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CONTENTS
Volume 37, Number 5, May 2012
Editor’s Note
One World ......................................................................................................................................................................................... 6
Commercial Installation
Digital Signage at Retail: Content is King
In any digital signage project, companies need to think about what they’re going to display on their electronic screens, and how they’re going to deliver and update content. Network owners can choose from a
variety of content-management systems, from dedicated media players to Cloud-based solutions.
By Marc Saltzman........................................................................................................................................................................... 8
8
Canada’s Consumer Technology
Business Journal
PUBLISHER
Bob Grierson
ASSOCIATE PUBLISHER
EDITORIAL DIRECTOR
John Thomson
jthomson@marketnews.ca, Ext: 225
V.P. SALES
Mary Thomson Grierson
mthomson@marketnews.ca, Ext: 226
NATIONAL SALES MANAGER
Damien Donnelly
ddonnelly@marketnews.ca, Ext: 231
EDITOR
Gordon Brockhouse
gbrockhouse@marketnews.ca, Ext: 227
ASSISTANT EDITOR
Adam Grant
agrant@marketnews.ca, Ext: 223
CONTRIBUTING EDITORS
The Art of Small: Compact Audio Systems
The boom in smartphones and tablets is fueling a secondary boom in audio. Wireless systems, using
Bluetooth or Apple’s AirPlay protocol, are gaining traction. Customers are looking for systems with
good sound quality, and want to hear the product before they buy it.
By Gordon Brockhouse ............................................................................................................................................................14
Custom Corner
Trends in Outdoor Entertainment
14
Outdoor AV is becoming a highly desirable feature for people buying custom homes or remodeling
existing residences. There are many options for getting video outdoors: weatherized flat panels, weatherproof TV enclosures, and projectors. In audio, in-ground subwoofers are becoming a popular option.
By David Birch-Jones .................................................................................................................................................................20
Connectivity and Convergence
CE Moves into the Cloud
20
Makers of TVs, audio components, PCs, smartphones and other products are adding Cloud services
that let users access their photos, music and video on any device, from any location with an Internet
connection. But there are important issues around Cloud technology, including consumer awareness,
bandwidth requirements, security and copyright regulations.
By Frank Lenk.................................................................................................................................................................................24
Going Mobile
The Tablet Space: It’s Not All About Apple
24
While Apple is clearly the dominant tablet vendor, there’s lots to like about Android-based tablets.
They’re available in a variety of screen sizes, with unique feature for activities like videogames. RIM’s
Playbook is still a factor, thanks to a price reduction and software update. The release of Windows 8
later this year will shake the tablet market up even further.
By Ted Kritsonis.............................................................................................................................................................................30
Feature
Go Big or Go Home: What’s Hot in AV Furniture
As flat panels migrate from the man cave to the living room, consumers are looking for quality AV
furniture. Fine wood finishes are in; glass-and-metal is out. Consumers are buying wide, low cabinets to
house their big screens, and low-profile mounts that match the latest ultra-thin panels.
By Dan Blackwell..........................................................................................................................................................................38
David Birch Jones, Peter Burian,
Wally Hucker, Ted Kritsonis, Frank Lenk,
Vawn Himmelsbach, Marc Saltzman
CREATIVE DIRECTOR
Erik Devantier
edevantier@marketnews.ca, Ext: 228
OFFICE MANAGER
Jeanette Bottoni
jbottoni@marketnews.ca, Ext: 221
Art of Merchandising
30
Appliances
Keep Your Cool: What’s New in Fridges
On their 2012 fridges, appliance manufacturers are offering features that help keep food fresher, for
longer. Fridges are becoming more spacious, with features that make food easier to organize and
reach. Coming this year are smart fridges, with LCD screens and Internet connections.
By Vawn Himmelsbach ............................................................................................................................................................44
12V Corner
The Connected Dashboard
Bomar Publishing Inc.
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Copyright 2012. Marketnews is published monthly by
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Publications Mail Registration Number 40015963.
GST Registration R140396912. ISSN: 0714-7422.
The views expressed by advertisers are not necessarily
those held by the Publisher.
38
Retail Tips
eTailing: More Than One Way to Succeed
44
The Internet is a great leveler, allowing niche and regional businesses to compete alongside giants like
Amazon.ca. But successful e-tailing has real challenges. Businesses need the same customer-service
skills as bricks-and-mortar retailers, plus expertise in Website maintenance and shipping.
By Frank Lenk.................................................................................................................................................................................54
Shop Talk
Toronto’s Kromer Radio Closing After 55 Years; London Drugs Equips Sales Staff with iPads; Nationwide
Completes Acquisition of Cantrex.
By Wally Hucker ............................................................................................................................................................................58
Marketnews
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All major 12V vendors offer iOS and Android apps that let smartphone users control the sound system;
and some are adding dashboard components that can control a mobile app on an attached smartphone. Remote-start and 12V security companies have apps that let users start the car, close and open
windows, arm and disarm the security system, and monitor vehicle movement.
By Ted Kritsonis.............................................................................................................................................................................48
54
Samsung Galaxy S III hits Canada June 20.........................................................................................................................62
Pioneer adds five Elite SC receivers.......................................................................................................................................62
Hitfar intros universal micro USB charger ..........................................................................................................................62
Sony unveils new Alpha and NEX system cameras .......................................................................................................63
New TVs, Blu-ray players from Toshiba ................................................................................................................................64
Chief launches new freestanding video wall solutions ...............................................................................................64
Logitech unveils the Solar Keyboard Folio ........................................................................................................................64
Personnel Appointments ..........................................................................................................................................................64
Two new Slimline AV receivers from Marantz ..................................................................................................................65
Denon announces new receivers, HTiB...............................................................................................................................65
New Lowepro Urban Sling Series hits the market .........................................................................................................65
Distribution Appointments ......................................................................................................................................................65
Women in Tech
In her day job, Christina Stefanski is a Public Relations Specialist for Sony of Canada Ltd. After-hours,
she’s a hip-hop performer. ........................................................................................................................................................66
4 MARKETNEWS
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EDITOR’S NOTE
One World
For North American CE retailers, the biggest event on the calendar is CES in January. CES
attracts a lot of international visitors as well, including thousands from Canada.
For the European CE industry, the big show is in September, and happens in Berlin. IFA
Berlin differs from CES in a couple of respects. First, appliances are a major component.
Secondly, the show has consumer days as well as trade-only days. Like CES, IFA Berlin attracts international visitors from Asia, Africa and the Middle East, though not as many from
North America. The dates for this year’s show are August 31 to September 5.
In mid-April, the organizers of IFA Berlin held a two-day press briefing in Dubrovnik,
Croatia. Marketnews was the only Canadian media outlet invited to the event.
In casual conversations and formal briefings, it became clear that European CE retailers
are facing many of the same challenges as their North American counterparts. The market
is dominated by a couple of big-box chains; and independents survive by organizing into
buying groups.
As in North America, sales of smartphones and tablets are booming throughout Europe.
The German market-research institute GfK Group predicts that North American smartphone sales will grow to 142 million units in 2012, up from 105 million in 2011. In Western
Europe, they’ll grow to 101 million from 78 million, and in Eastern Europe to 42 million
from 23 million. Tablets will grow to 45 million from 35 million in the U.S. and Canada.
As in North America, enthusiast audio is enjoying a renaissance. Sennheiser was on
hand showing its new HD 700 audiophile headphones. It also gave a sneak preview of a
high-end headphone amp/DAC combination that it will formally launch in Berlin; it will
sell for about 1,500 euros. The combination of HDVD 800 amplifier and HD 700 headphones sounded absolutely glorious.
Like their North American counterparts, European retailers are having to adjusting to
flattening TV sales, coupled with price erosion. According to GfK Group, LCD unit sales are
flat in Western Europe, growing strongly in Eastern Europe (but from a smaller base), and
growing slightly in North America. But price erosion means revenues are down in North
America and Europe.
Paul Gray, Director of TV Electronics Research for DisplaySearch Europe, expressed hope
that the race to the bottom might let up.“The big brands have realized that you can’t get
people to buy more and more TVs even if you cut the price. The emphasis in the developed world is on returning markets to profitability. The task is to manage stability, and go
for value as opposed to volume.”
The question is where that value will come from. Gray doesn’t see OLED or 4K2K as
magic bullets. He’s more hopeful about the prospects for Connected TV services. U.S.
customers are lagging in their adoption of these technologies, he noted.“They want big
TVs with sparse features.”
The challenge for smart TV is user interface. Speech recognition, motion sensing and
gesture recognition all have possibilities as ways of controlling IPTV services, but they
have drawbacks too. Gray thinks the best bet is “the second screen”: apps on a tablet that
control the TV. These would include an electronic program guide, as well as apps that
enhance the viewing experience. These could be apps that recommend programming, or
allow viewers to participate in the shows they’re watching. Video calling and shared viewing are other possibilities. The key is that these applications be easy to use.
“The classic TV is dead,” Albrecht Gasteiner of the HDTV Forum in Austria said during a
panel discussion on the future of TV.“The computer age in the living room is here. We are
facing the beginning of the agony of TV.”
That’s good news for retailers, commented Jeffrey O’Heir of Dealerscope.“It’s vital that
the home has a robust network. A smart TV is dumb without handholding by retailers.
There’s no profit left in TVs. Dealers are cutting the number of TVs in their showrooms and
using that space to show connected solutions, especially regionals and independents.
You’re going to see more dealers installing networks.”
Maybe the industry forgot a fundamental truth during the flat-panel boom. The key
to success in business, and to satisfaction in our work lives, is creating value. If the move
to smarter TVs gives retailers an opportunity to add value by helping consumers with
networking challenges, that’s a very good thing.
-- Gordon Brockhouse
Adam’s App of the Week: On May 18, Adam put the Ikea app through its paces. He realized that while it helps the shopper pick out items in advance, this could prove to be bad
for business: “Part of the fun (and pain) of Ikea is going to the store blindly and buying more
products than planned. I’m sure such a consumer tendency certainly helps the company’s
bottom line.”
Ted’s Take: The Android OS is everywhere nowadays and although
such a thing is great for reaching a wide array of customers, the fragmentation needs to be toned down quite a bit: “Google may have
loosened the strings on Android considerably from the start, but it’s
probably time to start reining it in to save it from its own growth. Unless
something is done about this, Google risks seeing Android implode into
itself. App developers might be hesitant to support an operating system that doesn’t have any
real standardization in place.”
Photo Tip of the Week: Although it makes sense to shoot the sites when travelling,
capturing images of the locals can add a whole other dimension to the photos you take:
“Whether travelling within your own province or further afield, plan to include human interest
in some photos like the pros usually do. That can help to express the heart and soul of any
destination, whether it’s a familiar city or a remote village in the rainforest.”
GADGET TALK BLOGS
Rumours can spread quickly enough on their own, but they can move even faster when
something like ‘Wedding Time!’ is entered into a Facebook status bar: “Someone could’ve
read that message and spread it around before we even had a chance to defuse the bomb.
Although I think the detonator has been disabled, I can’t say for sure. As far as I’m concerned,
family may think that it’s time to head off to a department store and seek out our registry.”
As the popularity of digital content continues to spread, some still
can’t help but be upset about losing physical copies of CDs and
DVDs: “I must agree that it’s nice to be able to stream and download
movies and music online for free, but it’s still not the same as a hardcopy. Personally, I love being able to pick up a DVD/Blu-ray and turn
it over to read the synopsis of a movie. I enjoy viewing the cover, the
pictures and just opening the case to remove the disc.”
REVIEWS
Some people may not think that a computer display can be exciting,
but Samsung’s Series 7 Smart Station could change that opinion:
“The Smart Station is about as slick-looking a piece of tech sculpture as
anyone could ask for. The LED-backlit screen makes for an attractively
svelte profile, enclosed in sleek white plastic and balanced on a curving
central pedestal.”
VIDEOS
The Sony Entertainment Network recently launched in Canada and
Michael Neujahr, Sony of Canada’s National Manager, Event Marketing & Training, gave us a breakdown of what it has to offer.
DAILY NEWS
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D I G I TA L S I G N A G E AT R E TA I L :
CONTENT IS KING
COMMERCIAL INSTALLATION
By Marc Saltzman
With digital signage expected to become a $14 billion
global industry within five years, one thing is perfectly
clear: the future of digital signage is as bright as the
screens it’s displayed on. The electronic screens that display information, advertisements and other messages are
no longer limited to airports, hotels, malls and highways.
Smaller businesses – storefronts, offices, restaurants and
even taxicabs – are embracing digital signage as a dynamic way to reach consumers.
The key to engaging these viewers is compelling content. This means that the process by which sign content is
developed, displayed and updated is crucial to the success
of any digital signage project.
At its 129 theatres, Toronto-based Cineplex Inc. has large banks of digital signs, in the lobbies and at concession
stands. Before embarking on a signage project, it’s vital to develop a content strategy, says Darren Solomon, the
chain’s VP of Entertainment Content. “You’ll need to define everything from viewer demographics and their mindframes, to content budgets and playlists, to creative tone and assignment of responsibility for content maintenance.”
Content Strategy
Information, media and advertisements can vary greatly
from screen to screen, based on the unique needs of the
business and its clientele. A large sign warning motorists
about road closures is obviously quite different than a
menu board in a fast-food restaurant.
It’s critical to figure out what content is needed, and to
create or source the content before the installation process,
notes Darren Solomon, Vice President of Entertainment
Content at Toronto-based Cineplex Inc. Cineplex has large
banks of digital signs in its 129 theatres, and also operates
Cineplex Digital Solutions, which has developed digital signage systems for clients such as CIBC, Scotiabank, Future
Shop, Holt Renfrew and Sears.
“One of the biggest mistakes brands, retailers and other
digital signage users make is going out and buying a cool
screen and some state-of-the-art software and then figuring out what they’re going to put on it once it’s installed,”
Solomon points out. “That’s when you end up with very
expensive screens showing nothing but stale content or,
even worse, nothing at all.”
Before embarking on any signage project, companies
(and integrators) first need to define the project’s objectives. “It may be to keep kids busy in a bank while their
parents are in line, to provide information such as a
restaurant menu, or to drive in-store sales of a product,”
Solomon says.
Pizza Pizza Limited has deployed digital signage in
many of its 600 locations. “We update this exclusive
content on a campaign basis, by featuring our current
specials, new product launches and any other related
content such as community initiatives,” says Chief Marketing Officer Pat Finelli.
In a space of 11 months, London, ON-based EK3 Technologies Inc. outfitted more than 2,700 Tim Hortons
restaurants with four or five digital menu boards each.
“It’s one of the best implementations in the world,” states
Nick Prioginiero, President and CEO of EK3. “We had to
be in and out of the stores very quickly.”
Once you’ve solidified your objectives, the next step is to
develop an overall content strategy. Elaborates Solomon:
“You’ll need to define everything from viewer demographics and their mind-frames, to content budgets and playlists, to creative tone and assignment of responsibility for
content maintenance.”
The Canadian restaurant chain Pizza Pizza has implemented digital signage in many of its 600 locations. “We update
this exclusive content on a campaign basis, by featuring
our current specials, new product launches and any other
related content such as community initiatives,” explains Pat
Finelli, Chief Marketing Officer at Pizza Pizza Limited.
Finelli, who manages an extensive marketing department that houses design and special events teams, promotions, marketing and community relations specialists, says
the teams storyboard the creative elements, design the
project and update it in time to roll out at the start of the
campaign launch date. “Our Pizza Pizza TV lobby screens
run a 20-minute playlist that includes a combination of
advertising and entertaining content, such as music, interviews and other local updates about events or news in the
area,” he explains.
Customers can also send in their own content (via pptv.
ca), which also may end up airing on PPTV, says Finelli.
Updated weekly, each playlist may contain different content pieces in order to avoid the repetition.
Overview
• For any digital signage project, a content strategy is critical. Companies need to think about objectives,
viewer demographics, budgets, and overall creative tone.
• Network owners can choose from a variety of content-management systems, ranging from dedicated
media players with companion software to Cloud-based systems.
• Integrators lacking in-house content creation capability should consider partnering with a graphic
development service.
Managing Content
Cineplex’s Solomon says the company’s content strategy,
and the physical environment in which it’s executed, will
dictate the type of hardware and software needed for the
digital signage project.
“Some content, like stock prices and menu boards, can
be set up to be updated automatically, which lowers the
need for deep manual intervention,” he advises. “Other
content can be done internally or outsourced to agencies and freelancers. It really depends on your resources,
budget, and expectations for the level of creative you want
to offer.”
Karem Banna, Director of Sales for Audio Video Innovations (AVI) in Burlington, ON, says how the digital signage
content is displayed on the screen is typically negotiated
with the network owner and controlled by the network
software. “Good software will easily facilitate content storage, layout and update abilities,” he elaborates.
AVI’s software allows content to be updated every minute,
if so desired, and is only limited by the network speed and
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size of the content update. Updates can be scheduled to run
at specific times well in advance, if preferred. “Network owners really become project managers,” says Banna.
AVI has developed its own Web-based software portal,
which can be customized to suit individual clients’ needs.
Banna says AVI can skin the software to a client’s specifications, with the client’s own branding, so that it appears
to belong to that particular retailer.
“Different levels of access, security and data manipulation can be assigned to different users,” he adds. “Whether
it’s a single digital sign or a network of thousands of
units, it can all be controlled from a single desktop.” The
software also allows for advance planning, layouts and
scheduling, giving retailers control over what goes onto
their network, when and for how long. “This is assuming the retailer is the initial owner of the digital signage
network itself,” Banna notes.
AVAD Canada, which recently added digital signage to
its suite of products and services, says it provides integrators with different options for managing content. The
choice will depend on the content desired and the level of
customization required.
Canadian Sales Manager Scot Kerek says he recommends NEC’s Content Management Software (CMS). “It’s
fully hosted by NEC Display solutions for free, so there are
no monthly fees,” he explains. “Plus CMS is scalable from
one display to multiple displays, and is integrated with
ad delivery, inventory management, billing and payment
systems, and a reporting platform.”
A Windows-based PC is required to run CMS, which Kerek
says is “as simple to use as Microsoft PowerPoint.” There are
more than 30 pre-configured templates and skins to choose
from, and the system plays most full-motion media types.
Alternatively, AVAD sells a media player under its
ProConnect line (an AVAD brand), which can be ordered
with or without Navori software. “Navori allows greater
control of content than CMS,” Kerek says. But after the
free one-year subscription included with the media player
and Navori software, there is a $50 monthly fee. Dealers
can learn how to create content and push it to the digital
display through a webinar offered by Navori.
AVAD also offers custom content development work to
those who need it, through a company called Chicago Digital.
Gefen (an AVAD vendor partner) recently added new pieces to its digital signage lineup, which includes five media
players ranging in price from $499 to $1,599. “The choice
of models is mainly driven by the need to include dynamic
content, such as RSS feeds and weather, along with the
main content delivery, and whether the content is delivered
using a wireless or wired networked system,” Kerek says.
Content is created using the supplied Gefen software, with
several templates, or downloading it free online.
John Novak, Director of Digital Signage at Gefen, LLC, believes customization is important, as there isn’t one solution
to meet all needs: “There are different software programs
available, depending on the amount of capability and control you want.” Gefen’s Digital Signage Director software, for
example, is “very in-depth,” says Novak, enabling users to
create “really complex content you can design from scratch.”
On the other hand, some of Gefen’s Digital Signage Media
Players come with pre-designed templates that clients can
use to jump-start content development.
In the Cloud: Cloud computing is changing the way
Karem Banna, Director of Sales, Audio Video Innovations: “Bringing all the assets together – such as videos,
images, ads, RSS feeds and alert programming – and
planning the network and screen layout, are skills that
will separate integrators.”
Steve Harris, Vice President and General Manager, Cineplex Digital Solutions: “There is a growing realization
that a properly executed digital signage strategy can enhance the customer’s shopping experience to ultimately
build the retail brand.”
Pat Finelli, Chief Marketing Officer, Pizza Pizza Limited:
“We charge suppliers for airtime on our lobby screens.
This is a trend that will continue to grow, along with
other newer channels such as online and mobile.”
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MNMAY12.indd 11
6/1/12 11:40 AM
COMMERCIAL INSTALLATION
For interactive touchscreens in its retail stores, SaskTel is using iQmetrix’s Cloud-based
XQ Interactive Retail platform. The kiosks help customers choose a wireless phone and
suitable plan.
data is managed, accessed, delivered and stored for many
businesses; and the digital signage space is no exception.
Christopher Krywulak, President and CEO of Vancouverbased iQmetrix, says his company’s XQ Interactive Retail
suite of in-store signage solutions takes advantage of
Windows Azure technology to offer retailers a Cloud-based
retail solution.
“There is no need for local hardware or servers,” Krywulak elaborates. “And no technical expertise is required
when installing cloud-based media players. All you need is
a standard fixed-line Internet connection and you’re ready
to go within minutes. Cloud-based media players use the
Internet to connect to an online service, ensuring they are
operating correctly and displaying the latest content.”
Krywulak also points out that a Cloud-based service
allows users to manage content for from one centralized
location. Support and free software updates are available
“from the moment you trial the solution through to rolling
out a network of a few (or maybe a few thousand) media
players,” he adds.
Advertising
Opportunities
While the cost of creating and maintaining digital signage
networks has come down significantly over the past few
years, the expense is still an important consideration. To
help offset the costs of digital signage, or to create new
revenue streams, many businesses are incorporating advertisements on their digital signs.
“We charge suppliers for airtime on our lobby screens, as
we have a substantial number of walk-in customers,” says
Finelli of Pizza Pizza, whose signage network uses a content management system by I-Connect. “There is a lot of
value in reaching out to our customers, so we think this is
a trend that will continue to grow, along with other newer
channels such as online and mobile.”
AVAD’s Kerek says it’s common for retailers, such as
sports bars, to solicit neighbouring retailers for advertisements. “They will charge the neighbouring retailers for this
service and can very often pay for the entire system fairly
quickly,” he notes. “We have also seen dental offices place
a display in every ‘chair room’ and then sell the advertising space, inter-mixed with oral-care info, to suppliers or
neighbouring physicians.”
AVI’s Banna says the formula for digital signage adver-
The Denver Center for the Performing Arts in Denver, CO has a digital signage network with 13 flat panels throughout the lobby. Content is delivered by 13 Gefen Digital
Signage Creator (DSC) media players, and was developed with Gefen’s software.
tisements is similar to TV advertising: more impressions
mean higher advertising fees. “The digital signage network
in Walmart in the U.S. is now one of the largest networks
in terms of generating revenue from advertisements,”
Banna observes. “This trend is growing rapidly as it is a
source of revenue for retailers, and becoming a way for
manufactures to get their brand message directly to their
target market at the point of purchase. Compared to television advertising, digital signage advertising is extremely
cost-effective.
“How retailers and other network owners bill their clients
is ultimately determined by them,” Banna continues,
“but they need to be aware of fair market value for their
particular network, and their impression rate. With more
sophisticated software, billing can be automated. The
software can automatically generate invoices and send a
monthly statement to the client.”
Steve Harris, Vice President and General Manager for
Cineplex Digital Solutions, warns that integrating advertising into in-store digital signage has long been a challenge.
“If it’s not done well, it can be a negative experience for
customers,” he says, “especially if the ads aren’t directly
relevant to their shopping experience. There is a growing realization among retailers that a properly executed,
balanced digital signage content strategy can serve many
more objectives than generating ad dollars, including driving sales, increasing awareness of store services, and enhancing the customer’s shopping experience to ultimately
build the retail brand.”
The Role of the Integrator
Integrators need to work closely with customers, such as
retailers, to determine the marketing goals for the digital
signage projects, and isolate any location-based issues
before deployment.
“Integrators need the traditional custom home installation skills to start,” says AVI’s Banna. “They need a clear
understanding of how to manage complex networks and
systems, and the associated challenges of running long
runs of wiring and sending signals across them.”
It’s also critical for an integrator to understand the
content-management software they’re using. “Software
should facilitate the initial set-up and media manipulation
to suit the client’s needs,” Banna explains. “Bringing all the
assets together – such as videos, images, ads, RSS feeds
and alert programming – and planning the network and
screen layout, are skills that will separate integrators.
“The integrator (or better stated, the network owner)
usually has a number of clients across their network. They
work with clients so that content is provided to them, and
the network owner has complete control over what is
promoted across their network.”
Content – be it text, images, video or audio – is developed, edited and approved before being placed on the
digital network. “The client can have the assets on hand,
such as a commercial they run on TV, or work with their
own creative team to develop content specifically designed for the network,” Banna elaborates.
George A. Borden, Digital Signage National Sales Manager at Black Box Corporation, agrees with Banna about
the comprehensive role of the integrator. “An integrator
should, at the very least, have a basic understanding of IT
and networking. And it’s a plus if they can sell content development services. If the integrator is weak on either side
there are numerous companies out there that can assist.”
Headquartered in Lawrence, PA, Black Box has Canadian
branches in Toronto and Markham, ON, and Richmond BC.
The dynamic between the customer and integrator
depends on the integrator, Bowden says. “Those that offer
content development services differ in approach to those
who do not; if an integrator offers content services then
usually it becomes part of the discussion. Those who don’t
can always partner with a graphic development service.”
AVAD’s Kerek agrees most of the installation work
shouldn’t be new to integrators: “You need to be able to
pull wire, hang a display, set up or add to a network, add
audio to the mix to enhance a presentation, and perhaps
add a user control system in a central location.” Kerek adds
that when creating content is new to an integrator, “They
may elect to work with the client on this themselves, or
farm it out to a third party if the content is more complex.”
For video, the signal itself is usually sent via DVI cable,
says Kerek, “as the connector is more robust and can
mechanically be secured with screws to the panel so it
doesn’t fall out as easily.” HDMI can also be used, though
it doesn’t seem to be as popular. “Some HDMI connectors
provide a screw lock connection too,” Kerek says. “Both
work equally well.”
Gefen’s Novak lists several questions integrators should
ask themselves about their in-house capability: “Do you
have someone who can manage the process? Do you need
a full-time content developer? Is this something your ad-
12 MARKETNEWS
MNMAY12.indd 12
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© 2012 Christie Digital Systems USA, Inc. All rights reserved.
COMMERCIAL INSTALLATION
ministrative assistant can handle?” Integrators may be able
to manage small installations in-house, simply changing
schedules and updating content on a computer. “For largescale design projects, or those that require integrating live
video, you may want to rely on the experts,” he suggests.
When installing digital signage programs, it’s critical
to keep disruption of store operations to a minimum,
observes Nick Prioginiero, President and CEO of EK3
Technologies Inc. Based in London, ON, EK3 develops and
implements solutions for many large enterprises, including
Bank of Montreal, Royal Bank, McDonald’s and Tim Hortons. For physical installation and staging, EK3 works with
IBM Global Services, Compugen Inc. and Coxcomm Inc.
With Tim Hortons, more than 2,700 stores were outfitted
with four or five digital menu boards per location, all in
less than 11 months. Staging was handled by IBM Global
Services. “It’s one of the best implementations in the
world,” Prioginiero states. “We had to be in and out of the
stores very quickly.”
For integrators, Prioginiero offers this piece of advice:
“The key is finding your sweet spot, where you can deliver
value to your customer. Understand what you can do and
go after it.
“From an operations point of view, ensure that you fully
understand what the client wants to do,” he continues.
“Define the scope of your work and get in writing, with a
sign-off from everyone involved. Choose partners who can
execute, and get their sign-off on deliverables. Work hard to
execute to meet the client’s expectations so you can point
at your work as an example of what you can do.” mn
Christopher Krywulak, President and CEO, iQmetrix: “With
a Cloud-based solution, there is no need for local hardware
or servers. All you need is a standard fixed-line Internet
connection and you’re ready to go within minutes.”
Nick Prioginiero, President and CEO, EK3 Technologies
Inc.: “The key is finding your sweet spot, where you can
deliver value to your customer. Understand what you
can do and go after it.”
Scot Kerek, Canadian Sales Manager, AVAD: “You need to
be able to pull wire, hang a display, set up or add to a network, add audio to the mix to enhance a presentation, and
perhaps add a user control system in a central location.”
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6/1/12 11:40 AM
The Art of Small:
Selling Compact Audio Systems
ART OF MERCHANDISING
by Gordon Brockhouse
Two of the hottest categories in CE right now are smartphones and tablets. According to Ipsos-Reid, by January
of this year, 34% of Canadians owned a smartphone, up
from 24% at the beginning of 2011. Ten per cent of Canadians owned a tablet, up from 3% in January 2011.
But there’s another very hot category, which is partly fueled by the boom in tablets and smartphones: high-quality
compact audio systems. People carry music around on
their mobile devices, and they want to listen to it out loud.
Pat McKeever, President of Lenbrook Industries Ltd., says
his company is experiencing “gangbusters growth” on its
Viso, Geneva and Tivoli audio products. It’s part of a larger
boom in audio, he notes. “People are buying all kinds of
two-channel audio. I can’t believe how sales are growing,
in every category.”
Comments Martin Hill, Sales Manager for Yamaha Can-
ada Music Ltd.: “This is an awesome category for us.” Hill
says Yamaha’s number-one SKU in unit sales during 2011
was its compact MCR-040 music system, which combines
an iOS dock with CD player, FM radio and USB input. The
MCR-040 is available in 10 colours, and Hill says style is a
big reason for the product’s success. “Fashion plays a big
part in this category,” he states. “Showing colours is a great
sales technique.”
