iPhone sales show that economy is not a deterrent for worth while products.

The iPhone sold over 1 million units in a matter of days and all the so called experts were amazed because they didn’t think a 3rd generation product in a depressed economy could create this kind of demand. But when you live in a consumer culture, everyone should realize that when you offer a desirably or necessary product at a reasonable price, there will always be a market for it.

Apple knows they will never have the sales volumes of the PC, so they don’t try and compete on price in those arenas. Instead they focus on greater feature sets that reaches a loyal and more finicky clientele at a slightly higher price to offset volume through greater margin. Yet in the mobile phone sector, they have combined a rich feature set with a lower cost to appeal to an even broader consumer base which has obviously worked based on the sales.

At Vinpower Digital, we have taken similar steps in our sales and development process. As a true manufacturer as apposed to just a system integrator, with our fingers on the pulse of the industry, we focus on a greater array of features which better resonate with the end users as apposed to just trying to undercut others through lower pricing. Don’t get me wrong, we understand the hard times we’re facing and the value of the dollar, so our products are competitively priced, but we aren’t satisfied with being a me too product.

So when someone says the market is dead and sales have dried up, maybe they should review what it is they are offering and determine if it’s the market or the product. Vinpower Digital is not unscathed by the economic crisis that has adversely affected the whole world, but I do think we have faired better than many in this industry because we offer the consumer a better choice in a variety of products. When someone needs a duplicator or accessory product, they have many choices, but in the end they will choose the products that best fit their needs and can grow with them, that’s what Vinpower Digital offers and why we have been successful in our industry.

100th Blog Entry

We’ve reached the century mark. I know this is not a big deal in the constant and quick pace blog and Twitter world, but it means something to those of us who continue to post entries and hopefully raise awareness through our blogs. TV shows always celebrate when they have filmed their 100th episode and it’s a huge accomplishment when people reach this milestone, so it’s only fitting we celebrate it as well. I want to take the time to thank everyone who has ever read the Vinpower Digital blog and all those who have contributed to it. Here’s to another 100 entries which I hope can reach and enlighten many more people.

2009 COMPUTEX at Nangang Exhibition Hall

COMPUTEX TAIPEI has become the largest computer exhibition trade show in Asia and the second largest in the world, next to the CeBIT trade show in Hannover, Germany. Key global businesses come to Computex every year to launch their new products or discover new or more cost effective products to sell.

We have exhibited at COMPUTEX for a few years now, but this time our booth was located in a prime position inside the Nangang Hall, which is the primary hall with the most traffic. With that, Vinpower Digital greatly increased our visibility of existing and new products to a great number of buyers from around the world. We showcased numerous products including our Tower series of SharkCopiers duplicators (from CD/DVD to BluRay as well as the LightScribe capable versions), our autoloader series (which are all also available as CD/DVD, BluRay and LightScribe capable versions), our new flash media duplicator (for USB, SD/Compact Flash, and hard drive models) among other key duplication related products we offer.

As a leading manufacturer and distributor of duplication system and complementary items, we provide the total solution from discs, to duplicators, to disc printers (either inkjet or thermal printers). Whatever your duplication needs, we have the product to complete the job!

Recently, one of the fastest growing methods for distributing content is through flash memory which is most commonly recognized as USB pen drives or SD/Compact Flash cards. Recognizing the growth and potential for this market, Vinpower Digital has developed our own line of flash copiers like the USB Shark duplicator with many useful features, such as the Smart Copy function.

In addition, Vinpower Digital will introduce a new function for our DVD duplicator line to include a specialized copy protection application using our CPS technology. To demonstrate the applications playback capability, we played a video of the recent movie trailers. It was an instant hit as many people stopped by to watch it. With the non-stop camera clicks and flashes, it was easy to see how popular our booth was with the Computex attendees.

We also showcased the next level in standalone duplication towers, the network capable SharkNet. These systems can be connected to an internal network using standard LAN/Ethernet connections so that an entire office has the benefit of sending their image files and/or LightScribe print files to the duplicator to be copied.

Overall it was a successful trade show and we would like to thank all of those previous and potential future customers who visited our booth. Because of your support, we are excited to continue to make new and improved products well into the future! Voice your idea, Vinpower Listens; we work with your needs in mind.

