www.wifihifi.ca | June 2016

PM42710013

A branding opportunity like no other ...

A branding opportunity

Introducing WiFi HiFi Airstream

• 1967 fully-restored Airstream trailer

There are few things so recognizable or so coveted than a vintage

• Modular interior

Airstream. For the past year, Wifi Hifi has been busy fully restoring a 28-foot 1967 Ambassador Airstream trailer. She has been purposebuilt for shows, festivals, and special events. Ample counter space

• Purpose-built for special events • Interior & exterior signage opportunities

and a modular interior allow her to be used in any way your imagination takes you, including a perfect pop-up store. Here’s an

• Truly one-of-a-kind

opportunity to align your brand with one of the most iconic objects of industrial design. Guaranteed to draw a crowd. How cool is that?

WiFi HiFi Airstream is currently booking events for summer and fall 2016. It doesn’t get any cooler than aligning your brand with the only trailer brand to have a permanent display at the Museum of Modern Art! For more information (or even to tell us what you think), please contact John Thomson at 416-726-3667 or [email protected].

like no other ...

• Mobile…it can go anywhere you want to go • Instantly recognizable attention-getter • Timeless design with high-end interior • Easy set-up indoors and out • Spectacular brand alignment

www.wifihifiAirstream.com

Now that’s pretty cool.

CONTENTS | 20

05

PUBLISHER’S NOTE

06

SHORT BITS

June 2016

The newest products from the business of digital. By Christine Persaud

14

15 GREAT HIGH-END AUDIO PRODUCTS from the Munich High End Show 2016

The Munich High End Show, which took place in early May, was a repository of fantastic audio gear, ranging from the high-priced to the exorbitant, and from the classy to the wacky in design. By David Susilo

20

28

THE MUSICAL BOX: Stepping Back Into Vinyl

Vinyl fans claim analog is better at conveying subtleties like harmonics and ambience than digital. To assess the claim, the author (who went all-digital decades ago), borrowed an audiophile-grade turntable and started listening. By Gordon Brockhouse

28

HANDS-ON REVIEW: Monitor Audio’s CP-IW460X In-Wall Speaker

The author has been on a quest to find in-wall speakers that don’t compromise on sound quality, but fit an accessible budget. Do these $2,500 speakers fit the bill? By David Susilo

30

10 CREATIVE APPLICATIONS FOR VIRTUAL REALITY

When we think virtual reality (VR), we think fun and gaming. But there are more practical applications for the technology, which has the potential to impact manufacturing, medicine, education, and more.

30

By Frank Lenk

32

32

A HIGHER LEVEL: Back-to-School Tech for the College/University Student

While notebooks and headphones are mainstays of the back-to-school season, there are unique opportunities in other product categories, particularly among post-secondary students who will be living away from home. By Christine Persaud

38

FINESSING YOUR FINANCING & FISCALS

A critical part of any small business is financing, and navigating these murky waters can be difficult for a retailer. We’re here to help, breaking down some of the options, and talking strategy with several experts in the CE business. By Wally Hucker

48

TALKING SHOP

Retailers embrace for a new reality with the weak loonie; Sport Chek opens its latest high-tech interactive store; and D&H Canada holds its fourth annual Technology Trade Show, are a few of the featured stories this month.

54

38 4

www.wifihifi.ca

WHO’S DOING WHAT?

Mergers, acquisitions, distribution appointments, and more news from the Canadian consumer technology industry. By Christine Persaud

PUBLISHER’S NOTE

BACK TO SCHOOL, BACK TO VINYL, BACK TO REALITY

PUBLISHER / EDITORIAL DIRECTOR

EARLIER THIS YEAR, I had the opportunity to attend the IFA Global Press Conference in Hong Kong where the topic of virtual reality was discussed. Most pundits agreed that while VR is important, the chances are slim that it will become the next big thing. VR will certainly find an audience in gaming; but for that very reason, it has the potential of becoming marginalized and niche to one market.

John Thomson Cell: 416-726-3667 [email protected] @wifihifimag EDITOR-IN-CHIEF Christine Persaud [email protected] @ChristineTechCA EDITOR-AT-LARGE Gordon Brockhouse [email protected] CREATIVE DIRECTOR David Topping CONTRIBUTORS Vawn Himmelsbach, Wally Hucker, Ted Kritsonis, Frank Lenk, Steve Makris, David Susilo DIRECTOR OF DIGITAL CONTENT James Campbell [email protected] DIRECTOR OF SPECIAL EVENTS Cathy Thomson [email protected] Melsa Media Inc. 194 Robinson Street Oakville, Ontario L6J 1G3 Advertising Inquiries: John Thomson [email protected]

Another concern raised by the presenter is the rapid introduction of cheap headsets driven by smartphones. These lack the bandwidth and resolution to create the fully immersive “VR experience.” I am not a gamer and never will be. But using a headset to tour a great museum, or virtually check out a hotel I am considering booking, certainly has value to me. Think about building a house, where the architect can virtually walk you through your new home, showing you the final result before a shovel has hit the ground. That, too, has great value. The thing about being a pundit at a global conference is that you don’t necessarily have to be right. You just have to express a strong opinion. That got us questioning if VR could, indeed, be the next big thing. So we asked Frank Lenk to share some ideas of how VR could create value outside of the gaming world. His fascinating spread starts on page 30. When Christine Persaud suggested that we should be writing a story on back-to-school in our June issue, I thought she must be going mad! The June issue is the start of summer. Writing about school now is like fashion retailers displaying fall merchandise during the summer’s first heat wave. As she so often is, Christine was right about the timing. Back-to-school buying is currently in full force, and retail buyers were more than happy to give their take for Christine’s story, which starts on page 32. For many suppliers, a successful back-to-school campaign can contribute as much to the bottom line as the holiday season, and the season presents unique opportunities for bricks-and-mortar retailers. But it still just doesn’t feel right covering this when the cherry blossoms are still in bloom! There are few people I know who have taken to digital audio in such a grand, passionate way as Gordon Brockhouse. Over the past few years, Gord has meticulously ripped all his discs in lossless format, and amassed a sizable library of high-res downloads. So imagine my face when Gord suggested he write a story on going back to vinyl. He hasn’t dropped a stylus on a record in almost 30 years! Just as I initially thought of Christine’s back-to-school pitch, I wondered if Gord was having me on. But like many other listeners, Gord has been seduced by the pleasures of analog. I wouldn’t be surprised if he isn’t finagling a way to add a top-line Pro-Ject ’table to his system. You can read about Gord’s journey back to analog starting on page 20.

LET’S STAY IN TOUCH!

Probably one of the tougher articles to execute for this issue was our story on retail financing. It’s a complicated subject with many options available and many companies weighing in on ways to, as the title suggests, “finesse your financials and fiscals.” Delve deep into this topic to learn all about financing and the companies that provide it, and other support services, on page 38.

Website: www.wifihifi.ca / www.wifihifi.com Twitter: twitter.com/wifihifimag Facebook: facebook.com/wifihifimag Instagram: instagram.com/wifihifi

Lastly, you will notice that we have a 1967 Airstream on the cover of this issue. At WiFi HiFi, we are passionate about design and firmly believe that in our fast economy, there is great reward in creating something of value. That’s why we still produce a print magazine when everyone insists we live in a digital economy! People still want to read the analog way.

Copyright 2016. WiFi HiFi is a registered brand of Melsa Media Inc. and is published ten times each year. All rights reserved. The contents of this publication may not be reproduced in whole or in part without the written consent of the publisher. The views expressed by advertisers are not necessarily those held by the publisher.

Publications Mail Agreement Number: PM42710013 Business Number: 81171 8709

It has taken over a year to fully restore our Airstream. Like the magazine, newsletter and Websites, we see “Silver” (as we call her) as one more tool for promoting your brand. We hope you think she looks as cool as we do. We would be thrilled to partner with you at the many festivals and events taking place through the summer and fall. Nothing draws a crowd like a vintage Airstream! As always, we hope you enjoy the issue and thanks for reading. John Thomson [email protected] June 2016

5

SHORT BITS

The newest products from the business of digital.

BY CHRISTINE PERSAUD A Super-Hero TV: LG’s Super UHD TVs include the UH9500, UH8500, and UH7700 series, with models as large as 86”. The displays incorporate in-plane switching (IPS) that helps deliver accurate colour reproduction from a wide viewing angle. They have HDR Super technology that will support High Dynamic Range (HDR) with Dolby Vision. An updated version of LG’s Smart TV platform, webOS 3.0, includes features like the Magic Remote, Magic Mobile Connection and Magic Zoom, a built-in function that can zoom-in on any part of the screen for a clearer picture. Additional features include TruMotion 240Hz; True Black Panel; Ultra Luminance Plus; and a 4K Super Mastering Engine. Lg.ca

Cook n’ Eat Well: Aside from its ability to output delicious and healthy food through four cooking techniques – steam, convection, grilling, and microwave – the Panasonic NN-CS896S Steam Convection Oven is really neat in that you can prepare dishes two ways at the same time on different levels. Using proprietary High-Density Turbo Steam, a high-efficiency boiler, and a powerful fan, users can get oil-free, nutrient-rich, evenly-cooked dishes. There are 19 Auto Cook settings in all; scroll through menus and options using the blue LED display and controls that are incorporated into the door itself to allow for a cleaner look. The Oven can be used on the countertop or built-in with the optional trim kit. MSRP $1,500 Panasonic.ca

Health in a Box: Under Armour and HTC are smartly packaging everything a determined person might need to get started on a quest to get fit, lose weight, or improve overall health with the UA HealthBox. Inside of the beautifully-packaged box is a UA Band for tracking activities, sleep, and resting heart rate; a Bluetooth and Wi-Fi-enabled UA Scale for logging your weight and body fat; and the UA Heart Rate chest strap for keeping tabs on your heart rate as you workout. Keep track of everything through the UA Record app, plus a free subscription to MapMyFitness, and integration with other apps, like MyFitnessPal, for logging your daily food diaries. No more excuses! For someone looking for an all-in, “for dummies” fitness solution, this is literally fitness tech in a box. Check out our in-depth review at Wifihifi.ca. $549 Underarmour.com

weBoost, You Boost: The eqo Cellular Signal Booster

It’s HiFi, Man: The Edition S are HifiMan’s (D2MK Solutions) first on-ear headphones, allowing for both open and closed-back playback. In quiet settings, listeners can remove the logo caps on the back of the earcups for maximum spaciousness and clarity. In noisy environments, enjoy the benefits of a closed-back design by leaving the logo caps in place, which helps seal out external noise. It’s a dynamic design, employing a 50mm driver. With 113db sensitivity and 18Ω impedance, the ‘phones can be powered by portable devices such as smartphones and tablets. It ships with a 1.3-metre iOS/Android cable with inline microphone and control, and a travel case. $350 Hifiman.com 6

www.wifihifi.ca

from weBoost (Hitfar Concepts) promises to offer indoor reception that’s up to 32 times better than your standard cell signal. It’s the company’s first plug-and-play booster that does not require an exterior antenna. Working across all major U.S. and Canadian carrier networks (certified by the 2014 FCC standards and Industry Canada), it can be set up in under a minute: place it in an area where signal is available, plug it into an electrical outlet and connect. A secondary box acts as an antenna. It can amplify the signal in areas up to 1,200 square feet in size. MSRP $500 Weboost.com

Swiffer, Who?: iRobot is moving beyond robotic vacuum cleaners with the Braava jet, which is designed for mopping high-traffic, hard floor surfaces. It has a Vibrating Cleaning Head, Precision Jet Spray and Braava jet Cleaning Pads to lift dirt and stains. It can do wet mopping, damp sweeping, and simple dusting: the robot will automatically determine its cleaning action based on the pad chosen. The Wet Mopping Pad performs a triple-pass cleaning for dirt and stains on well-sealed floors; and Damp Sweeping Pad triggers a double-pass cleaning to capture everyday dirt and dust on sealed wood floors, tile and stone. If you need a single pass to clean dirt, dust, and pet hair, use the Dry Sweeping Pad. Starts at $280, and comes with two of each of the three kinds of cleaning pads; more are available for $12 for a box of 10, or $30 for a box of two washable cleaning pads. Irobot.com

With more than 25 years of innovative compact loudspeaker design, Totem is proud to offer the flexible and totally awesome KIN Mini FLEX. 7KLVXOWUDFRPSDFWXQLWFUHDWHVRQLFODQGVFDSHVWKDWDUHH[WUDODUJHSUHFLVHDQGDUWLFXODWHZLWKSHUIHFWLQSKDVHSURMHFWLRQ$ORQJZLWKWKHŴH[LELOLW\WREH placed everywhere and anywhere, the KIN Mini FLEX offers an immersive and outstanding musical experience. / Discover yours at totemacoustic.com

SHORT BITS

A Battery to Charge 200K Times: Almost by fluke, a researcher at the University of California discovered a way to allow a typical battery to be cycled more than 200,000 times, compared to the usual 5,000-7,000 times. The nanowire-based battery material is coated with a manganese dioxide shell, then covered with an electrolyte made of “Plexiglas-like gel.” The theory is that the gel plasticizes the metal oxide, thus helping to make it more flexible, and prevent it from cracking. Tested Mya Le Thai, leader of the study and doctoral candidate over three months, doctoral candidate Mya Le Thai, at the University of California. (Photo: Steve Zylius / UCI) who leads the study, was able to cycle the battery more than 200,000 times over the 90-day period without detecting any loss of capacity or power. This means a user might finally be able to outlive the life of a device, giving everything from smartphones and computers, to cars and appliances, the ability to last much longer. Universityofcalifornia.edu

Blow You Away: Forget vacuums, air purifiers, and fans. Dyson is moving into your bathroom with its new high-tech take on the blow dryer. The Supersonic Hair Dryer is the product of more than four years of research, and is designed to be easily balanced in the hand, and uses a focused and fast airflow that intelligently controls temperature to help protect your luscious locks from extreme heat damage. As is expected with Dyson, there are carefully considered design details, like a repositioned grille and filter to avoid hair getting caught, and a digital V9 motor positioned in the handle versus the head. And yes, it looks super-cool! August; $500 in fuchsia/iron and white/silver. Dysoncanada.ca

Slick, Smart, Sound: The HTC 10 smartphone focuses on major improvements in performance, audio, and imaging. Key to the device is the 12MP sensor with wide-angle lens for photos and 4K videos, and UltraSelfie camera that can capture shots in low light from both sides. It boasts Hi-Res audio certification, able to play back stereo 24-bit recordings. Use the Personal Audio Profile system to run hearing tests to match your ears, determine which frequencies you don’t hear well, and adjust sound so you can hear elements you might not have been hearing well before. It’s faster than its predecessor, with a more colourful and responsive screen. Use Boost+ to make your phone faster, consume less power, and provide effective security and applications management features. The rapid charger supplies half battery life in just 30 minutes. $1,000 unlocked; exclusive to Bell on contract. Htc.com/ca

An Audio System for the Everyman: Onkyo is catering to the entry-level customer with

Better Manage Your Netflix: If you have a tween or teen, chances are you’ve had the conversation about a massive cellular data overage charge on a bill. And it’s likely attributed to video streaming, from sites like YouTube and, yes, Netflix. The streaming service is now offering a new tool to help users better control how much data they use when streaming on cellular networks. Choose default (average of three hours/gigabyte at 600 kbps), or opt for a higher (about an hour per gigabyte) or lower (about four hours per gigabyte) setting based on your needs (and data package). In the latest version of the Netflix app, select “app settings” and “cellular data usage.” From there, you can adjust as desired. Netflix.ca 8

www.wifihifi.ca

its HT-S3800 5.1 Channel Home Theater System. The compact, 5.1-channel HT-R395 receiver features 100 W/ch analog amplifiers with discrete output circuitry. There are four HDMI inputs and two composite inputs, and it supports 4K/60 Hz, 4:4:4 colour space, HDR, BT.2020, and HDCP 2.2 copy protection. Bluetooth is also included. The micro-speakers, meanwhile, can reproduce lossless multichannel formats such as DTS-HD Master Audio and Dolby TrueHD. There’s also a 100W subwoofer. Additional features include stereo imaging performance with front L/R tone controls; two pairs of digital and analog audio inputs; FM/AM tuner; Onkyo’s AccuEQ calibration suite; and a full-sized simple remote control. MSRP $700 Onkyo.ca

4K-Certified Cables: Metra Home Theater Group has received the DPL Labs Seal of Approval for its MHX-HDME15 and EHV-HD15 15-metre cables, along with 25 other products. The Ethereal and EHD cables are the first 15-metre cables supporting true 4K with 18Gbps Deep Color to be recognized by DPL Labs. Ormond Beach, FL-based DPL Labs puts cables through rigorous testing to determine their performance capabilities, and recognize the most reliable digital-HD available. DPL Labs Seal of Approval is guaranteed to meet or exceed DPL’s standards. Dpllabs.com

Because

Not All UHD TVs are the same.