Derek Collier, Vice President Merchandising for Audio
Video Unlimited, calls compact audio “a great, growing
category. It’s something that independents have shied
away from in the past. Commodity retail does a better job
with docking products.”
That’s changing as specialty brands enter the category.
AVU stores carry compact audio products from brands like
Bose, Boston Acoustics, B&W, Denon, JBL, Monitor Audio,
NAD, Pioneer and Yamaha. “Now that specialty audio
manufacturers are into this category, independents are
Overview
• The boom in smartphones and tablets is fueling a boom in all kinds of two-channel audio, including
compact sound systems.
• Wireless capability is emerging as a key feature. Customers want to use their phones while they stream
music to a wireless speaker.
• Many customers are now buying their second or third docking system; for these buyers, sound quality
is a priority.
beginning to embrace it,” Collier says.
People have been carrying digital music around for well
over a decade. But as the iPod gives way to the iPhone,
iPad and various forms of Android devices, listeners are
looking for different kinds of audio products to go with
them. Wireless capability is becoming important. As
McKeever notes, “People with smartphones love the idea
of sending music wirelessly.”
Moreover, many customers are now buying a docking
product for the second or third time, and they’re more discerning. And there’s a much greater selection of products
available, some of which use mobile apps for innovative functions. All of these trends are changing the way
compact audio products need to be merchandised and
demonstrated.
Product Selection
Wayne Mayall, Director at Erikson Consumer, says the
market for docking audio products has become highly
diverse. As an example, he points to Disruptive Ltd.’s
GEAR4 lineup, which Erikson distributes in Canada. The
GEAR4 line includes a range of licensed products. GEAR4’s
Angry Birds portable and home speaker docks “have been
a huge hit over the past six months,” Mayall states.
GEAR4’s Renew SleepClock provides an interesting
glimpse of how smart devices are transforming every
category, including audio. The product looks like a stylish
clock radio with an iPod dock, which it is. But it’s also
14 MARKETNEWS
MNMAY12.indd 14
6/1/12 11:40 AM
ART OF MERCHANDISING
The Geneva Model M is
a self-contained music
system with iPod dock,
FM tuner and two-way
stereo speakers driven by
four Class D amplifiers.
It’s available in red, white,
black and walnut.
something more. The Renew SleepClock monitors movement and breathing while you sleep, and wakes you up
at an appropriate stage in your sleep cycle. An app on the
attached iDevice lets you monitor sleep patterns.
“Appcessories” like the Renew SleepClock raises some
interesting questions for retailers, one of them being
where and how to sell it. It’s an audio product to be sure,
but it’s also a health-and-wellness product. “As dealers add
appcessories, there’s a lot of discussion as to where they
might be merchandised,” Mayall comments. “Some dealers
are treating them separately as a category, with separate
buyers and merchandising teams. Some are adding a
brand-new eight-foot section for these products.”
And there’s a more fundamental question: with so many
products available, what do you carry? “The market is
flooded,” Mayall states. “The question for dealers is how to
separate myself from the herd.”
The way to do this is through a creative product mix, he
says. “Retailers need to focus on having the right dock for
their customers. We’re seeing a lot of success with dealers
who are more boutique-oriented, who have done due
diligence for their customers, on feature set and quality.”
Lenbrook insists that its Geneva, Tivoli and Viso dealers
carry a comprehensive lineup, and use the official display
for the brand. “We want them to showcase the entire
brand offering as it’s intended to be shown,” McKeever
says. “The displays are designed so it’s easy to demonstrate any model.”
For AVU, a few fundamental considerations influence product selection. “We try to focus on sound quality and semiexclusivity,” Collier says. Docking audio products are being
displayed in a variety of areas in AVU stores. Some locations
carry docking products in the custom area, showing how
they can integrate with whole-home audio systems. Some
Appliance Unlimited Stores also show docks in the appliance
showroom, so customers can see that it’s possible to enjoy
good sound in the kitchen. Some stores have a small audio
wall on which there are several compact systems.
Yamaha’s Hill says dealers need to embrace the category, and stock a diverse product mix. “The number-one
issue we have with retailers is that they just carry one or
two items,” he elaborates. “It’s not treated as a category. If
I were doing my own store, I would create a destination in
the store for digital audio, instead of carrying a hit product
of the week. I’d become an Apple audio specialist. I’d talk
about the MCR-040, about DACs, about AirPlay speakers, about Android-friendly devices. I’d have a family of
streaming products.”
Different groups of customers will have different priorities, of course. Hill says CD-equipped systems still resonate
with Yamaha’s core customers. “Our products with CD outsell those without CD. People who buy Yamaha are audio
people who still have CD collections.”
Al Beischer, Audio Manager and Buyer for Winnipeg’s
Advance Electronics, believes CD playback is a feature for
the baby-boomer crowd. “Buyers who are over 50 want a
CD,” he says. “Young people don’t know what a CD is.” Referring to the broader two-channel market, Beischer notes
a peripheral trend. “The under 30-crowd is big on vinyl,
and under-20s are big on turntables with USB output.”
Dockless Docks
The store’s product selection will also reflect the mobile
devices its customers are using. When people were just
using iPods as their music sources, they wanted a product
with a dock. But docks are about to disappear, Mayall
believes. “The compact audio category is reinventing itself
with wireless. By calendar 2013, most docks on the market will be wireless.”
The change began in late 2010, when Apple introduced
AirPlay, a protocol that lets users stream music to an audio
playback device over a Wi-Fi network from an iTunes
library on a Mac, PC or iOS device.
AirPlay has had a slow start, many vendors say.
Launched late last year, the Klipsch Gallery G-17 Air
compact sound system has AirPlay support, but no built-in
dock (however, it does have a USB connector that accepts
an iDevice). Dick Tuerlings, Managing Director of the
NAD’s Viso 1 has received critical acclaim for sound quality, including a Gear of the Year Award for 2011 from HERE’S
HOW!, Marketnews’ sister publication. It combines a single 5.75” ported woofer with dual 2.75” full-range drivers.
Music a Go-Go
Yamaha’s PDX-11 portable sound system lets you enjoy digital music just about anywhere. You can connect
an iPod or iPhone to the top-mounted dock, or connect a portable music player to the 3.5mm jack. Sound is
produced by a two-way speaker, with 4” woofer and 1.4” tweeter. The PDX-11 will play for eight hours from
a set of six “AA” alkaline batteries; and can also be powered from AC. Available in black, dark blue, green and
white. $150.
MARKETNEWS 15
MNMAY12.indd 15
6/1/12 11:40 AM
ART OF MERCHANDISING
Beischer says, “so we don’t see many Android devices.”
Apple’s iOS is the dominant smartphone platform among Advance’s customers. “We’re seeing more iPad as well,” Beischer
adds. “The iPad is becoming the new remote control.”
Lenbrook’s McKeever is a proponent of Bluetooth, not
surprising given that the NAD Viso 1 supports Bluetooth
streaming, but not AirPlay. Bluetooth allows streaming
from Android devices and iPads, which the Viso 1’s rotating iPod dock will not accommodate. Buy even for iPhones
and iPod touches, Bluetooth has advantages, McKeever
maintains. “Bluetooth is intuitive and easy to set up. That
means fewer returns. Bluetooth is portable. You don’t need
a network, as you do with AirPlay. You can take Viso to the
pool or the cottage.”
Perfect Cube
The Renew SleepClock from GEAR4 features an iOS app
that monitors sleep patterns. It wakes users up at an
appropriate point in their sleep cycle.
In addition to AirPlay capability, the Klipsch Gallery G-17
Air has a USB input that supports direct play from iOS
devices. Sound comes from a two-way speaker system
with horn-loaded aluminum tweeters and 2.5”
long-throw woofers.
Klipsch Division at Gentec International, says the G-17 Air
“has done OK. The challenge in talking to the retail channel is awareness. AirPlay is not being promoted by Apple.
It’s news to Apple users; they don’t know how cool this
can be. The only way to change this is proper display.”
But Tuerlings is optimistic about AirPlay’s prospects.
“Once people know you can have your iPad on the coffee
table and stream music to a speaker, they’ll embrace it,”
he predicts.
Mayall has much the same view. Erikson is the Canadian
distributor for JBL, whose OnAir dock was the first portable
sound system with AirPlay support. “When we launched
OnAir in May 2011, there was a lot of anticipation around
this product, and a lot of support from the retail community,” Mayall recalls. “It wasn’t as successful as we all
expected and hoped.”
A year later, the situation is quite different. “I believe
AirPlay has a large part in the future,” Mayall says. “Customers understand the feature. Apple is putting more into
marketing it. They’re de-listing non-AirPlay products in
their stores. I believe it will become extremely important.
“There will be a big push for dockless docks this year,”
he predicts, “so people can use them with tablets, Kindles
and Android devices. This is where manufacturers see the
market going. Last year, there was a big belief that cus-
tomers wanted docks. Now customers don’t want to leave
their device on a dock. They want to be able to answer
calls and surf the Web. So you should include wireless
products in your selection.”
Collier agrees. “We feel people don’t want to dock their
products. They want to text and do social media while
they listen to music.” And of course, it’s much easier
choosing the music you want if the device is in your hand,
rather than in a dock.
Apple isn’t the only smartphone platform; and AirPlay
isn’t the music streaming protocol. There’s also Bluetooth.
While its primary application is for hands-free telephony,
newer incarnations of Bluetooth are also being used for
two-channel digital music streaming. iOS devices can
stream music via Bluetooth, but this capability is even
more fundamental with Android devices. Third-party apps
allow Android devices to stream music to AirPlay speakers and receivers via Wi-Fi, but Bluetooth streaming on
Android devices works out of the box.
“Bluetooth is important for Android,” Collier observes.
“The majority of our customers still use Apple, but Android
is increasing all the time. More people are coming in with
those devices.”
The situation is different at Advance in Winnipeg. “MTS
[Manitoba Telephone Services] doesn’t do a lot of Android,”
Wayne Mayall, Director, Erikson Consumer: “We’re seeing a lot of success with dealers who are more boutiqueoriented, who have done due diligence for their customers on feature set and quality.”
Martin Hill, Sales Manager, Yamaha Canada Music
Ltd.: “Fashion plays a big part in this category. Showing
colours is a great sales technique.”
LG’s ND8520 speaker dock looks like a blackand-grey Rubik’s Cube. Its top-mounted dock
can accept an iPod, iPhone and even an iPad.
You can also use AirPlay to stream music wirelessly to the ND8520 from an iOS device or an
iTunes library on a Mac or PC. Sound is produced by side-mounted stereo speakers and a
downward-firing woofer. $350.
Dick Tuerlings, Managing Director, Klipsch Division,
Gentec International: “AirPlay is news to most Apple users.
Once people know you can have your iPad on the coffee
table and stream music to a speaker, they’ll embrace it.”
16 MARKETNEWS
MNMAY12.indd 16
6/1/12 11:40 AM
ca.yamaha.com
The eye-catching MCR-040 offers a palette of 10 colours
so you can match your music... your room... your iPod... or
just pick your favorite color. With its stylish metal finish,
they not only look and feel great, they sound simply
amazing—the perfect system for every music lover.
Perfect for listening to the blues
...or the reds, or the greens...
Light Blue
Red
Dark Green
Orange
Light Grey
Dark Grey
White
Brown
Pink
What colour is your music?
Find us on Facebook/yamahaaudiocanada
MNMAY12.indd 17
6/1/12 11:40 AM
ART OF MERCHANDISING
Bamboo Club
Al Beischer, Audio Manager and Buyer, Advance Electronics: “The number-one issue is sound quality. It’s less about
price. Does it sound good with my iPhone or iPod?”
Showing it Off
Agreement is virtually universal that today’s customers expect a demonstration when shopping for a compact sound
system. They want to hear the product. It’s also important
to show how wireless features work. With Bluetooth, that
means pairing the sound system with a mobile device.
With AirPlay, it means having a wireless LAN in the store.
Collier says all AVU stores have networks for demonstrating products. “We started this two years ago, so that
our retailers could demonstrate smart TV. We let people
use their devices on our network; but we also have our
own tablets in our store to demo. Some people don’t have
a great music library. We have an Rdio account as well.”
Advance Electronics has a working wireless network as
well. “We have had a dedicated network for demonstrations for about a year,” Beischer says. After it lit up the network, the store had to address some performance issues.
When customers came into the store, their devices would
search for and find the network; and this caused congestion issues. The solution was to configure the store’s router
to allow access only from MAC addresses of store products. “We’re not changing demo products all the time, so
this isn’t a problem,” Beischer says. “Our custom division
manages this.”
But the main point of the demo is to show off sound.
“The core of the product story remains the audio story,”
Mayall says. “More and more customers want to hear the
product. That’s changed in the last 18 months. In the past,
a lot of people bought inexpensive docks. Now they’re going to market and they’re expecting to hear quality before
they purchase.”
Yamaha’s Hill agrees. With a system like the MCR-040,
it’s important to show customers how it sounds. “This
is a hi-fi system, so a demonstration is important. With
Yamaha, we’re usually $100 over comparably featured
products. We need to offer great sound that’s valued $100
over competing products.”
Comments AVU’s Collier: “In an independent store, most
customers want to hear the product. With our price points,
the majority of customers want a demo, because we carry
upscale docks.” It’s much the same at Advance. “Customers usually want a demo,” Beischer says. “The number-one
issue is sound quality. It’s less about price. Does it sound
good with my iPhone or iPod?”
McKeever says most customers want to hear their own
Pat McKeever, President, Lenbrook Industries Ltd.: “People want to self-demo. They want to play their favourite
songs from their library. It gives them a sense of control.
They’re in the driver’s seat.”
Derek Collier, Vice President Merchandising, Audio Video
Unlimited: “In an independent store, most customers want
to hear the product. With our price points, the majority of
customers want a demo, because we carry upscale docks.”
With its faux-wood front panel, setting stand and
rotary volume knob, Panasonic’s SC-GT07 compact sound system simulates the look of a classic electric guitar. The SC-GT07 features AirPlay
technology, so it can play music streamed from
an Apple device or iTunes library over a home
network. Between the stereo bamboo speakers
is an iPod/iPhone dock that pulls digital sound
off the player. The player can be rotated to horizontal configuration for video playback. $200.
content, rather than the store’s. “People want to selfdemo,” he elaborates. “They want to play their favourite
songs from their library. It gives them a sense of control.
They’re in the driver’s seat.”
With a docking product, it’s no problem for customers to
audition from their own devices. But some intervention will
be needed for customers who want to see how their own
devices work with wireless streaming. For Bluetooth, it’s a
matter of pairing the device with the speaker. For AirPlay,
the device has to be connected to the store network. That
will be fairly straightforward in some cases, but definitely
a challenge in stores whose networks use MAC address
filtering, as Advance’s does.
Except for the networking component, for many retailers
this will represent a return to their roots. There are still
many AV dealers who started out in audio, then added
video, home theatre, satellite, wireless and other categories along the way.
Collier acknowledges that some independent retailers
are late to this particular game, but now that the flat-panel
market is plateauing, they’ve become eager players. “As
times get tougher, you have to diversify,” he observes.
mn
The dock on JBL’s OnBeat Xtreme can accept an iPad;
and it rotates for watching movies in landscape mode.
The two-way sound system features JBL Atlas longthrow woofers and Ridge titanium-laminated tweeters.
18 MARKETNEWS
MNMAY12.indd 18
6/1/12 11:40 AM
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pristine vocals and rich bass
The TDK Life on Record logo is used under a trademark license from TDK Corporation
MNMAY12.indd 19
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Trends in Outdoor Entertainment
CUSTOM CORNER
By David Birch-Jones
According to reports from AV industry executives and
homebuilder surveys, outdoor living is significantly growing in popularity. For many years, outdoor audio consisted
of a pair of indoor/outdoor speakers mounted under the
eaves. These days, more and more homeowners are gravitating to enhanced outdoor AV systems, giving custom
integrators more sales and profit opportunities.
Two recent surveys conducted by Professional Builder,
a U.S. trade magazine for residential homebuilders and
remodelers, give an indication of the growing trend. One
survey was conducted in the fall of last year, and another
survey just completed this spring.
The magazine asked readers to name the top three
outdoor living features that they included as standard, and
the top three outdoor living features that were on homebuyers’ wish lists.
David Barista, Editor-in-Chief of Professional Builder,
notes that while they weren’t able to break down the
outdoor AV category into segments (audio, TV, etc.), “It’s
certainly growing, along with the outdoor living trend.” In
the six months between the two surveys, the proportion
of respondents naming outdoor AV as a desirable feature
grew by 25%.
Barista also points out that compared to purpose-specific
rooms such as a dedicated home theatre, which can be
quite expensive on a per-square-foot basis, outdoor living
areas usually cost less to build out, and can be quite profitable for the homebuilder.
Available in sizes from 22” to 65”, SunBrite TVs are IP54
rated, which means that they’re dust-resistant and able
to withstand direct hits from a jet of water.
Outdoor Video Heats Up
Over the last decade, purpose-built weatherized flat-panel
TVs have become more prevalent in the residential outdoor space.
The market leader in this category is SunBriteTV, which
presently offers outdoor TVs in screen sizes ranging from
22” to 65”. The company doesn’t simply take an off-theshelf TV and put it into an enclosure. They develop the
TV from the ground up, with their own electronics and
environmental technologies, including thermostatically
controlled ventilation.
To prevent dust and moisture ingress, the TV enclosures
are designed to be as dirt- and water-resistant as possible.
The fan-cooled sets are available in two exterior designs.
The Pro Series feature aluminum powder-coated exteriors
with detachable speaker modules, while the Signature
Series employ an outdoor-rated high-impact resin exterior
with built-in speakers. The new digital signage Marquee
Series is built into an aluminum powder-coated exterior,
with the speaker module as an optional accessory. All
models include air intake vents on the rear panel. Those
vents incorporate a fibre filtration system that allows air
in, but blocks dust, insects, moisture and dirt. The AC cord
inlet is watertight, and the input jack panel is covered by
a watertight cable cover door with cable pass-through
Overview
• Outdoor AV is becoming a highly desirable feature for people buying custom homes or remodeling
existing residences.
• There are different ways to get video outdoors: use a weatherized front panel, put a conventional panel
in a weatherproof enclosure, or install a projector in a protected outbuilding.
• High-end outdoor speakers are adopting the 70V technology used in professional sound-reinforcement
applications.
• A powerful router isn’t enough to get Wi-Fi coverage outdoors. You also need a method of getting data
from mobile devices back to the router.
management, designed to prevent moisture ingress.
The TVs are designed to comply with industry standards
for ingress protection, and are IP54 rated, which means
that they’re dust-resistant and able to withstand direct hits
from running/spraying water.
I got the chance to test this for myself when I reviewed a
SunBriteTV model last year. SunBriteTV founder Larry Kaiser sent a 46” sample to my home in Palm Springs, CA. On
a sunny late spring day (which means fairly hot – I think it
was around 35°C or so), I put the set out on my patio table
under direct sunlight.
With a video source connected and the TV on, I left it
there for a few hours to bake under the sun. At Kaiser’s
suggestion, I grabbed the garden hose and started blasting the set from all sides, something you’d never do with
a conventional indoor TV. After a five-minute soaking, it
became apparent that the SunBriteTV is indeed thoroughly
water-resistant.
From an application standpoint, Lynn Stearn, Vice
President of Sales for SunBriteTV, notes, “While we have
our TVs in commercial spaces such as arenas, stadiums,
resorts and theme parks, that only represents about 20%
of our business. Our core business is residential.”
Naturally, the sets are more expensive than conventional
flat-panel TVs. For example, the 46” SunBriteTV I reviewed
last year carried a suggested retail price about five times
that of a comparably sized in-home LCD TV, although the
comparable model in this year’s line is priced hundreds of
dollars less than the older model.
Business is booming apparently. “From 2010 to 2011
our sales were up only slightly due to last year’s horrible
winter weather,” Stearn notes. “But for 2012 so far, we’re
on track to achieve 50% growth over last year.
“Part of the growth is due to our new product lines,” she
continues. “We now have three tiers of models. We’ve been
able to drop our pricing significantly on all our lines, our
new Signature series models are our value lineup compared
to the standard line of Pro Series models. We also now offer
a step-up line, our Marquee series, which is designed for
digital-signage and direct-sun installations.”
Other approaches: Another outdoor TV option is
to take an existing in-home set and put it in a weatherized enclosure. TV mount maker Peerless-AV offers three
models of weatherized TV enclosures, sized to fit flat-panel
TVs from 40”-42”, 46”-47” and 52”-55”. Integrators have
a choice between two enclosure variants, one of which is
equipped with a user-adjustable thermostatically controlled ventilation system.
The enclosures are quite large relative to the TV’s size, as
there’s additional space in there for the ventilation system,
power supply strip, and other bits and pieces. This translates into a fair amount of front fascia area surrounding
the screen. For example, I calculated that for the middle
enclosure model, which can house a 46” or 47” TV, the
surface area of the fascia is a little over twice that of the
TV screen, which might make the screen look small to
some. The enclosures are also fairly heavy, with the midsized model weighing 160 lb. sans TV, about six times that
of a typical 47” LCD TV set.
Agostinho Costa, Custom Installation Manager at Toronto’s Bay Bloor Radio, notes that they sell both SunBriteTV
and Peerless-AV weatherized outdoor TV options. “Clients
who balk at the higher prices of outdoor TVs sometimes
prefer to just have a regular flat-panel TV installed under
some sort of awning,” he adds, “figuring that with the low
prices of commodity TVs these days, if the set ever fails it’s
cheaper to simply replace it with another one.”
The third option for outdoor TV, albeit the priciest one, is
using a front projector. Placing the projector inside an outbuilding, such as a pool house, and having it project the
image onto an outdoor wall or screen is one solution. Or,
have the projector mounted inside the home and project
the image outdoors via a window.
Saxe Brickenden, President of Evolution Home Corp.,
20 MARKETNEWS
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MNMAY12.indd 21
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CUSTOM CORNER
Sonance’s new Landscape speaker lineup uses 70V
audio distribution, which works very well for long cable
runs. The line includes subwoofers whose enclosures are
designed to be buried (mushroom-like vents transmit the
sound above-ground) and post-mountable satellites.
distributor of Sim2 front projectors, describes an example:
“Bang & Olufsen are planning to open a second showroom
not far from their existing showroom in Toronto in the
next couple of months, and we’ve spec’d in three Sim2
front projectors. Two will be 3D models for indoor viewing,
while a third, our Crystal 45, will be mounted indoors facing a window and projecting outside to a Screen Innovations Black Diamond screen that will be mounted under
some sort of shelter.
“Even though it’s our-entry level model, the Crystal puts
out 3,000 ANSI lumens; so there’s a fair amount of horsepower there to deal with ambient light. In combination
with the Black Diamond screen, viewers will be able to see
a decently bright outdoor picture.”
High-End Outdoor Audio
Introduced at the 2010 CEDIA show, with shipments beginning early last year, Sonance’s Landscape outdoor audio speaker system is gaining a lot of traction these days.
The Landscape system consists of two compact conicalshaped speaker models, and two in-ground subwoofers, in
10” and 12” versions.
Two factors set the Landscape system apart from others
in its class. Firstly, it is most definitely premium priced,
with SRPs for three of the four available models in the
four-figure range. Secondly, the system embraces the 70volt audio distribution method, which is typically synonymous with distributed audio in commercial spaces such as
airports and shopping malls, and is not usually associated
with true high-fidelity sound.
The above-ground speakers resemble landscape lighting
fixtures, and the subwoofers’ domed output ports feature
a dark brass-like finish that matches the speakers, which
helps the devices visually “blend in” with nearby foliage
and ground cover. All are internally equipped with the
requisite 70V impedance-matching transformers.
In a 70V system, the audio amplifier typically features
high-impedance outputs with taps coming off the amp’s
output transformers. Compared to a standard 8 ohmcompatible output, a 70V system’s output signal consists
of higher voltage and lower current, which is better suited
for long cable runs. At the speaker end, an impedancematching transformer converts the signal back to the
lower-voltage, higher-current 8 ohm-compatible format.
(Side note: The 70V appellation is derived from a 100V
system designation, measured peak-to-peak. The RMS
value of such a system is actually 70.7 Volts, but over the
years, it became truncated to just 70V.)
“Our dealers and integrators have discovered that the
sound quality of our Landscape system is far beyond what
they had previously thought possible with a 70-volt system,” notes Simon Wehr, Director of Marketing at Sonance.
“We were able to demonstrate that by going to shows such
as CEDIA, as well as travelling around with a mobile demo
kit with our sales reps and just letting them listen to it.”
He goes on to point out that the impedance-matching
transformers in the Landscape speakers and subwoofers
are purpose-built, custom-spec toroidal types, of the same
calibre as those found in premium audiophile amplifiers.
When asked about the market response to the Landscape system, Wehr says, “We could not be happier. It’s really excited our dealers. Before, an outdoor audio system
install might have resulted in a total sales amount of a
couple of thousand dollars. Now there’s a real opportunity
for up-sell.”
Moreover, 70V lines can extend out to a quarter mile,
which should be more than enough for most residences,
including luxury properties. The company recommends
running suitable gauge direct-burial four-conductor
speaker cable, so that installers can simply tap into left or
right channel, or both as necessary. With 70V lines, line
loss is substantially reduced compared with conventional
low-impedance speaker-cable runs.
“We’ve been having a lot of success with the Sonance
Landscape system,” says Costa of Bay Bloor Radio. “Compared to a conventional outdoor audio system using rock
speakers and such, the coverage that the Sonance system
provides is much more even and sounds much more filling.
“We’re planning to have an in-store demo area for the
Landscape system soon, but what we’ve been doing is
to arrange a demonstration of the system at the client’s
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residence, right in their outdoor space. Working with our
sales rep from Trends Electronics, we set up the system
outdoors at the client’s home and demo it there right in
their backyard, which lets them fully appreciate the sound
quality the system offers. That speaks volumes when
you’re in your own space.
“What happens from there is we take a bunch of measurements and answer a detailed online questionnaire at
the Sonance dealer Website regarding the client’s property.
That data goes to Sonance’s design staff, who then design
and specify the system. The questionnaire takes into
account factors such as nearby road noise, among other
things. Within 48 hours, we get back a detailed design
plan that we then use to put a proposal together.”
Mike Chorney, Director of Sales and Marketing at Trends
Electronics International Inc., Sonance’s Canadian distributor, points out that a complete Landscape system includes
the requisite 70V-compatible power amplifier. Trends stocks
three Crown DCI series models, each of which is preconfigured for 70V system usage. For each client’s design
plan, the appropriate amplifier is custom-configured with
a specific DSP EQ (out of a dozen different custom EQs
that are available for the Landscape system). “This way, the
integrator can obtain the complete Landscape system from
us as a combined ready-to-install package,” Chorney notes,
which makes it easier and faster for all concerned.
As the Landscape system is a high-end package, pricing
is accordingly lofty. The LS47SAT speaker carries an SRP of
$600 each, with the LS67SAT priced at $1,000 per. The 10”
LS10SUB subwoofer has an SRP of $3,600, while the 12”
LS12SUB is tagged at $4,600. Those retails definitely put
the Landscape system in the upper stratosphere, price-wise.
Rock Solid: Over at Niles Audio, President Mike Detmer
identifies three emerging trends in the outdoor audio segment.
“One trend in outdoor audio is simply more of it, as
This poolside installation by Wilshire Entertainment
in Thousand Oaks, CA, employs three SunBrite TV 32”
screens with ceiling mounts. Photo by Chris Woolman
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22 MARKETNEWS
MNMAY12.indd 22
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CUSTOM CORNER
entertaining moves more and more outdoors,” he says.
“Since Niles got into outdoor audio back in the ‘90s with
our very popular OS-10 indoor/outdoor speakers, we see
that now people are zoning their outdoor audio systems.”
Detmer also sees increased activity in the upper-end
outdoor speaker segment, and points to the company’s
premium line of rock speakers as an example. “With our
rock speakers, we don’t just paint them in various colours
such as coral or sandstone or granite,” he states. “We actually make them geo-realistic looking by designing them
off real rock samples.”
The company obtains rock samples and sends them
to the design lab where the molds are made for custom
matching; this includes making geo-realistic metal painted
grilles. Detmer himself helped the company develop the
granite geo-realistic version. On a sales trip to Boston, he
and his local sales rep were driving along the road when
he spotted a perfect granite boulder in an open field. They
stopped the car and Detmer absconded with the heavy
boulder, and then had it shipped back to the company’s
headquarters.
“Another trend is adding bass outdoors,” Detmer continues. “This adds a sense of depth and warmth to the music.
There’s probably nothing you can do to enhance an outdoor system’s sound than adding some low frequencies.”
Niles has already introduced an in-ground subwoofer.
Comments Detmer: “In the old days it was put a pair of
speakers outside, spread them far apart and then blare
them. This gets pretty annoying particularly if you’re sitting
near them. But if you add bass, and have good-sounding
speakers that have good dispersion and place them 15
feet or so apart, you get a really nice smooth sound that’s
enjoyable to listen to.”
The Niles in-ground subwoofer (a 10” model) differs from
the Sonance Landscape versions in that the Niles offering
features integrated mounting brackets that permit aboveground installation, for placement under the eaves for
example, giving integrators more flexibility.
Detmer identifies a third trend in outdoor audio: the
growth of outdoor sound in light commercial installations,
such as an outdoor audio system for restaurants with
outdoor patio spaces. “We see more and more bars and
restaurants using our indoor/outdoor products. We see
that as a differentiator that separates a bar or restaurant or
hotel from its competitors, which is having good smooth
sound outside.”
