, where
the banner was launched in Canada in 2011.
All but three of Marshalls stores, a banner of TJX Companies Inc., which also operates HomeSense and Winners,
are in Ontario. Another BC store will open next month, in
Abbotsford, south of Vancouver.
A 55,000 square-foot flagship store in the centre of
downtown Toronto, at 382 Yonge St., also opened the
same day. According to Robbins Griffith, the big downtown Toronto store is the first with a home décor department, selling furniture, area rugs, kitchenware, and other
home furnishings.“We will roll this out in our other stores
this summer,” she adds. All current stores will be retrofitted
with the décor department.
She notes that customers of Marshalls want to shop
in one store to satisfy a variety of wants. Stores like the
Toronto flagship have a large kids department, including toys and books. While the chain offers a selection of
electronic educational toys, it does not, at least yet, stock
dedicated gaming platforms.
As to what brands are stocked, they are not listed on the
Website, and Robbins Griffith won’t comment.“This is part
of an agreement with our vendors,” she says. According
to Robbins Griffith, the chain agrees not to promote or
divulge the brands, in return for deals on merchandise it
retails at up to 60 per cent off.
To mark the grand opening of its new stores, each Marshalls’ location outside of Toronto donated $5,000 to Kids
Help Phone. In Toronto, Marshalls stores are sponsoring The
Walk So Kids Can Talk, also in support of Kids Help Phone.
There will be another wave of Marshalls stores openings
this summer, with an additional five added to the roster.
TJX has over 2,800 stores worldwide. Its reported revenue
in 2010 was over $22 billion.
TJX’s Canadian same store sales fell five per cent in
March, according to TJX. Unseasonably cool weather affected its sales, as it did for many soft goods retailers.
MINI RETAIL Q&A
Name: Ian Dobson
Company: Brock Built-in Specialists
Years in The Industry: 38
Hobbies: Golf, Gardening
How did you get into this industry?
I worked in Toronto in the summers when I was in university doing central vacuum systems, then moved north and
started our company in 1975.
If you were not in this industry, what would you
be doing?
Some type of sales position.
Tell us about an interesting encounter you have had in
your retail business career.
At one time in the 1980s, two of our installers’ actual
names were Bruce Lee and James Bond.
Do you find trade shows worthwhile? Why or why not?
Yes, mostly to talk with old customers, and for some exposure to new customers.
What would you deem the most influential product
introduction of your time?
High-speed Internet.
Which was the best year of your life in the industry
and why?
That would have been the mid to late ‘80s when we
opened our showrooms, in a good economy.
Where do you see the industry going?
I see more wireless integration now and on the horizon,
through local area networks and a more user friendly
interface.
TALES FROM THE FLOOR
This month’s thrilling tale is from Daryl Wall, a high-end custom veteran who recently
joined the Insight Home Solutions group. It has five Canadian and two U.S. locations,
including Smart Home Systems in Calgary, offering design and completion of home integration and automation.“I feel like I’ve grabbed the brass ring,” says Wall.
And well he should, since his disclaimer about the humour element of this story is obviously understated, and every day should be looked on as a gift.“I’m not sure,” he says by
way of preamble,“if this falls under the category of ‘amusing anecdote,’ but, in hindsight,
it’s actually kind of funny.” That, dear readers, you can decide for yourself.
“Years ago,” he recalls,“in the mid ‘90s, I was working for a big box chain here in Calgary. It was a Friday afternoon, my last day of work before I was to leave on a two-week
vacation.
“One of the last tasks I had before I left was to drop by one of the chain’s stores, to pick up
a wedding present for one of my customers who was getting hitched that weekend. I was
going to get him a cordless phone, which was a very cool and cutting edge gift at the time.
“I knew the particular model I wanted,” Wall remembers, and according to the company’s computer, of the four or five stores in town, there was only one store which had one
new in a box. I called up that store’s manager, and had him put it aside for me.
“I drove over to the store, which was in a strip mall. As soon as I walked in, I saw the
phone that I had asked for sitting right by the till at the front door, but,” he reflects,“it was
also apparent that something was amiss.
“Usually,” he explains,“there were three of four salesmen standing around the counter
at the front of the store, shooting the breeze. This time, though, the place looked deserted:
for about five seconds.
“It was at that point,” he vividly remembers,“that a masked gunman stepped out from
around the corner, stuck a gun about three inches from my nose and said, ‘Do you want
to die?’
“Well, any-red blooded male, who has never actually been in that situation, fantasizes
that they would knock the gun away with one hand while simultaneously punting the
guy right in his man parts. In actuality, what happens is that you look down the seemingly
endless barrel of the seemingly massive gun, and reply to his question with a meek,‘Not
today, sir.’ That is the route I chose.
“The gunman then proceeded to shove me into one of the sound rooms where there
were a dozen other employees already trussed up with tie wraps and lying face down on
the not very clean carpet.
“The smell of pepper hung in the air because the biggest guy in the group, one of the
warehouse guys, had been pepper sprayed. He was coughing and hacking and rubbing
his face on the carpet trying to get the junk out of his eyes.
“After what seemed like hours, but as we figured out later, was only a few minutes,
the four thieves got us all up, and herded us into the very small bathrooms. They told us
to wait 10 minutes before we dared to come out, or they would shoot the first person
through the door. At least they had the courtesy to put the women in the Ladies Room
and the eight guys in the Men’s Room. Of course, one of those guys was the 6’4”, 250 lb.
muscle-bound warehouse guy who was still coughing and hacking.
“Since the thieves had relieved us all of our watches, wallets, and at the time very expensive cell phones (I had a Motorola flip phone!), we had no idea how long 10 minutes was.
As it turned out it didn’t really matter.
“After a couple of minutes in claustrophobic isolation, the adrenaline began to abate,
and fear began to get the best of us, and one of my fellow captives could not help but
release his bowels.
“Trust me,” Wall emphasizes,“you do not want to be in a 6’ x 6’ room with seven other
guys when one of them literally has the crap scared out of him. Waiting gunman or not,
we burst out the room en masse.
“Of course, the bad guys had long gone. And what had they taken besides our personal
stuff and the cash out of the till? The cordless phone.
“As it turned out, the whole thing was an inside job set up by one of the central warehouse guys. They were actually waiting for the truck with the weekly stock transfer and,
when it arrived, they took off in it. Of course it was emblazoned with the company logo
on the side in big red letters. I heard that they made it about five miles before they were
busted by the police.
“In the interest of adding insult to injury,” he adds,“when I got back from vacation two
weeks later, there was an envelope waiting for me from head office. In it was a cheque for
$25 and a form letter from the president of the company (at least it was signed by him)
thanking me for my bravery and loyalty to the company.
“My customer,” Wall concludes,“never did get a wedding gift from me.”
50 MARKETNEWS
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SHOP TALK
QUESTION OF THE MONTH
Does showrooming affect your business and how? What do you think of the Australian health food retailer who is
charging a $2 “browsing fee,” which she refunds if a purchase is made?
Ian Dobson, Brock Built-in, Oshawa, ON:
“It is mostly custom builders we work for, and custom builders
want to mark up our work. What really happens is that builders
want a markup and a cookie cutter approach so they can make
20 per cent on it. They give a price, and then the customer goes
online and finds a lower price than we can sell to the builder. I
don’t believe in a race to the bottom, so we’ve stuck to our guns
on pricing. Every time you cut the price 10 per cent, you have to
sell 25 per cent more to make the same money. Anybody with a
business card can set up as a distributor, so we stick with distributors who don’t sell product that is available at Costco. You can’t make a living on five per cent. Our flat rate is $80
an hour. When we sell TVs for installation in a house, we check 2001 Audio Video, Costco,
Best Buy. We will match or charge a small markup for the convenience factor. You have to
buy right or the consumer will dictate the price. We charge a fair price to stay in business.
In our two retail stores, they always pick our brains, and say “We can buy at Costco or Tiger
Direct for less, and for TVs 50 inches or less, we cannot buy as cheap as retail, so we focus
on high-end. A lot of people come to our stores because of our Website, but we don’t
give prices on the Web. We don’t want to tie up a $30 an hour employee to talk about a
22-inch versus a 24-inch LCD TV. Although we’re doing more product sales, and building a
3D theatre, our custom integration showroom has no retail presence. We want to be a resource. The customer has to be made to realize that when they get a job done, the custom
integrator must make a living to be able to afford to come service their system. There are
a lot of high-end customers who are not going to big boxes. I’d rather do 10 jobs a year
for $100,000, than 1,000 for $1,000. The rich travel in groups. That Australian $2 fee? It’s
not really viable, but we’re big in central vacuum repair, and often when an $89 vacuum
needed repair, it would be abandoned at our shop. So now we charge a nominal estimate
fee, which is refunded towards a purchase or repair.
Bentley Barchard, Audio Crew - Auto Sound & Performance,
Moncton, NB:
“We get both kinds of showrooming, where people just walk
around the store looking, and where they talk to the staff. For
a quote, a staff person might spend a half hour finding out the
shopper’s needs, explaining things, and picking out the products
needed, getting a price and making a quote for an installation.
Then the shopper will say,‘I’ll think about it,’ or ‘I’ll call you next
week.’ Two weeks later, they show up with a whole system,
which they have bought on eBay, or Sonic Electronics, which is a big U.S. 12 volt dealer
that ships to Canada, and want the whole system installed. Then they wonder why we
can’t give them a discount on the installation, or why we won’t service equipment from
Sonic, which requires service in the U.S. Sometimes people voice regrets after buying online when they have to pay not only for the install, but for removal and reinstallation and
shipping for service if anything goes wrong. They didn’t buy locally, and save $50 on the
purchase, but it has cost them a lot more. As for charging for people to come in the store,
that would turn more people away. If you can get them to come in, you can get to explain
to them about your shop and warranties.”
Jeremy Nowe, Multi Media Man, Dartmouth, NS:
If you have a policy in place, showrooming can be very good.
We’re up-front with clients if we can’t price match. A lot of clients
don’t know what they want, so we can often match them up
with something. It depends on the product. To our customers,
delivery and installation is important, especially for their Internet
connections. We charge $100 to come out, and $100 for cables
and hooking them up. That $2 admission? I don’t think it would
work in my market. We sell security products which we don’t
install. I told the installer to charge $100 for a quote, and he does, and people pay it.”
Daryl Wall, Insight Home Solutions, Calgary, AB:
“Showrooming doesn’t really affect me ...we can’t remember the
last time it happened here. But at the former store, Sound of Music, yes, it did. Sound of Music has invested a great deal of money
in an upscale showroom and the monthly expense of a highend retail space. Some shoppers use it like an art gallery. They
stroll around for their pleasure, and then go get a cheap print, so
to speak, elsewhere. There are good vendors to deal with. A lot of
vendors, like McIntosh, B&W, and Rotel, don’t sell retail themselves, and you can’t buy them online. That $2 fee is a good idea.
