Retail Observer

RETAILOBSERVER.COM FEBRUARY 2015 56 RETAILOBSERVER.COM FEBRUARY 2015 56 I n my last article here, I vowed not to speak of UHD, OLED or any next generation flat panel technology, given the technology was already mainstream and we try to remain forward facing in the CE business. Yet, I would be remiss if I did not at least comment on the amazing performance of this category in the back half of 2014 and into holiday season. The category is simply on fire, and driving consumers to independent retailers' stores in numbers we haven't seen in some time. UHD and OLED will continue to be the single biggest driver of footprints and retail revenue for 2015, 2016, and well into 2017, with above 50" penetration hovering at 90% by that time. So the question and the challenge is, how do you turn this watershed moment into profit and higher gross margin dollars? The answer has to be audio, and lots of it. Whether it is a soundbar or a complete Dobly Atmos system, we must turn our focus to audio to enhance our customers' experience and our bottom lines. The UHD and OLED televisions that will be sold over the next few years will be bold, big, and utterly stunning in picture quality, what they will not have is the earth shaking audio that the consumer wants to accompany the picture. Don't misunderstand, the manufacturers are doing their very best to provide a good audio experience, but even the most robust flat panel audio experience might leave the consumer wanting more. As stunning as the visual experience is at the local theater, the audio is what people really come for. The same goes for the home experience. I dare you to listen to a Dolby Atmos demonstration and not yearn for one in your own home theater. The technology produces breathtaking, multidimensional sound coming from all directions, including overhead, to create an immersive experience with astonishing clarity, richness, detail, and depth. Atmos also puts sounds into motion all around you. The specific sounds of people, music, and things move around you in multidimensional space, so you feel like you are inside the action (Dolby Labs, 2014). The experience is revolutionary at a minimum and mind bending at best. I have yet to see anyone walk away from a demonstration that wasn't grinning from ear to ear. It's time to bring back true multi- channel audio to match the big and bold UHD picture. This experience and these products will leave consumers giddy with thoughts of their favorite theater experience. Once they hear it, they will be hooked; the rest is up to you and your sales team. There will be Atmos offerings from virtually every key audio manufacturer this year and into next year. I challenge independents to be the place to see this technology first. The same goes for hearing it. So get positioned now to capitalize on this audio revolution. Dust off your shelf (or wall) space to add more audio, because the consumer will be demanding it in 2015 and beyond. Get your teams trained on the technology and get engaged with vendors that are offering Atmos products this year. It's going to be an awesome ride if you can combine UHD and Atmos to maximize yourcustomers' experience in your store and at home. Good luck and good selling. RO Tom Hickman Consumer Electronics Trends TECHNOLOGY GROWTH TRENDS: EARLY ADOPTERS TO MAINSTREAM CUSTOMERS Tom Hickman SVP Electronics Nationwide Marketing Group

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