1 Billion Colours, 1 Brilliant Display The LG SUPER UHD TV provides a superior 4K viewing experience by incorporating several advanced technologies: Colour Prime Plus, TruMotion 240Hz, Ultra Luminance Plus, new IPS panels, and over a Billion Rich Colours. The result? Truly premium Ultra HD.

LGSUPERUHD.ca

SHORT BITS

Going Chrome With USB-C: HP’s Chromebook 13 is ultra-thin (12.9mm) and light (2.86 lbs.), and finished with a durable brushed anodized aluminum chassis. Use the HP USB-C Docking Station to support dual high-definition displays, full-size keyboards, wired networks and charging. It’s also the first Chromebook to use the sixth-generation Intel Core processor. The 13.3” QHD (3,200x1,800) monitor is combined with custom-tuned sound from B&O PLAY. The device offers up to 16GB of memory, and comes with a high-capacity 45 watt-hour battery that delivers up to 11.5 hours of battery life per charge. When a charge is needed, the Chromebook 13 features USB-C fast charging using the included adapter, or on-the-go charging via other USB-C power adapters, or even a phone charger. Starts at US$500; Canadian pricing TBA. Hp.ca

Simple Smartphone-ing: If you aren’t looking for a premium smartphone, but still want a feature-rich device, the Samsung Galaxy J1 boasts a pared down feature set. This includes a 4.5” Super AMOLED screen, quick launch camera, 5MP front camera, and long-lasting battery. The phone has 1GB of RAM; and the Ultra-Power Saving Mode to maximize battery life: with a 10% charge, you can still receive calls and texts for up to 24 hours. It comes in black. Samsung.ca

Connect and Watch: Pioneer’s VSX-1131 network AV receiver offers full-bandwidth HDMI connectivity and support for HDCP 2.2, allowing pass-through of UHD 4Kp60 4:4:4 video with HDR and BT.2020 colour. It has built-in Wi-Fi and Bluetooth, and wireless multi-room sound based on the FireConnect system developed by Blackfire Research. The 7.2-channel receiver also adds Dolby Atmos and DTS:X support via firmware update. It also offers powered Zone 2 output and Zone 2 pre-out. Rated power is 7x100 watts (20Hz-20kHz, 8Ω, 0.08% THD, two channels driven). Additional support is available for Google Cast and Apple AirPlay. US$600, Canadian pricing TBA. Pioneerelectronics.ca

Get Naked and Fit: The Naked Labs 3D Fitness Tracker comes with

It’s All Rock ‘n Roll: Looking for a good book to read this summer? Check out Radio, Records & Rockstars from Jeff Woods, best known as Canada’s voice for classic rock, and for the 14 years he spent as host of the radio show The Legends of Classic Rock, from 2001 to 2015. He takes you deep into the depths of the music world, recalling intimate stories not only of his own personal life, but also from his many (many!) interviews with some of the greatest classic rock musicians – from the late David Bowie, to Rolling Stones, Pink Floyd, Led Zeppelin, Bob Seger, and more. His first work of non-fiction, it’s close to 400-pages full of first-hand accounts and exclusive interviews that any music lover will appreciate. Stay tuned to our July/August summer issue for a sneak-peek into the novel...if you don’t snag it up before then, that is! $40 in print, ebook, or audio book format. Jeffwoodsradio.com 10

www.wifihifi.ca

a full-length 3D scanning mirror and scale that doubles as a turntable. Step on the scale, and it will rotate 360-degrees to create a 3D scan of your body. The data is synced to the app where you can see the image, extract measurements, accurate body fat percentage, and weight. A 3D heat map shows changes to your body geometry over time, highlighted in a different colour, so you can note areas of your body where you are gaining muscle or losing fat. Create a custom time-lapse to see how your body changes as you attempt to lose weight, gain muscle, or even go through the stages of pregnancy. When you don’t feel like stripping down, the mirror functions as a standard one, and the turntable as a basic scale – no wires needed. Pre-order for US$500; March 2017. Naked.fit

FUN APP: Sing! Karaoke by Smule Want to let out your inner Mariah or Prince? Use this iOS or Android app to record yourself singing a tune, complete with scrolling lyrics, and a follow-up score based on how well you hit the notes. Or, collaborate with friends or other users to sing (and record) a passionate duet. The first song is free, then purchase tracks as you feel compelled to go retro and sing Celine’s My Heart Will Go On, or belt out a current hit, like Charlie Puth’s One Call Away. There are selections for kids, too, like The Little Mermaid’s Under the Sea. In some cases, you can join a song collaboration for free. But to sing solo, you’ll get seven days at no charge, then $3.99 for a week, $10 for a month, or $54.99/yr. Want to get a group party started? Download the Apple TV version to display lyrics on your big screen, and use your iPhone as the mic! Smule.com

SPONSORED SHORT BITS

The Ultimate Pedestal: To keep desk time productivity up at the office or studying for an exam, an organized desk is key, which means streamlining your cable management for computers, phones and tablets. HiRise Deluxe by TwelveSouth is a beautiful metal pedestal for charging that docks your device for hands-free use of your iPhone, iPad and almost anything else with a Lightning connection. Placing your device on the HiRise allows for hands-free calls, perfectly positioned FaceTime sessions or use this small stand to stay charged while streaming music to your favorite speaker. You’ll never be searching for the cord under your desk again. MFI-certified Lightning cable and Micro-USB included. $79.99 Available through Atlantia.ca Night Vision X Sound: Boompods latest Bluetooth sports headphones, sportpods vision, feature a unique illuminating integrated headband with 3 light modes to keep you visible at night. IPX 6 rated, so sweat resistant and rain proof with a secure fit during even the most punishing of activities. An integrated mic, volume and track control enables you to adjust your volume, skip songs and take calls at the touch of a button. AND not forgetting the awesome sound with deep base and rich tones. Comes with a sturdy carry case and available in 4 colours, green, red, orange and blue. $99.99 Available through Atlantia.ca

Stay Charged on the Go: Logiix Piston Power 3400. The Piston Power is a sleek and attractive, ultra-compact portable battery that you can carry wherever you go. The powerful 3400mAh Sanyo powered battery inside the Piston Power has enough juice to charge most smartphones up to 1.5 times. Available in 5 gorgeous metallix shades. $34.95 Available through Atlantia.ca

Head Back to School in Style: Your phone is your most personal accessory, so why not make it as stylish as you? Sonix offers fashionable and unique phone cases that are made to withstand the wear and tear of everyday life. Based out of Los Angeles, Sonix is a quality-driven accessories brand specializing in distinctively cool fashion accessories for the style conscious girl. Through their development and growth, Sonix has rapidly transitioned into one of the first stylish case companies to successfully pioneer numerous printing techniques on cases, including metallic foiling and color-tinting. Every collection is mindfully designed to follow along with the latest fashion trends, allowing you to keep your phone stylish at all times. Today, Sonix has expanded into multiple fashion categories, including sunglasses, pouches and other tech accessories. $44.99 Available through Atlantia.ca

2 3

Design Driven: STM makes a variety of laptop bags, packs, fitted tablet and phone cases, all designed to make life a bit more worry free. In early 2016, STM acquired the brand and distribution rights for premium case maker Element Case. Inspired by the hot bed of tech, urban culture, and active lifestyle, these brands create true and honest designs. Available through Atlantia.ca 1. STM dux plus case for iPad Pro — #1 best selling case $74.99 2. STM Drifter 15” backpack — full featured & thoughtful $179.99 3. Element Case Ronin for iPhone 6/6s — made with high quality woods and top grain leather $249.99 12

www.wifihifi.ca

1

SPONSORED SHORT BITS

Never Be Late for Class Again! The Tucano Dark Slim Hard Bag is the perfect solution for the student who is on-the-go and wants to cut down on unnecessary bulkiness of backpacks. It has a semi-hard rear shell made from high-density EVA which prevents your Macbook (up to 13”) from being damaged during transport. It also has built-in elastic straps inside to hold your Macbook in place during usage. It’s compact design and quick access gives students the ability to pack up and go in seconds! $74.99 Available through Atlantia.ca

High Fashion to Higher Education: Every Tucano case and bag is designed to amaze through colour, quality, and practicality. Tucano finds inspiration by drawing on the influences of one of the world’s epicenters for fashion and design, Milan. The Tugò Travel Backpack is no exception. With travelling students in mind, the Tugò bag has a front padded compartment to protect your notebook and to give you quick access during airport check-in. The bag is designed to fit the maximum size of carry-on luggage allowed by airlines making it perfect for any student studying abroad and returning home. $109.99 Available through Atlantia.ca

Share Your Sound: The Blue Piston tuneFRĒQS Share are high performance in-ear headphones with inline mic & music controls, and a built in splitter! Scratch-resistant polycarbonate and flat cables make the tuneFRĒQS Share the ultimate sharing headphones and will provide you with the sound that you need. $29.95 Available through Atlantia.ca

The Last Cable You Will Ever Buy: The Logiix Piston Connect STEEL is an ultra durable 1.5M steel braided cable. This cable is sleek, virtually unbreakable and extremely convenient; providing you with extra length and mobility. The FlexCoil™ reinforcement, case-friendly step-up, tangle-free braided cord and reversible USB connector make for the added convenience of fitting most cases. Piston Connect STEEL is an excellent companion for your lifestyle and your device. $49.95 Available through Atlantia.ca

Next Level Convenience: Take your iPad Pro 9.7” to the next level with the ZAGG Slim Book. Its wireless Bluetooth® design pairs with up to three devices at a time and can work both connected or separated from your iPad Pro for total convenience. A multi-angled hinge gives you the perfect viewing angle every time while its ultrathin design is easy to carry when you’re on the go. Backlit keys in seven different colors brighten typing in low-light conditions. With Keyboard, Video, Case, and Book modes, the Slim Book gives you the world’s best mobile typing experience. $129.99 Available through Atlantia.ca

June 2016

13

15 GREAT HIGH-END

AUDIO PRODUCTS

from the Munich High End Show 2016 BY DAVID SUSILO

There were thousands of products showcased at the Munich High End 2016 audio show in early May, many that sounded fantastic, plenty that looked great, and some that could make your jaw drop because of their weird aesthetics, the exorbitant price tag or, quite often, both. With that said, here are 15 notable high-end products showcased at the event, including fantastic audio components, wacky-designed speakers, and other great gear to quench the thirst of a passionate audiophile.

2 

Torus Power Power Conditioner

Although Torus didn’t have its own booth, the Canadian-made power conditioning products were prominent throughout the show. While most companies had Torus Power tucked away in a hidden area of their booths, some companies, like Mark Levinson, showcased the products more openly. Regardless, it truly shows that clean power is one of many important necessities in any serious system. Also, the fact that most vendors used the brand emphasizes that it’s the brand to buy. I’ve been using the Torus Power AVR15+ for the past couple of years in my dedicated home theatre/listening room. Although the total cost of my gear is only $50,000 (small change in the high-end world), this $3,000 piece of gear vastly improves the sound quality. It’s a true testament that regardless of the price of your gear, clean power is an absolute must.

1 

JMF Audio DMT 3.7 Blu-ray Audio Player

Direct from France, JMF Audio’s Blu-ray Audio player is the world’s first dedicated Blu-ray Audio player that also includes SACD playback and network capabilities. Unlike most optical players on the market, the optical mechanism/transport is made of machined aluminum that’s designed to reduce internal vibration to a minimum. The transport also uses a top-loading mechanism to further reduce the vibration usually caused by the tray mechanism in many optical readers. To ensure quality control even further, all components are hand soldered and inspected individually.  The player also includes S/PDIF digital output, AES/EBU digital output, LAN and USB ports for its streaming capabilities (and iDevices control). At $7,500 it is definitely not considered “budget audiophile” gear. But when it comes to sonic quality, it is the best dedicated Blu-ray Audio player I’ve listened to thus far.

Torus Power AVR15+

3 

Cyrus ONE Integrated Amplifier

Tired of having a stack of equipment on your desk? At an affordable $1,500, the Cyrus ONE (distributed in Canada by Kevro International) comes fully-equipped with built-in MM Phono stage, Bluetooth aptX, four line level inputs, Home Theatre AV bypass, 100 Watts-per-channel class D amplifier, automatic Speaker Impedance Detection, and a giant toroidal transformer providing power to 11 separate sub-power supplies for its various internal circuits. It also includes a Class AB headphone amplifier.

14

www.wifihifi.ca

MUNICH 2016: HIGH-END AUDIO TOP 15

4 

TechDAS Air Force One Turntable

Irrespective of arm or cartridge used, the Air Force One turntable from this Japanese company is second-to-none. With its air suspension, air bearing and vacuum LP hold-down, it exhibits great accuracy. The air suspension creates a frictionless air gap between the platter and the base of its motor so the platter is in a constant floating state. The use of air bearing means zero friction is produced, reducing wow and flutter down to zero. A computer-controlled speed control adjusts the speed by +/- 10% with a resolution of 0.1% accuracy. To my knowledge, there is no turntable that comes close to that accuracy. Last, the platter has an air vacuum suction mechanism that sucks down a disc when you put it on the platter in order to create the flattest playback surface possible. With zero friction, zero wow and flutter, and an absolutely flat playback surface, this turntable is fantastic both from subjective listening and objective measuring tests. Even at $200,000, it’s worth every penny.

5 

Smyth Research Realiser A16

Canadian inventor Michael Smyth demonstrated the soon-to-be-released Realiser A16. The unit offers personalized 3D audio for headphones, which can emulate up to 16 speakers in a sound room over regular stereo headphones. It comes equipped with four HDMI inputs, an optical input, USB 2.0 input, and even 16-channel analog inputs. During the listening demo, I couldn’t tell that the sound I was hearing was from a pair of headphones. The emulation is so realistic that I thought it was coming from the dummy speakers positioned around me. Originally priced at $15,000, this version will be available for approximately $1,500, with built-in capability to render object audio formats such as Dolby Atmos, Auro3D and DTS:X. In fact, the technology is so effective that DTS employs it as the basis of the company’s Headphone:X technology, which was first showcased at CES several years ago.

7 

TransRotor Metropolis FMD

This gold-plated giant sculpture of a turntable is the latest offering from TransRotor. The Metropolis FMD comes complete with a perfectly-matched phono pre-amp, gimbals, and pendulum-like counter weights to create a ridiculously solid turntable that’s free of unwanted vibration. Available in both polished chrome or gold-plated (as shown), this piece of artwork comes with price tags of $200,000 and $250,000, respectively. Of course, at that price level, the turntable is individually handmade and tuned to perfection. Overkill? If you want the best of the best, you have to pay to play.

16

www.wifihifi.ca

6 

DSPeaker Antimode 4X Room Correction

Finally, two-channel audiophiles are starting to embrace room calibration. Most companies are introducing their own versions, but they are either proprietary or are priced tremendously out of reach for most audiophiles. The most affordable, yet still considered the most effective, room correction hails from DSPeaker. It’s brand-agnostic, so you can buy the room correction modules and mix it up with your sound system to achieve near-perfect room acoustics. Following the success of its AntiMode 2.0 Dual Core room optimization hardware, DSPeaker launched the Antimode X4. It can run optimization for a twochannel system running stereo-configuration subwoofers by also including digital crossover, which will eliminate harmonic distortion in the frequency domain and phase distortion in the time domain. With the headphone jack, output can be calibrated using DSPeakers’ proprietary processing to improve the sound stage and smooth out frequency response, in return relieving listening fatigue. Another big improvement: a fully-calibrated, studio class balanced (XLR) microphone with 48V phantom-power instead of the generic microphones used in earlier models. Price is TBA, but expected to be around $3,000; a small price to pay for a perfectly-tuned system. If you only need two-channel room correction without crossovers, phase control and stereo-subwoofer calibration, the Antimode 2.0 Dual Core is $1,200.

MUNICH 2016: HIGH-END AUDIO TOP 15

8 

Astell & Kern Accessory-Suite

Astell & Kern has been the staple for portable audio player for years. This year, the company released a suite of accessories that bring it further head and shoulders above the competition. Not only is this a playback unit, but with the optional CD ripper, one can rip a CD directly to an A&K player, and the player will retrieve all of the title metadata from the Internet, making ripping CDs to the A&K device a one-step process. Second, the company introduced an analog stage module where you can either record line-level to your A&K from your reel-to-reel or a turntable, or, if you are into recoding live music, use the two microphone inputs with mini XLR to make your own HiRes live recording. You can also now dock your A&K unit to make it a home player as opposed to a portable one, complete with a remote control module. Plus, there’s a headphone amp module so you can use more power-demanding headphones for your listening pleasure. The media player costs $5,000 and the accessories range from $500 for the CD ripper to $1,000 for the analog module.