It’s bold. It’s brilliant. Good on you. With $400,000 or $500,000 of high-end gear on display,
you just can’t let people wander around. You wouldn’t believe the damage that’s done.”
Keith Grafhan, Keith’s Audio Video Unlimited, Burlington, ON:
“Showrooming does not affect us as much as box stores with
a lot of product on display. I think Internet sales alone have
a bigger affect, than whether the shopper is in your store or
not. There’s got to be something else out there affecting us.
Our Website is with AVU, and it continuously changes prices.
Everyone matches prices these days. When retail customers
come in, they’ve got to have prices. The days of loyal customers
are gone. We can’t do that (charge customers to come into the
store.) That was done out of frustration. We collect up front for repairs, from $30 to $50. If
they go ahead with the repair, it’s credited. If they buy something instead, we decide on
the individual case whether or not to credit it. That’s not as big an issue as you might think.
Very seldom do those people buy a replacement.”
Jason Johnson, Sounds Fantastic, Bonnacord, NB:
“Certainly we are affected by showrooming. The shoppers do the
talking, and we have to take time to serve them, with staff whose
training we’ve had to pay for. The shoppers do more showrooming by talking with our staff than just looking around. It’s critical
to sell our service, and part of our service is knowledge. Shoppers
try to get more info, and then perhaps shop around. That’s always
going to happen, so we have to wow the shopper, and wow them
to become customers. As for a $2 service charge? Not really, unless we were giving a seminar.
But otherwise, I don’t see it in Canada, at least not in New Brunswick.”
See a video of the Marketnews editorial team discussing this very question at www.marketnews.ca/content/index/page?pid=13554
Looking for staff? Post your classified with
marketnews and reach qualified, targeted
individuals who know the CE industry. Not
only will your ad appear on our Website, it will
also be included in four weekly newsletters
right to the inboxes of those you want to reach
the most.
All you need to do is send us an e-mail with your
wording (we will even tidy it up for you if needed!)
with your company logo attached and we will
take care of everything.
For more information, please contact
John Thomson at [email protected]
MNAPR13.indd 52
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SHOP TALK
MASTERPASS OPEN DIGITAL WALLET ARRIVES IN CANADA FIRST
Jason Davies, Vice President, Ecommerce, MasterCard Canada.
Using the MasterPass service, which is available here in
Canada first, shoppers can store payment information
digitally, then make online purchases more quickly and
conveniently through partner sites. What sets it apart from
others, however, is that customers can store details of all
kinds of payment cards through the service; not just MasterCard. On April 10, Marketnews got a preview of MasterPass at a technical briefing prior to the official launch.
Initially announced at Mobile World Congress in late
February, MasterPass is now officially available in Canada
through four e-tail partners: Porter Airlines, GroceryGateway.com, Jaunt.ca, and WagJag.com. But MasterCard plans
to have 800 retail partners by the end of this year, with
2,800 by the end of 2014.
MasterPass’ key competitive differentiator is that it’s
an open service: once customers sign up, they can input
details for up to 25 payment cards, regardless of the issuing bank, or even type of card. This means the MasterPass
digital wallet can hold details for a MasterCard, but also
debit cards, Visa, Amex, merchant private label cards, and,
by year’s end, even some loyalty cards. It can even be used
to store digital wallets from other third-party providers. An
interesting analogy might be Google and its Android platform, which was developed with a similar goal of unifying
the smartphone industry, offering it up an open source
that any manufacturer can build upon.
How does it work? When the customer sees the MasterPass button on an e-tailer’s checkout page, much like
one would see the PayPal icon, he clicks it, logs in to his
MasterPass account, selects the card with which he wishes
to pay, and all of the information is automatically populated. He can also store up to 25 different billing addresses,
easily shipping to mom and dad’s, to the office or home, or
the child away at college.
The service is meant to help reduce the time it takes to
complete a purchase online, from an average of eight clicks
to just four. MasterCard cites a study that indicates 23% of
shoppers abandon their online shopping carts, and the top
reasons cited include lack of security, filling out the forms
takes too long, and they’re forced to create an account.
It also aims to increase the ease at which online purchases
can be made on a mobile device. Naturally, filling out a form
with name, address, credit card details, etc., is cumbersome
enough on a computer, much less on a tiny touch-screen
device. Since the card information need only be entered
once in MasterPass and stored, users can simply select the
appropriate card from a drop down menu that’s optimized
for a tablet or smartphone, and pay instantly. The process
is also made to be secure, with multiple layers of security,
along with the ability for the user to add a dynamic fourdigit code, sent via SMS, to confirm each transaction.
It’s important to note that MasterPass does not act as
the payment processor; rather it simply sends the required
information to the Website’s payment processor, eliminating the need for the customer to input it himself, or
supply the information directly to the site. It’s essentially a
“pass-through” wallet. Moneris, for example, is one of the
first Canadian acquirers to enable MasterPass through its
eCommerce gateway.
From a merchant standpoint, MasterCard’s Vice President of E-Commerce Jason Davies tells Marketnews that it’s
relatively simple to add the MasterPass button to a site: it
can be done within a matter of days, in many cases.
There is no fee required of the merchant nor consumer
to use MasterPass; the only fees charged are for third-party
digital wallets, which MasterCard will add to the MasterPass
service with a hosting fee similar to licensing. For example,
if a financial institution has its own digital wallet service, this
can be integrated with MasterPass. The Bank of Montreal
has already signed on with its own branded wallet.
The key target clients for MasterPass are those in travel,
couponing, ebooks, and gaming (microtransactions),
though the company is, of course, open to signing on
retailers of all kinds. It will centre its launches around key
buying periods, including Back-to-School, Black Friday/
Cyber Monday, and the Holiday season. That said, we can
probably expect to see the first wave of new partners introduced leading up to B2S through this summer and into
early September. MasterCard hasn’t released any information on who these new partners will be.
Once MasterPass launches in other countries (four markets have been confirmed; Australia will launch along with
Canada, followed by the U.S. and then the U.K.,) customers
can transact on other country Websites using his digital
wallet, as long as that company ships to Canada.
The decision to launch initially in Canada was made
because, as Davies notes,“Canadians are receptive to new
technologies.”
There’s another component with MasterPass: NFC. In
stores, MasterCard is looking to allow things like QR Code
generation for storing the items a customer wants to buy.
When he gets to the checkout, he simply has the one QR
code scanned, and pays immediately through the wallet.
In Canada, MasterCard reports that there is $600 million
dollars transacting today, and half of in-store spends are
influenced in some way by the digital and mobile channels. What’s more, the number of e-tailers recognizing the
increasing role of mobile in the equation, and looking at
new ways to enhance the mobile experience, is on the rise:
the number of retail sites optimized for mobile was just
37% in 2011, but jumped to a whopping 95% in 2012.
eCommerce is growing at a much faster rate in Canada
than traditional retail sales, says the firm. According to the
company’s SpendingPulse data, total Canadian eCommerce sales grew 27% over the past three months ending
in February 2013, compared to just 3% growth in Canadian
retail sales over the same time period.
There, of course, may be some initial concerns about
MasterPass. For one, despite how tight security is, if someone were able to hack into your MasterPass account, he
would now have access to up to 25 of your payment cards,
not just one. What’s more, the four-digit SMS code is a
good idea, but should be made mandatory rather than optional for the consumer. It’s also worth noting that making
the online shopping experience easier may further detract
from the bricks and mortar experience, though some
would argue that this is an inevitability that traditional
retailers need to embrace rather than fight.
But the service is a positive step toward unifying the
mobile payments space, which is growing at a rapid pace.
Not only is the ability for the consumer to add all of his
payment cards to the site convenient, but the coming
ability to also incorporate loyalty cards means that online
transactions can now include all of this information in one
click, without the customer having to enter his credit card
information, as well as billing, and loyalty card numbers.
And who knows: the ease at which shoppers can make
online payments through the service may be just another
factor to entice traditional bricks and mortar retailers that
haven’t yet opted for an e-tailing presence to decide that
it’s time to bite the bullet and join the World Wide Web.
– Christine Persaud
www.marketnews.ca, Search News: masterpass
Consumers can now complete purchases through couponing
Website WagJag using MasterPass accounts.
Staub Electronics Ltd. Seeks
Bilingual CI Technical Support Specialist
Staub Electronics Ltd., one of Canada’s premiere distributors of consumer electronics that caters to the residential and commercial AV and mobile electronics
markets, is seeking an experienced, energetic, technically minded and passionate individual to join our Custom Installation Division.
The successful candidate will be responsible for all aspects of Technical Support to our CI dealers, and report to our Service & Support Manager.
Key responsibilities include telephone support for installation and troubleshooting of our entire CI product portfolio, assisting with case IDs, logging contact
with dealers in our CRM system, issuing RMAs, providing support for advanced warranty and conducting field training sessions.
The successful candidate will be bilingual (English/French) and have a minimum 3-years of Residential and/or Commercial Custom Installation experience.
Experience should include exposure to: AV Distribution; Multi-Room Audio; Control System Programming; Projector/Film Screen Installation and Setup;
Surveillance System Camera Installation and DVR Configuration; and IT/Network Setup and Configuration.
Skills & Abilities Required:
• Team player attitude with cooperative approach to dealing with fellow employees
• ”Can do” work style with the ability to adapt to rapid changes and be well organized
• You lead by example and can identify problems
• Advanced MS Office skills
• Strong written and spoken communication skills in both French and English
• Strong presentation skills
• Ability to communicate vision through written word
• Ability to multi-task and prioritize
• Detail oriented and highly organized
• Work well under pressure and capable of meeting tight timelines
• Ability to travel throughout Canada and the U.S.
Staub Electronics is an equal opportunity employer
and we welcome applications from all interested
parties. We thank you for your interest, however,
only those candidates selected for an interview
will be contacted. No agencies please.
Preference will be given to candidates able to
work from Staub’s Head Office in Richmond, BC.
Consideration will also be given to candidates
wishing to work remotely from a home office.
If interested, please send your resume to
[email protected]
MARKETNEWS 53
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SHOP TALK
BRUCE SCHEPERS & PIONEER CANADA PART WAYS
Bruce Schepers, who has served as the executive vice
president of sales & marketing for Pioneer Canada for the
last 19 years, has parted ways with the company. His last
day will be this Wednesday, May 1, 2013. The move has
come as part of Pioneer Corporation’s worldwide restructuring initiatives.
“The Executive team at Pioneer Canada would like to
join executives at Pioneer U.S.A. and Pioneer Tokyo in
thanking Bruce for his significant contributions during his
19-year career with Pioneer Canada,” states the company
in a prepared announcement.“We wish him all the best in
his future endeavours.”
Schepers is proud of Pioneer Canada’s achievements
over the years, being first to market with a number of
technologies, including in-dash navigation and DVD
players; and holding the number-one position in home
theatre receivers for the past three years running. “We
are the only Pioneer subsidiary in the world to make that
achievement,” he tells Marketnews in an exclusive sit-down
interview at his favourite Italian restaurant, La Cascina
Ristorante.
