Retail Industry
Industry: Email Alert RSS FeedHome theater, video steals the show
DSN Retailing Today, March 14, 2005
The home theater category has been dominated by pricey new display technology, leaving little left over for complementary audio pieces. Consumers are spending more on TVs and less on high-quality audio components, a situation that's not likely to change in the near future, thanks to the popularity and affordability of all-in-one home theater packages.
The average selling price for home theater in a box (HTIB) was $200 in 2004, down from $265 the year before according to the Consumer Electronics Association. And although unit sales increased by 1.25 million units to 4.87 million, total dollar sales jumped by only $10 million to $971 million from the prior year.
Most RecentRetail Articles
"What's driving this is display upgrade," points out CEA analyst Sean Wargo. "Certainly people are spending more than they ever have in the past on the video portion of home theater," agreed Stephen Baker, director of industry analysis for the NPD Group.
With flat panel displays capturing consumers' attention and a large share of their home entertainment budgets, specialty retailers have either relinquished the audio add-ons to discounters or stocked up on inexpensive HTIB packages, giving up the margin that goes with higher-end components.
"Smart retailers are working with customers to make sure they're spending the right mix of dollars on the display and audio," said Wargo. By identifying a customer's total budget first, retailers can more pointedly steer that customer toward a higher-quality, higher-priced audio system.
Brought to you by Oracle
- Selling Through a Slump - An Industry-by-Industry Playbook to Help You Prepare for the Recovery
- Create Enduring Customer Relationships
- Self-Service That Really Serves
- Retailers' Response to the Global Economy Downturn - Enabling Immersive Shopping Experiences
Most Recent Business Articles
- How do I determine my retainer fee?
- Why fly solo when an executive assistant can accelerate your CLNC® business?
- The CLNC® mentors held the key to my first case and to my CLNC® success
- Atlanta CLNC® 6-day certification seminar photo galleryplus sign up today for spring 2009 to save $100.00
- Speak to a full-time practicing CLNC® consultant
Most Recent Business Publications
Most Popular Business Articles
- Using object-oriented analysis and design over traditional structured analysis and design
- Big Fish Games Migrates Upstream to Fisher Plaza; High Growth Online Gaming Firm Vaults Fisher Plaza Occupancy Rate Above 90%
- Top of the line: some of the world's most well-respected doctors practice in South Florida. A guide to choosing the best physician specialists - Top Doctors in South Florida
- Sand filter basics: high-rate sand filters can be confusing for those new to the business. Understanding valve modes is the key
- BEHR Paints Introduces a Colorful New Way to Paint and Prime All in One with BEHR Premium Plus Ultra™ Interior
Most Popular Business Publications
Content provided in partnership with http://findarticles.com/source//

