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JB Hi Fi In Restrictive Practises Strife With ACCC

Leading consumer electronic retailer JB Hi Fi is in strife with the Australian Competition and Consumer Commission after allegations of restrictive practises trade practices in Victoria.

Leading consumer electronic retailer JB Hi Fi is in strife with the Australian Competition and Consumer Commission after allegations of restrivive trade practices in Victoria.

The Australian Competition and Consumer Commission claim that they have accepted a court-enforceable undertaking from JB Hi Fi Limited after concerns about the arrangements it made with a small retailer in Ballarat to close its store. Before mid 2007 JB Hi Fi approached (I Can’t Get No) Satisfaction Pty Ltd, a retailer of music in Ballarat, to buy its business. The parties agreed on a sale price with JB Hi Fi intending to trade from Satisfaction’s premises.

However, JB Hi Fi decided that Satisfaction’s premises were too small, so the parties executed a restriction agreement. This required Satisfaction to close its store by a specified date and arrange with its landlord not to re-let the premises to another retailer of CDs/DVDs or games for 12 months. The day after Satisfaction closed its store, JB Hi Fi opened its new Ballarat store.

 

The ACCC was concerned that by JB Hi Fi requiring Satisfaction to stop trading, JB Hi Fi may have contravened section 45 of the Trade Practices Act 1974, which prohibits making of contracts, arrangements or understandings that restrict dealings or affect competition. In particular, the ACCC was concerned that the agreement may have been an exclusionary provision within the meaning of section 4D (exclusionary provisions) of the Act.

JB Hi Fi has provided a court-enforceable undertaking under which it has agreed that it will not, for three years, enter into any contract, arrangement or understanding with any person with whom it is (or is likely to be) in competition to ensure the person will cease trading.

On 5 December 2006 JB Hi Fi provided a court-enforceable undertaking to the ACCC after concerns were raised by the ACCC under the consumer protection provisions of the Act. In that undertaking, JB Hi Fi agreed to establish and implement a trade practices law compliance program designed to minimise JB Hi Fi’s risk of future contraventions of the misleading and deception conduct provisions of the Act.

 

In its most recent undertaking, JB Hi Fi has undertaken to extend its compliance program to include the restrictive trade practices provisions of the Act.

“The present matter underlines the need for companies and their legal advisors to take care in how they structure their arrangements so that an otherwise legal transaction does not move into a possibly illegal one,” ACCC Chairman, Mr Graeme Samuel said. “A simple legal sale of business in this instance was varied into a form more akin to an agreement between competitors to cease competing in Ballarat.”

A copy of the undertaking given by JB Hi Fi will be available on the ACCC’s website, under Public Registers.

Yesterday it was announced that JB Hi-Fi is set to roll out 150 branded JB Hi Fi stores during the next 5 years. This is up from their previous target of 120.

The current plan according to Chief executive Richard Uechtritz will see 13 to 15 stores rolled out each year. The Company is also investing heavily in an online presence to deliver not only an opportunity for consumers to buy online but to identify whether  an individual JB HiFi store has in stock a product a consumer wishes to buy.

 

“This information research shows, is more likely to drive a consumer to a bricks and mortar store than one without a “live” web site. 

JB Hi-Fi said the 150 stores are expected to be of a similar size and sales volume as the existing stores.

The Company is also investigating the opening of smaller format stores with similar product categories in smaller consumer catchment areas.

Chief executive Richard Uechtritz said the addition of new stores in Melbourne combined with expansion in smaller centres such as Ballarat and Townsville had extended the property opportunities available to the company however he has warned that in rural Australia there is limited expansion.

“Several of our competitors are trying to get growth in rural location and we believe this will be one of the hardest hit if there is a downturn. We believe that we can also service this part of Australia online”

In an interview with Live News he said” “Close to half our stores are still to complete the three-year maturity ramp up and with so many new store opportunities we remain very excited about the growth opportunities over the coming years.”

