Television digest with electronics reports (Jan-Dec 1954)

Trade Report August 7, 1954 JULY UP, TRADE NOW 'COMPETITIVE AS HEU': "Era of fierce competition," is best way we can describe present and upcoming fall-winter trade season as patterns begin to emerge with this week's belated introduction of Philco's new lines. Philco was last * of big-name lines to show (for details, see Topics & Trends), having been delayed \ by 6-v/eek strike during which its inventories fell to all-time low. July proved surprisingly good month, generally — described by one major set maker as "damned good, but competitive as hell." He didn't know whether to attribute it to lower prices currently prevailing or to improvement in general business conditions, said "it probably was a bit of both." Distributor-to-dealer movements in / TV continue good, he said, anticipating a "very good third and fourth quarter." y Trade statistics bear out his appraisal of month just ended, preliminary data • showing factory sales at about 350,000, as against 425,000 in June and 375,000 in > July 1953. Distributor sales are estimated at about 300,000, or about equivalent to I preceding month and to July 1953. Retail sales figures aren't available. They were >> 350.000 in June (regarded as "normal") and 340,000 in July 1953. jfl With July production estimated at 290,000, lowest month of year because of ■ annual plant vacations, month's end saw inventories declining to about 1,930,000 at T all levels — reduction of about 70,000 from June 30. TV production for week ended ^ July 30 was 109,106, compared to 104,252 preceding week and 47,539 week ended July |* 23. For 30 weeks, production was 3,100,000 vs. 4,200,000 in same 1953 period. Radios had comparatively poor movement in July, after a nice pickup in June. t For July, factory sales were estimated at about 525,000, as against 750,000 in June f and 700,000 in July 1953. Distributor sales were 550,000 vs. 900,000 in June and | 750.000 in July 1953. Production was about 425,000. Radio output week ended July t 30 was 144,706 (49,028 auto), compared to 129,234 preceding week and 91,008 units week before. Output in 30 weeks was 5,230,000 vs. 7,265,000 in same 1953 period. Biggest trade news of the week, of course, came out of Philco's N.Y. parley (see pp. 1 & 9). Because it was delayed, it lacked extravaganza aspects of other years, was strictly business — often soaring to high economic plane. Distributors were exhorted by new pres. James H. Carmine to sell monochrome hard, to win more of the market, to "sell for the future." Accenting black-&-white market, he urged recapture of dept, store and furniture store business. Such stores represent high dollar volume, are good dealers, good credits and very standard-brand conscious, he said. He urged top executives to contact big stores personally. "There isn't anything wrong with Philco — or with America — or with anything else that I know of — that a good selling job won't help," said Carmine. Basic conditions are sound and Philco's best days are ahead, he said, quoting Econometrics Institute's forecasts of rapid population growth, increasing number of school-age children, greater consumption of consumer goods, replacement demand for consumer durables, expanded housing, continued high wages. (As if to underscore the economic underpinning of nation. Commerce Dept, this week issued report showing that personal income in first 6 months was at annual rate of $286.5 billion — just about $800,000,000 ahead of 1953, biggest business year in U.S. history.) * * * * Philco also took swipe at discount house operations by disfranchising each distributor and then asking him to sign new contract with factory and his dealers to assure that merchandise is not resold by discounters. Important aspect of new plan, outlined to distributors by new exec, v.p. John M. Otter, strikes at practice of trans-shipping, forcing distributor to buy back goods trans-shipped from his own territory at cost plus freight. 10