Marketnews - September 2013

Transcription

www.marketnews.ca Vol. 38 No. 8
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CONTENTS
Volume 38, Number 8, August 2013
6
EDITOR’S NOTE
An End to the Numbers Game............................................................................................................................................ 5
Canada’s Consumer Technology
Business Journal
HOME THEATRE
PUBLISHER
Bob Grierson
While soundbars are cannibalizing the low-end AV receiver market, higher-priced brands are on the
upswing, along with features like networking and control apps.
By Gordon Brockhouse ............................................................................................................................................................... 6
Competitive Edge: How AVR Vendors Position Their Products ...............................................................14
ASSOCIATE PUBLISHER
EDITORIAL DIRECTOR
John Thomson
[email protected], Ext: 225
V.P. SALES
Mary Thomson Grierson
EDITOR
Christine Persaud
Smart, Powerful & Well-Connected: AV Receivers for 2013
16
CUSTOM CORNER
Home Automation: Time to Adapt
24
GOING MOBILE
EDITOR-AT-LARGE
Gordon Brockhouse
ASSISTANT EDITOR
Adam Grant
Lifestyles of the Famous & Fashionable
32
CONTRIBUTING EDITORS
OFFICE MANAGER
Jeanette Bottoni
Bomar Publishing Inc.
701 Evans Avenue, Suite 102
Toronto, ON, Canada M9C 1A3
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Copyright 2013. Marketnews is published monthly by
Bomar Publishing Inc. All rights reserved. The contents of
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part without the written consent of the publisher.
Publications Mail Registration Number 40015963.
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The views expressed by advertisers are not necessarily
those held by the Publisher.
DIGITAL IMAGING
Many of the same equipment and techniques are found across both sports and wildlife photography,
two very popular areas amongst professionals and enthusiasts, alike.
By Peter Burian..............................................................................................................................................................................32
36
40
RETAIL TIPS
The New Cash Register: Mobile POS Changes the Game
It’s no longer about bringing the customer to the sale, but bringing the sale to the customer. We look
at how mobile POS is changing the game, and examine some of the ways retailers can seamlessly
adopt the technology.
By Vawn Himmelsbach ............................................................................................................................................................36
APPLIANCES
What’s Cooking?
With the kitchen as the hub of the home, it’s no wonder innovations like double ovens, induction
cooking, built-in models, and high-tech small appliances are all fueling growth in the kitchen
appliances market.
By Marc Saltzman........................................................................................................................................................................40
SHOP TALK
44
Future Shop hosts 400 sales staff for AV training; Glubes AVU acquires “selected assets” of uberHome;
and Apple confirms participation in charger take-back program, are just a few of this month’s headlines
By Wally Hucker ............................................................................................................................................................................44
MARKETNEWS
48
PM40015963
MARKETNEWS SUBSCRIPTION
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4 MARKETNEWS
Just as in other areas of the tech space, the wireless business, from hardware makers, to accessory
manufacturers, and carriers, are finding value in co-branding, endorsement, and fashion tie-ins to help
boost sales.
By Adam Grant..............................................................................................................................................................................24
Sports & Wildlife Photography Gear
Peter Burian, Vawn Himmelsbach,
Wally Hucker, Ted Kritsonis, Frank Lenk
CREATIVE DIRECTOR
Erik Devantier
The home automation market was once reserved for high-end, high-profit installations. But as the
market moves toward the mainstream, integrators find themselves more often dealing with smaller
jobs, and more of them.
By Frank Lenk.................................................................................................................................................................................16
58
Will LG’s smartphone spell success? .....................................................................................................................................50
Motorola looks for a fresh start with Moto X ....................................................................................................................50
Hands-on preview: Panasonic Lumix DMC-GX7 .............................................................................................................51
App of the Month: Get GO-ing with GO Transit...............................................................................................................51
Personnel Appointments ..........................................................................................................................................................51
Master of his trade: recording engineer Crispin Murray visits Toronto .................................................................52
Distribution Appointments ......................................................................................................................................................52
DayMen brings Italian Puro wireless accessories brand to Canada .......................................................................53
The Secret Shopper is denied a discount...........................................................................................................................53
The Latest in Mobile & Online Retailing ..............................................................................................................................53
Away to the races: Halo Metrics celebrates 25th anniversary ...................................................................................54
Quick Hits: This Month’s New Tech Gear..................................................................................................................... 56-57
FOCUS ON…
After dedicating almost two decades to the Paradigm Group, Mark Aling still feels as passionate
as ever about audio. .....................................................................................................................................................................58
If you haven’t been to
marketnews.ca,
here’s what you’ve been missing...
MARKETNEWS.ca
ONLINE EXCLUSIVES
Weird & WTF?: A 58-year-old British man desperate for a job recently tried to sell himself
on eBay for 99 pence ($1.50) to an employer that
seeks someone with his skill set: “Married with
two children, Steve Sewell states that the bills are
adding up and that although his family thinks that
he’s worth more than 99 pence,‘desperate times
call for desperate measures.’ Even though no one
took him up on this clever, if not mildly sad offering,
Sewell hopes that the publicity he is getting from
the eBay idea will help him land a job.”
Travel Tech: When you’re on the move as
often as our resident travel veteran is, it pays to
have the right pair of headphones at all times:
“Reviews of early Bluetooth speakers and headphones reported that sound quality was severely
compromised. But judging by the superb Logitech
UE (Ultimate Ears) 9000 ‘phones I tried recently, the
technology has improved enormously. They are not
branded as active noise cancelling headphones, but in fact they do, like the Bose products, use
electronics to produce offsetting sound that cancels unwanted ambient noise.”
GADGET TALK BLOGS
The Verizon effect: The Canadian telecommunications industry is in a twist of late over
the potential of the U.S. carrier entering Canada. Christine Persaud examines the issue to
inform consumers what this deal may or may not mean for them: “If Verizon is serious about
entering the Great White North, the Canadian Government certainly looks to be supporting
the company, standing firm on its current foreign investment rules. Many consumers are eager
to believe that any new player in the country is a good thing; we’ve been dominated by the Big
Three for far too long. More competition equals better deals is the belief. But does it really?”
Are CDs Dying? Our resident audiophile Gordon Brockhouse looks at the many ways music is available to us
nowadays and examines if audio CDs are now a dead
entity: “For over three years, Apple’s iTunes store has been the
world’s largest music retailer. Now that Apple has announced
an online radio service to compete with the likes of Pandora
and Spotify, it raises the question: do we need physical music
carriers like CD anymore? Or to put the question more succinctly, are discs dead? From an
audiophile point-of-view, the answer is ‘yes, no and maybe,’ with lots of ‘ands’ and ‘buts.’”
REVIEWS
The Griffin PowerDock 5 expands the
line beyond just Apple devices, with
five USB ports for simultaneously
charging up to five portable devices, all
lined up neatly in a row. But does it live
up to the promise, both in functionality
and design?
DAILY NEWS
YouTube has a wide collection of videos that
appeal to different crowds. However, the recently
launched BoooTube is the place where the best
of YouTube’s worst videos can be seen.
www.marketnews.ca
DROP BY DAILY for breaking news, exclusive features, blogs and video footage of industry events, including the upcoming CWTS
and CEDIA EXPO 2013. Please send your comments, concerns, or questions regarding the
Website to:
EDITOR’S NOTE
An End to the Numbers Game
The specification race is getting out of hand. Just like the digicam megapixel and flatpanel TV sizing races of the mid-2000s (with new variations in those industries that
still exist today), we’re now seeing races among smartphone manufacturers for the
highest-resolution screen, or among case makers for the thinnest design, or among
portable speaker manufacturers for the lightest weight.
In many cases, the specs are important indicators toward a product’s performance.
There are marked differences between a standard-definition and a 1,080p TV, or a
speaker with more power or bass than another. Ditto when it comes to a smartphone
with screen surface that takes up 75% of the front of the phone versus just 64%. And
while promoting that a TV is just a few millimetres thinner than others might seem
like it’s all about the hype, that can actually have real world, practical advantages with
regards to transport, cost, manufacture, and installation, just to name a few. And let
me be clear: companies continually keeping one another on their toes by coming up
with new ideas, and improving on existing ones, is necessary in this business, and what
helps to keep it thriving.
But the fact that a Bluetooth speaker is the “smallest in the world” by a tiny fraction, or
that a case is ever-so-slightly thinner than another, likely holds zero value for the average consumer, and does nothing but boost a company’s marketing prowess.
“Do I notice the difference between two-billion and four-billion colours?” one industry
member from a distribution company asked me rhetorically, when citing some of the
questions he often poses to himself.“Do I notice a 0.2 gram difference on the weight of a
phone? As buyers have become less experienced, they work with a checklist to compare
products, and a quick glance at the basics just doesn’t tell the whole story.”
Another industry rep commented that this “numbers game;” the strategy to quantify
everything amongst manufacturers; is “one of the biggest reasons our industry is going
through its pains. With the steady tendency to commoditize every aspect of our industry, manufacturers are making a bed for themselves they will not want to sleep in.
“The career salesperson,” he added,“who used to be able to communicate why a
customer should spend the extra dollars to buy a better quality product is becoming
increasingly difficult to find… because it has become increasingly difficult to make a
good living doing so.”
Does it work? Would anyone buy a slightly less valued brand because the product is
one or two spec numbers over (or under) a competitor’s? Or would they choose one
brand over another, with both on equal footing otherwise, for sheer bragging rights?
Does this hold any real value other than for grabbing attention?
The aforementioned rep feels that many manufacturers have just “succumbed to the
idea that if they don’t have the latest feature, regardless of its necessity or feasibility,
their product will be conspicuous by its absence.”
Participating in this spec race must count for something, or else companies wouldn’t
spend ridiculous amounts of money to make what some might call ridiculously pointless claims. But one must wonder if companies spent nearly as much time focusing on
real-world useful features of a product as they do on one-upping the competition, that
consumers might see far more innovation.
Thanks for reading,
— Christine Persaud
[email protected].
MARKETNEWS MOBILE APPS can be downloaded at www.marketnews.ca
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MARKETNEWS 5
AUDIO VIDEO
Smart, Powerful &
Well-Connected:
AV Receivers for 2013
By Gordon Brockhouse
AV receivers have long been the cornerstone of the audio
side of the home theatre market. The category was practically created by the launch of DVD in the 1990s, then
reinforced by the flat-panel boom in more recent years.
AVRs have been a solid category, with solid year-over-year
growth, for almost two decades.
Now, AV receivers are showing signs of being a mature,
even stagnant category. “Like the rest of the CE industry,
AV receiver sales are following flat panel,” comments
Andrew Murphy, Director of Marketing at Pioneer Electronics of Canada, Inc. “They’re going to move closely with
flat-panel sales.”
According to The NPD Group, Inc., Canadian retail sales
of AV receivers fell 13% during the 12 months ending
June 30, 2013 compared to the same period a year earlier
in unit terms; dollar revenue was down 10%. Not only
are sales declining, but the rate of decline seems to be
accelerating. For the 12 months ending June 30, 2012,
Canadian unit sales were down 3%, and dollar sales down
6%. The previous year, unit sales grew 5%; while dollar
volume shrank 1%.
Bright Spots
That sounds a little grim, until you look deeper. For one
thing, the average selling price for AVRs, which now stands
at $396, is 3% higher than it was in the 12 months ending
June 30, 2012.
An important reason for the higher ASP was that most
of the decline in unit AVR sales occurred in entry models.
Entry-level AVRs, those priced between $200 and $299,
account for 28% of sell-through volume, notes Mark Haar,
Director of Consumer Electronics at NPD Canada. Unit
The top model in Sony’s core lineup of AV receivers, the STRDN1040 features app control, AirPlay support, built-in
Bluetooth and 4K upscaling.
sales in that price band fell 25% in the 12 months ending
June 30, 2013 compared to the same period a year earlier.
But other price segments are growing. Unit sales of AVRs
priced between $400 and $499 grew 4%. This segment
accounts for 14% of unit volume. AVRs priced $500 and
higher account for 39% of category revenue, Haar notes,
and there are bright spots there as well. The $800-$899
segment, which represents 1.6% of unit volume, enjoyed
unit growth of 166% for the 12 months ending June 30,
2013. The $1,000-plus market, which accounts for 2.7% of
category volume, grew by 31%.
“Other price bands above the $500 price point showed
fairly significant declines,” Haar reports. Some of the big
gains and losses in $500-plus AVRs can probably be
explained by shifting models and prices. If a really hot
receiver priced at $949 is replaced by a model priced at
$849, we’ll see a spike in the $800-$899 band and a dip
in the $900-$999 band.
Jeff Earl, Director of Sales at Lenbrook Canada, says
sales of AVRs from premium brands like NAD are holding
up well. “For premium receivers, the market is still stable,”
he says. “The entry level is starting to slow down, but we
don’t see this in our position. Many consumers already
have an AVR, and don’t see a reason to buy a new model.
But enthusiasts will continue to upgrade.”
Paul Belanger, Product Manager for DMH Global (parent
company of Denon and Marantz), says price is becoming
a bigger factor with AVRs, just as it is with other categories. “The market is slightly down in both unit and dollar
terms,” he states. “And we’re seeing a shift to lower-priced
products. For Denon, the sweet spot used to be $1,299
to $1,599. Now the hottest sellers are $599 to $699. In
2013, price will be the number-one driver in AVRs.”
Haar highlights one important trend affecting the low
end of the AVR market: the explosive growth in soundbars
(which will be the subject of a feature in the next issue
of Marketnews). “Soundbars are growing in leaps and
bounds,” Haar says. “A lot of consumers are choosing an
easier option than receivers. Home theatre in-a-box is also
down. Speaker sales are down.”
In the past year, the consumers who are now buying
soundbars would likely have chosen an HTiB system or
entry-level 5.1-channel receiver and speakers. Comments
Gerry Zegerra, Technical Manager for Onkyo Canada: “I
believe the receiver market is declining slightly. When
they buy a TV, a lot of people are being pushed to buy a
soundbar that may be bundled by the TV manufacturer.
This bypasses all the benefits of a receiver.”
Overview
• While AV receiver sales are down for 2013, most of the declines are occurring in entry-level models. Many
consumers who would have bought AVRs in previous years are opting for soundbars.
• Higher price bands are holding up well. Average selling prices for receivers are actually up slightly.
• Networking is an attractive feature in AV receivers, not just for entertainment features like AirPlay, but also
for compatibility with remote control apps.
• Control apps on AV receivers make multi-zone applications much easier to use. This can pave the way for
additional sales of speakers for secondary zones.
6 MARKETNEWS
Michael Neujahr, National Manager, Event Marketing &
Training, Sony of Canada Ltd.: “AirPlay is important. You’ve
got to be there. A fair number of consumers are aware of
these features, and have them on their checklist.”
AUDIO VIDEO
Onkyo’s TX-NR929 is a THX-certified 9.2-channel AV receiver with Zone 2 HDMI output for sending HD video to a
second zone, Wi-Fi and Bluetooth.
Gerry Zegerra, Technical Manager, Onkyo Canada:
“Network features like Internet radio are very attractive
for ethnic markets, because they allow people to listen to
music from their own country.”
Remote Control
One of the most important of these benefits is networking,
which is rarely offered on entry-level models (though there
are exceptions, such as Harman/Kardon’s AVR 1510, which
retails for $369.) But it is commonly available on stepup models. Examples include Denon’s AVR-E300 ($449
MSRP), Pioneer’s VSX-823 ($379), and Yamaha’s RX-V475
($449 MSRP).
Networking features are likely a major reason for the
continuing strength in the $400-$499 segment. These features include AirPlay support, Internet radio, and support
for subscription services like Pandora and Spotify (admittedly less relevant for Canadian consumers, since the most
popular subscription services aren’t available here).
Network connectivity offers another benefit, arguably as
important as the ability to stream music from other devices
and the Internet: control via an app running on a smartphone or tablet. Using a touchscreen as a remote control
is more intuitive and inviting than a standard clicker;
moreover it makes it easy to access advanced features that
can be challenging to use with a standard remote. Internet
radio is a good example.
“The receiver market has really matured in the past
couple of years, and control apps now seem to be the big
buzz,” comments Paul Bawcutt, Key Accounts Manager and
Product Specialist for the AV Division of Yamaha Canada
Music Ltd.
Bawcutt reveals some compelling numbers to back up
his assertion. In August 2012, 6,800 Canadians had down-
loaded Yamaha’s AV Controller app. By July 2013, that
number had grown to 22,000, which means that the app
was downloaded by 15,000 Canadians in less than a year.
In North America, there have been “well over 100,000
downloads,” Bawcutt says. “We’re a relatively small player.
When you consider the audio business, those are pretty
big numbers.
“This should definitely be shown at retail,” he adds, “but
with the state of in-store Wi-Fi networks, that’s not always
possible. This is a problem that’s not going to go away.
Many dealers are adding Wi-Fi infrastructure, but it’s like
the early days of HDMI when dealers had infrastructure
for component video, but not HDMI.”
To address the issue, Yamaha, along with other AVR makers, include a demo mode on their apps. “We think we have
the best demo mode in the industry,” Bawcutt states. “It
gives a 95 per cent experience of what it’s like to use the receiver: powering it on, searching for music, activating zones.”
Apps from Everyone
Control apps are available for other receiver brands as
well, including Denon, Marantz, Harman/Kardon, Onkyo
and Integra, Pioneer, and Sony. Smaller, audiophile-oriented brands are also developing apps.
Arcam, for example, includes Ethernet connectivity on
its new receiver lineup for 2013: the AVR380 ($2,099),
AVR450 ($3,099) and AVR750 ($6,199). It offers two iOS
apps: Arcam Remote, for controlling the receiver’s functions with an iPad, and Arcam Songbook, for streaming
music from an iOS device to the receiver (the second app
also works with some older Arcam AVRs).
In April, NAD Electronics launched an iOS app for its
AV receivers. “Network connectivity is very important for
control,” Earl notes. “We don’t have a schedule for Android,”
he adds. Like other vendors’ control apps, the NAD Remote
app lets users select sources, adjust volume, select radio
Rated at 7x100 watts, Harman/Kardon’s 7.1-channel AVR 2700 features AirPlay support,
4K passthrough and upscaling, eight HDMI inputs, and a new digital power supply that
reduces weight and power consumption while maintaining output.
8 MARKETNEWS
stations, and activate zones. They can also perform set-up
functions, such as naming sources and operating the receivers’ Audyssey room-correction features, from an i-device.
Anthem is announcing new AV receivers at CEDIA, and
shipments will begin shortly afterward. The MRX-310,
MRX-510 and MRX-710 will all have Ethernet ports, which
the current models do not have. The intended application
is not network entertainment, but rather control. The new
receivers are now IP-controllable over a home network,
with support for AMX, Control4, Crestron, Elan and Savant
home automation technology. iOS and Android apps are
“under development,” says Nick Platsis, Product Manager
for the Anthem division of Paradigm Electronics Inc.
“We had AirPlay on our roadmap, but took it out,”
Platsis adds. Customers who want network entertainment
features can get them by connecting an external media
adapter like Apple TV, he notes. The new receivers have
optical input for Zone 2, so that listeners can route digital
audio from an Apple TV to a second zone.
Other audiophile brands take a similar approach. While
their latest AVRs have Ethernet ports and work with remote
apps, neither NAD nor Arcam have AirPlay support on
their AVRs (although Arcam supports streaming from iOS
devices with its Songbook app).
“Our focus is on performance rather than duplicating
features that are built into other home theatre components
like Blu-ray players, smart TVs and media streamers,” Earl
comments. “Our receivers are built to power your home
theatre from these sources. Our amplifiers are extremely
robust. They’re very powerful compared to most receivers
on the market. We rate them with all channels driven at
once. The rating will not drop as you load up the power
supply. This is very demonstrable, especially with music
that listeners are familiar with. Movie soundtracks can
mask differences; but people know what vocals, instruments and dynamics sound like. To music listeners, audio
quality is very important. Music is a key differentiator.”
The top model of a new line of receivers that Anthem will launch at CEDIA, the
7.2-channel MRX-710 has an overhauled video section, more advanced roomcorrection, IP control and robust power supply with toroidal transformer.
AUDIO VIDEO
Denon’s AVR-X2000 network receiver has many features aimed at the custom channel, including IP control, IR in and out, RS-232 connectivity, and compatibility with all
major third-party control systems.
Network Entertainment
Marantz’s NR1604 receiver is a slimline AV receiver with many of the features of a fullsize model, including seven HDMI inputs, 4K upscaling, component video switching,
AirPlay support, app control and Class AB amplification.
the Zone
Mainstream vendors maintain that building network
entertainment features right into the receiver confers major
benefits. As discussed in our last issue (“Bringing Content
from PCs and Mobile Devices into the Home Theatre”),
many AVR vendors are adding connectivity features that
enable streaming from smartphones and tablets, both iOS
and Android models. As Murphy observes, “Smartphones
and tablets are becoming control devices, but they’re also a
portal for other content. The true value of having AirPlay in
the receiver is offering volume, source selection and access
to content on the device, in one easy-to-use interface.”
“AirPlay is important,” agrees Michael Neujahr, National
Manager, Event Marketing and Training at Sony of Canada
Ltd. “You’ve got to be there.” Having access to other network
services is also important, he adds. “I can’t live without
Music Unlimited,” Neujahr says, referring to Sony’s music-
subscription service, which is supported on a wide variety
of Sony AV components, including its AV receivers. “A fair
number of consumers are aware of these features, and
have them on their checklist. On the other hand, we have to
make sure store staff are aware of these key features.”
Onkyo offers control apps for iOS, Android and Kindle
Fire. “With our control app, you can send anything musical that’s on the device to the receiver,” Zegerra notes.
“But awareness of these features isn’t nearly as high as
we would like. Dealers have to bring these features to
people’s attention.” For some customers, network features
like Internet radio can be powerful inducements. “They’re
very attractive for ethnic markets, because they allow
people to listen to music from their own country.”
Dealers also have to make sure their customers can
actually use their features at home. “Most people don’t
have an Ethernet drop where their receiver will go,” he
elaborates. “That’s why we offer a Wi-Fi option.”
In April, NAD launched an iOS app for its network AV
receivers that allows users to select sources, adjust volume, choose surround modes and activate zones from
an iPhone. They can also perform set-up functions, such
as naming sources and operating the receivers’ Audyssey room-correction features.
The entry model in Yamaha’s premium Aventage series of AV receivers for 2013, the RX-A730 features robust construction, an aluminum front panel, 4K video processing and a wide range of network connectivity functions.
10 MARKETNEWS
Network connectivity and mobile apps deliver another
benefit: they make multi-zone features more usable and
more attractive. Most receivers with seven or more channels can deliver audio to a second zone, and many can
deliver video as well. But multi-zone is used by a small minority of purchasers. In most cases, the sixth and seventh
channels are unused.
“I’ve done about 10 installations for buddies,” says Jason
Zidle, Director of Marketing and Product Development for
Erikson Consumer. “Almost all of them bought 7.1-channel
receivers, but they only use 5.1 channels. Precious few are
using the extra channels for effects or multi-room.”
Zegerra says the number of channels being used
depends on the system’s location. “The default for most
living rooms is 5.1,” he says, “but if it’s going to be in a
dedicated home theatre, it may be 7.1 or 7.2, or even 9.2.
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AUDIO VIDEO
Yamaha’s AV Controller app is available in smartphone
and tablet versions for both Android and iOS. It includes
a demo mode that gives customers a good experience
of its capabilities.
Available in iOS and Android versions, Pioneer’s iControlAV2013
app provides a rich array of features, from basic functions like
volume control and source selection to advanced functions like
custom equalization and Internet radio control.
Arcam’s new AVR380 receiver has network features, such as app control and network
streaming, along with audiophile-oriented refinements like jitter reduction on digital
inputs.
But with seven channels, there’s also the option for sending two-channel audio to a different zone.”
Adds Pioneer’s Murphy: “Consumers place high value
on the flexibility of 7.1, perhaps for additional zones.” Earl
believes most seven-channel receivers are being configured to deliver 5.1-channel sound in the main room, and
two-channel to a second zone, typically an outdoor area
or the kitchen. “The second zone is quite important to
consumers,” he says.
Belanger estimates that 15 to 20% of customers
purchasing seven-channel AV receivers use the extra
channels, either for multi-zone or for seven-channel
theatre. “The multi-room capabilities are being used,” he
elaborates, “but not so much with cash-and-carry business.
There are a lot of people with outdoor speakers on their
deck, and these are being powered by the receiver. It’s
probably close to the number doing seven-channel.”
Higher-end AV receivers from the major vendors also
allow HDMI video to secondary zones. And some top-end
models, like Pioneer’s forthcoming Elite SC-79 and In-
12 MARKETNEWS
The new ArcamRemote app for iPad allows users to
control the advanced audio and video features of
Arcam’s new AV receivers for 2013.
Pioneer’s top-of-the-line receiver, the Elite SC-79, will be introduced in Canada in
September. The THX Ultra 2 Plus-certified 9.2-channel network receiver features multizone HDMI and HDBaseT connectivity, which allows 4K video to be sent to a remote
zone over Ethernet.
tegra’s DTR-60.5, have HDBaseT terminals, for distributing
HD video and audio to secondary zones over Ethernet.
Mobile apps make all this functionality much more accessible. “In the past, multi-zone was there because it had
to be,” observes Yamaha’s Bawcutt. “But with networking,
it’s a real-life tangible feature that people are using. Ten
years ago, the biggest problem was controlling the system
from secondary zones. You needed IR repeaters and extra
remotes. Now you can to it from a mobile device, and
we’re seeing more traction. This is translating into return
sales for extra speakers.”
Making it Simple
Apps may well be the secret sauce that helps vendors
address a key challenge: ease of use. A mobile app makes
it easier to find the functions you want, without having to
navigate through irrelevant features. AVR makers pack an
incredible amount of sophisticated technology into their
black boxes; but that can make them forbiddingly com-
plex to set up and use.
“There are many strides that can be made in terms of
user experience,” Bawcutt maintains. “How do you move a
customer from a soundbar to better sound without penalizing
the experience? You have to make it as simple as a soundbar.
There’s a great opportunity here.”
Adds Zidle of Erikson Consumer:
“People will eventually understand
the limitations of soundbars and
soundpads. AV receivers are still
an important category. They’re
poised for a wonderful recovery.
We just need companies to appeal
more to end users than engineers.
We have to provide a product that
people can use easily.” mn
Available for iOS and Android, the Marantz Remote app
lets users control a wide range of functions, such as source
selection, volume and zone control, over a home network.
AUDIO VIDEO
Competitive Edge:
How AVR Vendors Position Their Products
On the surface, AV receivers look much the same: big black boxes with knobs and a display on front, and a load of jacks on the back. Their basic functions are similar: switch video
signals, process and amplify the sound, drive the speakers. But there are important differences under the hood. Here’s what AVR manufacturers say about their 2013 AV receivers.
ANTHEM:
DENON AND MARANTZ:
YAMAHA:
At CEDIA, Anthem will announce a refresh of its receiver
lineup. Compared to their predecessors, the MRX-310,
MRX-510 and MRX-710 have sleeker cosmetics, with
fewer buttons on the front panel. “The traditional Anthem
buyer wanted everything controllable from the front panel,”
says Product Manager Nick Platsis. “Now people want control to be more menu-driven.” To that end, the front panels
now have six buttons, plus a power switch and cursor pad.
Video processing has been “overhauled,” Platsis adds.
There are more HDMI inputs, and all have 4K upscaling.
The protection circuits have been changed to accommodate difficult loudspeaker loads. The new models also
have Ethernet ports, allowing IP control from the key
home automation systems, as well as by forthcoming
iOS and Android apps.
On the new models, the Ethernet port allows Anthem
Room Correction (ARC) settings to be uploaded over a
home network, rather than a slower RS-232 connection.
The new receivers also have more powerful digital signal
processors (DSPs) than their predecessors, allowing for
more complex room-correction filters and more finely
tunable crossover settings. “The gap between our receivers
and preamp/processors in room correction is narrowing,”
Platsis says.
Uniquely, ARC setup is done using a Windows PC, using
a supplied application and calibrated microphone, then
uploaded to the receiver. “Compared to the DSP in the
receiver, a PC has more processing power for analyzing
input and building the filter,” Platsis explains. “It’s much
more precise.”
The emphasis on these two lines is different, says Paul
Belanger, Product Manager for DMH Global.
“For Denon, it’s a technology-for-the-dollar story.
We’re going to be the first to market with a lot of the
latest technology. We were the first with AirPlay, and
with Audyssey. It’s also a custom integration story. We
play nice with all the third-party controllers. Nobody
does this as well as we do.”
Key Denon models for 2013 include the AVR-X2000
and AVR-4520. Belanger calls the AVR-X2000 “our
best bang-for-the-buck CI piece.” It has IP control, IR in
and out, RS-232 connectivity, and compatibility with
all major third-party control systems. “Our flagship
receiver, the AVR-4520, is the only surround sound receiver still produced in Japan,” Belanger adds. “Many of
its technologies trickle down to lower-priced models.”
Belanger says the Marantz brand “is all about audio
quality, the best sound per dollar, and also about connectivity. All full-size receivers have 7.1-channel analog
in, full pre-out, and component-video switching. We’re
fully supportive of the legacy connectivity we see
falling away from other brands, including Denon. It’s
also a cosmetics story. People gravitate to the looks of
Marantz versus standard black boxes.”
A key Marantz receiver for 2013 is the NR1604
slimline receiver. “It has Class AB amplification, seven
HDMI inputs and component video,” Belanger says.
“It’s a full AVR in a small chassis.”
Paul Bawcutt, Key Accounts Manager and Product
Specialist for Yamaha Canada Music Ltd., says Yamaha’s involvement in music and professional audio
spills over into its AV receiver business. “The foundation of our company is music,” he states. “We sell one
out of four musical instruments worldwide. We have
our hand on every facet of sound. You could listen to
a song on an iPod through a competitor’s AVR, and
Yamaha would be somewhere in the recording chain.”
