44 TWICE

07/25/2005
Accessories

Booming iPod Biz Broadons Accessonos Opportunitios Belkin Links iPod

W
ho could have predicted the
incredible boom spurred by
those groundbreaking little
white boxes of plastic?
Weil, if you were watching
the quick-growing popularity of
MP3s and the incredible boom in
music-sharing applications, like
Napster, it probably wasn't sucb
a surprise when Apple's iPod,
combined with the iTunes appli-
cation, sent the consumer elec-
tronics industry scrambling to CEA VIEWPOINT sic from a format into a lifestyle.
cash in on the "iPod economy." Michelle Zennei
Kohler
Already, accessories provid-
ers have flooded consumers with over
400 accessories for portable music —
everything trom designer cases to high-
end earphone providers are vying for
consumer cash. In facr, the accessories
market is actually outpacing the market
for players, with the number of available
add-ons doubhng since 2004. And even
more important for retailers, accessories
are pulling in more revenue with even
more attractive margins.
This leaves our industry with some
questions to answer as we move forward.
Beyond the creation of hundreds of ways
tor iPod owners to dress up their favorite
device, what can we, as accessories man-
ufacturers and retailers, learn from this
massive boom?
It s no secret CE consumers are greedy
for gadgets that offer more and more
functionality and style in smaller and
smaller packages. So why did the iPod
become so popular?
Like most successes, it was a combina-
tion of excellent product design, smart
marketing and great timing. The product
itself boasted an unprecedented amount
of memory, a simple interface and an el-
egant design. Just as important, iTunes
was launched as a vast source for legal, ac-
cessible digital music content. Add to this
plentiful and compelling advertising.
Finally, top this all off with one impor-
tant and often-overlooked fact
— the iPod had, and contin-
ues to have, an ever-growing ros-
ter of complementary accessories
that personalize the iPod expe-
rience. And, with a shift in the
consumption of music already un-
derway, Apple was able to take all
of this and transtorm digital mu-
With the most prevalent elec-
tronics, including cameras and
cellphones, consumers are spending an
average of 10 percent of tbe cost ofthe ap-
pliance on additional accessories (source:
CNetNews.com, Jan. 31, 2005, Ina Fried,
"Boom ofthe iPod Add-Ons"). Some ar-
gue that iPod accessories spending easily
matches the dollar amount spent on the
MP3 player itself With more than 10
million units sold to date, at an average of
$300, this pushes the iPod add-on market
into the billion-dollar range.
Obviously, the precedent set here has
more to it than just functionality. The
iPod has style — it makes a statement
that people are willing to pay for. Thanks
to slick design, smart well-designed mar-
keting campaigns and plenty of advertis-
ing, consumers are lusting after all things
iPod. Accessories to this market aren't
just about functionality —- it's about self-
expression. Millions of dollars are being
spent on iPod "cosmetic upgrades," such
as designer cases and even sticker cover-
ings for the iPod shuffle.
Even in the world of consumer elec-
tronics, consumers are looking for some-
thing that looks just as good as it works.
With all of tbis pull, what does tbis mean
to those ot us hoping to catch a little prof-
it of our own on the next wave of consunv
To Home Theater
er demand? Well, whether you are consider-
ing the latest, hot MP3 player, convergence COMPTON, CALIF. — A device
device, cellphone, laptop or portable-gaming that allows consumers to play songs
device, take a look at the iPod recipe — and trom their iPod through a home
don't hold the accessories. theater via Bluetooth technology is
Beyond the profits that will make you available from Belkin. Called the
smile, accessories that are truly in sync TuneStage for iPod, model F8Z901
with consumer needs make the experi- has a transmitter connected to an iPod
ence. Whether it's a pair of high-quality and a receiver hooked up via RCA or
earphones that allow you to listen to the 3.5mm to a user's system.
hundreds of hours of music that you have
loaded onto your iPod or a keyboard that
attaches to your PDA, offering quality ac-
cessories allows consumers to personalize
their devices to their individual lifestyles.
just remember to keep it easy for the
consumer. Merchandise the accessories
near the devices they attach to. Studies
have shown that simply placing them in
the rigbt spot can have a huge impact on
your success.
It's not Just Silicon Valley techies who
are spending their money on hot devices
anymore. These days, hot electronic gad-
gets are becoming more and more main-
stream. Manufacturers and marketers TuneStage from Belkin allows users to
have to think about how we are feeding the play songs from an iPod through a home
theater wirelessly via Bluetooth.
new market — a generation of consumers
who view their CE purchases as a lifestyle Belkin said TuneStage offers "reliable,
choice, more than a convenience or quirk. high-quality sound without the clutter of
Look for ways to contribute to the en- cables," and fits all sizes of iPod devices
tire experience. As the iPod wave con- with a dock connector.
tinues, consider how to make use of that Using advanced Bluetooth vl.2 technol-
model. It may open the door to both ogy, the unit can transmit from up to 33
profits and consumer satisfaction like feet away from a stereo, free of the barri-
never before. • ers tbat limit traditional remotes, sucb as
walls, ceilings and windows.
Michelle Zenner Kohler is director of glob- Wirelessly connected through Tune-
al marketing communications, personal audio Stage, an iPod becomes the ultimate re-
business unit, at Shure. She has spent near- mote, giving users "absolute control" of
ly 10 years marketing technology jor software, their music, said Belkin. Since the unit
Internet and CE companies, and was part of a draws power directly from the iPod, it
small Shure team which successfully relaunched needs no batteries or extra cables.
the company into the C£ marketplace, after a Shipping was scheduled for late July at
more'than'20'year hiatus. $179.99 suggested retail. Q