Blu-ray Adoption Quickly Rising

I’ve written about the rapid adoption of Blu-ray before, but as prices continue to drop for all aspects of Blu-ray devices from recording to playback, it’s really on the rise now. In fact a study shows that first quarter 2009 Blu-ray player sales has already surpassed Q1 2008 by a whopping 72% with over 400,000 units sold, even in a down economy.

The rapid infusion of Blu-ray players is primarily attributed to the influx of HDTV capable TVs, video cameras, recording equipment, Sony’s Playstation 3, duplicators, BD-R media, etc. as well as the rapid decrease in pricing for all of these items. The price of Blu-ray players has dropped an astounding 34% in that same time period. With the decreases in prices for Hi-Def related products needed to produce or view these large format video, it’s the perfect environment for this format to thrive and expand.

In my opinion, the downturn in the global economy played a large part for the rapid decline in pricing. As most everyone knows, most electronics are made in China, Taiwan, or Korea. Even Japanese products are made in these locations with strict adherence to the Japanese company’s standards and parts. In order to keep prices low, those production facilities need to offset costs through volume. So when supply exceeds demand, the manufacturers can only do two things, reduce production or lower prices. Decreasing production would raise costs on material further increasing the price, so their only option is to lower pricing.

When customer confidence is at a record low, then consumers are far more frugal when it comes to their purchases. But even at our lowest point, there is still significant commerce taking place and those that can navigate the market and price their products appropriately can not only survive but thrive in these times. Hence, Blu-ray becomes cheaper and more consumers feel the upgrade to Hi-Def is worth the added expense (now that it’s overall cheaper) which catapults Blu-ray sales. Then as the economy improves, the price reductions will slow to a normal attrition but the pricing will already have reached that magical point where consumer’s feel the product is a bargain and worth purchasing.

Follow up images of the CompUSA Hi-Tech Superstore

Below are a few pictures showing the presentation made as discussed in the previous blog from May 22, 2009 titled “CompUSA Blurring the Lines between Brick and Mortar and Online Retail Shopping”. These images further show the emphasis the company has put into their new direction of personal interaction with online assistance:

CompUSA Blurring the Lines between Brick and Mortar and Online Retail Shopping

Recently I had the benefit of touring CompUSA’s new flagship facility in Plantation, Florida (http://www.compusa.com/retailstores/compusaStores/plantation.asp). We were given a special presentation and tour by Gilbert Fiorentino (Chief Executive - Technology Products Group) of the stores creative new interactive shopping capabilities.

The store itself on first glance was not much different than any other electronics store. They had rows of large screen LCD TVs, desk top and laptop computers, end caps of digital camera, and so on. But when you look closer you’ll notice that every component is also connected to or attached to the internet where you can find the answers to all of your questions about the products specs, features, and comparison to similar products. In fact the internet access is not restricted to show only CompUSA products but allows the user to freely surf other non-offensive sites including their competitor’s websites. Mr. Fiorentino proudly proclaimed that he was happy to allow his customers to shop Best Buy (which there’s a store located across the street) as he feels confident in the end they will come back to CompUSA for their purchases.

The interactivity of the online super store was not only a benefit to the consumer, but also to the stores employees so that they will never be at a loss when trying to answer a customer’s questions about a product. The sales reps no longer need to be specialized in a given category or a master of all, rather just savvy enough to navigate the companies website to find the answers needed.

Yet the best part of all is that the customer is not restricted to purchasing only the items carried in the store. In fact from the same internet connected kiosk where they are checking the specs on the latest digital cameras or TV’s they can also navigate to any of the thousands of products CompUSA sells online including duplicators and purchase on the spot with free shipping direct to the customer’s home. For those customer’s that don’t feel comfortable paying with a credit card online, they can go directly to a cashier and make their purchase safely and easily.

I tested it myself searching some of the various products we offer through CompUSA like:

http://www.compusa.com/applications/SearchTools/search.asp?keywords=vinpower&searchbtn.x=0&searchbtn.y=0

http://www.compusa.com/applications/SearchTools/search.asp?keywords=xerox+duplicator&searchbtn.x=0&searchbtn.y=0

http://www.compusa.com/applications/SearchTools/search.asp?keywords=optical+quantum&searchbtn.x=0&searchbtn.y=0

Before there were set boundaries between the tangible convenience of brick and mortar stores and the low cost expansive world of internet shopping, now those lines have been blurred and it’s ultimately to the customer’s benefit.