He’s particularly proud of the fact that Pioneer held
its ground with lines like Elite, which has remained an
independents-only brand since its inception 25 years ago,
despite the tough economic climate of the past five years.
“We’re proud to have nourished that slowly, and being
one of the only manufacturers to not sell out to a broader
distribution to encompass regional chains or national accounts. It will be nice to be remembered as someone who
maintained the operational ethics, if you will, of a special
brand that was delivering the dealer’s profit to survive. It’s
great that that’s a part of Pioneer’s legacy and will continue to be as they develop great new products under that
brand.”
Schepers has spent the past 40 years in the consumer
electronics industry: 20 on the retail side, and the last two
decades on the manufacturing end.
He started his career in 1980 as a vice president of merchandising and advertising for the Majestic Sound Warehouse chain. He followed that acting as a consultant for a
year, aiding Club Biz in adding consumer electronics to its
mass channel warehouse assortment. The next decade
was spent as a vice president and partner with Stereo Den.
From there, Schepers began his long tenure with Pioneer
Canada, first as marketing manager, and quickly moving
up the ranks to vice president of marketing, senior vice
president of sales and marketing, and finally taking on the
executive role.
“Seeing people hang around and gel as a cohesive team
because they enjoy the challenges, enjoy the camaraderie
as a team environment, has been great,” he says.“Those
friendships that have been built out of what started as
business relationships is always something to treasure
when you’ve been with a company for a long time. They
remain a strong, cohesive team. I have every confidence
they’ll do fine, even though my executive vice president
position on the org chart is not being replaced.”
For the time being, Schepers will take some time to “relax
a little, while considering future opportunities.” Those
future opportunities, Schepers tells Marketnews, may
continue to involve the consumer electronics industry, for
which he still feels passionately.
“I’m at my best,” he states,“when I’m driven with a high
work load. The more diversity, the better. I’m not given to
sitting around a Zen-like environment contemplating the
meaning of a transistor. I want to figure out how we are
going to market it and get it out there.
“I love this industry,” he continues.“”I have had many
multi-decade relationships with decision-makers across
all channels of distribution. I share deep friendships with
them as well as working relationships.”
Indeed, over the past four decades, Schepers has had
many stand-out moments with industry members whom
he also calls friends. Many of those occurred during dealer
trips; from Japan, to Napa, and Mexico.
He recalls one from back in the good ol’ pre market crash
days of 2007 when he and his sales director were with four
dealers in a 12-seater limo, heading back to San Francisco
for the 4.5-hour trip from his favourite wine store in Napa.
He had purchased a case of wine to take home with him,
along with four or five bottles for the group to enjoy for
the ride. Those bottles were quickly depleted when one of
the dealers pointed out Bruce’s personal stash in the back.
“Six of us,” Schepers laughs,“ended up finishing 17 bottles
of wine in the limo on the way back.”
That same trip also included a memorable lunch at a restaurant that had a 12-course tasting menu, with a server
for every person at the table, which Schepers describes
as “silent, invisible ninjas, appearing and disappearing,
whisking plates away.” He later discovered that the staff
is taken down to San Francisco twice a year to be trained
by the choreographer of the San Francisco ballet.“It was a
fabulous lunch and a fun moment,” he reminisces.
It wasn’t difficult to find industry members with great
things to say about Schepers, on both a business and
personal level.
“Over the 15 years I have known Bruce, I have come
to admire how deeply he understands the Canadian
CE business,” comments Tony Sandhu, Vice President of
Merchandising at Future Shop.“His opinion is valued and
trusted. When I think of Pioneer Canada, I think of Bruce
Schepers. It was a pleasure doing business with Bruce, and
I am certain our paths will cross again.”
“Bruce is a legend in this industry,” adds Stephen DeWeerd, Director/General Manager at Brentview Electronics.
“Pioneer won’t be the same without him. He’d be an asset
for any company.”
What’s Schepers’ advice for the industry, particularly
retailers, going forward?
Don’t wait for that next best thing; find out what you
can do in the mean time to improve. He suggests that
independents look toward some of the design elements
and stimulus factors of merchandising their stores to help
bring customers in and keep them there.“Bigger retailers
have entire industries built around understanding what
colour scheme on the wall motivates customers, what type
of music, where should one position the sales counter
and key displays. How are the aisles designed to maximize
space? Even what scent is piped into the stores. It’s welldocumented that all of these things have a clear impact
on the consumer in the store.
“You’ve had a TV wall on the north side of the store
forever,” he provides as an example.“Did you ever ask
yourself in 10 years why, and should it be somewhere else?
How many should there be? Should it be a half-wall? What
stations should be on? What about the paint behind them.
When you paint the bridge and get to the end,” he analogizes,“you have to go back and start painting again at the
beginning. You can’t get complacent.”
After May 1, 2013, Schepers can be reached by phone at
(416) 407-2753; or via e-mail at [email protected].
(l-r) Bruce Schepers (centre) is joined by members of the Sales & Marketing team at Pioneer Canada: (l-r) Andrew Murphy,
Director of Marketing, Vijay Kooldip, Product Specialist, Gord Brown, National Accounts Manager, Amy Koenig, Process Manager,
Administration, Frank D’Angelo, Marketing Manager, Tony Verni, Director of Sales, Marta Munro, Sales & Marketing
Administrator, and Robert Galea, Manager of Internal Sales & Distribution.
54 MARKETNEWS
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MARKETNEWS
The Mobile Phone: A Retrospective
Dr. Martin Cooper, now 84, poses with the Motorola DynaTAC
“brick” phone.
By Christine Persaud
It’s hard to believe that it’s been 40 years since the first mobile phone was introduced by Motorola’s John F. Mitchell
and Dr. Martin Cooper in 1973. Little did the pair know just
what kind of impact the device would come to have on society; arguably morphing into one of the most influential
products of the century.
The DynaTAC phone, which stands for DYNamic Adap-
tive Total Area Coverage, weighed 2.5 lbs.; about the
equivalent of a case of devices today. While it was still considered to be small back in those days, the phone eventually came to carry the nickname “the brick.” Nevertheless, it
was a massive step forward in innovation.
On April 3, 1973, Dr. Cooper made the very first call from
a mobile phone, humorously to his rival from Bell Labs,
whilst he was crossing the street on 5th Avenue in New
York City. In a quote, he describes this act to be “one of the
most dangerous things I have ever done in my life.” (Today
at the ripe age of 84, Dr. Cooper must be downright flabbergasted at the behaviours people engage in with their
mobile phones.) The first reporter to try out the device
called her mother in Australia, Dr. Cooper recalls, and was
shocked when she heard her answer.
The 10-inch long phone offered 30 minutes of talk time;
just as well as one probably wouldn’t have been able to
hold the monstrosity up to his ear for much longer than
that anyway. And it sold for almost $4,000. The specs were
laughable by today’s standards. But back then, the concept
of talking to someone through an un-wired device inside
the home, much less outside, was mind-blowing.
It wasn’t until a decade later, however, that the first commercially available mobile phone would make its way into
society.
If you’re over the age of 40 (or even in your late 30s),
chances are you remember the day that phone hit the
market. Heck, you may very well have even owned one
at some point. But even those of a younger generation
will be familiar with the iconic device through its many
pop culture appearances. It was the phone of choice by
Gordon Gekko (played by Michael Douglas), the popular
corporate raider character from the 1987 flick Wall Street.
But the younger crowd will also be familiar with it from
the popular ‘90s sitcom Saved By the Bell. The lovable main
character Zack Morris was often seen with one held to his
ear as he chatted with his high school buds. The image
was so iconic, in fact, that when actor Mark-Paul Gosselaar
appeared on late night talk show Late Night With Jimmy
Fallon in 2009 to celebrate the 20-year anniversary of the
teenage sitcom, he reprised that role, donning his signature blonde locks, stone-washed denims and, of course,
the “brick” phone.
Today, making a call from a mobile phone is second
nature, and in fact, is often secondary to everything else
one can do on a phone. The mobile phone has become far
more than just a phone, it’s a mobile computer.
Marking the momentous 40th anniversary of the phone,
Dr. Cooper will have his work recognized with the muchdeserved $100,000 Marconi Prize at an awards dinner this
coming October.
But he’s not done yet. Today, Dr. Cooper still has his finger
firmly on the pulse of the industry, serving as Co-Founder
and Chairman of Dyna LLC, a Del Mar, CA-based company
that’s involved in broadband access technology and policy.
Dr. Cooper’s wife also spearheaded the launch of the Jitterbug, a simplistic phone that takes the cell phone back to
its initial days, with large, numeric buttons and a dial tone,
but with a modern-day design, and access to useful apps.
What does Dr. Cooper think is next for the cell phone?
We chatted one-on-one with the man known as the father of the cell phone about the future, the devices that are
currently available today, and his thoughts on the industry,
and even on the company he spent 29 years with: Motorola.
Funny enough, the call began with him experiencing
some signal issues, and the connection eventually dropping as he tried to find a better spot. We both couldn’t
help but laugh at the irony.
Here are some highlights from our Q&A. You can read
the full interview at marketnews.ca.
Exclusive: Q&A with Dr. Martin Cooper
First off Dr. Cooper, I’d like to say congratulations on
your Marconi prize.
Thank you. It’s a nice kind of thing and I’m very honoured to
get it. And please, call me Marty.
Thank you. Marty, what was your ultimate goal with
the mobile phone when you first worked to develop it?
Did you foresee it becoming what it has today?
Our goal was much more mundane than that. Our goal
was to stop AT&T from creating a monopoly in cell phones.
And not only that, but a monopoly in car telephones.
They invented cellular as far back as 1947. And now they
wanted to have a monopoly; only one carrier. We thought
the world was ready for the freedom you get in having
personal communications. And we sure didn’t want to get
put out of business. We actually knew that someday, everyone would have a personal phone. We told a story that
some day when you were born, you would be assigned a
telephone number, and if you didn’t answer the call, you
would die.
What would you say are the biggest issues facing the
mobile industry today?
We started a revolution in creating the personal phone
because we changed the nature of a phone call. When you
called somewhere, you were calling a place and you didn’t
know who was going to answer. Now when you call, you’re
calling a person, and you expect them to answer. The freedom that comes from that; I don’t think there’s ever been
a technology that’s been so pervasive, where we have six
billion cell phones in a world of seven billion people. But
the next revolution hasn’t happened yet. Yes, people get
their e-mail and watch movies. But none of those things
are really profound. But there are some profound revolutions that are coming.
Can you tell us more about these revolutions?
There are three revolutions that I think are going to be
most profound. First, it’s going to be in health care. Your
body can be monitored continuously. We’ve known how
to do that for many years. We can put a patch on your
body that will measure how much fluid there is in your
lungs, and we can anticipate congestive heart failure. And
if you can anticipate it, if you can tell somebody who is
starting to accumulate fluid in his lungs, 10 hours or six
hours before it becomes dangerous, then you can treat
them. It might just be as easy as taking a pill and you stop
someone from having a heart attack. And this is a product
that exists today. The patch has a little radio in it that talks
to your cell phone, talks to a computer that monitors you,
and you’re now protected. And there’s a little device also
available today that measures your calorie intake and outgo. So one thing you can do is keep reminding people that
they’re taking in more calories than they’re burning up.
