CES 2009: Focus on the Affordable

This year's CES, which takes place from January 8-11 in its usual spot, Las Vegas, NV, will undoubtedly serve as host to fewer visitors, and carry a much more restrained focus, so to speak, than in previous years. The reason is obvious: the state of the economy. But this isn't to say that there won't be plenty to see. On the contrary, we'll just see the focus shift to products, technologies, and features that might not have played such an important role before.

For one, this year's event will probably see more emphasis placed on affordable gadgets, like portable navigation and media players, over big-ticket items. If a company is promoting a big ticket flat panel TV, speaker system, or what not, bet your bottom dollar that his pitch will focus on an aspect of the product that will help to save energy and consequently, money.

But energy savings isn't the only place that manufacturers can hang their affordable hats: things like Internet TVs could negate the need to buy a separate, large display monitor for your computer; while the new slew of Internet radios might encourage people to spend less on digital music and CDs. Then of course there's the age old argument that, when you have a fantastic home theatre system at home, why would you need to head out to the movies (or elsewhere) on a Friday night? Taking that into consideration as well, I wouldn't be surprised to see things like high-tech board games and other home entertainment gadgetry being pitched to passers-by.

More affordable gadgets as a whole will see greater presence at this year's event: everything from rechargeable batteries that help save the environment and dollars to video games and systems; one area that is still doing well despite the economic situation. Other small-ticket items like portable navigation devices, MP3 players, and iPod-related fare will be hot with retailers looking to offer consumers a greater selection of items that won't hurt their pocket books.

Don't take this to mean, however, that makers of the more expensive and sophisticated technology will be twiddling their thumbs on the show floor because retailers think consumers won't be investing for the first part of this year. CES will still serve as a time to learn about the new technologies, find out what's what, and make at least preliminary, if not final, decisions on what to bring in store.

As some other reports have pointed out, CES could also serve the dual purpose of helping business partners avoid additional travel. Many dealers meet with vendors after CES, often times traveling to their offices (or vice versa) to make plans for the year. CES could, in many ways, take the place of this extra travel costs: let's find out everything we need to know at the show now, then make final decisions by phone, e-mail, or video conference later.

Anecdotally, after asking around, I've heard speculation that attendance to this year's CES will be down anywhere from 15 to 40%. When we're looking at Canada specifically, this will be hard to tell. It's safe to assume that most custom A/V dealers won't be attending the show since CEDIA is really their "beat". Major manufacturers and retailers will likely be sending a smaller complement of staff down. But smaller companies may see this as an advantage, sending their usual roster of staff, both on the dealer and and manufacturer/distributor side, in order to ensure that they don't miss a beat.

At this point in the game, all we can do is wait and see. We'll keep you updated through reports straight from the show floor. Stay tuned!

Gearing up for CES...and the Adult Expo?

It's not even Christmas, yet everyone in this industry is already gearing up for the 2009 International CES in Las Vegas. You're weeding through hundreds of e-mail product pitches and meeting requests. Setting up booth tours and plotting out a daily plan that allows you to cover as much ground as possible, and meet as many clients (and potential clients) as a day and evening will permit. Are you attending, and have you created a schedule yet?

Judging from e-mails requesting that I come see a nifty new gadget, or advising that on-site interviews can be set up with key manufacturer executives, it's clear that there will be plenty to see at the show. The most puzzling e-mail request I received, however, originated from an exhibitor at the Adult Expo, which runs concurrent to CES, inviting me to register, and visit their booth at that show. Two things initially crossed my mind. First: where do they see a tie-in between my industry and theirs? And second: how on earth did this person gain access to my e-mail address since the two expos have nothing to do with one another other than sharing the same city as their venue?

The person was pitching an iPhone application that optimizes adult films for viewing on the portable device's screen. Ahhh, now I get it. There is a clear tie in. Still: would traditional CE journalists cover this?

In many ways, when you think about it, the adult industry is a huge part of the consumer electronics industry. A few years ago, people were even predicting that X-rated films could very well be the deciding factor between which format won the high-definition DVD war - Blu-ray or HD DVD. In fact, this particular firm claims to have been filming in HD for the past 5 years! There are lucrative opportunities there, that's for certain. But you're walking a fine line if you consider covering this side.