At Architronics in Markham, ON, CEO Matthew Grossman agrees about increased opportunities in outdoor AV.
“Not so long ago, client awareness of outdoor AV was
limited to higher-end, luxury home owners,” he points out.
“These days, we’re seeing increased activity in the upper
midrange segment, and we’re putting more TVs outdoors
as well as installing more multi-zone outdoor audio.”
Outdoor HDMI
As far as distributing HD video is concerned, numerous options abound, including wired HDMI, HDMI over Cat cable,
and lately the emergence of wireless HDMI distribution.
We covered wireless HDMI in a Custom Corner feature a
few months ago, and reported on the emergence of wireless HDMI distribution devices based on the relatively new
WHDI initiative. That specification provides for 3D-compatible full 1080p HD transmission over the 5GHz spectrum. One such product, IOGEAR’s GW3DHDKIT ($400),
provides for one wireless and one wired HDMI connection
each, with the company claiming a wireless transmission
distance of up to 100 feet.
Recently, I was able to test out the product myself, at
a military travelers’ lounge at my local airport. They’d
moved into new expanded facilities, and had four wallmounted HDTVs. Three of the TVs were spec’d for TV
viewing, with the fourth spec’d for digital signage via a
continuous JPEG slide show.
After the move was complete, management decided it
Niles’ Garden Series speakers includes a 4” two-way satellite that can be stake- or wall-mounted, and an in-ground
10” subwoofer with paintable port tube.
wanted the fourth set to be usable for TV viewing as well.
However, pre-wiring had already been completed, and
there was no money in the budget for a long HDMI cable
run. I installed the IOGEAR transmitter in one of the rooms
that had a TV and HD cable box, and installed the receiver
at the fourth TV’s location (the receiver is quite compact
and easily tucked away behind the TV).
The transmitter box has a wired HDMI pass-through,
which permits simultaneous viewing on both TVs. While
the product comes with a compact remote, it isn’t really
necessary, as simply powering on the second TV activates
the wireless HDMI transmitter. The IOGEAR transmitter/
receiver pair worked flawlessly, and should be considered
as an alternative to a hard-wired long cable run that has to
go through a home’s exterior wall.
Outdoor Wi-Fi
With the explosive popularity of smartphones and tablets
of both the Android and iOS varieties, more and more
consumers are wanting to have their devices reliably
connected to home’s Wi-Fi network. In many cases these
devices are used to control the home-automation systems
as well. With the growing interest in outdoor living, integrators need to ensure that there’s reliable Wi-Fi coverage
everywhere inside and outside the client’s home.
While high-powered Wi-Fi routers are easily available
and quite affordable, getting reliable coverage outdoors
may be a problem, as a typical smartphone, laptop and
tablet only has a transmission range of around 100 feet.
It matters not a whit what a Wi-Fi router’s power output
and area coverage are if a Wi-Fi-enabled device can’t get a
good enough signal back to the router.
More Wi-Fi equipment providers are addressing this by
offering both an indoor
high-power, wide-areacapable Wi-Fi router,
along with optional
external Wi-Fi antenna
equipment and com-
Amped Wireless’ R2000G high-power Wi-Fi router has a
claimed 10,000-square-foot coverage area. It can work
with high-gain outdoor antennas to increase range.
patible cabling.
Amped Wireless introduced its high-power R1000G
model ($130 SRP) at CES 2012 in January. An upgraded
version, the R2000G, carries a $180 retail tag and has a
claimed 10,000-square-foot coverage area. Both feature
dual 5dBi antennas, which are detachable. That allows for
antenna upgrades, and the company offers two outdoor
high-gain antennas, including an 8dBi omnidirectional
rod-style model ($90) and a higher gain (14dBi) directional
model at $100. There’s also a 12dBi indoor antenna that
can connect to the second antenna port on the router for
increased coverage in the home, priced at $40. Additional
accessories that Amped Wireless also offers is compatible
Wi-Fi antenna cabling in 25-foot lengths ($40).
While a full-on multi-point/multi-access Wi-Fi setup is the
way to go for a luxury property, for more modestly priced
jobs in a typical single family residence, opting for a solution such as an Amped Wireless setup can provide excellent
wide-area Wi-Fi coverage for a very reasonable cost.
Outdoor AV
is on the Rise
Without exception, equipment vendors and integrators
contacted for this story all reported that outdoor AV is a
rapidly expanding segment. More affordable equipment
choices expand the potential customer base to include
homeowners who may have been previously excluded,
and surveys confirm that the outdoor living lifestyle is
broadening in appeal. All of these factors combine to provide increased sales opportunities for custom integrators
looking to expand their business. mn
Peerless-AV offers weatherized TV enclosures in three
different sizes. They’re available with fan cooling and
heating to protect the panel against temperature extremes.
MARKETNEWS 23
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CE Moves into The Cloud
CONNECTIVITY AND CONVERGENCE
By Frank Lenk
‘The Cloud’ has many definitions, most of them useless.
For example, the infallible Wikipedia tells us that “Cloud
computing refers to the delivery of computing and storage
capacity as a service to a heterogeneous community of
end-recipients.” If you take the trouble to decipher this
kind of definition, it usually comes out as a synonym for
‘Internet.’
And yet, the concept does have a certain resonance.
We may not be sure what the Cloud really is, but as U.S.
Supreme Court Justice Potter Stewart famously said about
pornography, “I know it when I see it.”
There’s no denying that various types of Cloud-y services
continue to proliferate. Taken together, they seem to have
one thing in common: compared to the rest of the Internet,
they work in reverse. For the most part, users consume
data from the Internet. With Cloud services, they entrust
data to Internet services.
Not surprisingly, software vendors are making Cloud
features intrinsic to their signature products. But the Cloud
is also spreading to hardware products, becoming a major
feature even outside the computer world. Cloud services
are now included with cameras, music players, phones,
tablets, and even TVs and audio receivers.
much of its new ePrint Home & Biz service. While printing
technology hasn’t changed much in the past few years,
connecting printers to the Internet still conjures up a certain degree of novelty.
Using ePrint, HP printers can accept jobs by e-mail
from anywhere in the world. ePrint also supports apps for
Android and iOS, allowing users to easily get output from
mobile devices, even while they’re on the road.
This is classic Cloud stuff: users upload data to HP, which
provides a processing service on its end. Most new printers
can also run apps, to access services like Flickr or Snapfish,
for example. But these are essentially download features,
similar to what you’d see in a desktop browser. With
ePrint, HP accepts and processes consumer uploads.
Acer: A more recent introduction is Acer’s AcerCloud,
being offered on the company’s new laptops. Like other
‘file sync’ services, such as DropBox or SkyDrive, Acer-
and clear.fi Photo allow similar sharing of other media
located on the laptop.
AcerCloud is free with new Acer consumer PCs, and accessible from any Android device. According to Ackerson,
an iOS version is in the works.
LG: At the start of May, LG Electronics opened its own LG
Cloud service for beta testing. At least, in Korea; the www.
lgecloud.com site remained inaccessible from North America.
LG Cloud is claimed to be the first service “that allows users to manage and consume all types of content on ‘three
screens,’ which includes Android smartphones, PCs and
smart TVs,” according to Havis Kwon, President and CEO
of LG Home Entertainment Company.
LG Cloud can make photos shot on mobile devices instantly available to PCs or TVs. It also allows videos to be
streamed from the PC to a mobile device. Even 3D photos
taken with an LG 3D smartphone can be quickly uploaded
Hardware
When it comes to combining Cloud services with hardware
products, the standard-bearer has been Apple. It may not
have been a Cloud service in the fullest sense, but Apple’s
iTunes Music Store was obviously a huge factor in the success of the iPod.
Lately, Apple has moved into bona fide Cloud territory,
allowing users to upload as well as download. iTunes
Match provides online access to any music the user owns,
without actual uploading, by finding the corresponding
tracks in the 20-million-song Apple library. (Unlike a lot of
Cloud services, it’s not free, running $27.99 a year.)
Match is in turn part of Apple’s iCloud, a suite of services
that’s now included with every new Apple device. Photo
Stream syncs photos across multiple devices, including
Apple TV, and stores up to 1,000 in the Cloud. Documents
in the Cloud syncs iWork documents (from Pages, Keynote
and Numbers) across multiple devices. iCloud also keeps
a running backup of device settings, apps and other personal data.
These services, implemented with Apple’s usual slickness, have tended to set the pace for Cloud features on
other devices. Hardware manufacturers are now seeing
similar Cloud features as must-have checkmark items, and
dreaming up novel variations as a way to differentiate
their own products.
Hewlett-Packard: For example, HP has been making
Photo Stream, part of Apple’s iCloud service, lets users store up to 1,000 photos in the Cloud, and sync them across
multiple devices, including PCs, Macs, iPads, iPhones and Apple TV.
Cloud allows users to upload files in order to make them
accessible across various devices. What’s unique is that
AcerCloud will be able to read files even when the userdesignated ‘Cloud PC’ is in sleep mode (which could be 30
days or more, unattended).
According to Eric Ackerson, Senior Product Marketing
and Brand Manager, Acer America Corporation, AcerCloud
indexes the user’s files, rather than immediately uploading them. When a file is requested from another device,
the service can wake up the Cloud PC laptop and fetch the
actual data. By default, the entire contents of the laptop’s
hard drive will be accessible. However, Ackerson notes that
users will be able to manually exclude files they want to
keep private.
Acer extends the Cloud functionality with locker-type
features. Clear.fi Music lets users stream their music collection to a phone or tablet from the Cloud PC. clear.fi Video
Overview
• Cloud services are becoming an integral part of all kinds of CE products: not just software, but hardware
as well.
• Makers of TVs, audio components, PCs, smartphones and other products are deploying Cloud services
that let users access their photos, music and videos on any device, from any location with an Internet
connection.
• There are some important issues around Cloud services, including consumer awareness, bandwidth
requirements, security and copyright.
to an LG Cinema 3D Smart TV.
LG claims that there will be very little waiting or lag,
since the content is streamed, rather than being downloaded first. Any required format conversion is automatic,
handled by the server as the data is streamed.
Both free and paid services are planned. However, considering the early testing stage of the project, further details of
Canadian rollout were not yet available. LG stated only that
pricing and features would vary from market to market, and
would be announced as they became available.
Sony: Sony of Canada Ltd. is rolling out a variety of services, some of them simply relating to content distribution,
others more obviously fitting into the Cloud category.
PlayMemories Online is a Cloud-based photo and video
management service. It allows users to upload content
from cameras and access it via Web browser, Android and
iOS devices, as well as BRAVIA TVs. Video will be automatically converted ‘in the Cloud,’ to play on the target
device. PlayMemories was launched in April. It will come
bundled with certain Sony cameras and VAIO computers,
and will also be available for a subscription fee.
Music Unlimited is a music streaming service ($3.99 a
month), currently available on Android devices, and on
Sony AV gear such as Blu-ray players. It will offer content
from Sony itself, as well as Warner, BMI, Universal and
numerous independent labels.
Karel Warminiec, Central Region Training Supervisor for
24 MARKETNEWS
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CONNECTIVITY AND CONVERGENCE
Sony’s Music Unlimited service is available from a Web browser or Android phone, and a variety of Sony products,
including the PlayStation Vita.
Sony of Canada Ltd., notes that the service currently has
about 15 million songs on offer in the U.S., while Canada
is still at about 10 million. However, he expects Canada to
gradually catch up, with hundreds of thousands of tracks
being added each week.
Included in the Premium subscription level ($9.99 a
month) is the ability to play music offline. The user simply
ticks a checkbox: “allow playlist access offline.” Tracks
are automatically downloaded to the device, and can be
played without an Internet connection, via Sony’s Music
Unlimited app. Offline capability is so far available on
Android 2.x and above, as well as on the Walkman Z and
PlayStation Vita.
Like Apple’s iTunes Match, Music Unlimited also includes a
Cloud-based music sync feature. The software searches songs
in iTunes or Windows Media Player libraries (currently, only
on Windows systems). Any songs that it can match in Sony’s
online archive can be streamed to all the user’s devices.
So far, Music Unlimited is available only as an online
purchase, from Sony’s site. However, customers can buy
PlayStation points cards and use them for any expenditures
on the Sony Entertainment Network, including their Music
Unlimited subscription, once it’s created via the Website.
Warminiec underlines the importance of the Sony Entertainment Network. “All our services tie into that,” he says.
“There’s just one platform, one interface, one password.
We’re making it the least convoluted we can, with similar
interfaces on all devices.”
Cisco: Adding Cloud features to networking devices is
perhaps the most natural move of all. This summer, Cisco
is launching the Cisco Connect Cloud. It’s a free service
that should be compatible with all current Linksys routers.
Connect Cloud isn’t just some new way to configure
a home network. Rather, it’s a new way to use a home
network: to remotely manage all the various connected
devices in the home. “The intent is to prepare people for
smart homes,” says Mike McDermott, Director of Cloud
Like all recent HP printers, the Photosmart 7510 all-inone features ePrint, so it can accept print jobs via e-mail
from any device. With ePrint, HP accepts and processes
consumer uploads, and sends them to the printer.
and Service Provider Channels, Cisco Canada.
Users create an account at CiscoConnectCloud.com,
which allows them to access their home network settings
from any laptop, smartphone or tablet. Android and iOS
apps will be downloadable from the site. Desktop users
can get access from their browser.
McDermott offers an example. Two kids are at home.
One is hogging the household bandwidth by playing an
online game. The other is trying to do his homework. A
parent could dial in and remotely allocate most of the
bandwidth to the more-studious sibling. This is not a hypothetical scenario, McDermott notes. Cisco plans to enable
this sort of control by this summer.
But the longer-term plan is to work with vendors of
networked devices to centralize control. “It’s increasingly important,” says McDermott. “We’re seeing a lot of devices become intelligent.” A furnace could be set, or checked, while
the family is away. Or the oven could be set by a commuter
on the way home. “Controlling all those kinds of electronics
that aren’t connected today will be an option soon.”
While controlling the network itself will make Cisco Connect Cloud worth having now, McDermott notes that it will
continue to gain in capability over time. “In the not-so-distant future, we can see houses having dozens of different
connected devices,” he predicts.
Software
As you’d expect, software vendors have been adding
Cloud features for a while. For example, Google’s solution
to printing from Android is Cloud-based. Consumers are
also becoming increasingly reliant on services like Gmail
and Google Docs.
Microsoft: As it nears the release of Windows 8, Microsoft is also putting a lot of its hopes into the Cloud. “There
are a number of places that customers will become familiar with the Cloud,” says John Weigelt, National Technology Officer, Microsoft Canada Co. For example, someone
using simple Hotmail e-mail will also see services like
Messenger, Live Writer and SkyDrive on a menu bar in
their browser.
Office 365 gives users a full suite of ‘lite’ Office apps right
in their browser. Weigelt sees the service as a great way
for companies to “focus on their business and not on their
IT infrastructure.” Not only does it offer applications in the
Cloud, with no installation or maintenance, it allows them
to include collaboration and social interaction features.
With the Windows Phone platform, Microsoft has included the ability to both store content locally, or share it
via SkyDrive. “Following from ubiquitous connectivity and
the popularity of laptops is the fact that people’s content
now spans the PC and Cloud services,” says a blog post on
the Microsoft Developer Network site. “A service like SkyDrive providing up to 100GB of Cloud storage dramatically
changes how you think about your PC and resources you
have access to.”
“A lot of people and organizations are trying to get a
sense of what will work for them,” says Weigelt. “What files
can I put in the Cloud?” Many are now choosing a hybrid
solution, storing some things locally, others in the Cloud.
Weigelt envisions all Microsoft’s packaged software eventually also being available in the form of cloud services.
“The Cloud allows us to be more innovative,” he states. “We
can deliver new features on a more frequent basis.”
Adobe: Adobe is one of the few other large software
companies that still focus on individual end-users. Its
Creative Suite brings in over $2 billion a year from graphics
and publishing professionals, via both bricks-and-mortar
and online sales. With the release of Creative Suite 6,
Adobe is going beyond the usual feature upgrades to offer
an interesting mix of Cloud services.
Users will now have the choice of purchasing Creative Suite
outright, for about $1,400, or subscribing to Creative Cloud,
for $50 per month. (Owners of previous versions of Creative
Suite get a discount, $29.99 monthly for the first year.)
But Scott Morris, Senior Director, Product Marketing,
Adobe Systems Inc., is quick to emphasize that Creative
Cloud is not just a new way to buy the software. It’s a
whole new approach. “It has meant transforming ourselves
as a company,” says Morris. “It means creating a totally different value proposition.”
For starters, Cloud subscribers will get new software features as soon as they become available, instead of waiting
for them to be rolled into the next full release of Creative
Suite. For example, Morris expects that Photoshop, Illustrator and InDesign will get a substantial update this fall.
Rapidly evolving apps Edge and Muse could be updated
every three months or so.
Creative Cloud will also include a digital file-locker that’s
specifically designed to work with Creative Suite. Apart from
simply moving and sharing files, it will be able to show
thumbnails of stored files, and will allow viewing in a Web
browser, with capabilities such as turning image layers on
and off. This should make it ideal for communicating with
clients who may not have Creative Suite themselves.
Cisco’s Linksys EAS2700, EA3500 and EA4500 routers will work Cisco Connect Cloud when it becomes available. This
will allow users to remotely configure their home networks, and ultimately provide a platform for home automation.
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CONNECTIVITY AND CONVERGENCE
Creative Cloud will also include a service to automate the
conversion of complex Creative Suite documents into iOS
or Android apps, using some “fairly heavy-duty” Cloudbased processing.
Creative Cloud will be available through Adobe’s existing
value-added resellers (who, according to Morris, already
deal mainly with digital copies of Creative Suite, rather
than physical discs). It will also be available at retail and at
e-tailers like Amazon, in the form of a key card.
For now, Creative Cloud will not extend to Adobe’s
consumer-oriented products, such as Photoshop Elements.
But that remains a possibility. “We’re absolutely looking at
a consumer offering,” says Morris.
Larger Issues
While Cloud features can add value to traditional products,
and enable new capabilities, the whole Cloud movement
does come with a few drawbacks.
One obvious questions is whether the new Cloud services are being driven by genuine consumer demand, or
simply by the availability of cheap storage and bandwidth.
It’s become easy for companies to sprinkle Cloud features
on their latest devices. But it’s not necessarily obvious
what the uptake will be among users.
Clearly, some consumers are eager to put their music,
photos and personal documents up in the Cloud. Or to
sign up for services like Cloud printing. But how large is
that group going to be, when printing via Wi-Fi or AirPrint
is easier than ever, and 3TB hard drives are selling for well
under $200?
Confusion: Another question is whether the sheer number of services won’t work against their adoption in general. Cloud services are all about connectivity, exchange of
data. And yet we’re seeing many vendors offering similar
services, with no unifying standards whatsoever.
“Tomorrow’s consumers don’t want to go to one Cloud
for music, another for video, another for photos, and yet
another for their office files,” said LG’s Havis Kwon. But if
a user has an Apple iPhone, an LG laptop and a Sony TV,
which app do they reach for? Expert users are happy mixing and matching, others not so much.
Microsoft, in particular, seems to have built its own
diversity problem. Users on its forums have noted that the
company now has many types of accounts, and no easy
way to integrate and simplify them. Over time, people
MNMAY12.indd 27
Microsoft Office 365 lets users access a full suite of light Office apps from a Web browser. It requires no installation or
maintenance, and includes a broad range of collaboration features.
may have signed up for Xbox Live, or for Hotmail, or Office
365, or for Zune. Microsoft needs to let users consolidate
these services somehow.
Bandwidth: Even when done right, Cloud services may
be constrained by bandwidth. “With limited bandwidth,
retrieving large files can be a challenge,” Weigelt acknowledges. One simple way that Microsoft has tackled this issue is to allow Media Valet on Windows Phone 7 to show
previews of media files. Music lockers avoid uploading
altogether, by matching user files with what’s already in
the Cloud.
Canada presents a unique challenge. Weigelt notes that
99% of our population has wireless access, but only about
20% of our landmass. So a Cloud provider can’t count
on the connection always being available. “We need to
focus on harnessing that technology that you have in your
hand,” says Weigelt.
Security: Cloud services have consumers submitting
their most precious personal data to unknowable online
servers. When people put money in a bank, they know
there’s a whole system of checks and balances to protect
it. But they’ve seen that even that can fail. Cloud services
undergo no certification beyond what vendors promise.
“Like everything else, Cloud computing is all about trust,”
said Bruce Schneier, leading security expert and Chief
Security Technology Officer with the BT Group plc, in an
interview with The Browser (thebrowser.com). “For most of
us, it reduces our risk. If my computer crashes I’ll still have
all my e-mail, photos and contacts.
“On the other hand, I have to trust my Cloud providers,” he points out. “I have to trust that my data won’t get
shipped off to a server in a foreign country with lax privacy
laws, and that the companies who have my data will not
hand it over to the police without a court order.”
Few Cloud services promise the same level of confidentiality that users would get by storing data on their
own local drive. True, services like iCloud or DropBox are
opaque to outside eyes. But user data is almost certain to
be accessible to the operators of the service itself, if only
for the purposes of enforcing the terms of use.
That, in turn, means that data could and likely would be
given up to legal authorities upon proper request. And as
we’ve seen with recent legislation like SOPA and PIPA in
the U.S. and Canada’s Bill C30, what constitutes a ‘proper’
request could change at any time.
Vendors are aware of this potential concern, and are
doing what they can to address it. With AcerCloud, Acer
promises to use “robust security” to protect data. “When
your content is sent over the Internet, AcerCloud protects it
with strong encryption,” Ackerson states.
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CONNECTIVITY AND CONVERGENCE
“We want to simplify the terms of use,” says Weigelt.
He points to the Trust Centre for Office 365, an extensive
group of Web pages, explaining Microsoft’s approach to
security in exhaustive detail. For example, it spells out
what personnel are allowed to access customer data, and
for what purposes.
The Trust Centre can also tell you which of Microsoft’s
global data centres will store your Cloud-based documents. Not surprisingly, however, Canadian data ends up
on one of three U.S. servers, where it’s subject to U.S. law,
rather than Canadian.
Copyright issues: Unfortunately, laws protecting data
privacy seem to be restricted by national borders, while
laws allowing access seem to span the globe. MegaUpload was probably the largest cyberlocker service on the
Internet, allowing a claimed 150 million users to store and
transfer their files. Despite being based in New Zealand,
it was abruptly taken down by U.S. authorities, based on
suspicion that some of those users were infringing on
copyrights.
Legitimate users instantly lost their data. About 25
petabytes (25,000 terabytes) of that data, legitimate or
otherwise, remains in cold storage, inaccessible to its owners and at risk of deletion.
Encouraged by this success, Hollywood has been talking
about giving other cyberlockers the same treatment. The
bigger ones have responded by taking what additional
measures they can to discourage illegal content, in hopes
of placating the copyright commandos. “People who are
using the services for less than legal purposes would be
prevented from doing so,” says Weigelt. “There won’t be
that wholesale shutdown of a service.”
A less spectacular legal fate overtook the MP3tunes
music-locker service. This spring, Onkyo announced that
MP3tunes access would be supported by its 2012 receivers. But MP3tunes has since filed for bankruptcy, after
fighting for several years against music-industry lawsuits.
While the music companies, including EMI and 14
others, may have the law on their side, it’s a disturbing
precedent for several reasons.
First, the case is unlikely to ever be resolved on its merits, as MP3tunes has been bled dry of cash without getting
close to a final ruling. Second, it casts doubt on the legality
of storing any kind of material in the Cloud. A consumer
can apparently ‘own’ a music file, store it on a physical
player or even a hard drive. But as soon as the storage
is rented from a third party, the whole setup becomes a
huge copyright issue.
This global Cloud is clearly exposed to some very
large-scale forces. “It’s a challenging area, work,” admits
Weigelt. “You have to look at all the legal obligations that
are there.” As ever, it’s all about building user trust. “We
want people to feel comfortable in sharing their files, their
photos, their videos.”
Retail
Despite any remaining qualms, there’s no question that
Cloud services are becoming a useful part of many
product offerings. Communicating that at retail, however,
presents a unique challenge.
Ackerson admits that demonstrating a feature like AcerCloud will be “tricky” on the retail floor. Acer will be doing
training to help get the word out, but is also relying on
reviews and online sources to spread the word. Purchasers
will see pop-up help on their screen to get them started.
Adds Warminiec, “Ultimately, the Cloud becomes the
center of your digital universe. It lets you share to all these
devices. It’s taking the TV world and opening it up.” The
approach really depends on the customer, he adds. “If they
already have a PlayStation, they’re already familiar with
the service. If they’re not too familiar with the technology,
that does create a challenge. But an opportunity too. I
think it’s going to become more and more relevant. Consumers are looking for some sort of networked television.
Havis Kwon, President and CEO of LG
Home Entertainment Company, says
LG Cloud is the first service “that
allows users to consume all types of
content on Android smartphones,
PCs and smart TVs.”
Scott Morris, Senior Director, Product
Marketing, Adobe Systems Inc.:
“Creative Cloud has meant transforming ourselves as a company. It
means creating a totally different
value proposition.”
There’s more and more of a demand.”
Many customers are not thinking about the Cloud at
all, just yet. Availability of a service like Video Unlimited
movie streaming is “not a question we get asked so often,”
admits Warminiec.
“It’s definitely about qualifying a customer,” he adds.
“Not everyone will ‘get’ downloading a movie. You have
to come at it from what they want. First: ‘Do you want
to watch high-definition movies?’ and then ‘How do you
want to do that?’
“The sales associate has to start educating our customer.
If they buy a Sony TV, they’re also going to get these
added services: Video Unlimited, Music Unlimited. The
sales associate has to do a better job of selling that added
value to the customer. Most customers won’t know about
this stuff, but there is that 10 per cent who will. You need
to know how to tie it all together.”
Bruce Schneier, Chief Security Technology Officer, BT Group plc: “Cloud
computing is all about trust. I have to
trust that my data won’t get shipped off
to a server in a foreign country with lax
privacy laws.”
Conclusion
With the Cloud, consumer electronics are literally moving into a whole new dimension. We’ve already seen that
Internet connectivity brings a flood of new content, and that’s
something consumers tend to understand, and embrace. But
the Cloud brings interactivity, with data flowing both ways.
This has the potential to make consumer electronics more
personal, with more relevance to users’ lives.
Going forward, retailers will need to be aware of that
ebb and flow of data, and grow their ability to communicate the implications to customers. The Cloud offers many
benefits, but it does so in a whole new way, with its own
new challenges and limitations.
“We’re going through a large shift in the industry,”
observes Warminiec. “It can be challenging. But it’s also
extremely exciting.” mn
The Retail Cloud
While Cisco is well known in the consumer market with its Linksys brand, it’s far more important overall as a
provider of hardware and services to the Internet backbone. That includes Cloud services that could be of interest to retailers.
Cisco acts as a Cloud provider to Cloud providers. “We’re really enabling our Cisco partners to build Cloud
solutions,” says Mike McDermott, Director of Cloud and Service Provider Channels at Cisco Canada. However,
Cisco is certainly willing to help businesses connect to the best provider. “If somebody needed some help finding the right partner, we would always provide a lead.”
McDermott notes that retailers, like most small- or medium-sized businesses, need computing services, but have
little desire to acquire all the necessary equipment and expertise. That
makes them perfect candidates for Cloud services. “Many retailers have
had to implement a lot of solutions onsite,” he observes. “There’s a lot
of potential to simplify their lives.”
He cites e-mail as an obvious example. “The Cloud is a good option
if you don’t want to maintain a (Microsoft) Exchange server, but you
also want more advanced features,” says McDermott. This could
include things like multi-site capability. Another example would be
Cloud-based telephone service. This could include basic Internet
phone service, plus a complete contact centre and even some futuristic extras like video calling.
Of course, raw compute and storage capacity are also commonly
requested Cloud resources. A business can put its own software application on a Cloud server, use it for development, and be ready for
fast deployment.
Mike McDermott, Director of Cloud
“You can have the same features as a really big corporation,” says
and Service Provider Channels,
McDermott. “The big benefit is in simplicity and rapid deployment.
You can configure it in 15 minutes, and scale it down just as quickly, if Cisco Canada: “The Cloud is a good
option if you don’t want to maintain
your needs change. Billing becomes flexible.”
a Microsoft Exchange server, but
Of course, Cisco is just one of many companies providing these
kinds of Cloud solutions to businesses large and small. If you’re look- want more advanced features. You
ing to expand the IT side of the operation, it might be worth checking can have the same features as a big
corporation.”
out some of the possibilities.
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The Tablet Space:
It’s Not All About Apple
GOING MOBILE
Ted Kritsonis
Most people think of the tablet category as new; but tablets in various forms have been around for two decades:
long before the iPad came along. In an interview shortly
after the launch of the original iPad in 2010, Microsoft cofounder Bill Gates stopped short of praising the new Apple
device, calling it a “nice reader.”
The hype surrounding the iPad launch stood in stark
contrast to the launch of the original iPod in 2001. But the
iPod eventually turned the music industry on its ear. We
tend to forget that the iPod had many competitors when
it first appeared. But after a half-decade, the iPod largely
eliminated its competition, thanks to a superior interface,
easy-to-use software and attractive industrial design. The
iTunes store, which offered people an easy way to buy
music online, was the final nail in the coffin of competing
MP3 players.
Will history repeat itself in the tablet space? Will the iPad
do to competing tablets what the iPod did to other music
players? There’s no question about the iPad’s popularity.