Asked for a concrete example of how this experience applies to its AVRs, Bawcutt cites DSP soundfield
creation, which Yamaha began offering in 1986. “This
came from our experience in acoustic venues all over
the world. We still have tremendous engineering
power. Every receiver comes out of a Yamaha factory,
from our $349 entry model to our Aventage models.
We use our own DSP engine, which is built to work
with our proprietary room-correction system. You can
predict reliability better when you source the technology yourself.”
Key models for 2013 include the RX-V675 ($599), a
7.1-channel network receiver with 4K upscaling and
MHL input. “We also do well with our RX-A730 (the
lead model in the premium Aventage series), and our
entry-level network piece, the RX-V475,” Bawcutt says.
NAD:
ONKYO AND INTEGRA:
SONY:
This fall, NAD is refreshing two of its four AV receivers. The T748 ($700), NAD’s best-selling model, gets a
powered second zone and becomes the T748 V2. The
T757 gets some internal performance upgrades and
becomes the T758 ($1,300). The T777 ($3,200) and
T787 ($4,200) continue.
Jeff Earl, Director of Sales for Lenbrook Canada, says
NAD emphasizes performance as opposed to network
features (see main story). But another unique feature
found on the top three models is Modular Design Construction (MDC). MDC lets owners add new features to
their receivers by swapping out MDC modules. NAD has
added support for new versions of HDMI, new Dolby
and DTS surround sound codecs, and 3D pass-through
via MDC modules. Costs typically range from $500 to
$750.
In the future, MDC could be used to add 4K passthrough and up-scaling, and support for future Dolby
and DTS codecs. “You don’t have to worry about obsolescence,” Earl comments.
Distribution is one of the main differentiators between
these two affiliated brands, says Gerry Zegerra, Technical
Manager for Onkyo Canada. “Onkyo was created to provide high-quality sound for everyone. It has conventional
distribution. Integra is more for custom installation, even
though it’s built in the same factory as Onkyo. You won’t
find Integra on the Internet. We’re very protective of that.”
Integra receivers have features designed for the CI
market. “You can set the receiver up on a PC, rename
sources, configure channels, and lock out certain functions,” Zegerra explains. “Settings are uploaded over a
home network via the Ethernet port. This is very useful
for cookie-cutter installations of a package the dealer
frequently sells.”
One of the key Onkyo receivers for 2013 is the
7.2-channel TX-NR727, which has THX Select 2 Plus
certification. “This gives customers assurance that we’ve
fulfilled THX’s requirements,” Zegerra says. 2013 marks
the 20th anniversary of the THX program. Another key
model is the TX-NR929, which features dual-zone HDMI
output.
In the CE marketplace, Sony is probably best known for
its TV and imaging products, and of course its PlayStation gaming console as well. But audio is also a key
category, says Michael Neujahr, National Manager,
Event Marketing and Training for Sony of Canada Ltd.
“Internally, we look on audio as just important as TV
and digital imaging, Our core focus is mid to high-end
product. We’re taking advantage of Sony’s core expertise in movie and music production, right down to home
playback, and our vision of how it’s supposed to sound.”
A key model for 2013 is the STRDN1040 ($750). The
7.2-channel network receiver is the top model in the
core Sony line, offering many of the refinements of the
upscale ES series, which has more limited distribution.
The two ES-series models add capabilities aimed at the
custom channel, notably IP control.
ARCAM:
HARMAN/KARDON:
This enthusiast-oriented U.K. brand has refreshed its AV
receiver lineup for 2013. There are three models; 4K
video support is now offered on the top two. But audio
is the foundation of Arcam’s reputation, and the firm
continues to refine its designs. The Class G amplifiers
in the flagship AVR750, which is rated at 7x120 watts
(20Hz-20kKHz, 81, 0.02% THD, two channels driven),
operates in Class A mode up to 22 watts. “It will sound as
good as it possibly can for the vast majority of listening
time,” says Jason Zidle, Director of Marketing and Product
Development at Erikson Consumer, Arcam’s Canadian
distributor. The AVR750’s predecessor, the AVR600, ran
in Class A to 15 watts.
“GreenEdge” is one of the calling cards for HK’s AV receivers for 2013. The new models now have digital power
supplies, resulting in lower weight and lower use of precious metals, Zidle says. “The old school equates sound
with weight. This is a lighter product that sounds as good.
There’s not the potential power sag that you have with a
linear power supply. HK has a long heritage of amplifiers
with high current output that don’t crap out as earlier as
competitors.”
While the 7.2-channel AVR 3700 ($1,199) is the flagship
of HK’s 2013 line, Zidle calls the 7.1-channel AVR 2700
($899) “the star of the series.” Rated at 7x100 watts
(20Hz-20kKHz, 81, 0.02% THD, two channels driven),
its features include AirPlay support, 4K pass-through and
up-scaling, and eight HDMI inputs.
14 MARKETNEWS
PIONEER AND PIONEER ELITE:
In September, Pioneer Canada will launch its top-of-theline SC-series models in its premium Elite sub-brand.
“The most important differentiator is our Class D3
amplifier technology,” says Andrew Murphy, Director of
Marketing. “All our SC models have tremendous power
output with lower power consumptions. They’re the only
Class D amplifiers to receive THX certification.
“Another key differentiator is our video processing,
following in the footsteps of our flat panel experience,”
Murphy continues. “All models from the Pioneer VSX1123 and up have 4K up-scaling, plus a suite of video
settings modeled from those on our Kuro displays. For
example, Triple HD NR improves the quality of compressed video from sources like YouTube and Netflix.”
2000
TX-DS5989
1996
2002
TX-NR900
1997
TX-DS939
1995
HTS SYSTEM-2
1994
2004
TX-SV828THX
TX-SV919THX
TX-NR1000
2006 HT-S990THX
2009 TX-NR5007
2011 HT-S9400THX
2010 TX-NR5008
2011 TX-NR5009
2013
TX-NR929 9.2-Channel Network A/V Receiver
Contacts I Territory 51 Canada Inc. I [email protected] I 416 486-1292
www.onkyo.ca
Time to Adapt
CUSTOM CORNER
By Frank Lenk
Home automation is an industry at a crossroads. Business is
booming, but it’s a different business than it used to be just
a few years ago. Suppliers of automation systems, and the
installers who work with them, are under pressure to adapt.
Formerly the preserve of the super-wealthy, home automation has become affordable for the average consumer.
That’s brought a welcome influx of new customers. But it
has also brought along with it the need to manage a larger
number of smaller, less-profitable jobs.
At the same time, consumers have come to expect that
home controls will work with their shiny new smartphones
and tablets. Automation vendors have had to hurriedly
develop mobile apps, while giving up a lucrative chunk of
business in dedicated, proprietary control panels.
Going forward, the automation business seems likely to
transform still further. Proprietary ecosystems will be under
pressure to open up and inter-operate with an expanding
universe of devices. That will create more new opportunities,
but could also raise concerns of eventual commoditization.
To get a handle on all this, we spoke with a wide selection of companies in the home automation business,
including both equipment suppliers and installers.
Market Growth
One thing everyone agrees upon is that the business
is growing like never before. “People are more open to
having technology in the home,” observes Delia Hansen,
Solutions Manager, Residential, with Crestron Electronics
Inc. “It’s a big swing from four or five years ago.”
The surge in demand is being felt even in smaller towns.
With the recent economic boom in the prairies, Weyburn
has become one of the fastest-growing communities in
Saskatchewan, surpassing 11,000 in population.
“Our new houses are not being built by doctors and law-
yers,” says Jeff Chessall, Owner, New Age Electronics/AVU.
“They’re 25- to 50-year-old people.” Some have money
working in the oil business. Some are farmers. But they’re
a new generation, he says, with money to spend and high
expectations as far as technology. (New Age installs both
Control4 and URC home automation systems, and operates a retail electronics store.)
Customers are not only more numerous, they’re approaching home automation from more different angles.
“About five years ago, a good part of our systems were AV
only,” says Joel Bouvier, Advanced Residential Technology
Manager, Advance Electronics Ltd., an electronics retailer
and automation installer based in Winnipeg, MB. Now he’s
seeing a lot more demand for security cameras.
“AV gets them in the door,” says James Ashton, Partner,
Toronto, ON-based Ashton Martyn Automation. “Then they
start to see the potential. A lot of people just want to know
that the kids are home. Or what time the dog-walker left,
and what time they came back.” (Ashton Martyn installs
mainly Control4 systems in the Greater Toronto Area and
surrounding “cottage country.”)
“Audio seems a given at this point,” observes Brad
Middleton, Savant Canadian Brand Manager with Evolution Home Entertainment Corp., which handles the Savant
Systems automation line in Canada. He sees consumers
increasingly being motivated by lighting control, or HVAC.
An automation system can cut costs, and provide detailed
feedback “on a load-by-load basis,” correlated with factors
such as outside temperatures.
Interest in lighting seems to be increasing as well. “Lighting is a big hook,” says Marcel Mukerjee, Senior Area
Manager for Canada with Control4 Corporation. “We see
about 50:50 AV versus lighting.”
Jay Hough, Principal/Sales Manager, North X NorthWest
Sales and Marketing Inc., which distributes the Vantage
Controls automation line, also sees lighting as “easily the
main draw” these days. After that, it’s AV and security.
“Everything is scalable,” says Jean-Pierre Xenopoulos,
Director of Sales, AMX Canada. Customers can start with a
basic AV package, then add lighting, or HVAC. Security is
also important. Xenopoulos points out that this is not just
about safety, but also about privacy, an increasing concern
in the digital age.
Chessall reports that even in a smaller prairie town, security is a concern. “You still get the guys out of Regina who
come down and break into vehicles or houses.”
New types of components continue to appear. For example,
Kirk Kohn, Senior Sales and Training Specialist, Staub Electronics Ltd., mentions things like moisture sensors, to warn
against flooding. Or a pressure sensor that can confirm the
garage door is shut. (Staub is the exclusive Canadian distributor for the URC Total Control automation line.)
Intelligent thermostats have received some attention
lately, especially the Nest Learning Thermostat, from Next
Labs Inc. It’s a field that’s evolving on multiple fronts. “AMX
has had thermostats for over six years,” notes Xenopoulos.
“They can now display weather forecasts from the Internet.”
Sometimes, demand is driven by specific circumstances.
Mukerjee points to the major storm-water flooding that hit
Overview
• As home automation becomes more “mainstream,” integrators find themselves dealing more often with
smaller, less profitable jobs.
• Integration of security, lighting, and HVAC control is now becoming more popular, as is the inclusion of
smartphones, tablets, and partner apps in the home control space.
• The growing do-it-yourself retail market is opening more consumers up to the idea of automation, but
integrators of full-scale systems are skeptical, noting limitations.
• Issues with interoperability among devices prevail, with a number of proprietary ecosystems and dueling
standards remaining in the market.
16 MARKETNEWS
Delia Hansen, Solutions Manager, Residential, Crestron
Electronics Inc.: “When we first came out with the mobile
app, dealers were actually mad at us. They were scared.
But we found that we sold just as many in-wall touch
screens that year as we did the year before.”
Photo: Middle Atlantic
Home Automation:
CUSTOM CORNER
Brad Middleton, Savant Canadian Brand Manager, Evolution Home Entertainment Corp., notes that without proper
integration of automation, a smartphone user would have to jump from app to app, degrading ease-of-use.
Toronto recently. “A lot of water sensors were purchased
in just the last few weeks,” he said at the time we spoke
earlier this summer.
Overall, Jim Peebles, Partner, Product Solutions Group,
which handles the Elan Home Systems line, sees the
industry, now more than ever, evolving from an emphasis
on AV, to a broader approach.
“We were all audiophiles in the past. We used to be a lot
more media-centric. Now we’re more integration-centric.
We need to know about a lot more different disciplines.”
The New Low End
As the cost of automation technology falls, a new low-end
business has developed. Managing this wider spread of
jobs is a challenge for installers.
“The sky is definitely the limit,” confirms Hansen. “We’ve
done entire islands. On the other hand, you can now get
lights and thermostat control, with a mobile app, for about
$5,000. For $16,000 or $17,000 you can have five or six
rooms of audio, with speakers and a multi-zone distribution system.”
Hansen points out that home automation systems will
typically run the same kind of price as a kitchen reno:
maybe 5% of the total value of the home.
Ashton sees $3,000 as a reasonable entry point, covering a few lighting controls, a base controller and some
remotes. A good condo package might start with TV and
stereo control, two or three lights, and thermostat. A wireless music bridge is a nice add-on, allowing audio to be
streamed from any phone without a dock.
Kohn sees customers really looking for that expandability, especially at the entry level. Today’s modular
automation systems let them start with a basic AV system,
then add outdoor sound, security, or whatever. A small job
today can open the door to long-term repeat business.
Even in a smaller town, the spread of jobs is consistent.
“A lot of our systems end up in that $5,000 to $10,000
range,” says Chessall. “That’s where our comfort level is.”
But he adds that many homeowners do want to automate
absolutely everything, and it’s “not uncommon” for New
Age to do $50,000 projects.
Architronics reports an escalation in the number of jobs
it handles, from around 10 projects a year a decade ago,
to nearer 200 a year. A quarter-million dollars used to be
“a nice starting point,” recalls Matthew Grossman, CEO,
Architronics Inc. Today, he says, those six- and sevenfigure jobs are still there, but there are many more down
in the lower brackets. (Based in Markham, ON, Architronics
installs a variety of automation systems, currently focusing
mainly on Savant.)
Peebles emphasizes that home automation is still a fairly
18 MARKETNEWS
small business in total, so installers need to cover the
spectrum of jobs, but realizes that moving ‘down-market’
does raise some concerns. “As the price of the product
decreases, how do you manage your exposure on the
installation?” Installers need to be sure they can support
lower-cost gear.
Advance has adapted to greater price-sensitivity within
its prairie customer base by broadening its range of offerings. It originally worked with Crestron, but more recently
is finding that Control4 can offer better economics on
some jobs. On the other hand, Advance also installs Savant equipment, typically on more-expensive jobs.
The expanding low end in automation includes a growing
business in do-it-yourself retail products. These may be giving
more consumers a taste of what automation can offer, but
vendors of full-scale systems are skeptical of their capabilities.
The key differentiator is integration. “Today, the do-ityourselfer can certainly go and purchase a thermostat and
download an app,” concedes Mukerjee. But he points out
that they’d have a very hard time achieving the end-to-end
integration of a proper automation system.
Without that integration, Middleton notes that users will
have to “jump from app to app,” thereby degrading ease
of use. “If I have to show my wife how to use it, I might as
well shoot myself in the face,” Middleton quips. With a system like Savant, everything is in a single app: AV, HVAC,
lighting, security, and so on.
“That’s where you strike the fine line of ‘home control’
versus ‘home automation,” says Mukerjee. Installers are
the ones who draw that line. “There’s a full interview process that has to happen.” Installers need to understand the
customers’ lifestyle, the features they want most, how they
want their kids to interact with the system, and so on. “The
installer comes up with solutions.”
Ian Haave, Sales/Design at La Scala Integrated Media in
Vancouver, BC, which handles Savant installations, is optimistic that the industry can handle the transition to more
mainstream pricing. “In consumer electronics, too often with
the lowest-cost items, reliability and user friendliness go out
the door,” he observes. But he expects home automation to
avoid this trap. “We won’t see 50 per cent slashes in costs,
as we have in the TV business. It’s not a race to zero.“
Nonetheless, the downward pressure on costs is only
going to intensify. Manufacturers and installers alike will
need to keep a strong focus on quality and long-term reliability, as automation becomes less of a boutique market.
Mobile Devices
Meanwhile, another force has been dramatically impacting the automation business. Consumers have embraced
smartphones and tablets with unprecedented passion.
“Now people are saying: what else can I add to my
phone?” says Hansen. One answer: using it to control their
home automation system.
“The influx of touch devices has dramatically changed
the market,” says Grossman. Reliance on proprietary control panels has diminished, while consumer “comfort level”
in the “down-market” segment has been strengthened. “I’m
just very comfortable doing everything with my phone,”
is the typical attitude, says Grossman. “So why wouldn’t I
want to control my home with it?”
“Without a doubt, in the last year, there hasn’t been a
job we’ve done without mobile devices,” says Bouvier.
Clients often have the app downloaded even before the
job is done.
The cost savings is significant, says Hough: $3,000 to
$4,000 for a dedicated controller, versus $300 to $400 for
an iPad.
In fact, Xenopoulos admits seeing some decrease in
sales of dedicated touch panels. But later upgrades tend
to recoup much of this loss. As the starter system is scaled
up, it will need more controls.
“It definitely cuts into your gross annual sales,” says
Stephan Fleck, Owner, Smart Canada Automation, an
installer based in Bracebridge, ON, working extensively
with Control4 systems. “On the other hand, you’ve got a
happy repeat customer.” And potentially fewer headaches.
“I’d like to see them all buy Nexus 7s,” Fleck admits. “You
get in, get out, get paid. If the Nexus 7 dies, the clients can
go and buy a new one themselves.”
Joel Bouvier, Advanced Residential Technology Manager, Advance Electronics Ltd., Winnipeg, MB: “Without
a doubt, in the last year, there hasn’t been a job we’ve
done without mobile devices.”
Marcel Mukerjee, Senior Area Manager, Canada, Control4 Corporation: “…you strike the fine line of ‘home
control’ versus ‘home automation. There’s a full interview process that has to happen…the installer comes up
with solutions.”
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CUSTOM CORNER
Pierre Xenopoulos, Director of Sales, AMX Canada, notes
that integration is moving far beyond just AV, including
things like control of HVAC. AMX thermostats can now
even display weather forecasts from the Internet.
Jim Peebles, Partner, Product Solutions Group: “We were
all audiophiles in the past. We used to be a lot more
media-centric. Now we’re more integration-centric. We
need to know about a lot more different disciplines.”
“I don’t even need to be involved in the process, if a
client wants to upgrade or replace a controller,” Haave
agrees. “Why should we have to sell them a proprietary
touch screen that does less?” Haave is conspicuously
unconcerned about reduced revenue. “My success in the
business is not based on selling touch screens,” he says.
Incorporating mobile devices into the automation ecosystem requires appropriate mobile apps. Most of those
are available now, but a few are still straggling in.
For example, Staub has a URC app available for iOS, and
an Android app coming shortly. Kohn emphasizes that
everything can be controlled from this one app, usually
with no more than one or two taps of a finger. “If they
have to touch something more than three times, it’s not
user-friendly.”
Elan apps for iOS and Android should be out this summer,
says Hough. “The goal is to take all the different products
and be able to pull them into one common interface.”
Xenopoulos reports that AMX has had apps for both Android and iOS for some time. An app is also available for
Windows 8/ Windows RT (though not for Windows Phone).
Xenopoulos emphasizes that these apps offer the same
feel as the dedicated AMX panels.
Control4 has apps for iOS and Android, as well as for
Macintosh and Windows 8 (though again, not for Windows
Phone). Support for other platforms does not seem imminent.
Savant is a special case, since its system software is
based on Macintosh OS X, and its central processors are
built around the Mac Mini. Middleton notes that Savant’s
early selection of dedicated 5-, 7- and 9-inch touch
controllers was swiftly discontinued with the launch of the
iPad in April 2010, in favour of an iPad app.
Despite Savant’s unique relationship with Apple, it will
also be releasing an Android app early next year, says
Middleton. He sees no immediate likelihood of a Savant
app for other mobile platforms.
Pricing of automation apps varies rather widely. At the
lower end is Savant, which launched its iOS app at $10,
says Middleton, but now offers it for free.
Control4 also offers its app for free. However, remote
access requires a subscription to its 4Sight service, which
runs for $120 a year. This allows customers to monitor and
control their home from a smartphone, and receive status
alerts. It also allows access from any browser, using the
MyControl4 Website.
AMX apps define the opposite extreme: US$249 for the
iPhone, iPod Touch and Android phone, $750 for iPad,
Android tablets and Windows 8. Each device needs its
own copy. Xenopoulos points out that the cost still compares favourably with that of a $1,200 “economy model”
dedicated touch panel.
Crestron has a demo app available for free. It’s basically
a mock-up of the real thing, giving prospective customers
a chance to explore the possibilities. The actual app costs
$99.99. However, there is no subscription fee.
Elan charges for its mobile software, based on a user
license for third-party hardware connected to the system.
This would be included in the overall cost of the installation.
“Most dealers don’t have a revenue stream based on selling iPhones and iPads,” Peebles explains. “It’s a conundrum.
Dealers are required to support devices that they can’t
generate revenue on.” Elan feels its approach helps make
mobile devices a more natural part of the retail package.
One concern with mobile apps is keeping the user
interface consistent within the manufacturer’s ecosystem.
“The user interface can vary device by device,” cautions
Peebles. He notes that Elan has been careful to offer an
identical interface on all platforms.
Peebles adds that for AV control, there’s an advantage
to the old button-style remote. For example, suppose
the phone rings and you need to mute the TV. With a
smartphone, you’d need to power on, unlock the device,
load the right app, and possibly page through a myriad of
options. With a traditional remote, you just push Mute.
There’s another advantage of an old-fashioned remote.
“A wand-style remote is not going to walk out the door,”
Kohn points out. A phone almost certainly will, at some
point. Another function that dedicated controllers do better
than mobile devices is intercom. It’s a simple feature, but
very useful. “It’s not easy to get any other way.”
Xenopoulos offers yet another reason to install at least one
dedicated controller: serviceability. “We have no control over
service or warranty of third-party devices,” he points out.
20 MARKETNEWS
Mark Walters, Chairman, Z-Wave Alliance: “Automation
companies are good at writing software, not making
dimmer switches.”
Haave sees “probably two or three places in your home”
where a master control panel makes sense. He admits that
it’s not too important for AV. But for windows shades, lighting or thermostats, it makes more sense.
“We try to recommend that each project has at least one
in-wall fixed control point,” agrees Hough. Natural locations would be in the kitchen, or the master bedroom.
Grossman also believes in placing at least one control
panel per floor. He adds that Architronics will usually prewire extra locations around the home, so more controllers
can easily be added later.
Bottom line, dedicated remotes and control panels aren’t
going away completely. “When we first came out with
the mobile app, dealers were actually mad at us,” recalls
Hansen. “They were scared. But we found that we sold just
as many in-wall touch screens that year as we did the year
before.” Since then, Crestron’s sales of dedicated controllers have continued to increase.
Breaking the Silos
Looking ahead, one aspect of home automation systems
that may need some work is their ability to interoperate.
Compatibility and standards received scant attention in
the wild frontier days of hundred-thousand-dollar installs,
dominated by a half-dozen proprietary ecosystems.
This omission is perfectly exemplified by the split in
networking standards. ZigBee is the standard underlying
most (if not all) of today’s major automation ecosystems.
Z-Wave is the standard adopted by most other devices.
“There’s nothing wrong with the ZigBee technology,”
says Mark Walters, Chairman of the Z-Wave Alliance. “But
you don’t get access to a broad ecosystem of interoperable
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products.” Walters reports that every major door lock manufacturer, all major thermostat companies, and many other
product categories, are incorporating Z-Wave compatibility.
“Automation companies are good at writing software, not
making dimmer switches,” says Walters. “What installers are
saying is: we need more choices. Z-Wave is providing products to their systems that they can’t provide themselves.”
On a technical level, Z-Wave and ZigBee are similar.
They both define low-power, radio-frequency ‘mesh’ networks. This is ideal for home automation, allowing devices
such as remote sensors or door locks to operate on their
own power, communicating with each other rather than
with a distant Wi-Fi access point.
ZigBee is based on the IEEE 802.15 standard. But
Walters points out that this doesn’t mean that any two
ZigBee devices will actually talk to each other. He explains
that the IEEE certifies only the lower levels of the protocol.
On top of this, manufacturers have built various software
‘stacks,’ all incompatible with one another.
“They love having the interoperability and purchasing
power of a standard,” says Walters. “But they don’t want to
give them to the customer.”
Z-Wave is the reverse. The standard is proprietary,
owned by Sigma Design, sole manufacturer of the radio
chips. It’s covered by the ITU G.9959 spec, and administered by the Z-Wave Alliance, which includes over 250
companies, according to Walters. But Sigma retains the
ultimate veto power of refusing to sell chips to non-compliant manufacturers.
Unlike ZigBee, Z-Wave certifies interoperability. So all of
the 900 products currently certified should be able to talk
to each other. “We’ve turned away some very big companies because they wanted to do proprietary versions of
Z-Wave,” says Walters.
According to Walters, the list of Z-Wave compatible devices includes everything from $20 dimmer switches sold
at Walmart, to best-in-class lighting products that go for
hundreds of dollars. He notes that there are some 48 different Z-Wave thermostats available, and that every major
lock manufacturer has “a Z-Wave flavour” available.
A level, competitive playing field results in wider choices
and a better bang for the bucks, says Walters. “Dealers are
facing competitive pressures. Customers are asking why
they can’t get a $20 device, instead of one that costs $250.”
Automation system vendors tend to downplay the
importance of Z-Wave. Instead, they point to their own extensive work in enabling integration of third-party devices
(including some based on Z-Wave).
“Third-party compatibility comes down to drivers,” says
Kohn. Once the drivers are in the database, they’re available for use any time. But creating a driver can be timeconsuming, so there’s always a trade-off.
According to Peebles, Elan partners with best-of-breed
suppliers in each equipment category. For example, Elan
doesn’t need to make lighting controls, if it can offer the
choice of Lutron or Central Light, and integrate either of
those lines seamlessly with its own controllers.
Peebles reports that Elan has created drivers for a long
list of hardware manufactures, including Sony, Yamaha,
Onkyo, GE, Honeywell and others. It can also integrate
less-obvious products, such as irrigation systems from
Hunter, or pools and spas from Pentair and Jandy.
AMX has its own InConcert program, which allows thirdparty manufacturers to build compatibility modules. Alternatively, device manufacturers can build AMX compatibility
directly into their gear, using programming tools like AMX
Café Duet. Products that include “device discovery” ability
should automatically enable within the AMX system.
The Crestron Connected program is helping a variety of
vendors build the Crestron automation protocol into their
devices. Last month, for example, Crestron added a highend media server from Autonomic. It allows full control,
and sends feedback to the controller.
“Right now, we don’t communicate directly with ZWave,” says Hansen. But she notes that there are some
“converter boxes” that can link Z-Wave to Crestron’s proprietary infiNET EX.
It’s up to installers to pick up the slack. For example,
Fleck estimates that Control4 covers about 75% of his
needs. The rest comes from third parties.
North X NorthWest similarly fulfills most requirements
with Vantage gear. However, Hough notes that the line
doesn’t include a video server, so for that he turns to
manufacturers such as Kaleidescape.
Hansen suggests that clients be warned off of incorporating lower-end gear. “You may have to tell them: you’ve got
a $300 Blu-ray player, and it will cost $700 to integrate it
with your automation system. Or we can sell you a better
player for $400, that’s guaranteed to work perfectly.”
Grossman similarly stresses the importance of preventing
the customer from making bad choices. “If you start down
that road, you wind up in a lot of pain. We won’t put in a
system we can’t support.”
Unfortunately, even name-brand consumer devices are
more difficult to integrate than they ought to be. Even
providing proper power controls on a TV or cable box
would be a huge step forward.
“There are always workarounds to ‘toggle power’ on
devices that don’t have a discrete on and off,” says Haave.
He notes that Savant systems include “state management,”
to track whether problematic devices are on or off. “You
don’t need a service call because the cable box is in an
unknown state.”
Fleck points out that HDMI also remains problematic.
“The television manufacturers are not coming to the
installers’ aid at all,” he says.
Then there’s Apple. Fleck recalls how the arrival of the
iPhone 5 meant a lot of docks needed to be replaced.
“Suddenly, you’ve got to find one more gadget that you
can stick on the network that will allow the iPhone 5 users
to play their music.
“You still have manufacturers trying to maintain the
concept of a dedicated ecosystem,” says Fleck. “They need
to be open and they need to be closed at the same time.”
Tough Times
It’s clear that home automation is at a tough stage. While
the lower-end consumer business is booming, the industry
retains a tightly proprietary approach that evolved to
handle very different, high-value installations.
It’s hard to predict how well that model will hold up. With
standardized devices proliferating, it wouldn’t be too surprising to see one or more companies entering the business
purely as software developers, allowing installers to assemble
whatever suite of equipment seems appropriate to each job.
That could be the approach vendors like Rogers Communications have in mind. Whether they have the software
chops to pull it off remains an open question.
For installers and integrators, the future is bright. Better
standards, or the adoption of generic devices such as
smartphones and tablets, can only make their work easier
and more cost-effective.
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Lifestyles of
the Famous
& Fashionable
Kate Upton is just one of many celebrities tied to
the Skullcandy headphones line. The manufacturer
has tabs on its Website for Sports, Music, and Models,
featuring affiliated celebrities or branded products
in each.
GOING MOBILE
By Adam Grant
Celebrity faces and recognizable brands can go a long
way to helping sell a product. In an era when those in the
mobile industry must be especially creative and have a
balls-to-the-wall mindset in order to outshine a growing list
of competitors, turning to the famous and the fashionable
is a brave and potentially lucrative move to make.
It’s no longer as easy as having an A-list actor stand in
front of cameras and a green screen, holding a product and
saying that he loves “x” and “you should too.” That’s been
done. And savvy consumers today see right through that.
It’s now imperative for more creative thought to be put
into celebrity-based campaigns, and partnerships with
other brands. Samsung is a perfect example.
As the Galaxy-maker dukes it out with Apple for supremacy in the mobile space, it comes to the ring with
much star power. In the company’s multi-million dollar
2013 Super Bowl commercial to promote “the next big
thing” (eventually revealed to be the Galaxy S4), Samsung hired the services of National Basketball Association
(NBA) superstar LeBron James, along with box office draws
Seth Rogen and Paul Rudd. Comedic, well written, nicely
produced and directed, this spot was viewed as one of the
top Super Bowl ads of the year. That’s just one of many
moves the company has made of late, the most recent being a highly-publicized partnership with hip hop artist Jay-Z
(more on that later.)