9 

IsoAcoustics

Good sound is about control. Control the acoustics (now with the aid of DSP room correction), control the source (by getting the best quality music available), control the power sources (by using power regenerators such as Torus, noted above), and last, which most people tend to forget: control the speaker vibration. Markham, ON-based IsoAcoustics’ speaker isolation stands were originally introduced for production studios. However, the products have crossed over to the consumer high-end audio realm. IsoAcoustics outlines three main approaches to making any speaker sound measurably better: Placement, Isolation, and Focus. By using IsoAcoustics stands, the speakers will be decoupled from the supporting surface, which reduces the excess energy from exciting other objects and allows the speaker and enclosure to float independently. They may look a tad too industrial for some, but once you listen to your favourite speakers using IsoAcoustics, there’s no turning back. Depending on the model, the price starts at $120.

10 

SimAudio ACE

The back-to-basics movement was alive and well at the show. Seeing the trend that more and more audiophiles no longer have the luxury of space in their homes (especially in European countries), Canada’s SimAudio introduced ACE. This unit is an audiophile-class integrated amplifier with a built-in class A/B amplifier at 50 watts-per-channel, and a Moving Magnet photo stage. It has a streamer that’s compatible with MiND, TIDAL and Bluetooth, USB input with 32-bit DSD compatibility at 384 kHz oversampling, is fully controllable from an iPhone and iPad, and is built like a tank. At the projected price of $3,000 this unit was one of the most affordable audiophile pieces I saw at the show.

11

Audio Vector upgrade program

If you are an audiophile like me, you’re probably constantly upgrading your system as new technologies and gear is released. However, selling older gear can leave a big hole in your pocket due to depreciation, or being low-balled by a buyer. AudioVector is taking those bad experiences out of the equation. For as long as you own an AudioVector speaker, you can upgrade by paying the MSRP price difference between the one you already own and the one you’d like as an upgrade. For a small handling fee, they will even haul your old speakers away and deliver you the new ones. Each speaker has a goldplated folded ribbon tweeter, and simple crossover. Each individual enclosure is hand-finished by a VW AG paint specialist who’s used to dealing with custom painting Porsche, Lamborghini, and Audi vehicles. Pricing starts at a mere $3,000/pr. June 2016

17

MUNICH 2016: HIGH-END AUDIO TOP 15

12 

Acapella BassoNobile

These are horn speakers for people who hate horn speakers. The BassoNobile (Tricell Enterprises) do not sound like typical horn speakers that tend to be on the harsh, and sometimes brash, side. Using a different style of horn molding, the Acapella speaker lineup in general (and the BassoNobile in particular) sound amazingly open and airy. Listening to various choral and orchestral pieces at the show, it was difficult for me to localize the speakers with my eyes closed. On the other hand, when playing back Gloria Estefan’s Everlasting Love and Hold Me, Thrill Me, Kiss Me, the imaging was perfect – her voice was locked right in the middle, with the band spread across the soundfield with great precision. These speakers are extremely efficient, with a rating of 93dB, making them one of the least power-hungry high-end speakers on the market. The price is still to be determined, but is estimated to be in the $50,000 range.

13 

AER Pnoe Speakers

These speakers may look wacky, but they performed well beyond my expectations. Usually, the wackier the design, the more limitations. Sometimes in imaging, sometimes in frequency response, but usually in the preferred listening area (I don’t call it “sweet spot” as “sweet spot” is...well, a spot). These speakers, however, don’t sacrifice on imaging quality or frequency response, and definitely not on the preferred listening area. In fact, the Pnoe speakers from AER have such a large sweet spot that I refer to it as the “sweet area.” Even sitting aligned with the right speaker, the presence of the left channel can be heard clearly. The cutting-edge horn design and the innovative fiberglass construction lend the speaker depth and dynamics otherwise only known from subwoofer and tower speaker combos. AER incorporates its proprietary room correction in order to achieve a near-perfect frequency response for the listeners. At $36,000, consider a purchase as buying a piece of technological art instead of just a pair of speakers.

15 

14 

Martin Logan Renaissance

This is not your dad’s Martin Logan speaker. This is a new, slimmer, and much-improved Martin Logan speaker that can now work in smaller-sized rooms. The older “Logans” were much larger in size and, due to their panel curvature and dispersion angle, would only work in much larger rooms. Bass response has been vastly improved over the previous renditions, too. The woofer section of these speakers are powered by dual 500-watt Class-D amplifiers, and controlled by a 24-Bit Vojtko DSP Engine and Anthem Room Correction. Using two 12-inch laser-engineered low-distortion aluminum cone woofers in independently enclosed compact chambers, exclusive PoweredForce Forward bass alignment technology controls the interaction between the rear-firing woofer and the wall behind that woofer.

Totem Element Fire

After showcasing the Element Metal last year, Montreal’s Totem Acoustics demonstrated the Element Fire at the 2016 event. Just like the rest of the Element series, the Fire is unique in its architectural design and geometric conception. Its multi-angled enclosure displays no apparent parallel lines, perceptually defying the laws of perspective. The speakers use seven-inch Torrent hand-assembled drivers, and bi-wireable platinum WBT connectors with no cross-over part in the woofer section in order to obtain the most faithful audio reproduction. Also, the design fits perfectly for smaller homes common in the European region, condos and even studio monitors where the distance between the back of the speakers to the wall tend to be around a foot or less. At the projected price of $6,000, these speakers will fit into most audiophiles’ budgets.

18

www.wifihifi.ca

YOUR VALUE ADDED DISTRIBUTOR With AVAD, you have an extremely wide selection of top products in the industry, pre-vetted to work together, for both residential and commercial applications. But that’s just a mere fraction of what makes AVAD so special.

FULL DEDICATED SUPPORT · Dedicated sales team with toll free calling and almost no wait times/busy signals · Dedicated tech support and system design teams · Experience centers with functional demonstrations · Quick will call processing - saving you time which is money

CARRYING THESE HIGHLY SOUGHT AFTER BRANDS AND MANY MORE

AVAD CARRIES NEST AND ‘WORKS WITH NEST PRODUCTS’

FEATURING VENDOPALOOZA The one-day trade show offering local dealers and integrators an exclusive opportunity to meet directly and interact with the industry’s leading manufacturers and service providers. Vendopalooza attendees have the unique benefit of demoing the latest products, participating in prize giveaways and raffles, attend training classes and purchasing products at special pricing.

AVAD goes beyond just phone and email with valuable website resources, social media networks and trained staff. Learn more by visiting www.avadcanada.ca or asking an AVAD associate at a branch near you. IMPRESS YOUR CLIENTS AND STAND APART FROM YOUR COMPETITION WITH AVAD.

NOT AN AVAD DEALER? WHAT ARE YOU WAITING FOR?

accelerating your success | 866.523.2823 | www.avadcanada.ca Best Brands | North American Distribution | Dealer Education | Experience Centres

THE MUSICAL BOX:

Stepping Back into

BY GORDON BROCKHOUSE

Vinyl

It’s the sound of anticipation, of something wonderful about to happen. You hear a quick transient, followed by a two-second whoosh. And then music. Until very recently, it had been almost three decades since I last heard the sound of a stylus dropping onto a vinyl LP in my own home. I bailed on analog back in the ’80s, and have been immersed in digital audio ever since. Today, my whole music library is on a LaCie RAID array connected to a Mac Mini running the Audirvana Plus 2.5 audio player. I can operate the whole shebang from an iPhone or iPad using the Audirvana Remote app. You can’t be involved in this industry and be unaware of the surging interest in analog. Even so, I was surprised by the numbers. Whitby, ON-based Essential Audio Corp. distributed Pro-

THE STORY Vinyl isn’t a hipster fad that will go away. Turntable sales have been surging for over a decade, and the growth shows no sign of abating. Vinyl fans claim analog sounds warmer than digital, and is better at conveying subtleties like harmonics and ambience. Does analog really sound better than digital? To find out, the author (who went all-digital decades ago), borrowed an audiophile-grade turntable and started listening. After playing LPs for several weeks, the author, who’s big into computer audio, thinks there might be a turntable in his future.

20

www.wifihifi.ca

Ject turntables from 2003 until mid-2015, when Gentec International took over the line. “We used to bring in a couple of pallets a month – 60 to 90 pieces,” says Kurt Martens, Founder and President of Essential Audio. “Last year, we were bringing in two 40-foot containers a month – 1,200 to 1,500 turntables.” Martens continues to operate Essential Audio, which distributes Ortofon cartridges, Spin-Clean record cleaners and Lehmann electronics. He also acts as an outside consultant for Gentec, providing dealer training and conducting seminars. The audiences at Martens’ seminars have changed radically over the years. “It used to be an older generation,” he says, “people who had an old Dual or Technics turntable and had never stopped playing records. Now we see young kids, 16 to 25 years old, with backpacks and MP3 players who are looking to buy a turntable. Instead of buying a turntable to play records they already have, they’re building a collection from scratch. Now the audience is a microcosm of people on the street. Vinyl is becoming mainstream again.”

MAMA DON’T TAKE MY KODACHROME AWAY So analog isn’t a hipster fad that will go away? “I don’t have a crystal ball,” Martens responds. But he sees a lot of reasons to think that vinyl has staying power, one being the physicality of the format. As convenient as digital is, there’s something satisfying about putting a record on a turntable and reading the album cover while you listen. As

Martens observes, “Some people like reading a book, some prefer a Kindle.” But the big draw is sound quality. “I can’t explain it from a mathematical standpoint, but analog sounds more natural,” Martens maintains. “It has a visceral quality that is missing in digital.” Adds Michel Rousseau, Technical Support Manager for Montreal-based Plurison, Canadian distributor for Rega, Music Hall and Clearaudio turntables: “Vinyl contains a lot more information than a CD or even a high-resolution download. Overtones are richer. Room ambience is much more present. Digital has greater stereo separation and dynamic range. But on analog, instruments have better sustain and greater harmonic integrity. There’s a warmth that digital doesn’t quite achieve.” I’ve been hearing these claims for years, but I have to confess that I’ve never bought into them. Then a couple of years ago, an unexpected insight cast the analog-digital debate in a new light. My daughter had set off for the Nevada dessert for the annual Burning Man festival. I offered to lend her a digital camera, but she insisted on using disposable film cameras to record her adventures. Even though I was sure that the pictures would be disappointing, and that photofinishing would be a needless expense, I understood her not wanting to expose a modern digital camera to blowing sand and searing heat. Being shot through cheap plastic optics at fixed exposures, her pictures lacked contrast and sharpness, much as I expected. But they also had a hard-to-identify quality I found strangely appealing. Then it hit me: maybe it was the medium itself. Was the random grain structure in these analog images (clearly visible in my daughter’s photos) somehow more natural than the fixed-grid pattern of a digital picture? That seemed hard to believe, because with any digital camera made in the last decade, resolution is so high that the underlying grid pattern is far beyond human perception. Yet for some reason, my daughter’s flawed analog images had a feeling of life that made technically superior digital images seem a touch sterile. Could the same be true with sound? Is the continuous yet random nature of grooves in a vinyl record (or magnetic particles on analog tape) somehow closer to life than a numerical representation, with fixed sampling frequency and bit depth? That question made me want to revisit analog.

REGRETS, I’VE HAD A FEW It had been more than a quarter century since I had gone digital. After the Compact Disc made its debut in 1983, I continued to buy LPs, spinning them on

ANALOG AUDIO

a Dunlop Systemdek IIX belt-drive turntable and Ortofon VMS-20 phono cartridge. It took me five years to succumb to CD’s perfect-sound-forever siren song. Feeling the need to be au courant, I took the digital plunge in 1988, adding a brandnew Denon DCD 1510 to my system. I was seduced, not just by the new medium’s pristine sound, but by its ease of use. Say what you want: vinyl is a fussy format, and requires a careful attention to detail. Before you listen to music, you have to clean the record and stylus; and you have to make sure the ’table is perfectly set up. I was a busy guy (places to go, stories to write), and I didn’t have the patience for these rituals. Most of all, I liked the modernity of the new format: the shiny discs, the Denon’s retracting disc drawer, the random-access programmability. A few months after my digital conversion, I sold my Systemdek and 500-plus LP collection, reasoning that they weren’t getting much use anymore. The proceeds went toward CD versions of some of my favourite albums, and some new music. But basically, I was building a music library from scratch. Rash? Ill-considered? You betcha. Stupid? A little strong, but not unjust. While I’ve come to regret selling my analog music, it doesn’t crack the top 10 of idiotic things I’ve done during my three score and five years of earthly existence. Hell, it doesn’t even crack the top 100. An underlying motive was a wish to live lightly, to not be encumbered by too much stuff. And it’s paid off. I’ve moved house six times in the past 28 years; that’s a lot of heavy boxes that I didn’t have to pack and unpack. True, I did accumulate a sizable CD library (and later SACD); but they were easier to transport. Moreover, by the time of my most recent move, I had ripped all of my CDs. To get this music to my current abode, I just had to move my Mac Mini. (I’ve since ripped my SACDs, so I no longer have any shiny discs with music.) Something I’ve never done is second-guess my analog exit on sonic grounds. I know what the haters say: digital sounds harsh, clinical, lifeless. I’ve certainly heard CDs where all those adjectives apply. But I’ve also heard many wonderful sounding CDs where you just get lost in the music. Digital isn’t fatally flawed: far from it.

GETTING BETTER ALL THE TIME A lot of early CDs did sound crappy, partly because they were rushed to market at the insistence of the suits at the big labels. But fairly quickly, engineers learned to add digital dither to recordings June 2016

21

ANALOG AUDIO

to minimize low-level non-linearity that added a layer of harshness, and robbed music of air and space. Recording tools steadily improved. Digital recordings are now made at higher sampling rates and bit depths, which leaves more mathematical headroom for mixing and processing. There have certainly been setbacks, notably the widespread use of dynamic compression to make music sound louder (squeezing out dynamic contrast and drama), and digital compression to make it more efficient to distribute (often squeezing out air and ambience). There have been advances too: notably the move to file-based playback, high-res digital downloads (with high-res streaming waiting in the wings), and the introduction of affordable, high-performing DACs for playback from computers and mobile devices. But analog has not been standing still. Raw materials have improved, and machining has become more precise. As Rousseau explains, on a belt-drive ’table, harder materials machined to micron-level precision translate to “reduced surface friction right at the main bearing, which means less noise fed into the platter. Now the cartridge just has to deal with the vinyl. Today’s turntables have much better signal-to-noise than 20 or 30 years ago.” Improvements have made right through the chain. Tonearms are more rigid, with quieter bearings. That’s important. “Any spurious movement such as tonearm flexing or bearing noise will smear or obscure musical information,” Rousseau explains.

Cartridges with carefully cut diamonds can reach deeper into the groove, so that even on an older damaged record, they’re extracting what Rousseau calls “virgin information.” The improvements extend beyond the stylus. As Martens observes, cartridge manufacturers can now use powerful neodymium magnets, for better signal-to-noise. The records have improved too. Today’s music lovers have access to a growing catalog of audiophile pressings. Not only are they heavier than conventional LPs (typically 180g), for less groove noise and vinyl chatter, they’re mastered better. With classic recordings, engineers often go back to the original master tapes. They have more sophisticated tools at their disposal, such as computerized read-ahead cutting lathes that can adjust groove modulation to match what’s coming up next.

its listings, many are sold by third parties, and many are out of stock with long ship times, this is an impressive number. And there’s excellent variety, including recent albums by the likes of Kendrick Lamar and Adele, and classic titles by groups like Pink Floyd and Fleetwood Mac.

FOUR SIDES NOW

Many audio retailers who sell turntables also sell records. Not only is vinyl a profit centre, it’s also a traffic builder. “It brings people into the store,” Martens notes. “That’s why they change their selection often.” Used record stores are springing up everywhere. Original versions of classic LPs have become collectors’ items, and command greater sums than new audiophile versions of the same music. For this article, I spent many happy hours browsing used record stores in downtown Toronto, and came back with a few treasures. Even though I later found some of the same stuff on TIDAL, I really liked reliving the record-store experience, and finding records I didn’t know existed (such as a 1972 release by the jazz icon Earl “Fatha” Hines, see below). I also liked reliving the analog listening experience, reading album covers and liner notes while music played through the speakers. Of course, you can get a similar experience with digital too: reading record reviews and artist bios on a tablet while you listen.

Quite a number of new vinyl records are released on two LPs to allow for wider grooves, with less noise and mistracking. This raises an interesting point. Analog fans maintain that vinyl requires more focus, because people typically listen to a full side of an LP. Digital, on the other hand, encourages ADHD-like hopping from one song to another, with less focus on the music. But it plays both ways. With digital, I can listen to a full album, or a full opera for that matter, without having to flip sides. As Martens observes, the vinyl catalog is now vast. Amazon.ca lists over 500,000 vinyl LPs. Even though there are lots of duplications in

Turntables have made a huge comeback in the mainstream market. Vinyl is no longer just an audiophile format. Kurt Martens President, Essential Audio Corp.

SPIN THE BLACK CIRCLE

Pro-Ject’s 1Xpression Carbon Classic turntable, used for this test, comes with an Ortofon 2M Silver cartridge pre-installed in a carbonfibre tonearm. Setup of the $1,200 ’table is dead simple.