Samsung D600 Given Makeover

UPDATED: Samsung has given their D600 a new paint job by chrome-ing its curves. But it wont fix the problems on the inside.

The Samsung D600 is one of those phones that reminds of that great piece of fruit that looks sensational on the outside but when one sinks your teeth into it you find out that it’s rotten on the inside. Now in Chrome the Samsung D600 is a 2 megapixel sliding cameraphone with Bluetooth. It has a large 88 MB memory capacity, which Samsung claims is enough to store 1000 megapixel photos or 20 of your favourite songs in MP3 format.This phone does look great with its easy slider big keys and a bright screen, but it is let down by lousy Samsung PC Studio software that makes connecting to Outlook difficult which ever way one tries. Then there is the issue of entering data into a contacts database.

There is no space for an address and no space for a business title. Maybe the Korean designers have never been on the road doing sales calls and have to access a phone to check an address. Key today in any phone purchased by a business executive is the ability to easily access Outlook and download contacts. With the D600 we constantly got an error message that said “The connection to the Microsoft Exchange server is unavailable. Outlook must be online or connected to complete this action”. In the testing that we did, Outlook was  connected, yet despite this it was impossible to easily connect to the Microsoft Exchange Server both live in a corporate network where Outlook is always connected or in a stand alone setting from my home PC. 


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Then there is the issue of downloading music. This phone is slow, real slow. To download 10 songs that were on average three minutes in length took more than 45 minutes.

Another problem I found was that a user cannot listen to music and write notes at the same time. A visit to several comment Websites revealed the following complaints about the Samsung D600. All the comments came from consumers who have purchased the phone. They said:

No airplane mode “I’ve tried everything to try and turn the cellular functions off so I can just use the mp3 player but to no avail”. Delayed ring tone “The mp3 ring tones have a slight delay before they are audible. I don’t know if the secret menu can be tweaked to fix this problem”.

No vibrate & ring at the same time – “Sometimes I have it in my pocket in a busy place and I don’t hear it ring. It would be great if it could vibrate at the same time.

No silence button – It says that if I press a certain button it mutes the call, but it only rejects the call even when I change the option to mute the call”. No automatic save and send SMS. Cannot assign mp3 ring tones to SMS tones and can’t change volume of the message tone (unless you use the secret menu option). No multi tasking – “you can’t listen to the mp3 player while you are text messaging someone or receiving a text message”.

The feature set for this phone is very impressive. There’s a Trans-Flash memory slot for upgrading the memory to 512 MB. It has stereo speakers, which compliment it’s ability to playback MP3 music files and MP3 ringtones. It’s a tri-band phone with Java support for games and other applications plus PC connectivity and synchronisation by Bluetooth or USB data cable.

So if you want a mobile phone that looks great and will knock the socks off any other phone in the looks stakes the answer is the D600. But if you are looking for functionality, forget it.


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Samsung D600

 

Price: Changes with carriers

Rating: 2/5

Mobile Apple Phone Coming Soon

Apple is set to launch a brand new mobile phone that will featuring music, video, email, and Internet functions. It will run on a unique Apple network called Mobile Me.

 Apple Computer has requested a set of trademarks for a mobile telephone service featuring music, video, email, and Internet functions, according to applications at the US Patent and Trade Office.

The maker of the iPod music players filed this month to trademark the name ‘Mobile Me,’ for devices and services combining features of the iPod with Motorola’s ROKR telephone and the Blackberry portable communications device.

Appled has asked the patents office to lock in the ‘Mobile Me’ name for handheld devices as well as accompanying mobile telephone service, according to the trademark applications. The telephone service would provide ‘digital music from local or global communications networks’ as well as online databases ‘in the fields of music, concerts, videos, radio, television news’ and more, the applications state.

maker of the iPod portable music player, could be planning to launch its own mobile-phone venture, recent federal trademark filings indicate.

The filings reinforce speculation that Apple would wade deeper into mobile phones in the wake of a partnership with Schaumburg, Ill.-based Motorola (NYSE: MOT) , the world’s second-largest mobile phone maker.