Accessories distributors grasp the importance of both
the famous and the fashionable as well. Picking up a line/
license that has an association to a well-known clothing
designer, sports team, movie franchise, or iconic brand can
engage many consumers. However, such a venture can
also be disastrous if the wrong allegiances are made.
24 MARKETNEWS
And wireless carriers also get in on the action in many
ways, like honing in on key, local venues. Rogers has the
naming rights to the Toronto Blue Jays’ home field, for example, while Virgin Mobile has the naming rights to downtown
Toronto concert venue, the Virgin Mobile MOD Club.
What impact do celebrity and fashion affiliations have
on the market? What works? And what doesn’t?
The Celeb Ripple Effect
Fame is fleeting and trends can crash and burn at a
nanosecond’s notice. Consumers are a fickle bunch. These
uncertainties inevitably make it a white-knuckled endeavour for those in the mobile industry to partner up with the
“it” person, or brand, of the month. But, they still do.
“I don’t know if it’s necessary, but I would say that it’s
an easy way to capture a certain segment of the market,”
offers Trevor Robertson, Vice President of Business Development for North Vancouver, BC-based Atlantia, which distributes Curtis “50 Cent” Jackson’s SMS headphones line
and Ferrari-branded mobile accessories, among others.
Herein lies the challenge. On one side, if the right celebrity
is brought in at the right time, an explosion of riches could
result. But, once the dog and pony of the show gets tired or
poops the bed, companies can be left holding the bag.
“The celebrity endorsement thing is always going to
be there, but it’s a bit of a risky business,” explains Rick
Henry, President and CEO of accessories distributor Microcel Corporation in Newmarket, ON. “It’s an in and out deal.
Be prepared to work with a great fashion brand, do a deal
with Justin Bieber, do a run at Christmas, then re-evaluate
after that if you’re to continue down that road. You have
no idea how much length of time you’re going to get [out
of them]. There are some that have had great longevity,
and others that have run a short period of time.
“One bad incident,” he continues, “like the Chris Brown situation with Rihanna…You could be all behind Chris Brown but
when one bad thing happens, now what are you going to do
with your product? No one in the world is going to want it.”
Henry brings up a solid point. Usually as soon as serious
controversy befalls a famous person or brand, their desirability struggles, thus leading to fractured partnerships.
Recently, when food industry heavyweight Paula Deen
admitted to making racial indiscretions, TV networks, retailers, and other entities that had ties to her immediately
severed the connections.
Wireless Xplosion Ltd. is a mobile accessories distributor based in Scarborough, ON. Last year, the company
brought UFC fighter Wes Sims to the Canadian Wireless
Trade Show in Toronto, ON. The bruiser was on hand to
promote UFC-licensed phone cases from HeadCase, the
same company that offers smartphone cases capable of
Overview
• Celebrity-based marketing campaigns can help move product, but it’s important to choose wisely.
• Fashion and endorsed accessories can prove to be a viable option for distributors, and while some jump
aboard the flavour of the month, others opt for brands with longevity.
• Wireless carriers tend to vie for consumer attention through initiatives like naming rights arrangements.
GOING MOBILE
cracking open a beer. During his five hours on the scene,
Sims also signed autographs and took photos with attendees.
Jay Rahman, Founder and President of Wireless Xplosion, heavily promoted Sims’ appearance at his booth,
and even brought in “ring girls” to add to the UFC theme.
Despite his company’s best efforts, Rahman doesn’t look
back at this endeavour and consider it to be a success.
“We brought the celebrity in for a retailer show,” he explains. “If we had more consumer presence at the show, it
would’ve been much better and we would’ve gotten more
out of it. We brought him in to see if there was any buzz
that we could create. Unfortunately, [Sims’ appearance]
didn’t do much for us.”
This could have been a case of the right move, wrong
venue. Indeed, Wireless Xplosion did continue its celebrity
affiliations, albeit indirectly, with celebrities like Flava Flav
appearing at HeadCase’s booth at CES earlier this year.
And this brings up another interesting point. Distributors
can benefit from moves made by handset (or accessory
manufacturer) partners as well. When Samsung, Microsoft/
Nokia and BlackBerry roll out the red carpet for famous
spokespeople, it can lead to an upswing in handset sales
and subsequently a bit of a boost for sales of accessories.
“On the OEM accessories side, really it’s about the
attachment rate of the devices,” explains Henry. “So, if
[Samsung] moves more of their devices because of a big
Super Bowl ad, then obviously the accessory attachment
rate goes up.”
“Usually you’ll get a slight rise [in sales]…it’ll over-index
a little bit when that celebrity endorsement is happening,”
confirms Joey Lasko, Director of Product Management for
Burnaby, BC-based accessories distributor Hitfar Concepts.
“So, say handset sales increase, your accessory [for it] will
increase by the same percentage…but usually a little bit
more, because the person who is buying an OEM accessory was likely going to buy it anyways. Now, the celebrity
endorsement gets a few more people buying it.”
Earlier this summer, Hitfar entered into a distribution agreement with popular lifestyle headphone brand
Skullcandy. To initially promote the new relationship, Hitfar
ran a full-page spread in the June edition of Marketnews
featuring Sports Illustrated Swimsuit Edition cover girl and
Victoria’s Secret Model Kate Upton with a pair of Skullcandy earbuds draped over her shoulder.
“People are going to love that ad, or they’re going to hate
it, but either way, they’re going to be talking,” explains
Lasko when discussing the motivation behind it. “The
[Skullycandy] line is very new for us, and we expect some
significant brand exposure. But, I’m not sure exactly the
impact she will have directly for us as a company. It’s hard
to judge this since we don’t have a baseline to start with.”
How Manufacturers
Make Their Moves
The big names truly come out to play on the smartphone
manufacturer side.
For Apple, the company benefits not only from celebrity
tie-ins, like its past efforts with U2 frontman Bono with
the PRODUCT(RED) charitable initiative, but also from the
fact that lots of celebrities are photographed or filmed
naturally fiddling with their iPhones. That’s not to say that
competitors like Samsung, Nokia/Windows, BlackBerry,
and others are hiding out in the shadows. The latter three
manufacturers have been taking sizeable strides of late to
get certain celebrities on their side.
On October 30, 2012, Samsung Canada launched its
Galaxy Note II in a big way in Toronto with a concert at
the Kool Haus, featuring YouTube sensation, PSY (known
for the love-it-or-hate-it catchy tune Gangnam Style).
Tickets for this event weren’t sold to the public, but
instead made available for free through Samsung’s Facebook page and contests hosted by local radio stations Kiss
92.5 and Virgin Radio 99.9 FM.
Then, on April 25 of this year, Samsung hosted regional
launch parties in Montreal, Toronto and Vancouver for the
Galaxy S4. Award-winning dance music group Dragonette
headlined the Montreal event; Walk Off The Earth (who’s
video for Somebody That I Used to Know was watched
more than 140 million times on YouTube last year) played
Toronto; while rock act Stars took the stage in Vancouver.
Feist, performed simultaneously at all three venues as a
hologram. Go figure.
Ken Price, Director of Marketing, Mobile Communications,
Samsung Canada, explains that these partnerships typically
come together after discussions with the company’s public
relations agency, looking at how a particular artist/band
might fit. The more a performer is involved in social media,
for example, the better opportunity Samsung has to reach
individuals that it may not have otherwise been able to
reach. Once an artist is approached, Samsung discusses its
vision for the “experience” to ensure there’s a mutual understanding and comfort level. It’s also important, adds Price, to
“just stand back and let [the artists] do their magic.”
That said, one inherent risk is still present: the fact that
certain consumers will view such arrangements as straight
NBA superstar LeBron James has appeared in multiple TV commercials for some of Samsung’s latest mobile devices,
including a very well received 2013 Super Bowl spot with actors Seth Rogen and Paul Rudd in support of “the next big
thing” campaign.
26 MARKETNEWS
up endorsement deals for the performers.
“I think people are coming around to the idea that nothing’s free…that no experience is free,” says Price. “There’s
a reason for even so-called ‘free entertainment.’ There is
a model in marketing that we engage: sponsored content
that comes with some kind of advertising component or
paid content. I think people are accepting that this is part
of a sponsored content opportunity. [However], you have
to be very careful not to ruin the authenticity of the act
itself or your own brand experience.”
Internationally, Samsung has been able to snag everyone from, as earlier noted, LeBron James, Seth Rogan, and
Paul Rudd to participate in commercials; along with R&B
hitmaker Usher. If you run a Google search for “Samsung
Celebrities,” photos of soccer great David Beckham and
acclaimed actor Don Cheadle palming Samsung products
can be easily found as well, among others.
Out of the lot, James could be considered the biggest
fish, as he is widely regarded as one of the best basketball
players on the planet.
“You try to find people who line up with what you’re
trying to say about your brand,” offers Price. “[LeBron is] a
very passionate guy in terms of what he does, and passion
is one of the attributes that we try to get across about our
brand. In that case, he is a great fit. He also has a cool factor and a following.”
However, arguably none of these partnerships/affiliations
have turned as many heads as Samsung’s recent collaboration with hip-hop legend Jay-Z. The marketing initiative
saw the first one-million downloaded copies of the artist’s
new album Magna Carta Holy Grail given away for free,
three days ahead of official release, to those in select
countries (including Canada) who downloaded the Jay
Magna Carta app on a Samsung Galaxy S4, SIII, or Note
II. The app also provided the story behind the album and
videos from the studio.
Marketnews was unable to squeeze out exactly how
much coin Jay-Z raked in as a result of this deal; Price
would only confirm that Samsung “sponsored a million
albums.” You do the math.
Out of this arrangement, Jay-Z was able to turn the
music industry on its ear. It was an album release and
marketing endeavour pairing that hadn’t been done before. Meanwhile, Samsung got to bask in the subsequent
spotlight and gather an extra chunk of “cool” points.
“We sponsored an experience that was an exclusivity,
and something that was really cool and interesting,” says
Price. “I feel like there will be more of these deals done.”
At the 2012 Canadian Wireless Trade Show, Wireless
Xplosion brought in UFC fighter Wes Sims in hopes he
would help drive booth traffic.
GOING MOBILE
Joey Lasko, Director of Product Management, Hitfar Concepts: “When you start adding
fashion brands…[you have to ask] ‘are [consumers] willing to pay the necessary price
at which it has to be sold?’”
Hip-hop legend Jay-Z partnered with Samsung to launch his Magna Carta Holy Grail
album in July. The first one-million fans who downloaded a special app to specific
Galaxy devices, received a free digital copy of the album.
HTC, however, launched its ad campaign around Windows Phone 8 with music artist Gwen Stafani to lacklustre
response. The company is now reportedly investing US$1
billion in an upcoming ad campaign featuring actor Robert
Downey Jr. in an effort to help re-invent itself in the wake
of flailing sales.
When discussing Windows’ initial marketing endeavours
around Windows Phone 8 with Microcel’s Henry, he thinks
that the company focused too hard on the celebrity involved
and not enough on what consumers would be given.
“When Windows launched its new mobile software and
used Gwen Stefani [in an HTC Windows Phone 8 commercial], who is very well known, people weren’t using
Windows devices. Just because Gwen Stefani was using it
and it made her life easier, it didn’t necessarily mean that
people were going to buy a Windows device.
“They used the celebrity as the endorsement to drive
[Windows Phone 8],” Henry continues. “I wouldn’t have
done that. I would’ve utilized the features of the software
and have some other type of hook to get them in and talk
about all the wonderful things that you can do with your
Windows Phone.”
However, this hugely publicized move didn’t come and
go unscathed. Not too long into the campaign, U.S. civil
liberties group the Electronic Privacy Information Centre
(Epic) filed a complaint with the Federal Trade Commission
(FTC) to suspend the distribution of Jay-Z’s app. The group
claimed that it collects “massive amounts of personal
information from users, including location data,” and that
it “also includes hidden spam techniques.”
In response, Samsung referred to the claims as “baseless,” and stated that it “takes customer privacy and the
protection of personal information seriously.”
The initiative was clearly successful for both parties.
But the backlash with regards to alleged acquisition of
personal information shows that while it can pay to work
with a celebrity, that person can also become a lightning
rod. The importance of weighing all of the factors before
signing on with a celebrity cannot be understated. Nor can
the possibility for an issue to arise completely out of left
field, even after all of the variables have presumably been
taken into consideration.
“[Samsung and Jay-Z have] gotten in major trouble not
because of anything that Jay-Z has done, but because of
how the app was designed and the amount of information it wants,” says Robertson. “There are always things
that you have to concern yourself with whenever you do a
partnership like this. Is it the right image for the company
or the product? Is it going to get us to the right customer?
And how many of those people that we are influencing are
eventually going to turn into customers?”
Microsoft and its partners have never been one to shy
away from celebrity affiliations. Starting in November
2012, separate TV ad campaigns were launched with
actress Jessica Alba, Will Arnett of Arrested Development
fame and popular Saturday Night Live cast member Andy
Samberg around various Windows Phone 8 devices; while
pop act Ke$ha was seen playing with a Windows 8-based
Nokia Lumia in her Die Young video.
“We have a great partnership with Microsoft and worked
closely with them on campaigns like these,” explains
Valerie Buckingham, Head of Marketing, North America for
Nokia, the top manufacturer of Windows Phone 8-based
handsets. “These individuals represented a wide range of
personalities and talents…much like the consumers attracted to Lumia and Windows Phone.”
Rick Henry, President & CEO, Microcel Accessories: “You
could be all behind Chris Brown, but when one bad thing
happens, now what are you going to do with your product? No one in the world is going to want it.”
Some feel the move to use music artist Gwen Stefani, among other celebrities, to promote Windows Phone 8 was a
miss, noting that the focus should have been on the features of the unfamiliar operating system and phones, not
endorsements.
MARKETNEWS 27
GOING MOBILE
JUNO and Grammy Award winner Feist performed as a hologram simultaneously at multiple Samsung Galaxy S4
launch events in Canada earlier this year.
Trevor Robertson, Vice President, Business Development, Atlantia: “Look at the Samsung and Jay-Z thing.
They’ve gotten in major trouble not because of anything
that Jay-Z has done, but because of how the app was
designed and the amount of information it wants.”
In May when Nokia Music, a free music-streaming app
for Lumia users, was released in Canada, Nokia hosted a
media event at Toronto’s Air Canada Centre to officially
launch the service. The night included a speech from
treasured Canadian radio personality and admitted music
nerd Alan Cross, as well as a performance by rock group,
The Killers. Cross was brought in specifically by Nokia to
discuss the app. While The Killers technically didn’t have
a direct affiliation with Nokia Music or the event, the band
did serve as an extra motivator for media types to attend a
work event after standard office hours.
Taking a completely different strategy, in January, during
the BlackBerry 10 launch event, that Canadian company
surprised attendees worldwide by confirming the appointment of 14-time Grammy Award winner Alicia Keys as its
new Global Creative Director. The media release regarding
the announcement explained that Keys “will work closely
with app developers, content creators, retailers, carriers
and the entertainment community to further shape and
enhance the BlackBerry 10 platform…”
Regardless of what that actually means and how much
of a role Keys actually has, this was an interesting move.
While many of the celebrities discussed have signed on
with other platforms as spokespeople, Keys was brought
on as part of the staff count, to hold a seemingly viable
role within the company. Marketnews reached out to BlackBerry to discuss Keys’ position further, but was unable to
receive comment.
Jack Spade; Lucky Brand; and various National Hockey
League (NHL) and Canadian Football League (CFL)-licensed
mobile accessories. The distributor also recently began
carrying Flo Rida-branded cases from HeadCase, along
with the House of Marley line, created in partnership with
members of late icon Bob Marley’s family.
According to Rahman, while carrying such items has its
place, one must be aware that their lifespan can be limited.
“You have to pick and choose the right type of product,”
he says. “[The appeal of] licensed products lasts a very,
very short period of time. Nowadays, lifestyle product
isn’t selling much…it’s overplayed. The market isn’t there
anymore. People are tired of these things.”
When it comes to high-fashion items from entities like
Kate Spade, Jack Spade and Lucky Brand, though, Rahman
explains that part of the appeal is that the brands are not
saturating the market. “These brands are very selective
about where they want to go, and that’s why they’re doing well…they have their own strategy. They will make a
very limited number of their SKUs to make them a more
exclusive entity.”
Kate Spade and Jack Spade, for example, are focused on
the educational channel like college and university book
stores, as well Apple channels.
The longevity and staying power of an artist like Bob Marley
has, of course, already proven itself throughout the decades.
Henry says fashion accessories are a growth area for
Microcel. The company has signed a distribution agreement with Uniq, a Singapore-based brand that offers a
number of case options. One of the models that Microcel
will be carrying is the Lolita case for the Samsung Galaxy
S4, which comes in a number of elegant pastel colours
and features an attached wrist strap not too unlike what
you’d see on a woman’s hand purse. The distributor plans
on pushing this and other Uniq mobile accessories into
existing channels, as well as fashion stores.
This isn’t the first time Henry has dabbled in the fashion
accessory game. He recalls having leather Coach cases for
the more sizable mobile phones of the ‘90s. Although he
felt that the time was right, it wound up being “bleeding
edge: great idea, way too early.” He also once pursued a
relationship with the Tommy Hilfiger brand 10-15 years ago,
but realized, once again, that “the timing wasn’t quite right.”
That said, Henry does have great faith in the fashion
accessory trend: “Fashion [brands] for sure, are going to be
huge. You almost have a better chance of taking a fashion
brand that has longevity, than a celebrity.”
Hitfar offers fashionable phone cases featuring the MINI
automobile brand, and stylish offerings from manufacturers like Case-Mate and Qmadix. The company is cognizant
of the popularity of such products in the market, but Lasko
points to one particularly important consideration: the
Fashionable brands aren’t necessary tied to actual
fashion labels: Singapore-based Uniq offers cases like the
Lolita for the Samsung Galaxy S4, which comes in several
pastel colour combinations, and incorporates a wrist
strap, much like you’d find on a woman’s clutch purse.
Branding is popular among the accessories market, with
lines like Coveroo offering licensed sports cases with
logos and imagery from Canadian Football League (CFL)
teams.
Fashion Forward
While some in the mobile industry turn to celebrities to
move product, others, especially on the accessories side,
take a different branding route: working with high-fashion
brands and popular licenses.
Many types of mobile accessories can be considered
fashionable. Some, by name, others by design, and others
through licensing agreements.
Wireless Xplosion has a number of the latter kind in its
arsenal, including high-fashion brands Kate Spade and
28 MARKETNEWS
GOING MOBILE
On July 23, a 12-foot tall bronze statue of communications industry mogul Ted Rogers was erected outside of
the Rogers Centre in Toronto, ON.
price has to be right.
“It’s a very fine balance because when you start adding
fashion brands, you’re adding another level to the value
chain,” explains Lasko. “When you get down to the last
step where the person pays for that product, [you have to
ask] ‘are they willing to pay the necessary price at which it
has to be sold?’ Some of them are, some of them aren’t…
it all depends on the customer and the brand. It can be
good, but at the same time, it can also be limiting.
“We have talked to a number of companies associated
with a vast number of brands,” he adds. “Some brands we’ve
trialed, and some brands based on what we feel would have
to be the end selling price, we’ve stayed away from.”
Cesium Telecom is another mobile accessories distributor
that’s hip to the fashion market. The Montreal, QC-based
company carries Bling My Thing smartphone cases. What
makes this type of product desirable to consumers is that
they are decked out with Swarovski Elements. (It’s worth
noting that various Swarovski designs are licensed out to
other manufacturers as well.)
On the other side of the spectrum, Cesium also offers
NHL-licensed cases from every team in the league. The
company notes that, not surprisingly, these selections do
particularly well during the hockey season, which usually
runs from October through June.
So, the question remains: where are we in the mobile
fashion case landscape?
“I don’t know if it’s reached maturity,” says Lasko of the
fashion trend. “I think you have a whole lot of people who
are trialing. An accessory on your handset is just like a belt.
The main-line fashion designers are seeing that there’s a
lot of money in accessories and there always has been. A
large portion of people have smartphones, so can they get
a piece of that market there and still get that same margin?
Some brands will figure it out and some won’t.”
“There is not a formula for success just yet for fashion
brands,” adds Sarah Gemayel, Brand Manager, Cesium
Telecom, Inc. “I don’t foresee [that trend] dying off in the
near future. I think it’ll continue to grow.”
The Naming Game
Carriers, too, aren’t shy about attaching themselves to
famous entities for the sake of added exposure. As noted,
30 MARKETNEWS
Virgin Mobile Canada has smartly attached its brand to entertainment venues and music festivals, subsequently affiliating itself with a collection of popular bands/artists as well.
In 2006, the company brought Torontonians V-Fest, a
two-day music festival that took place at Olympic Island.
It featured a wide selection of internationally acclaimed
headliners, along with local talent and independent bands.
The grounds were filled with Virgin branding, and attendee engagement activities allowed people to do things like
send text messages to the festival that were then viewable
on the video screens by the main stage.
The festival switched its Toronto venue in 2009 to what
is known now as the Molson Canadian Amphitheatre and
added dates in Halifax, NS, Montreal, QC, Calgary, AB,
and Burnaby, BC. In 2010, it was revealed that the festival
would no longer take place in Canada. Economic and
logistical issues shouldered part of the blame. The Virginbranded festival still runs in the U.K.
However, Virgin continued pushing its connection to the
music scene by acquiring the naming rights to downtown
Toronto concert venue, the Mod Club, in November 2011.
Located at 722 College Street, the Virgin Mobile Mod Club,
has become a way in which Virgin can continue to engage
both its current client base and music lovers that may be
ready for a new carrier.
Virgin customers are provided with the opportunity to
receive free access to concerts at the venue; discounted
pre-sale tickets; band meet-and-greets; special seating;
and more.
“Music is a key pillar of our member benefits program,”
explains Andrew Bridge, Managing Director, Virgin Mobile
Canada. “While at a sponsorship level, we can’t control
the entire experience, the benefits we receive from our
involvement far outweigh the risks.
“Virgin’s deep roots in music (company Founder Richard
Branson launched Virgin Records in 1972) make partnering with a live music venue perfect for the brand,” he continues. “We wanted to bring live music to our members,
and the Mod Club was looking to increase its visibility in
Toronto, making it the perfect partnership.”
Virgin Mobile Canada’s musical endeavours aren’t just
Toronto-centric. The carrier does also have the naming
rights to music venue The Virgin Mobile Corona in Montreal, and sponsored that city’s Osheaga Festival in early
August. By partaking in these types of endeavours, Bridge
feels it “is a great way engage” the company’s customers.
Rogers Communications is also knee-deep in generating
exposure for its brand through strategic arrangements. In
2000, the company purchased the Toronto Blue Jays baseball club for $160 million, and then went on to purchase
the team’s stadium, SkyDome, in 2004 for $25 million.
Shortly thereafter, it would be renamed the Rogers Centre.
To further hammer the Rogers presence home, the compa-
Sarah Gemayel, Brand Manager, Cesium Telecom: “…
Having your name up in the sky…if a company can
afford to do it, go ahead. But I don’t think it’s necessarily
the biggest and most important marketing investment.”
ny erected a 12-foot tall bronze statue in July, outside of the
stadium by gates 5 and 6, of late Rogers Communications
boss Ted Rogers. For the record, this statue beats the arrival
of any former player-related statue outside the ballpark.
Not to be outdone, Bell Canada holds the naming rights
to The Bell Centre, the arena in which NHL franchise the
Montreal Canadiens play, while MTS has the MTS Centre in
Winnipeg for the Jets. These are but just a few examples.
“It’s all about advertising at the end of the day, and it’s
all about winning mind share,” believes Atlantia’s Robertson. “For some of these huge million and billion dollar
companies, the numbers that flow around are crazy, and
there’s different ways of marketing and winning mind
share of customers.
“If it’s a celebrity endorsement,” he continues, “if it’s the
name on your favourite hockey team’s arena…whatever it
is, however you can reach these customers, companies are
trying to do it because there are millions and billions of
dollars at stake.”
The team at Cesium Telecom, however, has a different
view regarding the validity of such a strategy.
“In Montreal, we have the Bell Centre,” begins Gemayel.
“Initially, when the [wireless] market was less competitive,
this was something very, very big. However, the market is
currently driven by price and who offers the best [service].
So, having your name up in the sky…if a company can
afford to do it, go ahead. But I don’t think it’s necessarily
the biggest and most important marketing investment.”
Adds Jason Lau, Marketing Manager, Cesium Telecom
Inc.: “If there’s only three or four carriers in your region,
chances are that you know them all by name. You don’t
need a Bell Centre or a Rogers Centre to know that company. Money used for this can be spent elsewhere.”
Trend to Continue
Celebrity and fashion partnerships have certainly not
reached a level of maturity in the wireless space. And as
they continue, it’s important to understand that they need
to be developed carefully…especially on the celebrity side.
“Celebrity involvement can generate tremendous awareness and interest in a brand and is a smart move, if done
right,” says Virgin Mobile’s Bridge. “There are a lot of
factors to consider in terms of how a celebrity fits with the
company, its audience and its brand values. The partnership needs to be relevant to the brand and the consumer
being targeted.”
Concludes Lasko: “[The campaign] has to be very strategic and intentional. Very quickly after the initial roll out,
you need to be measuring the ROI [return on investment]
on that. Because of the amount of funds that celebrities
are looking for, you have to be very careful and weigh
whether that is the best use of shareholder capital.” mn
Andrew Bridge, Managing Director, Virgin Mobile
Canada: The partnership needs to be relevant to the
brand and the consumer being targeted.”
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Sports & Wildlife Photography Gear
DIGITAL IMAGING
By Peter K. Burian
The vast majority of families have at least one member
who’s involved in some competitive activity, making sports
photography quite popular. And photo enthusiasts also
enjoy this type of shooting, in order to make dynamic images. As a bonus, much of the gear that’s ideal for sports
is also suitable for wildlife photography, whether at a zoo,
drive-through safari park, or in a National Park.
That makes many customers a prime target market
for cameras with super-zoom lenses, add-on telephoto
lenses for DSLRs and Compact System Cameras, tripods
and monopods, various types of bags and other valuable accessories. When properly equipped, it’s possible to
maximize the available photo opportunities, to minimize
frustration, to make beautiful images under difficult conditions, and to shoot more quickly in order to capture the
peak of action.
Super Zoom Cameras
Families whose children compete in sports, or who enjoy
watching birds and mammals, should certainly benefit
from a camera with a 20x or longer zoom lens. While
integral-lens camera sales have dropped significantly, this
category remains robust. That’s understandable since the
super zoom cameras are getting smaller and smaller as
well as more affordable; some sell for under $250 at retail
but provide amazing telephoto “reach.”
Chris Brogden, a Manager with Don’s Photo in Winnipeg,
MB, often recommends the Sony HX50v to customers
who want excellent image quality as well as great speed,
10 fps at 20.4 MP resolution, and a stabilized 24-720mm
equivalent f/3.5-6.3 lens. However, their best seller is
the surprisingly small 12 MP Canon SX280 HS with a
stabilized 25-500mm equivalent f/3.5-6.8 lens, GPS,
Wi-Fi, and a burst speed of 14 fps. Every manufacturer
makes cameras of this type, and some feature surprisingly
wide-range zooms, such as the new Panasonic Lumix DMC
A lens with relatively small maximum apertures such as f/4.5 to 5.6 or to 6.3 is fine on bright days but in lower light,
a wide aperture lens is preferable. For this evening game, the author used a 70-200mm zoom at f/2.8 and was able
to shoot at fast shutter speeds to freeze the motion using ISO 200 for optimal image quality. Photo by Peter K. Burian
FZ-70 with its 20-1200mm equivalent f/2.8-5.9 lens. This
model should also be very attractive for wildlife photography, where subjects rarely get close to the camera.
Brogden’s own favourite for serious sports photography
is the Panasonic Lumix FZ200 with a Leica DC 25-600mm
equivalent lens that offers f/2.8 at all focal lengths and
12 fps continuous drive speed at the full 12.1 MP. Savvy
photographers who appreciate the value of the f/2.8 lens
do not complain about paying $579, he says. “It’s relatively affordable since f/2.8 is what you get in pro lenses.
That aperture does a better job than f/6.8 in isolating your
subject against a blurred background; it also gives you
much faster shutter speeds to freeze motion and minimize
camera shake without the need to use high ISO, for better
image quality.”
Telephoto Prime &
Zoom Lenses
When watching sports events on TV, we often see pros
shooting with 500mm f/4 or 600mm f/4 lenses, and this
type is also used by pro wildlife photographers. Of course,
the size/weight/price make either impractical for photo
enthusiasts. Some will rent one (from Vistek or Lens Rentals Canada) for a trip to Banff NP, for example, but only
the most affluent will drop $9,000 to $12,000 to own such
a lens. The affordable 70-300mm f/4-5.6 zooms are the
most common entry-level models; customers who become
serious about sports or wildlife photography will later step
up to a better or longer or “faster” (wide aperture) lens.
Anyone who often shoots in low light in a gym or arena
will benefit from a zoom lens with an f/2.8 lens fast shutter speeds at a moderate ISO where the image quality
is optimal. “A 70-200mm f/2.8 zoom is ideal for indoor
sports,” says Vistek’s Pro Products Manager Gary Goldberg.
“And it’s also suitable for use with a 1.4x converter, retain-
ing a maximum effective aperture of f/4.” And in outdoor photography, a 2x converter is useful; the effective
maximum aperture with this accessory reduces to f/5.6 but
that’s often fine outdoors and the camera will continue to
provide autofocus.