With that said, while the Adult Expo won't be on my radar during CES (as if we don't have enough ground to cover already!), it'll be interesting to see how that area of business could eventually become further entwined with CE; especially with HDTVs, the Internet, and downloadable content making waves as the way of the future for content of pretty much every kind. Yes, including the adult kind.

As for CES, many still wonder whether attendance at the show will be down. It probably will be, but I doubt to very noticeable proportions. Exhibitors will have booked their booth space a year in advance, which means there will be just as much product on the show floor. From an attendee perspective, we'll most definitely see fewer feet roaming the aisles. But it will still be a packed show floor. And if some of those people decide to take the Adult Expo up on their offer and mosy on over to those exhibits at the Sands Convention Centre, so be it. But rest assured that the only scantily clad "booth babes" you'll see in the mainstream media will be holding a gadget of some sort, or standing nearby a line of flat-panel TVs.

Can Vegas Sustain Another CES?

Trade shows, especially in the technology industry, often gravitate to the grand city of Las Vegas. Why? The location is always upbeat, the space accommodating, and the area fairly central to most. But anyone that's traveled to an event there over the past few years knows that the costs are also exponential, and only getting larger. If you go to Vegas for a show like CES, you're liable to pay upwards of $300/night for a hotel room that would normally run for half that. A good meal is tough to find for a reasonable price (although plenty of fantastic meals are to be had if you're willing to fork over the dough for them!) And drinks? You're lucky to find anything, and I mean anything with even just a drop of alcohol for less than $10. But with the economy in the state that it's currently in, will Vegas be able to keep up its perceived price gouging of trade show-goers?

The next massive show to arrive in Sin City is indeed CES this January. At this year's CEDIA EXPO, which took place in Denver, CO, many were rumbling that CES would be jumping ship to another city once its contract was up. The reason? Pricing was getting ridiculous in that great city known as Lost Wages. Some claimed that this wasn't entirely true: the CEA was just bluffing in an effort to get Vegas to wake up to the incredible loss the city would experience if events companies started moving their business elsewhere. Neither of these rumours have ever been substantiated, but we have seen evidence that Las Vegas definitely needs to, and might already be, waking up to the effects economic uncertainty can have.

Visit the official CES Website (http://www.cesweb.org/), for instance, and you'll see a ton of hotels highlighted in bright yellow, signifying that they're offering reduced rates for show attendees. The most dramatic is the Excalibur, where a room that was $219 has now been reduced to just $141.

Aside from the show, the downturn the city is suffering from is becoming quite apparent. According to the Las Vegas Meetings and Travel Website from the Conventions and Visitors Authority, the number of visitors during the month of September was down 10.1% when compared to September 2007. In August, visitors were down 4.3%. The number of attendees at conferences was down 10% in Sept. and a whopping 22.3% in August; while the number of conferences actually held during those months was down 17.9% and 7.2%, respectively when compared to the prior year. Airline passengers arriving to or leaving from Vegas was also down: 9.9% in August and 13.2% in September. On average, all of the aforementioned figures were down at least 4% throughout the entire year of 2008 when compared to '07.

Meanwhile, even the gamblers are pinching their pennies. A recent Reuters report indicates that Vegas gambling is down for the ninth month in a row, while the take for casinos has dropped US$58 million from one year ago to an astonishing US$1 billion! Company shares on the stock market are also plummeting: Las Vegas Sands Corp. dropped from US$122 to just US$6; MGM Mirage from US$93 to US$11; and Wynn Resorts Ltd. from US$139 to under US$44.

While you won't see relevant companies opting out of attending CES this year altogether, you will see a cut back in the number of employees going down to the show. This means fewer flights, fewer dollars acquired from hotel room bookings, fewer dollars spent gambling, and fewer food and drink sales. Booths at the show will likely remain as big and flashy as they always are, but it's very possible that companies will be scaling back on even booth space as they consider bookings for next year's show.

What does this mean? The city of Las Vegas should really be pro-active in addressing all of these concerns, for both visitors and potential business partners that are looking to hold their conventions, events, and parties there. CES isn't moving to another location just yet, and has never announced that it is looking to do so either. But everything could tumble like a deck of cards if Vegas doesn't start proving itself a worthy, and reasonably-priced, home for convention-holders and goers to spend their money.