Motorola’s Rokr phone, introduced last year, was the first to feature Apple’s popular iTunes digital music store. The phone has been criticised for inadequacies, but it has still underscored the growing importance of music to mobile phones.

 “I think they will have a device and an MVNO,” said Albert Lin, an analyst with American Technology Research. MVNO is short for “Mobile Virtual Network Operator.” MVNOs don’t own physical networks; instead, they buy wireless time from major networks like Sprint Nextel, and operate under their own brand.

An MVNO would be a good way for Apple to spur downloads of songs from iTunes through a wireless network, Lin said: “They have to find a way to get over-the-air downloading of iTunes.” The first iTunes phone doesn’t have that capability; users can only download songs directly from their personal computers.

By operating its own MVNO, Apple would have more control over distributing and pricing its music services than it would in a traditional relationship with a wireless carrier. “They have to take a more proactive role in developing the [over-the-air] market,” Lin said. Apple’s iPod, known for its style and functionality, has become a consumer electronics icon. The Rokr phone was criticized for lacking the iPod’s style and for holding only 100 songs, about 900 less than the new iPod Nano.

If Apple chooses to make its own phone, it will likely contract out much of the engineering to a firm that specialises in mobile phones, said Ed Snyder, a stock analyst with Charter Equity Research. One Company tipped to pick up the contract are BenQ an OEM manufacturer that recently aquired the Siemens brand. during the recent CES event in Las Vegas a senior BenQ executive did admit that they were talking to Apple about OEM manufacturing. Snyder doesn’t see an Apple phone as a threat to Motorola or other established mobile phone makers. “The mobile phone business is enormously complicated,” he said.

Phones are primarily sold through carriers. Carrier/manufacturer relationships can be tricky. Lin also said he didn’t see an Apple phone venture as a threat to Motorola: “I think Motorola would view it as positive.” Apple might market an MVNO in tandem with a Motorola phone. And Motorola is likely looking for a better outcome from its Apple relationship than it has gotten from the first Rokr phone, Lin said

Sonos, Netflix + Spotify Smash Onto CoolBrands Top 20 List

When it comes to hip cool brands Netflix, Sonos and Spotify have pushed out yesterday brands such as Sony, Bang + Olufsen and Bose in this year’s CoolBrands Top 20.

The fact that Sony, Bose + Bang and Olufsen are seen as old technology is not surprising said analysts. 


Spotify was the highest new entrant in this year’s CoolBrands Top 20, stealing 11th place, while Netflix and Instagram were fifth and seventh, making the top 10 for the first time.

Young brands like Netflix and Instagram are showing clear momentum and posing a threat to established sector peers.
Sonos, the maker of the wireless multi-room speaker systems and a pioneer of the connected home, also joined the index, while high-end home technology designer Bang & Olufsen fell five notches to 16th place and Sony dropped out of the ranking altogether. 

Other luxury brands including Dom Pe?rignon, Rolex, Bose and Selfridges were also knocked out of the top 20.

Apple, which had fans queuing for days last week to be among the first to get their hands on the newly released iPhone 6s and 6s Plus, retained the top spot for the fourth consecutive year.

“Attaining Top 20 CoolBrands status takes time and isn’t the result of a one-year fad or flash in the pan,” said Stephen Cheliotis, chairman of the CoolBrands Council.

“Young brands however, like Netflix and Instagram, are showing clear momentum. They are moving up the Top 20 at a decent pace and posing a threat to established sector peers, suggesting they’ll challenge the leading brand overall,” he said.

While Stella McCartney, last year’s 20th coolest brand, lost its place on the index, rival British fashion house Alexander McQueen rose seven slots to rank sixth. 

High street sports brands fared well amid a British resurgence in fitness activity, with Nike taking fourth place and Adidas joining the list at number 18. Whole Foods Market also entered the index this year, taking 15th place.

The CoolBrands Top 20, now in its 14th year, is compiled from a longlist of 1,450 brands based on the opinions of 2,500 consumers and a judging panel. Brands cannot apply for consideration or pay to be included.