Fuji Unveils Digital Camera Accessepies Kit Shure Ships Sound-

VALHALLA, N.Y. — Fuji Photo
Film U.S.A. is offering a new, uni-
Starter Kit, at a suggest-
ed $29.99, designed for digital
Isolating Earphones
versal line of digital camera ac- photographers who take a high NILES, ILL. — Shure is shipping its
cessories called Digital Accents volume of pictures, includes a E4c sound-isolating earphones, which are
by Fujifilm. The initial assortment "generously sized" protective the latest addition to the company's line
includes three universal digital case vi/ith front pocket, two NiMH of premium consumer audio accessories
camera accessory kits contain- rechargeable batteries, dual char- that combine quality sound with a "sleek,
ing elements that bring digital ger for NiMH AA and Li-ion bat- lightweight" design that complement's to-
photography to a more convenient teries and AC charger adapter. day's popular listening devices.
and productive level, said Fuji. The Accessory Kit, designed Designed to mimic the iconic design of
At a suggested $39.99 retail, for picture-takers using com- the iPod, the Shure E4c earphone also com-
the Travel Kit, designed for sum- pact ot ultra-compact point- plements such devices as Sony's NW-HD3
mer-time family trips or once-in-a- and-shoot digital cameras, at a Network Walkman, Toshiba's Gigabeat
lifetime overseas vacations, con- suggested $19.99, includes soft MEG F20 and Delphi (XM) and XACT
tains a deluxe, expandable travel padded case with belt loop and (Sirius) portable satellite radio players.
bag, four nickel metal-hydride Three digital camera accessories kits, from Fuji, offer shoulder strap, media wallet for The E4c weighs in at just over an
(NiMH) rechargeable batteries, such items as camera bags, media wallets and tripods. safe storage and transport of ounce, offers studio quality sound,
dual charger for NiMH-size A A and lithium-ion (Li-ion) NO- multiple memory cards, a folding mini-tripod that stores with- high-detinition drivers with tuned-port
40/NP-120 batteries, AC and auto charger adapter and world- in the case, a non-scratching cleaning cloth forthe LCD and technology andflexsleeves to ensure max-
wide outlet adapters. lens and four Energizer e^ batteries. • imum sound isolation.
Suggested retail is $99. •