But so far, it hasn’t revolutionized anything the way the
iPod revolutionized music. Even so, Apple dominates the
tablet market. But that market is in its nascent stages, and
competitors aren’t standing still.
In its recent report Tablet Technology and Markets,
Futuresource Consulting projected that global tablet sales
will reach 232 million in 2016. That’s almost a four-fold
increase from the 64 million units sold in 2011. The report
also found that tablets were a “significant force” in the
growing app market, with tablet apps accounting for 10%
of total mobile app downloads. Futuresource expects this
number to double by the end of 2012.
These are big numbers suggesting enormous room for
growth. But there are a lot of other players besides Apple.
And they have their own takes on tablets and mobile
computing.
Different Strokes
“This idea that Apple called the ‘iPad’ has certainly helped
define the tablet market, but it’s not the only idea around
the category,” says Ken Price, Director of Mobile Communications at Samsung Electronics of Canada Inc. “We’re still
experimenting with sizes, form factors and features, just
like other manufacturers are. We don’t have one idea that
we keep updating incrementally.”
Given how far the tablet market is far from maturation,
the idea that it’s dominated by Apple is a simplification,
Price suggests. With several manufacturers making tablets
and incorporating their own ideas into them, there’s still
much to define when it comes to what tablets can and
should be.
“Not everyone wants a single kind of experience,” he
elaborates. “There are people who want the deep integration offered by Google services, who like how Android
looks and feels, who want devices that are a little more
expandable and configurable, all of which are attributes of
the Android-based tablets we’ve brought to market.”
Overview
• The global tablet market is expected to quadruple over the next four years. Apple is the dominant player.
• Android tablet makers are experimenting with different screen sizes and form factors, and unique features
for activities like videogames.
• Customers who already own Android smartphones will likely gravitate to an Android tablet.
• RIM may be down in the tablet market, but it’s not out, thanks to price reductions and new capabilities
from the Playbook 2.0 software update.
Market analysts typically group tablets together and
tend to also include them in wider assessments of the PC
business as a whole, making it difficult to ascertain total
sales of non-Apple tablets. And since the manufacturers
don’t disclose unit sales for tablets, exact figures are even
harder to distinguish.
Apple sold 11.8 million iPads worldwide in Q1 2012, a
151% increase over the same quarter a year ago. Moreover, the quarter ended only 16 days after the thirdgeneration iPad launched on March 15, so any further
increase in volume won’t be known until Apple reveals
Q2 financials this summer. Apple also doesn’t break down
sales based by country or region; but Futuresource’s report
indicated that North America and Western Europe accounted for a majority of tablet sales in 2011.
Steve Wong, Product Manager for Consumer Laptops
and Tablets at Toshiba of Canada Ltd., believes Apple’s
12-month head start accounts for part of the perception
of its dominance of the tablet market. He insists that there
are benefits to taking a different path.
“Having a whole ecosystem to yourself that’s closed
off is easier to manage, but there are also advantages to
working within a bigger environment,” Wong states. “Our
team works on bringing out the best in Android, while
Google has its teams working on making the operating
system itself even better.”
Standalone vendors with unique platforms, like Research
in Motion (RIM) and Amazon, have “limited resources,”
Wong maintains, because they’re focused on their own
ecosystems, and don’t necessarily have the open-source
community support that Android enjoys. Though Amazon’s Kindle Fire, which is not yet available in Canada, runs
on Android 2.3 Gingerbread, Amazon’s core services give
it a slightly different identity.
A report by comScore issued in April named the Kindle
Fire as the dominant Android-based tablet in the U.S.,
accounting for 54% of sales all Android-based tablets
up to the end of February. Samsung’s Galaxy Tab family
dropped from 23% in December to 15% in February.
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GOING MOBILE
to offer a ‘wireless throw’ feature that pushes your media
wirelessly to any DLNA-enabled device, which is one of
the key reasons we didn’t go with HDMI.”
One area Sony is keying on is gaming. Uniquely, the
Tablet S can be paired with a PlayStation 3 controller to play
games. A microUSB cable is required for the initial pairing,
but the controller connects via Bluetooth thereafter.
“In February we noticed an uptick in sales and downloads on our PlayStation Store from Tablet S users,”
Warminiec says. “It even works with games from Google
Play, like Angry Birds and Need for Speed, which is a huge
advantage for us.”
Fragmentation
Ken Price, Director of Mobile Communications, Samsung Electronics of Canada Inc.: “We’re experimenting with sizes,
form factors and features. We don’t have one idea that we keep updating incrementally. Not everyone wants a single
kind of experience.”
Wong says the Kindle Fire’s success in the U.S. has a
lot to do with its “aggressive” US$200 price point, even
though it’s not especially powerful and may not be
upgradeable to a newer version of Android. Amazon is
widely reported to be selling its tablet at a loss, ostensibly
knowing it could make up the shortfall through content
sales on its core apps.
But the Kindle Fire is also another example of a vendor
experimenting with a combination of form factor, features
and pricing, Wong says. He admits the formula has been
successful for Amazon thus far, but sees it as part of the
maturing process for consumers.
“We’re looking at a two-pronged approach, where we
hit the user with a sexy high-end unit that’s thin and light,
and a lower-end one that compromises a bit on features
and specs,” he says. “We haven’t totally gone away from
our initial approach of offering connectivity options, because we still have ports on a much thinner form factor.”
Toshiba’s Excite 10 LE is the high-end Wong refers to.
It’s a complete departure from the company’s first Android
tablet, the Toshiba Tablet (known as the Thrive in the
U.S.). The Toshiba Tablet stood out from others because it
offered a slew of connectivity ports typically seen on PC
notebooks, plus a removable battery. But it was criticized
for being too heavy and clunky. In contrast, the Excite 10
LE is among the thinnest tablets at just 7.6mm thin, and
weighs just 535g.
Screen Sizes
Even though components running these tablets are evolving, form factor and size are the principal differentiators,
with a number of display sizes hitting the market.
“The market is establishing itself around two dominant ones: the seven-inch and 10-inch,” says Paul Tayar,
Director of Product Marketing for Connected Devices at
Acer America. “The 10-inch is more for video and media
consumption, while the seven-inch is appealing for mobility with those same features in mind. We’ve noted a bit of
a gender-bias, with female consumers tending to favour
seven-inch models.”
Acer entered the tablet arena last year with both 10” and
7” models in its Iconia line, and continues to offer both
sizes this year. The Taiwan-based manufacturer has flirted
with the idea of releasing 7-inch models that are stripped
of certain features and offered at lower price points. As of
this report, the company hadn’t launched anything along
those lines. This year’s A200 and A510 are updated versions of their predecessors. “We’re looking to eventually
have a breadth of product when it comes to configurations, screen sizes and pricing,” Tayar says.
The first 7” tablet to hit the market was Samsung’s original Galaxy Tab, which was running on Android 2.3 Gingerbread. Android 3.0 Honeycomb, a more tablet-friendly
OS, hadn’t been released by Google at the time of launch
in the fall of 2010; however Samsung has just launched a
second-generation 7” Honeycomb tablet.
“There’s been a lot said about the iPad as a 10-inch reference point, but it’s not the only one we’ll end up seeing
in the long run,” says Price. “We feel there’s been demand
created around the seven-inch tablet because of the portability and the difference between single-handed use versus
dual-handed use. Not to mention business customers who
have focused more on the seven-inch size as well.”
Other manufacturers are taking different approaches.
Sony launched its first tablet, the Tablet S, months after
other Android-based models had already hit store shelves.
The Tablet S has a unique screen size at 9.4”. The Tablet S
has of a fold in the back that makes it look like a magazine, which means it’s not among the thinnest tablets on
the market.
“It’s one of the most comfortable and ergonomic tablets
to hold in your hand because of that fold,” says Karol
Warminiec, Central Region Training Supervisor at Sony of
Canada Ltd. “All the other tablets close to that screen size,
including the iPad, are a two-handed experience. Lay the
Tablet S down on a table and it gives you a little bit of an
elevation, and you can pick it up with just one hand.”
Warminiec adds that the back of the tablet was also
perforated so that a user’s hands wouldn’t slip if they were
clammy. The screen size, meanwhile, was a “strategic
move” intended for watching 16:9 HD video without black
bars onscreen, and for playing PlayStation games ported
over to the Tablet S. Even so, Warminiec says that there is
no guarantee Sony will stick with that screen size or the
ergonomic fold in the back in future tablet iterations.
“We were also criticized for not having an HDMI output,
but we have USB, which is a must on a tablet because
it’s the most universal and versatile input,” he adds. “How
many users want a 15-foot HDMI cable laid out across
the floor to plug the tablet into their TV? We were the first
The one common denominator linking Android tablet
manufacturers is the operating system itself. Widely embraced and open enough to customize, newer manufacturers “jumped on the bandwagon,” as Samsung’s Price puts
it, and wanted to sell Android tablets that were much less
expensive, but “cut corners” on performance, which may
have frustrated some consumers.
Another factor is Android’s fragmentation, as smartphones were running either 2.3 Gingerbread or 2.2 Froyo,
while most higher-end tablets ran 3.0 Honeycomb, says
Toshiba’s Wong. Manufacturers have also differentiated
themselves by incorporating overlays, like HTC’s Sense or
Motorola’s MotoBlur. These skins make each tablet unique
from a display perspective, but likely added to the confusion for consumers, Wong notes.
This fragmentation has also slowed down the development process of tablet-specific apps. Tablet versions of
existing Android smartphone apps took longer to develop
because of the different nuances between Gingerbread
and Honeycomb. To illustrate the point further, Google
publicizes overall figures for the number of apps available
in its Android Market (recently renamed Google Play),
without disclosing how many are tablet-only.
“It may have been tough for developers to decide which
one to prioritize, but so many more users were using
Gingerbread on phones, so the bulk of apps went there,”
says Wong. “Going to Android 4.0 Ice Cream Sandwich will
make it easier for them to develop one app that can work
on both.”
Ice Cream Sandwich represents the first time that Android will have a unified operating system for both tablets
and smartphones, and new devices launching in 2012
feature the new OS. Some tablets released in 2011, including the Sony Tablet S and Samsung’s Galaxy tablet lineup,
are upgradeable as well.
David J. Smith, Senior Vice President of Mobile Computing, Research in Motion: “We’ve really had to encourage
people to take a second look at the PlayBook. We’ve offered a very high value proposition that can be attractive
to both consumers and business users.”
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GOING MOBILE
Karol Warminiec, Central Region Training Supervisor, Sony of Canada Ltd.: “In February we noticed an uptick in sales
and downloads on our PlayStation Store from Tablet S users. It even works with games from Google Play, like Angry
Birds and Need for Speed.”
Wong notes that Android’s strength in the smartphone
market represents an opportunity for Android tablet manufacturers. For whatever reason, these customers chose an
Android phone over an iPhone; and will likely make the
same choice when shopping for a tablet. As Wong notes,
they’ll already be familiar with the Android OS. “We should
leverage that better moving forward,” he states.
Acer’s Tayar agrees, suggesting that Ice Cream Sandwich
can share different screen sizes with the same feature set
far better than any previous version of Android. Coupling
that with HTML5 support, and an opportunity beckons
for powerful, sophisticated smartphone-tablet integration.
But he cautions that it will take some time to get the mass
market to understand the nuances of how Android works,
since it’s evolved so rapidly.
“The key hurdle we have to get over is creating a
seamless usability between the phone and tablet,” says
Tayar. “For example, you’re texting on your phone, you
get home, put it down on the table, lie on the couch and
grab the tablet, then continue texting without interruption.
Same with Web browsing, where users can continue a session from a tablet upon leaving home on their phone, with
browsing history, too.That’s the kind of seamless integration that will get the visibility needed for consumers to
understand the benefits of the ecosystem.”
Play On
Android isn’t the only operating system looking to compete with Apple. Maligned for much of 2011 because of a
freefalling stock price and a perceived lack of innovation,
RIM also had to contend with a backlash after it launched
its PlayBook tablet.
The boiling points for critics and consumers alike was
the PlayBook’s software. Though the tablet was nicely
designed, it was missing crucial elements that set BlackBerry apart from competitors. There was no BlackBerry
Messenger support, and no dedicated apps for contacts,
calendar or even e-mail, all of which are staples of any
RIM smartphone. And because the PlayBook uses a QNXbased operating system, app developers had to build from
scratch knowing that their apps wouldn’t be compatible
with BlackBerry OS.
David J. Smith, Senior Vice President of Mobile Computing at Research in Motion, says those grievances were
largely addressed with the release of PlayBook 2.0, a
major update that included contact, calendar and e-mail
apps, along with social networking integration and Bridge,
a protocol that allows for a BlackBerry to control certain
features on the tablet.
“We’ve really had to encourage people to take a second
look at the PlayBook,” says Smith. “With Bridge capability,
we have Remote Control for controlling the PlayBook from
a BlackBerry, or using the phone’s keyboard to type out
messages, e-mails and documents on the tablet as well.
You can open sites or links from one device to another.
There’s also the viewing capability where you can connect
the PlayBook to a big screen via HDMI, so you can do a
PowerPoint presentation entirely from the tablet.”
Smith says over one million PlayBooks have been sold
since last year’s launch, though the bulk of those sales
came after a drastic $300 price drop in December. This,
coupled with the ability to run Android apps, helped
change the perception of consumers who might have
otherwise been on the fence, he says.
“We’ve offered a very high value proposition for $199.99
and $299.99 that can be attractive to both consumers and
business users,” he says. “We’ve had more games come
onto the platform in the last few months, in addition to
the Android Player capability where there are thousands of
Android apps available now.”
Porting an Android app can work in two ways, Smith
explains. In many cases, the developer can recompile the
app and submit it for posting in App World. A second option has proven more popular, he says: the use of what’s
called a third-party aggregator. In a nutshell, aggregators
are brokers that do the legwork of posting an app onto
app stores, and he says that RIM has worked with some to
move Android apps over to App World.
However, there are still some holes needing to be filled.
For one, Netflix hasn’t released an app for the PlayBook,
even though it already supports Microsoft’s Windows
Phone platform. Other video content services don’t have
dedicated apps for watching content on RIM’s tablet, but
Smith says there are other options.
“We recognize that our users want the content, and
we’re working to get it onto the PlayBook,” he says. “We
have YouTube; and our video store is in the U.S. now. Plus
Flash-based Websites arguably work better on the PlayBook than any other tablet on the market.”
Windows: Waiting in the wings is Microsoft, which
has made clear that it will be a player in the tablet space,
though it’s mum on the details. Windows 7 tablets have
hit the market already, but Microsoft hinted last year that it
is looking at a unified and integrated experience wherein
PCs, tablets and phones running Windows 8 could seamlessly interact and share content.
“It’s interesting, because Android is moving up in terms
Samsung’s new Galaxy Tab 7.0 Plus is its secondgeneration 7” tablet. It weighs in at 345g.
Tablet Facts and Figures
• People are 12% more likely to use a tablet outside
home than a laptop. Among tablet users, the most
usage outside home is on vacation.
• The primary use among tablet buyers is for personal
purposes; this is higher than what people report for
laptops.
• Over one-third of tablet buyers report that their tablet
has 3G connectivity capabilities. Among those who do,
on average 75% of the devices’ usage occurs at
locations with Wi-Fi connectivity and 25% at locations
that require 3G.
• The top three activities performed on tablets are
Web-browsing, e-mail and games. Reading e-books
is number four; however of all computer types the
tablets are much more likely to be used for this purpose.
Source: NPD Group
Sony’s Tablet S was the first tablet with the ability to “shoot” content to smart TVs and other DLNA devices via Wi-Fi.
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GOING MOBILE
RIM’s Playbook 2.0 software upgrade added many capabilities to its tablet, including contact, calendar and e-mail apps, along with social networking integration and
Bridge, a protocol that allows for a BlackBerry to control certain features on the tablet.
of form factor, going from smartphone to tablet, while Microsoft is going the opposite way to a smaller form factor
from PCs to tablets,” Tayar says.
Wong agrees that there’s room for Windows as well.
Toshiba’s attempt to include laptop features in its first tablet was a salute to the company’s legacy as a PC manufacturer. “There will always be users who are looking for stuff
Windows can do that iOS or Android can’t,” says Wong.
“Our strategy in the near term will be focused on Android
and Windows, because we think the customer buying a
Windows 8 tablet will be different than the one buying an
Android or iOS tablet.”
On the Floor
Qualifying those customers will be incumbent on retailers who are also learning the intricacies of promoting this
burgeoning category. Lining products up together like PC
displays may be the easiest way to do it; but retailers are
looking for other ideas to push the units.
Big-box retailers like Future Shop and Best Buy display the
iPad separately from competing tablets. Nicole Kinamore,
Merchandise Manager for Tablets at Best Buy Canada, says
most customers shopping for an iPad have already made up
their minds. They may have an affinity for Apple products,
or may know someone who already owns an iPad.
Acer’s Iconia Tab 510 has a 10.1” screen and quad-core processor. It runs Android 4.0
Ice Cream Sandwich and has rated battery life of 15 hours.
“The iPad has been dominating the tablet category but
not to the extent that the iPod did with portable media
players,” says Kinamore. “There’s still an appetite for
Android and BlackBerry devices, just as there is in the
smartphone category. Windows 8 could also be a huge
game-changer, as tablets eventually move from a consumption device to a productivity one.”
Jeff Ring, Senior Merchandise Manager for Home Office at Future Shop, says customers are walking into the
retailer’s stores wanting to gain a better understanding of
other tablet options before making a purchase.
“Consumers who primarily use a tablet out of the home
often consider a smaller screen size that is more portable and fits easily in one hand, and seven-inch models
have been a good one for that,” says Ring. “People who
already own a BlackBerry or Android handset may be
more comfortable with a tablet that operates in a similar
way. Customers who want a colour eReader may choose
a PlayBook because it offers that capability and additional
functionality at a great value.”
Ring says price is a major factor, which explains why
PlayBooks flew off the shelves once RIM slashed $300 off
the price tag. Kinamore adds that the PlayBook is a “quality tablet” that benefitted from the price drop and the 2.0
OS upgrade.
The bog-box retail presence notwithstanding, Apple also
has its own retail stores where it controls the messaging.
Retail staff focus just on the Apple products, much as staff
at the Sony Store do, says Warminiec. Sony Store employees can use the Tablet S to demo the unit itself, and to
demo products and services that complement the device.
“We have a distinct advantage with our Sony Stores, especially since we’re targeting a premium customer,” he says.
“Price point was never a big issue for us because there’s so
much value you can build when you have a tablet that has
something intriguing for different consumers.”
Samsung’s Price concedes that Apple got it right on
customer service by offering a great shopping experience,
even if it does cost more to achieve. He believes it’s about
telling a story better and selling value-add to create more
conversion. But he believes that the market itself will go
through a correction of sorts.
“The tablet, in general, is a real success story, but there’s
still so much untapped potential that will make it a growth
category for a while,” he says. “Component manufacturing
and screen technology is so important to making tablets.
Give it a few months, and the number of players will
start to dwindle because companies that jumped on the
bandwagon will find that execution is a lot harder than it
sounds.” mn
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Go Big or Go Home: What’s Hot in AV Furniture
FEATURE
by Dan Blackwell
Jeff Lacey likes to point out a simple fact whenever he
sells a television: the new owners are going to be looking
at it every day. Chances are they already own some quality furniture: comfortable chairs and sofa, a stylish coffee
table. “They’re going to be pointing the chairs toward the
TV,” says Lacey, Sales Specialist at TruTone Electronics in
Mississauga, ON. “The TV is going to be the centerpiece of
the room.”
Lacey says his customers get the message. AV furniture
is “a very important category” for TruTone, and the independent store stocks a generous assortment of models: TV
stands, component racks, even specialized products like
solid-wood subwoofer enclosures with grill-cloth doors.
Even with the wide range of products on the floor, most
purchases are made from catalogues. Floor models give
consumers confidence in the maker’s fit and finish, Lacey
notes, but they order a configuration and finish to suit
their needs.
Most of TruTone’s furniture sales are made at the same
time as a component purchase, rather than after the fact,
Lacey says. A quality TV stand will typically generate more
profit for the store than the flat panel that sits on it.
Not surprisingly, TruTone’s furniture sales reflect its sales
of AV components. Despite price erosion, the sweet spot
for TVs at TruTone remains $3,000 to $5,000; but people
are now buying bigger sets. And they’re buying a stand to
match. “The single most popular configuration is generally
20 inches high and 60 to 70 inches wide,” Lacey states.
“That form is basically what sells all the time.”
About half of TruTone’s customers elect to place their
big-screen TV on a table rather than mounting it on a wall.
There’s a reason for that. Even with a move away from
plastic discs to streaming media, most people have several
AV components.
“Even if somebody has an Apple TV, it’s not their sole
media source,” Lacey notes. “They’re still going to have a
surround-sound receiver. They’re going to have a cable or
satellite box. People still buy Blu-ray players even if they
only use them occasionally. So there are still going to be
four or more components in the average system. And
they’re going to have their game systems, too. There is still
a lot of shelf space needed for all that equipment.”
Available in black oak and walnut finishes, Plateau’s Newport 62 cabinet comes with both grille-cloth and glass
doors, so users can create a configuration that meets their needs.
Also creating a desire for larger units is the need for
internal speaker space. “The flexibility to be able to put a
speaker in there, whether it is a soundbar or a centre channel, is definitely something people ask for all the time,”
Lacey states.
But TruTone’s customers don’t want their AV systems
out in the open. They’re leaning towards a hidden look,
with a premium placed on a concealing, subtle design.
“The open glass-and-metal style has been on the decline
for a number of years now. We do very, very little of that.
Consumers are concerned with how it’s going to fit into
the their room. If I put in a cheap glass-and-metal stand,
that’s going to affect the look of my room. What we’ve
been doing mostly for the last four years has been closed
cabinets.”
The store’s top seller is a gorgeous white TV table from
BDI, the Nora 8329. “We sell a lot of them to condo
owners,” Lacey says. Even though it’s wide enough to
accommodate an 80” screen, this long, low cabinet blends
gracefully into small spaces. But the store also does a
healthy business in cabinets with traditional cherry and
walnut finishes, such as the Synergy series from Salamander Designs.
“The ones that sell the most are a triple-20 configuration with two doors and a drawer,” Lacey says. “They’ve
recently augmented their Quad models to have a bigger
centre channel opening to accommodate bigger speakers.
And, of course, that extra length is going to look much
better with the 80-inch TVs and the 90-inch TVs that
come out later this month. That is going to look perfect for
that kind of product.”
With snap-on door hinges that provide easier access,
perforated door inserts that allow for IR signals to reach
devices inside the cabinet, and precision leveling feet to
compensate for uneven flooring, the Synergy Series’ girth
is matched by its functionality.
various soundbars and centre channels, and people want a
higher height.” And he also sees a move toward traditional
wood finishes.
Moore cites the popularity of Plateau’s Newport Series
as a reflection of the consumer’s desire for combining a
furniture-esque aesthetic and a larger unit size. Available
in 40” and 62” widths, the Newport’s natural wood design,
interchangeable glass and grill-cloth doors, cable-management system and ventilated backing offer customers the
appearance of a traditional furniture piece without sacrificing features audio-video connoisseurs are shopping for.
Heidi Bennie, General Manager, Bell’O AV Furniture Division, Gentec International: “We’ve seen a resurgence in
our Wood series over the last two or three years. I think
that’s consumer tastes changing.”
Wider and Taller
Canadian manufacturer Plateau plans on making 2012 its
year to go big, says President Jim Moore. “We’re looking at wider and taller units,” he says. “There is a need to
have cabinets, and just having stands being wider for the
Overview
• TV cabinets and component racks are natural attachments to CE sales, and often produce greater profit
than the equipment they house.
• On TV cabinets, there’s a move from metal-and-glass to wooden cabinets that keep all the
equipment concealed.
• Consumers are buying larger screens, so need larger cabinets to house them.
• To match ultra-thin flat panels, wall-mount companies are developing full-motion ultra-thin mounts.
Jim Moore, President, Plateau Corp.: “Most people are
putting the TV in their main room, so you have to have
a piece of furniture as opposed to a rack with some open
concept design.”
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FEATURE
Floating in Air
Sanus’ full-motion Visionmount VLF322 can hold an 84” panel and extend 20” from the wall; but it sits 1.5” from the
wall when retracted.
Coincidentally, OmniMount’s most recent offering is also
called the Element Series. These value-priced products aim
to provide maximum flexibility in a single SKU. The two
TV cabinets in the Element Series come with a mounting
post, and also with a wall mount. Customers can mount
the TV on the post so it “floats” above the stand, mount it
on the wall, or simply place the TV on the cabinet. When
post-mounted, the TV can be panned 30 degrees to the
left or right.
The Element Series provides similar flexibility in styling,
notes Brad Tabor, OmniMount Systems’ Sales Manager
for the Americas. The products ship with four insert panels
(high-gloss black, cherry, brushed stainless steel and walnut), so customers can match the stand to their décor and
to other components.
“We’ve tried to design our furniture to be a bit more
sleek,” Tabor says. “Instead of just a straight line we’ve put
a curve, which gives it a softer look and makes it disappear a little bit more. The insert panels actually rides with
the curve.”
Tabor adds that moving forward, OmniMount’s 3-1
furniture units will be incorporate Constant Force technology, which is used on the company’s Play Series of wall
mounts. Constant Force allows 20” of continuous verti-
OmniMount’s Play Series of mounts allow 20” of continuous vertical and horizontal movement, so they can be used
for following exercise videos, watching movies, or playing full-motion videogames.
“Each year flat panels were just coming down monthly
in pricing, to the point that 60-inch sets have become very
reasonable for most people,” Moore says. “Most people are
putting it in their main room, so you have to have a piece
of furniture as opposed to a rack with an open-concept design. It’s become more furniture-ey; but you have to always
marry the functionality with the design.
Heidi Bennie, General Manager of Gentec International’s
Bell’O AV Furniture Division, also sees a move toward
traditional finishes, with an increased focus on an elegant,
curved look. “We’ve seen a resurgence in our Wood series
over the last two or three years,” she states. “I think that’s
consumer tastes changing. It’s not that we’re not offering
metal and glass. We’re just seeing an increase in sales on
the wood side.”
As examples, she cites two Bell’O products that got a
lot of attention at CES. Priced at $650, the CW355 has
curved wooden sides and bottom-mount drawers with an
espresso finish. There are three shelves – one wood and
two tempered glass – and at the back a simple cable-management system. The cabinet is 51” wide, ideal for a 52”
LCD or 54” plasma. “It’s a design that’s more for boutiquetype stores,” Bennie states.
The AVSC2155 also has an espresso finish. It’s 60” wide,
suitable for TVs up to 65”. Underneath the top shelf is a
large hanging shelf designed to accommodate a centrechannel speaker or soundbar.
Another manufacturer addressing the consumer’s need
for functionality and beauty in their AV furniture is Turkish
designer Sonorous, distributed in Canada by Thunder Marketing International Inc. Sonorous’ modular Element Series
combines its own unique features with a truly concealed,
minimalist aesthetic.
Built low to the ground, and available in single-, doubleand triple-cabinet configurations, the handmade Element
units feature touch-open doors, a full-width cable-management system in the back, and an IR repeater unit capable
of receiving commands from up to eight remotes.
“Any component that has to be concealed within the unit
can be totally out of sight and out of mind,” says Valentino
Marchione, National Sales Director at Thunder Marketing.
“With the IR repeater system, all you’re going to see is a
nice, very furniture-looking piece.”
Marchione says consumer tastes have changed since
the flat-panel boom began. “When panels first came out,
pedestal-type stands were pretty well the only of thing on
the market. I think the trend now is concealment. We’re
going back to a lower profile, a furniture-box scenario,
because people are decorating the top, putting little file
systems, gaming systems, even Kinect pieces or the Wii IR.”
Marchione is quick to point out that the unit’s price of
$400 to 500 (depending on the configuration) meets pricing trends on TVs. He says consumers price thresholds for
TV cabinets are about half the price of the TV that sits on
top of them. “The majority of business volume in television
is in the lower price levels, the sub-$1,000 price range,” he
says. “That has put a pressure on furniture companies to
come out with value products.”
Sanus’ FMS adapters allow users to “float” their TVs on
a pillar above compatible FMS stands, and provide tilt
and swivel capability.
Brad Tabor, Sales Manager, The Americas, OmniMount
Systems: “We’ve tried to design our furniture to be a bit
more sleek. Instead of just a straight line we’ve put a
curve, which gives it a softer look and makes it disappear a little bit more.”
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FEATURE
Jeff Lacey, Sales Specialist, TruTone Electronics, Mississauga, ON: “The open glass-and-metal style has been on
the decline for a number of years. What we’ve been doing
mostly for the last four years has been closed wooden
cabinets.”
cal and horizontal movement, without the use of knobs
or handles. The TV can be lowered to floor level for an
exercise video, raised to chair level for a movie, and raised
further to standing level for playing a Kinect video game.
Three models are available, for TVs from 32” to 55”; and a
Play mount for 70” panels is forthcoming.
Lacey says functional, flexible mounts, especially ultrathin models suitable for today’s ultra-thin panels, are
popular with TruTone’s customers. “Right now about half of
our customers avail themselves of the wall-mount option,”
he says. “We’ve seen some companies respond by trying
to make their brackets even thinner to match that incredibly skinny profile.”
Ultra-thin mounts are an increasingly important category
for Sanus, says Ryan Mathre, the company’s Communication Specialist. “Our mounts have definitively become
thinner. People love that slim, flat look, so they want it as
close to the wall as possible, and that’s something that we
are continually developing.”