Seagate To Buy Maxtor

Seagate Technology plans to pay US$1.9bn in stock to acquire Maxtor in a deal that would create a company with 40% to 45% of the hard drive market, and combined annual revenue of more than US$11bn.

Craig Davis regional Marketing Manager of Maxtor in Australia said” The merging of the two operations brings together two storage Companies with a wealth of experience. In Australia Maxtor has a stronger retail precence than Seagate and this an advantage to Seagate”. On the distributor front both Seagate and Maxtor use Ingram Micro and ACA Pacific.

Maxtor’s shares leapt 45.13% to $6.56 on news of the deal, though Seagate’s fell 2.04% to $19.20. Under terms of the agreement, Maxtor shareholders will receive 0.37 shares of Seagate common stock for each Maxtor share. This will give them 16% of the combined company, leaving the remaining 84% in the hands of Maxtor shareholders.

Seagate said the combination will create significant synergies and add 10%-20% to Seagate’s earnings per share after the first full year of combined operations. This will not be until 2007 because Seagate does not expect the agreement to close for at least six to nine months. While it expects to save $300m on expenses a year after the process of integration, $500m has been earmarked for costs, including severance payments.

Seagate CEO Bill Watkins said: “With the increased scale of the combined company, we can reduce overall product costs and provide more innovative products at more competitive prices.” For his part, Maxtor CEO Dr CS Park, who will join the Seagate board, would not be drawn on whether it had discussed a merger with any other vendor, insisting it is committed to the Seagate deal. Maxtor will get a $300m payment if Seagate pulls out of the agreement.

Seagate acknowledged that revenue-attrition will result from the merger as OEMs look for alternative suppliers. However, it said the merged company would still be accretive even if it lost half of Maxtor’s revenue. While Seagate is in good financial health, loss-making Maxtor has seen revenue stagnate. While Seagate spoke encouragingly about the quality of Maxtor’s engineers and its production facilities in China, there is little doubt that most of the cost savings will come from Maxtor’s side.

Seagate said it is sticking to its prediction that revenue in the December quarter will grow 17% to $2.2bn, with earnings per share in the range of $0.53-$0.57. It is also retaining its target of earnings per share of $2 in 2006.

Though Seagate’s acquisition of rival Maxtor means one less hard-drive supplier, system builders say there’s not much to worry about. In fact, the deal may just ensure more quality supply as hard-drive makers work to meet rising demand from the consumer electronics market.  Seagate, the No. 1 provider of hard drives in the

“This will mean less choices for us,” said Doug Phillips, senior director of emerging technologies at Seneca Data, but he noted that Seagate, with its five-year product warranty, has been a primarily supplier along with several other manufacturers. Maxtor drives aren’t used often in Seneca products, he said.

Brian Dexheimer, a Seagate executive vice president who runs the company’s channel operations, said the acquisition was less about acquiring specific technology from Maxtor and more about adding manufacturing capacity, particularly in China, and tapping Maxtor’s retail prowess. Maxtor makes about 60 percent of its own media but buys its heads from other suppliers, he said, adding that Seagate makes most of its own components. Seagate will decide which Maxtor products to keep based on customer input, but Seagate won’t be releasing that information until after the deal closes in about six months, he said.

Seagate will need the new manufacturing assets as consumer electronics makers continue demanding more storage. Dexheimer said the hard-drive industry has been growing at 15 percent for the past three years, while storage products for the consumer electronics segment has been growing at 60 percent for the past three years.

“The growth is where it traditionally hasn’t been before, and we are being asked to make different types of products in these spaces,” Dexheimer said.

Todd Swank, director of marketing at Nor-Tech,based system builder, said he has seen no shortages resulting from the growing demand by consumer electronics manufacturers but added that advances in technology will increase pressure for products. He said. more manufacturing capability from Seagate, one of Nor-Tech’s main suppliers, would be welcome as consumers start gobbling up digital video recorders and other technology that allows them to store gobs of movies, pictures and music on a various devices.