22

www.wifihifi.ca

Enjoyable as they are, reading album covers and browsing record stores are secondary to the main question: does analog sound better than digital? There was only one way to answer that question (if it can be answered at all): listen. For this article, Gentec supplied me with a Pro-Ject 1Xpression Carbon Classic belt-drive turntable, with Orofon 2M Silver cartridge pre-installed. Retailing for $1,200 complete with cartridge, the 1Xpression has an 8.6” carbonfibre tonearm, aluminum sandwich platter, and a

We’ve missed you too. It’s time to take a closer look at our full assortment of integrated amplifiers and HiFi components.

¥

www.yamaha.ca

ANALOG AUDIO

stainless steel main bearing housed in a bronze bushing with Teflon bottom. Unlike many turntables, the 1Xpression Carbon Classic comes with a dust cover. I didn’t need a phono preamp, as there’s one already built into my Simaudio Moon Neo 340i integrated amplifier. Because I didn’t have to undertake the fiddly task of fitting the cartridge in the arm, and setting azimuth and vertical tracking angle, setup was easy-peasy. All it involved was fitting the belt around the motor pulley, putting the platter in place, adjusting tracking force, and installing the little hanging anti-skating weight. The most time-consuming chore was adjusting the turntable’s three leveling feet. Total time from opening the box to connecting the phono cables was about 15 minutes. Now it was time to spin some vinyl. Some of my listening was out loud, through KEF LS50 monitors. And some was private listening, through HiFiMAN Edition X headphones connected to the 340i’s headphone output. I started with a 180g pressing of Supertramp’s Crime of the Century (kindly supplied by Gentec’s Dick Tuerlings), and albums by John Coltrane, Bob Dylan, Billie Holiday, Annie Lennox and Diana Krall (lent to me by WiFi HiFi Publisher John Thomson).

PLAY ME MY SONG, HERE IT COMES AGAIN This casual listening was a pleasant preamble to the task at hand, comparing some of the analog records at my disposal with digital versions of the same music. Digital playback was from my Mac Mini running Audirvana Plus 2.5 connected via USB to the 340i’s built-in DAC. I used Audirvana to play music from my digital library, and also to stream from TIDAL. I started with an old favourite. Van Morrison, Moondance: The 180g vinyl LP sounded sounded smooth, inviting and altogether natural – definitely better than I remember this 1970 classic ever sounding. Then I switched to a CD rip in ALAC format. It wasn’t awful, but it was definitely harsher than the LP. On the CD rip, there was a raspy edge around Morrison’s voice that wasn’t present on the album. Instead of a full stereo image with air and space around the instruments, individual instruments and voices were arrayed between the speakers, without anything around them. Everything was less embodied and organic. My first thought was: the haters are right! Digital may not suck, but it doesn’t match analog. My second was, better listen to some other stuff before jumping to conclusions. 24

www.wifihifi.ca

Cécile McLorin Salvant, WomanChild: The digital version of this supremely talented jazz singer’s Grammy-nominated 2014 album was a 16/44.1 ALAC file ripped from CD. The analog version was a 180g four-sided audiophile pressing that I bought brand new for $28. Both were immensely enjoyable. On the digital version, the bass was snappier and more impactful, and the piano a bit more incisive. But the presentation on the analog version was a more organic, and Salvant’s voice seemed more embodied. The sound was smoother, yet more rhythmic. Despite the occasional click, slight popcorn noise, and mild mistracking on the inner grooves, I preferred the LP. Truthfully, I find it impossible to resist getting lost in either version. Earl Hines, Fatha & His Flock on Tour: This delightful album was recorded at the Berlin Jazz Festival in 1970. I bought the European pressing on the BASF label in a used record store in downtown Toronto for $3.50. The record was in very good condition, just short of pristine. The same album is also available on TIDAL. There’s no way of knowing how it was mastered, but I preferred the lossless digital stream. Not only was bass more impactful and snappy, the presentation was smoother and more inviting. The LP sounded a little more brittle, and the overall presentation was less coherent. But the LP did have more energy and drive. Both were very enjoyable, and I really liked reading Stanley Dance’s insightful liner notes on the LP.

Compared to a CD rip, a 180g audiophile pressing of Cécile McLorin Salvant Grammynominated jazz album WomanChild sounded a bit warmer and more organic, but the digital version was a little more incisive.

Jennifer Warnes, Famous Blue Raincoat: The digital version of this 1986 classic was a 16/44.1 ALAC rip from CD; the analog version was a used LP in good condition that I picked up for $7 at a store two blocks from my home. The CD rip had more drive and energy, while the LP sounded smoother and more organic. By comparison, the CD rip was a little sterile-sounding. I preferred the LP by a slight margin. Mozart Clarinet Concerto, Jack Brymer, Academy of St Martin-in-the-Fields, Neville Marriner: The analog version was a used Philips LP that I bought for $7. The digital version was a CD-resolution stream from TIDAL. Sonically, it was a virtual coin-toss. The LP seemed very slightly warmer, the digital stream a touch more incisive. Were it not for the occasional tick and pop on the LP, I’d be very hard-pressed to tell the difference in a blind test. The slight flaws on the excellent Netherlands pressing were offset by the excellent liner notes. Moondancing Again: After all these near-cointosses, I had some niggling doubts about my experience with Moondance. I don’t know what version of the Moondance CD I had ripped, but it definitely was not the 2013 remastered version. Many early CD transfers of classic albums were problematic. Could that have been the case here? I decided to conduct another comparison, this time with a 24/192 download from HDtracks. The high-resolution stereo remaster (which set

T TU RNT

ION

S

3UR-HFW$XGLR6\VWHPVKDVEHHQSHUIHFWLQJWKHDUWRIWKHWXUQWDEOHWKURXJKWZHQW\ȴYH\HDUVRI innovation. Based in Austria, with precision engineering and advanced manufacturing in the Czech 5HSXEOLF3UR-HFW$XGLR6\VWHPVLVWKHOHDGLQJVXSSOLHURIWXUQWDEOHVDQGKLȴFRPSRQHQWV Oh ya, it comes with a dust cover.

Distributed in Canada exclusively by Gentec International 905.513.7733 • [email protected] • gentec-intl.com

ES

•

O • PR

-J

BL

A

EC

25 Y E

OF REVOL UT

RS

A

ANALOG AUDIO

me back US$26) was made by the original album engineer Elliot Scheiner. The high-res download was as smooth and inviting as the LP (or almost), but there was more energy, more life. The stereo image was as convincing. The bass guitar and drums were better defined, and the interplay between musicians was better conveyed. For example, the sudden entrance of an acoustic guitar on the far left side during the title track came through more dramatically. The raspy edge around Morrison’s voice that bothered me on the CD rip was gone. Of course, with the download (and the rip), I didn’t get the experience of reading the evocative short story (“The Fable”) on the album cover while I listened to the record.

TAKEAWAYS Comparing analog and digital playback is clearly an apples-versus-oranges exercise. Not only that, there are too many varieties of apples and oranges to reach a definitive conclusion.

One variable was the playback chain. The 1Xpression Carbon Classic is a very capable turntable; but in my system, there’s more upside in analog than in digital. It would be interesting to move up the analog food chain and repeat this experiment. I certainly think a turntable is in my future, but it’ll be something a little more revealing. I’m thinking of a ProJect 2Xperieince and Ortofon Quintet Bronze cartridge; or maybe a Clearaudio Concept or Rega RP6. In many cases I found myself preferring vinyl when I was listening for my own pleasure. The biggest variable though wasn’t the playback format. It was the provenance of the recording; witness my experience with Moondance. For convenience, for having a small footprint, I prefer digital. I’ve embraced computer audio and highres digital, so I can enjoy these benefits along with excellent sound. But high-res digital isn’t for everyone. “Compared to vinyl, a very small percentage of the

market is into high-res,” Martens maintains. “For many people, high-res digital is too complicated. Most people use Spotify for everyday convenience. Then when they get home, the vinyl records come out.” Analog has its own complications. You have to be computer-savvy to delve very deeply into computer audio. But you have to be mechanically adept to set up a turntable properly. Of course, turntable setup is a service that dealers can and do provide. It’s not practical for them to provide that kind of assistance with computer audio. When it comes to installing the special software required for high-res playback, and navigating the different online stores that sell high-res music, consumers are basically on their own. From this exercise, it’s become clear to me that the vinyl revival has real foundations. “Turntables have made a huge comeback in the mainstream market,” Martens concludes. “Vinyl is no longer just an audiophile format.”

Photo courtesy of the Estate Of David Gahr

Compared to a 180g audiophile LP, a CD rip of Van Morrison’s Moondance sounded harsh and disembodied. Does that mean the digital haters are right? Definitely not, because a newly remastered 24/192 download from HDtracks sounded wonderful.

26

www.wifihifi.ca

INNOVATIVE BRANDS IN PERSONAL HEALTH, WELLNESS AND ELECTRONICS

FNBJM
DTFSWJDF!IPNFEJDTHSPVQDB
t
5PMM
'SFF


to bending stress and therefore exhibit much greater fidelity over their entire operating range. Further, the golf-ball surface (RST noted above) reduces air turbulence to a minimum, making the cones able to move faster, and more accurately, which then results in measurably better sound reproduction over a regular cone.

Listening Tests

HANDS-ON REVIEW

Monitor Audio’s CP-IW460X In-Wall Speaker Where the In-Wall Meets the Audiophile BY DAVID SUSILO UNLIKE MOST PEOPLE with a dedicated home theatre, I actually prefer not to have a bunch of speakers visible around the room. The problem, however, is that I have yet to find in-wall speakers that don’t compromise on sound quality and fit my budget. While there are many that sound amazing, purchasing them even for a basic 5.1 configuration would cost the same as a fullyloaded Mercedes GLC class! At the price I am willing to spend, most in-wall speaker systems are designed for home theatre applications, and offer serious-listening music reproduction below my minimum threshold of acceptability. So when Monitor Audio was launching its new CP-IW460X, they challenged me to give it a go.

The Speaker Design The CP-IW460X in-wall speakers combine Monitor Audio’s latest drivers in compact(ish) three-way, five-driver configurations, built into closed-box designs to deliver optimum audio performance. This way, the internal construction of your wall will not play that big of a role in the overall speakers performance; be it a 7.5’ or 12’ wall height. The enclosure volume is constant, and controlled by the closed-box approach. 28

www.wifihifi.ca

Beyond the closed-box construction, which consists of cast polymer as the back box and cast aluminum as the baffle, the CP-IW460X features Monitor Audio driver technologies, including the signature C-CAM (Ceramic-Coated Aluminum/ Magnesium) cone material with RST (Rigid Surface Technology) deployed in dual 6.5” bass drivers. Ceramic-Coated Aluminum/Magnesium is a material originally developed by the aerospace industry for jet engine components. Its properties are ideal for making loudspeaker cones extremely rigid, yet light enough to yield high overall efficiency. According to Monitor Audio, in manufacture, aluminum/magnesium alloy undergoes a three-stage stress-relieving process to remove surface deformation and molecular weakness. Once formed, the alloy cone is subjected to a high temperature anodic coating process in which a layer of pure ceramic alumina is depleted onto its surfaces to a depth of 50 microns, producing a completely rigid sandwich of alloy and heat-dissipating ceramic material. Conventional cones (usually made of paper and/or woven materials such as Kevlar and carbon fibre) are liable to flexing during their operation, producing a significant level of audible distortion. C-CAM cones have a much higher resistance

For my listening tests, I used a Pioneer Elite SC-95 receiver and NAD C316BEE integrated amp. For sources, I used a NAD C 546BEE CD player (with built-in Wolfson WM-8740 DAC) and Oppo BDP103D Blu-ray player. All cables and interconnects were from Kimber Kable. I ran the speakers with Pioneer’s Advanced MCACC (for the receiver) which, as per usual, really smoothed out the bass response in my listening room. I deactivated my subwoofer and did the tests using a 2.0 configuration. For surround sound, I deliberately used a 4.1 configuration to test how well these speakers reproduce a phantom centre channel. The first thing that struck me when listening to music with the CP-IW460X speakers, regardless of the receiver/integrated amp used, was their amazing sense of imaging. They are able to recreate a large soundstage but, at the same time, provide an exceptional amount of accuracy and multi-layered details. I never found myself focusing on one speaker or the other. Instead, I was always engrossed in the sound that was beautifully-positioned in front of me. At times, the imaging spread so wide, I thought I was listening to a surround track. Every song from Emilie-Claire Barlow’s The Beat Goes On CD sounded alive. The vocals were forward and intimate without any hint of the in-your-face brashness you might find with other speakers in a similar price range. Double bass sounded like, well, double bass. With every bass drum kick, I could hear not only the bass-drum frequency, but also the mallet hitting the drum skin. That’s impressive, particularly from speakers with enclosures that are only about 10” wide, 35” tall and 4” deep; and even more impressive coming from an in-wall system. The CP-IW460X Rigid Surface Technology (RST) woofer profile demonstrates how a very light material (such as these C-CAM drivers) can be strengthened and made more rigid through small and precise dimples on its surface. The woofers produced a mind-bogglingly realistic bass response that blended with the music without ever overpowering the performance. Details in the music, and in Barlow’s voice, were abun-

PROS Devilishly amazing sound quality, even for two-channel music reproduction. dant, and the CP-IW460X just disappeared into the background. Playing my collection of Tony Bennett CDs, the CP-IW460X easily allowed the crooner to be centre stage in my listening room, without the use of an actual centre channel speaker. Vocals were exceptionally textured and notes lingered effortlessly as he sang his top hits. His voice was always “locked in” smack dab in the middle, flanked between the two in walls as if there was a third speaker installed in between the CP-IW460Xs. There was clear placement of instruments in the soundstage. From the detail in the acoustic piano, to the snap of the drums and double bass, and at times the orchestra, the CP-IW460X did an amazing job of bringing to life the warmth of these wonderful tunes. These speakers have the ability to virtually put the musicians in my room. I was pleasantly surprised that I could listen to the CP-IW460X for upwards of 10 hours without experiencing the listening fatigue that often happens with far too many speaker systems, regardless of volume. I attribute that pleasing experience to the wide dispersion of Monitor Audio’s proprietary ribbon tweeter design, which uses an ultra-thin sandwich of C-CAM alloy suspended in a powerful transverse magnetic field of high-energy magnets. And the crossover design plays a role as well. For high-resolution music content, I played the must-have Blu-ray disc titled Chris Botti in Boston. This concert was performed with the Boston Pops Orchestra in 2008, and features perfor-

mances with artists such as Sting, Josh Groban, Yo-Yo Ma, Katherine McPhee, and Steven Tyler. In addition to gorgeous video, the disc contains a reference quality 7.1-channel (96 kHz/24 bit) Dolby TrueHD soundtrack. There is easily something for everyone. When McPhee performs I’ve Got You Under My Skin with Botti, the CP-IW460X (with the SA Aura 30 for the rear channels) formed an expansive soundstage that showcased not only how good the performers are, but also the greatness of the recording and the reproduction capability of these speakers. On the chapter where Botti and Tyler perform a rendition of Charlie Chaplin’s Smile, the CP-IW460X captured Tyler’s coarse but expressive voice wonderfully, interplayed astoundingly with Botti’s trumpet performance. The CP-IW460X rendered each note from every vocalist and instrument with ease. The high notes never sounded harsh and the long, slow notes from the trumpet and the picking on the guitar would effortlessly linger in the room and then quietly fade until another magical note took its place. The overall experience was mesmerizing. I was really pleased with how well the CP-IW460X was able to create a strong, natural bass response without a subwoofer; I never felt as though I was lacking anything from the sonic range. I was also impressed with how well the CP-IW460X blended with my System Audio Aura 30 towers (used as surrounds) into the surround sound stage. I’ve never had the luxury of having a separate room for music and another for home theatre. And

Solidly-constructed and built with Monitor Audio’s performance drivers. Integrated back-box to provide rear sound isolation resulting in ‘controlled performance’ regardless of the depth and height of the wall.

CONS Heavy at near 30 lbs. Metal grille is a tad too flimsy for my taste. It’s somewhat expensive, but still considered “affordable audiophile.”

I’ve always felt that speakers that perform for music should do just fine for movies as well. I was definitely not disappointed with the CP-IW460X when it came to movies. Using various Blu-ray Discs, such as music-based Pitch Perfect 2, dialoguecentric The Revenant, and the action-packed Deadpool, the CP-IW460X performed extremely well in terms of bass response, imaging, and overall vocal clarity. Dialogue in each film was produced with great detail and neutrality, even without a centre channel. I was shocked at just how much bass was coming from these in-walls. The CP-IW460X had zero trouble producing bass down to 60Hz (based on my RTA reading), and grabbed my attention from scene to scene. From the mayhem of people shouting during a scene in The Revenant, to the crashing of buildings and the pounding synthesizer bass lines in Deadpool that could be felt throughout the room, the CP-IW460X managed to effectively recreate these movies in all their respective glory.