In June, Sanus will introduce two new full-motion
ultra-thin mounts. The VisionMount VLF320 can hold a
panel up to 84” and extend 20” from the wall, while the
VMF322 can hold up a 47” flat panel and extend up to
22”. When retracted, both models sit less than 1.5” from
the wall, and feature touch adjustment as well as cable
management systems built into the extension arm.
Sanus has just introduced the Furniture Mount System.
The FMS pillar attaches to the back of FMS-compatible
Sanus TV stands; the panel mounts to the pillar and floats
above the stand. Users can attach small items like cable
routers on the back of the FMS pillar, hiding them from
SL series
Plateau’s LSX-T62 cabinet can accommodate TVs up to 62” wide. It’s available in black oak and walnut.
Underneath the top shelf of Bell’O’s AVSC2166 is a large hanging shelf for a centre-channel speaker or soundbar.
view, and route cables through it.
In addition to creating thinner mounts to match thinner
flat panels, Mathre says lower prices are among the strongest motivating factors for this year’s consumers. “From
my experience, if people have a $1,500 budget, they want
Decor
to put it all into the TV,” he says. “TV prices are lower now,
so I don’t really know if those customers are going to be
spending more on furniture. I think you have to come
up with options that match the reality of where those TV
prices are going.” mn
Newport
If you believe in only the best for your audio system or home theatre, then we believe PLATEAU is the only choice.
www.plateaucorp.com 519.538.1606 e-mail: sales@plateaucorp.com
42 MARKETNEWS
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Keep Your Cool: What’s New in Fridges
APPLIANCES
By Vawn Himmelsbach
Technology is omnipresent in our homes, not just in the
home office and the family room, but in our kitchens
as well. Some of the manifestations are obvious: like
networked fridges that let users check contents with
their smartphones or browse the Internet on built-in LCD
screens. Less obvious, but arguably more important, are
technical innovations connected to the fridge’s core function: features that help keep food fresh for longer, create
more space, and improve energy efficiency. Better technology means less wasted food.
Market Snapshot
According to Perry James, President of Home and Office
Supplies for NPD Group Inc., total unit sales of refrigerators
in the U.S. fell 3% during 2011; and dollar volume fell 4%
(NPD doesn’t have Canadian figures for fridge sales). “We’re
seeing a bit of price erosion in the U.S. market due to
heavy retail competition,” says James, adding that the U.S.
market has also been much more affected by the recession
than Canada, and categories related to the house, major
appliances and home improvement are still recovering.
“In refrigerators, 2011 was a pretty weak year,” he
elaborates. “We’re hoping for a little bit better in 2012; and
there are some glimmers of people opening up the purse
strings again.”
That being said, there are hot categories: French-door,
four-door French-door, stainless steel and larger models.
“All of those are higher-price products, so really what you’re
seeing is resilience with higher-end customers who have
weathered the recession without problems,” James notes.
The big trend in refrigeration will continue to be Frenchdoor models, James predicts. This segment showed growth
of 6% in the U.S. during 2011. Another trend is four-door
French-door refrigerators (two doors that sit atop two drawers). While it’s only a small segment of the market at this
point, it grew significantly by 127% in the U.S. market last
year.
“Bigger is also a big trend,” he adds. Models 25.5 cubic
feet and larger have grown from 18% of the market in
2008 to 45% in 2011. North Americans want big: as big
as they can fit in their kitchen. In the U.S. market, the 36”
segment has grown from 36.3% of unit sales in 2009
For 2012, LG is offering 36” fridges with massive 31-cubic-foot internal capacity. This is achieved through the use of
super-thin vacuum-insulated panels.
to 40.6% of the market in 2011. The 30” segment is the
second-most important segment in the U.S., James says.
Stainless steel continues to grow, as consumers move away
from white and black (as well as other colours). The stainless
steel segment grew from 21% of the market in 2009 to 30%
in 2011, according to NPD. White is still the dominant colour
at 36%; however, it declined from 38% in 2009.
North American consumers are not highly disposed
to take a risk on colour. “If they’re going to buy a new
appliance that might cost them $2,000-plus, they’re not
wanting to make a purchase that might go out of style, out
of trend,” James explains, adding that when the economy
is stronger, consumers are more willing to take a risk with
colour trends. “Stainless has become a mainstay in the
U.S. market,” James states.
Stainless still has cachet (it’s easier to sell your house if it
has stainless steel appliances), so this trend will continue for
the foreseeable future, James predicts, except for lower end of
market where consumers will stick with basic white and black.
There’s continuing strength at the lower end of the market, he adds. Midrange consumers are either trading down
to a lower price point or not purchasing at all, unless they
purchase under duress, which means their refrigerator has
broken down. This dichotomy means we’re also seeing
growth in the low end of the market with traditional topmount freezer models.
While there are broad similarities between the U.S. and
Canadian appliance markets, there are important differences too. Most importantly, the Canadian economy is
comparatively robust, and the real estate market is not
nearly as distressed. People are buying new homes, which
also means they’re buying new appliances.
Fresh Innovations
Canada has a cosmopolitan audience that’s looking for
great design, new technology and energy efficiency, observes Frank Lee, Senior Manager of Corporate Marketing
with LG Electronics Canada Inc.
One pain point in the refrigeration segment is space, Lee
notes. Consumers would like a cabinet-flush design, but
don’t want to give up capacity. LG has counter-depth models that offer 25 cubic feet of storage, which is comparable
Overview
• For 2012, appliance manufacturers are rolling out fridges with new features that help keep food fresher longer.
• A growing segment is the four-door fridge; their counter-height drawers have separately adjustable
temperature.
• LG and Samsung are introducing fridges with LCD screens and networking capability. But the jury is
still out on whether consumers will actually use these features.
to a conventional standard-depth 36” fridge. LG also has
standard-depth 36” fridges with 31-cubic-foot capacity.
LG achieves this space efficiency through the use of
vacuum-insulated panels. Quite literally, the thin exterior
panels have nothing inside, not even air; there’s just a
vacuum. Vacuums cannot conduct heat or cold, which
means the walls can be very thin, yet very effective at
keeping the fridge cold.
Other design elements also create more space. LG has
built the icemaker into the door rather than the interior,
creating more usable space. LG also offers convertible
crispers and drawers, so there are more options for food
storage and easier-to-organize spaces.
“We’re trying to make the refrigerator the armoire of the
kitchen,” Lee states. This year, LG offers unique shelving
options, including a full-width tray that can accommodate a
pizza box, deli meat or cheese tray, or shrimp cocktail platter.
These innovations also make food more visible and accessible. How many times have you come home from the
grocery store with a head of lettuce, only to discover you
already have a head of lettuce tucked away at the back of
the crisper underneath a pile of vegetables? Or your condiment rack is full of four different types of mustard, yet
you just picked up yet another bottle? As Lee notes, better
organization means less wastage.
One model LG is launching this year will have “in-andout privileges” via a caddy door. If you press a button on
the fridge handle, the face of the door opens up (rather
than the fridge itself), so it’s like a door within a door. This
is about convenience (you can easily get to the milk or
OJ), but also about energy efficiency. “It may not seem like
a lot at first, but over a year you save five per cent more
energy by not having to open the whole door and let out
cold air,” Lee explains. This also makes a contribution to
food freshness, since you can keep the temperature and
humidity of perishable goods more constant.
Similar to LG, Samsung has developed vacuum-insulated
paneling, which means the walls are a lot thinner, yet able
to insulate effectively. One new feature this year is the Ice
Master, which is about two inches thinner than a typical
icemaker, yet can produce 30% more ice. It increases
internal capacity 0.4 cubic feet. The water filter has also
been moved from the back right corner to between the
two crispers to create more usable space.
Samsung’s four-door French-door fridges feature a FlexZone Drawer with Smart Divider. The middle drawer has
four temperature settings, from -1 to 5°C. The FlexZone is
ideal for families, says Sam Kim, National Trainer of Digital
Appliances for Samsung Electronics of Canada Inc. The
Smart Divider lets you organize food into four separate
areas (different family members can have their own areas).
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APPLIANCES
the company. It works like this: A fan distributes chilled air
throughout the PerfectFresh zone to ensure the storage temperature is maintained and humidity levels are controlled.
Smart Appliances
The Preserva Food Care System on new KitchenAid
fridges uses sequential dual evaporators to provide
independent cooling of the fridge and freezer, so air
doesn’t travel between the compartments, keeping
temperature and humidity at optimal levels. The new
models also feature a FreshFlow Air Filter that eliminates
odours, and a FreshFlow Produce Preserver that extends
food freshness up to 25%.
It’s also at counter height, so kids can easily access an
after-school snack.
A conventional fridge uses a single evaporator system;
air is shared through vents from the freezer to the fridge.
The dry air from the freezer sucks the moisture out of fruits
and vegetables in the fridge.
“We have separate evaporators for freezer and fridge,”
Kim says. “The biggest benefit is we’re able to retain
proper humidity levels.” Twin Cooling Plus technology
circulates air within the refrigerator and freezer compartments individually to maintain optimal humidity levels
and prevent odours from transferring between compartments; freezer air stays drier, while the refrigerator’s
humidity levels remain at optimal levels.
New features on Whirlpool’s fridge lineups for 2012
(brands under the Whirlpool umbrella include Whirlpool,
Maytag, KitchenAid, Jenn-Air, Amana, Bauknect, Brastemp,
Consul, Roper and Gladiator) include the FreshFlow Air Filter,
FreshFlow Produce Preserver and Preserva Food Care System.
The FreshFlow Air Filter helps to eliminate odours; it’s
15 times more effective than baking powder, according to
the company. The FreshFlow Produce Preserver absorbs
ethylene gas, which is released by produce as it ripens. This
helps to extend food freshness by up to 25%, says Colleen
Spagnolo, Product Manager of Refrigeration for Whirlpool
Canada Inc. Both features require the user to replace the
filter every six months (currently Whirlpool is working with
its trade partners to make the filters available to customers).
The Preserva Food Care System uses sequential dual
evaporators to provide independent cooling of the fridge
and freezer, so air doesn’t travel between the compartments, keeping temperature and humidity at optimal levels.
Another new feature is the “70/30” crisper. Instead of
two crispers of equal size, the crispers come in proportions
of 70/30, so consumers can fit long vegetables such as
celery and carrots into the larger crisper. And it offers folddown shelves for easier food storage.
Miele has a program called PerfectFresh, which is a cooling concept for optimal storage conditions. The climate is
controlled to keep food fresh for up to two to three times
longer than a standard refrigeration section, according to
For 2012, LG and Samsung are both launching fridges with
door-mounted LCDs, built-in networking and the capability of running simple apps, including some related to food
preparation. These networked fridges can also communicate with other devices, such as smartphones and tablets.
“We’re building a database so you could scan the receipt
with the camera built into your phone and send it to your
fridge and populate your inventory,” says Lee of LG. This
allows you to manage your food inventory, and even ask
for recommendations on recipes using the items already in
your fridge.
On average, an apple placed in the crisper lasts five to
seven days, so the fridge might recommend an applebased dessert if those apples are nearing their expiration
date and losing their nutritional value. It can also recommend recipes based on dietary requirements, such as
low-sodium, gluten-free or diabetic options.
“In Canada we embrace new technologies, but we’re
also very pragmatic,” Lee comments. “Striking that balance
has always been important.”
Samsung is launching its first smart fridge this year, a
four-door, French-door model with 8” colour touchscreen
and built-in Wi-Fi. “It’s great for communicating with family
members,” Kim states. “You can share photos and take a
look at online recipes.”
The smart fridge runs the Epicurious app. You can enter
items you have in your fridge, and then view possible recipes along with ingredient lists. A grocery list can even be
sent to your smartphone for your next trip to the grocery
store. Other apps include Google Calendar, so you can
coordinate the family’s calendar in one location; Weatherbug, so you can decide if you need your umbrella when
you leave for work; and Picasa, so you can download
photos onto the fridge’s LCD screen.
At this point, there’s not a big demand for this functionality, Kim acknowledges. But he expects there will be more
excitement in the future when new products and features
hit the market.
NPD’s James says there’s a lot of buzz around Internetenabled refrigerators; but that’s what it is: buzz. “It’s a cool
technology but it’s yet to really take off in the U.S. If I’ve
got a smartphone, a smart TV, a personal computer and a
laptop, where is the value of an LCD or connected appliance? There’s a lot of work trying to be done in that area
to find cost savings from measuring energy usage and
even potentially finding an opportunity to purchase groceries right on the fridge. But the viability of that is still yet to
be determined.”
That’s not to say smart fridges won’t eventually take
hold. But consumers will only get on board if the technology makes their lives easier or saves money. If nothing
else, James says it’s helping to bring some interest into the
refrigeration category and perhaps even driving traffic into
appliance departments, even if those consumers are not
actually purchasing a smart appliance.
One way smart appliances could help owners save
money is through interaction with smart meters and smart
electrical grids to aid with energy conservation. In pilot
projects in European, Asian and the U.S. locations with
smart grids, consumers can monitor the energy consumption and performance of their refrigerators.
LG is conducting pilot projects in regions that have rolled
out first-generation smart grids. In Canada, there’s a trial
involving 100 fridges that can communicate with smart
electrical grids. The municipalities of Milton and Mississauga in Ontario, as well as Vancouver, have started rolling
out smart meters. A larger footprint of these smart grids is
needed for the market to pick up at retail, Lee says.
There are other practical uses of networking capability
in fridges. LG already has appliances with smart diagnostic
systems, which is one place we’ll likely start seeing an
uptake in smart appliances. In the event something goes
wrong, whether it’s human error or the unit itself, the
refrigerator will go into diagnostic mode and contact a
service centre to arrange a service call. With this information, the technician will arrive with the right parts, rather
than having to make two visits to assess the problem and
then come back to fix it.
Kelly Lam, Vice President of Marketing at Miele Canada,
questions whether consumers will find these network features attractive; but he definitely sees the value in remote
diagnostics.
“The industry is still trying to work out how the Internet
and electronic apps will play a role in refrigeration,” he comments. “Is it something that consumers are going to look
back on a year later and ask, ‘What was I thinking?’ There
are a lot of features that consumers might find interesting,
but at the end of the day they don’t end up using them.”
Moreover, consumers won’t necessarily find an LCD
screen in the middle of the fridge door aesthetically appealing. And for Miele’s upscale clientele, aesthetic appeal
is definitely important. As a result, Miele isn’t jumping into
this space in the same way as some of its competitors.
However, Miele is offering remote vision capabilities, where
the refrigerator would notify the service department and
customer in case of malfunction. This capability will provide
peace of mind to customers who have, say, a wine fridge
with $10,000 worth of wine in it or a fridge up at the cottage.
Design and Aesthetics
Miele, a German company, offers two product lines. The
compact European line, which includes a 24” built-in and
30” freestanding model, is ideal for condos and smaller
spaces. The European and Asian markets are different
from a food culture perspective; there are more fresh
food markets and people typically buy for the day. North
Americans like to shop for the week (or longer) and tend
to buy in bulk.
The products reflect these cultural differences. Miele’s
European fridges are smaller, with more compartments.
And while European-style refrigerators are not a huge
seller in Canada, Miele is seeing demand in urban areas
such as Vancouver and Toronto, where the condo market
is booming.
“Condo sizes are becoming smaller,” Lam explains. “It
really is about how am I going to get maximum space and
Miele’s MasterCool line includes fridges, freezers, bottom-mount fridge/freezers and a wine-storage system,
so homeowners can customize a combination that meets
their needs.
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refrigeration is one. I’m urban, so I can pick up stuff onthe-go. I don’t need a massive refrigerator.
Miele’s 24” European built-in fridge/freezer has height
-djustable interior shelves and door bins. But the 30”
bottom-freezer fridge is still the most popular model for
Miele Canada. “People like the aesthetics of a French-door
fridge, and we’re still seeing bottom-mount as a preference
for consumers,” Lam says. In the premium segment, the
models are not as deep as freestanding fridges. “People
like a shallow depth so they can see everything and don’t
have to reach way back,” Lam observes, adding that this is
also a trend we’re seeing with cupboards.
Miele’s MasterCool line was specifically developed
for the North American market. It includes 30” and 36”
bottom-freezer combination models; 30” and 36” fridges;
18”, 30” and 36” upright freezers; and a 24” wine-storage
system. When it comes to larger models, consumers are
looking for flexibility, Lam notes.
From an interior perspective, there’s a certain base
expectation that a refrigerator should cool properly.
Beyond that, consumers are looking for different programs
available in the fridge, such as the ability to automatically
set humidity levels for certain types of foods and flexible
shelving that is easy to move and clean.
From an exterior perspective, the MasterCool’s “column”
concept allows consumers to create a customized builtin fridge/freezer/wine combination to suit their needs.
(Each component has its own compressors, which isolates
odours and keeps food fresher.) As with built-in wall ovens
and cooktops, separate built-in fridges and freezers allow
for more flexibility in kitchen design. Consumers may not
want a side-by-side fridge/freezer. Maybe they don’t use a
freezer on a daily basis, and don’t want a 48”-wide bank
of stainless steel in their kitchen. A larger home might
have a butler pantry, and some consumers may choose
to put their refrigerator and a wine cooler in the kitchen,
but the freezer in the pantry (or some other combination).
Separate appliances can address all these scenarios.
On the high end, Miele is seeing a trend toward custom
integrated door panels. While stainless steel is still popular,
in some cases consumers are hiding their refrigerators with
custom panels. Lam has seen everything from a chalkboard finish (ideal for a household with young families)
to unusual materials like slate. In other cases, consumers
want the fridge to match their cabinets.
Five years ago stainless steel was a premium feature.
Now it’s more or less standard; and is still highly popular.
However, one of the biggest complaints about stainless
steel is that it’s high maintenance. Fingerprints are very
visible, and you need to use special stainless steel polish
to remove them.
“We launched a line that has the look and feel of
stainless, but it’s a little warmer,” said LG’s Lee. “It’s more
stain- and scratch-resistant, and more affordable.” This
vinyl-coated metal finish also cleans easily with wet paper
towels. For rental units or high-traffic areas (or buyers on a
budget), it provides the look of stainless steel without the
high maintenance or cost.
Shapes and Sizes
French-door refrigerators are popular from an aesthetic
perspective, but there are practical reasons for their
popularity as well. At Canadian dinner parties, there are
typically four guests in the kitchen who are not directly
involved in food prep, Lee says. Even if you have a wellappointed family room, guests tend to saunter into the
kitchen to chat.
When you open a French-door refrigerator, the open
radius is much smaller than that of a conventional refrigerator with one large door. “Now you can have your island
with a standard full fridge,” Lee explains. “In most cases
the customer was already thinking French door, but now
the designer recommends it for functionality reasons.”
Samsung now has a French-door model for every size
Samsung’s new RF323TEDBSR French-door bottommount fridge features 32-cubic-foot capacity, a twin
cooling system, high-efficiency LED lighting, and a fullwidth pantry drawer with its own temperature setting.
For 2012, Whirlpool is offering a 25-cubic-foot fourdoor bottom-mount fridge with a Fast Cool feature that
quickly adjusts fridge and freezer temperature to accommodate food additions.
category: 30”, 33” and 36”. And it’s increasing its Frenchdoor lineup, and offering more four-door French-door
models. “In terms of internal capacity for food storage,
we’re launching a model later this spring that’s able to
hold 32 cubic feet,” Kim says.
“On the builder side, overall I would say in North America there’s that mentality of bigger is better,” Kim notes.
“Chest freezers are a good seller in North America.” That
being said, Samsung will be introducing a model in the
24” category this year for urban markets such as Toronto
and Vancouver, although overall Kim says there’s not a
growing demand for smaller fridges.
The top-mount freezer is slowly dying off in the Canadian market, Kim says, while bottom mounts are increasing.
It will be launching a 30” French-door model in late summer (which is 67” in height), as well as a Wi-Fi-enabled,
four-door model in late 2012.
The French-door bottom-freezer is the fastest-growing
segment for Whirlpool Canada. But the company is still
seeing demand for top-mount models. In 2011 the topmount category made up about 54% of sales, while the
French-door category made up 22%. In the first quarter of
2012, the top-mount category declined to 52% of sales,
with the drop-off being picked up by the French-door
category.
About 40% of consumers have a refrigerator cutout
that is 30” wide, which explains the growing popularity
of the 30” French-door model. It can fit into more homes
than the 36” French-door model. According to Spagnolo,
stainless steel is still the preferred finish, specifically in the
French-door category, followed by white, then black.
Despite all the new bells and whistles, it’s sometimes
easy to forget that the primary purpose of the fridge is
food preservation. Being able to store your food and keep
it fresh longer (and keep your beer cold) is what it’s all
about. “The pillars of refrigeration will stay the same,”
Spagnolo says. “So what can we do to continue to improve
organization and food preservation?” mn
Chill Out!
On some upmarket fridges for 2012, LG has a neat interior feature: the Blast Chiller. The Blast Chiller will
quickly cool a range of beverages, from pop to wine. It takes five minutes to turn a soda or beer can from room
temperature to frosty, and eight minutes to chill a bottle of wine.
So, if you’re having a party and don’t have room in the fridge for everyone’s beer and wine, you can quickly
chill more drinks when needed. “There’s always one guy who brings the cheapest beer but drinks everyone’s
imports,” says Frank Lee, Senior Manager of Corporate Marketing at LG Electronics Canada Inc. “You can’t
change that, but if he takes the last cold one, you can quickly repopulate the beer that’s frosty.” It’s also a fast
way to chill a glass, as long as it’s the same dimensions of a bottle of wine.
While bottom-mount freezers are a trend, LG offers a model with a bottom-mount freezer and a convertible “freezer-to-fridge” drawer above it, which offers
a soft setting. “It’s a safe way to thaw out meats,” Lee
explains. “Or if you like your ice cream a little softer, it’s
easier to serve than twisting your forearms to get it out.
That convertible drawer has done really well.”
Sustainability may not be a driving decision behind
a purchase, said Lee, but it is a consideration. LG offers
vertical cooling so a unit can spot cool, rather than
turning all the vents on at once. “These things are not
primary messages that immediately resonate, but it
On some fridges, LG has a Blast Chiller feature that
helps customers understand there are other innovacan cool a can of soda or beer in less than
tions,” Lee says. “Chilling wine is cool, but at the next
five minutes.
level you’re going to see energy efficiency.”
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The Connected Dashboard
12V CORNER
Ted Kritsonis
At one time, the 12V business was all about audio. Today,
it’s driven by the increased connectivity options offered
by vehicles and the mobile devices that can interface with
them. That evolution continues, with the game changing
every year.
Only five years ago, the iPod was the centre of the connected car experience; but that now seems like a long
time ago. Now Apple’s iconic music player is in decline.
The company sold 42.6 million iPods in fiscal 2011, down
22% from 2008, when iPod sales peaked.
During the same period, iPhone sales have boomed, going from 11.6 million units in fiscal 2008 to 72.3 million
in fiscal 2011. In the first quarter of fiscal 2012 (October
to December, 2011), Apple shipped 37 million iPhones. To
date, Apple has sold 183 million iPhones.
Of course, the iPhone isn’t the only platform enjoying
massive growth. In a six-month period in 2011, Google’s
Android mobile operating system doubled its user base
to 200 million. Smartphone ownership increased 13%
between August and December 2011, and more than
one-third of Canadians now own a smartphone. Android’s
share of the Canadian smartphone market is around
one-third. Struggling, but still not out, is RIM, which saw
declines in 2011, but will launch new BlackBerry 10 smartphones later in the year.
Android Takes Off
With numbers like those, it comes as no surprise that the
smartphone is becoming the central piece of connectivity
in the car.
“The compelling value to the customer is the fact that
their smartphone has now become the centre of their
media and communication, wherever they go,” says
Cory Mountain, Product Specialist at Alpine Electronics
of Canada Inc. “We see this integration in every aspect
of their lives, at home, work and school; so the ability to
have these apps and media available to them in-car is a
natural progression.”
Though iPod connectivity is still in demand, consumer
needs are changing. Streaming media is one example,
Mountain says, and it will only grow in scope, moving
from audio to high-quality video through platforms like
Netflix, YouTube and Vimeo. Smartphone data connections, be they 3G or LTE, are the biggest enablers of this
functionality, he adds.
While iOS devices are driving adoption for many consumers, Mountain is optimistic about Android’s prospects
for in-car connectivity, because of how much of the
market it has captured so far. With the constant evolution
taking place, customers will want the ability to tailor their
device to their own needs and wants, he says.
“Although iOS has done a great job, they’ve limited
their users and developers by not allowing it to be open
source,” Mountain states. “Android has been able to capture marketshare because of that. It has allowed a much
more diverse blend of apps, with the possibility of many
more in an open format. It’s pretty amazing to see how
Android has been adopted in so many shapes and forms,
even outside of the phone and tablet world.”
Some manufacturers are looking to embrace the operating system and apply it to dashboard units. Parrot’s Asteroid is one such product. The single-DIN deck uses a highly
customized build of the Android OS so that certain apps
can work on its 3.2” display. Native apps include Google
Maps, Internet radio, traffic, weather, and others. This is on
top of the fact the device allows for voice activation to control USB-powered and Bluetooth devices connected to the
unit, like a smartphone or SD memory card, for instance.
As with other Android devices, users can download apps
to the Asteroid. A significant difference is that Parrot vets
the process, which means Asteroid isn’t quite as open. On
the other hand, it displays album artwork for songs, and
uses a layout that appears to be app-centric. And while
it can connect to the Internet to bring in the information
Overview
• More than one-third of Canadians own a smartphone. Many of them want to use these devices in their cars.
• Major 12V vendors now offer iOS and Android apps for streaming music to the car’s audio system; and
some have products that let users run mobile apps from the dashboard.
• Remote-start and 12V security vendors have mobile apps that let users start the car, close windows and
doors, and monitor vehicle movement.
it displays onscreen, doing that requires a connectivity
source, like a 3G USB stick or a smartphone’s data plan.
What may help clarify the Android platform and its
growing ecosystem is the migration to version 4.0 (“Ice
Cream Sandwich”) this year, which will be the first time
that Android smartphones and tablets run on the same
OS. By having more devices using the same software,
fragmentation diminishes significantly, leading to more
sales and install opportunities, says Tony Dehnke, who
owns Driven Audio in Abbotsford, B.C.
“We haven’t seen as many Android users come into the
store wanting to do more advanced things, but we’re at
least starting to see it more,” says Dehnke. “Android fragmentation was always a challenge, because you can have
two phones running slightly different versions; but only
one might work with a head unit.”
Dashboard Apps
Andrew Murphy, Director of Marketing at Pioneer Electronics of Canada Inc., predicts that demand for smartphone
integration will escalate over the next 12 months, as
consumers look for ways to integrate popular apps into
head units.
“The right apps have the ability to open up smartphone
integration with the dash, and really become part of
the driving experience, like the CD was years ago,” says
Murphy. “Our AppRadio platform works with five different
models in our line. We also create APIs for other apps to integrate within our product. Through that, we’ve worked with
a number of navigation companies, like MotionX for iPhone
and Waze for Android. As we bring these in, we create a
new user interface for them that’s meant for the car.”
Waze is a new navigation app that takes crowd-sourced
traffic information and provides live guidance, taking into
account conditions other users are experiencing at that
time. It also offers turn-by-turn directions with spoken
streets names in many major cities. It’s available for both
iOS and Android, and is entirely free to download and use.
Pioneer’s SPH-DA100 and SPH-DA02 are specifically designed for smartphone integration. They use Pioneer’s proprietary AppRadio application to bridge the gap between
third-party apps and the unit. The hardware includes the
ability to pinch and zoom content using the capacitive
display, plus metadata support for a wide range of music
apps, beyond smartphone makers’ default apps.
The company’s AVH-P8400VH has similar capabilities,
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12V CORNER
Parrot’s Asteroid can run Android apps like maps and weather using the detachable jog wheel. The Asteroid connects
to the Net through a 3G USB dongle or Bluetooth tethering with a compatible smartphone. Users can make handsfree calls, and access music from an iPod, iPhione, USB drive, SD card or Bluetooth device by voice.
but it’s a full CD/DVD/AV in-dash unit. “In the first six
weeks after we introduced it, demand for this product far
exceeded our expectations,” Murphy says. “This really reinforces that consumers are placing a high priority on the
overall user interface with their phone.”
Mountain agrees, noting that Alpine has also seen the
advantage of supporting multiple platforms, and now
offers audio control ability over Android and BlackBerry
as well as iOS. In addition, Alpine also added AVRCP to all
of its Bluetooth head units, so that drivers can wirelessly
stream audio from any device, use the unit’s playback
controls and have metadata and other information show
on the head unit’s display.
“For three of our media stations this year, we will have
an update available in the latter half of 2012 that will unlock further capabilities in terms of App mode and streaming audio sources from your smartphone,” Mountain adds.
“This will encompass things like YouTube, Slacker Radio
and more. Although simply listening and viewing these
apps is already achievable, we’re going to step up the control and user experience with these apps via this update.”
Mountain wouldn’t reveal much more, but he laments the
continuing absence of Pandora in Canada, which he says
would be an ideal fit for these head units. The U.S. subscriber base of the popular Internet radio streaming service
has already topped 100 million. But is still shut out from
Canada because there is still no agreement with SOCAN
(Society of Composers, Authors and Music Publishers of
Canada), which oversees music licensing rights in Canada.