“Video will be huge demander of digital storage,” Swank said.

Moving forward, Seagate plans to focus more R&D efforts on rugged one-inch drives with high storage capacities, as well as on drives for cars that can withstand high temperatures and drives with security features like full-disk encryption, Dexheimer said.

According to researcher iSuppli, Seagate is the leading manufacturer of hard drives worldwide, with 28.1 percent of the market in the third quarter. Western Digital had 18 percent of the market in the quarter, followed by Hitachi at 15 percent, Maxtor at 13.8 percent, Toshiba at 9.5 percent, Samsung at 7.7 percent and Fujitsu at 6.4 percent.

Maxtor had been suffered significant losses over the past few years. For its third quarter ended Oct. 1, the company reported a net loss of $17 million on revenue of $927 million, compared with a net loss of $95.1 million on sales of $927 million a year earlier. For its fiscal year ended Dec. 25, 2004, Maxtor reported a loss of $182 million on revenue of $3.8 billion, and in 2003 the company generated $103 million in profit on $4 billion in sales.


 

Apple Replaces USB C Cables As Lenovo + HP PC Owners Struggle To Find USB-C to HDMI cables

Apple has been accused of selling dodgy USB-C charge cables, while owners of new HP and Lenovo PC’s in Australia are having to go to J Car to buy a new USB-C to HDMI cable.

Late last week Apple has a replacement program for a number

of USB-C charge cables it sold last year.

The company says that the recall is based on a “design

issue” that means the cables may stop working correctly.

The recall relates specifically to cables sold during June

2015.

In the case of HP and Lenovo PC’s consumers who have

purchased a Lenovo 900 Yoga or a HP Spectre top end notebook will suddenly find

that their old Micro HDMI cables don’t fit due to the move by PC manufacturers

to start installing HDMI to USB-C technology connectors.

Neither Harvey Norman or JB Hi Fi are currently selling

USB-C to HDMI cables.

The only retailer currently selling these cables is Jaycar

who have a $59 cable in stock from DigiStar.

For Apple owners concerned over their USB C cables – here’s

how to tell if yours is affected:


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“A limited number of Apple USB-C charge cables that were

included with MacBook computers through June 2015 may fail due to a design

issue,” explains Apple.

“As a result, your MacBook may not charge or only charge

intermittently when it’s connected to a power adapter with an effected cable,”

the company continues.

Apple says that all “eligible customers” will receive a new,

redesigned USB-C cable for free.

It’s worth noting that the program also covers USB-C cables

that were sold by Apple as a standalone accessory.

So how do you get a replacement cable? If you’ve already

provided a valid mailing address during MacBook registration, you’ll be sent a

new cable by the end of the month.

Otherwise, you’ll need to provide your MacBook serial number

to verify eligibility. You can then contact Apple through a retail store, an

authorised service provider, or Apple Support, to claim your free cable.

Also, if you’ve already replaced your cable because of this

issue, you can contact Apple for a refund.

Fallout From Dick Smith Hurts CE Industry, For Sale Sign Out At One Distributor

The fallout from the collapse of the Dick Smith retail chain is being felt at CES as several big brands question the exposure of their distributors in Australia.

ChannelNews has been told that one major distributor of consumer electronic products is already up for sale with several parties having already met with management to discuss either an investment or acquisition. The distributor is exposed due to the collapse of Dick Smith by over $800,00.

Among the Companies who have expressed an interest in the distributor is Harvey Norman.

One distributor who is believed to be exposed for over $7M is Yale Prima who was also involved in a messy recall of cables involving Bunnings. It’s believed that Yale Prima does not have insurance cover on the exposed stock.

Another distributor now under pressure is NSW Based organisation Roadhound who insiders claim is exposed for almost $15M dollars.

Also exposed is Philips and Gibson brands, ChannelNews understands that their product was supplied direct and not via Powermove who has the rights to sell Philips audio products in Australia.

