Computer accessory sales surge; expanding market sparks vendors to highlight new products, promotion tie-ins - Special Supplement: Home Office Merchandising

Discount Store News, March 15, 1993

Expanding Market Sparks Vendors to Highlight New Products, Promotion Tie-Ins

Along with computer software, accessories for office use are flying out of discount stores at a rapid pace. At the Winter Consumer Electronics Show several accessories vendors were showing new products aimed for this expanding market.

Rubbermaid's Microcomputer Accessories division showed its greatly expanded line of ergonomic accessories, including a "wristtrolley" that supports a typist's wrists while following back and forth as he or she types.

Memorex, Santa Clara, Calif., announced a follow-up to its successful marketing tie-in of a year ago with the McDonald's fast food chain. According to director of marketing David Metzger, the McDonald's promo increased sell-through, expanded distribution and helped sell additional PC accessories and supplies.

This year's promotion partner is AT&T, with consumers able to ring up to $20 of long distance calling credits within a 15-month period. "We've had phenomenal response from mass merchants," said Metzger of the '93 promo. Shoppers get certificates for $5 worth of long distance calling with every two boxes of 3.5-in. Memorex disks they purchase, or for every four boxes of 5.25-in. disks they buy.

Metzger noted that sales of accessories are forecasted to grow by 33% over the next year, spurred by the increase in the number of people who have small offices in their homes, tele-commute, offer consulting services and other side jobs, as well as the increase in computer use by children in educational endeavors as well as play. "As PC prices come down, more people will buy them and accessories sales will grow," predicted Metzger.

Among the new products being shown by Memorex were disks, power surge protectors, mouses and new tape drive kits for backing up data. Another new wrinkle is offering educational videotapes. "A Beginner's Guide to PCs," "PC Memory Expansion Made Easy." and "A Survivor's Guide to Data Backup," will likely be situated within the 4-, 8-, and 12-ft. accessories planograms and sell at a suggested retail price of $19.95 each.

Curtis, another leading full-line computer accessories supplier, noted that much of its success is based on positioning itself as a consumer packaged goods company. "By stacking disk holders the way we do, we can get more dollars per square foot," said Greg Connolly of Curtis. "The falling prices of hardware means there's more units out there and more opportunity to sell accessories." In fact, Connolly pointed out that a retailer doesn't even have to sell computers to successfully sell accessories, a fact proven out by Target Stores.

Smith Corona introduced a new line of branded typewriter and printer ribbons, packed in environmentally friendly blister packs made from recycled PET plastic from softdrink bottles. The 12 skus will serve 90% of existing typewriter models and about 65% of dot matrix printers.

Identity Systems offers a wide range of new peripherals to bolster its existing lines. It now has 125 skus of hard drives, modems, CD-ROM drives and tape back-up units.