The Verdict These are the first in-wall speakers I can actually say are good enough to replace standalone speakers for both home theatre and two-channel applications. At $2,500, they aren’t cheap. But for the quality, the asking price is decent, and still classifies them as “affordable audiophile speakers.” June 2016

29

10 CREATIVE APPLICATIONS FOR

VIRTUAL REALITY

BY FRANK LENK

VIRTUAL REALITY (VR) is in a startup phase, with products like the Oculus Rift (Facebook), HTC Vive, Samsung Gear VR, and Google Cardboard already on the market. But the installed base is still tiny, and content is targeting early adopters, especially gamers. That said, a vast array of VR applications beyond gaming and entertainment is already in development. And as technology advances, the full potential of VR can be unleashed. While radically new applications are being dreamed up every day, here are some of the most significant VR applications we’ll be seeing over the next year or two.

1 Virtual Events and Meetups

30

www.wifihifi.ca

4 Medicine

Users can view 360-degree videos and photos in Facebook news feeds using a VR headset, on a flat display, or on a mobile device, which can be rotated to ‘look around’ intuitively. Instead of posting a handful of photos from a tradeshow, then, a company could post a VR version of its booth. Organizations can document events in VR. Companies can take advantage of the impact of VR for promotions. Facebook has released open-source camera designs, clearly in hopes of jump-starting a VR content escalation.

Cancer specialists at the University of Southern California (USC) are using VR to ‘get inside’ cancer cells, in hopes of seeing new ways to disrupt them. Doctors can use VR to examine CT and CAT scans in a whole new way, possibly spotting things that might otherwise have been missed. Another project at USC is applying VR for rehabilitation, in the Bravemind system for treatment of post-traumatic stress disorder (PTSD). A program called Virtual Iraq/Virtual Afghanistan allows veterans to re-enter the wartime environment “under very safe and controlled conditions.” There’s also work being done with VR for treatment of phobias, and for allowing disabled users to re-learn skills through applications such as a VR driving simulator.

3 Simulation and Training

5 Enhancing Simulations

At NASA, virtual environments are a perfect way to train astronauts at minimal cost. Individuals can run through refueling procedures on the International Space Station, drive a lunar rover, or practice using special tools in microgravity. NASA

There are many projects underway that add ‘haptic’ gear to the experience, letting you reach out and touch someone, or something, virtual. The most futuristic would be the AxonSuit, from Seattle-

2 Sharing Content via 360-Degree Videos

Photo: NASA

An early version of Facebook’s Social VR system allows participants separated by many miles to meet and interact in a 3D virtual world (based on London, England, in the demos). There could be endless uses for this: we might expect promotions, political activism, conferences, and lots of pictures of cats. Other projects are coming at it from different directions. For example,

AltspaceVR (AltspaceVR Inc.) is a simpler platform that helps people host their own virtual events: meetings, lectures or friendly gatherings.

is also combining VR with 3D printed objects, to add physical interactions that match the visual experience. Despite the futuristic application, none of this is rocket science. NASA’s VR applications are largely built using stock consumer components, such as Nvidia graphics cards, HTC Vive headsets, and Unreal 3D gaming software.

with Touch, Haptic Feedback

based AxonVR. The idea, a clear challenge, is to create a tight-fitting suit that can deliver sensations of pressure, hot and cold, all over your body. A more realistic goal is the Dexta Robotics set of Dexmo VR ‘gloves’ that can track hand motion for intuitive input and provide haptic feedback. Dexta claims users will be able to feel how rigid an object is, or sense the click of a trigger under their finger. This would be a significant game changer in applications such as medicine or remote repair, or complex simulations.

around the grounds. The Body VR is an application for the Oculus Rift, allowing users to travel through the human bloodstream, or enter a cell and see how it works. Universe Sandbox is a simulation, recently enhanced for the HTC Vive, showing the physics of objects in outer space. All sorts of educational tools are on the way: interactive lessons, training simulations, video tutorials, and more. Systems like Lecture VR will wrap all this up in virtual classrooms, giving a whole new meaning to the term ‘distance learning.’

6 Location-based Promotions

8 Engineering and Design

The big studios have been setting up touring VR experiences for their upcoming movie releases. These allow visitors to experience first-hand the shift to an alternate reality, as in the film Tomorrowland. Or let them cling to the side of an air transport like Tom Cruise in Mission Impossible: Rogue Nation. The feeling of flying is further enhanced by suspending participants in a harness while fans blow a realistic airstream at them. We’re going to see a lot more of these tightly-focused experiences popping up at shopping malls and parking lots, promoting all kinds of products and services.

Car design has a lot to gain here, given its combination of engineering, ergonomics and aesthetics. Ford has been showing how VR lets engineers sculpt a new car, then get a sense of its look and feel, and use the same precise data to 3D print prototypes or manufacture final parts. Some of the most popular computer-aided design (CAD) software packages are not yet compatible with the new VR headsets, but this gap will be closed swiftly enough. Meanwhile, architects working on longer timeframes and bigger budgets can easily justify a bit of file conversion, in exchange for the ability to visualize a major building project.

7 Education VR can bring most any subject to life far more vividly than a lecture or textbook. A project at Toronto’s Old Fort York uses inexpensive Google Cardboard headsets to show computer re-enactments of historical events at various places

9 In-store Sales Audi has created a virtual showroom to demo its latest high-end models. BMW is offering VR simulations, emphasizing the experience of driving its cars. Firms such as IA Interior Architects

are giving clients VR tours of buildings that haven’t been built yet. Toronto condo specialists Lifestyle Custom Homes has been using a system from Invent Dev, which turns floor plans into VR walkthroughs. More-mundane products can also benefit. Ikea stores are starting to use VR to show assembled furniture in a variety of settings. Thermador cookware has been implementing a series of VR demos, using inexpensive GearVR headsets and non-stereoscopic spherical video. These short demos are designed to guide customers to real-world cooking classes at more fully-equipped Thermador locations.

10 Access to Extreme Situations VR is sure to be useful in any job that requires spatial awareness, complex manual interactions – and a significant amount of physical danger. The ability to control drones through a VR interface isn’t here yet, but companies such Palo Alto-based Augmented Pixels are working on it. They’ve been experimenting with not just a visual interface to let the pilot see what the drone sees, but also intuitive motion control, replacing cumbersome joysticks and touchpads. Possible applications might include guiding the robots used to investigate nuclear disaster sites such as Chernobyl and Fukushima. Or flying drones into dangerous earthquake or fire zones, to search for survivors and strategize rescue work. The term first-personview (FPV) drones has been coined; we may be hearing a lot more of it in the next few years.

June 2016

31

A HIGHER LEVEL:

Back-to-School Tech for the College/University Student BY CHRISTINE PERSAUD

32

www.wifihifi.ca

After chatting with his two university-bound children, Greg Tobin, General Manager at D&H Canada, was left bewildered at how much technology plays a role in their experiences at school. From educational apps, to collaborative services like Skype, online webinars, computers, and more, the days of textbooks, notebooks, pens and paper getting a student through his post-secondary education are long over.

MOBILE WORLD

Preparing for college or university, especially if the student is leaving home for the first time, involves loading up with all kinds of gear to help meet the changing needs of the school environment, and start this next chapter in life. This poses tremendous opportunities for retailers, particularly during the six-week period in August and September before and after the new school year begins, known as the back-toschool season. And technology is a key part of the equation. Millennials have grown up with technology, and know nothing but. Meanwhile, the education system is embracing it. So for students to keep up, a decent laptop and a smartphone alone won’t cut it.

NPD Canada, 2014 was the first growth period we had seen in several years. So even that slight decline was still good news for the industry. Google Canada’s Back-to-School Trends Report for 2015 found that the top-rising technology-related searches in 2015 were: Apple Watch, IPTV box, Samsung gear, selfie stick, Android watch, Xiaomi, Raspberry Pie, privacy screen, Android box, and wireless charger. This points to trends (and opportunities) far beyond just a computer and a trendy pair of Chelsea boots. So what will these post-secondary students need to get them ready for a new school year?

RINGING THE BELL

At the heart of any college/university experience is, as noted, the notebook. But student needs and desires are shifting in that category. Last year, notebooks represented 45% of the revenue generated from the IT space during the back-to-school period, reports Darrel Ryce, Director, Technology and Entertainment at NPD Canada. “[They are] the strongest-selling category in terms of generating revenue. I don’t see any category being bigger than notebooks for backto-school.” And while he notes that sales were flat in 2015 compared to 2014, it was still relative “good performance” given the growth in 2014. While consumers, in general, might not be upgrading their notebooks as often as they used to, a student heading off to university is a perfect excuse to grab a new PC to send along with him. This year, fuelled by devices like the Microsoft Surface, convertible 2-in-1 computers are poised to be hot sellers. They combine the functionality of a full-fledged computer, with a removable screen that can double as a touch-screen tablet. “They are among the most popular with students,” confirms Rick Gaigneur, Supervisor for the Computer Sales Centre at the University of New Brunswick (UNB), “and they are seeing more adoption every day.” But the elephant in the computing room is Apple: last year, MacBooks accounted for about a third of the volume for notebooks, says Ryce. Apple will undoubtedly keep a strong hold of its loyal customers, and is sure to generate healthy numbers once again. But the company’s 2014 decision to pull out of all campus stores across Canada shifted focus in that retail sector toward Windows-based PCs. At the time, Apple sources said it was “financially unviable” to continue that strategy, arguing that most students were buying online or through major

In 2015, the U.S. National Retail Foundation (NRF) forecasted that back-to-school spending would reach US$68 billion, with the average family spending US$630 on mostly clothing and electronics. While the 2015 back-to-school season in Canada saw a 7% decline in revenue sales for the IT space when compared to the year prior, according to

Photo courtesy of Microsoft

The Microsoft Surface 2-in-1 notebook and other such convertible devices are attractive to students because they offer the full-functionality of a Windows-based computer with the portable capability of a touch-screen tablet.

THE APPLE EFFECT & THE RISE OF THE 2-IN-1 CONVERTIBLE PC

big box chains. Tom Cairns, Account Executive at Xcel Source Corp. and Campus Bookstore Representative for the Toronto-based distributor, says campus bookstores were hit hard by the decision, and most were forced to rethink their strategies. Not only in terms of the hardware, but the accessories they offered as well. There was millions of dollars [of Apple gear] going through the campus stores in just about every institution in Canada, says Gaigneur. Though it was low-margin sales, the volume meant stores were still looking at losing a significant profit. “It’s been rough,” he adds. “Some stores didn’t make it at all.” The good news: this opened the door for Windows-based vendors. And it’s been a winwin. “The machines coming out from a number of companies are competing very favourably with the Apple products,” says Gaigneur, adding that since so many things are now done on the Internet, the actual platform doesn’t matter so much anymore. “The key is for equipment to be “smaller, lighter, and more powerful,” says Tobin, suggesting that the sweet spot is a device with a 12” or 14” screen and keyboard. “It has to be large enough that you can spend hours working on it, but light enough that you can carry it around everywhere, whether it’s your friend’s house, or the cafeteria or study hall.” But there’s a downside to this trend: tablets are falling victim to the rise of the 2-in-1 convertible PC. Interestingly, when we spoke with Ryce just before the back-to-school season two years ago, he referred to tablets as a “bright spot,” show-

THE STORY While notebooks and headphones are mainstays of the back-to-school retail business, other tech products are rising up in importance for the student crowd. This back-to-school season, students will be looking for essentially anything that helps them “be more mobile.” The university/college crowd presents unique opportunities for bricks-andmortar retailers; parents view shopping for their child for the new school year as an “event” that can’t be replicated by clicking a few buttons online.

June 2016

33

MOBILE WORLD

ing 16% revenue growth and unit sales up 40%. Things have certainly changed. Today, while Ryce says tablets still sit within the top-five IT products for the season, he wouldn’t be surprised to see them drop off the list. “We haven’t seen any significant changes in technology,” he says. “If you bought one last year, or the year before or even before that, it’s still going to work fine today.” What’s more, as Gaigneur points out, students often need to be able to run specific programs for their courses, which cannot be done from a tablet. Even in the K-12 education market, tablets are quickly being replaced. There, it’s by Chromebooks, where sales through distribution are up 83% in the past year, reports Ryce. Over 132,000 units have been sold into the education market. Revenue growth is also up 74%. Last year, during the backto-school timeframe, sales of Chromebooks outside of distribution nearly doubled with growth of 83%. Pete Gibel, Senior Vice President, Merchandising at Staples, notes that while tablet sales are down, higher-end models, like the iPad Pro, may strike a chord with some students. But he, too, believes that 2-in-1 convertible devices will be driving the category this year. What about desktops? Interestingly, while Ryce says customers are also spending on desktops, Gaigneau says that, in the campus store market at least, they’re “essentially dead.” That is, unless the student is studying in a niche area, like animation and video production, or he’s a big gamer. But while students aren’t spending big dough on desktops, they are still buying up monitors. For a college-age kid living in a dorm, having a TV isn’t feasible. A monitor can be used as a larger screen for work, and double for entertainment as well, like gaming, or streaming/viewing TV shows and movies. According to Ryce, monitor sales were up 5% during the 2015 back-to-school season. On the software end, the shift to downloaded and cloud-based offerings means boxed titles will likely see a decline. What’s more, Gaigneur notes that most institutions offer programs like Microsoft Office as a free download on their Websites for students, negating the need to buy software at all.

COMPUTING PERIPHERALS There’s some disagreement in terms of which computing accessories and peripheral categories are growing and which are declining. Either way, it will require a shift in thinking to better serve students. 34

www.wifihifi.ca

While Beats headphones resonate well with students, there’s room for other brands that offer compelling features. The $140 JBL E40BT (Erikson Consumer) are wireless, and include ShareMe that allows the wearer to wirelessly share what he’s listening to with a friend wearing another pair, whether it’s music during downtime, or online lectures and webinars.

Wireless keyboards are a hit with students. Belkin’s Mobile Wireless Keyboard can accommodate and simultaneously connect to two 10” devices at once. The kickstand props up the devices, and doubles as a protective case for the keyboard.

Basic low-cost but high-margin accessories like cables are essential for post-secondary students, particularly those moving into shared housing. The Moshi 99MO023126 high-speed HDMI cable (Cesium) measures six-feet long, and can be used to connect a television, gaming console, or media player.

“If you look at volume,” says Ryce, “flash memory will be right at the top.” In addition to USB drives at 16 and 32GB capacities, Staples’ Gibel also expects hard drives to perform well, with 2TB being a sweet spot. Gaigneur agrees, though he believes we may see a decline going forward as students move toward cloud-based storage services like DropBox and OneDrive. Ink cartridges generate a lot of volume and revenue, says Ryce: they were up 2% in 2015 from 2014. Multi-function printers, he adds, were up an impressive 14%. “Students are leaving home, and parents are sending them off with the printer and a few cartridges to get them through the semester,” he explains. “The printing market is a US$40 billion industry,” adds Brian Baltezore, Product Manager, Consumer Imaging Division, at Epson America, Inc. “and it’s been steady over the past few years.” Epson will be focusing this year on promoting two of its EcoTank printers to students and teachers: the ET-2550 and the ET-4550. Both come with ink refills that can be inserted into reservoirs, and last for up to two years. There’s a higher up-front cost (the ET-2550 is $480 and the ET-4550 is $600) but significant savings in the long run. “If a student understands the math, and can afford to pay upfront,” says Baltezore, “it’s a better value for them.” Replacement ink cartridges work out to about the same cost as standard cartridges: $62 for a full set. But Gaigneur says campus stores are seeing a marked decrease in the sale of printers and related accessories. It’s no surprise, given that many schools will accept essay submissions in electronic format, and more quizzes and course syllabuses are available online. But, notes Baltezore, “we’ve been hearing about the paperless office and the paperless college for years and years. People are finding that they still like, in most cases, to have a hard copy to edit and share and take notes on and save.” And other features are making printers more attractive to students, like wireless and remote printing capabilities: the former allows printing from anywhere within the home (or dorm) from a smartphone or tablet, while the latter allows users to send a print job remotely using the Epson Connect app. “Traditional PC printing,” says Baltezore, “is transitioning over to mobile devices.” In addition to continued strong and consistent sales of calculators, Tobin feels styli will be on the rise. “Just as they say the pen is mightier than the sword,” he muses, “the stylus is mightier than the pen.” With apps like LiveScribe, users

NEW SUPERTANK PRINTERS

in the Cartridge-Free Printing Includes up to 2 Years of Ink box 1

Introducing the EcoTank line of Supertank Printers Epson’s new EcoTank line of Supertank all-in-one printers features revolutionary ink replacement technology that offers an unbeatable combination of convenience and value, with super-high-capacity, refillable ink tanks and ultra low-cost replacement inks. These all-inone printers come with enough ink in the box to print for up to 2 years1, so you can print thousands of black and colour pages before replacing ink. Includes enough ink to print up to:

Expression®

ET-2550

4,000 6,500 Black Colour Pages Pages 2

Wireless • Print • Copy • Scan

2

WorkForce®

ET-4550 Wireless • Print • Copy • Scan Fax • Ethernet

Includes enough ink to print up to:

11,000 8,500 Black Colour Pages Pages 2

2

SAVE UP TO 80% ON INK with low-cost replacement ink bottles3 Learn more at

epson.ca/ecotank 1 Based on average monthly print volumes of about 150 pages (ET-2500, ET-2550, ET-4500), 300 pages (ET-4550), and 800 pages (WF-R4640). | 2 Yields based on the ISO/IEC 24712 pattern with Epson’s methodology. Actual ink yields will vary considerably for reasons including images printed, print settings, temperature and humidity. Yields may be lower when printing infrequently or predominantly with one ink colour. All ink colours are used for printing and printer maintenance, and all colours must be available for printing. For more information, visit www.epson.ca/inkinfo | 3 Savings comparison based on the purchase cost of replacement ink bottles and the cost of enough cartridges to achieve the total page yields of the bottles using the manufacturers’ online prices and yields for the highest capacity cartridges for the best selling consumer inkjet printers priced $499 or less per NPD, June 2015. Actual savings will vary based on print tasks, print volumes and usage conditions.

