Accessories weather computer-sales decline - Industry Overview - Statistical Data Included

Home Channel News, March 5, 2001 by Faye Brookman

With more homeowners looking to hook up PCs or to network multiple computers, there has been interest in "branding" the accessories business. Last year, Belkin and Stanley Works sought to harness the power of the Stanley name with the introduction of branded extension cords, power strips and surge protectors made by Belkin and bearing Stanley's logo and familiar yellow color scheme. "In the hardware channels, the extension cord and power protection categories have become stale commodities," said Megan Daley, product manager for the power protection line at Belkin. "When the Stanley brand became available for licensing, we jumped at the chance."

To overcome the frustration of trying to add on an appliance in an ever-crowded computer station, Gemini Industries recently introduced a new modular surge protector called the Q3 Quad System, which is available with additional modular components that can be added to the strip. "With this, people can add one more outlet [without buying a new product]," Otte explained (see Hot Product, page 13).

Dealers report that, unlike more promotional electricals like batteries and light bulbs that sell at low margins, the sale of electricals used for home office hookups have been more profitable. That's been enough to convince retailers to expand their assortments and shelf space for these items. Do it Best, for example, is adding two more feet to many of its planograms in this subcategory, according to Joe Irie, the buying group's product manager for electricals.

Wiring a 'smarter' house

That homeowners are putting rooms to more elaborate use and that they have more complicated electricals needs is undeniable. In early 2001, Owens Corning, the building products supplier, introduced a new franchising program for its basement finishing system that includes a package for the creation of a home theater. So far OC has signed up approximately 12 remodeling firms who have agreed to pay between $35,000 and $50,000 for a franchise license. The company's goal is to have 40 franchises up and running by year-end. OC's basement finishing package is based upon a panel system that incorporates engineered fiberglass panels and PVC framing. The panels have a fabric finish and come with a trim option of fabric, wood grain or white. The system does not need any additional insulation, raping or painting.

Although the concept of the Smart House, made popular in the 1980s, may not have materialized as its creators expected, more homeowners are demanding some level of high-tech home wiring. A trend emerging in new construction is a juncture box that serves as a central "nerve center" for the house. It can accommodate everything from home theater wires to wiring for Nanny Cams. Keeping with that trend, Sears recently announced the launch of Sears Connected Homes, a Web-enabled home networking system. Through it, participating builders can become a single point of contact for home buyers on a range of in-home installations.

Manufacturers are working on similar products to retrofit existing homes as homeowners look to add DirecTV, DISH systems, home theaters, cable modems and DSL hookups. "What's beginning to happen is we are getting integrated networks where you can bring all of your media into one place -- in a basement or wherever," said Thomas Breslin, product manager for Leviton Manufacturing Cos. in Little Neck, N.Y., which is working on such a system.