The OEM Connection
Kenwood is taking integration in a different direction,
offering an interface module that lets its latest navigation
head units connect to OEM systems. But the company is
also offering more options for connectivity with Android
and iOS devices.
At its Canadian dealer shows earlier this spring, Kenwood demonstrated a module from Montreal-based Auto-
Cory Mountain, Product Specialist,
Alpine Electronics of Canada Inc.: “The
smartphone has now become the centre
of customers’ media and communication, wherever they go; so the ability
to have apps and media available to
them in-car is a natural progression.”
motive Data Solutions (ADS) that lets 2012 Kenwood DNX
navigation head units connect to Ford’s SYNC system. The
iData-link Maestro RR is expected to be available before
the end of Q2, says Francisco Lacey, Assistant Manager for
Marketing and Product Training at Kenwood Electronics
Canada Inc.
“This gives the consumer a truly integrated experience of
the original SYNC audio system,” Lacey explains, “along with
an advanced Garmin navigation system with Kenwood’s
user interface. It’s a Kenwood exclusive for 2012; and other
brands of vehicles will be added throughout the year.”
Lacey goes further, suggesting that this is just another
addition to a lineup that already includes an App mode for
iPhone users, which is compatible with over 20 Kenwood
in-dash units. Lacey also touts Kenwood’s Android app
called Music Control, which works on over 14 models of
in-dash CD/USB receivers. Much of this is part of the focus
of the company’s 2012 lineup, he adds.
From a retail perspective, Driven Audio’s Dehnke admits
he’s a little bearish on consumer uptake. Some consumers aren’t fully aware of what’s possible, while others have
higher expectations. “The biggest thing they want to do is
use their phone as their navigation device,” he elaborates.
“But the type of interface that they’re looking for is beyond
what we as an industry are really offering.”
Dehnke points out that there is progress in aftermarket
manufacturers’ latest offerings. But customers are looking for
a highly integrated experience; and that is proving difficult to
deliver, especially considering that more and more consumers are exposed to advanced OEM infotainment systems.
“It’s a multistep process to even initiate voice dialing
on a phone from a lot of the source units we have right
now,” he says. “People are used to the iPhone’s interface
for making calls. As an industry, we’re forcing customers
to break the law in order to initiate a voice call, which is
one of the reasons people come into stores asking about
Bluetooth connectivity.”
Dehnke believes this multistep process on aftermarket
Andrew Murphy, Director of
Marketing, Pioneer Electronics of
Canada Inc.: “We’re at a point now
where retailers are going to have to
look at investing in displays that are
suitable for the next generation of
car electronics.”
systems deters some consumers from embracing a further
connected experience. And while they may be more
inclined to give some latitude to OEMs, consumers aren’t
likely to be as forgiving to aftermarket manufacturers, who
are supposed to offer specialized solutions.
But he also points to consumers’ lack of knowledge and
education as a factor. “A lot of people don’t know the bigger picture of what they can do with their phones in their
car yet,” he says. “We talk to people and tell them about
TuneIn radio and things like that, but they’re not always
familiar with it.”
Randy Shipperbottom, 12V Manager at East Hamilton
Radio in Hamilton, ON, agrees that consumer awareness
needs to be addressed, particularly since the demographic
in his store has shifted from the 18-25 range to 30-to-50year-olds. Those consumers are buying more smartphones
and tablets, have more disposable income and tend to have
a wider range of needs and requests, Shipperbottom says.
“We tell customers it’s one thing to have an iPad on your
lap with headphones in the backseat,” says Shipperbottom.
“But we can offer something better by mounting it on a
headrest and integrating it with a factory or aftermarket
system. I think most people who have an iPad don’t have
a clue they can utilize it in the vehicle. But on the bright
side, we’ve seen higher demand for it lately.”
With the decline of the “boombox car” comes a greater
level of acceptance over how the audio is passed through
in the car. Wireless and FM modulation usually degrades
fidelity a couple of notches; but using a wired connection
via an Aux-In or proprietary iPod cable offers something
more decent, even if it’s not up to the standard of a CD.
“A lot either don’t notice it, or don’t care,” Shipperbottom
elaborates. “An overwhelming number of our customers
walk into the store holding the device they want to inte-
Kenwood’s DNX-series audio-video-navigation systems
can connect to the Ford SYNC system through an interface module; support for other OEM systems will be
added in 2012, Kenwood says. The DNX6900HD
features a Garmin navigation system, Navteq traffic
updates and Bluetooth speakerphone. It works with
Kenwood’s Music Control app for iOS and Android.
Randy Shipperbottom, 12V Manager,
East Hamilton Radio: “An
overwhelming number of our
customers walk into the store holding
the device they want to integrate in
their vehicles, but they don’t always
know what’s possible or available.”
Tony Dehnke, Driven Audio,
Abbotsford, BC: “The biggest thing
people want to do is use their phone as
their navigation device. But the type
of interface that they’re looking for is
beyond what we as an industry are
really offering.”
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12V CORNER
broader view that encompasses all of the aftermarket. Despite the advances OEMs have made with in-car connectivity, their design cycles are too slow for the rapid evolution
of smartphones and the technologies that enable them,
Lacey believes.
“There’s always pressure to have the latest and greatest functionality for every feature on the receiver side,”
he elaborates. “But in this respect, OEMs aren’t as flexible
as the aftermarket, which can bring solutions to market
faster, and offer better support at retail and vendor level.”
Pioneer’s AVH-P8400 double-DIN DVD receiver has AppRadio functionality, allowing users to operate iOS apps
like contacts, calendar, maps and navigation from the
receiver’s 7” touchscreen.
grate in their vehicles, but they don’t always know what’s
possible or available.”
He goes on to say that the leveling off of portable Bluetooth devices has been met with an uptick in aftermarket
decks that offer built-in Bluetooth, adding that those
outsell non-Bluetooth ones by a significant margin now.
Start Me Up
Smartphone integration is becoming important for other
aftermarket 12V products, such as backup cameras and
remote-start systems. The move from analog to digital
means that the black box used to interface with the car’s
onboard computer is now in the main boards, notes Alex
Rinaldoni, Vice President of Marketing at Directed Electronics Canada Inc. With the company’s latest SmartStart
devices, this translates to quicker installation, greater flexibility, and the ability to arm and disarm from smartphone
apps, Rinaldoni says.
“Once you have one of these remote-start products, this
will enable you to start your car with a Bluetooth-enabled
smartphone or iPad,” he explains. “With SmartStart 3.0,
we’re looking to do more than just remote start. By connecting it to the OBD-II port, it can give you all the DTC
codes, to give you a diagnostic report, plus control things
like rolling up a window and popping the trunk – all from
a smartphone or iPad.”
The 250 series can also track a vehicle with an app, and
includes geo-fencing capabilities with push notifications
for alerting the owner about unauthorized movement. Directed also made it a point to support all four major smartphone platforms, as opposed to just iOS and Android.
The second element is a partnership with Alarm.com,
which will add home control via a special radio that interfaces with an existing residential or commercial security
system. “Arming the alarm using the SmartStart app,
providing access to real-time video on an iPhone or iPad –
that’s the kind of stuff we’re working on these days,” Rinaldoni says.“Since 2010, it’s been our main goal to integrate
security for the car and home. We want 50 per cent of our
sales to be driven by SmartStart products.” Rinaldoni maintains OEMs that have been slow to adopt more advanced
remote-start capability, giving his company a leg up.
Kenwood’s Lacey sees it the same way, but takes a
Directed Electronics’
SmartStart devices can
communicate with iOS and
Android devices running the
SmartStart app. Users can
open and close windows,
start the car and open the
trunk from a mobile device.
And the 250 series has
capabilities like geo-fencing
and push notifications of
unauthorized movement.
Show it Off
Pioneer’s Murphy agrees; but he also sees an opportunity
to improve the messaging and customer service experience
at the retail level. Advances in product have to be matched
by advances in the way the products are demonstrated and
displayed, and by expertise of retail staff, he says.
“Most retailers are having some difficulty making space in
their display boards for the increasing number of double-DIN
head units,” Murphy observes. “We’re at a point now where
retailers are going to have to look at investing in displays
that are suitable for the next generation of car electronics.”
For starters, he says it’s imperative that retailers have
leading-edge smartphones on hand in their stores, and
spend time on comprehensive demos, so that customers can
understand the nuances behind the integration. “It’s often
not simply a case of plugging it in and having a million apps
working perfectly in the vehicle,” he says. “There are a lot of
factors involved when it comes to interfacing with apps.”
Driven Audio’s Dehnke views it in the same terms, but
argues that the industry is stuck on an annual release
schedule centred around the Consumer Electronics Show
in January, while retailers don’t see product till months
later. “The reality is that the marketplace is changing at
a different rate,” he says. “Aftermarket manufacturers are
still developing on proprietary closed platforms with their
own boards and operating systems, whereas Android is
an open platform that is evolving more rapidly than all of
them combined. As an industry, we need to walk at the
pace that Apple and Google have set.” mn
Automobility Holds 12V Dealer
Show in Montreal
It may have been “CES” for short, but it didn’t happen in Vegas. Hosted by Automobility Distribution Inc., the
Canadian Electronics Show was a purely 12V affair, which took place in Montreal on April 18. It was the first
time the company had hosted a tradeshow, and over 200 attendees from across the country came to take in
the latest from about two dozen vendors.
Coordinating the event was Mike Berger, Director of Sales and Marketing at Automobility. “We were originally
going to do three events: one in Montreal, one in Toronto and one in Alberta,” Berger explains. “But we decided
it would be better to bring everybody here instead. A lot of our customers think they can’t do something because it’s not a traditional install; and so they turn that consumer away. Without the manufacturers’ assistance
at our show, we wouldn’t be able to present the available options and show how to integrate them into existing vehicles.”
Connectivity was a big part of what was being displayed and discussed on the show floor. From Directed
Electronics’ new remote-start system to Brandmotion’s Curb Alert sensor and Mobileye’s driver safety platform,
there was a range of devices and services offering compelling takes on connectivity options in the vehicle.
“The manufacturers we partner with have realized that they have to integrate more with the OEMs and not
fully replace them,” says Berger. “What you put in has to mimic what that original factory piece did, plus add
the features the customer wants. OEM options for collision avoidance, overhead video and headrest video have
become standard in higher-end cars, but the customer doesn’t want to spend money on a package when he
only wants one or two features.”
Berger adds that the wide gap that existed between OEMs and the aftermarket has narrowed. And some
OEM systems, such as Ford SYNC, are forcing the aftermarket to play catch-up. As an example, he cites Rosen’s
F150 navigation unit, which was designed to integrate with SYNC and retain all its core features.
Parrot was also on hand to show off its Android-based Asteroid single-DIN deck, while Audiovox had a number of factory radio replacements that interface entirely with a vehicle’s existing steering wheel controls. Directus
and AddTV showed off solutions that add on to the existing factory screen, instead of replacing it altogether.
“In some cases, it’s the same manufacturer making for both OEM and aftermarket,” he says. “Mobileye and
Audiovox have figured out a way to harvest data from the cars, and because Android is a free OS, they can
manipulate it however they want. So they’ve opted to jump into that platform ahead of the OEMs. You can
expect to see a couple of manufacturers offer the ability to stream Netflix to headrest screens.”
Berger admits that increased connectivity could lead to potential driver safety concerns, and result in legislation that could add further restrictions to the
use of mobile devices in vehicles. He sees
driver distraction and safety solutions as the
“next big thing,” because talking and texting
while driving has become so habitual.
“Even with the laws out there, the urge is
still there to talk and text and people keep
doing it, so you can expect to see additional
systems warning drivers, like Mobileye,
which alerts drivers when a car or pedestrian are in front,” he says. “Once retailers get
customers in the store for an item like a car
starter, they can then educate them about a
backup cameras, built-in navigation, as well
Among the two dozen vendors on hand at Automobility’s Canaas connectivity products that add another
dian Electronics Show was Mobileye, who demonstrated their
component to safe and secure driving.”
driver-assistance products.
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eTailing: More Than One Way to Succeed
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Online retailing is a strange world. ‘Stores’ exist in electronic isolation. Customers shop in the privacy of their
home. Anyone can put up a digital façade, but doing retail
right is no easier in cyberspace than in the real world.
Some of the skills are new, to be sure. But others are as
old as civilization.
The market is growing rapidly. Although Canadians
are generally acknowledged to be lagging Americans in
their willingness to shop online, the growth rate is such
that these comparisons hardly matter. There’s opportunity
enough for all.
In fact, one of the oddest characteristics of online retailing is that companies large and small can rub virtual
shoulders. Regional or specialized sites can and do compete with the giants, like Amazon.ca. The key to success
seems to be, as ever, knowing the market and making
sure things go smoothly for your customer.
order, your faith in the process increases dramatically, says
Agostino. “You realize: ‘Wow. This is actually an easier way
to do my shopping.’”
There are many factors working in favour of online
shopping. With traffic getting worse and gas prices going
nowhere but up, the economics will continue to grow
more enticing. “It’s just easier for us to ship it to you,”
says Agostino. Easier, and increasingly, faster. “We’ve had
people put orders in at 5:00pm on a Thursday and get
them at 11:00am on Friday.”
The fact that the purchase is taking place online doesn’t
mean there’s no contact with the customer, and no need
to build a relationship. “We do get the ones who know
exactly what they want,” says Agostino. “But others e-mail,
and we respond. We build a rapport. The bigger-ticket
items tend to be more like that.”
Word of mouth is as important as ever. “Once we’ve sold
to one customer, we tend to get two or three more on
top,” says Agostino.
The Market
The Canadian Consumer
The idea of buying products on the Internet is still very
new, and many consumers are still building up their confidence in the process, and the technology behind it.
“Our business has been up by 30 per cent every year for
the past three years,” reports Lou Agostino, National Sales
and Marketing Manager, ElectronicsforLess.ca. “There are
more people buying online. Consumers are getting more
confident. The demographics are converting.”
“The comfort level is advancing,” agrees Guy Cino, Country
Manager, Newegg Inc. But he cautions that there’s still work
to be done. “Consumers are still somewhat reluctant to provide financial information online. They’re still testing the security.” Newegg is working to improve confidence in various
ways. For instance, the addition of Interac debit processing.
“Canadians have a preference for cash,” notes Cino.
Agostino sees the initial purchasing decision as a series
of tentative steps. “Maybe it’s 11 o’clock at night,” he suggests. “Maybe it’s Saturday night. But you feel like making
a purchase.” Okay: you find the product, check everything
twice, and click ‘Buy.’ Then you start to wonder: ‘Am I actually going to get this?’”
When that product shows up promptly and in working
eMarketer Inc. has estimated that in 2010, Canadian consumers spent $16 billion online for products and services.
This amount is expected to double by 2015.
This growth is having some interesting ripple effects.
For example, in October of 2010, Canada Post launched a
Comparison Shopper site (www.canadapost.ca/shopper).
Part of the objective was to encourage Canadians to use
Canada Post as their shipper of choice, notes Anick Losier,
Director, Media Relations, Canada Post Corporation. And
part was to encourage the evolution of online shopping in
general, which can only increase shipping volumes.
The site entices consumers with a number of features,
based on a back-end constructed by Toronto-based Wishabi Inc.. A ranking system filters over 4 million products
from 500 top retailers. “It gives you different attributes that
are very important to shoppers,” says Losier. “That includes
price, and other factors as well.”
For example, the site can take into account factors such
as return policies and customer service. And it ensures that
rated vendors actually ship to Canada. The site also applies Canada Post’s expertise in calculating an ‘all-in’ price,
estimating taxes, shipping, exchange rates and customs
by Frank Lenk
fees, as required.
Canada Post saw this venture as key to its own advancement. Canada is among the most ‘wired’ countries in the
world, observes Losier. “But we’re still lagging behind the
U.S. and other countries when it comes to online shopping.”
Lagging or not, Canada Post has seen a steep increase in
shipping of online purchases. In 2006, about 13% of total
parcels from its top 25 shippers were online purchases. By
2011 that proportion had grown to 32%, or pretty near a
third. “Those are historical types of opportunities,” says Losier.
Top online purchases early on included things like books
and DVDs. But Losier reports that Canada Post is now seeing more clothing, and more electronics. (Broad categories
are all they can track, without peeking inside the boxes.)
Cino agrees that we’re behind, but moving forward rapidly.
“The consumer in the U.S. certainly has adapted to online
purchasing at a much more rapid rate.” He cites a Forrester
Research report that saw a gap of nearly 10% in 2010-2011
between consumers in the two countries who were planning
to buy goods and services online. Also, over 60% of Canadian consumers respond that they’d like to see a product
before buying it, compared to just 46% in the U.S.
Paradoxically, though, Canadians are avid online browsers. About half of customers research their purchases on-
Overview
• In 2010, Canadian consumers spent $16 billion online. That amount is expected to double by 2015.
• There are a huge variety of online retailers in CE, from giant sites like Amazon to small specialized sites
catering to do-it-yourselfers.
• Successful e-tailing requires the same customer-service skills as brick-and-mortar retailing. But it adds
unique challenges, like Website maintenance and shipping.
Linus Sebastian, Product Manager, NCIX: “Some of our
products are very, very niche. We can access customers
who don’t have anywhere to buy them locally.”
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Parts ConneXion, based in Burlington, ON, sells electronic
components to audio DIYers in over 100 countries. The
site is owned by Chris Johnson, founder of Sonic Frontiers.
Creative Sound Solutions sells speaker drivers, subwoofer amplifiers and other components to people who want
to build their own loudspeakers.
line. But a much smaller percentage go on to buy online.
Cino sees a number of possible explanations. “In Canada,
with smaller communities, more spread out, consumers
can get to a shopping centre more easily.”
Part of it may also be a difference in national character, Cino suggests. The U.S. customer may tend to view
purchased items as slightly more disposable. Canadians,
on the other hand, are a bit more conservative. They want
to get maximum value. They may even be more willing
to splurge for a higher-ticket item, if it promises better
ultimate value. As one example, Cino notes that in the
U.S., the $299 laptop is a huge seller, whereas in Canada,
Newegg is selling a lot of laptops at over $1,000.
It put us in a pretty interesting position.”
NCIX.com operates from a head office in Richmond, BC.
In addition to the Website, it also has a steadily growing
number of retail outlets: eight in the Vancouver area, and
five in the Toronto Area. The two approaches are largely
complementary. “They’re different customers,” says Sebastian. Stores can offer personal service. The Website offers
vast selection. “Some products are very, very niche. We
can access customers who don’t have anywhere to buy
them locally.”
The recent upheavals in the economy don’t seem to be
hurting NCIX.com. NCIX.com recently opened a distribution centre in the U.S., in the Los Angeles area. “Mostly
it was just driven by customer demand,” Sebastian says.
“We’ve had the option for U.S. customers to buy from
NCIX.com for several years now. But we were shipping
from Canada.”
The NCIX site allows user reviews and comments for
each product, and has an extensive Forums section as
well. The NCIX.com YouTube channel has been operating
for about four and a half years, offering tech tips, tutorials and product spotlights. The company also maintains a
presence on Facebook and Twitter. “It’s an outreach thing,”
says Sebastian. “In this day and age, you’d be a fool to
ignore social media.”
ElectronicsForLess.ca is a homegrown site, operating out
of a distribution centre in the Toronto suburb of Richmond
Hill. The range of products isn’t quite as broad as you’d
find on Newegg, but it is sizable, covering audio, video
and a few small appliances from makers such as Breville
and Philips.
Like Cino, Agostino has a long history in Canadian electronics retailing. “I was in bricks-and-mortar retailing for 20
years,” he recalls.
Agostino agrees that having the product available to
ship, in Canada, is vital. “A lot of the companies that are
out there aren’t real companies. We actually warehouse
the stuff.” He also points out that the expansive Canadian
landscape can favour online retailing. “In the GTA (Greater
Toronto Area) there are thousands of places to buy,” he
says. But in smaller, more remote locations, the choices
are more limited.
“We sell a ton of stuff to Fort McMurray, Alberta,” says
Agostino. “Consumers who are not close to a metropolis:
they deserve a flat-screen TV. Someone in Wawa, Ontario,
they deserve an Onkyo receiver, just like anyone else.”
A lot of the site’s competition comes from Sears. Even
the product lines overlap. We do a lot of small appliances,”
says Agostino.
It’s important to note that online sites can serve more
than just the average consumer. Agostino reports that
ElectronicsforLess.ca also does a lot of work with smaller
custom installers.
Online retailing has really favoured specialized businesses. For example, the audio do-it-yourself segment has
given rise to sites like PartsConnexion.com, founded by
Chris Johnson in 2002 as an outgrowth of the previous
Sonic Frontiers mail-order parts operation. The timing was
The Canadian eTailer
Doing well online does not seem to be a matter of scale.
In this sense, the Internet may be a great leveler.
Newegg is one of the best-known electronics destinations on the Internet. It carries a huge selection of
computer, camera, gaming, and AV products, and a sizable
number of small appliances as well. Selling this stuff needs
a solid organization that understands the local customer.
Newegg maintains a 60,000-square-foot facility in the
Mississauga area, which includes warehousing, order
processing and headquarters. “Being landed in Canada
matters,” says Cino.
This is just a start, aimed at the most active segment of
the geography. “We’re taking care of the Toronto/Montreal
corridor,” says Cino. But the intention is to open more
order processing locations across the country. In the meantime, Newegg uses organizations such as Ingram Micro
and Synnex Canada to increase its reach.
Customer support is based entirely at the California head
office. But Newegg has ‘Canadianized’ staff on hand, able
to provide service in French, for example. “Our services
are seamless to the customer, regardless of location,” says
Cino. But costs are minimized. “We look for cost efficiencies by not replicating resources. That enables me to be
exceedingly competitive on price.”
Cino emphasizes that the investment in Canada has
nonetheless been significant. “We’re highly sensitive to
the fact that Canadians have some sense of loyalty to
this country,” he says. “The operation here is manned by
Canadians.” That approach starts with Cino himself. Prior
to joining Newegg three years ago, he’d worked in the
Canadian electronics retailing business since the 1970s.
In the world of computers and computer components,
NCIX.com is Canada’s 900-pound gorilla. The site has
become the go-to destination for anything from processor
chips and disk drives to complete PC systems, both namebrand (HP, Acer, Dell, Lenovo) and the Entra house brand.
The online operations of Netlink Computer Inc. date
back to 1997. The site did well partly because of its early
start. “There wasn’t that much else out there,” recalls
Product Manager Linus Sebastian. Canada’s huge geography also worked in favour of the online service. And the
computer business suited online sales perfectly. “It was
something that was not quite mainstream, not quite niche.
Operating from a distribution centre in Richmond Hill,
ON, ElectronicsForLess.ca sells audio and video equipment, as well as some small appliances. “We sell a ton
of stuff to Fort McMurray, Alberta,” says Lou Agostino,
National Sales and Marketing Manager.
good, as the DIY market has “mushroomed in size.”
Johnson’s interest in DIY dates back to his time working in a store in the 1980s. He had a chance to see some
impressive DIY stereo systems, and got interested in the
concept. “DIY guys are so invested in the product,” he
observes. “They have more than just the love of the music;
they have the love of the craft.”
Parts ConneXion sells to over 100 countries. The mix is
roughly 25% international sales, with the remaining 75%
split more or less equally between Canada and the U.S.
Business is driven by “one print ad” that Parts ConneXion
runs in an audio magazine, plus banner ads on about 10
online forums. There’s also a newsletter that comes out
roughly once a month. Johnson notes that this could be
expanded as a blog or Twitter feed, but he’s keeping busy
enough that these things tend to get put off.
“We had our first Website up in 1995,” says Johnson. But
the current Parts ConneXion site dates back to just 2008,
originally as static pages that required orders to be called
or faxed in. The site now uses a back end based on Simply
Accounting software, with vertical-market enhancements
by one of the software firm’s recommended Canadian
developers.
This was arrived at after what Johnson calls a “costly
false start.” But that effort has paid off as a learning experience, allowing the current site to be built more quickly and
effectively. “It’s daunting,” says Johnson. “You don’t know
what you don’t know.”
Getting a site built is only the beginning. “You have to
have a mechanism in place to update the content,” says
Johnson. Currently, he has one person in-house working
on this. But he could easily use another to work on blogs
and other types of material. “We are putting up a tremendous amount of content on a daily basis.”
Johnson has been looking at a further upgrade to the
site. He’d like to have a shipping calculator, but even more
important would be realtime transaction processing. Currently, orders have to be assembled and then verified with
the customer. “I want to have the ability to tell people if an
item is in stock, out of stock or, if it’s a special-order item,
what the status is.”
The site’s selection runs from nuts and bolts, to diodes
and rectifiers, to vacuum tubes, to complete items like
$900 Burson headphone amplifiers. Johnson would also
like to get back into kits. His Assemblage kits were extremely successful in the late 1990s, so he knows there’s a
receptive audience. “We could be 50 to 100% larger,” he
estimates. However, he doesn’t want to be involved in the
manufacturing, this time round. “We would design the kits,
but have them manufactured in China.”
Bob Reimer operates a more specialized DIY site. He
founded Creative Sound Solutions in 2002, turning what
had been a hobby since the 1960s into a business. Today,
Abbotsford, BC-based CSS sells a range of speaker drivers,
subwoofer amplifiers and other components of interest
to the audio do-it-yourself enthusiast. “I cater to the DIY
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RETAIL TIPS
loudspeaker community, and have also had small OEM
clients,” Reimer says He adds that OEM is an area he
particularly hopes to expand, particularly with the range of
products he classes as ‘CSS Next Generation.’
For its first three years, CSS sold largely U.S. and U.K.
products into Canada. But Reimer also gradually moved into
importing items from China. “In 2005 I had my first batch
of loudspeakers built under the CSS brand name,” recalls
Reimer. “I license a number of trademarked technologies,
and have had speakers built in England, Taiwan, China and
the Philippines, though the majority were built in China.”
“We’re working on a new line of sub kits,” he adds.
These will use an 18” Italian driver and an Italian amp with
DSP capability.
Over the years, CSS has worked with “distribution points”
in Quebec, Germany, the U.K., Sweden, Finland, Australia,
Hong Kong and Japan. The company continues to deal directly with overseas customers, though Reimer notes that
he’d prefer to shift this business to dealers and distributors.
Reimer remains a DIY enthusiast. “If people do their
homework, really get into what’s available, they’re going
to get a better product than they’d get from a Future Shop
or a Best Buy,” he says.
However, Reimer notes that dealing with manufacturers
in China can be frustrating, of late. “The Taiwanese perfected this whole business of ‘downcosting’.” He started seeing
this even while working in the PC business, in Waterloo,
ON. “We’d order a bunch of motherboards. Then HP, or
Dell, would lower their prices. So we’d go back for a lower
price. They never said no. They’d just make it cheaper.”
This makes it hard to source really high-quality components, and to convince customers that they’re worth it. “So
much of the home-theatre stuff is really very, very cheap,”
Reimer observes.
Being versed in the Canadian market is a marketable
skill in itself. Handling customs and brokerage for other
businesses has become a significant part of Reimer’s valueadded. “People building speakers, or doing custom installs,
are willing to pay me a small fee for handling the border,”
he says. However, he worries that the border may become
even more troublesome with upcoming U.S. regulations.
When you’re retailing online, of course, your Website
is your storefront. CSS has taken a minimalist approach.
The company’s current site was built by Reimer’s son, who
does Web design work in the Kitchener area. Payments
are handled by InternetSecure, in Oakville, allowing CSS to
accept either Canadian or U.S. dollars.
While the site has served him well, Reimer notes that
he has been talking with other experts about possible
upgrades. For example, CSS currently doesn’t offer a
Bob Reimer, Creative Sound Solutions: ““If people do
their homework, really get into what’s available, they’re
going to get a better product [with a DIY speaker] than
they’d get from a Future Shop or Best Buy.”
To serve Canadian customers, Newegg has a 60,000-square-foot warehouse in Mississauga, ON.
shipping-cost calculator. This tends to make the ordering
process a bit less automatic than it could be.
At the other end of the scale, Newegg operates a huge,
elaborate site, which tries to be a complete resource base
for shoppers. For example, Cino emphasizes the value-added of Newegg’s extensive user reviews, which allow customers to ‘see’ a product online. “We’re working hard on our
reviews,” he says, adding that it’s important to keep them
honest. “We leave the good, the bad and the ugly. From our
point of view, the manufacturer needs to be accountable.”
Cino notes that customers can get a broader range of opinion from its online reviews than they might at a traditional
retail outlet. “They’re able to learn about the whole experience, including overall customer satisfaction,” he points out.
Delivery
One way that online retailing diverges from traditional
bricks-and-mortar is the reliance on delivery, possibly of
large items, and often over large distances. Shortening
delivery times has been an important factor in building
acceptance of the online shopping model.
“Speed of delivery is something that Newegg is still
working on,” says Cino. He estimates that about 70% of
orders take no more than 48 hours, with most completed
in 24 hours or less.
Cino notes that shipping is definitely more costly here
than in the U.S. He sees rates within Canada gradually
becoming more competitive, but observes that the country
is still served mostly by just a handful of carriers: Purolator,
UPS, FedEx and Canada Post. In the U.S., by comparison,
there’s a much larger choice of smaller, low-cost carriers.
“The total number of options is smaller here,” says Cino.
And yet, distances here are also much larger. Nonetheless, Newegg.ca is finding ways to get the product out in
a hurry, and at low cost. “We can offer free shipping on a
huge number of items,” says Cino.
Agostino agrees that shipping is a major concern for
online retailers. “There are risks when you ship,” he warns.
