KEVIN R. WEXLER - MCT
John Herrington, president of Sharp, says the 70-inch set has been well-received by men ages 25 to 54.
HACKENSACK, N.J. -- Last month, Sharp Electronics introduced its new 70-inch television set. In the coming weeks it will beginan advertising campaign geared to men and their love of big screens. The company, which has its world headquarters in Japan, invested in a new factory and technology to get ahead of the demand for even bigger flat-screen televisions, and was the first to market with a 70-inch set.
John Herrington, who joined Sharp's U.S. marketing and sales division as president in August, will be in charge of feeding and meeting that demand. Larger and larger screens are the fastest-growing segment of the television market; sales of screens that used to be considered big - such as 55 inches - are slumping.
Herrington, who was president of U.S. sales at LG Electronics USA before joining Sharp, talked about marketing the bigger is better concept to men. This interview has been edited and condensed.
Q: What's the response been to the 70-inch?
It has been great. We did focus groups and went into the homes of our target consumers, who tend to be male, 25-54, and talked to them about how they feel about their televisions.
One of the things we kept hearing from those interviews was the TV for many males is a prize, and so bigger is better in their eyes.
Q: What's the price?
The MSRP - manufacturer's suggested retail price - is $3,799.
Q: What's the new minimum for a TV to be considered a large-screen? Are some of the smaller sizes dropping off and not being made any more?
The largest segment of the large-screen business is 55-inch. Right now, the television business overall is down about 7 percent, and the 60-inch and above segment, which is where we shine, is up something like 400 percent. All of the other screen segments are flat to down but consumers are buying large. We see a migration to larger televisions in a fairly dramatic way.
Q: What do you think is driving demand for larger screens? Is it just the guy factor, they want bigger TVs?
Yes, there's some of that. The other is as flat-panel television has become more popular, people have gotten more comfortable with larger flat panels in a room. Many years ago we used to hide our televisions in furniture.
As people have gotten used to televisions in the wall or on stands within their homes, they're more comfortable with larger screen sizes.
Q: I understand the 70-inch will be sold in Costco, Sam's Clubs. How important are warehouse clubs for a big purchase like that?
Those are great retailers that have millions of people coming through their doors, and we're thrilled to be part of their assortments, just as we are of all the (retailers) that support us. Best Buy is a phenomenal electronics retailer that we have a great relationship with. The warehouse clubs are new for us this year. And we've targeted some regional retailers that are strong in their specific markets. In all, we've added over 1,300 locations in the past six months to our retail base.
Q: Selling 70-inch TVs in a box at a warehouse club - can you take that home by yourself?
You can, but they also offer some delivery and installation options. People are finding a way to get them in their pickup trucks or minivans, and they are selling well.
Q: Do you foresee the 70-inch becoming obsolete any time soon, dwarfed by the 80-inch or 90-inch?
We have not yet found how big is big enough.
Q: What are you watching at home? How big is your TV?
Right now it's a 50 (inch). I have a 50-inch plasma, but it's time to get the 70 (inch). I'm making sure our retailers first get their orders satisfied, and then I'll be making my purchase.