For folks who cannot justify the price, size or weight of
an f/2.8 lens, Mark Cruz, Nikon’s Tech Rep, recommends
the company’s AF-S 70-200mm f/4 G ED VR model. Based
on my tests, it’s superb in all aspects. (Canon’s f/4 L IS lens
is equally impressive; Tokina’s model should be available
soon.) Robert Goerzen, a Sales Associate with McBain
Camera in Edmonton, AB, seconds that motion. “An aperture
of f/4 is only one stop smaller than f/2.8, but the lenses are
roughly half the weight and half the price and they provide
equal image quality.” Granted, the effective maximum aperture drops to f/5.6 when a 1.4x teleconverter is used, but
that’s a suitable trade-off for many consumers.
Serious photographers who insist on a longer f/2.8 lens
will love the very rugged new Sigma AF 120-300mm f/2.8
Sport DG HSM OS zoom with image stabilizer and Sigma’s
best low dispersion glass. The ability to shoot at f/2.8 at
any focal length is valuable for fast shutter speeds and to
blur a cluttered background. Granted, at $3,800, it’s not for
everyone, says Marc Gautier, a Brand Manager with Gentec
International. “But the zoom range is perfect for sports and
for some wildlife photography, especially with DSLRs that
Overview
• Much of the gear that’s suitable for sports photography is also suitable for wildlife photography.
• There’s a plethora of equipment and accessories that make it easier to get great photos in even the most
difficult shooting conditions.
• It’s particularly important to bring along the right carrying system: sports shooters, for instance, need
quick access to equipment; while wildlife photographers will often select a backpack for proper weight
distribution when hiking long distances.
32 MARKETNEWS
A best-seller at Winnipeg, MB’s Don’s Photo for great
telephoto “reach” is Canon’s SX280 HS, which offers 12
MP of resolution and 25-500mm equivalent f/3.5-6.8
lens, along with GPS, Wi-Fi, and a burst speed of up to
14 fps.
DIGITAL IMAGING
For those who cannot justify the price, size, or weight of
an f/2.8 lens, a good alternative is Nikon’s AF-S 70200mm f/4 G ED VR model, which the author found
superb in his own tests.
The ability to shoot at f/2.8 at any focal length is valuable for fast shutter speeds, and to blur a cluttered background. But at $3,800, Sigma’s AF 120-300mm f/2.8
Sport DG HSM OS zoom won’t be for everyone.
produce the so-called focal length magnification factor of
1.5x or 1.6x.” As with any f/2.8 lens, the 120-300mm f/2.8
zoom is also very suitable for use with a 1.4x or 2x teleconverter when a long focal length is required.
Goerzen is a strong proponent of the 300mm f/4 lenses
(available from Nikon and Canon) so I asked Cruz about
Nikon’s highly-rated AF-S model. While it’s not equipped
with a VR stabilizer, it offers excellent value at the MSRP
of $1,399, considering its ED glass elements, rugged construction and an f/4 aperture that’s suitable for use with a
1.4x converter. Cruz agrees that it has great potential and
offers an additional bit of information. “Some of the newer
Nikon DSLRs [the D4, D800, D600 and D7100] retain
autofocus with an effective maximum aperture of f/8, so
customers who own such cameras can use the f/4 lens
with a 2x converter with AF. That’s a 600mm f/8 equivalent with a full-frame DSLR or a 900mm equivalent with a
DX sensor camera, for under $2,000, a fraction of the cost
of a long fast lens.”
Zoom lenses will always be more popular due to their
versatility, but most feature smaller maximum apertures.
The Canon EF 100-400mm f/4.5-5.6L IS USM has been
a best seller for years. Comparable models attractive to
serious sports and wildlife photographers include the Sony
70-400mm f/4-5.6 G SSM II and the new Nikkor AF-S 80400mm f/4.5-5.6 ED VR. This Nikkor model boasts significant benefits over the previous AF version, such as the fast
Silent Wave motor, more effective VR stabilizer, and Nano
Crystal Coat for flare control. Nikon’s Cruz adds a comment
on an important feature. “This is our first variable-aperture
zoom that accepts teleconverters.” Of course, a 1.4x
converter causes a one-stop loss of light, making it an f/8
equivalent at long focal lengths. With many cameras, that
allows only for manual focusing, but autofocus will continue
to operate with four recent Nikon DSLRs (listed earlier).
The zooms that extend to 400mm are pricey, however,
making the Sigma 150-500mm f/5-6.3 OS HSM APO
zoom the best seller in the affordable category. “At under
$1,300, it’s a bargain for an awesome lens with image
stabilizer, fast autofocus, and a seven-year warranty,” Goerzen enthuses. “There’s no other comparable lens on the
market, and it’s reasonably small though not lightweight
[1.9 kg] because it’s very solid.” Granted the maximum aperture at longer focal lengths is small but in daylight, ISO
400 or 640 allows for shooting at a fast shutter speed.
With Lowepro’s S&F Deluxe Technical Belt, photographers
can attach S&F or SlipLock pouches to hold accessories or
a lens.
34 MARKETNEWS
Tripods & Heads
A tripod is essential with the long telephoto lenses used
by serious wildlife enthusiasts and rigid metal models
are available at MSRPs under $250. Jason Hashimoto an
Account Manager with Daymen Canada, recommends the
aluminum/magnesium/titanium Slik Pro 700DX with its
pan/tilt head ($165), which weighs a manageable 3.18 kg
but can support up to 6.8 kg of weight. This is a fine entrylevel tripod with all the essential features, and it should be
suitable for a lens up to a 150-500mm zoom.
Over the years, all of my retail sources have indicated
that Manfrotto is the best seller among photo enthusiasts.
The 055 series is particularly popular and it’s available in a
The Slik Pro 700DX is great as an entry-level tripod,
suitable for a lens up to 150-500mm zoom, and for
supporting up to 6.8 kg of weight.
The LensCoat can be used both for protection of a zoom
lens, and for camouflage when shooting wildlife.
broad variety of models starting at an MSRP of $200 for the
basic aluminum 055X. Others in this series include more
features and those with a CX designation are made with
carbon fibre tubes of very high quality. Gentec’s Gauthier
appreciates the vote of confidence from the retailers and
adds, “Manfrotto makes smaller, lighter tripods too, but with
heavy telephoto lenses, the 055 series makes sense; it’s
large enough to stabilize long, heavy lenses.”
In the past couple of years, customers have been willing
to spend more to reduce weight, Goerzen says. “Three
years ago, it was rare to sell a carbon fibre tripod [because
of the price point] but that has changed.” The carbon fibre
Manfrotto 055CX3 ($500 MSRP) is particularly popular,
he says. Prices vary significantly depending on the brand,
with Induro and Benro (both distributed by Gnigami) offering excellent value.
Having tested many tripod heads, I recommend a ball
head for use with a long telephoto. Goerzen agrees, but
adds that it’s important to recommend the largest head
that’s still acceptable in terms of size/weight/price with
plenty of weight capacity for a large camera and lens. In
my estimation, the robust full-featured Gitzo GH1780 QR
Centre Magnesium ball head is ideal, though a bit pricey
(retailing at about $300). “It’s made with magnesium castings and a hollow bubble ball,” Gautier explains. Because
the weight distribution on the ball is even, it cannot be
crushed. This allows for making a large head with light
weight [a mere 35 g] and tremendous capacity [to 10 kg].”
For customers who want to spend less than $200, Goerzen suggests the Manfrotto 400 series. “For a DSLR with a
300mm f/4 or a 150-500mm lens, the Compact 496RC2
would work well; for heavier equipment up to 8kg, the
Midi size 498RC2 would be preferable.”
Gentec’s Gautier finds the joystick type ball head, such as
the Manfrotto 327RC2, particularly convenient. “A conventional ball head does not allow for very fine control while
the Joystick enables you to shift the camera/lens position by
a few millimetres. It’s quicker too; simply press the trigger
on the head to loosen pressure on the ball, realign your
equipment, and release the trigger to re-lock it. Until you try
a Joystick, you do not realize how effortless it can be.”
During bird photography in Florida, I noticed that wild-
Joystick-type ball heads for tripods, like the Manfrotto
327RC2, are ideal for fine control, allowing the photographer to shift the camera/lens position by just a few
millimetres.
DIGITAL IMAGING
life photographers using long/heavy lenses prefer the gimbal style head that provides excellent balance and allows
for simultaneous movement in both the horizontal and
vertical plane. “There’s a huge difference in ease-of-use
compared to a ball head when working with a heavy lens,”
Brogden says, adding that a demo is essential because it’s
difficult to explain its benefits in words. The most popular
brand is Wimberley, but the (Canadian) Jobu Black Widow
is becoming a strong contender. Shooters who shop at a
Vistek store often select one of the more affordable gimbal
heads from Benro such as the new GH2 with 23kg capacity, Goldberg adds.
Alternatives to the Tripod
For the greater mobility required when moving around the
field in sports photography, a monopod makes a lot more
sense. And as Gautier explains, “This accessory also offers
great fluidity; that makes panning with a moving subject
particularly effective.”
Goerzen is a frequent monopod user and he discusses
other benefits. “Instead of hand holding a camera with a
70-200mm or similar lens at shoulder level for hours during an event, it’s a lot more comfortable to leave it mounted on the monopod. It’s also more likely to be allowed
into the stands at amateur sports events since it takes up
little room and won’t interfere with other spectators. And
I find that people tend to give you a bit more space when
you’re using a monopod. At high school or college games
where the fans can get rowdy, they’re less likely to bump
into you when you’re taking shots, perhaps because you
look like a pro.”
Monopods are available in many brands, but Brogden
always recommends a specific model, the aluminum
Manfrotto NeoTec. “The unique design makes it very quick
and easy to extend the leg, without the need to use three
or four individual locks.” Here’s how it works. Press a lever
and pull the leg open to the desired length; release the
lever to lock it. There’s also a foot pedal that’s more convenient while the pod is being used. Step on it to release the
lock and lift the camera/lens to the new position; remove
your foot and it’s securely locked again.
While the NeoTec is very convenient, Gentec’s Gautier
says that budget-minded shooters go for the Manfrotto
679B (retailing for about $75) or the MM294A4 (about $60).
Regardless of the brand, Vistek’s Goldberg strongly recommends equipping a monopod with a small tilting head such
as the Manfrotto 234RC with a quick release system.
Goldberg adds that the carbon fibre monopods have
been selling well in the past two years. “They’re more
Think Tank’s Airport Takeoff is one of many rolling backpacks available that can be easily wheeled through the airport for travel, and converted to a backpack when needed.
expensive than aluminum, but some brands have a lower
price point. We’re doing well with the Benro and Induro
line (both from Gnigami Ltd.). The four-section Benro
C38F Classic, for instance, weighs about half as much as
an aluminum [0.5kg] pod but it has great weight capacity
[18kg].” This one sells for about $130 at Vistek, excellent
value in a high quality carbon fibre monopod.
He also mentions another accessory that’s often used
by bird photographers, the Action Mount gunstock from
BushHawk. “You hold it as if you were holding a rifle and
it provides excellent balance for the camera/lens and great
mobility. You can even walk or run with it when necessary.
To activate autofocus and to take a shot, use the trigger
mechanism,” he explains. There’s a basic model BH-220
but also a Deluxe Kit BH-220D which adds various useful
accessories including a window mount for shooting from
a vehicle. Both models require a special brand-specific remote release cord, which allows for triggering the camera.
Along with the necessary lenses, tripods, and alternatives, Vistek’s Goldberg suggests recommending the
following additional accessories: a padded Gitzo or Manfrotto tripod case for air travel, a Kata rain cover and rain
sleeve that perfectly fits a telephoto lens, and a neoprene
LensCoat. The latter slides onto a telephoto lens (and off
when desired) like a sleeve for protection from nicks and
scratches as well as for camouflage.
Carrying Systems
The bag that’s most suitable when carrying gear that
includes a telephoto lens differs significantly depending
on many factors. However, sports shooters need quick
access to equipment, making a shoulder bag very practical. Brogden also recommends the Lowepro S&F Deluxe
Technical belt, which allows for attaching S&F or SlipLock
pouches to hold accessories or a lens such as the 70200mm f/2.8 zoom.
Wildlife photographers typically use a backpack since
the harness provides weight distribution that’s great when
hiking long distances. Brogden usually demonstrates one
of the Lowepro models, such as the Vertex 300 AW or Pro
Runner 350 AW, but recently, the Flipside Sport 20L AW
case has become particularly popular. “This lightweight
photo/daypack with a comfortable harness allows for access to equipment while you’re wearing it; that’s an advantage over many other packs. At under $200, the 20L AW
includes a tripod holder, adjustable straps, an all-weather
cover, and a huge amount of space; there’s room for rain
gear, for a hydration system and for an iPad too.”
Other backpacks recommended by my sources include
The Kata Revolver 8 PL has a neat feature: an interior
rotating chamber that one can spin to quickly find and
grab the desired lens.
In situations where it’s not practical to try to maintain
focus on a single specific subject, a multi-point AF system
is very useful. During this race, the author used the ninepoint option, which ensured that at least one subject was
always sharply rendered. Photo by Peter K. Burian
the Tenba Shootout series (from Gnigami Ltd.), the large,
full-featured Lowepro Flipside 400 AW and Pro Trekker AW
series, as well as the large Think Tank Shape Shifter (from
Nadel Enterprises). The latter expands/contracts significantly to fit the amount of equipment that’s loaded. Gautier
discusses a Kata pack that’s particularly convenient, the
Revolver 8 PL. It allows for access to some of the contents
without laying the pack on the ground and provides a
unique feature. “The interior has a chamber that rotates
when you open the pack; spin it and you can quickly find
the lens you want to use.”
In my experience, a rolling camera case with a retractable handle is ideal when travelling extensively by air and
they’re available in several brands. Most are soft-sided, but
Vistek has also been doing well with a hard-sided roller,
according to Goldberg. “The NANUK 935 [from Plasticase
in Terrebonne, QC] is also water-tight; it provides great protection for equipment and you can customize the interior
using the foam that’s included.” Of course, a conventional
roller case, whether hard-shell or soft-sided, is used only
while traveling; on arrival at a destination, the user needs
to transfer the gear to a camera bag.
That’s not necessary with one of the rolling backpacks
with an integral handle and wheels such as the Targus
16” Compact TSB750, Think Tank Airport Takeoff, Tenba’s
Shootout Roller series and the Lowepro Pro Runner x350
or x450 AW Roller. “You can roll it through the airport and
then convert it to a backpack by folding the handle into
the bag and opening the harness,” Gautier explains. “Of
course, this type is heavier than a conventional backpack,”
Brogden adds, “but once you’ve used one, it’s hard to go
back to a pack without wheels.”
It’s wise to steer frequent travelers toward carrying systems
that do not exceed the carry-on size: a maximum of 45 linear
inches or 114 cm (total in height, width and depth).
Customers who own or often rent a 500mm or 600mm
f/4 super telephoto should check out the Lowepro Lens
Trekker 600 AW II, says Daymen’s Hashimoto. “It’s very
well built to cushion the equipment, very comfortable to
carry with its torso harness system, and the design makes
it easy to pull out the lens quickly,” he summarizes.
There’s a decent margin in camera bags and it’s worth
ensuring that your customers get just the right one as part
of the “value added” service. “We tell them to bring in the
gear you’re planning to take,” says McBain Camera’s Goerzen. “We’ll load it into various packs so you can try them
on and decide which one is most suitable, just the right
size and the most comfortable for a specific body type. If a
person has a good trip with the right pack, they’ll be back
to see us, and that’s what is important.” mn
MARKETNEWS 35
The New Cash Register:
Mobile POS Changes the Game
RETAIL TIPS
By Vawn Himmelsbach
Retail is changing. Smart companies are now looking for
ways to bring the sale to the customer, rather than the
customer to the sale. From transactions on the sales floor
to maintaining inventory in real-time over mobile devices,
mobile point of sale (POS) is changing the face of retail.
The old-fashioned cash register is becoming passé, as
salespeople ring up sales on smartphones and tablets. In
some cases, customers can even complete the transaction
over their own personal devices.
Mobile POS has a lot of advantages. It cuts queue times
and makes for a more personalized shopping experience.
It can also connect salespeople with inventory in the
back room or in other store locations, allowing customers
to purchase product that isn’t displayed on a shelf. And,
many argue, it’s cheaper to use an iPad with a credit card
reader than a traditional cash register.
But how realistic is it for retailers to adopt mobile POS?
Especially for many of whom are weary from all the
changes they’ve had to make over the past few years,
such as upgrading equipment to accept chip and contactless payments?
Apple’s retail experience has long been considered
an industry standard where salespeople can complete a
transaction right on the sales floor over a mobile device
and e-mail the receipt to the customer. This model is one
many other retailers (and not just CE retailers) are trying to
emulate. And now, the technology is starting to catch up
with the demand.
Case Studies
Big-box retailer Wal-Mart, for example, is currently testing a Scan & Go app in its U.S. stores (Marketnews’ calls
weren’t returned by press time) that lets customers scan
items with an Apple mobile device as they shop. The app
is aimed at reducing long checkout lines.
Coach is using iPod Touch devices in half of its 189 factory outlet stores in the U.S., as well as some of its regular
stores. The company says the additional store space afforded by this initiative will be used for new shoe salons,
as well as other purposes. In Canada, a handful of Coach
stores are currently using mobile POS.
And Nordstrom plans to eventually get rid of cash registers. In 2011, the retailer started using iPod Touch devices
in its U.S. department stores, followed by its Nordstrom
Rack stores (which sell lower-priced merchandise). And
36 MARKETNEWS
Savvy retailers like Nordstrom are already leveraging the power and convenience of mobile devices to help enhance
the shopping experience.
when it rolls out stores in Canada starting next year, those
stores will feature mobile checkouts as well.
“Our number-one goal every year is to improve customer
service,” says Colin Johnson, spokesperson with Nordstrom
Inc. “It’s sounds simple, but there’s no finish line.”
What’s clear, however, is that the customer’s definition
of service is changing. “We know customers want to do
business with retailers who are empowering them to shop
on their terms, are mobile, are using technology to better
enable the shopping experience,” he says.
Initially, Nordstrom rolled out mobile devices to salespeople in order to provide mobile checkout and inventory
lookup capabilities (its inventory platform is set up so salespeople have access to inventory across the entire company.)
But Nordstrom is now looking to add even more functionality. “We think by end of year, the mobile devices
here in the U.S. will have the same capabilities that we
have on our cash registers,” says Johnson. “We have to
continue to build that infrastructure in Canada.”
iPod Touches and iPads are used to shop side-by-side
with customers. But it’s less about the devices themselves
and more about creating new platforms that allow salespeople to be more nimble and responsive, says Johnson.
“You want to work with somebody who can take care
of you anywhere in the store,” he says. “If you’re sitting in
that comfy chair trying on shoes, you don’t have to get up
to go to the cash register.”
A customer could be in a fitting room and the item of
clothing he’s trying on is the right fit, but maybe he wants
it in a different colour. The salesperson can use his mobile
device to look up real-time inventory across stores to see if
the item is available in different colours.
“It’s so dynamic,” says Johnson. “Technology is changing
the landscape so quickly. It gives us more opportunities.”
If a customer saw an outfit he liked in InStyle magazine,
the salesperson could look up that outfit, or find similar
products to create the same look. Or, a bridesmaid in a
Nordstrom wedding suite in one city could Skype with the
bride in another Nordstrom wedding suite, in another city,
while looking at bridesmaid dresses.
“We created apps in the back office that the customer
never sees,” says Johnson. Nordstrom has placed a heavy
focus on social media, and its fastest-growing social network is Pinterest with 4.5 million followers to date. In June
and July, Nordstrom tested out an idea where it featured the
most pinned items from its Pinterest community in its stores.
As part of this, Nordstrom developed an internal app for
the iPad showing managers the most pinned items that
were most relevant to their department, based on inventory availability. “We set up that app so it could tell the
department manager on a store-by-store basis what’s going to be most relevant for you in the store,” says Johnson.
“We don’t want our departments to be defined by a big
clunky cash register,” he adds. “We want to create better
flow and an environment that is set up to better connect with the customer. We don’t want to have barriers
between us and the customer.”
By removing cash registers, there’s more space to refresh
the store environment or put out more merchandise, he says.
When Nordstrom starts opening stores in Canada, they’ll
feature Nordstrom’s newest design concepts, and the company is currently evaluating what the mix will be between
mobile and traditional cash registers.
Nordstrom plans to open a Calgary location in 2014,
a Vancouver and an Ottawa location in 2015, and two
Toronto locations in 2016. “We hope to have more stores
Overview
• Aside from being innovative and “cutting edge,” implementing mobile at retail has other more practical
advantages, like reducing wait times at the checkout, better connecting salespeople with inventory, and
reducing overall transactional costs.
• Innovative powerhouse retailers, like Walmart and Nordstrom, are already jumping on board with mobile
POS, and seeing positive results.
• Pricing will come down, making it possible for smaller retailers to adopt mobile POS strategies.
• The ability to use mobile POS to not only serve customers and manage inventory, but also to collect realtime data, and immediately act on that information, can be a powerful tool for any retailer.
RETAIL TIPS
to add to the initial five, including Racks,” says Johnson.
“Cash registers as we know them today are probably going away,” he adds.
This isn’t to compete with ecommerce, though. The goal
is to be the store of choice, whether online or in-store. “Customers don’t think necessarily in terms of channels,” says
Johnson. “They just know they want a great experience, but
they define it in different ways. We have to be good at both.
Technology plays a role in ecommerce and in-store. It’s
about trying to be relevant on customers’ terms.”
So what are the results so far? Mobile POS has helped
to improve the overall customer experience in its stores.
“When we do that, results follow,” says Johnson. “We’ve had
good results these past few years, and we think that mobile
has played a role in that. All of this works together.”
One For All, All For Cash
At this point, we’re seeing mobile POS apps on smartphones and tablets, as well as dedicated portable POS
systems that are being developed for this “new” cash
register concept, says Paula Rosenblum, Managing Partner
with Retail Systems Research (RSR).
“I was on my Facebook page and I got an ad for a full
POS system. That gives you an idea of how disruptive it is.”
But there are limitations. The tablet is the least expensive
alternative and has more screen real estate than a smartphone, says Rosenblum. But if you want to take cash, you
still need a “real” POS to manage a cash drawer.
“I think there will always be a need for a traditional cash
register for taking cash, (and) managing employee time and
attendance. That one’s a maybe. Or some kind of real computer in the manager’s office. But again, cash is the rub.”
What we haven’t seen much of yet, says Rosenblum, is
one core app that supports the full range of customer commerce points. “I expect to see someone get it done soon.
There are at least two vendors that I know of working on it.”
The challenge, she adds, is there aren’t a lot of really
strong complete systems yet, so retailers might have to wait
a while. “Somewhere along the way, we’ve got to converge
the commerce engine and point of sale into the same
engine. The consumer is blind to that, but it’s important.”
What she does see is a leveling of the playing field
where small retailers can get in at a price that’s not so
Paula Rosenblum, Managing Partner, Retail Systems
Research (RSR): “Somewhere along the way, we’ve got
to converge the commerce engine and point of sale into
the same engine. The consumer is blind to that, but it’s
important.”
Michael Gokturk, Founder & CEO, Payfirma, Vancouver,
BC: “…Real-time data across all channels allows business owners to make instant decisions and have actionable insight.”
onerous. While prices will come down, performance will
go up. “(But) what you do need is to mash up the data so
you can do something with it,” she says.
The virtual experience of completing a transaction can
also translate to the buying experience itself. It’s called
“the endless aisle,” says Rosenblum, and it’s becoming
quite popular among retailers. This allows retailers to treat
inventory as a shared asset, and thus buy less of it while
still fulfilling customer needs.
“I do think there are limitations to this approach, especially if you need to touch or feel or try on the product you
want to buy,” she says. “Perhaps this is generational and
millennials won’t care, but I sort of doubt it.”
From a retail management perspective, however, it can
help retailers better manage their inventory by accessing
data via mobile devices. That has always been one of the
values of mobility, says Rosenblum. After all, retailers have
used two-way radio to accomplish this for many years.
But taking it a step further, retailers can create mobile
dashboards to alert store or department managers to various situations, issues and problems.
Some retailers may want a real-time window
into exceptions happening at the POS (such as
price overrides or an unusually large number of
returns), or an alert that lets them know inventory is getting low, a receipt is on the way, or an
employee can’t make his shift.
“The value is getting the store manager out of the
back room, yet keeping him smart and informed at
the same time,” says Rosenblum.
It’s what he refers to as multi-channel shopping: consolidating mobile in-store and e-commerce into one system.
That means there’s one customer account, with one report,
based on data from all of those channels.
While this arms a retailer with data that can help them
manage the business better, from reducing wait times in
lineups to providing additional staff during peak periods, it
also helps them differentiate by how they engage with
customers.
The idea is to provide an “Apple checkout experience”
for any type of retail store, and even pop-up locations. “It
provides a means to accept payments from customers anytime and anywhere,” says Gokturk. While salespeople can
swipe a credit card, they can also accept cash, cheques
and coupons.
“The best part is the data; it’s one place to get all your
data on your customers (and) your employees,” says
Gokturk. “That real-time data across all channels allows
business owners to make instant decisions and have
actionable insight.”
If a retailer has a particular product that’s overstocked,
for example, this data can be used to design a promotion
and push it to customers who have shown an interest in
that particular product.
And business owners don’t have to be tied down to a
terminal to do this. “They can be in ‘Vegas and log in and
see what’s going on with all their inventory,” says Gokturk. If a restaurant has caviar on the menu, for example,
and the price of caviar goes up, the business owner can
change the price instantaneously, even if he’s not in the
store or even in the same country. If stock is running low,
he can reorder it right then and there.
It also means retailers are no longer limited by square
footage. If a customer wants a product in a certain colour
or size, but it’s not available at that particular store location, a salesperson can check inventory in other store
locations and have it shipped to the customer. “It enables
them to sell more than what’s in-store,” says Gokturk.
Despite the ubiquity of mobile devices, there’s still
education required around mobile POS. Many retailers are
resistant to change, he says, and don’t understand exactly
how this will help their business.
“This is not just another nice-to-have,” says Gokturk.
“This will increase (their) sales.” Typically, he adds, sales
increase by 30% to 40%.
“It allows you to get deep insight into your business, not
just a report in Excel,” says Gokturk. “It’s very visual. (Retailers) can tell at one glance if they’re winning or not and
Pay to Play
Payfirma’s Tablet POS system was developed to allow
retailers to easily load and track inventory using an iPad
and the companion app; and it provides instant ecommerce as well.
There are several companies, including Canadian contenders, that are introducing mobile POS options to fill this
void. While Square is perhaps the most well known, there
are a number of other players developing systems specific
to retailers with a particular need to manage inventory.
The idea behind Payfirma, for example, was to develop an enterprise version of a mobile POS system that
works with iPhone, Android and BlackBerry, says Michael
Gokturk, Founder and CEO of the payment processing and
payment systems company based in Vancouver, BC.
Its Tablet POS system was developed to track inventory,
but instead of buying POS hardware, the merchant can
use an iPad, download the app, take photos of inventory,
and they’re off and running. It also provides instant ecommerce, says Gokturk.
MARKETNEWS 37
RETAIL TIPS
Dax Desilva, Founder & CEO, LightSpeed, Montreal, QC: “It’s no longer good enough to hide behind the counter. Salespeople have to be equipped with mobile technology and be able to interact and be guides and lead the conversation
in the store.”
then they can make better decisions.”
Payfirma is working to bring debit to mobile POS. Currently, you’re not allowed to enter your PIN on an iPhone
because of PCI regulations. That means this can only be
done through a separate device that attaches to your
iPhone. “It’s ugly, it’s clunky, but it’s because of regulations,” says Gokturk. So while the technology exists,
there’s a need to lobby for regulatory change.
Moving at
the Speed of Light
“There’s a big transformation happening in retail,” says
Dax Desilva, Founder and CEO of Montreal, QC-based
LightSpeed, which provides retailers with a fully-integrated,
inventory-centric mobile POS system.
LightSpeed is specifically designed for inventory-centric
retailers, from consumer electronics to clothing, versus a
company like Square that’s focused more on quick-service
food and beverage merchants, says Desilva.
Its LightSpeed Pro system is designed to deliver an
Apple-like experience for retailers, allowing them to use
iPads at the front counter, provide mobile checkout, and
do ordering and purchasing, as well as administrate the
back office. So far, it has 15,000 installations worldwide.
“What we have found in the last year is that a lot of
retailers want to use some of this newer technology in the
stores themselves, but can’t change all of the hardware in
the back office to Macs,” says Desilva. As a result, the company launched LightSpeed Cloud, a cloud-based system
that can be administrated from any kind of computer.
“That makes it easier for retailers on older technology
to move to something newer, leveraging all the benefits
of cloud,” he says, adding this is particularly the case for
larger retailers on legacy technology.
If a multi-store retailer has a server installed in each
store, which is a typical scenario, then users have to log
into that server from another location, usually through
a virtual private network. With cloud, that complexity is
removed.
“All the data is in the cloud, [so] it’s much easier for business owners to work on their business from any device.
If there was a pop-up store during an event, they could
38 MARKETNEWS
easily set up an iPad at the event and run off the same
inventory, [with the] same user accounts,” says Desilva.
It’s also easier for retailers to build around a cloud system with third-party technology. That means if a company
wants to build a connection from LightSpeed Cloud to an
ecommerce system, loyalty program or accounting tool,
they can connect via a third-party developer. That pushes
retail into a more connected space, says Desilva, because
they don’t have to use specific hardware to do that.
Retailers with servers in each store also have to connect
to other stores in order to check inventory. “With a cloudbased system, all the stores in your chain are up in the
cloud and they all know about each other, so to do that
kind of check is much simpler from a technology perspective,” says Desilva.
However, they can also place limits on what employees
can see by setting up specific roles for specific user accounts, he adds.
“It’s no longer good enough to hide behind the counter,” says Desilva. “Salespeople have to be equipped with
mobile technology and be able to interact and be guides
and lead the conversation in the store.”
Your salespeople should never be less knowledgeable
than your ecommerce Website, he adds. If customers are
showrooming and price-comparing, and your salespeople
don’t have the necessary information at their fingertips,
then your store is going to be in trouble.