Another brand exposed is Toshiba with one insider tipping that the collapse of Dick Smith who were a major buyer of Toshiba consumer PC’s could accelerate the exit of Toshiba from the Australian market. 

Analysts at CES estimate that both JB Hi Fi and Harvey Norman are set to benefit from the fallout with both retailers set to benefit from a surge in first and second quarter sales in excess of $200 Million dollars.

According to sources Dick Smith receivers have already had an offer for the Move Stores and the Dick Smith online operation however there appears to be a problem over the rights to the Dick Smith name being used in a separate online store.

According to The Australian, analysts said the likelihood of a buyer emerging for the business – with 393 stores across Australia and New Zealand – was low, with store closures and industry consolidation a more likely scenario. Morgan Stanley analysts forecast a 9 per cent increase, to $241.2m, in earnings for Dick Smith rival JB Hi-Fi in 2017, while Harvey ?Norman could benefit with a 4 per cent rise to $480m.

Those retailers could suffer in the short term if liquidators move to clear Dick Smith stock, although their bargaining position with suppliers could improve, delivering profitability increases of as much as 20 per cent, they said.

However, several product lines were already unavailable for ?purchase at several Dick Smith stores, with one company insider suggesting a failure to secure bridging ?finance would scupper any chance of trade continuing as normal.

Analysts at Citi suggests the closure of about 100 Dick Smith stores could deliver JB Hi-Fi an earnings uplift of about $19 million in 2015-16.

Analyst Craig Woolford said the closure of up to half the Dick Smith stores was the most likely outcome of the administration “with a new owner taking a business with 25 per cent to 50 per cent fewer stores.”


Mr Woolford said if Dick Smith shut down 100 outlets, which is equivalent to about 25 per cent of the retailer’s 393 store network, its sales base would fall by about 20 per cent.

“We think JB Hi-Fi could capture 50 per cent of sales lost through Dick Smith store closures, this would be $106 million or a 2.8 per cent boost to like for like sales growth,” Mr Woolford told the Sydney Morning Herald. 

“We estimate a total EBIT gain of $19 million in fiscal 2016, comprising $11 million EBIT from additional sales captured and $8 million because discounting in the industry reduces by 20 basis points.”

Mr Woolford said JB Hi-Fi would be the biggest winner from Dick Smith store closures because of the geographical proximity of the competing store networks and the similarity of their product lines.

J P Morgan said Dick Smith was likely to consider the closure of unprofitable stores as part of the voluntary administration process as was an exit of its alliance with department store David Jones.


One high profile retailer, who would only talk anonymously blamed Dick Smith’s demise on clever accounting according to Fairfax Media. 

“They used every accounting trick in the book, whether you pay for it this year or next year you always pay for it eventually,” he said.

“$1.5 billion worth of value has been destroyed if you add up what Woolworths wrote off in the sale, what the banks are now owed, the debt to unsecured creditors and the float, it’s a $1.5 billion hole.

“And they haven’t built any market share or customer equity.”

CE Retailers To Benefit Most From Rate Cut

Consumer electronics retail got a double stimulus today with a 1% interest cut and an announcement by the Federal Government that they are set to pour more money into the economy in an effort to prevent Australia’s economy from sliding into a recession.

Early this afternoon the Reserve Bank of Australia slashed interest rates to 3.25% a move that executives at JB Hi Fi and Harvey Norman welcomed.

“We anticipated 1% and we believe it will help retailers,” said David Ackery the General Manager of Electrical at Harvey Norman.

Earlier in the day the Federal Government announced that they are set to tip more than $40 billion into infrastructure, public housing, business tax breaks and one-off cash payments in an effort to prevent the Australian market going into recession.

Kay Spencer the CEO of NARTA, one of the largest buying groups in Australia said, “We saw what the boost to the economy did for the consumer electronics industry over the Xmas New Year period and I believe that the latest cuts to interest rates along with further Government stimulus will help the industry.”