Each of these little things is minor, but when you put them
all together, it turns out that every disease is actionably
preventable. If you can sense when something is getting
out of control and can stop it before it becomes a disease,
we could someday eliminate the whole concept of someone having a disease. I’m not suggesting that’s the only
thing that’s going to fix healthcare. But it’s certainly going
to have a profound effect.
Second is education, which is going to be revolutionized.
The whole idea of a classroom is becoming obsolete. I got
a different award a month ago, and someone else got an
award who created a new university. They tell me if they try
to have a professor lecture, the students sit there and surf
their iPads, and can find out more about the subject than
the professor does, in real time. What’s the purpose of that?
You’re better off somehow getting students to do their
studying and information gathering on their own, because
they can do that any time of the day, wherever they are.
And then you have classroom time, and that’s for the teachers to share their wisdom, provide guidance, to focus them.
And the most profound one; it’s one that started with
the cell phone 30 years ago; and that has to do with productivity. The fact that you are doing business 24 hours a
day, wherever you are, has made a huge difference already
just with voice and texting. It was so easy for you and me
to set up this phone call because I knew that wherever I
was, you could reach me. And when you extrapolate that
to every aspect of business administration, the world is
going to be so much more productive. We now have the
opportunity to make real progress on the biggest problem
in the world today: poverty. The biggest problem is the
difference between the haves and the have-nots. That is
going to take a couple of generations because we have
a lot of ingrained habits. But little by little, we are becoming a more productive society, which means there is more
wealth to be shared among the people.
When you combine all of those things, we end up with
a world in the future that is healthier, smarter, and richer.
And I think the cell phone has made an important impact
on all of these three.
What are your views on Motorola and its position in
the market today? The company was clearly once an
innovator, yet seems to have fallen by the wayside,
with companies like Apple and Samsung now dominating. What went wrong?
Clearly, Motorola lost their way because when I was there,
we were the leaders. We started cellular, and certainly
portable cellular telephony. The RAZR was probably the
best-selling cell ever when it was released. The Board of
Directors decided maybe that Chris Galvin wasn’t good
enough so they brought in a guy named Ed Zander and in
two years, he virtually destroyed the company. Will Google
save Motorola? This idea that there are only one or two
people in the market, or maybe even three, that can be
successful is true if there’s only a single product. But I see
the future of cell phones as being customized to people.
Tell us more about that.
People are really very different from each other. There’s no
reason a single cell phone should be ideal for everyone in
the world. I just think that’s a wrong concept. The way the
world is going to evolve, there are going to be niches. We
have one in the States that you guys don’t have. My wife
invented a phone [the Jitterbug] and a service for people
who want ultimate simplicity. Here you have a niche, and
it’s for those people, and it’s really important. We don’t sell
hundreds of millions of phones like Samsung and Apple
do. But it’s a very nice business, and a very profitable business. And the people who use Jitterbug love them. Why
shouldn’t people in all other types of niches have phones
designed for their purposes? And hopefully the world will
evolve to that and Motorola can find their niche and other
people can as well. I don’t think you have to build 100 billion phones to build an inexpensive phone. I think that the
market is going to change. People are going to get smarter.
So what will the phone of the future look like?
I would tend to see the phone being much more customized to the individual and for each of the functions of the
phone to be more optimum. What do I mean by that? I’m
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sitting here talking to you and I’m holding my phone up
to my ear, and nothing could be more awkward. My arm is
getting tired! Why am I doing that? Well, I could use a Bluetooth, but that’s also kind of awkward because then I have
to pair the thing, and have to keep the battery charged. So
probably one day, and probably not in your lifetime either,
you’re going to have a phone embedded under the skin
behind your ear that has a really powerful computer in it,
and that little device is going to be powered by your body
because that’s what your body is. It’s an energy converter.
You take food in and it converts that to energy and that’s
how you move. So why not use a little bit of that to run the
phone? And when I want to talk to you, I just tell my computer phone to call Christine and the phone says ‘which
Christine: the one in New York or the one in Toronto?’ and I
say ‘Toronto,’ and there, I’m talking to you. That, to me, is an
optimum phone. And similarly, all these other functions that
we talked about; health and education; they’ll be devices
that are optimized for those purposes. You won’t have to
have that universal phone that does all things for all people,
but doesn’t do them very well. What you will have on your
body somewhere is a little box that I call a communications
server, not a cell phone. And this server connects you to the
world: to the Internet, to these powerful medical computers.
And then you have other devices on your body, depending
on who you are and what your needs are, to serve you.
You were quoted a few years ago as saying that mobile
phone manufacturers need to build devices based on
what consumers want, not what engineers want. Do you
feel that any company has accomplished this, or has
come close?
Jitterbug is a very minor example. These
health care devices that I mentioned, they’re
starting to become commercial. We’re
starting to see a lot of things happening.
The most important one has to do with the
cell phone itself. We’ve pretty much gotten
to the limit of how many gadgets you can
put in a smartphone, and how small you
can make it, and how cute they can make
it. What happened between the iPhone
4 and 5 was not very profound. And then
Samsung comes out with a new phone,
and it looks so much like an iPhone, you can
hardly tell the difference! So the future is the
applications. What can you do to actually
make people more comfortable, safer, to
educate them. These are all of the things
the cell phone ought to be focused on. And
The Jitterbug now the cell phone is starting to move in
that direction. In the past, we’ve almost tried to turn people
into engineers, and that’s wrong. Good technology ought to
be transparent, intuitive; it really ought to be invisible. If you
have technology that really serves you, you shouldn’t even
know it’s there. It just ought to make your life better. One
example is the phone I just described to you; the voice part
of your server. You don’t even know it’s there when you’re
not using it. And when you want to use it, you just say a few
words. Ultimately, you’ll be able to just think and there you
will be.
Since you made that first call back in 1973, has anything in the industry ever wowed you in the same way?
Let me point out to you the way the world was in 1973:
it’s hard to imagine a world where there is no Internet.
Nobody has a personal computer. The digital camera has
not yet been invented. There are no large-scale integrated
circuits. The most powerful computer doesn’t even come
close to what we have in a cell phone. I’m talking about
the most powerful computer in the world. Could we ever
have imagined that you would have a billion transistors in
a cell phone? Not very likely. A transistor in 1973 sold for
10 or 15 cents, so you multiply that by a billion, and it was
just unimaginable. So from an engineering standpoint,
that is what has wowed me. I still am entranced by the
technology that goes into a cell phone. I’m not impressed
by it from the standpoint of how it improves the lives of
people because I think the potential is much bigger than
the actuality.
I’m sure you get asked this a lot, but what is your
phone of choice today?
I carry a Jitterbug because it’s the easiest phone. But I have
to know what’s going on because everyone asks me these
questions. If you’re not connected with the world using
these things, you don’t really understand them. So I have
a new phone all the time. The phone I have right now is
a Motorola Droid Razr M. The thing that’s unique about
it is that they’ve gotten to the point where the screen
goes right up to the edge of the phone so I end up with a
smaller phone and a bigger screen, and that to me is very
advantageous. And it’s got pretty good battery life; the
battery lasts me actually two days, which is quite unusual
for a smartphone. I like it. But in a couple of months, somebody’s going to come out with a new phone that has a
feature I just have to have.
You mentioned previously having an iPhone. Do you
still carry one of those?
No. That’s how I got to have so many Twitter followers
(laughs.) I was interviewed on a radio program in Washington and they asked me this same question and I said yes, I
used to have an iPhone but I gave it to my grandson and
now I’ve got an Android phone. Then, some Websites put
out headlines that said ‘Cell Phone Inventor Dumps iPhone
for Android.’ And within two days, I had 3,000 followers
on Twitter. If they do something new with the iPhone, I’ll
get another one. But at the moment, I think I have a pretty
good idea of how an iPhone works.
I think Apple and Samsung and all these guys are going
to have to come up with differentiating phones because
the idea of all phones converging so they all look the same
is not responsive to the needs of the public.
What’s your personal preference in terms of operating
system? Android or iPhone?
At the moment, I don’t see much difference. The real difference is in the infrastructure. And there are advantages and
disadvantages to things like iTunes. I’m now beginning to
find iTunes awkward. You have to hook up to iTunes, and I
find with Android, I have more freedom. I’m sure the way
that [iTunes/iPhone] integrates with the same operating
system on your computer has some advantages as well.
I’d really like to accentuate the differentiation, and have
people make their decisions on how their lives are made
better by one compared to the other. Not one has a piece
of hardware, or a piece of software that’s better than the
other one.
What’s your advice to carriers?
If all of these things that I predict come true, we’re going to
need 20-40 times more throughput over the next five years,
and there is not that much spectrum. The emphasis on the
carriers and our government is to take spectrum away from
someone else and give it to the cellular carriers. That’s the
wrong answer. The right answer is new technology, and that
technology exists, and the carriers have been very slow to
adopt it. They are going to have to adopt things like smart
antennas and femtocells. We need a kind of revolution that
has to happen with the cell phone infrastructure as well.
What would you say to people who say the mobile
phone has contributed to isolating society rather than
connecting it, with one easily immersing himself in his
phone to avoid social interactions, or constantly connected at times when one shouldn’t be?
If a technology is disruptive, it is going to disrupt. We have
to decide whether the disruption is positive or negative.
Certainly there are some negative aspects to cell phones.
You’ll never replace the importance of personal interaction.
The fact is that if you and I had done this conversation by
e-mail, there would have been much less communication
than there is now. I can tell you have a great sense of humour and I never would have known that in an e-mail. And
face-to-face communication will never be replaced by the
telephone. We’re still going to be doing those things. The
question is are we going to be slaves to our cell phones,
or are cell phones going to be our slaves? And that’s why
we put an on/off switch on every cell phone, so you don’t
have to have it on every time. And that’s why the decision is
yours, not the rest of the world’s, on how you use it. We are
still in very early stages. We’re still learning how to use these
tools. Our children and our grandchildren will get better
and better at it, and the tools will get better. Ultimately, I
think cell phones are going to be our slaves and overall,
they’re going to make our lives better.
On behalf of Marketnews, Happy Birthday, Mobile Phone,
and a hearty congratulations to Dr. Cooper.
The iconic image of Michael Douglas as Wall Street’s
Gordon Gekko helped to bring the mobile phone into
the pop culture sector.
Today’s younger generation is likely to recognize the “brick”
phone from its appearances in popular ‘90s teen sitcom
Saved by the Bell.
Defining Moments for Canada
In celebration of the anniversary, here’s a look back at some of the most defining moments and
milestones for the mobile phone in Canada:
1973:
1984:
1985:
1996:
1997:
1999:
2000:
2001:
2005:
2008:
2009:
2011:
2013:
The first modern cell phone, the DynaTAC portable radio telephone, is built by Motorola, although it
does not reach the consumer market at this time.