“There’s a lot of fraud out there. And we pay for it.” Nonetheless, ElectornicsforLess.ca has it more or less down to a
science. “The percentage of delayed deliveries is very low,”
says Agostino. “If you order in Ontario, chances are you’ll
get it the next day before 11:00am.” In Ottawa or Montreal,
ElectronicsForLess.ca can typically deliver within 24 hours.
Agostino admits that bulky items like TVs or furniture
can take a bit longer. But using services like Purolator or
UPS, customers can at least track their shipments. “You get
an e-mail confirmation and tracking number, so you can
follow your package.”
ElectronicsforLess.ca also goes to some trouble to moderate shipping cost to the consumer. “We do a lot of stuff
with free shipping,” says Agostino, “or with subsidized shipping, where it costs me $80, and the customer pays $30.”
Sebastian agrees that shipping costs in Canada are
a concern. “It’s a significant addition to your order,” he
admits. “There isn’t really a magic bullet. It’s a populationdensity thing.” And, he points out, it affects not just online,
but also traditional retail. In the end, products have to be
moved to all parts of a very large country.
Related to shipping is the issue of returns. Newegg offers
various contact methods when support is required: 24x7 live
voice chat, e-mail, regular mail or telephone. But ultimately,
a return may be needed, and when it is, it has to be handled
smoothly, in order to build trust. “Hassle-free returns would
certainly be the first order of business,” says Cino.
“Ninety-nine percent of the time, the expectation is met,”
says Agostino. But there’s always that one. The worst-case
scenario might be someone who ordered a 65” television, then discovered it has a high-gloss screen when he
expected matte. There’s no resolution short of a return,
and that means a big shipping expense. Agostino takes a
philosophical attitude. “I’ll swallow that,” he says. “It’s only
one out of a thousand.”
To some degree, the problem has been simplified
as manufacturers have increased their own support to
include in-home service. Smaller appliances will often be
replaced within 48 hours. “That’s taken the pressure off,”
says Agostino.
“On other items, we’re going to help a customer out,”
he adds. That follow-through is particularly important with
online relationships, where bad experiences can quickly
be trumpeted throughout cyberspace. “The Internet makes
you honest,” Agostino points out.
Conclusion
What we’re hearing from online retailers is that it’s a fledgling business, with lots of room for growth and plenty of
things to learn. But the core of it is helping customers find
what they’re looking for, and ensuring they’re happy with
it when they’ve bought it.
Is online retailing going to take over? Agostino doesn’t
think so. “I don’t think bricks-and-mortar is ever going to
die,” he says. People like to see and touch a product, and
have someone help them understand the features.
“We’re here to supply people who can’t have that,” says
Agostino, “people who aren’t near a store, but want a 70inch Sharp TV. Or something like an Onkyo 5009. That’s
a $3,200 receiver. It’s not going to be at Future Shop. And
you don’t want to wait two weeks while someone orders it.”
Of course, it always helps to be in a business you know
and love. “I’ve been doing this for 25 years,” says Johnson.
“It’s best to focus on the things you know you can do better than anyone else.” mn
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by Wally Hucker
Got a retail story that should be told? Contact Wally Hucker at: whucker@marketnews.ca
TORONTO’S KROMER RADIO
CLOSING AFTER 55 YEARS
Kromer Radio, a fixture on Toronto’s consumer electronics scene since 1957, will close up by July 31 at the latest.
“We wanted to retire at the top of our game,” said General
Manager Mark Stoakes, a veteran of 33 years with the
independent retailer.
“There are no financial issues whatsoever,” Stoakes told
Marketnews.“Kromer Radio has done business honourably
and with class for 55 years, and we’re not changing that
today. Suppliers will be paid and employees will be well
taken care of.”
The sole-location shop on Bathurst St. north of Dundas St.
W. employs 28, Including Stoakes and founder-owner Paul
Kromer.“We’re looking to merge our wholesale division with
another company,” said Stoakes. That unit has five employees. Stoakes himself will retire from CE retailing, although
he noted that numerous Kromer Radio employees with
more years in CE retailing than himself will stay in the game.
Paul Kromer will also retire for good, after several years of
reduced participation in day-to-day operations.
Kromer has sold the building to RioCan Real Estate
Investment Trust, which has also purchased a number of
neighbouring properties. No announcement has been
made yet of plans for the properties, but RioCan is one
of the country’s largest retail landlords. Its top 25 tenants
include purveyors of CE ranging from Walmart, through
Canadian Tire, Staples, Future Shop and Best Buy, Shoppers
Drug Mart, Zellers and The Bay/Home Outfitters, The Brick,
and Sears Canada. Number eight on its list is Target.
Stoakes said that June 30 is the tentative date for closing
the doors to the public.“But we have some padding,” he
added,“as it will probably take longer to wind down, and
we can remain open until July 31.” Stock will continue to
be brought in, he said. Kromer began conducting a closing
sale on May 24, the day of the announcement.
Paul Kromer started with a hole-in-the-wall car radio sales
and installation shop several blocks north at Bathurst and
Harbord St. He recounted to Marketnews on his business’s
50th anniversary how he had no installation bay, and had to
park cars on the street while he worked upside down installing heavy vacuum tube radios balanced on his forehead.
Often streetcar operators would complain to the police that
these cars were blocking the stop, so an employee would
have to move them, driving them around the block with
Kromer still completing the installation. Look for a retrospective of Kromer Radio in the July issue of Marketnews.
MANAGEMENT CHANGES AT FOTO SOURCE,
VETERAN RETAILER ACTING PRESIDENT
As reported on marketnews.ca, Foto Source Canada quietly
made management changes earlier this year, resulting in
veteran photo retailer Don Spring being appointed Acting
President, effective March 19. Harris Korn had been its
president since mid-2010.
“Foto Source had a change in management,” was
Spring’s calculated reply to Marketnews’ questions about
the situation at the Oakville, ON-based cooperative buying
and marketing group,“and in mid-March asked me to step
in as President while determining its needs going forward.”
Korn was the fourth president in Foto Source’s history,
being contracted to the position upon the retirement
of John Crewson after 11 years in the position. Major
initiatives under Korn’s direction included Foto Source’s
first-ever national television ad campaign, starting in
November 2011. He also hired the group’s first full-time
buyer, Tony Pakiyanagam, who came to Foto Source with
eight years experience in the photo industry, split evenly
between Amplis Foto Inc., where he was a buyer and
brand manager, and the Black’s organization.
Currently, Korn is listed on Linkedin as “President &
Founder – App Development & Management Consulting
at Xpressions Inc., a Smartphone App Development &
Management Consulting firm.”
Spring, who was a founding member of Foto Source
in 1980, and its chairman for eight years in the 1980s,
owns and operates Cavalcade Color Lab Foto Source, in
Huntsville, ON. The store has been a recipient of the CITA
(Canadian Imaging Trade Association) Retailer of the Year
Award.
“During the next few months,
Foto Source will make management decisions on its directions,
and about who will head up the
organization,” Spring told Marketnews. At a meeting scheduled
for the end of May, Foto Source’s
board was to discuss future
directions for the cooperative,
and perhaps select a permanent president. Meanwhile, said
Spring,“I’m at Foto Source to
continue to grow the membership, grow the corporation, and
run it accordingly.”
LONDON DRUGS EQUIPPING SALES STAFF WITH IPADS
By early June , sales staff at all 74 London Drugs locations
will be carrying iPads. The devices are being brought in as
a way to provide a heightened level of customer service,
explains Wynne Powell, President and CEO of the Vancouver-based chain.
“We have the right prices and highly educated staff in
our stores,” Powell states,“so this new ability to see firsthand information during the purchase decision further affirms this superior service commitment to our customers.
Providing access to open information allows the customer
and our staff to engage in a fully knowledgeable discussion about a product, with the aid of online research at
their fingertips.”
With the in-store tablets, customers will be able check
out real-time information on a product, make price comparisons, read third-party reviews and even scan QR codes
for item-specific information.
Additionally, the retailer has partnered with Bazaarvoice
to let shoppers create and share product ratings and provide reviews; and ask questions and give answers about
products, on its Website.
As for the staff, they will be also able to use the iPads to
connect with customers through the company’s social media channels, including its Urban Lifestyle, Health, Beauty
and Nerd blogs, as well as store-specific Twitter, Facebook
and Google+ accounts.
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NEW MONIKER CANTREX
NATIONWIDE GROUP ADOPTED
Mike Bittman, Vice President of Consumer Electronics and
Photography for Cantrex Nationwide Group Inc., says the
group’s members will now benefit from Nationwide Marketing Group’s economies of scale.
In officially announcing its purchase of Cantrex Group Inc.
from Sears Canada, Nationwide Marketing Group, LLC,
has sprung the new moniker of Cantrex Nationwide on
the Canadian retailing scene. Canadian operations will
continue to be run from the St-Laurent, QC, Vaughan, ON,
and Vancouver.
Based in Winston-Salem, NC, Nationwide Marketing is a
40-year-old buying and market group headed by President and CEO Robert Weisner. Its $12 billion in annual retail sales from 3,000 retailers will be augmented by Cantrex
Nationwide’s $2 billion yearly intake. Cantrex Nationwide’s
nearly 1,000 retail outlets will now be able to benefit from
Nationwide Marketing Group’s economies of scale, says
Mike Bittman, Vice President of Consumer Electronics and
Photography for Cantrex Nationwide Group Inc.
Nationwide paid $3.5 million to Sears Canada for Cantrex Group Inc., an amount which was, according to Sears
Canada’s Q1 report,“equal to the net carrying amount of
specified Cantrex assets and liabilities to be sold.” The deal
closed on April 29, and was based on valuations of the day
before. Cantrex’s assets at that time were $31.3 million,
primarily composed of accounts receivable of $30.8 million. Liabilities totaled $28.4 million, composed mostly of
accounts payable adding up to $25.1 million.
Dave Bilas, another Executive VP at Nationwide, emphasized the marketing prowess of Nationwide, which operates its own television studios in Atlanta, GA. Producing
multiple versions of TV commercials for member dealers
in overlapping markets so each dealer has a unique screen
presence was one example they gave of the capabilities of
Nationwide’s PrimeTime studios. Another was the placement of large POP screens in member retailers’ stores. Nationwide has developed numerous advertising and promo
channels for its members, including Relationshops, which
zones in on smartphone shoppers, and devotes much of
its resources to social media and reputation management,
as well as Website design. For management personnel of
members with multiple retail locations, Nationwide offers
its Masters Mentor Summit training three times yearly.
The benefits flow both ways, Bilas added, citing Cantrex’s
strength in the photo retailing channel. This expertise, he
said, could be used to strengthen the position of Nationwide’s American retailers in that segment.
In other news from Nationwide Marketing Group, just
days after purchasing Cantrex, the company hired Tom
Hickman as CE Senior VP. Hickman was formerly Retail
Sales Director at Toshiba in the U.S. where, according to
Bilas, he consolidated their TV and PC divisions.
KINGSTON INDY
CLOSES AFTER 31 YEARS
As reported on marketnews.ca,
Linden Audio Video in Kingston, ON
is closing up shop. Its lease was to
expire on May 31. Partner and cofounder Ralph Lindenblatt predicted at the end of April that the way
merchandise had been flying out
the doors during the store’s closeout sales, that he and brother Randy
would wind up their tenancy early.
The pair founded their consumer electronics store in 1981.
For some time, Ralph Lindenblatt had indicated that
big-box pressure from Future Shop and Best Buy had
been squeezing independents in the Kingston area. Also
cheek-by-jowl with their store at 2776 Princess St. is a large
independent store that converted within the last year to a
Leon’s Furniture franchise, selling consumer electronics as
well as furniture and appliances.
“Audio being the exception, it’s difficult to be optimistic
for the future,” Lindenblatt told Marketnews late last year.
“Aside from the low-profit, high-volume situation which
the industry has created for itself, there always seemed to
be a new high-profit wave to catch, until now. For the first
time ever, I don’t see one coming.”
Over the years the Linden brothers’ store became one of
the crown jewels of Groupe Dumoulin under the Audiotronic banner. Dumoulin entered CCAA protection in February 2011; and by last summer the Lindenblatts had decided
that they wanted no part of any reincarnation of Dumoulin,
franchisee-owned or not. Thus Linden Audio Video became
one of the original members of the upstart Power Audio
Video Group, accompanied by other big names formerly
with Audiotronic, such as Andre’s Electronics, Bianco’s Electronic Superstore, The Power Centre, and Kawartha TV.
Lindenblatt is looking forward to traveling with his
wife, and tackling other pastimes, like auto racing, ATVing,
astronomy, history, home reno projects,“and various other
interests I haven’t had time for.”
MINI RETAIL Q&A
Name: Garth Davis
Company: Sky-Tec Electronics AVU, Yarmouth, NS
Years in this industry: 28
Hobbies: Small game hunting, outdoor sports, playing with my
18-month-old granddaughter
How did you get into this industry?
I had a background in working for local businesses and a degree in electronics from a community college. We started a
family business with C-band satellite, and then got into 12V, and then home audio and consumer electronics.
If you were not in this industry, what would you be doing?
I would be working for somebody else in electronics, and that would be no fun.
Tell us about an interesting encounter you have had in your retail business career.
A few years ago we had a run of young males coming in with $500 junker cars and buying $2,000 or $3,000 worth of audio equipment for them. Our economy here is based on commercial fishing, and some of the guys come in here dressed
pretty rough.
Our Kenwood rep Phil Smith witnessed this when he assisted at a Kenwood event in our store. A fisherman came in
straight from work in his rubber boots; but he bought about $10,000 worth of stuff from us.
Do you find tradeshows worthwhile?
They can be very worthwhile for training, if they have it, and for product knowledge. They keep you up to speed on how
things work and integrate.
What would you deem the most influential product introduction of your time?
Satellite TV was a big influence on our business. In this rural community, we’re not well served by cable, so satellite has
sparked a lot of business.
Which was the best year of your life in the industry?
I guess 10 years ago, when we did a major expansion. We stayed at the same location, but doubled our size to 7,500
square feet, which was a big stepping stone to where we are today.
Where do you see the industry going?
If you believe the reports you hear lately, the industry is in trouble. There are no margins. The market is flooded with product. It’s saturated. Nobody is making any money. The demand isn’t there like it was years ago.
You’ve got to diversify, and do what it takes to stay in business. We’re in that process now. We’ve taken on home appliances with Appliances Unlimited, and have a couple other things up our sleeve.
The manufacturers are dropping reps, and doing more order-taking over the phone and by e-mail; and that’s unfortunate. For example, Phil Smith of Kenwood was our first rep, 27 years ago, and he’s still our rep; and like many of them, has
become our friend. We look forward to seeing our reps and spending time with them, and often have them stay over or
go out to dinner with them.
We appreciate the reps’ old-school personal contact. They have insights into the industry, and what’s happening in
other shops. Their first-hand knowledge keeps us abreast of changes.
More than 4,000 people attended the 2011 edition of Profusion, Vistek’s Toronto professional photo and video expo. This
year’s show will be held June 19 and 20.
THIRD ANNUAL
PROFESSIONAL
IMAGING EXPO FOR
TORONTO CHAIN
Vistek will hold Profusion 2012 at the Toronto Congress
Centre on Tuesday, June 19 and Wednesday, June 20. This
is the third year for the Toronto-based chain’s professional
photography and videography expo, and the first held on
weekdays. The show runs from 9:00am to 6:00pm the first
day, and closes an hour earlier the second.
Vistek says last year’s attendance of 4,000 doubled that
of the debut event’s, and that over 1,200 people attended
seminars. Last year, there were over 80 vendors exhibiting
their wares. Product launches from Arri, Canon, Kino Flo,
Panasonic and Sony will be featured this year. Seminars and
workshops are being offered, along with panel discussions,
Apple training, show specials and prizes. Free tickets can be
ordered in advance at profusionexpo.com/getyourticket.
Vistek has five stores in addition to its downtown Toronto flagship and headquarters. There are two in Calgary, and
one each in Edmonton, Mississauga, and Ottawa. Vistek
claims Profusion to be the largest professional imaging
expo in Canada.
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ROGERS’ PROFIT DOWN, DUMPS VID RENTALS, ADDS SPORTS TEAMS
Media and telecom
giant Rogers Communications announced on April 25
that its net operating
profit for Q1 was
down 16% to $356
million on revenues
of just under $3
billion, and adjusted
operating profit of
just over $1 billion. Pre-tax free cash flow was pegged at
$485 million. Rogers shares on the TSX dropped almost 6%
to $36.81 after the announcement.
The company is going tighten the proverbial belt.“In the
short term,” CEO Nadir Mohamed said at the company’s
annual general meeting,“we’re addressing the cost side of
the equation.” Mohamed told AGM attendees that Rogers
plans to improve its earnings before the end of 2012, and
is looking at reducing discretionary spending and supply
costs. No job cuts were mentioned, but the company
sacked approximately 300 people in March. Most were in
management and head-office jobs.
Other Q1 highlights included 47,000 more wireless
customers, driven by a 35% increase in iPhone activations,
and a stabilization of churn. Margins in its wireless sector
are healthy at 46%. Cable-TV subscriptions were down by
7,000 in what the company termed a “seasonally slow and
competitive quarter.”
Just the week before the AGM and Q1 financials, Rogers
pulled the plug on its 93 remaining video rental stores.
Meanwhile, the company continues to secure its
growing presence in the world of bread and circuses, as
the Competition Bureau declined to challenge Rogers’
purchase of a large interest in Maple Leaf Sports and Entertainment. MLSE owns Toronto hockey teams the Maple
Leafs and Marlies, the Raptors basketball team, the Toronto
FC soccer team, and the Air Canada Centre (ACC).
Last December, Rogers and Bell Canada each bought
37.5% of MSLE from the Ontario Teachers’ Pension Plan.
For that, Rogers put up about $533 million. MSLE is the
country’s largest sports and entertainment conglomerate,
and hosts concerts and other events at the ACC.
Rogers’ strategy is to produce and own the content it
delivers as entertainment over its networks, including
Sportsnet. The Comp Bureau can monitor transactions that
may be deemed to adversely affect competition. Now all
Rogers requires, said the company, are the blessings of the
CRTC and various professional sports governing bodies.
TALES FROM THE FLOOR
QUEBEC-BASED DEPARTMENT STORE
LOSING CFO, COPES WITH CCAA
Robert Harritt, Vice President Finance and CFO of Hart
Stores, left the company on June 1 for personal reasons.
The company immediately started looking for a replacement, said Founder and Executive Chairman Harry Hart,
“and (we) wish him well in his future endeavours.”
Hart Stores had its Plan of Compromise and Arrangement pursuant to the Companies’ Creditors Arrangement
Act (CCAA) approved by the Quebec Superior Court on
February 27, two weeks after its creditors voted to accept
it. The plan provides that Hart Stores make payments totaling $6 million over three years to the monitor RSM Richter
Inc., for distribution to Hart Stores’ unsecured creditors.
Unsecured creditors could choose to receive their pro rata
share of the $6 million, or a lump-sum payment equal to
the lesser of the value of their claim or $1,000. Inquiries
were directed to RSM Richter.
As reported on marketnews.ca last August, Hart Stores
filed for CCAA protection for its 92 stores in secondary
and tertiary markets in Eastern Canada. It has since cut
the original number by over a third, and now operates
60 mid-sized department stores. Its banners include Hart,
Bargain Giant and Géant des Aubaines. They sell clothing,
family footwear, home furnishings, electronics, appliances,
giftware, toys and seasonal goods.
Two days after the court order, Hart Stores entered into a
revolving credit facility in an aggregate principal amount
of $25 million. CIBC Asset-Based Lending acted as agent
and lender, replacing the retailer’s credit with Wells Fargo
Capital Finance Corporation Canada, and will fund Hart
Stores’ operations. As security, Hart Stores granted CIBC
Asset-Based Lending a first-ranking security interest on
all of Hart Stores’ movable property, subject to permitted liens. The revolving credit facility matures on March 3,
2014.
Harry Hart founded a single store 52 years ago in
Rosemère, just north of Montreal, in what was then a rural
community. From this, the business grew into Hartco, familiar to readers as the parent company of companies like
MicroAge and MetaFore, as well as Compucentre, which
closed its doors in 2007. Hart Stores Inc. was spun off from
Hartco Enterprises in 2000 as a separate entity. It is a public
company, but shares ceased trading last August. Although
Harry Hart is also Executive Chairman of Hartco, that company is separate and unaffected by this CCAA protection.
NEWS BRIEFS
Fields discount department stores will live on, though in reduced numbers, in Western Canada. A new company, FHC Holdings Inc., has arranged to keep open 57 stores
in as many communities from Manitoba to BC, and up into the Northwest Territories.“Fields has been an integral part of many communities across Western Canada
for many years,” said company Jason McDougall.“Our team is very excited at the
prospect of serving the 57 communities in which it has acquired stores, and will work
to ensure people continue to be able to get what they need in their local communities.” Until the May 1 deal, Fields had been a part of the HBC (Hudson’s Bay Company)
empire, which decided earlier this year to shut down the chain’s 140 or so stores. A
group of investors quickly formed FHC Holdings to keep the chain going. Fields was
founded in 1950 by Joe Segal, the man who created Zellers, and who also led the
Zellers into the HBC fold.
The last Canadian one-cent piece, affectionately but not legally known as the penny,
was minted on Friday, May 4, at the Royal Canadian Mint in Winnipeg. Federal Minister
of Finance Jim Flaherty pushed a button to stamp the last coin, destined for a museum. The last million coppers (make that steel coins with a copper coating and a hint
of nickel) were to be made as special collectors’ coins. The penny costs 1.6¢ to make,
thus the push to withdraw them from circulation starting this fall. The pennies hoarded in jars and on dressers are estimated to be worth $300 million if melted down for
scrap metal. Although the coin is disappearing, the one-cent unit for commerce will
linger, probably forever, so retailers will have to decide to forgive any charges to their
customers not ending in a multiple of the five-cent piece.
“The Soundsaround stores have closed,” reported Don Parks of Westpeak Electronic
Services in Calgary on April 26. Westpeak remains the late retailer’s third-party warranty service provider. Soundsaround was to close on April 15, but held a garage sale
at its 7403 MacLeod Trail S. location on April 18.“We are still supporting anything their
extended warranty customers need,” said Parks.“The Grassis (owners of Soundsaround) have not decided anything else formally at this point on any wind-down on
support to the customers. For us, it’s business as usual with them.”
Our contributor this month is Dave Tredree of The Entertainment Centre in Cobourg, ON. Dave was our very first
contributor to Tales From The Floor.
“I reached way back for this one,” muses Tredree,“and
believe me, it wasn’t so funny at the time. In the 1970s, we
sold Lowrey Organs. A lady had been back and forth in our
shop looking at various models, and finally she settled on
quite a nice one. We delivered it around Christmas time,
and even played her a few songs to make sure she was
happy.
“A month or two later, we got a call from this lady telling
us that since she purchased the organ, she had had many
sleepless nights, because this instrument came on and
played notes during the night, all by itself. She demanded
that we come to her house and stop this thing from happening.
“I had never heard of this in my life, and just could not
figure it out. I even called the distributor to see what they
had to say. Not surprisingly, they thought I was joking.
“As promised, I went to her home and told her that I had
made an ‘adjustment’ with the understanding that she was
not to turn it on for 10 days.”
The adjustment was dead simple.“I unplugged it,”
Tredree explains.“Sure enough, a few days later she called
to say that whatever I did, it was not the solution, for during the night, it played again: no song, just random notes
for a few minutes at a time. She demanded that I fix the
problem or take it out of her house. I asked her if she had
turned it on since I had been there, and she said no, still
not knowing that it was unplugged and impossible to play
anything anyway.
“I went there that night, and it was snowy and windy.
She was furious. When she was making her tea, it started
playing again. I listened carefully, and there was a faint
sound which upon investigation seemed to be coming
from where the TV antenna was fastened to the house. As I
turned the rotor, the sound went away.
“All along,” he laughs ironically,“it had been the wind
blowing through the antenna hard enough to vibrate
it and make a sound like an organ. Of course, she didn’t
believe me, so I asked her to turn on the organ and play a
tune. She pressed the switch, but no light went on and no
music came out. Then I showed her the plug, and said it
was impossible for the organ to play without power.
“She accepted the possibility that I was right. I told her
that if it happens again, turn the rotor towards Buffalo, and
it will be OK. We never heard from her again.”
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QUESTION OF THE MONTH
The 2012 Summer Olympic Games in London, UK, will soon be upon us.
Are you planning any sales promotions or events linked to this Olympiad?
Jim Orr,
Audio Video Unlimited, Coquitlam, BC:
“We will most likely try to tie into the Olympics in our marketing. However, we will not be throwing extra
funds at it, nor expecting a rush of traffic. Even when the winter Olympics were in our own backyard, we
did not see a lift in business.”
Garth Davis,
Sky-Tec Electronics AVU, Yarmouth, NS:
“No, except Panasonic is a key sponsor of the London Olympics, and when we run our ads, their logo will
be run in conjunction with their memory cards, which have the Olympic logo on them. Otherwise, we’re
not doing anything specific.”
Don Spring,
Cavalcade Color Lab Foto Source, Huntsville, ON:
“We only have the Panasonic flavoured SD cards. As a group, Foto Source is not doing anything, although
individual members may do something.”
Kevin Kelly,
London Audio, London, ON:
“Not yet. We haven’t tied anything in so far. I do think it drives business a bit, but only seems to drive
television business. That’s a tough category to be in, and we’re mostly out of TV.”
Bob Rabbito,
Trutone Electronics, Mississauga, ON:
“No, we have not planned anything, except the Panasonic media cards. I understand that Samsung is the
official phone of the Olympics, but we don’t sell wireless.”
Kory Dutkiewizc,
Shane’s Music, The Pas, MB:
“We aren’t doing much to celebrate the Olympics, because we haven’t seen great response from previous Olympics. That said, this time we will likely see a greater reliance on time shifting hardware and
services to experience the games, which are half a day out-of-sync with North America. Anyone sitting
on the fence over a PVR may feel a gentle nudge here. Hopefully, Shaw Direct will have an external storage option available by then.
“More importantly, we may have a shift towards online viewing instead of traditional television
broadcasts. This will depend on what coverage is available online and if the providers have the capacity
to serve the market. I don’t see many people purchasing new hardware specifically for the event in our
market, but it might serve as an eye-opener when we can demo a smart TV and use time-shifted Olympic events from a Website as an example.
“It will be interesting to see what coverage is available in 3D in our markets and how it will be advertised. We all know that we don’t have enough 3D content out there, and this can only help to kick start
the content providers.”
Register to join the Marketnews Online Community at
www.marketnews.ca/register/
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LONDON DRUGS CURBS
COUPON STACKERS
London Drugs has changed its coupon stacking policies,
citing abuses by stackers buying excessive quantities of
goods for resale. Increasingly, the company has been experiencing pre-orders for case, half-pallet and even pallet
loads of goods. For products permitting coupon stacking,
London Drugs stores will now only sell shelf quantities.
“We have always reserved the right to limit quantities,”
said a company statement,“and this will be enforced.”
This change will affect the pre-ordering of mass quantities of products and the use of mass-cut coupons for
all London Drugs’ vendors for the purpose of coupon
stacking. In addition, SC Johnson Company will not permit
coupon stacking no matter what terms are shown on the
back of coupons.
“The manufacturers and London Drugs,” continued the
statement,“cannot support this excessive ordering of large
quantities, as this is not what coupons were ever intended to
provide for customers, and jeopardizes London Drugs’ ability
to get reimbursed for coupons, causing potentially large
financial losses for both London Drugs and its suppliers. ”
NEWS FROM THE
Your Tax Dollars at
Work Department
In 2009 during the height of the recession, Canada’s big
banks received $114 billion from Canadian and American
government agencies, according to Canadian Centre
for Policy Alternatives’ senior economist David Macdonald. That amount is equivalent to 7% of Canada’s Gross
Domestic Product at the time, or $3,400 for every person
in the country. This is 10 times what the government allocated to bail out the auto industry.
Macdonald’s CCPA report, The Big Banks’ Big Secret,
notes that CIBC received $21 billion, equivalent to 150%
of the company’s actual value at the time. Scotiabank received $25 billion. Macdonald says that it would have been
cheaper to buy every single share of the big Canadian
banks instead of bailing them out.
The Canadian Bankers’ Association insists that the funds
banks received were not bailouts.“These funding measures were put in place to ensure that credit was available
to lend to businesses and consumers to help the economy
through the recession,” says the CBA.“These funding
measures were not put in place because banks were in
financial difficulty.” Still, the banks managed to offload
$69 billion in mortgages to CMHC (Canadian Mortgage &
Housing Corporation).
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MARKETNEWS
Samsung intros
the Galaxy S III
Smartphone
After nearly a month of speculation, Samsung Electronics of Canada Inc. has announced that its Galaxy S III
smartphone will be available in Canada as of June 20.
Bell Mobility, Virgin Mobile, SaskTel, TELUS, Rogers Wireless, Videotron, WIND Mobile and Mobilicity will carry
the device.
The S III features a range of technology designed to
detect the user’s face, voice and motion. Smart Stay recognizes how people are using the phone (e.g. scoping out an
article on the Web), by having the 1.9MP front-facing camera identify their eyes. The phone will “see” when someone
is locked onto the screen, and remain bright enough for
him to complete said article.
S Voice uses an “advanced natural language user interface” to listen and respond to a user’s words. For instance,
someone who is using the phone’s alarm clock can tell the
phone to “snooze” to get a few more minutes of shut-eye.