MOBILE WORLD

can take notes directly into a storage device, and use dictation apps. With text-to-speech, “you can sit and make your mac & cheese and have the text application read chapters of your book to you,” he says. While unglamorous, cables are a necessary part of the post-secondary student’s setup. When a child is leaving the nest to set up home in a dorm or shared house, says Ryce, parents will need to get them a network cable, and maybe even HDMI. Mice and Bluetooth keyboards are on the shopping list as well, Gaigneur adds. Ryce says keyboard sales (especially for gaming) were up 11% last year.

Samsung is one of many vendors offering Windowsbased computer/tablet hybrids; its new TabPro S runs on Windows 10 Pro, and comes equipped with a full-size ergonomic keyboard with trackpad and 12” Super AMOLED touch-screen display.

HELPING STUDENTS ‘GO MOBILE’ IS KEY All with whom we spoke agree that the biggest categories this season will be anything that assists a student in being more “mobile.” Part and parcel with that is connectivity. The changing way students consume, store, and acquire content actually plays beautifully into the networking business. Students moving into a shared home will need a router to support the constant stream of online activity, like course webinars or lectures, Skyping with classmates and family, downloading materials, and streaming video, both for school and entertainment. “The biggest change will be digital content in the curriculum,” says Tobin. “And we’ll see trickle-down effects because people will need more bandwidth, wireless infrastructure, and storage capabilities.” Beyond connectivity, headphones will continue to be on the back-to-school customer’s radar, as will portable Bluetooth speakers. With the former, Beats maintains its brand power among millennials. (Yes, students, or at least their parents, will shell out $300 for a pair of Beats headphones.) “For students,” says Gibel, “there’s definitely a cache with the brand. It’s like a fashion item.” “Millennials respond to brands that engage them on social media,” says Cairns, “and Beats has accomplished that.” In campus stores, more affordable headphones perform well, particularly as a backup purchase if the student forgot his pair at home. The rise in the use of services like Skype has also brought attention to headsets, notes Gaigneur. With portable Bluetooth speakers, Gibel anticipates a good back-to-school peak, particularly with the Bose SoundDock. “SoundDocks are going crazy,” he says. 36

www.wifihifi.ca

While Epson’s EcoTank printers require a higher upfront cost, the ink only needs to be replaced every two years (!), eliminating both the recurring cost of ink cartridges, and the need to go out and buy them – two advantages any student can appreciate.

Styli, like the Adonit Jot Dash (Atlantia) can make note-taking on a tablet (or a convertible device) during class much easier.

Cairns believes that while entry-level Bluetooth speakers may level off, there’s opportunity for growth at the higher end of the spectrum, with rugged and high-fashion models, for instance. While smartphone sales don’t necessarily rise during back-to-school, accessories for them do; notably, portable charging banks that can charge more than one device at a time; cables; and, to a degree, protective cases. What isn’t resonating with students, however, are wearables. Whether that’s the result of price points, functionality, or both, the category just isn’t there yet.

DOWNTIME ENTERTAINMENT Examining some of the anticipated high-growth categories, one might wonder, as Ryce muses, whether we’re paying for our kids to go to school to learn, or have fun. But we all deserve downtime, right? And gaming, movies, TV, and music, offer a welcome respite from days and nights full of gruelling school assignments. Terms like “Android box” and “IPTV box” noted on the aforementioned Google Trends tech searches list, suggest that students are seeking out cheap ways to watch television. This presents opportunities to promote streaming boxes and sticks, like the Google Chromecast or Roku Streaming Stick; or Android boxes like the MyGica ATV line of media players. Those that aren’t squeezed into a tiny dorm may also be willing to shell out for a small-screen TV so they can not only stream content for viewing by a large group, but also access local and live cable or satellite service, to catch the home team hockey game, or the local news. Ryce says 32” models tend to resonate best, likely due to both size and affordability. Given that college-age students also happen to be the target gamer demographic, the tie-in with gaming peripheral sales during back-to-school is not surprising. Gear like gaming mice and keyboards, says both Gibel and Gaigneur, typically peak during this time. “There’s a trend,” says Gibel, “back to the old traditional PC gaming.”

THE LAPTOP BACKPACK

Appealing to both network needs and design sensibilities, the D-Link DIR-879 AC 1900 Exo Wi-Fi router makes it easy for students in shared housing to connect multiple devices; SmartConnect technology automatically assigns connected devices the best band for optimal wireless performance.

Naturally, whatever gear a student is carrying, a good backpack will be a necessity. “They walk around with backpacks all day, almost every day,” notes Gaigneur. “Far more than the typical business traveler.” While laptop protection is critical, if a bag has an appealing brand and style, says Cairns, protection will be less of a factor in the decision. Gaigneur

MOBILE WORLD

agrees on the importance of fashion. “Corporate black,” he says, “isn’t going to cut it with students unless it has something to make it a little bit prettier.” But strength, durability, and padding are also factors in the purchase decision. And spaciousness is key. “The more you can get into a bag,” says Cairns, “the better.” In addition to electronics gear, it also has to be spacious enough to hold the weighty textbooks that students are still expected to carry around alongside those tech gadgets, adds Gaigneur. Avoid displaying backpacks high upon shelves: Gibel says the majority of Staples customers want to try them on to see how they feel. The sweet spot price for a backpack: anywhere from $40 to $100. “We have a few that are $100$110 that do well,” says Cairns. “But once you get into the $130 and $140 range, they don’t see much of an advantage over the $90 bag.”

Students want cheap ways to access TV, and the Android-powered MyGica ATV boxes may just fit the bill. Connect to a TV, and it uses the Kodi (formerly XMBC) media player platform for viewing content from the Internet, including sources like Netflix and YouTube, your own network, or other storage media. Shown here is the ATV1800E, the most popular model in Canada.

BACK-TO-SCHOOL EQUALS UNIQUE OPPORTUNITIES FOR BRICKS-AND-MORTAR A recurring sentiment was that the back-toschool season presents unique opportunities for the physical retail channel. Sending a child off to college or university, or even to high school, is a significant occasion. And for many families, it’s an experience that can’t be replicated online. “We don’t just put our kids on a bus and send them off to university,” muses Ryce. “We drive them there and get them up to the dorm, get them set up, and make sure everything is okay. Then they say ‘just get out of here, please,’ and mom and dad drive away in tears.” Gibel asked his 15-year-old daughter this year if she was getting too old to go out shopping with mom and dad for back-to-school gear. She declared she wasn’t. “I think kids find it to be an event to go back-to-school shopping with one or both parents, and touch and feel items,” he says. “For back-to-school, the retail stores have accounted for the majority of our sales.” (Of course, those store sales were helped last year by the departure of both Target and Future Shop in Canada.) Printers, says Baltezore, perform particularly well in physical stores, as consumers want to touch and feel them, and see how they look. Epson offers services like weekend warriors that visit stores, like Staples, and help educate customers on the advantages of the new EcoTank line. “I think there’s a lot more happening during back-to-school than any other season,” adds Ryce. “It’s part and parcel of a pretty big part of

life, so everyone wants to enjoy and take part in the whole process.” You aren’t going to get that from clicking a button on a computer. For campus stores, Gaigneur believes that students appreciate the added value offered from buying within the school. This includes student discount pricing (which is offered from some manufacturers on things like notebooks), but also the staff’s knowledge of the school’s systems, practices, and tech setup, and their ability to offer on-site help. “A student can walk in and say ‘I’m going to be giving a seminar tomorrow in such-and-such lecture hall. What do I need to connect my computer?’ And we know we’re going to sell them the right item.” That said, we can’t deny that millennials will sometimes opt for the convenience of purchasing online. Tobin says we’re seeing more and more deliveries being made to dorms from the Amazons, Costcos, and Best Buys of the business. “Students are doing their research online, and if there’s nothing in walking range, they are having it shipped.” Nevertheless, parents and students realize that heading off to college or university, whether it’s for the first year or the last, is worth a trip to the store.

BOTTOM LINE

Style is just as important, if not more important, to students than function when it comes to a backpack. Female students, in particular, will appreciate stylish options like the Ogio Soho (Xcel Source), which features a padded laptop compartment, and several zippered compartments to organize all of their gear.

The Enerplex Universal Jumpr Slate 10K Ultra Slim Chargepack 10,000 (Hitfar Concepts) is ideal for students because it’s slim, with binder holes to secure it right into a binder or folder alongside assignments. It has dual 2.4 amp outputs; 5,100mAh versions are also available with either a tethered microUSB or Lightning and USB cable, with 1amp and 2.4 amp outputs.

There are two key takeaways here. First, the back-to-school season yields more than just increased sales in computers, calculators, and headphones. There are a number of products students will be seeking out to help them better meet the changing, more digitized, needs of the education system. And that list will continue to expand as emerging technologies, which many schools are already adopting, like virtual reality (VR) headsets and 3D printers, become more affordable for personal use and purchase. And second, if there was ever an occasion that could help bring more customers back into the physical store, this is it. In 2014, reports NPD, 42% of back-to-school sales occurred during the two weeks surrounding the Labour Day long weekend. It’s worthwhile to consider a strategy to grab hold of both the early shoppers and the procrastinators. Do so, and they might stay with you beyond that pivotal first term. In the end, notes Ryce, “it’s all about outfitting [the students] properly with the technology they need to succeed and work in an university environment.” And in today’s world, when it comes to technology, a notebook is just the beginning. June 2016

37

FINESSING YOUR

FINANCING & FISCALS BY WALLY HUCKER

Financing is critical for most small businesses to survive and thrive. But as our experts show, other fiscal factors, some directly affecting financing, also loom large. Most small businesses start by funding themselves, notes Plamen Petkov, Vice President, Ontario & Business Resources, at the Canadian Federation of Independent Business (CFIB). “Savings, estates and inheritances, family, friends, and connections are common sources.” All business financing, explain our experts, falls into one of two categories: debt financing or equity financing. Loans are debt financing, investment is equity financing.

WHAT YOU SEE IS NOT NECESSARILY WHAT YOU CAN GET Equity financing is available from large pension funds, but typically for medium-sized businesses. “That funding ranges from millions to tens of millions,” says Petkov. For small businesses, new 38

www.wifihifi.ca

or established, other sources of equity financing are possible, but not probable, and rare from banks, he observes, relating to CFIB’s 109,000 member companies. Crowdfunded equity, despite media attention, is extremely rare. “It’s a very small percentage. Don’t count on it unless you have big idea which can go viral,” says Petkov. Angel investors are slightly more probable sources of equity funding on a small scale from $10,000 to $100,000, Petkov observes, “if one can convince the angel that the business can generate a suitable return.” The CFIB’s 2013 survey of 13,000 members, “Battle of the Banks,” reports that 6% had angel investors. Petkov’s colleague Corinne Pohlmann, CFIB’s Vice President of National Affairs, believes that

THE STORY Financing is integral to the success of any small business, but many other factors can impact the bottom line. There are several forms of financing a business can explore; common among CE retailers is inventory financing. Several companies and groups in Canada offer additional support to retailers beyond financing, including volume rebate programs and thus purchasing power, marketing, advertising, Web design, training, and even promotional activities.

FINANCING

we “lack venture capitalists in Canada.” Even if small businesses find equity financiers, do they need or want investors, or partners? Should they forego controlling interest, or take shares in another company? Going public is not for small businesses. Business legend Robert Townsend’s best seller Up the Organization advises that going public is small business suicide. Owners, he purports, would spend all their time appeasing shareholders and supporting stock prices, ignoring their core business.

Rozin suggests that most businesses can benefit from both term and operating debt. Fully 60% of Canadian small businesses, according to the CFIB’s 2013 report, had loans or lines of credit from a financial institution. Only 8% required no financing, including self-financing. Crowdfunding was in the 3% reported as “Other” sources. Pohlmann is concerned with the growing trend of small businesses using credit cards for short-term financing: by 2013, 44% of surveyed CFIB members were doing so. While handy, she notes interest rates are extraordinarily high if the entire balance due is not paid off on time.

FLAVOURS OF DEBT FINANCING “The two basic forms of debt financing,” says David Rozin, “are term and operating debt.” Rozin is National Director, Retail, at Royal Bank of Canada (RBC), Canada’s largest bank, with 16 million clients and assets, as of 2015, of $1,074.208 billion. In CFIB’s 2013 member survey, RBC rated second-highest among banks for service. “Term debt,” he explains, “is used to finance assets essential to running a business.” Expanding and equipping a new store, or leasehold improvements, are examples. Loans are typically paid back in two-to-five years, “allowing the entrepreneur to purchase assets without paying for them up front, preserving cash,” says Rozin. “Instead, payments can be made over time as revenue is generated by the business.” Typically, such debt financing is secured by business and/or personal assets such as land, buildings, mortgages, etc., especially for new businesses.

Always shop around. Do not assume your current financial institution is offering you the best deal. Corinne Pohlmann Vice President, National Affairs, Canadian Federation of Independent Business (CFIB)

Operating debt, he stresses, “should be used for short term needs. Cash is the lifeblood of any business. In retail, cash is often tied up in inventory, and this is where operating debt, for example, a line of credit and credit card, comes in handy.” Lines of credit are revolving, in that principal payments to the account restore that amount for available credit. 40

www.wifihifi.ca

INVENTORY FINANCING (AND MORE) Other forms of short-term financing include open account financing, asset financing, accounts receivable financing, and inventory financing. Inventory financing is probably the most common in CE retailing these days, having largely replaced open account financing. Vendors offering open account financing typically provide a 1% EPD (early payment discount) off net for payment in 30 days, thus allowing dealers to use their money free for a month. Typically, vendors are unsecured. Inventory financing, or floorplanning, is much more common in CE retailing than asset or accounts receivable financing, says Chris Hetherington, General Manager, Strategic Development, at Mega Group, a member-owned co-operative buying, marketing, and financing group. Mega has dedicated its CE retailing support to inventory financing, since numerous CE industry buying-marketing groups, like Power Audio Video Group, AVU, SONXPLUS, and Stereo Plus offer volume rebate programs, purchasing power, marketing, advertising, and other retailer support. For Mega Group’s other core businesses,” Hetherington emphasizes, “those being furniture, appliances, and floor covering, we offer retailers marketing, advertising Web design, negotiating programs, deals with manufacturers online training, specialized accounts, promotional activity, and more.” About 85% of Mega’s inventory financing is done “in house” using its own money “at extremely competitive rates.” Similar to other inventory financing sources like Wells Fargo and Nationwide, Mega’s lending is subsidized by vendors. Hetherington explains that banks prefer to lend against accounts receivable, perhaps up to 75% or 85% of their value, “But CE and HA (home appliance) are typically cash businesses, meaning dealers carry little in accounts receivables.”

While banks, and increasingly credit unions, may lend against inventory, Hetherington’s many decades of financing CE leads him to believe “banks do not like to lend against inventory. Inventory in cash businesses also tends to turn into cash much more quickly than receivables, making it less desirable for security.” He estimates that banks generally value inventory at 50% or less.

...A business plan is a living document, which needs to be updated as new information becomes available, about client tastes, for example, and trends and changes in technology. David Rozin National Director, Retail, Royal Bank of Canada (RBC)

“Inventory is an asset that can quickly ‘grow legs.’” Troubled retailers could easily lock their doors and move inventory overnight to parts unknown. Technology and its rapid evolution, adds Yannick Cloutier, National Relationship Manager for Electronics, Appliances & Furniture (E&A) for Wells Fargo’s Commercial Distribution Finance (CDF) division, can quickly and drastically devalue CE inventory. Having acquired GE Capital’s Direct, Vendor, and CDF businesses in March, Wells Fargo finances inventory directly and through buying groups. Its Commercial Distribution Finance (CDF) Canada division has 180 members assisting with financing to over 4,000 dealers in 20 specialized industries including consumer electronics, photo, music, appliances, furniture, bedding, motor sports, recreational vehicles, lawn and garden, marine, and agriculture. “Mega Group, Wells Fargo, and Cantrex Nationwide,” says Hetherington, “typically finance 100 per cent of the value of the inventory, as they specialize in inventory finance.” Cloutier notes that central billing by CDF means that dealers inventory account payables can all be consolidated onto one platform, reducing the administrative workload on their business. “Since all their invoices are consolidated into a billing statement and payments are taken two-to-three times per month, the reconciliation is easier, which makes dealers’s lives

Making Independent Retailers Stronger OUR EXPERIENCE

OUR CULTURE

OUR RELATIONSHIPS

Our company has been in business helping independent retailers since 1965. We are a retailer-owned co-operative with over 700 members across Canada.