“With mobile technology, you can offer all of the information, plus you’re adding that human element, which
makes coming to the store a value add, something that
will drive people back into the store,” says Desilva.
“A great example is the Apple Store. [Customers] could
buy all those products on Apple.com, but they come into
the store because the [salespeople] are engaged, they’re
informed, they’ve got mobile technology, they have the
ability to cross-sell.”
That experience is not only more efficient, but it allows
the store to move more products. “At the end of the day, if
retailers don’t adapt to that, they’re going to lose to ecommerce,” says Desilva. But ecommerce will never be able to
compete with this in-store experience, he adds. “If retailers
equip their sales reps with the right tools, they’ll always win
over ecommerce. They just have to make the investment.”
The success of a retailer, however, is largely based on
how well that retailer knows how to purchase, buying the
right mix of products at the right time. “Otherwise, you’ve
got a ton of things you can’t sell and you end up discounting,” says Desilva.
Cloud-based tools can provide analytics and reporting
on inventory across stores. A dashboard, for example, can
show business owners at a glance what’s hot. “Then retailers don’t have to do all their purchasing by gut feel,” he
says. “It builds success into purchasing without having to
try to do it by instinct.”
LightSpeed Cloud can connect to vendors’ catalogues
for easier ordering, tracking and reporting to make better
buying decisions, he adds.
“If you don’t adjust your purchasing according to more
recent metrics, you might be stocking a product line you
thought is really hot and it really isn’t,” says Desilva.
Hello Olli
Consumers know they have a lot of choices now, says
Dean Shortland, Director of B2B Business Development
with Griffin Technology. And they want a strong experience when they walk in a store.
Griffin entered the mobile POS space last year. “We
thought it was a logical progression in a B2B capacity to
start looking at some of those solutions with businesses
moving toward iOS and mobile devices,” says Shortland.
“Predominantly we’re looking at solutions that are intuitive and the merchant controls their POS,” says Shortland.
“If a POS system goes down, minutes equal hours. If
they’re down an hour, they’ve lost sales. Their urgency is
LightSpeed is designed specifically for inventory-centric retailers, allowing for the use of iPads for mobile checkout,
ordering and purchasing, and to complete administrative and back office tasks. With LightSpeed Cloud, the system
can be administered from any computer, not just Apple-based Macs.
RETAIL TIPS
Developed in partnership with Griffin and ShopKeep, Olli is a handheld POS with an integrated 2D barcode scanner and mag-card reader, designed for the iPhone and iPod Touch.
pretty high.”
POSiOS, for example, is a system designed for kiosk
retail, such as restaurants. ShopKeep, on the other hand,
is more compelling within a mobile environment. Griffin
has been working with ShopKeep on a product called Olli,
which will go live in the fall. Olli is a handheld POS with
an integrated 2D bar code scanner and mag-card reader,
designed for iPhone and iPod Touch 5.
One trend right now, says Shortland, is removing the
front counter from the store.
“One of the things we’re finding with tablet-based POS
is the ability for the user to control their own experience,”
says Shortland. “It’s a much more interactive experience.”
The customer, for example, can look at a product on
a touchscreen to see if it’s available in another colour at
another store. “You can do centralized inventory, you can
handle multi-locations,” he says.
If a retailer is using traditional cash registers, moving to
mobile POS is going to require an overhaul, he adds. A
cloud-based system, for example, requires moving data
from legacy systems into the cloud.
“It is a shift, but it gives a merchant much more visibility
and control over their systems,” says Shortland. “It ties into
back office systems, it gives them visibility when they have
low stock, what tax they owe, what trends they’ve got
going in terms of sales. They’ve got real-time data they
can work with, which should result in better operational
management.”
Transacting
Retail is at a turning point where every transaction is becoming digital, says Will Giles, Vice President of Emerging
Payments with MasterCard Canada.
“Going forward, there might not be one way to pay.
What we’re hoping to maintain is the consistency of a
card number and an account,” he says. “A brand like
MasterCard might have multiple ways you can pay with
your card, but you can make payments through traditional
channels and newer channels like contactless and NFC
and in the future cloud-based solutions. The reality is there
won’t be one solution.”
Contactless grows up into near-field communications,
and MasterCard is focused on that market with its PayPass
cards; it has distributed about 30 million in Canada. Those
cards are used with a contactless interface at the point
of sale, and NFC in mobile essentially turns a customer’s
phone into a card. “We call it card emulation,” says Giles.
The POSiOS system is more applicable in environments like restaurants, but
demonstrates the possibilities for mobile POS systems in kiosk retailers.
“The phone is pretending it’s a card.”
MasterCard has rolled out PayPass to 18 of the top
25 merchants in Canada, says Giles. “We hit the tipping
point where we’re starting to roll out at smaller merchants
through natural replacement cycles.”
So what’s next? “Canada is the leading market in the
world for contactless payments and it’s a natural step for
us to move from cards to phones,” says Giles. CIBC and
Rogers have launched an NFC-enabled smartphone, and
that’s the first of many to come, he adds.
There’s also a movement toward digital wallets via
cloud-based options. “The goal of MasterPass is to make
the checkout experience much simpler, faster and more
secure,” says Giles.
It’s better for the merchant too, he adds. And it’s easy to
implement. “It took Porter four or five days to implement
it; the Bank of Montreal took about the same amount of
time,” he says.
“Our vision is that these will converge: shopping at the
store and checkout on your phone,” says Giles.
But he expects that’s still a couple of years away, partly
because retailers are experiencing payment fatigue. Many
are still in the process of upgrading to contactless technology. “Quite frankly, their day isn’t spent thinking about
how to make the payment,” he says.
But adding value for the retailer makes it more appealing, such as incorporating coupons and loyalty programs
as part of that tap-and-go experience. And the mobile POS
experience could offer even more value.
Will Giles, Vice President, Emerging Payments, MasterCard Canada: “We hit the tipping point where we’re
starting to roll out [PayPass] at smaller merchants
through natural replacement cycles.”
“We’re working on ways to make a mobile phone
emulate a POS device,” he says, adding that many POS
solutions, such as Square or Payd from Moneris, are at the
early stages of this transition. “We’re trying to make it so
you don’t have to plug something into the phone; you use
the same secure element as you use for NFC. We’re just
working through getting … certified to do that.”
If a retailer already has EMV and contactless, they’re most
of the way there. But the safest thing to do when in the
process of upgrading is to talk to your acquirer, says Giles.
“I call it future-proofing. Try and get the latest technology so
you’re not always immediately behind,” he says.
While we’re seeing the rise of mobile POS and digital
payments, most industry experts agree this transition isn’t
going to happen overnight, and retailers still need to support cash, probably through a traditional cash register.
But the rise of mobility and cloud is allowing retailers to
differentiate themselves, like Nordstrom with its Pinterest pilot, and provide a high-touch, highly personalized
customer experience. mn
On the transactional side, retailers are already beginning to accept mobile within the shopping experience,
through services like MasterCard PayPass, which allows
customers to use NFC-equipped smartphones with
pre-loaded banking information to pay for items at a
contactless terminal.
MARKETNEWS 39
33
What’s Cooking?
APPLIANCES
By Marc Saltzman
It’s called the “hub of the home” for good reason. The
kitchen is where the family meets at least twice a day,
where friends hang out to catch up, and where the party
always ends up. We come to relax in the kitchen for a cup
of Jo, peek at the family calendar for upcoming events, and
maybe even to sneak a midnight snack. It’s the magic spot
where a grandparent can share classic culinary creations,
and stories, passed on through the generations.
Given how much time we spend in the kitchen, perhaps
it’s no surprise that it’s one of the first places of the home
we want to refresh, whether it’s through buying appliances
for an existing home, or the one you’re about to move into.
In a recent Marketnews feature, we chilled out by looking
at what’s new in refrigerators. Here, we heat things up with
the latest in cooking tools, including ranges, ovens and
cooktops.
Time to Upgrade?
The latest Jenn-Air-branded cooktops have touch-activated controls, a handy power-slider, and a feature called Sensor Boil that selects the optimal power level to quickly bring water to a boil, then lowers when it reaches the boiling
point to minimize the possibility of boiling over.
Vice President of Sales and Marketing, Home Appliances,
Samsung Electronics Canada Inc. And the trend in appliances is to trade up. “Many prebuilt homes have the lowest price appliances, so consumers want to upgrade. Given
that the kitchen is hub of the home, they’ll often look to
premium appliances. We all want to own nice stuff.”
Norm MacNeil, Director of Product and Brand Development, Electrolux Canada, parent company to the Electrolux
and Frigidaire brands, agrees. “For the premium brand
consumer, they’re upgrading to make the home look better. They think it’s a reflection of them.”
There are many factors that go into a purchase, including price and brand loyalty. But design is also key.
“Because the kitchen has become such a hotspot, if you
can pardon the pun, style and design are playing a greater
role in this space,” says Sears Canada’s Senior Buyer for
Ranges and Microwaves, Andrea Arvanitakis. “Having options, like free-standing ranges or built-in appliances, gives
people full control in customizing their space to suit their
needs and create an environment that works for them.
“People want to maximize surface space, so they may
choose to build in a microwave and wall oven combination,” she adds. “Along with creating an appealing, stylish
space, function is very important. A design that flows,
maximizes accessibility, and makes it easy to move about
is paramount. And with all the choices out there, there is
no shortage of options.”
McGowan agrees that design and functionality go handin-hand. “Flat, touch-based controls and flat cooktop and
range elements not only look better than coils, but they’re
easier to clean.” We also believe in stainless steel with
rounded edges as fit and finish is important to us.”
Everyone in the industry knows there are three main
reasons why someone buys cooking appliances, says Laura
McGowan, Senior Brand Manager for Home Appliances, LG
Electronics Canada Inc. When it’s time to replace a broken
appliance, when you’re moving, or when you’re renovating.
On average, McGowan says consumers upgrade large
appliances every eight-to-12 years.
“New construction and existing home sales are two key
drivers, as well as renovations,” corroborates Warner Doell,
Overview
• There are three main instances when people
buy new cooking appliances: to replace a
broken one, when you’re moving, or when
you’re renovating; and the trend is typically to
trade up.
• Consumers seek out trendy designs, but also spacesaving, energy efficient, convenient, and easy-toclean units.
• Aside from small appliances, which lead
the pack in sales, top trends of late in cooking
appliances include induction technology, builtin ovens, and double ovens.
40 MARKETNEWS
Whirlpool recently launched White Ice in Canada, a design principle that’s a variation on the traditional white finish
of yesteryear, and a bold differentiator in a sea of stainless steel.
APPLIANCES
State of the Union
While many feel an upgrade cycle seems to be upon us,
are the numbers in line with this supposed growth?
According to the latest retail sales figures provided by
market research firm NPD Canada, the kitchen appliances
industry, which includes ranges, built-in ovens and cooktops, is up 1% in units sold. But revenue growth is 4% for
the same 12-month period, beginning in May 2012.
“Revenue growth is outpacing unit growth mainly due
to shifts in buying behaviour to higher-end items within
many categories,” says Mark Haar, Director of Consumer
Electronics and Home at NPD Canada.
Broken out by category, ranges, for example, are up 1%
in units and 2% in dollars, while convection ovens are
up 4% in unit growth, now totalling 52% market share.
Cooktops, on the other hand, are up 3% in unit growth
and 10% in revenue.
What’s hot? Gas has seen a major spike in unit growth
at 26% (now with 23% share overall), while induction has
seen 14% unit growth (with a 10% share). Built-in ovens
are experiencing unit growth of 12%, year over year, and
10% growth in dollars.
Whirlpool is diverting from the pack on design, having
recently launched White Ice in Canada, a design defined
by “silver accents, elegant lines, sleek handles and streamlined controls,” describes Gina Flinton, Senior Brand Manager for Whirlpool, Maytag And Value Brands. “It’s a break
from the uniform whites, blacks and the ever-popular
stainless steel. In other words, white is the new stainless.”
Steve Preiner, Director of Marketing, BSH Appliances,
which represents Bosch and 15 other brands, says many
consumers want matching appliances, whether it’s across
one-brand, or at least trying to match handles and other
accents. “Higher-end renos are going with ‘panel-ready’
appliances, so it has a skin that attaches on the door of the
appliance itself and then you apply a cabinet panel to look
like everything else, for a seamless look.”
Norm MacNeil, Director of Product and Brand Development, Electrolux Canada: We haven’t seen year-overyear strength that we’d like. Freestanding [appliances]
are better one month, then built-in another month, plus
or minus, but not anything significant at all.”
Small Appliances
Lead the Pack
Though customers are supposedly actively looking for
premium options and new designs, many retailers and
manufacturers admit that they aren’t really seeing this
reported modest spike in unit and dollar sales.
“The Canadian retail market is slightly down,” says Eldin
Kajevic, Senior Merchandise Manager of Major Appliances
at Future Shop. “With the housing market cooling off, most
customers seem to have put kitchen renovations on hold
and are focusing on replacing what’s broken down.”
While the builder market is “still strong,” adds Kajevic,
“the lack of renovations seems to be the key reason for
flat performance in the stove and oven market. Both gas
and electric ranges are expected to have flat to negative
sales for the rest of the year, while the built-in segment
will continue to grow, primarily led by cooktops and
wall ovens.”
Arvanitakis says, however, that the Canadian marketplace did not suffer the same drastic declines as seen in
the U.S. marketplace.
“It has been down only marginally versus 2012, and
at Sears, we’ve managed to gain a slight increase in the
cooking category.”
Manufacturers like KitchenAid and Jenn-Air also observe
that the housing market is “cooling off.” Senior Marketing
Manager Aleksandra Hoszowski says the Canadian industry is “experiencing a slight decline in the overall range
The countertop kitchen appliances industry, on the flipside,
is doing “very well” according to Armin Begic, Account
Manager for Home Appliances at NPD Canada.
From January to May 2013, small kitchen appliances
experienced a 13% growth compared to the same time
last year. (Though Begic concedes there was an extra week
in January this year, which will help 2013 numbers somewhat.) Almost all countertop appliances are performing
well, including microwaves, coffee makers, food processors, deep fryers, toasters and toaster ovens. (Interestingly,
none of those with whom we spoke were keen on discussing microwaves, implying that the category is either stable
in its traditional replacement cycle, lacking innovation, or
simply not a focal point going forward.)
Overall, countertop appliances are now a $391 million
dollar industry (as of June 2013), with, as Marketnews has
noted in previous features, coffee machines blowing up,
accounting for more than half of that, at $209 million,
says Begic.
In fact, deluxe coffee makers, including single-serve
“pod” machines from Keurig and Tassimo, have grown by
18% in dollars, and are up 30% in units as at June 2013,
compared to the same time last year. (The disparity between dollar and unit growth is tied to the fact the average
unit price has dropped.)
Health-oriented categories are also doing very well, says
Begic, including blenders (up 24%) and juice extractors
(up 188%), which have grown from a 3.5 million dollar
business to about 10 million. (Though not necessarily used
for “cooking,” per se, they fall into the countertop appli-
Gina Flinton, Senior Brand Manager, Whirlpool, Maytag,
& Value Brands: It’s a break from the uniform whites,
blacks and the ever-popular stainless steel. In other
words, white is the new stainless.”
Armin Begic, Account Manager, Home Appliances, NPD
Canada, says countertop appliances are now a $391
million dollar industry, with coffee-related machines accounting for nearly half of that, at $209 million.
Mixed Messages
Double ovens are all the rage these days. They can, like
this model from Thermador, not only cook and bake
more at once due to larger capacities; but also boast
other benefits, like only having to use one side of the
oven versus the large cavity when necessary.
and stoves segment. But built-in wall-ovens, although a
much smaller-sized segment, continue to grow.” This trend
held true last year as well, she adds.
MacNeil attributes the flat sales to being mostly economically driven. “We’re not completely over economic
hardships…not quite the confidence we’d like.”
As a result, MacNeil says new house construction is still
“relatively slow. We haven’t seen year over year strength
that we’d like,” he notes, adding that there’s no real
consistent growth in one particular product category over
another. “Freestanding [appliances] are better one month,
then built-in another month, plus or minus, but not anything significant at all.”
LG’s McGowan sees gas-based appliances as being up
“slightly. While we can’t reveal numbers, LG is tracking
above the industry right now. There’s growth for us because we’re the new player, but it’s true the electric market
is flat except for ranges over $800.”
MARKETNEWS 41
APPLIANCES
ances category.)
Scott Gage, Merchandise Manager of Small Appliances at
Future Shop,, says the hottest countertop cooking gadget
in small appliances is juicers. “We see this as a growing
segment as the market trend is clearly shifting towards
healthier eating and living, and consumers are looking for
solutions to help them get there.”
Gage says Future Shop offers a strong assortment of
juicers from the likes of Breville, Hamilton Beach, and Kenwood, with plans to continue to expand the assortment.
Another health-conscious product category that has seen
success is “low oil” or “oil-less” deep fryers, which are up
30% year over year, says Begic.
Hoszowski says its hottest countertop cooking gadget
continues to be the KitchenAid Stand Mixer and its addons, which include an Ice Cream Maker, Citrus Juicer and
Sausage Stuffer. It’s ability to be a multi-purpose tool, Hoszowski notes, adds to its attractiveness, because it means
consumers don’t need multiple countertop appliances to
achieve the various tasks.
Induction Heats Up
Whether it’s cooktops built into a counter or island or
freestanding ranges, “induction” is proving to be one of the
hottest trends in cooking.
These flat-top products use induction heating, which
relies on a micromagnetic field to directly heat a pot or
pan, as opposed to using heat transfer from electric coils
or burning gas as with a conventional stove.
Preiner says induction in cooktops is “huge. It’s a different way of cooking, with many advantages.”
For one, induction cooktops are very fast to heat, like
gas over electric coils. But unlike gas, there’s no radiant
heat off the sides of the pot or pan. “As a result, induction
is extremely energy efficient as you don’t waste heat,”
says Priener. “Plus there’s a safety factor because there’s
no heat unless a pot is present. And it’s intelligent enough
to know a metal ladle is not a pot and therefore won’t
heat up.”
Preiner says induction offers more cooking control not
typically found with gas cooktops or ranges: “You can
set an ultra-low setting for things like melting chocolate
or cream without burning it.” Bosch also offers zone-less
induction, explains Preiner, which lets you put a pot or
pan down anywhere on the flat surface instead of having
a dedicated burner. “And it’s no problem to move the pot
around to make room for another one.”
In addition to the aforementioned advantages, Samsung’s Doell points out that induction is easy to clean,
referring to the flattop design instead of gas grates or
electric coils. which is a major plus. “We all like to cook,
but hate to clean.”
Many appliance retailers are onboard with induction.
“Customers who are unable to have natural gas connections love how fast induction ranges can heat or cook
food, and its safety features,” says Future Shop’s Kajevic.
However, he notes that, in terms of the overall volume,
standalone electric ranges are still the largest segment.
Doell notes that induction cooking has been prevalent in
Europe for some time now. “Almost 40 per cent in France
alone,” he states, and it’s now “gaining traction” here in
Canada.
Induction has been on the market for some time now,
though price has been one of the major barriers to widespread adoption. LG doesn’t yet offer induction in its freestanding ranges, and a representative from the company
told Marketnews at a recent holiday event in Toronto, ON
that the company was taking a “wait and see” approach
to induction technology with freestanding ranges, adding
that induction “doesn’t sell well unless it sells below cost.”
But he added that LG does have plans for induction “down
the road” once pricing comes down.
Sears’ Arvanitakis says that induction cooking is growing
in Canada at a greater speed than the U.S. “It does typically play in the higher price points, but consumers that
make this purchase often rate their overall cooking experience as exceptional.”
Indeed, Hoszowski notes that, “the price gap between
electric and induction continues to shrink.”
But not everyone is bullish on induction.
Yury Riguero, President of Barcelona Home Appliances,
with two retail stores in Toronto, ON, feels that the still
high price of induction “could discourage people buying
into it” adding that it “also could be more costly to repair
[than other cooking technologies]. And people aren’t
aware induction cooktops and ranges only work with
specific cookware, too, which could be a deterrent.”
As a result, Barcelona Home Appliances only sells ceramic flattops at this time, mostly from LG.
Seeing Double
Double ovens are one of the latest trends in the cooking
appliances space, with the ability to cook two dishes at
once at different temperatures, or only heat up half the
LG’s LDE3037 Freestanding Electric double oven (MSRP
$1,999), which has an Infrared grill technology in the
upper oven and convection in the bottom in a total of
6.37 cubic feet, addresses a main concern with the market: the need for easier cleaning, with its new EasyClean
technology.
oven when needed.
“Instead of waiting for a huge oven to heat up,” notes LG’s
McGowan, “you can use a smaller oven to heat up, say, a
chicken breast for the kids or to bake a tray of cookies.” She
likens the option to a replacement for a toaster oven.
“It’s all about flexibility as you may choose to cook
chicken on the bottom and bake an apple pie on top,”
says Doell of Samsung’s Flex Duo oven. There’s typically
no odour exchange with double ovens, which means a
dinner and dessert can bake at the same time, without
one smelling or tasting like the other. “But if you need to
cook a large turkey or big roast,” Doell adds, “you can take
a shelf out.”
Because of its extra-large capacity, Sears’ Kenmore Elite
double oven slide-in electric range can be used to “bake
up to 108 cookies all at once,” says Arvanitakis, “or bake
your casserole in one oven, while preparing a full-size
turkey in the other.”
Frigidaire’s MacNeil also points to the energy saving
potential of using a double oven.
“…You’re saving electricity compared to heating up a
large cavity you don’t need 90 per cent of the time.” Some
of Frigidaire’s models can preheat in just four minutes.
And customers are asking for double ovens, says
Riguero from Barcelona Home Appliances.
“…With life being very busy now, there’s no need to wait
for a big oven to warm up just to defrost a small frozen
pizza,” he says.
Steam Clean
Samsung’s Slide-In Flex Duo range has a shelf that
allows you to cook two things at two different temperatures, without odour transfer, which means one shelf
can be used for dinner, the other for dessert.
42 MARKETNEWS
Built-in wall ovens, although representative of a smaller
segment of the market, continue to grow; 12% yearover-year in units and 10% in dollars, according to
NPD Canada.
Preiner acknowledges that convection ovens remain a
popular pick. And now many include a steaming option,
too, for a “best of both worlds” scenario.
“Steaming retains moisture and vitamins and prevents
foods from getting dry, such as an overcooked chicken.”
This won’t happen with steam, which is why steam cooking is growing. “It’s very versatile.”
Hoszowski agrees, adding the health and taste benefits
APPLIANCES
that come with it as additional draws to the technology.
“With steam and convection, consumers will be able to
steam their fish dinner and then broil it for a golden brown
finish at the end of the cooking cycle.”
However, most of the attention these days when it comes
to steam and ovens is on the cleaning aspect, and how it
helps to aid in clean-up quickly and more efficiently.
“We’ve had ‘steam clean’ for several years now,” explains Samsung’s Doell, “where you pour a cup and-a-half
of water, turn it to steam clean cycle, and in 20 minutes,
it will clean it all before you wipe it out with a damp cloth.
We’re not talking three hours at several hundred degrees
and getting that odour and smell.”
“One of the biggest trends we’re seeing is around oven
cleaning,” says Whirlpool’s Flinton. “For most, this is a
huge chore that tends to get done once or twice a year;
usually after a holiday dinner or before a big family gathering; and the process gives off a lot of heat, takes forever,
and has a tendency to smell.”
To combat this, Whirlpool created a technology called
AquaLift Self-Clean, which, along with the porcelain coating on the interior, delivers odour-free oven cleaning in
less than an hour, says Flinton, as opposed to three-to-six
hours for a traditional self-clean cycle.
“When the cleaning cycle is complete,” she notes, “soils
and excess water can be easily removed with a dry towel.
In addition, unlike most ovens, you can still use the cooktop while the self-clean technology is working its magic.”
LG also has a fast and energy-efficient way to clean
ovens, especially for “light to medium cleaning jobs,” says
McGowan. Simply spray water within the cavity, which is
made of LG’s own porcelain design, at a lower temperature and with no chemicals, to clean the oven.
Similarly, MacNeil says its Frigidaire and Electrolux
ovens capture 78% of odours and particles that’s often
associated with self-cleaning ovens. “Remember, we used
to never do it before company came over because of the
smell, but now it doesn’t matter.”
Freestanding vs. Built-in
It seems there’s growth on both sides of the full-sized oven
fence.
The slide-in range category is seeing growth, says Samsung’s Doell, citing as much as 10%.
“These ranges look like a built-in, with controls conveniently on the front, but they slide into your kitchen setup.”
But Future Shop’s Kajevic says, “customers who are making major kitchen renovations are more frequently opting
for higher-end wall ovens and cooktops. The percentage of
cooktops being attached to wall ovens is growing.”
And induction isn’t the only hot (pun intended) new tech
here: McGowan says LG has an infrared grill in some of its
ovens, where the broil element is, which heats up fast and
offers higher intensity heat. “It’s similar to the tech used in
industrial barbeques, and cooks fast as it sears the meat.
It’s like an indoor barbeque solution.” It’s smoke-free, the
LG rep told us at the Toronto holiday event, and can “grill a
steak in eight minutes.”
nologies could help drive consumers to refresh their large
appliances, as they’ve been doing with the small ones.
The popularity of home décor and renovation television
programs also can’t be discounted in terms of the impact
they’re having, as they show what’s possible in even the
very basic of home kitchens.
“While replacement units, kitchen renovations, and new
home purchases continue to be the top drivers, culinary
pop-culture is certainly helping,” says Hoszowski. “Between
the Food Network Canada channel and a number of popular cooking competition shows, Canadians are certainly
interested in cooking.” mn
Prime Time
Growth in the cooktop appliance market hasn’t been stellar, by any means. The upgrade cycle time is long, and
consumers won’t fork over the dough unless there’s a
really compelling reason to do so. In some cases, at least
on the premium side of the market, the latest designs, and
innovative (not to mention energy saving) cooking tech-
LG’s LMP1171SS auto-defrost countertop microwave
with oven (MSRP $299) incorporates a pull-out tray on
the bottom that can be used for baking pizza, cookies, or
heating up frozen foods, without having to heat the full
microwave.
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brandsource.ca
SHOP TALK
by Wally Hucker
Got a retail story that should be told? Contact Wally Hucker at: [email protected]
FUTURE SHOP BRINGS 400 STAFF TO TORONTO
FOR HOME AV TRAINING
Sara Tattle, Senior Director of Consumer Sales, Consumer Sales Division, D-Link Canada was on hand to demo some
of the company’s latest initiatives in home monitoring, automation, security, communication, and entertainment.
Future Shop Home Theatre and Audio Products Experts
and ConnectPro staff from across the country, plus headquarters staff from BC, congregated in Toronto, ON on August 14, for a one day vendor show and training marathon.
Thirty or more vendors, some with more than one booth,
exhibited and explained their latest offerings in a ballroom
at the Sheraton Centre downtown opposite city hall.
Although home theatre and audio categories were
headlined, and video was where most innovation was
evident, there was significant and interesting presence of
interconnectivity, easy automation, and simple security
systems. Interesting was the emphasis of the term UltraHD, or UHD, rather than 4K for the new generation of flat
panel televisions. The consensus is that UHD resonates
more with consumers.
Most mainstream media attention seemed to focus
on LG’s 84-inch set. The 84LM9600, as one wag put it, is
indeed “big for its size.” However, as Torsten Spahr, Home
Electronics Marketing Manager for LG Electronics Canada,
explained to Marketnews, his company considered the Canadian introduction of the new LA9700 and LA9650 sets
their big news of the day. Just as Sony debuted its 4K sets
last November, at Future Shop, LG chose to use this venue
to launch these 9700 and 9650 series sets. Each line has a
55-inch and a 65-inch model.
While the LA9650 sets lack the bottom-mounted motorized 4.1 speaker and camera of the LA9700 line, they
retain the pixel count along with fixed 2.1 speakers and
16GB of memory for DVR functions. While LG’s Cinema 3D
technology, which allows any digital image source to be
up-converted to 3D, has been licensed to other TV manufacturers, another feature of the technology is unlikely to
be promoted by other brands. Any video game, from any
platform, which has a split screen multi-player function,
can be displayed to two players in full and separate screen,
on one set. Proprietary LG passive 3D glasses allow player
A and B to duke it out in high res on a full screen.
The 9700 line will be introduced this month, and the
9650 in October. Prices were not specified, but industry
analysts expect they will
Many vendors, including LG, were making much of
“future proofing” their products so that improvements in
technologies would not impose a performance penalty
on early adopters. Accepting 4K broadcasts when they
become available is just one example. Jean-Pierre Jutras,
Training Specialist/Team Lead at Samsung Electronics
Canada, showed off the company’s Evolution Kit, which
was announced last year. Consisting of a universal smart
remote control and a black box with proprietary circuitry
and connections, the Evolution Kit allows successive
upgrades of Samsung sets as new features are introduced.
“For example,” says Jutras,“if the owners of a 2012 model
wants the addition features of the 2013 sets, such as the
ability to display five pages instead of one on-screen at
one time, they can use this kit to do so.” The $350 kit will
upgrade sets over a four-year lifespan.
Similarly, Monster Products was touting its Ultra HD Black
Platinum cable as a bulwark against obsolescence. The
series is capable of data flow of 27 GBs per second, while
full 4K/UHD at 60 Hz is currently 22.5Gbps. Scott Klassen
and Michael Owens, the company’s Western and Eastern
Canadian Sales Managers, respectively, state that the Monster guarantees the cable against obsolescence, and if there
is ever a signal the cable cannot handle, it will be replaced
with a new generation Monster cable which can.