The “brick” DynaTAC phone becomes available to consumers.
The first cell network is set up in Canada, offering analog service (voice only.) The first phones
available tip the scales at 1kg, cost $5,000, and offer 30 minutes of talk time.
Digital cellular service launches in Canada, offering better voice quality, and essentially marking the
dawn of wireless data (call waiting, text messaging, multi-media file exchange, etc.)
Cantel AT&T becomes the first wireless company in Canada to offer Digital PCS services nationwide.
The first BlackBerry, the 850, is introduced by the Canadian company Research in Motion (RIM).
Rogers AT&T Wireless announces plans to build Canada’s largest GSM/GPRS (integrated wireless
voice and packet data network) in 2001, setting the stage for commercial deployment of 3rd
generation wireless services.
Bell Mobility, Microcell Connexions, Rogers AT&T Wireless, and Telus Mobility join forces to develop
an initiative that will enable inter-carrier, mobile text messaging for digital wireless customers across
Canada. Today, Canadians send millions of text messages per day.
Canada reaches 15.3 million subscribers, representing 50% wireless penetration.
The first Apple iPhone to hit Canada, the 3G, is made available through Rogers, arguably ushering in a
new era in smartphone design and adoption.
The first Google Android device, the HTC Dream, comes to market.
Major carriers launch their 4G networks in Canada, offering speeds that rival traditional broadband
and, in some cases, even surpass.
Household mobile penetration reaches almost 100% in some markets (Gartner) and smartphone
penetration reaches 47% in Canada (Ipsos Reid), showing a shift to multifunctional devices.
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New headphones, receivers, soundbars, docks at Yamaha dealer show
At Yamaha Canada Music Ltd.’s dealer shows held across
Canada in April, the company showed off new AV receivers, music docks, headphones and soundbars.
Like many audio companies, Yamaha is getting in on the
headphone boom. New for 2013 are the Pro Series of closeback circumaural ‘phones. Instead of being voiced primarily for urban music, the new headphones have a balance
that’s more tailored to mainstream music. All models are
iOS-certified, and have cables with inline controllers. They’re
folding designs, and are supplied with a carrying case.
The PRO 300 ($249) feature 40mm drivers and come
in blue, black and white. At a$349, the PRO 400 features
larger 50mm drivers and a detachable cord. They’re available in white and black. In addition to a four-foot cable
with inline controller, the PRO 400 comes with a 10-foot
cable for home listening. The PRO 500 ($449) has premium
50mm drivers housed in aluminum enclosures, and input
jacks on both earcups.
PRO 500
MCR-B142
Yamaha’s compact music systems are receiving a refresh
for 2013. Like the popular MCR-040, the MCR-042 and
MCR-B142 have detachable speakers and come in 10
snazzy colours. But they’re shallower this year. Like their
predecessor, they have slot-loading CD players and 30-pin
legacy iPod docks, but now also sport a front USB input
that’s certified for iPhone 5 connectivity. The MCR-B142
adds wireless Bluetooth capability for wireless music
streaming.
Also being updated are Yamaha’s single-piece desktop
music systems. The TSX 132 has a slot-loading CD player,
30-pin legacy iPod dock and front USB input that’s compatible with the iPhone 5. The TSX-B232 adds Bluetooth
music streaming. Both systems are available in blackbrown or maple-white finishes.
This spring, Yamaha is introducing four new V-series AV
receivers. The top three models are networked receivers, featuring AirPlay support, MHL connectivity, vTuner
Internet radio and compatibility with the Yamaha Control-
ler app. Retailing for $999, the YHTV 4750 home theatre
package is built around the RX-V475 network receiver. The
package includes two tower speakers, a centre-channel
speaker, two satellites and a powered sub.
Also unveiled at the dealer shows were two new
Aventage-series receivers. Arriving in Canada in May
for $749 MSRP, the RX-A730 is a robustly constructed
7.2-channel two-zone receiver with a full suite of networking features, including AirPlay, MHL and DLNA. It’s rated
at 7x90 watts (20Hz-20kHz, 81, 0.09% THD, two channels
driven). The RX-A730 features Intelligent Amp design,
which dynamically assigns amplifier channels to different
speakers, depending on which zones are activated. Zone 1
can be set up for seven channels, but will scale back to five
channels to allow two-channel playback in Zone 2. Arriving in late May or early June, the RX-A830 has eight HDMI
inputs (including a front-panel MHL input) and dual HDMI
outputs, allowing for video in Zone 2. It’s rated at 7x105
watts (20Hz-20kHz, 81, 0.09% THD, two channels driven),
and will retail for $899. Other Aventage-series receivers will
arrive in the fall.
Two new digital sound projectors were on display. The
YSP-3300 has 16 beam drivers, which it uses to create a
3D surround experience, dual mid-bass drivers, a wireless
subwoofer and four HDMI inputs ($1,699). The YSP-4300
($2,199) has 22 beam drivers, and adds an iOS-compatible
front USB input.
Yamaha remains active in two-channel audio. New for
2013 is the CD-N500 networked CD player, which can
stream music from networked PCs and NAS drives.
– Gordon Brockhouse
www.marketnews.ca, Search News: ysp-3300
Sony highlights 4K, connectivity at Canadian dealer show
On April 10 and 11, Sony of Canada Ltd. highlighted its 4K
televisions and smart TV features at its annual dealer show,
held at the Westin Prince Hotel in Toronto.
Even before entering the large conference room where
Sony’s 2013 lineup was on display, a major theme was
obvious. Outside in the lobby were products and exhibits
that highlight Sony’s involvement in motion pictures,
music, broadcast equipment and video games.
Front-and-centre inside the conference room was a fourstation demonstration centre. Each station had a large
Bravia television and connected products.
One station showed the NFC features of this year’s XBRand W900-series televisions. All reps at the show had Sony
Xperia ZL phones, which they could tap against the TV’s
remote to establish a direct Wi-Fi connection, and then
mirror the phone’s screen on the television.
At another, Sony was demonstrating the SideView app
(available for both iOS and Android) on a Sony Xperia
Tablet Z. With the app, which works with premium W- and
X-series Bravia TVs, viewers can conduct global searches
for content on Netflix, the Sony Entertainment Network,
and networked devices (including PCs, smartphones and
NAS drives), then shoot it to the TV. The app also includes a
full electronic program guide, which is now operational for
all of Canada. At this time, SideView can’t search program
listings for content. The SideView app is backward-compatible with some of Sony’s 2012 TVs, Blu-ray players, HTiB
systems and the Google TV box, noted Karol Warminiec,
Central Region Training Manager.
Another demo station showed connectivity features in
new Sony digital cameras, with the cameras being controlled from a tablet, and sending content to the TV.
The big news from the event was an official announcement on Sony’s 55” and 65” 4K Ultra-High-Definition
televisions. The 55” XBR-55X900A and 65” XBR-65X900A
was made available in late April, for $5,000 and $7,000,
respectively. Both models were on display at the dealer
55” XBR-55X900A
ing scenes with lots of vivid reds. On the older set, these
looked a little pink or magenta by comparison.
Attendees were sent home with thumb drives containing images and test patterns designed to show some of
these benefits. One interesting note from this material: Sony
is using a less aggressive retail picture mode on its TVs.
According to Sony, it’s less punchy than competitors’ store
modes, but more accurate and detailed. Instructions on the
thumb drive encourage sales staff to make this comparison
to customers, and provide files for this purpose.
Sony also had its full digital imaging lineup on display, as
well as its gorgeously thin (4.9mm to be exact) Xperia Tablet
Z. The NFC-equipped tablet runs Android 4.1 Jelly Bean; and
features a 10.1” 1920x1200-pixel screen and infrared emitter
so that it can be used as a home theatre remote control.
– Gordon Brockhouse
www.marketnews.ca, Search News: KDL-55W900A
A large display was dedicated to Sony’s POV Action Cam
(MSRP $350) which comes bundled with what Sony calls the
Adrenaline Junkie kit that adds all the mounts and waterproof cases required to capture your adventures.
show. In the next couple of months, Sony will deliver a
downloadable app for the PlayStation 3 containing 4K
content such as National Geographic photos.
Sony’s is streamlining its Bravia HDTV lineup this year,
Warminiec said.“There’s a significant upgrade at every
step,” he elaborated.“This makes it easy for the salesperson
to find the right set for the customer.” The entire lineup
was on display, with stations showing the benefits of
features in step-up and premium models.
The step-up R550 series, which features passive 3D
(with a SimulView option for two-person gaming) includes a 70” model at $3,000. All W and X series TVs have
X-Reality Pro video processing. As Warminiec noted, this
works with non-HDMI content, so that it’s able to clean
up sources like Netflix and YouTube videos. This was
demonstrated with a video file shot in a dark location by
a Sony employee. Another station showed how X-Reality
Pro improves picture brightness and dark level detail,
while maintaining deep blacks.
Sony’s top HD model for 2013, the 55” KDL-55W900A,
features a Triluminos panel, with expanded colour gamut,
particularly in the red region. The 55” and 65” 4K sets are
also Triluminos models. The benefits of Triluminos were
shown in side-by-side demos with a conventional TV us-
Ferrari by Logic3 intros
FSI Air speaker dock
Ferrari by Logic 3 has launched its FSI Air speaker dock,
featuring AirPlay technology, which allows the user to wirelessly stream music from iTunes and Apple devices through
the speaker; or a built-in dock for wired connection, plus
charging capability for the connected Apple device.
This 2.1 speaker system has Bluetooth connectivity so
that non-Apple users can also partake; and Class HD Technology integrated with a digital signal processor (DSP)
to control crossover and equalization. The latter, says the
company, allows for the “best performance, natural music
timbre, and extended low frequency response.”
The FSI Air is $649, and available in Canada through
Erikson Consumer.
www.marketnews.ca, Search News: FSI air
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Positive Marketing undergoes restructuring
In a letter sent to dealers on April 9, AV distribution company Positive Marketing AV cleared up details about its
current situation, confirming that the company is currently
undergoing a “court-assisted restructuring” that it says will
bring the company back to its roots in custom AV.
“We have no intention of closing up,” Director Phil Bond
tells Marketnews in an exclusive interview.“We grew into
a company where, it was nice doing millions in business
for a company that needed to do millions and millions of
dollars in business to survive. But it’s no secret that the last
three years haven’t been the same as the previous three,
or before. We became this big machine that had to sell volumes to keep things going. We want to get back to having
fun again.”
The Mississauga, ON-based company, which also has a
Western Regional branch in Calgary, AB, says it is working to
correct supply issues that have plagued the company of late,
clearing out back orders, and filling new orders from stock.
“Our supply slowed down because of cash flow,” says Bond.
As part of the restructuring, Positive Marketing will be
focusing on a smaller assortment of brands, as well as
getting rid of excess inventory, which will be sold off at, in
some cases, significant reductions. Bond says the company
will reduce its brand count from about 30 to 15 or 20.