Having a Good Time at a Trade Show

Trade shows are not all serious, it’s also a good opportunity to build relationships and have a good time. As shown in the image below, Alec is having a good time as we break the tension in our boardroom with some lighthearted humor.

Trade Show Create New Opportunities

Some look at trade shows as great opportunities or even necessary evils while others see them as unnecessary and a misdirection of marketing funds. It really all depends on your target audience and your companies marketing and sales strategy. For us, trade shows are both necessary and a tremendous opportunity for future business development and potential sales possibilities.

Vinpower Digital is a hybrid company where we function in two worlds; as a manufacturer developing products and components for other companies in the digital duplication field as well as a distributor of duplication accessories and peripherals like blank media. It is for this reason that trade shows are so important in our strategic marketing approach.

Recently we attended both the NAB trade show in Las Vegas, NV and Retail Vision in Boca Raton, FL over a course of two weeks. The NAB show is more consumer driven and focuses on all elements of broadcasting which duplication is a major element in this industry. So NAB is beneficial in creating greater awareness for consumers of our product range. Retail Vision is more focused on B2B business which allows us to interface directly with buyers and purchasing agents for various brick and mortar and web based retail sites. In order to achieve the best market penetration, it’s imperative that we work with as many partner sales channels as possible without cannibalizing our customer base. So reaching working with these various retail venues which all have strong customer bases, we can maximize our sales and opportunities.

Of course trade shows are not for everyone. If a company has a comfortable base and is not looking to expand or focuses more on their niche sales channel than volume business, those marketing funds could be better applied toward other services or outlets. But regardless of whether your company is big or small, participating in the right focused trade shows could be the difference between expansion or stagnation/contraction.

The only warning I have for those looking to expand their business through trade shows; firstly make sure the customer base is appropriate for your product line or else it’s a complete waste of time and money. Secondly, it’s no miracle elixir. Creating a strong channel takes time and repeated impressions, participating in one trade show may not be enough to rocket sales, it may take repeat impressions over a period of time to really have the impact necessary.

Vinpower News Going Global

Below are two press release that were circulated throughout Japan. The releases are in Japanese, but follow the same information as the English versions released in the USA a few weeks earlier. For the English version, you can go to our “News & Events” section at www.vinpowerdigital.com.

The first release is related to our introduction of the Industry’s first Network Capable Standalone manual tower duplicators:

Vinpower Digitalは産業用の最初のネット・ワーク機能付きスタンド-アロンコピータワーを発表しました。

本日、Vinpower Digitalは最新の革新的商品を発表致しました。

これはSharkNet.ネット・ワーク接続機能付きスタンド-アロンコピー機シリーズです。

ユーザはこのシリーズを利用して、自分のパソコンで作成したイメージファイルまたはライトスクライブのプリンターファイルをＰＣからネット・ワーク(LAN/Ethernet)を経由しSharkNetコピー機まで転送することが出来ます。SharkNetコピー機でそのイメージファイルまたはライトスクライブのプリンターファイルをCD,DVD,Blu-rayメディアへ容易にコピーされます。

The second release is related to the introduction of the Vinpower Digital series of 8X Pioneer Blu-ray capable duplicators:

Vinpower DigitalはManual Towerとオートローダシリーズコピー機のBlu-rayディスクコピー速度を８倍速に向上させました。

これはパイオニアのエレクトロニクス（ＵＳＡ）商品開発部の副社長Andy Parsonsの言葉です。”パイオニアは長い間にずっとBlu-rayディスクフォーマットの進展をサポートしてきました。従って、Vinpower Digitalは、彼らの新製品ラインに重要なパーツとしてパイオニアの最新のBlu-rayディスクドライブを選択したことは大きな喜びです。”

Meetings in Japan have an unexpected upside

While traveling to Japan on business, to my great fortune I happen to arrive during one of the most beautiful times of the year, when the Cherry Blossoms are in full bloom! If you haven’t had the chance to witness this for yourself, I highly recommend making a trip during late March early April to view this natural wonder for yourself.

This is a picture of me with my hosts from our Japanese distributor, SOHO walking through Ueno park.