Our sales and operations teams strive to provide our customers with exceptional support and solutions.

We have over 300 approved suppliers in the appliance, consumer electronics, ýoor covering, and home furnishings industries.

As a result of our accomplishments, we are proud to be recognized as one of Canada’s Best Managed Companies for 14 consecutive years.

Every Mega Group employee, through our Service Excellence Program is dedicated to offering the ultimate customer service experience.

PROUDLY PARTNERED WITH

CONTACT INFORMATION: Nick Lavecchia 1-844-549-1435 [email protected]

Anna Bédard 1-877-728-4540 [email protected]

Our central billing services can provide you with virtually all of your invoice processing and inventory financing needs.

FINANCING

easier,” he says. “This is also true for suppliers that find it more convenient to have a central billing system, and to outsource the inventory financing to experts like CDF to simplify their internal administration. It allows them to focus on their own area of expertise: manufacturing, and selling high-quality products.”

Banks do not like to lend against inventory. Inventory in cash businesses also tends to turn into cash much more quickly than receivables, making it less desirable for security. Chris Hetherington General Manager, Strategic Development, Mega Group

“We really have two customers with central billing,” explains Hetherington. “One is the vendor who subsidizes the programs, and in return receives payment from Mega wired into the vendor’s account within pre-negotiated terms. We also fully guarantee the receivable.” Thus, vendors following procedures with proper authorization from Mega are guaranteed payment, no matter what happens to the retailer. “Our second customer, he adds, “is the retailer. Dealers use central billing to manage their inventory payables. The Mega system allows them to see all of their current payables, for all of their different vendors, look at terms, cash discounts, and what is coming due.” Mega customers pay nothing extra for a “state-of-the-art central billing system.” Mega, Cantrex, and Wells Fargo have similar 24/7 systems for monitoring purchases, payments, and available credit. Merchants may have the option of checking off any accounts to which they may wish to make extra payments, to take advantage of EPD, for example. While EPD may be available through central billing, Cloutier suggests looking carefully at extended terms as options. Though a 1% discount for 30 days payment can be significant, “Cash flow is king,” in Cloutier’s view. “If it slows down, it could endanger the business.” Instead of focusing on EPDs, many dealers are converting to extended terms to pay the full amount in 60 to 90 days. Inventory financiers like Wells Fargo, Mega, and Cantrex are trying to match payment terms with inventory turns, notes 42

www.wifihifi.ca

Hetherington. CE retailers turn their inventory three-to-six times annually, according to Cloutier. A third payment option available is scheduled liquidation (or SL terms), which is becoming more popular, he says. With this, instead of net 60 days, the dealer can pay in three equal payments on days 30, 60, and 90. “For the lender,” states Cloutier, “it’s the same as net 60-day terms.” Those terms are known as SL 1/3. “Interest rates are down, but EPDs are up,” says Cloutier, and he and other industry experts note changes in inventory deals in the last couple of years. “We’re not seeing special deals like buy 100 TVs and get a discount,” says Manny Kang, Vice President, Sales & Marketing at the BC-based Audio Video Unlimited (AVU) group, which has 85 storefronts across the country, all operated by independent dealers. “Instead, once a year, there are deals at shows with extended terms from all suppliers.” There are several other scheduled liquidation options, such as 1/4 (net 75 days) and 1/5 (net 90 days), the latter often used for “show terms.” Cloutier suggests that a retailer with four turns annually might seriously consider 1/5 terms to balance cash flow. Special SL 1/12 display terms are available based on vendor support between vendors and CDF for replacement of all floor demonstrators for model changeover. “Dealers need positive cash flow,” says Cloutier. “Tying up cash in inventory on the floor can affect the business down the road. There are a lot of ways to make better use of cash for dealers in the CE space right now. And these can help drive more profitability than an EPD, like investing in online presence, revamping the store to generate traffic, buying their real estate, or making acquisitions of other operations available for sales, for which they need capital or cash flow. Extended terms that match inventory turns might be the right solution to do this.” Having lots of current and well-financed inventory is only a starting point, Hetherington notes. He adds that such inventory financing, along with consumer financing deals from specialist retail partners like Desjardins and Citi Canada, “help get the products into the consumers’ hands.”

THAT’S THE NAME OF THAT TUNE The Power Audio Video Group is Canada’s largest specialty consumer electronics merchandising and buying group. With 700 storefronts, CE specialists belonging to Power Group run the gamut from individual independents like Gibby’s Electronic

Superstore and Kawartha TV & Stereo, to independent chains such as Andre’s and McKays, Lastman’s Bad Boy, and Tepperman’s, and entire groups like Clef de Sol, Audio Video Unlimited, Foto Source, and SONXPLUS. “We provide tools for retailers to decide what to put in their shopping basket,” says Robert Gumiela, Vice President, Marketing. “Basically,” he reflects, “we operate as business agents, working on behalf of our members.” Power Group does no financing of its own. Instead, the group talks to and negotiates with vendors on behalf of members, for such things as volume purchasing, and hosts regular member-vendor conferences and webinars. “The power of partnership,” he adds, “is the glue that binds the relationship between dealers and vendors.” Dissemination of knowledge is key at Power Group, which monitors industry trends, gathers market intelligence, and disseminates them to members daily. Power Group keeps members supplied with promotion schedules. “We make our members aware of what’s due and when.”

Cash flow is king. If it slows down, it could endanger the business. Yannick Cloutier National Relationship Manager, Electronics, Appliances & Furniture (E&A), Wells Fargo’s Commercial Distribution Finance (CDF) division

Promotion schedules and due dates are not finance, per se. Nor are VIR (volume incentive rebates, lost MDF (market development fund) claims, sell-through allowance issues, or MAP (minimum advertised price) violations. But they all affect cash flow and balances owed, so, says Gumiela, “We take on any and all partner requests. We save our members a tremendous amount of time and aggravation.” AVU’s Kang agrees that issues like sell-through allowances can be time-consuming headaches, and, as the old business saying goes, time is money. “Sell-through management, on 20 different TVs each week,” he elaborates, “is a real pet peeve of dealers. AVU offers its members sellthrough protection. “We free up the AVU members’ time, supplying them with information. For example, a tracking report card is updated daily, so they

OUR ADVANTAGES OVER 40 CORPORATE OWNED LOCATIONS We Understand Your Challenges & Needs UTILIZE OUR MARKETING POWER Print • Digital • Creative OUR OWN ACCESSORY LINE

NOW CANADA WIDE G ROUP S ELECT

DIRECT ENQUIRIES TO

STEPHEN NAGLE CELL: (647) 680-2541 EMAIL: [email protected]

WE STRIVE TO SAVE YOU MONEY Leverage our Corporate Power! COMPETITIVE PROGRAMS SHARE BEST RETAIL PRACTICES

GROUP

S ELECT

DIRECT ENQUIRIES TO

PIERRE MOKRY CELL: (514) 655-3766 EMAIL: [email protected]

FINANCING

always have a handle on what is owed for sellthrough allowance, VIR, MDF, co-op advertising funds, and such.” At any time, he says, any AVU member can log in with any vendor.

Sell-through management, on 20 different TVs each week, is a real pet peeve of dealers.

Warehouses full of inventory, however, is not 2001 and Centre Hi-Fi’s goal. “Our Select Groups’ goal,” says D’Alimonte, “is to help the independent survive and prosper.” While financing may not be a concern for corporate 2001 and CHF stores, both men realize it is for some Select members. Those members are free to finance through organizations offering or facilitating financing, like Mega Group, Cantrex Nationwide, and Wells Fargo.

Manny Kang

SINGING A DIFFERENT TUNE

Vice President, Sales & Marketing, Audio Video Unlimited (AVU) Group

“I must stress,” says Michael Garchinski, Cantrex Nationwide’s Vice President, Consumer Electronics & Photography, “that we are a total solution multi-service merchant-marketer group dedicated to ensuring the viability and success of our members, which also does some financing.” Not that financing is unimportant to the Montreal-based Cantrex Nationwide, Canada’s largest retail buying and marketing group. It offers “a total integrated solution” to its members, whose 1,200 retail outlets annually sell over $2.5 billion of electronics, photo, appliances, furniture, mattresses and floor coverings. It has a dedicated team in “constant contact with our member and vendor partners.” But Garchinski points out that while Cantrex’s inventory financing “drives our business …it is in place to support our merchants,” like other support services. Financing ranges from $50,000 to several million, but, he adds, “We work closely with our retail partners to provide them with the best business solutions tailored to day-to-day operations, and long-term success.

Both Kang and Gumiela note that the numbers of vendor field reps are decreasing, and their groups’ members have increasingly come to rely on them not only for answers to monetary questions, but product information and training as well.

MARCHING TO A DIFFERENT DRUMMER “We do very little financing,” says Steve Nagle, Director, Development, at 2001 Audio Video Group Select, when speaking of 2001 Audio Video and Centre Hi-Fi. The two are separate but associated CE retailers based in Ontario and Quebec, respectively. Founded as single stores, both became chains, with scores of corporate stores. Five years ago, both began their “Select” banners for independents. To date, 42 independents have allied with 2001’s 21 corporate stores. Centre Hi-Fi has a total of 66 corporate and franchise stores. Both companies are expanding “Select” outside Quebec and Ontario, with their business models “designed to strengthen the position of the independents, with varying degrees of customization,” says Nagle. For example, most, but not all, of Centre Hi-Fi’s independent members use the name in their banner, advertising, and marketing with a dedicated marketing department to serve their needs. However, many members retain their own names, receiving support to customize flyers and digital advertising. “The industry’s biggest issue today,” says Daniel D’Alimonte, Buyer at Centre Hi-Fi, “is traffic.” Or, as Nagle adds, “lack of it. This is a key concern of our members, and we can be a big help, with our corporate expertise. “We like owning our inventory,” says Nagle, “and the vast majority of our corporate inventory is on open account with vendors.” 44

www.wifihifi.ca

We provide tools for retailers to decide what to put in their shopping basket. Basically, we operate as business agents, working on behalf of our members. Robert Gumiela Vice President, Marketing, The Power Audio Video Group

“Flexible payment terms, designed for an individual business’s needs, are just one tool in our total integrated service offering.” Cantrex Nationwide, says Garchinski, feels focusing solely on acquisition costs is only half the retail equation. “We also focus on marketing

the products with the right media, while providing training support essential to closing the sale.” Thus, Garchinski constantly returns to Cantrex’s other member support services for advertising and marketing, which help members run their business, “by lessening the burden of numerous aspects of retailing.” “Our membership has been performing ahead of the market in their categories,” Garchinski concludes. “Our marketing is driving traffic to our member retailers, who are converting shoppers into buyers.”

BEFORE BORROWING Assessing financing, says RBC’s Rozin, should tell you both: 1) How much is needed to run the business; and 2) How much is needed to grow it. “Running businesses may require periodic investments, like a storefront refresh, which should be in the business plan,” he says. “Remember, a business plan is a living document, which needs to be updated as new information becomes available, about client tastes, for example, and trends and changes in technology.” Making or updating a business plan can be time consuming and confusing for many small businesses. Fortunately, they often have free access to experts at their buying group, professional association, or financial institution. Qualifying for financing depends on several variables. The purpose of financing should match the type of loan sought. Applicants should have a record of profitable operations and be able to service the debt. The amount of financing sought should make sense for the size of the business. “The CFIB’s best advice,” says Pohlmann, “is to always shop around. Do not assume your current financial institution is offering you the best deal.” Another caution, not always heeded, is to read and totally understand financing agreements before signing them. While all lenders interviewed believe their rates are “more than competitive,” Pohlmann advises there is “more to financing than rates.” “Products don’t differ so much as the service,” says Frank Kennes, Vice President of Agriculture & Commerce at Libro Credit Union in London, ON. “At credit unions, we’re not just interested in the business, but we’re interested in the personal aspect, and big on advice and holistic coaching.” Credit unions were the top-ranked by CFIB members in its 2013 survey. Ipsos polling also ranks them top. “Credit unions care about their members,” agrees David Schurman, Executive Vice President of FirstOntario Credit Union in Hamilton,

FINANCING

ON. “We got into small business because money access is always difficult for them, and we believe in taking a chance on our neighbours. “If you don’t have a strong business plan,” says Schurman, “we’ll sit down and help. Innovators and entrepreneurs may be good in their fields, but may need help with a business plan.”

A PENNY SAVED IS A PENNY LESS NEEDED IN FINANCING Another point that all interviewees agree upon is that retailers should look to minimize their expenses. Remember, a better ratio between income and expenses can only have positive results. Lower expenses mean smaller loans and/or higher limits. It means more money available for more inventory, renovations, expansion, and a slew of other uses. And there are many money saving strategies beyond financing worth exploring. Scotiabank and CFIB claim the country’s largest affinity membership program, with numerous perks for account holders, including automatically waiving loan assessment fees. It offers a 20% discount on e-banking packages and overdraft protection products, as well as 0.5% off term loans or lines of credit, and business credit card.

We like owning our inventory, and the vast majority of our corporate inventory is on open account with vendors. Steve Nagle Director, Development, 2001 Audio Video Group Select

Credit unions which offer business services (in addition to the obligatory Canada Small Business Loan Program) differ in size and geographical coverage, but are increasingly competitive with banks’ offerings. Libro offers ATM deposit, foreign exchange, and online banking. FirstOntario just opened a Small Business Centre in a refurbished historic downtown Hamilton building with a boardroom for businesses to hold meetings, and is opening a smaller centre in Oakville. Its 1Awards has given $600,000 in cash and kind thus far, including marketing and legal support, to small businesses within its catchment area. All credit unions profit share with their members. 46

www.wifihifi.ca

Mega Group’s benefits to its retailers, including CE merchants encompass: volume rebates, credit card savings, extended warranties, gas purchase discounts, and group insurance, plus electronic learning programs, Web and retail store design. Mega has also just undertaken an exclusive relationship with Windward Software of Kelowna, BC, a leading point-ofsale (POS) software provider. Almost 200 of approximately 700 members are shareholders of this co-op based in Saskatoon, with offices in Mississauga and Boucherville, QC. The rest are affiliated members using Mega for a variety of different services without becoming shareholders. “Within Mega in the CE category,” notes Hetherington, “there are currently no membership fees for non-shareholders. Shareholders buy into Mega based on a formula that is driven by volume.” Like all co-operatives, profits after expenses are returned to the shareholders as dividend payments. The Power Audio Video Group embodies the concept that “knowledge is power.” Power Group collects all market information available, including vendor, consumer, and third-party data, plus CE professional surveys of wages and salaries, then points out highlights. In addition to volume purchasing, Power Group tracks co-op advertising funds, industry trends and forecasts, and delivers comprehensive SKU analysis reports. Flyer templates, including Web templates, are available for the asking. Kang says AVU’s goal “is for our dealers to buy at the lowest competitive price, and give the skills to sell in the market. We teach them how to sell, and how to generate system reports with one touch.” A POS system is supported by IT and administration teams. Marketing tools, like a responsive Website compatible with tablets, phones, and computers, are supplied at no extra cost. Professionally-designed and quick-to-use advertising templates “save our dealers time, money, and aggravation. Best rates on consumer financing plans from Citi & Desjardins should increase closure. Our all-in-one solution, with our administrative team, makes business much easier for the owner, who often has to be the store’s accountant in addition to all the other jobs that go with the business.” The real strength at 2001 Audio Video and Centre Hi-Fi is marketing. “With our members,” says Nagle, “we can leverage printing and other advertising costs.” The two companies distribute millions of newspaper flyers weekly. “And in the last two and-a-half years,” D’Alimonte

adds, “online flyers have really grown. Vendors tell us how impressed they are with the data we can track.” Through both Centre Hi-Fi and 2001’s marketing departments, they say, Select members save money and time. “We believe we offer as many benefits to our members as other buying groups, if not more, because all our members receive the same support and option for no monthly fees,” acknowledges D’Alimonte. Adds Nagle: “If you don’t need certain services for your business model to succeed, why pay a monthly fee for it?”