These will focus on automation, speakers, and some tie-in
accessory lines. However, all current orders will be fulfilled.
“We will be heavily weighted in automation,” says Bond,
naming lines like CasaTunes, ZeeVee, and 3vNet, plus the
latter’s forthcoming transition brand, as a few of the core
lines for the company going forward. Positive will also
maintain its Barrier Plus “house” accessory line, which Bond
says has performed quite well over the years.
Brands that will no longer be represented by the firm
include Tripp Lite and Active Thermal. Bond says the decisions were made after in-depth brand assessments.“Some
[brands] were doing fewer than two turns per year,” he
notes,“and we were carrying thousands in inventory.”
Bond notes that both offices will remain in tact, though
some staffing changes will be necessary, and Positive will
be looking for smaller digs for its head office. Those who
offer technical support, order fulfillment, and programming
inquiries, Bond adds, will remain part of the team, as will all
of the outside sales reps. In total, the company will go from
about 11 employees down to about eight. Those who will
be let go, notes Bond, have been given working notice.“We
want to give them time to find alternative employment.
“Sales reps and technical support are paramount to our
success,” notes Bond.“While some things may change, our
commitment to our customers and to service remains the
same.”
Positive Marketing celebrates its 25th anniversary this
year, and operates under Phil and his son Scott’s leadership.
The Bonds say they remain in full control of the restructuring, and are the only secured creditors. They chose to do
this rather than a forced close, Bond adds, so that suppliers
get hurt less in the process.
All said, Bond expects the restructuring to take 3-6
months.“We have some milestones to hit, and we’re taking
this seriously.
We’re not going
away.”
Clearly Positive Marketing
takes its name
seriously, and for
good reason.
“We’ve had support from every
dealer,” notes
Bond,“and a
resounding positive response.
In a note to
Bond, Barry Hirtle
of Hirtles Sound
Solutions, said
the following:
Phil Bond, Director, Positive Marketing AV. “Phil, you had a
vision 25 years
ago as to where this industry was heading and you were
dead on right. Good luck my friend in righting the ship and
sailing on for another 25 years.”
“I want Scott to be at the helm 25 years from now,” notes
Bond.“Our intention is to be in business for another 25 years.”
www.marketnews.ca, Search News: positive marketing
bond
TomTom intros two new GPS sport watches
TomTom has introduced its new Runner and Multi-Sport
GPS sport watches. The products, which are targeted
toward runners, cyclists, and swimmers, will be released
this summer.
These watches are 11.5mm thin, designed for all wrist
sizes, and feature “an extra large, high-resolution and highcontrast display.” (Marketnews is attempting to confirm the
exact sizing of the display.)
Each watch features built-in sensors that are able to
count the strides a user makes, and can monitor one’s pace
and distance even while running on a treadmill. TomTom’s
Graphical Training Partner is here as well. This element allows the user to set training goals for himself; race against
personal bests; and create targets for pace or heart-rate
(with optional heart-rate monitor) and track progress in a
full screen graph over the course of a workout. All can be
PayPal coming to
an LG TV near you
controlled by a single button.
The watches also have Bluetooth connectivity, and use
the latest GPS and GLONASS satellite technology to determine a user’s precise location.
TomTom notes that these watches are compatible with
a number of platforms, including its MySports Website, as
well as third-party sites/apps like MapMyFitness, RunKeeper, TrainingPeaks, and MyFitnessPal.
In terms of durability, the Runner and Multi-Sport
watches are waterproof up to 50 metres; have scratch- and
impact-resistant displays; as well a 10 hour battery life.
While the Multi-Sport model has all of the same features
as the Runner, it does also come with unique ones like a
dedicated bike mount; a cadence sensor (optional); and a
built-in altimeter to measure elevation, ascent, descent, and
grade (not available in all products). There’s also a swimming
motion sensor that is also not available with all watches.
Canadian pricing is TBD.
www.marketnews.ca, Search News: multi-sport gps
Yamaha’s Ron Zupka retires
LG Electronics will be the first TV manufacturer to offer
PayPal through its Smart TV platform, with Canada as one
of the first markets to see the technology.
Set to be available through 2013 model Smart TVs, the
PayPal system will allow consumers to make purchases
right from their TVs, using a traditional remote or LG’s
Magic Remote to input their account details. There will
also be a “remember me” option so the user need only log
in once to his PayPal, then continue buying literally from
the comfort of his couch to his heart’s content.
Canada, the U.S., and the U.K. will be the first markets to
see the PayPal integration, followed by France, Germany,
Spain, Italy and Australia starting this month, with other
markets to follow.
www.marketnews.ca, Search News: LG paypal
Ron Zupka (left) with Yamaha Alumnae Alf Trotta.
The banquet hall at the Toronto Radisson Hotel was filled
“Ron is one of the greats of this industry,” cited one
with the who’s who of Canadian retail, out to celebrate the
retailer, a sentiment also shared by Marketnews.
retirement of Ron Zupka from Yamaha Music Canada. Zupka We wish Ron all the best on his well-deserved retirement.
has been part of the Canadian CE landscape for 44 years.
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MARKETNEWS
New network AV receivers from Marantz
Marantz’s two new slim-line network AV receivers both
come with Ethernet ports and AirPlay capability, enabling
them to stream music from iOS devices and from iTunes
libraries on Macs and PCs over a home network.
The NR1504 and NR1604 have front-panel USB ports
that can accept thumb drives and portable hard drives.
They also allow direct connection of an iPod touch, iPhone
or iPad, and will charge the device even when the receiver
is in standby mode. The receivers can be operated by an
iOS or Android device running the free Marantz Remote
app. With the optional RX-101 adapter, users can stream
music from a smartphone or tablet via Bluetooth.
Both models have a graphical interface with a Setup
Assistant that guides users through the setup process.
Speaker connections are colour-coded, and AV inputs are
organized into distinct blocks. Audyssey’s MultEQ automatic room calibration technology, which automatically
sets speaker type and distance, and compensates for room
acoustics, is also built in.
The NR1504 is a 5.1-channel receiver, with six HDMI
inputs, including one on the front panel. Rated power is
5x50 watts (81, 0.08% THD). The 7.1-channel NR1604 has
seven HDMI inputs, including one on the front panel, with
support for 3D and 4K passthrough. Other features include
upconversion of SD sources to HD, and upconversion of
HD to 4K. Rated power is 7x50 watts (81, 0.08% THD).
Canadian MSRPs for the NR1504 and NR1604 are $599
and $729, respectively.
www.marketnews.ca, Search News: NR1604
NR1604
New Harmony remote can also control your Philips Hue lights
Logitech has added two new models to
its Harmony universal remotes line: the
Ultimate and Smart Control, both of which
come with the Smartphone App and
Harmony Hub, and the former of which
can control Philips Hue lights as well as
entertainment devices.
The Smartphone App, available for iOS
and Android, allows anyone in the home
to turn his smartphone into a remote. It allows for control of up to eight devices from
anywhere in the home. Using the Hub,
which operates via Bluetooth, users can
power on compatible game consoles, and
control IR devices inside closed-cabinets
without the need for line-of-sight.
Both remotes are compatible with
more than 225,000 home entertainment
devices and more than 5,000 brands.
Able to control up to 15 devices, the Logitech Harmony Ultimate is a fully featured
remote with a 2.4-inch colour touch-screen
that allows for simple swipes and taps
to control components. It also introduces the ability to
program Philips Hue lighting systems with entertainment
activities, allowing the user to adjust the room’s lighting just
as they would change the volume of the television. Other exclusive features include vibration
feedback, tilt sensors, and buttons programmable for both short and long presses, doubling the available functions.
The Logitech Harmony Ultimate is expected
to be available in Canada this month for a
suggested retail price of $349.99; while the
Smart Control is expected to be available in
late May, for an MSRP of $129.99. The Logitech
Harmony Smartphone App will be available for download
from the Apple App Store and Google Play.
www.marketnews.ca, Search News: Philips hue lights
Panasonic announces GF6 Micro Four Thirds compact
speed and exposure compensation.
The Instant Transfer function allows the camera to
upload images to the networked device as soon as they’re
taken. Or users can transfer images to the device in playback mode on the camera. GPS data from the phone can
be used to geo-tag images.
The GF6 employs a 16MP LiveMOS sensor and a newly
designed Venus Engine image processor. Along with new
multi-process noise-reduction algorithms, this results
in maximum sensitivity of ISO 3200 (auto) and 25600
(extended). Specified startup time with non-power-zoom
lenses is a speedy 0.5 seconds.
The Light Speed contrast-detect autofocus system
features a new Low Light AF capability, which Panasonic
Lumix DMC-GF6
says allows accurate focusing in dim situations, even with
Around the shutter-release dial is a zoom lever, for
an AF assist lamp.
use when a power zoom lens is attached to the camera.
The lever can also be configured for adjusting exposure
compensation or aperture. There’s also a mode dial with
manual P/S/A/M settings (which can be used for both
photos and videos), scene modes and two customizable
Shane Asa and Paul VanDamme have become partners in Markham, ONsettings.
based photographic accessories distribution company Digitec Trading.
The new camera features Panasonic’s Advanced iA+
They join Raymond Au, who was previously sole owner of the company.
(Intelligent Audio Plus) mode, whose functions include
As part of the agreement, Asa, who has been with Digitec for the past
Intelligent D-range Control, Intelligent Scene Selector,
eight years, will take on the new role of Vice President of Merchandising
Face Recognition and Intelligent ISO Control. A Scene
and Marketing. VanDamme, who joins Digitec from Amplis Foto, will serve
Guide function, with 23 sample pictures, helps novice usas the Vice President of Sales.
ers get the results they want, and also provides technical
Asa began working in the photography industry at a young age in his
advice.
father and uncle’s business, Japan Camera. He previously held the title of
Shane Asa
Paul VanDamme
The GF6 can capture 1080i60 HD video in AVCHD
vice president at Digitec.
format
or 1080p30 video in MP4 format, with full-time
Working right up from the retail sales floor to holding key sales position with suppliers, manufacturers, and distributors,
and tracking autofocus. There’s a dedicated video record
VanDamme has spent the last two decades in the photographic industry.
button on the top.
Evolution Home Entertainment Corp. has appointed Brian Graham of Big Sky Marketing, as its
On the back is a 3” 1.04-million-dot LCD capacitive
new sales representative for Alberta. Graham previously worked with Evolution from 2010-2011.
touch-screen. Users can lock focus on a subject, and then
Graham, who has 23 years experience in the AV retail and wholesale industries, will be respontake a picture, simply by tapping the screen. The touchsible for AudioControl, Cleerline, Definitive Technology, Nexus Audio, Planet Waves, and Sim2. Brand
screen tilts a full 180 degrees, for low-angle and overhead
Manager Brad Middleton will continue to represent Savant in Alberta while stationed at Evolution’s
shooting, and also for self-portraits. The front panel is
head office in Toronto.
directly attached to the LCD itself, which reduces internal
Graham can be reached at (403) 852-0447, and [email protected].
reflections, improves visibility and colour reproduction,
Fujitsu America Inc. has appointed Robert (Bob) D. Pryor its new President and CEO. He will be responsible for “acceleratand reduces power requirements.
ing the growth” of the company in the region, and focusing on the needs of clients in the U.S., Canada, and Caribbean.
