q&a
Dual: Serving Two Masters Can Work … If You Have a Plan
Dual Corporation has been an enigma for
many 12-volt specialists. The company launched a head unit line in a space virtually owned by well-known brands, and has managed to make a foothold. In addition, it’s expanded into just about every car audio and video category with seeming abandon as evidenced by more than 20 new SKUs introduced this year. Yet, President and CEO Jim Braun said there’s a method to the madness.
JIM BRAUN, PRESIDENT/ CEO, DUAL CORPORATION
ME: You introduced 21 new SKUs at CES.
How many are shipping? Braun: The 21 new Axxera SKUs include multimedia, CD receivers, Axxera’s first amplifiers, subwoofers, midrange drivers, tweeters and the AXiS series speakers with True In-Phase technology. The new receivers and amplifiers are currently available and the speakers are shipping this month. ME: At this year’s midpoint, which products or technologies in particular have garnered the most attention? Braun: Everyone we spoke to in the field really likes the new 3” QVGA TFT LCDs. The feedback we received was that not only the units show up very well in the display boards, which helps differentiate them from the competition, but the sell through has been great as well. Dealers also really like the “micro size” of the new Axxera amps. The small size makes them more universal and easy to install, plus the amps do not take as much room in the trunk. ME: What industry trends are you seeing
that have caused you to direct more attention to independent specialists with your 2013 product line? Braun: While the growth rate of the 12-volt
industry is slowing down, the multimedia segment continues to grow and remains the flagship category for the industry. Multimedia continues to be best served by the 12-volt specialists. Also, amplifiers and speakers still present great profit opportunity for both dealers and manufacturers. Specialists thrive on exclusive lines, and the Axxera line was built specifically with this in mind, to focus completely on 12-volt specialists. Its limited distribution two-year warranty goes a long way as far as helping the sell through rates. ME: Recently we produced a series of
articles outlining some of the industry’s more controversial subjects. One in particular had to do with vendors focusing less on specialist retailers in favor of OEM or big-box contracts. As a vendor, how do you feel this helps or hurts the parties involved?
10 Mobile Electronics May-June 2013 Braun: The industry is diverse and has
several channels of distribution, all of which are important and need to be served one way or another. I don’t know about anyone paying less attention to the 12-volt specialists. For example, Dual sells to big box retailers, but at the same time we created the 25-plus-SKU Axxera line specifically for specialists. They are a key segment and remain at the cutting edge of our industry, and we plan to continue to focus on the 12-volt specialist. ME: What is your policy for retailers selling your product online? Braun: Online selling is a reality of today’s
retailing environment. We know and understand that our products will be sold online. With that in mind, we try to create and maintain intelligent distribution strategies that allow our retail partners to thrive and be profitable with our product lines. With regard to the 12-volt independent specialist, we keep even tighter distribution control of our Axxera line, which minimizes any conflict that could occur online. ME: What steps will the industry need to
take in order to allow specialists to participate more fully in online commerce? Braun: We feel that product lines that are built exclusively for specialists should allow them to profitably participate in online commerce as part of their business. ME: Recently, Ed Sachs stepped down as president of sales, seemingly sparking a restructuring that includes a new West Coast facility and consolidation overseas. Are the two events related or coincidental? And what short- term and long-term benefits will retailers see from the restructuring? Braun: One event had nothing to do with the
other. We began this restructuring almost a year ago. Consolidating of certain functions overseas and adding the West Coast facility just made a good business sense for us. The consolidation will make us more efficient in our operations, and the new facility will allow us to better serve our growing West Coast customer base. ME: On a scale of 1 to 5, how would you rate your company’s ease of doing business from a retailer’s point of view? Why? Braun: We strive to be a 5 every day, but
like everyone else we have our challenges from time to time, mostly involving backorders. With the expansion of the Axxera line, consolidation of support functions, and opening of the West Coast facility, we are now focused to make sure all the initiatives are executed as well as possible. µ
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