S Voice can also be used to play stored songs, adjust
volume, send texts and e-mails, or even launch the camera
and take a photo.
The S III can also recognize motion. If a user is texting but
wants the conversation to take place on the phone, he can
lift the phone to his ear and the Direct Call function will
dial that person’s number.
S Beam allows files to be exchange with other Galaxy S
III devices. A 1GB movie file can be shared in three minutes
and a 10MB music file in two seconds, just by touching
one device to another; this will work with or without a WiFi network.
With AllShare Cast, a user can wirelessly connect the device to his TV, to immediately transfer smartphone content
onto a larger display. Meanwhile, the AllShare Play can be
used to share files between the S III and tablets, PCs and
TVs, no matter the distance between them.
Based on Android 4.0 (Ice Cream Sandwich), the S III has
a 4.8” HD Super AMOLED touch display and plus a quadcore Exynos processor. It offers 16GB and 32GB memory
options (64GB available soon), and a microSD slot that can
hold up to an additional 64GB. The rear-facing 8MP autofocus camera has flash and zero shutter lag, and is capable of
capturing HD video. What’s more, the phone has Near Field
Communication (NFC) capabilities and will work on 3G
and 4G networks.
www.marketnews.ca, Search News, galaxy s III
Pioneer adds five Elite SC receivers
Pioneer Electronics of Canada Inc. has announced five
new SC-series AV receivers in its premium Elite sub-brand,
all with extensive network-entertainment capability and
features for custom installers. Two 7.2-channel models, the
SC-61 and SC-63, will arrive in late June. Coming in late July
are three 9.2-channel models: the SC-65, SC-67 and SC-68.
All five receivers employ Pioneer’s Digital Class D(3)
amplification. The amplifier stages on the new receivers
use 44% less power than last year’s models, Pioneer says.
All five models have front-panel USB inputs, and come
with a USB/video cable for direct connectivity to an iPod/
iPhone/iPad. The USB port accepts digital audio from an
attached device, so that all processing is performed by the
receiver. The USB ports support playback of high-resolution files from attached devices, to 192kHz/24 bits (FLAC
and WAV).
The new receivers have rear-panel Ethernet ports, and
incorporate Apple’s AirPlay technology for wireless media
streaming from an iOS device or iTunes library. And they
work with Pioneer’s new iControlAV2012 apps for Android,
iPhone and iPad. Features of the HD iPad app include
vertical and horizontal orientation, control of music from
networked PCs, Internet radio control, and a unique finger
EQ adjust function that lets you adjust equalization by
drawing on the screen.
Other network-entertainment features include DLNA 1.5
certification, vTuner Internet radio, and SiriusXM Radio support. Optional Bluetooth and Wi-Fi adapters are available.
The five receivers also have extensive features for the
custom channel. All are capable of three-zone operation,
with Zone 2 having composite-video output, dedicated
subwoofer output, and the ability to handle network and
USB content. They are all certified to work with AMX, Control4, Crestron, RTI, Savant and Universal control systems.
The SC-61 ($1,299) is rated at 7x125 watts (1kHz). It features Qdeo video processing, including analog-to-HDMI
version and scaling to 1080p24. There are seven 3D-capable HDMI inputs, with support for audio return channel
and HDMI standby. It supports high-resolution surroundsound formats like Dolby TrueHD and DTS-HD Master
Audio, as well as Dolby Pro Logic IIz height processing.
The SC-63 ($1,499) has an aluminum front panel, and
adds features for custom installers, including PC setup with
remote maintenance.
The SC-65 ($1,799) is rated at 9x130 watts (1kHz) and
has THX Select 2 certification. It incorporates 192kHz/32bit DACs and adds DTS Neo:X audio conversion to 9.1
channels. The seven HDMI inputs support 4K2K video
pass-through. There’s also a front-panel MHL (Mobile Highdefinition Link) connector, which allows playback of highdefinition audio/video files from attached mobile devices.
The SC-67 ($2,199) is rated at 9x140 watts (1kHz) and has
eight HDMI inputs. Component-video output is available for
Zone 2; network/USB sources are available for both Zones
2 and 3; and HDMI output to a fourth zone is also available.
The SC-67 can play DSD audio files from attached USB
devices. It also features robust 3D space frame construction,
and has received certification from Air Studios.
The SC-68 ($2,499, shown here) has THX Ultra 2 plus certification. It features a rear-panel USB asynchronous DAC
that allows playback of 192kHz/32-bit files from attached
devices; this is an industry first, Pioneer says.
www.marketnews.ca, Search News: SC-67
Hitfar intros Universal
Micro USB Car Charger
with AUX USB port
Hitfar Concepts Ltd. has introduced a new addition to its
private label Power line: the Universal Micro USB Car Charger with Auxiliary USB port.
This 2.1-amp car charger has an auxiliary USB charging
port, as well as a micro USB connector that allows the individual to charge two products at once, while on the road.
The device has an MSRP of $24.99.
Hitfar also offers a universal three-in-one universal charger, a micro USB car charger, as well as universal car and
wall chargers through its Power line.
www.marketnews.ca, Search News: hitfar car charger
Apple shipped 17.2 million mobile
PCs globally in Q1 2012
NPD
62 MARKETNEWS
MNMAY12.indd 62
6/1/12 11:41 AM
MARKETNEWS
Sony unveils new Alpha and NEX system cameras
Sony of Canada Ltd. has announced an addition to its SLT
(Single Lens Translucent) line and to the NEX line of mirrorless Compact System interchangeable-lens cameras.
Sony Alpha a37: Much more compact than the Sony
a57, which was introduced earlier in the spring, the a37 will
be the new entry-level Alpha model. Arriving in June, the
a37 is smaller/lighter than the a35, which it replaces, though
with a larger handgrip. It retains the best of its predecessor,
including the built-in image stabilizer, Sweep Panorama, and
special modes for superior quality at high ISO.
Upgrades over the a35 include the following: The a37
employs Sony’s second-generation 16.1-megapixel Exmor
HD CMOS sensor and the latest BIONZ processor. That
allows for expanded ISO range (up to 16,000) and full HD
(60i/24p) video with built-in stereo microphones, a windcut filter and fast phase-detection autofocus. (The camera
also accepts an optional external stereo mic.)
Peaking manual focus adds a high-contrast outline to
subject edges to make manual focusing easier and more
accurate. This feature is available when shooting still photos, and also in Movie mode when autofocus is not being
used.
The electronic viewfinder has been upgraded; it’s now a
Tru-Finder with 1.44-million-dot resolution for an impressive display and 100% picture coverage.
The only downgrade is a reduction in the size/resolution
of the external Clear Photo LCD, to 2.6” and 230,000 dots;
however, the screen gains an up/down tilt ability.
Clear Image Zoom, with By Pixel Super Resolution
technology, has been added, to effectively double the focal
length of any lens with the Intelligent 2x digital zoom function. Cropping reduces the image size of course, but this
feature can intelligently interpolate when scaling it back up
to 16.1MP. Superior quality is obtained by comparing each
image element to a database of patterns, and adding more
detail as appropriate, instead of using simple interpolation.
A new mode, Auto Portrait Framing, can automatically
crop people pictures according to the rule-of-thirds principle of composition. When a face is identified, the photo
is cropped to a vertical with the subject’s eyes positioned
according to the rule. The cropped image is then boosted
back up to 16.1MP, using By Pixel Super Resolution technology. Both the original and the cropped image are saved
to the memory card.
The new a37 SLT camera will be available in Canada in
June with an 18-55mm standard-zoom lens for $600.
NEX-F3 Mirrorless Camera: Replacing the entry-level
NEX C-3, the new F3 is a third-generation NEX model that
benefits from features and technology developed for
other Sony cameras. It’s equipped with the new 16.1MP
Exmor HD CMOS sensor, which is also used in the a37; the
large size allows for large pixels for great dynamic range
and high-ISO quality, as well as shallow depth-of-field
when desired.
The body has been redesigned so it’s larger and features
a more prominent handgrip. In primary specifications, the
NEX-F3 is similar to its full-featured predecessor, but benefits from the newer sensor and the following upgrades:
The 3” 921,600-point LCD screen can be tilted downward
by 13 degrees or upward by a full 180 degrees. The latter
allows for the screen to swing over the top of the camera
to face forward, making it very convenient for taking selfportraits. The new self-portrait time feature automatically
provides a three-second delay when the LCD is facing
forward so the user does not need to press the shutter
release button to take a photo.
A built-in pop-up flash has been added. This eliminates
the need for the small add-on flash unit that was supplied
with the C3.
Like the Alpha a37 SLT, this mirrorless camera includes
the new Auto Portrait Framing mode and the Clear Image
(2x digital) Zoom feature, both benefiting from Sony’s By
Pixel Super Resolution technology.
Sony’s Superior Auto mode has been added; when se-
lected, the camera intelligently recognizes a wide range of
scenes and subjects and makes suitable settings instantly.
This mode can even activate the special feature that provides superior image quality by compositing several shots
of the scene and discarding most of the digital noise data.
Battery capacity has been boosted by 18% so the NEXF3 can take 470 shots on a single charge. Instead of a separate battery charger, this camera ships with a high current
USB power adapter that allows for fast USB charging from
AC power or from a computer.
The NEX-F3 is equipped with the latest version of Sony’s
Smart Accessory Terminal for connecting the optional
2.359-million-dot tilting OLED electronic viewfinder (FDAEV1S) or the external compact stereo mic (ECM-SST1).
The NEX-F3 will be available this June in black with an
18-55mm kit zoom lens for $600.
www.marketnews.ca, Search News: NEX-F3
Sony a37
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MNMAY12.indd 63
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6/1/12 11:41 AM
MARKETNEWS
New TVs, Blu-ray players from Toshiba
Toshiba of Canada Ltd. has announced two new series of
LED-edgelit LCD televisions and two new Blu-ray players. All new models are 3D-capable and have extensive
networking features.
The L6200 and L7200 series TVs have slim-bezel designs,
and employ passive Real 3D technology. To watch 3D content, viewers wear inexpensive polarizing glasses instead
of battery-operated active-shutter LCD glasses. TriVector
2D-to-3D conversion lets viewers get a 3D experience with
2D content.
The new TVs have four HDMI ports (three rear, one front)
and two USB 2.0 ports (one rear, one front), as well as
built-in 802.11 b/g/n Wi-Fi. Built-in networking lets viewers
access services like Netflix, YouTube, Facebook and Twitter.
There’s also a Web browser, allowing access to any Website.
A QWERTY wireless keyboard is included, making it easier
to enter Web addresses and search terms.
TRAC (Tablet Remote App Capable) technology enables
the new TVs to communicate with Android devices.
Toshiba’s Send&Play app lets views send Web-based
content from a tablet to the TV screen. The new TVs also
have MediaShare, a DLNA interface that let viewers access
videos, music and photos from DLNA-compliant devices
on their home network. With the SearchAll function, users
can enter keywords to search TV channels, streaming
video and the home network for related content.
Available from Future Shop, The Brick, The Source and
Toshiba.ca, L6200-series TVs feature 120Hz ClearScan
video processing. The line includes the 42” 42L6200U
($1,100), 47” 47L6200U ($1,400) and 55” 55L6200U ($1,800).
Available from independent retailers and Toshiba.ca, the
L7200 series employ 240Hz ClearScan video processing for
improved motion resolution, and have a two-way stereo
sound system with Audyssey Premium audio processing.
There are two models: the 47” 47L7200U ($1,600) and 55”
55L7200U ($2,000).
Toshiba is also introducing two new Blu-ray players with
3D capability. Priced at $120, the BDX4300 is Wi-Fi-ready
and DLNA-capable. Its MediaShare function lets viewers access content on other DLNA devices over a home
network. The BDX5300 ($150) has built-in Wi-Fi, as well as
apps for accessing Netflix, CinemaNow, YouTube and other
online resources.
www.marketnews.ca, Search News: L6200
Chief launches new freestanding video
wall solutions; ships CMSI accessory
Fusion Series freestanding wall solution
Logitech unveils the
Solar Keyboard Folio
Logitech has unveiled the Logitech Solar Keyboard Folio, a
case that works in all lighting conditions, whether indoors
or outdoors. It is designed to protect the third-generation
iPad and the iPad 2.
The Folio features solar cells to charge the built-in
Bluetooth keyboard. When fully charged, the battery can
last upwards of two years (based on an average use of two
hours a day).
The slim, book-like case has two viewing positions. It will
allow a user to place his iPad into the Folio and have full
use of the keyboard for typing. In the second position, the
keyboard’s first row acts like a one-touch media playback
area, allowing a user to instantly play, pause, and adjust the
volume.
It has an automatic on/off feature that wakes an iPad
when the Folio is opened and instantly sends it to standby
mode once the Folio is closed.
The Logitech Solar Keyboard Folio will be available in
June through Best Buy, Future Shop and London Drugs for
$129.99.
www.marketnews.ca, Search News: solar keyboard
folio
Chief is now shipping its Fusion Series freestanding wall
solutions. The company says that these new LVM mounts
make it possible to construct video walls in prominent
locations for temporary situations, or when wall mounting
isn’t an option.
These mounts are available in standard 2x2, 3x2 and 3x3
configurations and can be combined with accessories
(FCA2X1U and FCA3X1U) to successfully develop video
walls up to three displays high, and any length.
The LVM2X2U can hold displays up to 65” and 125lbs,
while the LVM3X3U and LVM3X2U are compatible with
displays up to 55” and 100-125lbs, respectively.
These products feature ControlZone micro-height and
leveling capabilities, as well as plumb and lateral shift
adjustments to simplify alignment. Fully integrated cable
management aids in a clean installation, and smooth rolling casters allow for simple positioning.
Chief is also shipping its new interactive ceiling-mounted
projector solution.
Known as the CMSI,
this accessory is said to
easily convert an existing ceiling-mounted
CMSI ceiling-mountable
projector’s image into projector accessory
an interactive display.
The system has a brushed aluminum finish, a built-in
sensor and can be mounted on the wall above an existing
dry erase board. It is powered by eBeam technology from
Luidia Inc.
The CMSI can be mounted into drywall, wood studs,
steel studs, block and concrete.
www.marketnews.ca, Search News: LVM2X2U
Personnel Appointments
Milestone AV Technologies, a designer and manufacturer of A/V products, has appointed
Steve Decker as the company’s President of Consumer Products. Decker has more than 20
years experience as an executive within the consumer electronics field.
In this newly created role, Decker will be responsible for Milestone’s consumer-oriented
sales, marketing, product development and product management efforts in the U.S. He will
also oversee worldwide consumer product sales.
Prior to joining Milestone, Decker ran a number of consumer and commercial business
groups for Kodak.
Research In Motion (RIM) has appointed Kristian Tear as its new Chief Operating Officer and
Frank Boulben as its new Chief Marketing Officer.
Tear comes to RIM from Sony Mobile Communications, where he served as the executive vice
president. Prior to that, he held operational leadership positions with Ericsson in Europe, Asia
and Latin America. With RIM, Tear will be responsible for overseeing all operational functions for
handhelds and services, including research and development, products, global sales, manufacturing and supply chain.
Boulben is the former executive vice president of strategy, marketing and sales for LightSquared. Prior to that, he was the global director of commercial strategy for Vodafone Group
and executive vice president of brand consumer marketing for Orange Group. At RIM,
Boulben will oversee the company’s global marketing efforts.
Kristian Tear
SnapAV, a manufacturer and source of more than 1,000 custom A/V solutions, has appointed
Brad Redmond as its Vice President of Operations. This is a newly created position within the
company.
Prior to taking on this role, Redmond spent 12 years at Dell, where he held numerous operations, procurement and supply chain management positions. He last worked as the company’s
business unit supply chain director, where he handled global supply chain initiatives in order
to manage inventory gaps and overages for the company’s regional distribution centres.
Yahoo! Inc. has named Ross Levinsohn, its Head of Global Media, as its interim CEO. He replaces Scott Thompson, who stepped down from the position after it was discovered that his
resume featured inaccuracies.
Levinsohn will manage Yahoo!’s day-to-day operations with assistance from its senior leadership team.
64 MARKETNEWS
MNMAY12.indd 64
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MARKETNEWS
Two new Slimline AV receivers from Marantz
Marantz Canada has announced two new models in its
SlimLine series of AV receivers: the 5.1-channel NR1403
and 7.1-channel NR1603. Like other SlimLine models, these
two receivers have compact chassis; they’re just 4” high.
The NR1403 is rated at 5x50 watts. It features a full range
of Audyssey audio processing, including MultEQ speaker
setup and calibration; Audyssey Dynamic Volume for
minimizing abrupt volume changes like excessively loud
commercials; and Audyssey Dynamic EQ for maintaining
consistent tonal balance at all listening levels.
There are six HDMI inputs (including one on the front
panel) and one output. The M-XPort on the rear panel
allows connection of an optional Bluetooth receiver for
streaming from mobile devices.
The NR1603 is rated at 7x50 watts. To the NR1403’s
feature set, it adds an Ethernet port
and a front-panel USB port. This
additional connectivity enables
a broad range of network entertainment features. These include
support for Apple AirPlay, allowing
users to stream music wirelessly
from an iTunes library on a Mac,
PC, iPad, iPhone or iPod touch. The
NR1603 is DLNA 1.5 certified, so
users can play content from DLNA devices like Windows 7
PCs and Android smartphones. The USB port allows audio
and photo playback from most attached USB devices. It
also supports iPod Digital Direct; when playing music from
an attached iDevice, digital-to-analog conversion and au-
dio processing is performed by the receiver, for improved
sound quality.
The NR1403 and NR1603 will be available in Canada this
spring, for $480 and $730, respectively.
www.marketnews.ca, Search News: NR1403
Denon announces new receivers, HTiB
Denon Canada has announced its 2012 core lineup of
AV receivers, along with a new home-theatre system. All
the new receivers can decode high-resolution surroundformats like Dolby TrueHD and DTS-HD Master Audio. They
feature front-panel USB inputs with direct connectivity of
iOS devices.
Retailing in Canada for $300, the AVR-1513 has four
3D-capable HDMI inputs and one output. It’s a 5.1-channel
model, rated at 5x75 watts at 0.08% THD. The AVR-1513
also features Audyssey Dynamic Volume and Audyssey
Dynamic EQ, which tailors sound output for program
content and listening level.
The AVR-1613 ($450) has the same power rating. But
it adds an Ethernet jack and support for Apple’s AirPlay
music-streaming protocol, and v.Tuner Internet radio. It’s
DLNA 1.5 compliant, so users can stream content from
other DLNA devices, such as Windows 7 PCs and Android
smartphones. Users can operate the receiver from an iOS
device running the free Denon Remote app. Other step-up
features include Audyssey MultEQ automatic room setup,
and five HDMI inputs (including one on the front panel).
The AVR-1713 ($550) retains the networking features of
the AVR-1613, but boosts power to 5x80 watts at 0.08%
THD. It has six HDMI inputs, including one on the front panel.
The AVR-1713 features Audyssey MultEQ XT high-resolution
room calibration, and has a Zone 2 preamp output.
The AVR-1913 is a networked 7.1-channel receiver rated
at 7x90 watts at 0.08% THD. The rear surround channels can
be used to power a second zone. It has six HDMI inputs, with
analog-to-HDMI conversion and 1080p upscaling, along
with Audyssey MultEQ room calibration. It retails for $650.
Also announced by Denon was the DHT-1513BA hometheatre system. Priced at $680, the system consists of a
Denon AVR-1513 receiver and Boston Acoustics MCS 160
5.1-channel speaker system. The four satellite speakers and
centre-channel speaker each contain a 3” mid-bass driver
and 0.5” soft dome tweeter. They’re matched to a powered
subwoofer with 100-watt amplifier and 8” bass driver.
www.marketnews.ca, Search News: AVR-1513
Denon DHT-1513BA
Denon AVR-1913
New Lowepro Urban Sling Series hits the market
DayMen Canada has unveiled its new Lowepro Urban
Sling series. The company says that it is inspired by the
daily routines of street shooters, photo enthusiasts and
bloggers.
Described as modern and compact, the Sling series
features a profile that is able to lend itself to a trio of wearing options: at the front, on the back, or to the side. The
product was specifically designed in a way that will allow
the user to easily shift its position while on the move.
It has a padded compartment that offers protective
space for tablets, a zippered front accessory pocket, as well
as side pockets that can offer easy access to a lens cap,
filter, or other smaller items.
The individual can load the Sling from the top, or
through the fully opening front panel. A tuck away waist
belt is also included.
The Urban Photo Sling 250 (SRP $109) can fit up to one
Pro DSLR without grip with an attached 70-200mm lens,
two extra lenses or a flash and one lens and a tablet. The
side pocket can hold a small tripod and various other
personal accessories.
The Urban Photo Sling 150 (SRP $89) fits a DSLR with attached 55-200mm lens, two extra lenses or a flash and one
lens. A tablet and personal accessories will also fit in the
case.
Both Slings are available in black.
www.marketnews.ca, Search News: urban sling
Distribution Appointments
Edma Photomarketing has announced that it will distribute VidPro and Lensband products in Canada.
VidPro offers a number of portable LED lighting kits, complete with rechargeable batteries and chargers. Units vary in
light output and utilize a variety of power sources, including AC, DC, rechargeable lithium ion and AA batteries. VidoPro also
provides a sizeable collection of lithium ion digital camera and camcorder batteries, complete with a two-year warranty.
Meanwhile, Lensband manufactures a silicone band designed with specific elastic resistance to stop unwanted zoom
creep in camera lenses. Zoom creep is the tendency for a lens to extend or collapse under its own weight when pointed
upward or downward.
Erikson Consumer has become the exclusive distributor of aftermarket satellite radio products under the Sirius, XM and
SiriusXM brands.
Erikson Consumer has distributed Sirius products since 2005, when Sirius Canada began operations. XM products were
distributed by SYNNEX Canada Ltd. Sirius Canada and XM Canada merged in 2011, becoming SiriusXM Canada Inc.
Gentec International has announced that it has become an authorized international distribution partner for International Camera Accessories, LLC, the manufacturers of Hüfa lens caps.
This summer, the Hüfa lens cap clip will be available in Canada, under the Optex brand, within most retail locations. Suggested retail price of the the Optex HCLIP1 Hüfa Lens Cap Clip is $14.95
The Hüfa clip is designed to fit lens caps from many lens manufacturers and easily attach said caps to a camera strap or
bag strap.
The Urban
Photo Sling 250
Wireless Xplosion is distributing Contour Design iPhone, iPod and iPad cases to the education channel in Canada.
Contour manufactures Lucky Brand, Juicy Couture, as well as Jack Spade and Kate Spade branded cases. The company
boasts that its collection of cases is both fashionable and functional for mobile device consumers.
MARKETNEWS 65
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Christina (at the microphone) during Summer Woofstock 2011 with CityTV’s Weather Specialist Sangita Patel.
How do you find that balance between your home
and professional life?
I set expectations on my availability with my contacts,
partners, colleagues, friends, and family. I have many interests outside of work and do my best to divide my time
accordingly.
Career-wise, what are you most proud of? What has
been your greatest achievement?
In 2010, I received the Canadian Public Relations Society
Ottawa/Gatineau President’s Award for my achievements
in the industry. I was honoured to receive this recognition
from esteemed PR practitioners.
If we asked your co-workers, what would they say
are your greatest strengths? Weaknesses?
I have been told that my greatest strengths are my enthusiasm and creativity. However, I need to learn how to
delegate tasks more frequently.
WOMEN IN TECH
Christina Stefanski
Stats:
Name: Christina Stefanski
Company: Sony of Canada Ltd.
Title: Public Relations Specialist
Location: Toronto, ON
Years in the Industry: Six years in PR, two at Sony
Canada
Hobbies: Music, writing, biking, swimming, and spending
time with my dog
Q&A:
They say that consumer technology is a man’s
world. Agree or disagree?
Both women and men use technology to stay connected
and improve their lives. In my role, I work with men and
women who engineer, market, and report on technology products to benefit and inform Canadians. I believe
that consumer technology appeals to tech-savvy people,
regardless of gender.
What brought you into the industry?
My professional background and area of expertise is public
relations. I grew up watching my favourite TV shows and
movies on my family’s Sony TV and listening to the latest
cassettes on my Sony Walkman. When the opportunity
presented itself to work with Sony in public relations, I was
thrilled.
Have gadgets and technology always been a passion
for you, or has that feeling grown over the years?
My father is an engineer so I was aware of the latest technologies throughout my childhood. My father introduced
me to everything from TVs, to video cameras, to music
players, to computer software. He has excellent taste in
music as well, so it was really something to listen to artists
like Jimi Hendrix on the best surround sound system at
the time. Furthermore, over the years I have learned to
embrace my dependence on mobile devices and the Internet. This is important because I am a part of the generation that regularly uses tech gadgets for entertainment and
staying connected with friends and family.
Have you had a mentor? What was the greatest lesson you learned from him/her?
My mentor is a fellow public relations practitioner also
working in PR for the technology industry. The greatest
lesson she taught me is that you must stay on top of industry news and technology launches, in order to provide
the best direction for your company’s communications
activities. While in transit, I listen to CBC Radio One every
morning and afternoon. Throughout the day I consume
online industry news and follow updates on tech trends
through Twitter and RSS feeds.
What do you do to unwind after a long day at the
office?
I like to enjoy the dog park with my puggle, Jimmy. I also
enjoy biking and swimming.
What does the future hold for you within this
industry?
As a communicator, I will continue to find new and creative ways to engage Canadians and inform them about
how technology improves lives. The pace at which technology is currently advancing fascinates me. I aspire to
grow within the industry and raise awareness and excitement among Canadians about life-changing innovations,
through public relations.
Do you find that friends and family come to you
with questions regarding tech products? Even products you don’t handle, or have ever worked with?
Media and consumers regularly ask me questions about
Sony products. Fortunately, those I work with on the support and retail staff levels are very knowledgeable and
very helpful with providing tech-related information when
needed.
she took the company from a local marketing firm to one
of Canada’s largest independent marketing firms with
offices in Toronto, Calgary, and Ottawa. Known to Canadians from her role as one of the venture capitalists on CBC
Television’s Dragons’ Den, Ms. Dickson continues to inspire
women to be successful business developers and entrepreneurs. Having read her 2011 book, Persuasion: A New
Approach to Changing Minds, I would like to learn more
about Ms. Dickinson’s journey and inspiration.
Carolyn Leighton, Founder, Women in Technology
International: In 1989, Ms. Leighton launched Women
in Technology International (WITI), an e-mail network coordinating events for women in technology. Ms. Leighton
built up membership woman by woman through the most
credible PR channel: word-of-mouth (popular social media
channels did not exist yet). In 2001, WITI transitioned from
a support network into an official trade organization, contributing to its legitimacy. WITI currently reaches over two
million women (and men) worldwide, boasting subsidiaries
in the U.S., Hong Kong, Great Britain, Australia and Mexico,
providing connections, resources, and opportunities to a
supportive network. It would be fascinating to learn about
the experiences that inspired Ms. Leighton to initiate the
WITI movement, which has become an international empire for women in technology.
Marissa Mayer, Vice President of Consumer Products,
Google: Ms. Mayer helped launch over 100 products and
features on Google, including Gmail, which has improved
my daily interactions both on a personal and professional
level. I rely on Google in my day-to-day activities and
appreciate Ms. Mayer’s contributions to the excellent user
experience that Google offers. It would be interesting to
discuss how the Google brand became a verb (“Google it”)
and learn how Google represents and recognizes women
in technology, on an international level.
How would you say that you’ve evolved since first
stepping foot in the industry?
I have had the opportunity to work on interesting campaigns and projects with knowledgeable Canadian technology journalists who continually inspire me to become
more tech savvy and informed on products and trends
in the industry. I continually learn about technological
features and benefits in my role, because I must stay on
top of ongoing releases of new gadgets in the Canadian
market.
What is your favourite technology device?
The Sony Walkman because it miraculously evolved from
the world’s first low-cost portable stereo in 1979 to the
first Android powered Walkman mobile entertainment
player, the Z Series Mobile Media Player, in 2012.
What is one thing about you that many people may
not know?
I record and perform live music in my free time. While
completing my undergrad studies in Halifax, I became an
active member of the hip-hop community. I contributed
to Dalhousie University’s radio and newspaper, taught
hip-hop dance to youth, and performed my own music at
local events. I continue to make music now to empower
audiences, and I involve myself in events contributing to
various community initiatives. mn
If you were able to have dinner with any three
influential women, living or deceased, who would
they be?
Arlene Dickinson, CEO, Venture Communications: Since
Ms. Dickinson joined Venture Communications in 1988,
Left to right, Christina Stefanski, Robin Powell (VP
of Retail, Sony of Canada), Kira Isabella (Sony Music
Recording Artist) and Tony Smith (VP of Marketing and
Communications, Sony of Canada) at Upper Canada Mall
new-concept Sony Store opening in 2011.
What kinds of opportunities and relationships have
you experienced in the technology industry that
you wouldn’t have otherwise?
I have become more aware of technological innovations thanks to media and global partners who continually inform me about new developments and trends in
the industry. Working with Sony, I have met prominent
journalists and producers who have taught me a lot about
technology and industry trends. During an event at the
Japanese Canadian Culture Centre, I had the pleasure of
meeting award-winning scientist, environmentalist, and
broadcaster David Suzuki, who is an inspiration as a world
leader in sustainable ecology.
66 MARKETNEWS
MNMAY12.indd 66
6/1/12 11:41 AM
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