Not only is the new touch-screen more responsive than
Pryor will also oversee Fujitsu’s North American relationships with Intel, Microsoft, Oracle, SAP, Salesforce.com, Symantec, the pressure-sensitive screens used on previous GF-series
as well as the company’s reseller partners. Pryor has more than 30 years of industry experience, which includes extensive
cameras, it’s more precise, making it easier to use the
time spent in the IT industry.
camera’s visual effects and editing features. These include
the new Clear Retouch function, which allows unwanted
Hewlett-Packard (HP) has confirmed that Raymond J. Lane has stepped down as executive
objects to be erased from still images.
chairman of the Board. He will be replaced by Ralph V. Whitworth on an interim basis, as the Board
Panasonic Canada Inc. has not announced colour
begins its hunt for a “permanent nonexecutive Board Chairman.”
choices, pricing, ship date or lens packages for Canada.
Lane will remain on the company’s Board as a Director, while John H. Hammergren and G. Ken– Gordon Brockhouse
nedy Thompson have stepped down as directors. Hammergren and Thompson spent eight and
www.marketnews.ca, Search News: dmc-gf6
seven years on the job, respectively.
Raymond J. Lane
Panasonic has announced a new compact GF-series
Micro Four Thirds mirrorless camera. The Lumix DMC-GF6
has some very interesting networking features, notably
Wi-Fi and NFC (Near Field Communications).
The NFC feature lets users establish a direct Wi-Fi
connection with an NFC-capable mobile device simply
by tapping the device to the camera. For connecting to
non-NFC devices, users choose the network name used
by the camera in their device’s Settings menu, then enter
the passphrase shown on the camera’s LCD.
The Wi-Fi connection enables remote shooting and
wireless transfer capabilities, using the free Panasonic
Image App for iOS and Android. Users can preview the
scene on a tablet or smartphone screen, and tap to shoot
a picture or video. The app also lets users adjust zoom
setting (with a power zoom lens), focus, aperture, shutter
Personnel Appointments
75% of U.S. households own at least one HDTV
[Leitchtman Research Group]
60 MARKETNEWS
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Have $5K to spare? Miele’s new
Combo Convection-Steam Oven might be for you
If you have $4,999 to spare, or are simply passionate about
cooking (whether you’re good at it or not), Miele’s new
DGCXL Combination Convection-Steam Oven might just
tickle your fancy.
The oven was announced late last year, but its finally officially available here in Canada. What justifies the high price
tag? Aside from the sleek look (it comes in three options,
including all white for $500 more) and built-in design, the
oven combines steam cooking with heat to help introduce
moisture into the cooking process. Using the oven, users
can cook multiple dishes at the same time without flavour
transfer; while also retaining texture, colour, taste, nutrients,
and vitamins. And they can enjoy some really high-tech
features while they’re at it.
The oven’s ample cavity can easily cook food for groups
of 8-10 people, with three racks for the main course, vegetables, and rice, for example; or even dessert.
A really neat feature is the ability to program the three
items you want to cook (say salmon, rice, and asparagus),
select how you want each portion (e.g. do you like your
asparagus tender or al dente?), then it will alert you which
item to put in first, and prompt when it’s time to add the
second, and then third, items. Each will be cooked to the
ideal temperature and doneness, so that your entire meal
is ready at the same time. There are more than 100 automated programs for meats, vegetables, and grains.
The element of steam is the big draw here, allowing for
searing a roast, for example, then lowering the temperature and adding moisture at the end to finish off with a
perfectly juicy cut of meat.
And if you want to take things a step further, there are
five MasterChef Gourmet programs for proteins that incorporate slow cooking techniques to help result in more
tender dishes. For example, Chef Anthony Ramundi, Associated Chief at Miele Canada, was on hand at the launch
event in Toronto’s St. Lawrence Market, and cooked up
roast chickens for the hungry attendees by baking them
for 45 minutes, followed by a 45-minute steaming process
in the same oven. The result? Juicy, tasty, tender pieces
of chicken. Experimenting further, Chef Ramundi baked
pasta al forno in the oven without boiling the pasta prior:
hard pasta was able to cook right from raw using included
water and steam.
The oven is equally as effective for desserts. Even more
impressive than the chicken and pasta served to attending media and designers was the to-die-for blood orange
cheesecake, baked without a water bath, yet still creamy
and moist.
There’s a water reservoir at the top of the oven, behind
the control panel that slides up when needed, which helps
to increase the oven’s capacity by 40%, says Miele. And
users are prompted when it’s time to dump and/or replace
the water inside the tray so there’s no guessing needed.
Users can store up to 25 favourite settings, for frequently
cooked meals, for example; and there are 12 standard
cooking modes. Users can also set temperature and moisture levels manually, if they like. All of this is performed via
the front touch panel.
It all sounds, quite frankly, a little daunting for even the
professional cook. But Miele’s National Training Manager
Mike Ferreira makes an interesting analogy to a product
core to the technology industry: the digital camera.“You’ll
have the person who will buy the point-and-shoot, or the
higher end DSLR, and he might simply keep it in program
mode at all times,” he says.“But then you may also have
the person who chooses to learn about and toy with additional features like white balance and shutter speed.” His
point is that while the DGCXL has all of the bells and whistles to allow for simpler, healthier, and more convenient
cooking for the person willing to take the time to learn
how to use it to the max, it can also be used as a regular ‘ol
oven for those who are afraid to take things further.
I don’t know about you, but I can’t imagine spending $5K
on an oven only to use it like a regular ‘ol stove. Perhaps a
better comparison would be the DGCXL to the high-end
DSLR that affords more functionality versus a regular oven
to the point-and-shoot, which is limited in its options and
cooking methods.
Then again, to use another tech analogy, there are plenty
of people who won’t flinch to spend close to $1K on a
smartphone and only use it to send texts and check Facebook. It’s all about priorities. And if cooking is one of yours,
this might be the oven for you. – Christine Persaud
www.marketnews.ca, Search News: dgcxl
Distribution Appointments
Automobility Distribution, which opened a wireless division in late 2012, has been appointed the exclusive Canadian distributor for Skech smartphone cases, the bcoda CODA
ONE 3-in-1 Bluetooth speaker and Jak multishare USB device, the Anygrip universal mobile suction mount, and the P-tunes pregnancy speakers. All of the products are available
now. www.automobilitydistribution.com
Brother Industries, Ltd. has entered into an agreement with Eastman Kodak Company
to acquire certain assets of its Document Imaging business. The agreement is the initial
stalking horse bid under Section 363 of the U.S. Bankruptcy Code, to be followed by an
orderly auction process under certain procedures set forth in the agreement.
Under the agreement, Brother would acquire these assets for approximately US$210
million in cash subject to certain price adjustments, plus the assumption of specified
liabilities. Brother will assume the specified assets and liabilities of the document imaging
business, which include approximately US$67 million deferred revenue liabilities associated with customer prepayments.
If Brother is selected as the successful bidder at the auction, or if no qualified competing
bids are timely submitted, and subject to court and other regulatory approvals, the company
expects to complete the acquisition in the third quarter of 2013.
Digitec Trading has been appointed the exclusive Canadian distributor of Photoflex
professional photo gear, including lighting tools and accessories.
Following from the appointment, Digitec Trading hired Trevor Sherwin to serve as a
dedicated Photoflex Product Manager. Sherwin has extensive experience in the photo
industry, and currently has his own personal studio and Website.
Ericsson has agreed to purchase Microsoft’s Mediaroom business. Once this transaction
goes through, Ericsson will become the largest provider of IPTV and multi-screen systems
with a market share of 25%.
TV service providers like Bell Fibe TV, AT&T U-verse, Entertain of Deutsche Telekom, Telefonica, TELUS Optik TV and Swisscom use Microsoft’s Mediaroom technology.
Financial details of this deal haven’t been disclosed, but it is expected to close in the
second half of 2013, subject to customary regulatory approvals and other conditions.
Gibson Guitar Corp., a manufacturer of musical instruments, has confirmed an agreement to make a strategic investment into TEAC Corp., a Japanese AV manufacturer, acquiring more than a third of the company.
TEAC makes data storage equipment and related products. Gibson says the move is part
of its “continued diversification into the music and audio lifestyle arena.”
The transaction was unanimously approved by the Boards of Directors of both companies.
Through a special purpose vehicle, Gibson will make an all-cash tender offer to purchase
157,447,000 shares of TEAC common stock for 31 Japanese Yen per share in cash. Gibson
will purchase a maximum of 157,500,000 shares.
Mitsubishi Electric Sales Canada Inc. has announced that effective April 1, 2013, all
home theatre sales will be handled by Montreal, QC-based SF Marketing Inc.
SF Marketing will be reaching the Canadian market with three different sales divisions,
including the consumer AV division, which will focus on CEDIA applications.
NVU Electronics Inc. has been appointed Canadian distributor for Carbon Audio’s Zooka
Bluetooth speaker bar.
First seen at CES, the $99.99 Zooka doubles as a portable speaker and a stand for the iPad.
The iPad slots into the centre portion of the speaker (there are a pair of 30 mm speaker drivers on each end), and a removable metal kickstand can be inserted into the back to prop it
upright. Or, just use the Zooka as a grip for the tablet, offering a more secure hold on it.
Stampede Presentation Products Inc., has become a North American distributor for
WHOOSH! Inc., the manufacturer of a tech device-friendly display cleaner.
The WHOOSH! product line includes the Screen Shine, which is said to be a natural
cleaner able to safely clean, polish, and protect the screen of any tech device.
This solution comes in a variety of sizes, including Pocket (.3 fluid ounces), On-the-Go
(one fluid once), and Duo+ (one 3.4 fluid ounce container, plus another with .3 fluid
ounces). All come with a 6”x6” microfiber cloth.
For the commercial, industrial, and education segments, a 24 fluid ounce bottle and a
five-gallon pail of the solution are also available.
Staub Electronics is now distributing Mobileye, a manufacturer of collision avoidance
and mitigation technologies for vehicles that features a collection of driver safety and
convenience applications in an aftermarket system. It has one “smart” camera that is
housed with Mobileye’s proprietary EyeQ chip and algorithms, and can be installed on the
front windshield inside of a vehicle. It boasts an audible alert and a visual display to assist
drivers. Functions include: Headway Monitoring and Warning, Forward Collision Warning,
Pedestrian Collision Warning, Lane Departure Warning and Intelligent High-Beam Control.
MARKETNEWS 61
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FOCUS ON
Scot Kerek
Stats:
Name: Scot Kerek
Company Name: AVAD Canada Ltd.