Belkin, D-Link, and Logitech all introduced economical
plug-in modules for home monitoring, automation, security, communication, and entertainment. Among other
stalwart exhibitors at the event were Sony, Sharp, Panasonic, Toshiba, Epson, Erikson Consumer, Sonos, Yamaha,
and Gentec with Klipsch. Exhibiting first time at a retail
show was Activated Décor. This Hamilton-based company
jumped into motorized high quality audio-video cabinetry last year, after a decade of manufacturing motorized
lifts and exporting most of them to the U.S. Founder Jerry
Sorbara says that his line-up of eight solid wood models
is hand made by Mennonite craftsmen near Kitchener.
Another eight models will be introduced with the next
quarter. All of the lifts are guaranteed for five years.
Kudos to the diligence of the Future Shop employees. Although many of them were jet lagged, and had to pack up
and catch the airport bus in late afternoon, they conscientiously made the rounds of the exhibits, enduring competing programming at high levels to take notes on what they
will be offering their customers this holiday season.
Torsten Spahr, HE Marketing Manager for LG Electronics Canada, poses with the manufacturer’s massive 84-incher, though the
Canadian introduction of the LA9700 and LA9650 sets was the highlight news of the day.
DEALERS 18 & 19 FOR SONXPLUS
Sonxplus increased its storefronts by more than 10%
when two new dealers opened recently. One store is in the
Gaspé region of eastern Quebec, the other southeast of
Montreal in Chambly.
Steve Dubé and Jean-François Brisson are the new coowners of Sonxplus Rimouski, as the store is called since its
reopening on August 24. Under retired former owner Michel Charette, it was known as Électronique LTS for almost
two years, when affiliated with Centre Hi-Fi Groupe Select.
Prior to that, Charette was a Dumoulin franchisee for many
years. In total, he operated the shop for 33 years. He closed
up shop in March, and agreed to stay on with Dubé and
Brisson for three-to-six months to ensure a smooth and
seamless transition in the community.
In Chambly, Christian Robitaille, along with junior partner
Maxime Bernier (no, they say, not that dunderhead Harper
Government minister who left confidential documents at
the home of his girlfriend who had been pre-enjoyed by an
outlaw motorcycle gang) have closed up a moribund mall
location, and moved to a busy intersection storefront with
more than twice the space at half the rent. Formerly operat-
44 MARKETNEWS
ing as Le Mur de Son (The Wall of Sound) and a sticker banner of Le Clef de Sol, the new shop will be called Sonxplus
Chambly. Robitaille joined the business founded by his late
father in 1982, and Bernier has been with it nearly eight
years. The opening was slated for the first or second week of
September, with a grand opening a month later.
The grand opening for the Sonxplus Rimouski is set for
September 24. Dubé has seven years experience in consumer electronics retailing at Bureau en Gros, as Staples
Canada outlets in La Bell Province are known. Brisson put
in a decade at a Clef de Sol franchise.
Their remodeled shop at 150 Avenue Belzile is 1,600
square feet plus warehouse space. Staff complement is
six, working in an open concept with no separate sound
room or cinema. The shop is strong in IT, and will branch
into home automation and custom after Christmas. TV
lines include Sony, LG, Panasonic, Samsung, and Toshiba.
Yamaha, Pioneer, and Cambridge Audio are among the
sound selections. No 12V electronics is handled.
Next issue, after the Chambly store has held its grand
opening, we will pay it an in depth visit.
Christian Robitaille and Maxime Bernier have moved their
store, now called Sonxplus Chambly, from a mall to a locale
nearby a busy intersection with more than twice the space at
half the rent.
SHOP TALK
STEREO PLUS & DESIGN PAR CABLE & SON
OPENS OFFICIALLY WITH CHIC SOIRÉE
A brand new Stereo Plus & Design held an RSVP evening
on August 20, to officially open in St-Hubert, a south
shore suburb of Montreal, QC. In setting up shop in a
brand new location under a new name, partners Ghislain
Lacasse and Marie-Josée Huard doubled the size of their
shop. The soft opening was a month earlier as reported
on Marketnews.ca.
This elite banner from Groupe Stereo Plus specializes in
a strong component of custom design and installation.
The store is the second under the Stereo Plus & Design
banner. Its official name is Stereo Plus & Design par Cable
& Son. The new shop occupies 5,000 square feet, and staff
complement was increased from seven to a dozen.
Lacasse and Huard hosted 150 guests at the soirée from
5 to 10 p.m., including media members, designers and
architects, and reps from most of their vendors. Among
attendees were Vince Bruzzese from Totem Acoustic,
auditioning that company’s loudspeakers, and Dale
Mackintosh demonstrating, (what else?) McIntosh Labs
amplification equipment. As befits a reopening of the largest Control4 dealer in eastern Canada, Stephane Doucet
was on hand as well.
A contingent from Groupe Stereo Plus’ corporate HQ
in Trois-Rivieres was on hand. This included: Johanne B.
Paquin, Administrative Vice President; Daniel Lefebvre,
Director of Business Development; and Paul Sylvestre,
Marketing Manager.
Special celebrity guest was Marie-Christiane Lavoie, a
designer and Quebec TV star on CanalVie. Cable & Son, as the
previous custom integration business of Lacasse and Huard
was called, was Lavoie’s official provider of electronics. Among
electronics highlighted during the evening were Samsung’s
new 85-inch UHD set, and Sony’s new 4K projector.
Lacasse and Huard actually opened this new location in
a manner backwards from most CE stores. A dozen years
ago, they founded the successful Cable & Son custom and
domestic automation operation. Cable & Son joined with
Groupe Stereo Plus a little over a year ago, originally intending to adopt the sticker banner of Zone Éléctronique,
as they got their feet wet in retail. They had previously
been affiliated with Alliance Éléctronique, the sticker banner for Groupe Sonxplus’ custom specialists.
Lacasse says he and Huard responded enthusiastically
Now at 5,000 square feet; double the size of its previous location; Stereo Plus & Design par Cable & Son, as it’s now known,
will continue to specialize in custom design and installation.
From l-r: Daniel Lefebvre, Andre Daniel Giroux, Ghislain Lacasse. Johanne Berger Paquin, Marie-Josée Huard, Benoit Dumont,
Stéphane Roy, Paul Sylvestre are on hand to mark the official opening of Stereo Plus & Design par Cable & Son in St-Hubert, QC.
to a mere suggestion from Lefebvre to consider the Stereo
Plus & Design concept. Already desirous of increasing their
retail presence, the pair decided to jump in with both feet,
or perhaps that should be all four feet. Not content doing
things by half measures, they moved from the south shore
suburb of Greenfield Park to new digs in St-Hubert, where
3,500 square feet of the ground floor is given over to retail.
Upstairs, 1,500 square feet is devoted to offices for custom
and automation design and sales, as well as administration.
While the old Greenfield Park Shop closed a month ago, custom and automation services continued from the new digs.
The five new hires consist of Jonathan Hamel as Director of Sales, three sales persons, and another technician.
Hamel was formerly with Germain Lariviere, a large
furniture, appliance, and electronics retailer, where he was
assistant director of sales. Previously, he was director of
purchasing, electronics at Lariviere.
Hamel and his crew arrived at the new location with new
suppliers Marantz, McIntosh, and Sony. Also on the roster
are a wide range of brands with which the shop is sticking,
including: Denon, Epson, Focal, JVC, Klipsch, Lutron, Mitsubishi, Monitor Audio, NAD, Panasonic, Pioneer Elite, Samsung,
Sennheiser, Sharp, Sonos, and Totem.“We are also the biggest Control4 dealer in eastern Canada,” says Lacasse.
Stereo Plus & Design by Cable & Son, as the full moniker
runs, is open seven days a week. It will have a grand opening on August 20th. For now, events planned are secret,
says Lacasse.“But for sure we will be special.”
As mentioned above, this is the second location of a
Stereo Plus & Design bannered store. Over five years ago,
Carlo and Gina Urbisci opened Stereo Plus & Design Orleans
in a southeastern Ottawa suburb. Shortly after Lacasse and
Huard have their grand opening, the Urbiscis will open the
third Stereo Plus & Design, in the western suburb of Stittsville, to serve that growing community and Kanata.
Two days after the grand opening, the store commenced
a 10-day opening sale. They sent out 170,000 flyers to
announce it.
A total of 150 invited guests attended a grand opening soiree, including media members, designers, and architects; plus vendor
reps and, of course, staff.
GLUBES AVU ACQUIRES “SELECTED ASSETS” OF UBERHOME
In July, Glubes AVU in Dartmouth, NS, acquired “selected
assets” of local custom specialist uberHome, says Glube’s
Co-owner Kevin Sawler.
“We acquired a small amount of product,” he says, noting the company was not in protection and that there
were no acquisition issues,“but primarily the intellectual
talent of Shane Wamboldt.”
Formerly the Co-owner of uberHome,Wamboldt was
46 MARKETNEWS
brought onboard as the manager of custom installations, and
also is designated as the manager of outside sales at Glubes.
Like many CE dealers, notes Sawler, Glubes is fast becoming “a custom house that does retail,” although he adds
that a strong retail side is very important to its custom
business. Acquiring uberHome allows Glubes to kill several
birds with one stone. Not only does the internally-generated custom business benefit from an extra hand to cope
with its growth, Glubes kept alive the name uberHome,
which has a cachet among professionals such as architects, designers, and interior decorators, thereby bringing
in more custom business from a different market segment.
“We now have a specific face for those professionals,”
says Sawler.“It lends an air of professionalism. Shane also
brings in contacts from the Nova Scotia Home Builders
Association as well as independent builders.”
SHOP TALK
THE SOURCE HOLDS CONVENTION & BUYING FAIR
The Source held its annual Sourcefest convention and
dealer buying fair at the Toronto Congress Centre on
August 20. The retailer became a unit of Bell Canada Enterprises when the latter’s 2009 purchase of selected assets of
InterTAN, the parent company of The Source by Circuit City
which was in CCAA protection due to the bankruptcy of
its own parent Circuit City in the U.S. The price was US$135
million including the leaseholds of 493 corporate stores.
The dealer network of 263 franchise outlets at the time
was specifically excluded from the deal.
Given that most of those dealers have been terminated
or withdrawn from The Source, Marketnews intended to
attend Sourcefest 2013, as it did with Future Shop’s home
theatre and audio event noted elsewhere in this column,
to get the company’s take on the market and its direction. However we were informed by the Retail Marketing
Manager Agnes Roter that,“Sourcefest is an internal event
and is not open to members of the media.”
Current store count is, according to Wikipedia,“over 700,”
which is almost 10% less than it had in 2009. The company
announced it would open another 20 stores this year. The
MINI RETAIL Q&A
Name: Cory Welsh
Company: Automation Ease
Years in the Industry: 12 years, with three years as a Regular
Force Member for the Royal Canadian Navy, and one year in
the Royal Canadian Navy Supplemental Reserve.
Hobbies: Electrical engineering, audio/videophile, skiing, flying,
and automotive off-roading
TALES FROM THE FLOOR
“This happened just the other day,” volunteers Jonathan
Hartlen, proving that good CE stories are not a thing of
the past. Hartlen is the General Manager of Glubes Audio
Video Unlimited, in Dartmouth, NS. He notes that while
Glubes is a classy store, it is located in what is deemed a
rough part of town. So while surprised by the encounter,
he wasn’t totally shocked.
“This guy came in,” Hartlen recalls,“and he was asking
me about an expensive system for his yacht, and talking to
somebody else on his cell phone at the same time.” While
this behaviour may be somewhat rude and even considered boorish, it is not particularly noteworthy or even
uncommon these days.
This particular individual carried his unpleasant behaviour further however. Both his conversations were punctuated with profanity, and he was particularly belligerent
towards Hartlen. The potential customer issued imperatives like “Tell me why this is worth 25 grand, and don’t
give me no dumbass reasons.”
In an attempt to get to know the man, and his seagoing
audio/video needs, Hartlen asked what he did for a living.
“What I do is illegal,” replied the man with a slightly menacing edge in his voice.
Nonplussed, Hartlen carried on, and eventually asked the
name of the boat in which the system was to be installed.
Upon hearing the boat’s name from the bellicose body
before him, he couldn’t help but smile. In fact, it was all he
could do but keep from laughing.“I know the owner of
that boat,” Hartlen notes.“He’s a client of ours. In fact, I was
on that boat with him in the far east recently.”
When apprised of the relationship between Hartlen
and the boat’s owner, the shopper’s demeanor abruptly
changed.“Uh, I’m looking for a system for a friend,” he
blurted, if not deferentially, at least less belligerently.
His occupation changed too.“I’m a diver,” he stated. Apparently his illegal activity is just a sideline.
Hartlen treasures the memory of the encounter as a perfect instance of a boor being hoisted by his own petard.
chain also franchises 700-square-foot stores-within-store
operations within other businesses such as car dealerships
and computer repair shops. Since the express concept was
introduced last year, at least 10 of them have opened.
How did you get into this industry?
While trying to pay for my pilot’s license training, I got a job at HiFi Centre in Whitby, ON as a car stereo installer, and branched
into home installations. I immediately fell in love with the work.
If you were not in this industry, what would you be doing?
Flying commercial airliners.
Tell us about an interesting encounter you have had in your retail business career.
I was working for an AV shop back in the day, and I installed this large theatre system in a multipurpose room for a family
that likes to entertain frequently. The equipment we installed was from good quality lines, but the gentleman of the
household, while entertaining, liked cranking the system to its max without adjusting the system out of ‘Surround’ mode.
This unfortunately screamed out the centre channel, and as the receiver clipped [started producing square waves], it
started sending DC voltage through the line, which destroys the tweeter. After warrantying the centre channel a couple
times for him, we decided to warranty it one more time, but convinced him to pay the difference of an upgraded speaker.
This speaker was nothing special compared to the original speaker. But we were able to modify the tweeter of the speaker to protect it from further distortion abuse and destruction. This actually was a simple mod. We removed the tweeter
and soldered a 12V cylinder light in to short the positive and negative leads together. This actual use is a good practice,
as it does not change the sound of the speaker during normal operation, but it does ‘drop’ the use of the tweeter during
distorted or clipped use, protecting it and allowing the tweeter to chime back in once the receiver is adjusted back into
normal operation mode. A cool side effect is that when the receiver starts to clip, the voltage is bypassed through the
light and it glows to the beat of the tweeter. This was not overtly noticeable as the light is contained within the speaker
box. We have since never had an issue with that customer, and he has not changed his ways.
Do you find trade shows worthwhile? Why or why not?
Trade shows are definitely a good thing. Trade shows allow product recognition on a mass scale. I go to and participate in
as many trade shows as I can. Trade shows are also good for charitable actions and contests to drive interest.
What would you deem the most influential product introduction of your time?
I would say LCD rear projection and DLP rear projection TVs. I feel these TVs are what started and pushed the drive to
make the big screen TV more cost effective for people. I remember when a 26-inch CRT was considered ‘big screen’ TV,
then the 50-inch became the new ‘big screen,’ and now it is 60-inch that is considered the ‘big screen.’
Which was the best year of your life in the industry and why?
I would say my most exciting year in my career was after I completed Electronics Engineering Technician from Canadian
Forces Naval Engineering School (CFNES) and got to work on a Canadian Warship for the first time. Working with all that
powerful equipment, and being relied on to use it, was very fulfilling to me.
Where do you see the industry going?
I see the industry going to, and I am pushing it to go to, 100 per cent automated smart homes. Our big hurdle is getting that information out there. People need to know that they too can have a smart home. It is not just for the rich and
famous anymore.
NEWS BRIEFS
Sky-Tec, in Yarmouth, NS, will reopen as a Leon’s Furniture franchise as of September 1st.
Its alliance with the giant furniture, appliance and CE retailer, which counts The Brick as one
of its divisions, necessitated Sky-Tec withdrawing its membership from both Audio Video
Unlimited and Cantrex Nationwide. Sky-Tec, which had a long history of satellite TV sales
and installation, was an early member of the Audiotronic banner. When Audiotronic’s parent
Groupe Dumoulin dissolved two years ago, owner Garth Davis affiliated with AVU. Joining
Leon’s has necessitated greatly expanding the floor space, says a Sky-Tec spokeswoman.
In late July, police in Markham, ON, north of Toronto, ON, charged seven people regarding a rash of wireless store hold-ups around the Greater Toronto Area. After a December
robbery at a store in Markham, police investigators connected suspects to similar retail
hold-ups in Ajax and Pickering, towns within nearby Durham Regional Municipality. Cops
raided nine homes in Toronto and surrounding the nearby GTA, after a co-operative investigation by respective police forces. Charges include: robbery with firearm; theft of motor
vehicle under $5,000; break, enter, and theft; and firearm use while committing offence. All
suspects are Toronto residents, except for one Brampton resident. They are aged 18 to 28.
Target has partnered with Metro Inc. to add Brunet pharmacies from the company’s
McMahon Distributeur pharmaceutique Inc. subsidiary to its store locations in Quebec.
Pharmacies under the McMahon Brunet banner will be available in the majority of the
Quebec Target store locations. The first 25 stores are set to open in Quebec this fall.
Indigo Books & Music reports that it lost $15 million in its last quarter ending June 29.
The company, which boasts of being Canada’s largest book, gift and specialty toy retailer,
cites the lack of enormously popular books as being behind falling sales. In the same
quarter last year, the trilogies of Fifty Shades of Grey and The Hunger Games made the cash
registers ring. One bright spot for the company is that its online sales of lifestyle, paper,
and toy products continued to grow by double digits. The quarter saw the company
introduce 39 !ndigotech shops across Canada through Q3, which sell Kobo e-readers, and
a selection of Apple products including iPad and iPad Mini tablets, iPods, and AppleTV as
well as other Apple accessories. They also offer what Indigo calls “a curated selection of
other design-inspired lifestyle electronics and accessories.”
On July 25th, U.S. prosecutors charged five people with stealing 160 million credit and
debit card numbers in what they called the country’s biggest fraud of its kind. Victimized
retailers included 7-Eleven, JC Penney and the French retailer Carrefour. Will cyber insurance become mandatory for businesses, just as motorists are obligated to carry public
liability and property damage insurance? Perhaps, or perhaps not, but many businesses
are taking out policies just the same. Some insurers report writing more cyber insurance
policies in the last year and half than they did in the previous five years.
The new Toronto Premium Outlets mall opened in Halton Hills, ON, just outside of Toronto, last month. The outlet features 85 shops, including The Hudson’s Bay Company’s first
ever outlet store, a 25,000 square-foot facility selling designer merchandise at discounted
prices. Consumer electronics presence is scarce, limited mainly to the Bose store located
there. Grand opening celebrations were held starting August 4, and consisted of in-store
specials and prizes from merchants. Lineups of cars could be seen from the outlets, all the
way onto the busy 401 highway, with customers anxious to participate in the deals.
MARKETNEWS 47
SHOP TALK
APPLE CANADA STORES CONFIRM PARTICIPATION IN
THIRD-PARTY CHARGER TAKEBACK PROGRAM
Apple Canada has confirmed its participation in a global
take-back program that will see the manufacturer swap
out a counterfeit or third-party USB charging adapter for
an authorized Apple version, for a small fee.
In Canada, customers can visit any authorized Apple
retailer through to October 18 and trade in a counterfeit
or third-party adapter for a brand-spanking new Apple
model for $11; a buck higher than in the U.S., and about
half-off the standard price of $21 for either a 30-pin or
Lightning cable. The swap is limited to one charger per
Apple device owned, including iPhones, iPod Touches, and
iPads. All devices must be brought into the store, where
they will be validated by serial number.
Apple said the program was initiated based on recent
reports suggesting that,“some counterfeit and third party
adapters may not be designed properly and could result
in safety issues.” Many sources imply that two recent
incidents in China; one where a woman was electrocuted
by a counterfeit charger and another who was reportedly
killed after answering an iPhone plugged into a faulty wall
charger; prompted the take-back program.
The company recognizes that not all third-party adapters pose potential safety hazards; though Apple did not
clarify whether certain ones would be rejected from the
program. The company does say that it will offer the takeback program for “any USB power adapter made for use
with iPhone, iPad, and iPod for which you have concerns.”
One would imagine that a third-party charger purchased
from an authorized retailer and made by a reputable
brand wouldn’t need to be swapped out anyway.
All adapters returned at Apple Stores will be disposed of
an in environmentally-friendly manner.
QUESTION OF THE MONTH
What makes a good sales rep? What do you find that sales reps often do wrong?
What are many of those you deal with doing right?
Austin Mayo, Atlas Audio Video Unlimited, Victoria, BC:
“A good sales rep is one that plans and executes store visits with a purpose. They phone and
arrange these visits in advance. Back in the good old days, no respectable rep would set foot
inside your store without bringing a piece of gear or two to show & tell you. It could be new,
or something existing they feel could really add to you product mix. There are very few reps
that still do this. Vendors also need to empower their reps with a relevant selection of sample
products. The best reps conduct training visits. The important thing, especially with today’s
networked electronics, is to be capable of demonstrating the products flawlessly during the
training. I have seen reps fail miserably in this regard. A good rep knows the products and can
show you how to get the most from it. That is what we, as retailers, are expected to do for our customers. If you’re showing
up to regurgitate a PDF sheet, just e-mail it instead. I want to learn something useful that isn’t on the product sheet. There
are reps that think in terms of pieces of a finite pie and that their product line must have the biggest piece, at the expense
of other competitors. That mentality is very limiting and does not help us grow our business. The smarter reps focus on
helping you ‘grow a bigger pie’ with their products. These smarter reps are not concerned about competitors’ products,
your inventory commitments to them, or the space they occupy on your floor. They are focused on creating new opportunities for you to expand. If a rep runs a spiff program, pay promptly. Not paying spiffs promptly is the fastest way
to lose support on the sales floor. The worst reps are the ones that rarely show up at all, are slow at answering e-mails, or
worse yet, don’t return calls promptly. The size of your territory or your workload is not a valid excuse. As a retailer, it feels
like you are being taken for granted. We too are a customer, and most reps having come came from retail, should already
understand what good customer service is.”
Matt Scott, Omega Audio Video, London, ON:
“A good sales rep is a combination of two things. They have to be reachable and they have to
know their product. There is nothing worse then a sales rep that you can’t get a hold of or takes
too long to get back to you. When you send an e-mail to a rep, you need a response ASAP, as a
rule, and if they only get back to you after two or three days, it’s almost useless. The other key
with reps is their knowledge of the product, and not just the knowledge of the line, but also
how their products work and function with other products. Our industry has become one that
focuses on integration and it’s not just about how the products work but how they play with
others. When I see reps that actually know their products and how they work in the field and
don’t just read you specs from a product catalogue, they’re doing it right! My best reps are the ones that try to get face
time with me, realize how I use their product and schedule time appropriately.”
Jimmy Doré, Germain Lariviere, Laval, QC:
“A good rep is one who involves himself with my sales advisors, who returns his calls within
a reasonable time, sets up displays in stores, informs us of upcoming promotions and of new
product. I expect him to come into the store at least once or twice per month, and make sure
he pays the sell through, and the credits owing. In general, they do their job well, but with the
advent of e-mail, it is easier to send information and the reps take for granted that the buyer
and the sales advisors read the e-mails and understand them, but that is not always the case.
This is the reason their visits to the store are obligatory: to validate whether the information is
well understood. Most of the representatives do their jobs well, but there is one area of slackness. I understand that the e-mails take a lot of time. It has become necessary that the companies understand that their
representatives must be in the store and not just spend 75 per cent of their time sending or reading e-mails. It is necessary that the suppliers change their ways so that their reps have the time to go to the stores. It can never be forgotten
that these sales advisors are the ones who sell the products, and who must be kept au courant with promotions, price
drops, and changes in technology.”
Martin Rudnicki, Flippance and Carr, Oakville, ON:
“I am not concerned of their call frequency or the manufacturer’s concern to last in the industry. We want immediate
current pricing, price drops, and specials, product knowledge, and ammo to use against their competitors. Simple: The big
guy in the sky says he looks after those who look after themselves. I am not kidding. Today, those are my needs from our
reps. We do not require any babysitting or hand holding. You will never get dirty laundry on my reps from me. They can
be my best friends when it comes to my business. The way they make a living and the pressures placed by their management is their problem.”
Robert Bragdon, East Hamilton Radio, Hamilton, ON:
“A good sales rep should understand the dealers’ business, and presenting products that have a good fit that will bring
success to both the dealer and the rep. The flow of information is also very in today’s CE world. A good sales rep must be
a very good communicator, and be able to deliver the information the dealer needs to formulate a strategy. This will help
both parties with forecasting inventory and staying competitive in the market. Having knowledge of the products they
sell is always key. They must be reachable and be able to provide insight to products and or issues that may arise in the
field. A willingness to help will go a long way in gaining trust and support from the dealers and their staff.”
Stay tuned to the next issue of Marketnews, where we’ll discuss this topic in more depth, and look at the other side of the question: what makes a good dealer?
48 MARKETNEWS
Apple Canada stores will participate in a worldwide program
allowing customers to trade in a faulty or third-party Apple
USB cable for an authorized Apple replacement for $11.
FASTEST RETAIL
GROWTH IN THREE
YEARS CANADAWIDE
Statistics Canada reported that retail sales in nine of 11
subsectors, accounting for 94% of retail sales, were way
up in the merry month of May. Electronics and appliance
stores, however, reported a slight drop, after a big increase
in April. Retail sales grew to $40.4 billion, a 1.9% rise in May.
Not only was this the biggest monthly jump since March
2010, it was also twice the growth predicted by economists.
Overall, Canadian retail sales have grown every month
this year. May was the first month which electronics and
appliance stores did not show an increase. The sector
still managed to sell $1.245 billion worth of goods and
services. In January, the overall retail sector took in $39.235
billion.
Electronics and appliance stores ended the first month
of the year by selling well over $1.215 billion, and by April
had increased sales to $1.255 billion. The decrease of 0.8%
to May’s total was less than the increase from March to
April.
Furniture stores continued their increased sales overall,
after a dip in February. While posting over $812.3 million
in sales in January, the sector slumped to$799.5 million in
February. That the month was three days shorter might
account for part of the decline. By March, sales were up to
$821.5 million, and May topped that with sales of $841.7
million.
Among other potential purveyors of CE and appliances,
department store sales rebounded after rising in January
and February, then slumping in March and April. May’s
figures indicate the sector’s income rose by $30 million in
May to $2.224 billion. Sales at other general merchandisers
were up by 1.4% to $5.025 billion.
Retail sales were up in every province and territory.
Analysts caution that the June flooding in Calgary and
construction strike in Quebec may take a bite out of retail
sales there in upcoming figures.
Some interesting observations are noted by Statistics
Canada.“Sales at food and beverage stores rose 1.1 per
cent. Supermarkets and other grocery store sales increased 0.7 per cent following declines in March and April.
Beer, wine and liquor store sales increased 2.2 per cent,
following declines the three previous months. The gain
coincided with a later start to the National Hockey League
playoffs.”
Marketnews will report whether or not there was a June
spike in TV sales thanks to the hockey finals.
THEY SAY
THE FUTURE
DOESN’T
FIT IN
A BOX.
Tuesday, January 7
through Friday, January 10, 2014
Las Vegas, Nevada • CESweb.org • #CES2014
GOOD THING LAS VEGAS
IS FAR FROM SQUARE.
Over four day, those who shape the future gather in a city built on reinvention. Here, brands, markets
and economies converge in what’s far more than a tradeshow. And in 2014, there’s more opportunity
than ever to connect with those who matter. The only question now, why wouldn’t you fit it in your future?
Register today at CESweb.org.
MARKETNEWS
Will LG’s G2 smartphone spell success?
LG’s G2 handset, introduced on August 7 in New York City,
has been designed to energize the company’s Android
lineup. It’s the first smartphone to use Qualcomm’s
Snapdragon 800 quad-core processor, which offers rated
speeds of up to 2.3GHz per core, making it the fastest mobile phone chip, at least on paper. The G2 is also the first
smartphone to eliminate all buttons along the sides and
edges of the body, opting instead to place the power and
volume buttons on the back, right below the camera lens
(an anti-fingerprint glass has been used for the lens).
Putting the buttons on the back made it easier to thin
out the phone’s bezel, which partly explains why the 5.2”
IPS 1080p HD display takes up a whopping 75.9% of the
front of the phone. While the 423 pixels per inch (PPI)
are lower than competitors’, LG says that sub-pixels are
actually more important, and claims these are superior in
the G2 compared to competing devices like the Samsung
Galaxy S4 and HTC One.
The side bezels are super thin at a measly 0.1”, made
possible by the dual-routing method that allows the touch
sensor to use two connectors instead of the standard one.
A concern in placing the traditionally-situated side buttons on the back is the potential trade-off in battery size.
Though unable to make the battery thicker because of
space constraints, it ends up utilizing more of the space
laterally, enabling LG to cram in a 3,000mAh battery; a considerably higher capacity than most competitors. What’s
not known is if the size of the screen and the demands of
the processor might offset any gains in battery life.
The 13 MP camera may also prove to be a significant improvement over the lackluster ones seen in LG’s previous
models. It boasts optical image stabilization, along with
dramatically improved low-light shooting thanks to the
combination of longer exposure times and image stabilization. Some initial test shots at the launch event seemed
promising, but only further testing will show if results are
consistent.
On the audio front, LG has looked to make the G2 a
standard-bearer by setting output to 24-bit and 192KHz
sound quality. There was unfortunately no real way to test
this for initial impressions at the event.
KnockON is a feature wherein the phone can be awoken
or put to sleep by double-tapping or knocking the screen.
It’s not quite as fluid as the “OK, Google Now” prompts
seen in the Moto X, but it seemed to work perfectly fine
when we got our hands on one.
Users can answer incoming calls by simply placing the
phone to their ear, a usability upgrade LG believes is crucial
for moments when they’re wearing gloves or have only
one hand free. Plug & Pop is an audio trigger that comes to
life once headphones or earbuds are plugged in, bringing
music-related apps to the forefront.
Text Link blends in other complementary apps like the
calendar and e-mail, to make it easier to set appointments
and get organized without having to open different apps
to get there. Slide Aside is an interesting take on multitasking: users need only slide three fingers across an open app
and it moves to the side like a page.