On the issue of discounting and stock levels she said, “Several retailers are suffering from a lack of stock. There are a lot of back orders in the channel however we do need further price increases and we need margin kept in the channel going forward”.
She added “We also need new models and new products to motivate consumers to spend” she said”.

Currently the Federal Government is forecasting that unemployment will rise to 7 per cent next year a move which Gerry Harvey the Chairman of Harvey Norman said recently would lead to a recession.

Prime Minister Kevin Rudd says the plan provides a basis to see Australia through the crisis, but he has conceded it will not eliminate the country’s economic woes.

Short Throw Projectors Taking The Place Of The Flip Chart

Projector sales are starting to take off again according to GFK with a core market being the office and the purchase of short throw projectors. Sean Fellows, Account Manager at GfK Retail and Technology said “Projectors are now likely to become the flipchart of the digital age consequently demand is likely to continue to rise in the future.”

Projector sales are starting to take off again according to GFK with a core market being the office and the purchase of short throw projectors. Sean Fellows, Account Manager at GfK Retail and Technology said “Projectors are now likely to become the flipchart of the digital age consequently demand is likely to continue to rise in the future.”

He also said that changing working practices and budgets are resulting in a need for greater flexibility within the office. As a lot of work is done digitally, when coming to share this information the need for Projectors and other Audio Visual Equipment has increased.

While GFK Australia does not track office or SMB sales other than via mass market retailers research from IDC and Gartner does show that the SMB and large enterprise market are buying a new generation of projectors.

In the UK projectors have witnessed growth of 38% against the same period last year.Despite the impressive sales of Projectors in 2008, there has however been a noticeable slowdown in unit sales over the past couple month as business cut capital budgets.

Whilst businesses may aspire to equip all their meeting rooms with fully fledged AV suites, within the current trying economic climate this may be no more than a pipe dream. Many meeting rooms are simply too small to deploy a traditional projector with any real success and with a workforce becoming more mobile with the adoption of increasing numbers of Laptops, Netbooks and Smartphones, business technology is becoming more flexible and data projectors are certainly not slacking.

The value of a Portable Data Projector in the mobile workplace is incredibly advantageous, even more so for the new generation of Short Throw Projectors coming onto the market. A Short Throw Projector is defined by GfK as being able to produce an image larger than 1.5M from a distance of less than 100cm. With the benefit of portability and the added bonus of being less reliant on having boardroom sized meeting rooms in which to present, the flexibility of Short Throw Projectors makes them desirable to 21st Century business. This also has benefits within the home as living rooms are getting more compact and space is limited for large screen Televisions.

The latest GfK figures for the UK show that the volumes sold of Short Throw projectors are indeed on the rise, growth increasing on a month by month basis. In September 2008, 2.3% of all projectors sold within the UK were Short Throw models. Interestingly this growth is fuelled by new LCD Projectors, with 5.6% of all LCD Projectors sold in September being Short Throw models, compared to DLP models which contributed to only 0.2% share in the same period. This goes completely against the trend when one looks at the prevalent technologies in the total Projector market. DLP Projectors, which have the greatest volume share standing at 61% in September 2008, have grown massively from the position 12 months ago where they accounted for only 43% of volume sales and LCD Projectors dominated the market.

Sean Fellows said  “The adoption of Short Throw Projectors within the consumer channels are yet to be felt – probably due to the high average selling price. The price elasticity of demand is less elastic within a business than in the consumer market. Consequently the average consumer is unlikely to see the intrinsic benefits when they are able to purchase a large screen Television at a lower price. Nevertheless as the technology becomes increasingly price competitive, a fall in price by a couple of hundred pounds could see the adoption rate rise within the consumer channels”.

Why Gerry Harvey Is Wrong & JB Hi Fi Right

Consumers around the world are moving to online retailing to buy consumer technology products and the move by JB Hi Fi to roll out a national online buying network will hurt arch competitor Harvey Norman whose Chairman came out swinging against the Internet this week.

Overseas consumer electronic stores like Best Buys and Circuit City in the US and Dixon’s in the UK are investing millions in online operations and the move by JB Hi Fi will not only build online sales but drive more traffic to their stores. It will also allow them to build a relationship with a consumer even before they have walked through the door of a store.