Location: Toronto, ON
Years in the Industry: 26
Hobbies: Golf, Guitar, Cooking, Snowmobiling, Boating,
Motorcycling and the occasional Solo Car Racing Event
Q&A:
How did you get into this industry?
I ventured into this industry out of a deliberate attempt to
work in my field of discipline after graduating college (RCC
Institute of Technology) in electronic engineering. I spent
nine years working on the technical side of the business,
during which I was promoted to various technical positions. In 1996, I transitioned to an outside sales role. It
was not very common for technical people to move into
sales at that time.
When you are not at work, how do you spend
your free time?
We have a year ‘round family cottage on Georgian Bay,
and spend most of our leisure time there with family,
friends and neighbours. We spend time discovering Georgian Bay’s Thirty Thousand Islands Region by boat in the
summer. We pick a new island to visit most summer weekends, stopping long enough to have a campfire lunch,
swim, and visit all the incredible sights. In the winter, we
do much the same, but snowmobile into inland-island
lakes that are not accessible in the summer. Whether it’s
summer or winter, most days end with exaggerated stories
about a big fish that got away, a 30 foot golf putt to save
par, a water jump from a cliff face that’s always higher in
your mind than it really was, or how great the snow conditions were that day. Some weekends, it’s just Wendy (my
partner for the last 13 years) and I.
What is your greatest extravagance?
My divorce! Enough said.
What would you deem the most influential product
introduction of your time?
One is the mobile phone: it changed where and when business could be conducted, and how family members stay in
touch. The second is the flat panel TV. I remember selling
Marantz 42” plasmas with an MSRP of $27,000. This became a regular purchase for well-heeled people and designers who wanted the TV off the floor. The category quickly
became a top revenue producer for Marantz. The third is
Apple’s iPod and iTunes, which has crossed, changed, and
challenged several industries at the same time.
What does our industry do well?
What do we do poorly?
The industry has done well creating aspirational products
across multiple categories that appeal regardless of a person’s
age, gender, stature, or country in which they live. There is
always ‘something’ that ‘someone’ wants to own. Then, just
as the consumer reaches CE ownership bliss, we come out
with a product that is newer, better, and almost always at a
reduced price! If the original experience was pleasant, we get
to repeat the process. Those in CE make a living by providing
what is essentially entertainment. Where we have failed is in
the speed and sometimes manner to which new technologies come to market. Frequently, these technologies are
aimed at consumers who might not fully understand them
and they are often ill-explained by us. Occasionally, product
might not be fully developed, further detracting from what
should have been a positive user experience. The pace of
technology can change so quickly that even some insiders
can struggle to keep up. If you’re in this industry and your
skill set isn’t current, it’s almost always fatal.
If we asked your clients and/or colleagues, what
would they say are your strengths? Weaknesses?
I have a very ‘hands-on’ management style, but I still believe very strongly in empowering people to get their own
best results and let their strengths come through. It has established an internal culture where we are all accountable
for our own success. It has allowed us to grow and yet still
be a fun place to work while leaning on each other when
necessary. My weakness is the second cup of coffee in the
morning and a crying daughter. I know both are better left
alone, but I can’t seem to resist caving to either.
What has been the best year of your career so far,
and why?
The year AVAD Canada officially started (2008). That
was also the start of an economic downturn, which has
fortunately never been felt by us. We introduced a much
needed and new business model within the CE/CI Canadian
industry during a challenging period. It was very rewarding
to help design, execute and build the company, while having it flourish in times of strife for many businesses. Perhaps
just as rewarding is knowing that the dealers who embraced
the new vendor model and have taken advantage of all our
services have also prospered over the same period.
Are you optimistic for the future?
Our Canadian economy has weathered better over the last
few years versus our U.S. neighbours. We didn’t experience
the new-housing stop, or a credit meltdown like the U.S. or
U.K. New houses were still built and our banking system
remained intact. However, Canadian household debt is just
now reaching its highest levels ever, and will likely affect
consumer spending. There is always opportunity, even in an
economic downturn. I follow a principle of ‘Never chase the
past, never stop learning, always be re-inventing yourself
and don’t be afraid to try something new.’
Have you had a mentor? If so, what skills did
he/she teach that have helped you?
There is no individual person I would single out as a
mentor, but there are many people I have interacted with
and continue to learn from. Everyone I work with, from
manufacturers to customers, from AR to HR, AP and IS,
from our managers in other provinces, to the warehouse
staff in Toronto, has taught me something useful that I
apply to work.
What technology product can you not live without?
I would have trouble functioning without a smartphone.
The amount of data you can process is incredible. I also
use an iPad for its larger form factor and instant-on feature
for general reading, e-mails with large attachments, or
detailed report viewing on the fly. It also contains a significant amount of my music database.
Share with us how business was done in your early
years and how it differs in the way business is
done today. Which era was better? What has stayed
the same?
Initially, the CE business was conducted primarily through
retailers. The specialty retail channel focused on new
product technologies while educating consumers, helping to
drive early demand. Technological change would occur over
a span of a year or two, while individual product life cycles
might last a couple years. ASPs would slowly decrease over
time and with new models, but margins remained healthy
throughout the channel. Big box stores sold CE product only
after they reached a certain price threshold and volume.
Regional chains tended to straddle the market between the
two positions. Everyone, it seemed, was making money.
Today, technological change can produce product with very
short life cycles. Today, manufacturer desire for market
share has been at the expense of profit and has even accelerated the process. Many regional chains that once held
significant regional retail share don’t exist anymore, having
failed to find an identity with their customer. Big box has
moved into primary roles previously held by specialty retail,
while online purchasing has cut into their sales. Remaining regional chains have formed buying groups, and many
surviving specialty retailers have become custom integrators. What exactly are custom installers today? They are a
legitimate trade.
Walk us through what you would deem a perfect
shopping experience.
I use the Internet to research larger purchases online. If I
can narrow down my selection to a single product using
that method, I will order it online if the retailer seems
legit or I have used them before. Local retail stores have
a better chance of getting my money than a purely online
etailer, as I feel there is a better chance for after sales
support if I need it. My online purchases are not cost
Scot takes the boat out for a spin on Georgian Bay.
driven, but a matter of convenience. If what I am purchasing requires service (installation, delivery, et cetera) then I
use a small circle of contractors or trades that I have used
before, or I get a referral from someone I know.
If you were to give one piece of advice to someone
planning on entering the consumer technology
industry, what would it be?
If your business plan is focused on price, you will be
short lived. There is always someone willing to sell for
less. Follow market shifts, don’t fight them, and absolutely maintain a value added service. In the CI dealer world,
brand is no longer king, nor is purchasing it at the lowest
possible price to maximize product margin the deciding factor. Product margin alone is now inadequate for
long-term CI sustainability. The IT channel taught us that
during its maturing process. CE is following an identical
path now. You don’t have to like this new position, but
you do have to accept it and change your behaviour to
move forward. If you do happen to sell a high margin
brand today, don’t bank on that long term, and definitely
don’t take advantage of the consumer either. That’s a
very slippery slope.
Tell us something that most people don’t know
about you.
My grey hair came from my three daughters, Carly (21),
Elizabeth (17), and Meghan (14), and not from the CE
industry, as most people might believe.
What’s the best holiday you have ever taken?
Where do you hope to visit next?
I have been fortunate to have travelled extensively
throughout North America, the Caribbean, and many
places all over the world for business and pleasure. The
best holidays are the ones you share with family and
friends whereby you create lasting memories with the
people you care about the most. My very best holidays
have been right here in our own Canadian backyard with
those people. mn
Scot and his partner Wendy on a Caribbean cruise.
62 MARKETNEWS
MNAPR13.indd 62
4/30/13 2:12 PM
NOTEBOOKS
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D I G I TA L A U D I O
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D I G I TA L I M AG I N G
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MOBILE
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PROJECTORS
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800.340.1008
EXCELLENT SERVICE. EXCELLENT SELECTION. EXCELLENT EXPERIENCE.
Atlanta, GA • Chicago, IL • Fresno, CA • Harrisburg, PA • Ontario, Canada
MNAPR13.indd 63
4/30/13 2:12 PM
-Robert Archer, CE Pro March 2013
4HE!UDIO8PERTS46SERIESDELIVERSAUDIOSOLUTIONSTHAT
NOTONLYELIMINATECONFUSIONCHAOSANDCLUTTERTHEY
EASILYINTEGRATEINTOHOMESWHEREELEGANCESIMPLICITY
ANDSENSATIONALAUDIOPERFORMANCEISATOPPRIORITY
4HEREDDOTISAHIGHLYREGARDEDINTERNATIONALAWARDGIVENTOPRODUCTSTHAT
SETTHEMSELVESAPARTINDESIGNANDINNOVATION
What they’re saying about the 4TV 2112
h4HESOUNDSWAYBETTERTHANITHASANYRIGHTTOv
hAMAZINGPOUNDINGBASSv
hTHEREISNODOUBTTHISISALUXURYDEVICEv
hIFYOULOVEGREATSOUNDYOUSHOULDGIVETHE46SOLUTIONASERIOUSLISTENv
- Dennis Berger, Technology Tell
h3TARS46MIGHTBEJUSTTHETICKETFORYOUv
h6ERY'OOD3OUNDCLEARANDDISTINCTMIDRANGEANDHIGHSGOODLOWFREQUENCYRESPONSEv
hBASSRESPONSEWASLOWERANDTIGHTERTHAN)EXPECTEDv
h4HESTYLISHTHINDESIGNANDSIZEOFTHECONSOLEMATCHESWELLWITHTHEAPPEARANCEOF,#$
AND0LASMA46Sv
- Robert Silva, About.com
h(EARFORYOURSELFTHEEXCELLENTTONALQUALITIESOFTHE46v
h3ETTINGUPTHEISACINCHv
hWIRELESSSTREAMINGMUSICISBALANCEDCLEANANDDISTORTIONFREEv
h)FYOUDONTWANTTOFALLASLEEPINFRONTOFTHE46ANYMORETHENTAKEACLOSERLOOK
ATTHE46ANDTHENLISTENFORYOURSELFv
- Jochen Wieloch - I-fidelity.net
2112
5122
!PIECEWATTHIGHPERFORMANCECHANNEL-USICAND3URROUND3OUNDSYSTEMhCONSOLEv
!TWOPIECEWATTMUSICAND3URROUND3OUNDSYSTEMINCLUDINGAWIRELESSSUBWOOFERHOUSEDIN
SMOKEDGLASSANDALUMINUMCASINGSDESIGNEDTODELIVERAPOWERFULANDEXCITINGAUDIOEXPERIENCE
For even more stylish audio solutions to offer your customers, be sure to check out AudioXperts’ full line,
including 4TV consoles, Eva eco-friendly, compact music systems, and Korners loudspeakers! audioxperts.com
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MNAPR13.indd 64
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4/30/13 2:12 PM

Eye popping picture quality, staggering size.

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