Guest Mode is half-child lock and half-privacy insurance
in that a different unlock code can open restricted access
to the device’s contents and apps. There is a built-in IR
blaster via QuickRemote and other minor additions that
will require closer scrutiny.
Sitting down for a short roundtable interview with
Canadian journalists, Morris Lee, Global Head of Mobile
Communications at LG, shed some light on the company’s
strategy going forward.
“In the past couple of years, we weren’t fully ready [for
the smartphone market’s growth,] but with the G2, we are
confident that we are ready now,” he told us.“In the future,
we’ll be much more active in letting customers know the
advantages of LG’s phones.”
LG says it wants to build phones that focus predominantly on the user experience, but adds that a challenge
lies in development cycles and time to market. Both are
decreasing in the smartphone arena, with LG formerly
going 40+ weeks on one device, and now seeing that
reduced to as low as 35.
“We’ll continue to better understand how consumers
use their phones, but ultimately, it’s the choice of the consumer on which one they think is best for them,” says Lee.
“What we’re trying to do is create the best user experience
for the smartphone. We’re in the process of developing
post-G2 product right now that will take that even further.”
The G2 will be available in Canada this fall through Bell
Mobility, Rogers, SaskTel, Telus, Videotron and WIND Mobile. -Ted Kritsonis
www.marketnews.ca, Search News LG G2
Motorola looks for a fresh start with Moto X
Motorola re-entered the smartphone race by announcing the Moto X, an interesting Android handset that is the
opening salvo in what has been a yearlong retooling of
the company since Google acquired it last year. Despite
being under Google’s auspices, Motorola executives at the
launch proceedings in New York were quick to point out
the company’s autonomy.
The Moto X will serve as the new flagship for the struggling brand, though its specs won’t necessarily blow away
any of the competition. Motorola focused on the phone’s
design and tweaked Android just enough in an attempt to
“solve user problems.”
The design isn’t groundbreaking, but it does incorporate
some appealing features. It has a 4.7-inch 720p OLED that
covers 73% of the front of the handset, considered among
the highest proportions of any phone. The screen is tough
Gorilla Glass, while the curved back is made of polycarbonate with a rubberized matte veneer. The volume and power
buttons are on the right side and the SIM card slot is on the
left. The headphone jack is on top and the microUSB port
at the bottom. The 2200mAh battery is non-removable and
there is no microSD card slot. It also has the distinction of
being the second smartphone to use a nano SIM card (the
iPhone 4S and 5 are the others).
Under the hood, it has a 1.7GHz dual-core processor, 2GB
RAM and 16GB of internal storage. Motorola is especially
touting the X8 “natural language processor” that makes its
Touchless Control features possible.
Touchless Control is effectively a new look and feel
for Google Now, Android’s answer to Apple’s Siri voice
assistant. Using Google Now, you can do a search, make
calls and launch apps. But this goes further with the Moto
X, whereby it will recognize your voice when you issue a
command, even when you’re not holding the phone. In
other words, there is no need to physically push a button
or wake up the device in order to use the feature.
The phone can be trained to your voice, and to respond
to the command “OK, Google Now,” recognizing that
you’re prompting it. In demos, it proved impressive, being
able to acknowledge questions accurately, even when
background noise is a factor.
There appear to be some holes, however, particularly
when it comes to some names, places, and languages. It
50 MARKETNEWS
Photo by Ted Kritsonis
will also be hit or miss with Bluetooth headsets, at least
insofar as getting it to act on a command when you’re not
holding your phone.
The best use case that immediately comes to mind is for
driving. Telling the phone to call someone, compose a text
or e-mail, and play music (stored on the device) is made
easier because of the hands-free usability the feature offers. Almost certainly, there will be kinks to this. But out of
the box, Touchless Control is a great start.
Quick Capture is sure to get users acting somewhat
theatrically when it comes to taking photos (never mind
actually being subjects in them). The idea, as the name implies, is to take a photo very quickly. But the phone needs
to know you want to do that without having to go to the
lock screen first.
The answer is to twist the phone in your hand a couple
of times, which instantly activates the camera app and lets
you capture a photo by just touching the screen. In initial
attempts with a display unit, it proved impressively adept
and consistent. It may very well be the fastest way to take
a photo in a pinch on a smartphone.
The camera itself has an extra set of white or clear pixels
whose only job is to gather light, which is said to help
reduce exposure times, sort of like how shutter speeds
are reduced on cameras for low-light shooting. Motorola
executives acknowledged that there might be some blur
or noise in low-light photos, but that “it would still be less
than competitors.” In some initial shots I took with the
phone at the launch event, it seemed to offer nice saturation and contrast. But the white balancing seemed a bit off,
changing the gamut for coloured objects.
Active Display is a simplified lock screen that displays
only important information that you need onscreen. Basics
like the date, time and temperature can show up with
just a touch. But slide the lock icon up and you can act on
incoming information, like a text message, e-mail, notification, music playback and more. The feature can be customized in the Settings under the “Active Notifications” tab.
There is an interesting integration with the PC and Mac
Chrome browser called Motorola Connect that allows users
to see incoming texts, calls, voice mails and more notifications and then respond to them directly from the computer.
Outgoing texts would appear as if they came from your
phone. To initiate the feature, a user needs to log in using
his Google account so as to avoid duplication on other
computers connected to the same home network.
The Moto X will come to the Canadian market in late
August or early September and will be exclusive to Rogers
at $189.99 on a two-year contract. The outright price has
yet to be revealed. Only the black and white models will
come to the Great White North.
American consumers will have handsets made in the
U.S., whereas Canada and other markets will receive units
manufactured in China. There is interest in bringing the
American-assembled models to Canada as well, but there’s
no timetable as to when that might happen.
A partnership with audio brand Sol Republic was also
announced, and it’s been confirmed that Rogers will be
selling the company’s Tracks HD headphones to coincide
with the Moto X launch. Sol Republic also unveiled a new
pair of earbuds and a portable Bluetooth speaker, but
there is no word on when those will hit Canadian retail.
The Moto X may turn out to be among the most unique
Android handsets to come to market this year. But how
well it will do against other established Android brands,
plus the other mobile platforms, remains to be seen.
-Ted Kritsonis
www.marketnews.ca, Search News: moto x
MARKETNEWS
Hands-on preview: Panasonic Lumix DMC-GX7
Although Panasonic has released numerous mirrorless
Compact System Cameras to date, the company is not
resting on its laurels. Over the past months, engineers
have been working to develop a new Lumix model, the
DMC-GX7 which is surprisingly sleek in spite of a built-in
electronic viewfinder.
I had an opportunity to closely examine this camera in a
closed-door meeting in mid-July and was very impressed
with its form factor and feature set.
Quite compact, the black or silver GX7 is rugged thanks
to a magnesium alloy frame and it’s equipped with built-in
flash, hot shoe, many analogue controls and touch-screen
operation.
The 16 MP Digital Live MOS sensor is said to provide high
sensitivity image recording with minimal digital noise. This
was achieved by making the photodiode in each pixel
larger, using technology which improves colour saturation
and sensitivity by 10% while improving the signal-to-noise
ratio by 25%, compared to the GX1. Thanks to optimum
pixel-pix technology, Panasonic indicates that sharpness
and clarity are improved in still photos as well as videos.
The improved Venus Engine processor employs advanced noise reduction and Multi-process noise reduction.
This is the first Lumix G camera to incorporate an image
stabilizer mechanism in the body and it’s said to be as effective as the Mega OIS system in many of the lenses. This feature will be most beneficial when shooting with lenses that
do not incorporate OIS, including lenses of other brands
(such as Leica M) when used with an optional adapter.
Unlike cameras like the DMC-G6 which sport a faux
pentaprism hump that houses the EVF, the GX7 features a
flat-top design so it’s reminiscent of a rangefinder camera.
The 90-degree (upward) tiltable finder boasts very high
2.765 million dot resolution, the full colour spectrum of
Adobe RGB, 0.7x magnification and a full 100% field of
view. Unless it’s tilted upward, the finder does not protrude
above the camera’s top deck so the GX7 is quite compact
(122.6 x 70.7 x 54.6mm). I’m not sure why the EVF needs to
tilt, but this feature is also available with add-on EVF accessories used by some other cameras.
The new 3” touch-screen LCD with 1.04 million dot resolution, wide viewing angle and improved colour reproduction can be tilted up and down, allowing for shooting with
the camera at ground level, waist level or above the user’s
head. The GX7 offers the touch-screen operations with
improved Touch Pad AF control and a new Touch AE (Auto
Exposure) function. The latter allows for optimizing both
focus and exposure with a touch on the primary subject
displayed in the screen. Traditionalists may prefer to use
the familiar analogue controls instead, but the touchscreen features are extremely well designed, allowing for
even quicker operation.
Wi-Fi connectivity with NFC (Near Field Communication
allows users to connect the camera to a smartphone or
tablet running the free Panasonic Image App merely by
touching the two devices against each other. That makes
Wi-Fi connectivity much quicker and simpler than with
conventional technology. After the connection has been
made, the smart device can be used to transfer images
and videos from the GX7 and as a remote controller with
live preview provided on its large screen. When the Instant
Transfer Function is on, photos are automatically sent to
the smartphone/tablet after they are taken. There’s also an
option to send photos to a personal computer.
Continuous framing is available at up to 5 fps or 4.2 fps
when Continuous autofocus is in operation; and the GX7
is able to focus in darker locations than previous models,
down to a mere -4 EV. According to Panasonic, that is
“as dark as starry sky with no other light source.” I found
autofocus to be quick and reliable in the darkest areas of
a conference room. When the built-in focus assist lamp is
on, autofocus on a nearby subject should be possible in
virtually total darkness.
The GX7 offers the same movie options as the DMCG6. It can record full-HD 1,920 x 1,080 60p (60 Hz) videos
in AVCHD Progressive (MPEG-4 / H.264) format and also
supports 1080/24p with 24 Mbps in AVCHD. Full-HD 1,920
x 1,080 60p (60 Hz) video can also be recorded in MP4
format at 28 Mbps; these movies can be played back on a
PC screen or other device without the need to first convert
the videos to the universal MP4 format.
During recording in P, A, S or M mode for great versatility,
full-time AF and tracking AF remain available. Touch AF (on
the LCD screen) can also be used while recording to change
the point of focus; simply touch the desired subject on the
screen and focus will be shifted to it. Sound is captured in
Dolby Digital stereo; a Wind Cut function can be used to reduce the noise of
the wind in blustery conditions. There’s
also an available Extra Tele Conversion
function that virtually extends the zoom
range by up to 4.8x; Panasonic indicates
there’s no loss of video quality but naturally, the resolution is reduced when this
feature is active.
This camera offers more special
effects filters than any other Lumix
model, a full 22, including four for black
and white with available contrast filter
effects (Yellow, Orange, Red and Green).
Filter effects can also be applied to
photos made with the new Creative
Panorama function. The GX7 also
provides a new feature that
resembles Curves in image editing software, giving the user
a great deal of control over
both highlight detail and
shadow detail.
The GX7 also offers
Time Lapse Shot,
Stop Motion Animation (for stop motion
video effects made by
shooting numerous
still frames at high speed)
and Clear Retouch. The latter, accessed in Playback mode,
is a gesture based healing tool that allows for removing
undesired objects in a photo; this is similar in concept
to Cloning in Photoshop but it’s much simpler and
quicker to use.
Body only carries an MSRP of $1,099 and in two
kits, at $1,199 with the G VARIO 14-42mm f/3.5-5.6
ASPH Mega OIS zoom or at $1,299 with the G
20mm f/1.7 ASPH pancake lens. -Peter K. Burian
www.marketnews.ca,
Search News: dmc-gx7
App of the Month: Get GO-ing with GO Transit
Back in the day, schedule checking for GO Transit, a transit service in the greater Toronto
and surrounding areas, used to consist of calling in to speak with a service representative, or
having to boot up the computer to view the online schedule. The GO Transit app has helped
change that. Using the app, travelers can search for train or bus arrival and departure times.
Frequent routes can be pre-programmed so you’ll see times on that line within seconds. A
route can also be designated a Favourite for quick, one-touch access. There’s also a specialized section for Union (Station) Departures, where most arrivals and departures meet. In this
section of the app, the user can filter the departure times shown to meet his travelling needs.
Also, when rushing to the station, this app can tell you which platform (stop) to get to for
boarding. Do note, that this type of update is only applicable close to the scheduled departure time. But there are some other really cool features, like Arrival Alerts, which will make the
phone vibrate or alert by voice to let you know when it’s time to get off. But the unsung hero
of the GO Transit app is the Service Updates section. If your train is late or cancelled; if weather
is playing havoc with certain routes; or if construction is affecting how a station operates; this
is where you’ll learn all of that. When Toronto had its massive flood in July,
this section of the app proved tremendously helpful. It indicated that my
station stop was out of commission, thus allowing me to make alternative arrangements. Whether
you’re a daily business traveller, or looking for an easy ride to an awaiting adventure, the GO Transit
app is an excellent commuting companion.
Click the QR Code to see the full review. - Adam Grant
Personnel Appointments
Security software company AVG Technologies has named Gary Kovacs its new CEO and Managing Director.
Kovacs has over 25 years of industry experience. He was most recently with Mozilla Corporation
as its CEO, responsible for expanding the company’s desktop and mobile businesses.
Bluebird Music has appointed Matthew Silberstein as its new National Sales Manager.
Silberstein has 12 years of industry experience, selling high-end two channel audio products.
He also brings experience in designing and implementing digital audio, desktop, computer and
streaming applications.
Silberstein can be reached via e-mail at [email protected]; and by phone at
(720) 376-3892.
Premium Imports Limited (PiL), the Canadian distributor for Fusion automotive and marine entertainment products, has appointed Stuart Pringle of SP Sales and Marketing Inc. as its new Sales
Agent for the Manitoba and Saskatchewan region. Additionally, Pringle will cover some markets in
Northwestern Ontario.
Based in Toronto, ON, PiL was founded by former Alpine Canada executive Mike Brawley.
Pringle can be reached via e-mail at [email protected], or by phone at (204) 669-5235. Brawley can
be reached at [email protected]; (705) 293-0938.
Yahoo! Canada has appointed Claude Galipeau as its new Country Manager, responsible for sales
and operations of the company. He will be based in Toronto, ON.
Galipeau has extensive experience in content, product, sales, marketing, business affairs and
policy functions, having worked with some of the world’s biggest media and consumer brands.
Notably, he has held management positions at Rogers Media, Astral Media, Alliance Atlantis Communications, and the Canadian Broadcasting Corporation.
Gary Kovacs
Matthew Silberstein
Stuart Pringle
Claude Galipeau
MARKETNEWS 51
MARKETNEWS
Master of his trade: recording engineer
Crispin Murray visits Toronto
When he talks about his role as a mastering engineer,
Crispin Murray strikes a conservative, almost deferential
tone.“The objective is do as little as possible,” he says.
“There’s no change for the sake of change.”
Mastering is the last stage in the recording process,
preparing a final mix for release on a packaged medium
like CD, or as a digital download.“It’s the last stage of the
creative process,” Murray says,“although labels see it as the
first step of the manufacturing process. It’s the last chance
for QC. The purpose is to make the recording sound as
good as it can, to make it sound like the musicians and
producer thought it would sound.”
A freelance recording consultant, Murray was formerly
technical manager at London’s Metropolis Studios.During his 30year career, which has also included stints at Virgin Records
and the BBC, Murray has worked with artists such as U2,
Madonna, The Who, Pink Floyd, the Pixies and Cab Calloway.
Murray visited Toronto’s Noble Street Studios in midJune to talk about the role of the mastering engineer, and
the importance of monitor speakers in the mastering
process. The event was organized by the British speaker
manufacturer PMC and its Canadian distributor Precor.
Noble Street Studios is located near Queen St. W. and
Dufferin St., a busy intersection a few minutes west of
Toronto, ON’s downtown core. Just to the north are train
tracks used by commuter and freight trains. It may be
noisy outside, but none of the noise penetrates the facility.
The building is constructed as a box within a box, with
interior walls separated by several inches from the main
exterior walls, and a suspended floor that rests on rubber
springs. It houses a 1,200-square-foot live studio where
ensembles can perform and record together, and a second
studio with isolation booth. Noble Street Studios’ artist roster includes the Tragically Hip, Feist and Barenaked Ladies.
During his presentation, Murray outlined several objectives of the mastering process. One basic goal is aural consistency.“The songs on Rihanna’s next album were recorded at
different venues,” he elaborates,“by musicians who are not
listening to each other’s material. They have different levels
and tonal balances. We need to make it sound consistent.”
Another objective is to make sure the recording is listenable
through a wide variety of playback systems.“We can’t leave
unconstrained bass in the recording, so that a system with a
rubbish speaker can’t play it,” Murray explains. And engineers
may apply dynamic compression so that the track is listenable through an iPod by someone travelling on a bus.
To many audiophiles, dynamic compression is a dirty
phrase, because when overused it squeezes the life out of
recorded music. But as Murray points out, it’s a practical
necessity. He outlined a broadcast he worked on while
at the BBC. A Promenade Concert from the Royal Albert
Hall featured a massive work for solo organ by the 20th
century French composer Olivier Messaien. Le Nativité du
Seigneur opens with notes that are barely audible, and
closes with a movement with extremely loud passages
on adjacent semitones that loaded the Royal Albert Hall.
From the first to the ninth movement, the dynamic range
was 120dB.“We had to reduce this to 26dB,” Murray recalls.
Radio transmitters would have switched off if engineers
hadn’t increased the level of the first movement, and could
literally have blown up if they hadn’t cut back on the ninth
movement.“We had to do this in a way that nobody noticed,” Murray says,“while maintaining dynamic contrasts.”
Murray does note that it’s possible to produce different
versions of a song or album for different formats: one for
SACD or high-resolution download, another for CD, another for iTunes, and another for Amazon’s MP3 store. That
doesn’t happen much in the real world, Murray observes.
“Record companies would like to have a one-size-fits-all
master.” He doesn’t mince words in expressing his opinion
on MP3 downloads.“Why we should use a 20-year-old
decrepit format, I don’t understand.”
Engineers may also seek “to straighten things up” during
the mastering process, to apply small tweaks that add a
final touch of polish to the finished product. Murray played
a few tracks to illustrate what this can do.
“Opening” from the soundtrack for the Danish version
of The Killing is slightly rolled off around 10kHz, making it
sound “a little dull,” Murray said.“Adding a couple of decibels above 10kHz adds air and tension.”
“Don’t Blame the Tune” from If You Leave ..., the latest
52 MARKETNEWS
album by the Irish singer/songwriter Eleanor McEvoy
(note to self: buy this album!) features a guitar on the left
and Hammond organ on the right. In the original mix,“for
the most part, the guitar wins,” Murray says.“Adding some
high-frequency lift and a little dynamic limiting makes
a subtle difference. It brings out the Hammond, and you
notice the piano in the middle.”
After her first album, McEvoy had requested that her albums
be released on SACD (Super Audio CD).To that end, the analog
master tapes were captured in DSD (Direct Stream Digital,
the high-resolution single-bit digital encoding format used
for SACD), Murray relates. For CD, these DSD masters were
downsampled to Red Book (44.1kHz/16 bits). Even on CD,
this resulted in an improvement.“There’s more roundness to
the voice, which sounds more Irish,”Murray says.“It’s a subtle
change, but I do like it better.”
Making good recordings requires calls for high-performance
monitor speakers, not just in the mastering phase, but during
recording and mixing as well. Murray spent a good chunk of
his presentation singing the praises of PMC’s products.
When it opened 20 years ago, Metropolis had big overhead speakers in its control room. Sometimes engineers
wanted to listen to something smaller, so the studio added
small console-mounted speakers.“But they had different
tonal balances,” Murray relates. That issue disappeared
when Metropolis installed PMC speakers of different sizes.
“We wanted something that behaves like hi-fi speakers,”
Murray says,“and which has consistent balance and different volumes. We need to be able to listen at full volume to
check the microphones and the instruments, for example
if a screw on a kick drum is squeaking. We need a speaker
that can go just as loud as a drummer in heat.”
During the Toronto event, Murray played the same track
through a large set of PMC overhead monitors in Noble
Street’s Studio A, and a smaller set of active nearfield monitors, PMC’s new twotwo.6, demonstrated for the first time
Organized by PMC (and Canadian distributor Precor), mastering engineer Crispin Murray visited Toronto, ON’s Noble Street
Studios earlier this summer to talk about his role in making a
recording sound just as the musician and producer intended.
in North America at this event. As advertised, both speakers
were tonally consistent, and very dynamic and transparent.
The larger speakers, whose drivers were individually powered by Bryston amps, could of course play louder.
Returning to his theme of doing as little as possible, Murray concluded with a lovely track by the Staves, featuring
female vocals, ukulele, harmonium and bass. No tweaks
were applied, or needed, during mastering.“There’s the
odd occasion where something is so right, all you can do is
ruin it,” he said. – Gordon Brockhouse
www.marketnews.ca, Search News: crispin murray
Distribution Appointments
Apple has acquired Toronto, ON-based start-up Locationary, a crowd-sourced location data company. The financials of the
deal haven’t been disclosed, but it’s being reported that Apple has bought the rights to the technology, as well as the staff.
Cineplex Inc. has made an offer to purchase EK3 Technologies Inc., an in-store digital merchandising provider, headquartered in London, ON. The initial purchase price is approximately $40 million.
EK3 designs, installs, manages and consults on some of the largest digital merchandising networks in North America,
including Tim Hortons, McDonalds, Walmart, Target, RBC Financial Group, and BMO Financial Group. The company has
developed proprietary technology and patented software, and provides content production, media sales and network
operations services.
Gentec International has purchased the worldwide rights to the UltraLink brand and the license for the XLO brand.
As per the announcement, Gentec will take over UltraLink’s Canadian customer base. All future orders, marketing, sales,
and service support will be provided from Gentec’s Markham, ON headquarters.
Dick Tuerlings, Managing Director of Gentec’s Electronics Division, will head up the newly-expanded category, along
with Steve Withers and industry veteran Barry Ogg, who will assist with the transition.
Contact Tuerlings at (905) 513-7733, or via e-mail at [email protected].
Home appliance and electronics manufacturer Haier America has reached an agreement with its
minority joint venture shareholders to acquire their shares and make the entity a wholly-owned subsidiary of Haier Group.
Shariff Kan, President and CEO of Haier America, says the acquisition is being made to “further align
the company’s global resources toward growth and success for the Haier brand in North and South
America.”
NVU Electronics Inc. has been appointed the Canadian distributor of TVFrame, a Quebec-based
manufacturer of real wood TV frames designed for wall-mounted flat screen TVs.
Each frame is handmade and customized. There are five frame designs, 10 stain colour options, and
standard paint colours. The frame is placed over the TV and two attached straps are fastened to the back
of the set. Tools aren’t required, and the TV does not have to be removed from the wall for installation.
Order turnaround time is four weeks.
Sony Corporation and Panasonic Corporation have partnered to develop an optical disc with a recording capacity of
at least 300GB by the end of 2015. By comparison, current dual-layer Blu-ray discs can only store 50GB of content.
In a statement, the companies state they recognize that optical drives will “need to accommodate much larger volumes
of storage in years to come given the future growth in the archive market.”
Techni Contact Canada Ltd. has been appointed exclusive Canadian distributor for
Cambridge Sound Management’s line of sound masking products.
Cambridge developed the Qt Quiet Technology sound masking systems, designed
to solve issues related to privacy and acoustic distractions. The systems, says Techni
Contact, are energy efficient, require a low impact installation, and are affordable.
CSM is a descendant of the Bolt, Beranek and Newman’s acoustics consulting group
that was founded in 1948. This group of acousticians received the American Institute
of Architects Honor Award as recognition for having “...created an awareness of acoustical considerations in building
design... and integrating solutions based on scientific principles with architectural and artistic concepts.”
MARKETNEWS
DayMen brings Italian Puro
wireless accessories brand to Canada
The latest brand to enter the smartphone case market in
Canada, Puro, through an exclusive distribution agreement
with DayMen Canada, hopes to stand apart thanks to its
focus on Italian fashion design and materials, supported
heavily by its headquarters in one of the fashion capitals of
the world: Italy.
Founded in 2002, the company name Puro was coined
because of its meaning that denotes purity and elegance.
And these are the principles the founders aimed to follow
with Puro products, which range from smartphone and
tablet cases, to headphones, portable power, and other
wireless-related accessories.
“The Italian design draws attention,” Roberta Fantoni,
Shareholder in the company tells Marketnews in an exclusive interview.“We have an in-house design team that’s
young, with fresh ideas.”
Couple that team, which includes five designers plus two
freelancers, with Puro’s worldwide distribution agreement
with designer Roberto Cavalli’s Just Cavalli line, and it’s safe
to say the company is in-the-know about upcoming fashion trends (colours, materials, and patterns) upwards of a
year in advance of their appearance.“It’s like going back
to school for me,” says Fantoni of sitting in on the Cavalli
design meetings.“I listen to the designers, and pick up on
the information.”
Today, some of Puro’s smartphone and tablet cases, available for a wide range of top devices from Apple, Samsung,
HTC, Sony, and others, incorporate the coloured vertical
stripe and camouflage designs that are both “in.”You’ll also
note current “hot” fashion colours like nectarine.
Fashion aside, being quick-to-market is one of the keys
to success in the wireless accessories business, particularly
with cases. And Fantoni says this is a major advantage
Puro has.“We can often have cases one-to-two weeks in
advance of a phone release,” she says.
“In Italy, we’re addicted to fashion,” muses Fantoni.“So
I’d say consumers have no less than three covers for every
device. We try to express a style, a mood.‘Today, I’m feeling
good, so I’ll wear red. And it goes with my red dress.’ And we
find that in all countries we export to, people recognize that.”
Perhaps not so common among case brands: Fantoni
The Latest in
Mobile & Online
Retailing
PayPal has inked a new partnership with TouchBistro that
will allow customers to check-in and pay at various cafes
from their smartphones. PayPal’s check-in functionality
integrates with TouchBistro’s iPad-based point of sale
(POS) technology. When a customer checks in, his name
and profile picture shows up at the point of sale. Staff can
then greet and identify the customer, and accept the mobile payments from a customer’s PayPal account, through
the PayPal mobile app. The cloud-based program is now
being piloted at several locations in Toronto, ON, including
Jimmy’s Coffee, a popular Toronto coffee shop in the King
West neighbourhood.
A survey commissioned by RetailMeNot.ca finds that
22% of Canadians never buy anything online, compared to
12% in the U.S., 6% of Germans and Britons, and 4% of Chinese. What’s more, 15% of Canadians never look for deals
and offers on products, and are the least likely out of all 11
countries surveyed to visit a price comparison Website, at
just 6%. Only 4% of Canadians surveyed look for deals and
offers primarily via social media; and Quebec has the highest percentage of respondents who never buy online, at
29%. Canadians are also among the least likely to use their
mobile device for shopping (40%), joined at the bottom by
the French (30%) and Dutch (41%).
Amazon.com and Amazon.ca experienced major outages for a half-hour period in early August, with no one able
to access the e-commerce sites. Though the site was only
down for about 30 minutes, Forbes notes that based on
revenue typically pulled in (over $66,000 per minute) that
equates to close to $2 million. That’s no small potatoes.
says Puro designs new collections for popular “legacy”
devices, too, like the iPhone 4 and Galaxy S3.“We don’t just
expect customers to use the same case they bought last
year for the older phone they may still use.”
While they don’t offer bundles, per se, Puro is conscious
of following the same design principles across other accessory lines it offers (and to which DayMen also has exclusive
distribution rights), like earbuds. A display box the company created for presentation to retailers (but that would
fit equally well on the sales floor of high-end boutiques)
mimics the look of a jewelry case, featuring three funkydesigned smartphone cases in different colours, with Puro
earbuds to match each one.“We treat our products like
they are jewels,” emphasizes Fantoni.
Indeed, many of Puro’s products actually incorporate
jewels and “bling;” some of which comes from a licensing
agreement with Swarovski.
The fashion angle is further emphasized with Puro’s
tagline:“Don’t cover, dress up,” along with additional partnerships in the Italian market with well-known brands like
Fiat, Ferrari, Guess, and Paul Frank.
While they’re new to the Canadian market, Fantoni says
Puro products, which have a starting price of about $30,
fall in line with competitors in terms of pricing and margin.
“We are mid-to-high average in pricing.”
Fantoni feels Puro’s finger on the pulse of the fashion
industry, along with its presence in Italy, and Italian designs
and high-quality materials, will help set it apart.
As for its partnership with DayMen, Fantoni says an initial
meeting at the 2013 CES was quickly consummated as
Puro saw a clear synergy with the Markham, ON-based
distributor.“[DayMen is] well-structured, organized, and
shares the same spirit,” raves Fantoni.“I feel like I’m in safe
hands with them.”
DayMen is a long-known leader in distributing imaging
accessories, an area that, on the entry-level consumer side
at least, has seen noticeable declines as more and more
consumers view smartphone cameras as “good enough”
options for picture-taking (and likewise, smartphone
cameras continue to boast impressive photographic
features); along with growing interest in online services
like Instagram and Vine. Daymen’s partnership with Puro is
a clear indication of the company’s recognition of this, and
expansion into new directions.
“DayMen is making moves to strengthen ourselves
in other markets,” Ron McKerron, General Manager and
Senior Vice President, tells Marketnews.“We will take our
brands in this area into a leadership position, just as we’ve
done, and will continue to do, in photography.”
The first of Puro’s products will be available in Canada
soon.“My main goal is to combine fashion with protection,” says Fantoni.“We are creating a lifestyle brand.”
– Christine Persaud
Roberta Fantoni, Shareholder, Puro, and Ron McKerron,
General Manager & Senior Vice President, DayMen, share a
laugh as they sport Puro smartphone cases designed with the
Canadian and Italian flags, marking a new partnership that
will see the Canadian distributor bring the Italian line into
Canada.