[Photo: Las Vegas News Bureau (LVCVA)].

CEDIA EXPO: The Sub-Cultures of the Tech Trade Show

I'm often asked what our industry trade shows are like. Most people assume that because we deal with all of these fun "tech toys" and travel to spots like Las Vegas (or Denver, in CEDIA'S case) that it's all about a little bit of work and a lot of fun, schmoozing, and partying it up. While, yes, these shows are typically a good time, the fun is offset by the mounds and mounds of exhausting work. So what is it really like to be involved in a consumer electronics trade show?

I can tell you from first hand what it's like for us as members of the media to walk a trade show. A typical day will consist of lots of meetings, lots of booth tours, lugging around pounds and pounds of press kits (thank goodness for the thumb drive!) and camera gear, and doing a little writing in the press room in between walks. But what about those on the other side of the fence? The manufacturers, sales reps, and dealers?

I spoke to some industry members to get their perspective on the trade show experience. In essence, it's probably more tiring for the manufacturers and distributors because they're standing on their feet, all day long in the same spot. They talk to person after person, from journalists to potential new dealers; and occasionally meeting with existing ones, which is a welcome chance to sit down for a change. While sales reps and distributors are often found outside of a booth, it's likely only because they're running from one client to another, dividing their time as best they can among all of their exhibiting accounts.

Lunch? What's lunch? Walk around any trade show floor, including CEDIA, and you'll see guys in suits and ties crouched on a corner of the floor chowing down on a slice of cold pizza. Some might designate one guy to run and grab some real grub, but lunch can never consist of anything longer than 10 minutes.

Everyone typically has early morning meetings, followed by late night schmooze dinners with top dealers. And be warned: if your dealer likes to party, you'd better like it too, because you'll be getting home at about 3 a.m. (it would be rude to take off any earlier, after all), only to get up the next day and do it all over again.

Dealers probably have it best. The show's all about education, and getting schmoozed. They'll walk the floor to learn about new products, make deals with vendors, maybe take some courses, and then enjoy a nice meal or event, courtesy of a manufacturer or distributor partner. One former dealer told me that, prior to any show, it was his job to arrange the team's "social calendar" by calling up vendors and finding out what was going on each night.

So yes, there are parties and events that take place in the evenings to complement the full days of exhausting work. You'd think that after a 10-hour day on your feet, the last thing anyone would want to do is go to some bar. But many follow the mantra, "work hard, play hard". Your intention might be to grab a nice glass of wine and a decent steak dinner. But what often happens is that you'll run into a big client, some colleagues, or just fellow industry members that you know. Then one drink turns into several, the group gets larger as the night creeps on, and before you know it, you're rolling into bed just as the sun's coming up, catching about 2 hours of sleep before getting up for a big meeting the next morning. The smart, sensible ones hole themselves up in their hotel rooms right after dinner, avoiding the risk of any night time shenanigans.

But there is a positive side (other than a fun night) to sacrificing your sleep: those evening events are often great bonding experiences to talk to your peers outside of the standard, business environment. And this industry in particular is fantastic for a high level of comraderie, despite fierce competition. Last night, for example, we enjoyed an evening out with individuals from three major flat-panel TV manufacturers. In what other industry can a bunch of guys get together and have a genuinely great time when, in reality, they should be looking at each other as "the enemy"?

Trade shows also bode well for the rumour mill. At CEDIA, everyone was talking about next year's event, which will be moving to Atlanta. Are you happy with that? Do you prefer Denver? What about Chicago? Another rumour we've heard: the possibility that CES, which is already on everyone's minds as we wrap up CEDIA, could be moving to Orlando in 2010. Could it be true? Finally, many were buzzing that attendance at this year's event is down anywhere from 15-30% in comparison to last year. It will be interesting to see the actual numbers once they're revealed.

And there you have it: the consumer electronics trade show experience in a nutshell.

2008 International CES Fast Approaching; E-Mail Pitches Arrive in Droves

The 2008 International CES is fast approaching, and anyone in the consumer electronics industry knows that it's a must-attend event, serving as the launchpad for some of the biggest technologies of the year.