Overseas experiences reveal that consumers are researching online for product information and of those consumers who nominate to transact online but want to pick up the goods at a local CE store some 60% actually buy another product while in-store.


 The key advantage that JB Hi Fi has over Harvey Norman is that they own their own retail stores unlike Harvey Norman who operate a franchise model.  This has two distinct advantages. Firstly JB Hi Fi management can make a decision quickly about what happens in these stores and secondly they do not have to worry about any revenue or profit share with a franchise operator.


The Harvey Norman structure creates profit split problems as Tony Gattari a former Harvey Norman General Manager found out some years ago when he attempted to take Harvey Norman online to sell IT gear.


For example if Harvey Norman own the web site and a customer places an order from an area managed by a franchise who gets the sale from the online transaction Harvey Norman or the franchisee who has just lost an in-store sale to Gerry Harvey?

 

In an an interview with the Sydney Morning Herald Gerry Harvey, the chairman of Harvey Norman said that his retail group would not invest heavily in an e-commerce sales channel for many years, citing concerns about online profitability and “cultural” differences in shopping between Australian consumers and the e-retailing boom under way in North America and Europe.”I have been trying to get e-commerce running for 10 years and it’s never worked,” Mr Harvey told the Herald. “There is no growth in our sales on the internet. They’re the same as they were 10 years ago. We might do $30,000 a week and it’s not worth having. It’s a waste of time. The sort of products we sell in Australia people don’t want to buy on the internet.” he told them.


Another big advantage to a CE retailer  is that Australia is a big Country and neither JB Hi Fi or Harvey Norman are in every City as a result rural Australia is turning online to shop for goods that no one stocks in rural stores.


For example, in May 2007 the Digital Home web site which JB HI FI has just acquired from 4Square Media publishers of SmartHouse Magazine achieved 65% of their sales from rural Australia. Research showed that the majority of consumers who made a purchase either had no CE store to go to or they lived so far away from a major town that could support a low margin CE store that online was their best option for shopping.


For major retailers a good online site that is constantly being updated is critical to any retail operation. For example more women than ever before are online and in most cases they have time restraints. So, to be able to go online and research the availability of a product or services saves them time.


In December 07 more than 19.5 million people went through the Circuit City online store in the US this was a jump of some 20% on the year before according to Nielsen Net Ratings.  More than 23 million went through Best Buy.


A big problem for bricks and mortar retailers who have gone online is how to keep their store managers in stores supportive of the online operation.


At Best Buy more than 700 stores share in the credit for online sales transacted through online sales, Senior Vice President of online stores and marketing at Best Buy Sam Taylor said. When Best Buy executives informed store general managers about the expanded credit policy, “we got a standing ovation,” Taylor said. “That’s been the single most important thing to get channels working together.”

 

How it works is that each Best Buy store gets a scorecard that shows the extent of online sales credited to it from BestBuy.com, letting store managers see how well they’re performing in multi-channel sales.


Store allocations are based on a formula that includes postcodes of customers to associate them with their nearest Best Buy store. Key to the success of working out that formula was including store managers in the planning stage, Taylor said.
The credit-sharing policy has brought multiple benefits, Taylor told SmartHouse. Store managers have become more aware of the value of BestBuy.com and have initiated effective in-store merchandising programs using web analytics data gathered from Best Buy.com and segmented by types of shoppers.

When a Denver Best Buy store manager learned that shoppers within a customer segment who like Star Wars video games also tend to like games related to professional wrestling, the manager drove up store sales with a new end-cap display that cross-merchandised Star Wars and wrestling products. “The store got a 70% sell-through and boosted revenue from the promoted products by 198%,” Taylor said. “We’re now making that a best practice for other stores.”

The JB Hi Fi business model will allow the Company to implement this type of initiative far easier than Harvey Norman who are forced to negotiate margins and cost allocation with franchise operators of Harvey Norman stores.