The Secret Shopper is Denied a Discount
Date: February 2013
Type of Store: Big Box/Wholesaler
Location: Toronto, ON
Everyone’s been in a situation where they’ve wanted, or
needed, to return a product due to unforeseen circumstances. Usually, that’s handled without a hitch. Sometimes,
it causes grief. What’s even more irksome, though, is investing hundreds of dollars in an item only to find that it goes
on sale shortly thereafter. Will the store honour the difference? Or are you, excuse my language, shit out of luck? In
this particular case, it was the latter.
On February 1, 2013, I purchased a high-end professional
mixer for upwards of $400. Later that month, I noticed an
advertisement for that very mixer that offered $80 off!
Could it be?
The promotion was listed to run for one week, a cool 17
days after I visited. Still, some stores have price-matching
policies that will ensure that if an item goes on sale within a
specified time frame after you purchase it, even if just for a
day, bring in your receipt, and you’ll get that amount back.
Whether it be in cash refund, or in store credit.
Sadly, this wasn’t the case. Upon calling customer service,
I was told that they would not be able to honour the
discount because it was offered from the manufacturer, not
them. What? If there’s ever an incentive to bypass the retailer
altogether and buy online direct, here it is. If the retailer selling the product isn’t going to be that integral link between
the customer and the manufacturer, what’s the point?
The particular retailer’s policy does permit returns for
up to 90 days after the purchase, and notes the standard
fodder in its return and exchanges policy. And of course
there’s that standard line that guarantees the satisfaction
of merchandise purchased. Clearly, the word guarantee is
used loosely here.
In fairness, the retailer did offer for me to bring the mer-
chandise back for a full refund. Again, is this the best option?
Now I get my money back, but I’m still down one mixer, and
the retailer is out a $400 purchase. Even if the retailer won’t
get that discount fulfilled by the manufacturer, is $80 worth
upsetting a customer, and a frequent one, at that? What’s
more, even if the $80 were offered as a store credit for use
on the next purchase, at least this would keep the funds in
house and the customer happy. It’s a win-win.
It’s possible that had I physically gone into the store, the
answer may have been different. But that’s not the point.
The telephone customer service department is a highly-important link between you and the customer. They get some
of the most impassioned inquiries; about after-sales service,
product warranties, support, and, yes, refunds and discounts.
The stuff that can really show a retailer’s true capabilities.
A customer should never hang up the phone frustrated,
unhappy, or, worse, seething. Every customer service agent
should have the sense, and authority, to make a logical
and reasonable call in situations where a customer is
clearly unhappy, and where there’s a clear grey line. Yes,
the promotion was only for a short period of time, and offered by the manufacturer. But the customer is also a loyal,
long-time one (a quick lookup of my past purchase history
or other easily accessible loyalty information would show
this) who feels slighted by an almost 25% discount less
than a month after buying something.
Naturally, I was left in a pickle. I really wanted the mixer. But
I also couldn’t bear to use it daily knowing that it cost 25%
more than it could have.
The lesson here? While the customer doesn’t always
have to be right, he should always be happy. And train
telephone customer service agents just as intensely
as those in store, giving them the latitude to make key
decisions that can make the difference between a loyal
customer and a former customer.
– The Secret Shopper
MARKETNEWS 53
MARKETNEWS
Away to the races:
Halo Metrics celebrates 25th anniversary
Cheryl Gillott (front, middle) and John Petruskavich (front, right), President and V.P., Sales & Marketing, respectively, are joined by the entire Halo Metrics team to cut the cake in celebration of the
company’s 25th anniversary. Photo by Wally Hucker
Halo Metrics hosted an evening at Toronto’s Woodbine
Racetrack on the night of Wednesday, August 21 to celebrate 25 years in business since the late Bill Gillott founded
the company in his Richmond, BC garage. Cheryl Gillott,
his daughter and company President, welcomed over 80
guests, including many clients and employees, to a room
in the trackside VIP tent on a balmy summer evening.
Formalities were restricted to the brief welcome speech,
in which Gillott thanked her late father, and the company’s
long-time employees and clients, and to the cutting of a
giant silver and red cake. Gillott’s speech also noted the
significance of rebranding to the name Halo Metrics seven
years ago, and the change of focus from just selling security products preventing theft of goods from clients’ retail
stores.“For us, it’s about our clients’ return on investment,
and their bottom line,” Gillott told Marketnews.“How can
we help our clients get more of their valuable products
out of glass cases, or out from behind the counter, into
their customers’ hands so they can touch them, and buy
them, while still minimizing losses?”
In addition to a buffet and bar, Halo Metrics provided
each guest with a silver envelope containing a voucher for
betting on any horse in any race during the evening.
Also on hand to welcome guests, and on occasion join
them outside to watch the horses come down the home
stretch, were John Petruskavich and Ravinder Sangha. The
former is Halo Metrics’ Vice President of Sales & Marketing,
based in at the company’s nearby Mississauga, ON officewarehouse facility. Sangha, like Gillott, was in town from
the company’s head office in Richmond, BC. He serves as
Marketing Manager for the company.
Client company representatives attending the soirée were
heavily represented by retailers of consumer electronics,
including The Source, Best Buy, Bell, Rogers, Staples Canada,
Sears Canada, and Office Max. Other retailer businesses that
use Halo Metrics’ products and service, including clothiers
Winners and Harry Rosen, were also on hand.
Most of the guests, notes Sangha, were from the loss
prevention teams. However, he adds, in keeping with Halo
Metrics’ more frequent involvement in collaborating to
(L-r): Ravinder Sangha, Marketing Manager; Cheryl Gillott, President; John Petruskavich, V.P.,
Sales & Marketing; and David Kurth, National Sales Manager at Halo Metrics celebrate 25
years with an event at Toronto’s Woodbine Racetrack.
54 MARKETNEWS
make the shopping experience more interactive while also
safeguarding the goods on display, store designers and
other personnel from client companies attended.
Many of the guests availed themselves of a photo booth
set up in one corner of the tent. Judging by the gales of
laughter emanating from within, and the general reluctance to show the instant prints around afterwards, the
posing and posturing in the booth was pretty flagrant.
Halo Metrics sponsored the sixth of the eight races.
Sponsors are entitled to enter the winner’s circle at trackside near the finish line, to meet the winning horse and
jockey. A raffle was held to determine which guests would
accompany Gillott, Petruskavich, and Sangha to the winner’s circle. Winners of the draw were Tara Dakin, Senior
Manager Loss Prevention at Best Buy Canada and Doug
Rajala, District Loss Prevention Manager at Future Shop/
Best Buy Canada.
Halo Metrics topped off the evening by sending guests
home with a small ribbon-wrapped box of handmade
chocolates decorated with the company’s logo.
Halo Metric’s staff laugh it up with Jenifer Gerdil, Health & Safety Specialist, Best Buy Canada
(third from right). Others from l-r: Karen Weber, Product Manager, Peter Henry, Key Account
Manager, Ravinder Sangha, Marketing Manager, Cheryl Gillot, President, and Frank Surin, Key
Account Manager.
A Look Back
at 25 Years
Save the date!!
Wednesday January 8th 2014
Bill Gillott started the business now known as Halo Metrics, then Se-Kure Controls, from his
garage in Richmond, BC in 1988.
“My dad, Bill Gillott, started the business at our home in Richmond, BC,” recalls Halo Metrics’
President Cheryl Gillott. Incorporated on 8/8/88, the one-man operation was called SeKure Controls (Canada) Inc. after the one supplier it originally represented.“It was strictly
widget in and widget out,” she recalls, of the original business plan which imported security hardware and resold it to help Canadian CE retailers combat theft of valuable products.
“Dad knew his accounts receivables to the penny,” she recalls,“and he did his own collection calls.”The company has now grown to over 30 people, headquartered in Richmond,
BC with an office and warehouse in Mississauga, ON and an office in Montreal, QC.“I now
manage and delegate what dad did by himself.” Gillott is assisted by Vice President of Sales
& Marketing John Petruskavich, who joined the company in 1998, Marketing Manager
Ravinder Sangha, and David Kurth, National Sales Manager. Both the latter joined the
company 11 years ago.
Initially, the company had one major client.“Future Shop grew, and as they did, we grew
too. They gave us tons of opportunities to expand.”
A quarter of a century later, although security hardware sales are still important to the
company, the focus has evolved under the second generation’s management.“I had
been living in Japan teaching English,” Gillott reflects,“but dad wanted me to join the
company.” She did join, in 1997.
Two major periods of conflict, she says,“made the business what it is today.” Soon after
she joined the company, a key employee left to start a competing business.“That really lit
a fire under me, and I learned that the importance of relationships is key to this business.”
With his daughter’s help, Bill Gillott took the business to the $5 million per annum level.
After only a few years of the successful father-daughter partnership, Bill Gillott was
diagnosed with Parkinson’s Disease.“He declined rapidly,” she says,“and he passed away in
February 2007.” By that time, she had bought out her father and the company had been
rebranded as Halo Metrics.
She is thankful that her father was alive when she gave birth to his first grandchild two
months earlier. Her husband is Mike Nedelec, who was vice president of merchandising at
Future Shop, and subsequently purchased high-end retailer Sound Plus in Vancouver, BC.
Nedelec had been Future Shop’s buyer for camcorders, which were being stolen from
the stores.“His boss said,‘Go find something to stop it.’” In 1988, Nedelec approached
Se-Kure Controls (Canada), then in its start-up phase, and supplying products to not only
inhibit theft, but encourage handling by customers, which in turn boosted sales by allowing the camcorders to be mounted on pan heads, often overlooking what became known
as a shooting gallery. In time, sensors were available to activate a monitor when a camera
was picked up, so the images garnered by the customers would be shown on screen.
“Historically,” Gillott states,“we had been concerned with loss prevention,” and that had
been good a good thing for the company, perhaps too much of a good thing.“In 2004 we
doubled our top line revenue. That,” she recalls of the expansion,“nearly killed us.”
But survive they did, and a second period of conflict in 2006, during Gillott’s third month
of pregnancy, refocused the business and led to the rebranding. Conflicts between two
major suppliers forced a parting of ways with one, and Gillott, who describes her approach
to change in the business as “slow and conservative,” worked with Petruskavich to refocus
on doing more than just stopping losses for clients.
While important, the company realized that it could market more than just hardware.
Although the hardware allowed valuable electronics and other merchandise in danger of
being pilfered to be on display, and thereby increased sales, the increasingly sophisticated
sensors allowed the collection and interpretation of data as well; data valuable to retail
clients.
“We had to create a brand, and distinguish it from our product line.”Thus the name Halo
Metrics was chosen. Halo signifies the aura of protection around the clients’ merchandise,
and Metrics the information gleaned.“John is the technical driver for this,” says Gillott.
Checkpoint Systems bought Alpha Security Products, one of Halo Metric’s main
suppliers, several years ago. The New Jersey-based company, with sales of US$1 billion
annually, specializes in radio frequency (RF) and electromagnetic security tags for retailing, and is a big force in apparel labels for the fashion industry. Last year, Checkpoint Systems, which was undergoing a growth spurt, asked Halo Metrics to take on distribution
of its electronic asset surveillance. This gave Halo Metrics a big leg up in retail markets
for both consumer electronics and other goods.
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MARKETNEWS
Quick Hits: This Month’s New Tech Gear
Acing it: Acer’s Aspire Z3-605 all-in-one desktop PC
series is a Windows 8 system that has a 23” Full HD IPS
display with 10-point capacitive touch technology. On
the front of the chassis is a capsule-shaped port bay
that is home to the on-screen display (OSD) button;
an SD card reader; a USB 3.0 port, as well as a two-inone combo audio jack. Front-facing Harman Kardon
speakers are included, along with Dolby Home Theater
v4 audio features. It comes with up to an Intel Core i5
processor and 8GB DDR3 dual-channel memory, plus a
1TB hard drive and Bluetooth 4.0 connectivity. A second
USB 3.0 is also offered, along with a pair of USB 2.0 ports,
an integrated SuperMulti optical drive, and a 1MP frontfacing Webcam capable of capture images in 720p.
Non-touch systems are available for $700, while those
with touch functionality go for $800.
www.marketnews.ca, Search News: Z3-605
PM6005
CD6005
A pleasant pair: D&M Canada has added two to its Marantz line of two-channel audio products. Along with line-level
and phono inputs, the PM6005 integrated amplifier features optical and coaxial digital inputs. Its digital-to-analog converter (DAC) can support streams to 192kHz/24 bits. Rather than IC op amps, the PM6005 employs Marantz’s fully discrete
HDAM (Hyper Dynamic Amplifier Module) technology. The power supply employs a shielded toroidal transformer and
high-capacity Shottky barrier diodes. The PM6005 has an all-discrete headphone amplifier and front-panel headphone
jack. Rated power is 2x45 watts into 81 and 2x60 watts into 41 (20Hz-20kHz, both channels driven). MSRP is $749. The
CD6005 CD player also has rear-panel coaxial and optical digital inputs, plus a front-panel USB input that can be used
to connect an iPhone, iPod, iPad, or a USB drive. The USB port will charge the i-device while it plays; and the CD6005’s
remote can be used to control a connected i-device. The CD6005 employs the same Cirrus Logic CS4398 DAC chip as
the PM6005, with support for 192kHz/24-bit files, and a wide range of file types, including WAV, AAC, WMA and MP3. The
player has built-in headphone amp and front-panel headphone jack. MSRP $549
www.marketnews.ca, Search News: PM6005
Give MeMO: The ASUS MeMO Pad HD 7 Android-based
tablet has a 7” HD (1,280 x 800) multi-touch IPS display,
and a 1.2GHz quad-core processor. It comes with 16GB of
storage (expandable by another 32GB via microSD), 1GB
RAM, plus 5MP and 1.2MP rear- and front-facing cameras.
Built-in wireless LAN (802.11 b/g/n), Bluetooth 4.0, along
with Miracast wireless technology that “enables seamless
displaying of digital content between supported devices
without cables or a network connection.” The tablet comes
in blue, white, pink and green and weighs just 302g. $159
www.marketnews.ca, Search News: MemMO
Getting in your ear: Paradigm Electronics Inc.’s E3i and E2i in-ear headphones, shipping
now, both have 8mm super-neodymium drivers; an airtight seal for noise isolation; and a
thick, 1.2m tangle-resistant cord that features a microphone, Apple-friendly remote, plus a
3.5mm plug with a 90-degree angle adapter. Each comes with three pairs of ear tips (small,
medium, large) and a padded travel case. The E3i, which boasts a CNC precision-machined
aluminum design, has a frequency response of 8Hz-19kHz. The E2i has a frequency response of 10Hz-19kHz. US$130 and US$100, respectively
www.marketnews.ca, Search News: E3i
In SYNC: SMS Audio, LLC is expanding with several new
products, including the SYNC by 50 Wireless Speaker, featuring Bluetooth 4.0 aptX technology, omni-directional 3D
stereo sound, and 50mm drivers for “dynamic, crystal clear
audio.” It has NFC (Near Field Communication) functionality; can be used as a speakerphone, and comes pre-tuned
with five EQ settings. Soft-touch sensor control keys; a
rechargeable lithium ion battery; and a microUSB charging
cable are included as well. US$200
www.marketnews.ca, Search News: sync by 50
Sounding off: The Sinclair Audio Soundpad Mini compact Bluetooth speaker is a
self-contained audio system for use with
flat-panel TVs, but the Soundpad’s cabinet
is deeper than a soundbar, and intended for
shelf installation underneath the TV, rather
than wall mounting. This allows for deeper
bass. The Soundpad Mini has four outwardfiring full-range 2” drivers on the front of the
enclosure, matched to a single downward-firing 5.25” woofer. In addition to optical digital,
stereo RCA and 3.5mm input jacks, it has
Bluetooth wireless connectivity for streaming
audio from a smartphone or tablet. A learning remote is included. Distributor is Erikson
Consumer. MSRP $399
www.marketnews.ca, Search News:
soundpad mini
Message received: Onkyo’s new TX-8020 stereo receiver is intended for listeners who
don’t require video switching or processing. Rated at 2x50 watts, the TX-8020 has five
pairs of RCA line-level input jacks for source components, and AM/FM tuner with 40
presets. The two pairs of speaker terminals can accept banana plugs or straight wire
connections. There’s also a pre-amp output for users who want to connect a powered
subwoofer. Onkyo says the receiver’s Wide Range Amp Technology (WRAT), which is
based around a high-current low-impedance drive circuit, enables it to handle speaker
impedance fluctuations and sudden increases in level. The receiver employs a low
negative feedback design, which Onkyo says improves dynamic range, and closed
ground loop for lower noise. MSRP US$249
www.marketnews.ca, Search News: TX-8020
56 MARKETNEWS
E3i
E2i
MARKETNEWS
Quick Hits: This Month’s New Tech Gear
Back in BlackBerry: Released through Bell, Fido, Koodo, Sasktel, Telus, and Virgin Mobile Canada, the BlackBerry
Q5 smartphone comes with the re-engineered QWERTY keyboard that allows for faster and more accurate typing, with better spacing between the keys to avoid mis-types, and multi-touch. The keyboard is also wider, and
the device is ultra-slim, making it easy for one-handed operation. It boasts a dual-core 1.2 GHz processor, 5MP AF
primary rear camera and 2MP secondary front camera, full HD (1.080p) video recording, and a 3.1” touch LCD. It
comes with 8GB of storage plus 2GB RAM; and a microSD slot that can accommodate cards up to 64GB in size for
additional storage space. It also has NFC (Near Field Communication) functionality and BlackBerry 10 OS features
like Hub, Time Shift and Story Maker.
www.marketnews.ca, Search News: BlackBerry Q5
Keeping cool: Nikon’s new Coolpix L620 compact ultra-zoom camera features a 14x Nikkor zoom lens that covers the
25-350mm range (135 equivalent), lens-shift optical image stabilization, 18.1 MP CMOS sensor, three-inch LCD, and Full
HD 1080p video recording with dedicated video button. The L620 has a wide range of scene modes, as well as easy auto
mode, and options like red-eye fix and face-priority autofocus. Special effects include skin softening for flattering portraits, quick retouch for removing flaws, and filter effects for creative enhancements. The L620 will be available in Canada
in September, in red and black finishes. MSRP $230
www.marketnews.ca, Search News: Coolpix L620
Push your buttons: The new 2-Button Wireless Keypad
(HTT-B2EX-BATT) in Crestron’s infiNET EX line of wireless lighting control products can be used as a bedside
controller in homes and hotels, a personal workspace
controller, or a conference room presenter selector. In
guest rooms and suites, it can be programmed to perform
tasks such as turn on/off lights or open/close shades. In
commercial applications, an optional lamp-cord tether
provides added security, preventing unauthorized removal. The 2-button wireless keypad can also be used in
residential applications as a portable bedside controller. In
boardroom settings, it can be used to start presentations
and switch between presenters with a tap of the finger.
www.marketnews.ca, Search News: HTT-B2EX-BATT
Band of Misfits: Lauded as one of the most successful Indiegogo campaigns ever, raking in almost $850,000 in record time, the Misfit Shine
physical activity monitor has officially hit the market through Apple
Stores around the world. There are several features that have helped put
the spotlight on Shine, including the fashion-forward wearable design.
About the size of a standard watch face (or a nickel), it can fit within the
included sport band, or optional leather or metal bands, and worn around
the wrist; or placed within the included clasp and worn like a necklace, on
a shirt, shoe, or other spot on the body one might desire. Like other similar
devices, the Shine measures the intensity and duration of the wearer’s
physical activity, and provides metrics like the number of steps taken, distance travelled, and estimated calories burned. It can also be worn at night
to track sleep. The accompanying app stores a visual summary of how the
user is progressing each day, and week-to-week. It is water-resistant up to
50 meters; and powered by a standard, user-replaceable coin cell battery,
which lasts up to four months. This means there’s no need to recharge it,
sync it via cables, or worry that it’ll run out of juice halfway through the
day. US$120
www.marketnews.ca, Search News: misfit shine
Mount in the Sky: Oakville, ON-based Cambre Products’ Sky Cube, available in both single and double-wide designs, mounts
on a wall, neatly holding AV equipment, gaming systems, and other gear whilst also saving space, and adding to the overall
décor. They can also mount to Cambre’s Sky Wall modular AV wall furniture system. There are four models available with 2
and 4-inch heights and 17.5 and 35-inch widths. Depth is 10-inches in two models, and 15-inches in the other two to accommodate larger gear, like AV receivers. Weight capacity is 25 and 50 lbs. for the pair of 2” and pair of 4” models, respectively. The
frame is finished in black powder-coated steel, with a removable black tempered glass top, which makes it easy to wire components during installation: the lid can be easily flipped up and down when needed to access connectors at the back. Cable
management covers are also included. Price ranges from $99.99-$269.99. www.cambreproducts.com
www.marketnews.ca, Search News: cambre sky cube
Singing a Sweet Melody: Soundcast has made its portable outdoor Bluetooth speakers even more portable with the introduction of the Melody, which is
smaller and lighter than the previous versions, and offers longer battery life, plus the same 360-degree enclosure. Weighing just 9 lbs., which is almost half
the weight of the previous smallest model (the Outcast Jr.), and measuring 9 x 9.5-inches, the Melody also doubles battery life to 20 from 10. Similarly designed in a cylindrical shape, it is made using the same rugged and weather-resistant white shell as other Soundcast speakers. A control panel atop the unit
allows for controlling volume, track skip, pause, play, and other functions. It has a carrying handle for easily toting the speaker around. Acoustically, it offers
four full-range High-Q speakers and four bass radiators operating in a stereo 360-degree array; and proprietary SoundCast DPAT (Dynamic Power Amplification Technology) with burst power. Tunes can be played wirelessly via Bluetooth 3.0, supporting the Apt-X and AAC lossless codecs; or via 3.5 mm aux input
wired connection. It can also operate off AC power with the included adapter or 12V adapter for the car. Distributed in Canada by Erikson Consumer. $549
www.marketnews.ca; Search News: soundcast melody
Snake in the bag: With a natural fibre exterior that is organically dyed and capable of repelling water, premium bag manufacturer
Booq’s Viper courier is a slim-fitting laptop bag designed to fit 13” (US$99.95) and 15” (US$109.95) Macs and PCs. Inside, it has a durable
nylon lining and a densely padded notebook compartment to protect one’s laptop. There’s also an area in the primary section of the
bag designed to fit an iPad, while on the outside is a concealed quick-access pocket for an iPhone. There’s a sizeable pocket on the backside that can be used to store paperwork. There are also a pair of pen slots, as well as another
zippered pocket to fit a person’s “creative tools.” The handles can be tucked away and the shoulder
strap is detachable. A neat add-on: register the unique Terralinq serial number and the
Terralinq service can help a person track his bag down if ever lost or stolen.
www.marketnews.ca, Search News: viper courier
Logical choice: Logitech’s TK820 wireless all-in-one keyboard features a sizeable touchpad on the right hand side to provide
the user with a larger surface to point, zoom and swipe more comfortably. Up to 13 Windows and eight multi-touch gestures
can be supported with the download of Logitech’s SetPoint software. Included in the box is a Unifying receiver that once
plugged into the PC, uses advanced 2.4GHz connectivity to wirelessly pair the system with the keyboard, along with four AA
batteries. $100
www.marketnews.ca, Search News: TK820
MARKETNEWS 57
FOCUS ON
Mark Aling
Stats:
Name: Mark Aling
Company Name: Paradigm Electronics Inc.
Location: Mississauga, Ontario
Years in the Industry: 19
Hobbies: Listening to music, playing golf, and spending
time with my kids. I’m also developing a passion for standup paddle boarding.
Q&A:
How did you get into this industry?
I’ve always been into music. Even as a kid, I remember saving money from a paper route to buy the latest
records (is that dating me?) I still remember the look on
my mom’s face when I brought home Kiss Alive II. I got
into the industry after graduating from Sheridan College’s
marketing program. It was a stroke of luck really, (as rare
opportunities sometimes are), that I saw a tiny ad for a
marketing copywriter in The Burlington Post, my hometown paper. The company was AudioStream. I jumped at
it! It was a foot in the door to an industry I knew would be
a lifelong venture. Turns out AudioStream was part of the
Paradigm Group, and I’ve been working for the company
ever since. Am I still as passionate about audio 19 years
later? Absolutely!
When you are not at work, how do you spend
your free time?
I socialize with friends, golf and hang out with my kids. I’m
also an eclectic reader. The last three books I read have
nothing in common. I like non-fiction (mostly business
books on the latest marketing trends) and fiction.
What is your greatest extravagance?
Golf, but that’s not to say that the more money you spend,
the better you will play.
What would you deem the most influential product
introduction of your time?
The iPod. It’s changed our industry. It’s changed the way
everyone listens to music. It’s given people access to
music anywhere, anytime, on the go. On a personal level
and from a Paradigm historical perspective, the Titan
bookshelf speaker was the game changer for us. It put
Paradigm on the map. At the time, the small size of the
Titan versus its incredible output blew people away. It
didn’t just play loud, it played really, really loud for its size.
People loved it; it was made in Canada; and it was a huge
value proposition. For what you paid for a pair of Titans,
the sound and the build quality completely annihilated the
competition.
What does our industry do well? What does it
do poorly?
Our specialty industry is always searching for audio nirvana: higher resolution, greater clarity, and perfect timbral
accuracy. Some may think we’re a bit crazy but at the very
least, it’s a fun, exciting industry. What do we do poorly?
The rate of change in our industry, particularly in the area
of video in consumer electronics, confuses consumers.
The technologies advance so rapidly, people don’t have
time to get accustomed to one technology before it’s on
to the next. I am not sure the industry is doing a good job
58 MARKETNEWS
of explaining these changes to the customer, and why
such changes are valid and worth updating to enjoy. While
the introduction of digital media has helped to attract
new, younger customers to the world of headphones, it
has happened for the wrong reason. Across the industry,
celebrity endorsements talk to product aesthetics. While
aesthetics are critical, so, too, is sound quality. Audio products should sound as good as they look.
If we asked your clients and/or colleagues, what
would they say are your strengths? Weaknesses?
Strengths? They’d probably say my sense of humour. I’m
also a people person, a creative thinker, and a good manager. As for weaknesses, probably my short game.
What has been the best year of your career so far,
and why?
I’m lucky that there have been so many great years.
Nineteen years has gone by in a flash and while some
years have been better than others, there are always new
opportunities and challenges to keep the job interesting.
Mind you, one of my fondest memories working for the
company has to be travelling around NYC for a week introducing Paradigm’s original Cinema Series to the press. All
I had was a backpack containing two Cinema 70 speakers,
a Cinema CC centre channel, and multiple glass bottles of
maple syrup. It took four months of chiropractic visits to
straighten out my spine!
Are you optimistic for the future?
It’s not that my glass is half empty, it’s just that I need another. I’m optimistic by nature. The economy, our industry,
the environment, for the most part, I like to think that as a
society we care about all of it and we care about each other. Audiophiles particularly are a tightly knit bunch. They
find passion in music. As long as there are people creating
music, playing it, sharing it and others who want to listen,
and still others who want to make products that perfectly
reproduce the experience, it would seem to me that the
future is safe. That doesn’t mean we don’t have our work
cut out for us, it simply means that the future is there for
us to carve our path and further cement our niche.
Have you had a mentor? If so, what skills did
he/she teach that have helped you?
Yes. While many people in my life have had a positive
influence, Bill Vandermarel, the Founder of AudioStream,
(the U.S. sales arm of Paradigm) left a lasting impression.
From him I learned the value of industry relationships.
Everybody loved Bill. In the early days, it used to take
forever walking a show because everyone would want to
stop and talk to him. I value those industry relationships
on a business and personal level. Harking back to the
last question, those kinds of relationships also secure the
future not only for the audio industry as a whole, but for
the importance and validity of the specialty industry.
What technology product can you not live without?
Right now it’s the Fitbit. It’s a pedometer that tracks your
Mark with his children Madison (18) and Zack (15).
total number of steps, stairs climbed, distance walked,
even sleeping patterns. It syncs to your computer where
you see all the information on a dashboard. I call it the
gameification of weight loss.
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?
I’m thinking back to how information was disseminated
when I first started in the business. There was no Internet
or e-mail. We visited dealers to get the word out about
new products, services, et cetera. We phoned them to
chat about products. We actually had folding and stuffing
tables where we all joined in to get paper mailings out to
dealers. Everything changed dramatically in a very short
time with the advent of the Internet and e-mail. Suddenly
communication got faster and easier, essentially instantaneous. Online magazines popped up and the AV forums
were suddenly filled with hundreds of bloggers eager to
write reviews. With just the click of the mouse, we are now
instantly in touch with our dealers. Information updates
and corrections are also faster. If we do a price blooper
or a spec blooper, it’s fixed in seconds. Was it better back
then? I think it’s more efficient now. Every era has its share
of pros and cons. We don’t have to remember to buy
enough stamps anymore for dealer mailings and no one
complains about being assigned to lick envelopes during a
major mailing. I think what has stayed the same is the passion. There is still a great passion for this business.
How should retail focus on attracting and
maintaining customers?
Be honest. Good sound quality, good build quality adds up
to great products. Sell those products with good customer
service. Cherish, encourage, expand and protect those
customer relationships. They are the future.
If you were to give one piece of advice to someone
planning on entering the consumer technology
industry, what would it be?
Be flexible, stay passionate and stay current. Always stay
on top of the changes in the industry through learning,
reading, researching and personal involvement with new
technologies.
Tell us something that most people don’t know about you.
My only hole-in-one (and it happened just recently) was
the biggest fluke. It was a 147-yard shot to an island
green that never went higher than six yards. I topped it.
It exploded into a dirt bank just shy of the green, popped
20 feet up in the air, landed on the green, and then rolled
about 35 feet into the hole. Messy, but epic. I loved it!
What’s the best holiday you have ever taken?
Where do you hope to visit next?
My best holiday was Hawaii. Next vacation for me?
Playing courses on the Robert Trent Jones Golf Trail in
Alabama. mn
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Marketnews - September 2013

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