Occupying an impressive 1.8 million square feet of exhibit space in Las Vegas, NV, it's no wonder that manufacturers have a difficult time rounding up members of the media and potential retailers to come see their wares. Weeding through my e-mail inbox over the past few weeks, I've noticed some interesting ways that companies and PR reps go about trying to get our attention, and thought I'd share some of them with you.

Most will get straight to the point with a subject line that reads: "meeting request at CES" or "CES briefing" or "can we set up an appointment?". Clear, concise, makes sense. Sometimes I'll get an e-mail that says "You're Invited": now who wouldn't open an e-mail that was clearly extending an invitation? Upon opening, it simply says you're invited to "come see our booth." OK, so it's not really some sort of cool, exclusive invite. But it did pique my interest (and likely the interest of other recipients), so congrats to them.

Others, however, use more creative methods to get a reader's attention. My favourite e-mail of the lot carried the subject line: "Attack of the CES PR People, Run For Your Life". The body of the e-mail simply went on to discuss the major announcements and booth locations of each of the PR firm's clients. But hey, at least they got my attention, right? Another one succinctly stated "CES Invitation: 7 Companies, 1 E-mail". In the matter of a subject line, this sender was able to convince me that there was a justifiable reason for looking at his message: I would get information on not only one company, but seven companies for the price of one! Kudos to these guys for thinking outside of the box.

I don't sympathize with exhibitors at this time of year. It can't be easy to try to convince people to come to your booth out of a choice of 2,699 others. To be honest, I really don't know that there is a tried and true method to get someone's attention with an e-mail pitch; especially when they're being flooded with hundreds of e-mail, phone call, and even snail mail pitches. My best advice to anyone attending, either in the media, investor, retail community, or otherwise, is 1)divide and conquer. You can cover more ground by splitting your resources among key areas. 2) take note of a few "must-see" booths based on what you know is coming down the pike and pitches you received ahead of time; 3) make time to walk the floor freely so you can search for some hidden gems; and finally, 4) wear comfortable shoes!

I look forward to checking out the latest and greatest in technology at next year's event. And for those in the consumer electronics industry, don't forget to attend Canada Night 2008 in the Roman Ballroom in Caesar's Palace on Tuesday, January 8 starting at 6 p.m. We hope to see you there!

Trade Show? Yes Trade Show? No

The Custom Electronics Design and Installation Association (CEDIA) had industry members talking this time one year ago when it confirmed the addition of a second trade show, which would take place in April, and cater to architects, designers, builders, IT/security managers, and other professional trades. (CEDIA's "regular" show takes place every year in early September, and is targeted to custom A/V integrators). Now, the association says that it's nixing the second show, due to "market conditions" and "member feedback", and continuing with a more intimate round-table forum that helps unite architects, builders, and interior designers with custom A/V professionals.

This move isn't surprising. It's no secret that, with every trade show comes huge costs, both in terms of money and time. Not only does a company have to budget for flights, hotels, and food for every employee that's sent down to the show, they also have to give up valuable in-office/in-store time. Trade shows certainly serve an important role, in terms of introducing and demonstrating new products and technologies, and educating installers and salespersons. But with regional training, and smaller, more intimate dealer events that manufacturers and distributors hold throughout the year, how many trade shows can one company factor (and justify) into its schedule?

As it is, many custom A/V companies I've spoken to are finding it difficult to justify attending both CEDIA, a show specifically tailored to the custom A/V market; and CES, the largest consumer electronics show of the year. Some have informed me that they've opted out of participating in CES simply because its scope is so broad that there's little point. Although having a presence at the show helps boost a company's profile, they end up seeing the same dealers and partners that they met with a few months earlier at CEDIA.

On the other side of the coin, I've had others tell me that they will continue to participate in both shows simply because CES is the largest technology show, obviously attracting a lot of media attention; and often serves as a platform for the biggest product launches of the year. Of course, as custom A/V becomes more and more a part of the "regular" family home theatre set-up, companies might find themselves shifting back toward CES; or, on the flip side, CEDIA might find itself expanding floor space more and more to companies involved in things like home networking, appliances, and computers.

With so much perceived concern over even just these two existing shows, it's no surprise that integrators drew the line at another CEDIA. Why not extend the September CEDIA to include a day for architects and builders to show their faces? From a media perspective, just one CEDIA is also a good thing. There's only so much floor-space one's mind (and feet!) can cover in a year!