Remote Control Taking High And Low Road
By Martha McDonald -- TWICE, 8/9/1999
While the ma-jority of the business in remote controls continues to be in the lower price points, higher-end learning re-motes are beginning to be seen in the market, and models offering other new capabilities are on the horizon.
In an article on accessories in the CEMApublication 1999 U.S. Consumer Electronics Industry Today, Jack Nick, Thomson Consumer Electronics accessories VP, said that universal remote ownership rates jumped from 37% in 1995 to 43% in 1998, with sales growth sparked by new digital technologies such as DVD, DBS and DTV.
Among other figures mentioned in the report: 70% of remote control owners own a TV-only device, 64% own a VCR-only unit, 44% own a stereo- or CD-only model, 43% own a universal remote, and 34% own cable only units. Also for every new TV sold, four of 10 consumers will buy a universal remote control.
Nick said the remote control category is beginning to renew itself, and he sees a trend to higher-end models because "a lot of retailers are looking for products to get out of the pure price business."
He also sees a trend toward remotes with features that accommodate the digital era. For example, they could allow access to games and provide the ability to operate in a web site environment.
Also on the horizon, probably for next year, is voice activation in remotes. "If we could get it in at under $100, this could be an exciting product," said Nick.
As for high-end learning remotes, he said the ability to add a high volume of codes at a lower price point will inhibit growth of the category, because "if you can put 2,000 codes on a chip, you don't need a learning remote, and we are just about there."
Meanwhile, suppliers are ready with a variety of new products for the second half of this year. Jensen, a Recoton company, is phasing out its Sole Control line in favor of the Jensen brand and is also changing all of its models over to its new platinum color.
"There is a constant need for replacement remotes, and people are adding more and more equipment," said Recoton spokesman Peter Ildau. "Jensen has all of these codes and is continually updating them."
Jensen remotes range from $9.99 to $39.99 and offer features including the ability to surf TV channels with a single key. Three of the four models in the Surf Series offer this one-touch feature, the SC320, SC330 and SC340, at suggested retail prices of $11.95, $12.95 and $14.95, respectively. They offer surf-speed settings ranging from 1, which previews each channel for about 1.5 seconds, to 9, which sets the preview time to approximately nine seconds.
One of the newest Jensen models is an IR/RF combination unit, the SC-595, which addresses the high end. It can operate up to 10 devices, including a TV, VCR, cable box, satellite receiver, stereo/video receiver, CD player, DVD player, WebTV, and two auxiliary devices from as far away as 100 feet. It includes a sleep timer and PIP control, and the suggested retail price is $59.95.
At the Hudson Access Group, which markets the One For All brand of remote controls, company spokesman Steven Flint said the less-than-$10 segment of the business continues to grow and now accounts for about 60% of the market. The $10-to-$20 segment is trending down due to lack of innovation, he noted, adding that it currently accounts for 36.7% of the total market. Meanwhile, the $20-and-up segment is down to 2.4% of the total market.
"One For All is maintaining its position of strength in the lower price points," Flint said. But the sees opportunity in the higher-price, higher-margin categories and is targeting this segment with its new IQ Series that brings learning technology to a wider range of price points.
New models in the IQ series include the Cinema 7 (model 7800) at $24.99, the A/V Producer (model 8800) at $99.99 and the Home Producer (model 9800) at $129.99.
The Cinema 7 can learn up to 28 commands and is compatible with DVD and DBS systems, while the A/V Producer is an IR eight-unit device that can learn up to 48 commands and has 32K memory. At the top of the line is the $129.99 model 9800, an IR/RF combination unit that can operate through floors and walls at distances up to 100 feet, the company said.
Flint said these new high-end models are competing with learning models from such companies as B&O, Marantz, Rotel and Sony, with price points ranging from $150 to $250, and the Harman Kardon-Microsoft model at $349.
Meanwhile, at the low end, One For All is offering the $14.99 Big Easy, a three-device remote control with oversize, glow-in-the-dark buttons and a built-in sleep timer, and the Big Easy Select at $15.99. The select replaces four remotes and includes satellite and CD player codes.
In other remote control news, the two new brands entering the market in a big way this year, Jasco's GE and Zenith, are making strides in the category.
Zenith VP of accessories Len Coakley said the company offers 11 models at prices ranging from $8.99 to $19.99 and has under development two more upscale models -- a learning remote with an LCD screen and an RF/IR combination unit that can operate a satellite dish -- which will be available at $29.95 in the first quarter.
Coakley noted that "volume drops off dramatically when you get above that $29.95 price point, so we want to stay there." He also pointed out that the Zenith brand is strong in remote controls and that industrywide retail sales are up 5% in units and 8% in dollars so far this year. "This shows that people are willing to step up," he added. "Our business in remote controls is up 30% this year. We are more focused on the mid-to-high end."
Seven of the 11 Zenith models offer menu features and have 32K chips, with plenty of memory to handle that function, said Coakley. "These models offer between 2,000 and 2,500 codes."
At Jasco, the company is gearing up its GE program, which offers five GE models at retail prices from $7.99 to $16.99. The RM94901 is a Glow Control four-device audio/video remote control, while the RM94903 is a three-device big-button unit. The model RM94905 is a four-device unit with a contoured ergonomic design, and the RM94904 adds a sleep timer.
In other areas, retailers can expect to see a variety of remote control promotions in the second half. Zenith, for example, is planning promotions such as value packs containing two video tapes with a remote control, calling cards with remotes and batteries packaged with remotes.
Gemini is currently running a promotion that gives consumers a free pager with the purchase of a remote and one-year of activation from Motorola. (TWICE, July 12, page 38).
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