Our marketing is driving traffic to our member retailers, who are converting shoppers into buyers. Michael Garchinski Vice President, Consumer Electronics & Photography, Cantrex Nationwide

Sophisticated advertising and marketing aids are also offered through Cantrex Nationwide, including digital and social media solutions. “Moreover, synergies are gained through (parent company) Nationwide Marketing Group’s TV, photo, and design studios, easily customizable advertisements for print, TV, and digital media…,” Garchinski adds, noting that Cantrex has its own dedicated Canadian team to best serve local markets. “We hear our retailer’s voice, and apply it in our marketing approach.” Marketing is taken “down to the SKU level. We work closely with vendor partners in planning and executing market-leading programs.” Among other benefits, he cites the Membernet online sales training and product knowledge service, consumer financing, discounted shipping, better rates for accepting Visa and MasterCard, Amex volume discount, “and even a better debit card rate.” Health insurance through Sun Life is available, and succession planning is just one topic covered at Nationwide Marketing’s huge twice yearly PrimeTime! conferences.

THE BOTTOM LINE There is a lot of financing and fiscal help out there, along with plenty of additional support for small businesses in the CE space, particularly retailers, through memberships and affiliations. It pays to use it.

Wells Fargo Commercial Distribution Finance

Let us show you how inventory financing can help keep your growing business in the game

You knew us as GE Capital, Commercial Distribution Finance (CDF). To our customers who made this journey with us, we would like to thank you for your unwavering commitment and support. And, for those of you who might be considering inventory financing with us for the very first time, we think you’ll find the new Wells Fargo Commercial Distribution Finance is positioned to help you achieve your goals even better than before. As one of the world’s most valuable and recognized financial services companies, Wells Fargo has been helping businesses — big and small — gain greater strength and stability for more than 160 years. Couple that history with CDF’s more than 35 years of electronics and appliances expertise, and you’ll soon discover a winning combination of solutions and services designed to help keep your customers coming back — this season and the next.

Welcome to the new Wells Fargo Commercial Distribution Finance. Give our consumer electronics team a call today at 1-888-609-5550 (Option 3)

wellsfargo.com/cdf

© 2016 Wells Fargo Commercial Distribution Finance. All rights reserved. Products and services require credit approval. Wells Fargo Commercial Distribution Finance is the trade name for certain inventory financing (floor planning) services of Wells Fargo & Company and its subsidiaries, including Wells Fargo Capital Finance Corporation Canada. Wells Fargo Capital Finance Corporation Canada (also doing business in Quebec as Société de financement Wells Fargo Capital Canada) is an affiliate of Wells Fargo & Company, a company that is not regulated in Canada as a financial institution, a bank holding company or an insurance holding company. 16CDN088

TALKING SHOP What’s happening in Canadian consumer tech retail. RETAILERS BRACE FOR NEW REALITY WITH WEAK LOONIE Canadians are used to dealing with fluctuations in currency. But the loonie has been down – way down – for well over a year. And retailers that were hedging exchange risks are now looking for more permanent solutions, whether that’s raising prices, cutting staff, or finding supply chain efficiencies. For the most part, retailers initially resisted passing price hikes onto customers. But as time wears on, trying to absorb a 25-35% currency shift isn’t viable in the long-term. This is particularly the case for retailers and distributors sourcing products or components through U.S. suppliers, or importing them from other countries while paying in U.S. dollars. Larger companies have been hedging the currency and using other financial strategies. But “you can’t hedge forever,” says Michael LeBlanc, Senior Vice President of Marketing and Digital Retail with the Retail Council of Canada. And hedging is not a viable strategy for smaller companies; they simply have to pay more for the goods they source. “In a world where the currency was a different rate, it was more compelling to bring that in from out of country,” he says. Now, it often makes more sense to source goods locally. But that’s not always an option. “You don’t grow avocadoes in Winnipeg,” says LeBlanc. And, “you can’t get certain electronic components domestically.” As margins shrink, something has to give. In many cases, that means passing on those increased costs, at least in part, to the consumer. Though Canadians are used to dealing with changes in currency, “when you’ve had some of the moves we’ve had over the past 15 months, it’s a bit harder to plan,” adds Daniel Baer, Leader of Retail and Consumer Products with Ernst & Young. Many goods that are sold by retailers, particularly in segments such as consumer electronics, are imported from the Far East, purchased in U.S. dollars. “It has an impact, generally a negative impact,” said Baer. E&Y estimates that retailers have seen a 4-8% increase in their costs versus the same time last year. And inflation rates are not running anywhere close to that, adds Baer. “The retailer has not passed on dollar for dollar their increased costs,” he says. One of the reasons is because “the trends take a while to 48

www.wifihifi.ca

work their way through the system.” Ten months ago, retailers were ordering their spring goods and likely hedged their purchasing. Today, they know they’re dealing with a vastly different foreign currency than last year. So consumers can expect to start noticing price increases. “I think consumers understand the landscape that retailers are dealing with and are a bit more willing to accept price increases,” says Baer. By and large, retailers are being forced to increase their prices, though “not necessarily enough to maintain the margins they’ve had.” Late last year, Apple confirmed it would raise its app pricing in Canada and the European Union. In March, Sonos announced its would increase pricing on its products in Canada (while pricing in the U.S. remains the same). And Nest bumped up the price of its thermostat by 30% north of the border. The loonie is affecting retailers in other ways, too. Canadian Tire reported that the weaker currency (and economic slowdown in Alberta) hurt its work-wear brand Mark’s, while Hudson’s Bay cut its sales forecasts for 2016, blaming the strong U.S. dollar for less traffic to its U.S.-based Saks Fifth Avenue stores. Dollarama, which once capped items at $3, has started selling products for $3.50 and $4, amid steeper purchasing costs. “For a good portion of the last year, retailers tried to maintain prices as much as they could,” says Tim Brunt, Program Manager for Personal Computing with IDC Canada. Both retailers and distributors took a bite out of their margin to keep prices as stable as possible. “Now we’re into a new era with new products and technologies,” he said. And CE retailers can no longer survive on clearing inventory, as they did for the past year. But they may not have to. Consumers noticed price increases on Apple products because prices were jacked up on existing products. But as new products enter the market, there’s nothing to compare those prices against. However, we’re still seeing retailers offer CE products under that $500 psychological barrier, says Brunt, “though it means consumers may get lower specs in that same price range. Look at cheese – they don’t tell you they’re increasing the price of the product, they make it just a bit smaller every time.”

It’s not all bad news for retailers, though. Until a few years ago, Canadians spent $8 billion of their shopping dollars in the U.S. That’s changed dramatically, even in the ecommerce world, as the dollar makes it less compelling to do so. There’s also an influx of Americans coming to shop in Canada: according to LeBlanc, the number of vehicles crossing the border into Canada for same-day trips is in the double digits. So for Canadian retailers with an online presence, “it’s not a bad time to think about selling into the U.S. market.” In 2015, E&Y saw a trend where major urban centres located near the U.S.-Canada border outperformed the rest of the province. In Vancouver, for example, retail sales grew by 10.1% last year, while the rest of B.C. grew 6.8%. Looking at the big picture, the demise of the Canadian loonie is making it easier (and cheaper) for U.S. retailers to buy Canadian retailers. Baer points to two recent acquisitions: U.S. home improvement retailer Lowe’s bought its smaller Canadian counterpart Rona, and U.S. healthcare giant McKesson Corp. snapped up Canadian Rexall Health. “Expect to see more M&A activity from U.S. retailers.” What the future holds is “one of the questions that is on the top of every merchant’s mind in this country,” says LeBlanc. But it will likely mean adjustments throughout the cost chain that will be passed along to retailers and customers alike. —Vawn Himmelsbach

Contrary to popular belief, being a small business owner doesn’t automatically translate to being wealthy. According to the CANADIAN FEDERATION OF INDEPENDENT BUSINESS (CFIB), most small business owners are classified within the middle class. STATISTICS CANADA suggests two-thirds of Canadian small business owners earn less than $73,000 per year, and employers earn less than $40,000, outnumbering those earning more than $250,000 by four to one. More than 40% of small business owners work longer hours than employees; to the tune of 50-plus hours per week. Only 6% of employees are in the same category.

TALKING SHOP MONTREAL AUDIO FEST: THE VIEW FROM ENGLAND At first, it’s hard not to feel sympathy for Roy Bird, the 75-year-old Founder and Chairman of Chester Group (Exhibitions) Ltd. in Tattenhall, U.K. In 2013, Bird’s company purchased Salon Son et Image (SSI), a popular consumer show held every March in Montreal. Three years later, Chester Group found itself in a position where it had no choice but to cancel the event. As we reported last issue, that wasn’t the end of the story. The previous organizers of SSI, Plurison’s Michel Plante and Audio Group’s Sarah Tremblay, successfully revived the show under a new name: Montreal Salon Audio/Audio Fest. Just as that issue was going to press, Bird contacted WiFi HiFi, saying he was eager to tell his side of this story. In our coverage of the Montreal Show, we said we’d report on Chester Group’s response to these events in our next issue. A 15-year-old company, Chester Group operates several consumer shows in the U.K., and in recent years, has expanded to New York, Canada and Australia. Bird has worked in the field for 35 years, and has been involved in 150 consumer exhibitions. Bird says he was approached by Plante during the 2013 New York Audio Show, which Chester Group operates. Plante had been offered a fulltime position with Plurison/Audio Plus Services, and wanted to sell Salon Son et Image. According to Bird, “The only company he [Plante] wanted to sell to was Chester Group.” Rather than buying the show outright for a fixed price, Bird negotiated a performance-related agreement, with payouts tied to future sales. It was also agreed that Tremblay would continue as show manager, with a monthly salary. “I wouldn’t buy a show if one of the principals was not involved,” Bird states. Through 2014 and 2015, SSI remained profitable, but sales didn’t meet projections. Payments to Plante were reduced correspondingly. Following the 2015 show, Tremblay informed Bird that she no longer wanted to work for Chester Group, because she was focusing on product distribution through her company Audio Group. Tremblay was not under contract to Chester Group, and was free to resign. Chester Group hired Bob Mathieu as Sales Manager for Salon Son et Image. Mathieu had worked in consumer shows, but none of them related to audio. Bird’s son Justin, Chester Group’s U.K. Director and Overseas Sales Manager, was also involved in selling the show. 50

www.wifihifi.ca

“We knew we would lose exhibitors when Sarah went her own way,” Bird comments. But he had no idea of what lay in store. By early March, the company had secured only 15 exhibitors. In addition, a few retailers had booked hallway tables. This was clearly not enough to mount a credible show. Interestingly, two of the exhibitors were Plurison, which took two rooms, and Audio Group, which took one. On Tuesday, March 8, the principals of Chester Group held an extraordinary meeting where they decided to defer the show. This is the first time Bird has ever had to do so. As he observes, “Exhibitors and visitors both would have been furious” had the show proceeded. “You don’t cancel a show without dramatically having to.” Plante and Tremblay weren’t willing to see the annual event end. As we reported last issue, Tremblay arranged with the hotel to rent rooms directly to exhibitors; and then sent e-mails to manufacturers, distributors and retailers inviting them to participate. Ten days later, Montreal Audio Fest opened with 65 exhibitors. It was a somewhat chaotic affair, partly because L’Hôtel Bonaventure was in the midst of renovations. It’s interesting to note that Chester Group only found out about the state of the hotel when its principals saw photos from the revived show. “Our agreement calls for information about any refurbishment,” Bird states. “I’m staggered that the hotel would allow a major event to take place under those conditions.” He says there were ongoing communications issues with hotel management. One wonders: shouldn’t Mathieu or some other company representative have been aware of the situation? Despite the conditions, Montreal Audio Fest was very successful, and very well attended. Bird says “there’s no way to explain the radical difference” between the 15 exhibitors Chester Group signed up for SSI, and the 65 who participated in Montreal Audio Fest. “The more I go into this, the more I feel we’ve been manipulated,” he adds. Bird says the fallout hasn’t just been financial. He’s clearly a proud man, and is hurt by the effect of these events on his company’s reputation. “All the things that are being said strike at Chester Group’s ethos,” Bird says. “We’ve had to endure the most awful stuff.” In the end, this is a cautionary tale on the perils of venturing into new markets, and of the importance of relationships in any business. Quebec is a distinct market. It goes beyond language:

Roy Bird, Chairman and Founder, Chester Group (Exhibitions) Ltd.: “All the things that are being said strike at Chester Group’s ethos. We’ve had to endure the most awful stuff.”

there’s a distinct culture, inside and outside business. It’s also a market where local relationships matter a great deal. As Bird acknowledges, “We didn’t have that family feel.” Contrary to Bird’s vague suggestions, I don’t think Chester Group’s Montreal show failed because of anything underhanded. The British company had a challenging job penetrating a market it clearly finds foreign. It didn’t get the job done. —Gordon Brockhouse

Canadian companies in retail, cable and satellite TV, phone, and banks, especially, are losing business as consumers demand a more personalized experience and human interaction, says ACCENTURE STRATEGY’S Global Consumer Pulse Research report. Nearly half of the 1,334 consumers surveyed have switched providers in the past year due to poor customer service. A majority (80%) could have been retained, but 68% say now that they’ve jumped ship, there is little chance they would return. Interestingly, this is 10% higher than the global average of 58%. And these “silent switchers,” often don’t speak up about the reason for leaving. Also, 85% of Canadians prefer to deal with a live person, higher than the global average of 73%. Hiring more bodies costs money, but the investment can pay off: 53% are more willing to be sold a new or upgraded product when they receive face-to-face service versus online. That, once again, is higher than the global average of 45%. And good news for the bricks-and-mortar retail sector: 71% agree that in-store service is the best channel for getting a tailored experience, compared to 56% globally.

TALKING SHOP SPORT CHEKS OPENS DOORS ON LATEST HIGH-TECH, INTERACTIVE STORE Sport Chek opened the doors to its latest store in Vancouver in mid-May, marking its fifth flagship location in Canada to date boasting high-tech retail experiences. The new 53,000 square-foot location on busy Robson St. consists of three floors of retail space. As with the other flagship locations, high-tech offerings include motion activated screens that trigger real-time content based on movement; a Golf Virtual Department Kiosk providing recommended products based on the individual customer’s needs and abilities; in-store eCommerce on employee tablets and 55” and 75” displays, where customers can explore an expanded product selection online; and LED Ribbons on the second and third floors, which can be seen from Robson Square, keeping sports fans up-to-date on the latest scores.

Interactive screens throughout the store trigger realtime content based on movement, and allow customers to browse an expanded selection of products online.

The store also features store-within-store concepts for top sporting brands, like Nike, Under Armour, Adidas, Fitbit and GoPro; and art installations featuring creative displays that are inspired by sport. The store will also offer “experiences” to help draw customers in. For example, with support from The University of British Columbia, Robson will be the first Sport Chek store to offer a Training Club designed to help athletes train for their sport activity. Sport Chek launched its first two flagship stores in Western Canada, in the West Edmonton Mall and Metrotown, and has seen “significant results in customer traffic and sales.” The other two flagship locations are in Yorkdale Shopping Centre and Square One Shopping Centre in the Greater Toronto Area. —Christine Persaud

Customers can visit the Golf Virtual Department Kiosk to input their preferences, and receive product recommendations based on their individual needs.

The newest Robson St. Sport Chek store in Vancouver marks the retailer’s fifth flagship location, integrating several high-tech features to cater to sports enthusiasts.

DIGICAM SALES CONTINUE TO DECLINE, BUT THERE’S A BRIGHT SPOT The Canadian Imaging and Trade Association (CITA) has announced final shipment numbers for digital cameras in 2015, as well as forecasts for 2016. And the numbers are not pretty. Digital camera shipments to Canadian retailers in 2015 fell to 913,000 units, a decrease of 25% compared to 2014 levels. That’s, in large part, thanks to smartphones and tablets becoming the image capture device choice for many households and individuals. CITA’s forecast for 2016 shows a further decline in digital camera shipments of 17% to 757,000 units. Point and shoot (P&S) camera shipments are expected to decline another 20% to 492,000 units compared to 2015, and total interchangeable lens camera (ILC) shipments are expected to decrease 12% to 265,000 units. The interchangeable lens camera market, which includes both DSLRs and compact mirrorless cameras, shipped just over 300,000 units in 2015, a decline of 16% from 2014 levels. ILC continues to represent an increasingly-larger share of the overall digital camera market, capturing 33% of the total shipments in 2015, compared to 30% in 2014. In 2015, 44% of P&S cameras shipped included built-in Wi-Fi. This feature continues to represent a larger portion of the overall market, as it greatly simplifies the process for backing up and sharing digital images. Waterproof P&S cameras now represent 22% of the total market, compared to 17% in the previous year. One positive note: compact mirrorless camera shipments have remained consistent over the last two years, a trend that is expected to continue in 2016, with a forecast of another 60,000 unit shipments. Mirrorless cameras are smaller and lighter than their DSLR counterparts. This small size continues to be a selling point for consumers. —JT

AEROPLAN has partnered with THE BRICK WAREHOUSE LP to allow online shoppers at www.thebrick.com to earn Aeroplan miles on purchases, including furniture, appliances, mattresses, and electronics. Further information, including mileage level details, will be made available when the partnership is launched “in the coming months.” Stay tuned closer to the launch date.

June 2016

51

TALKING SHOP PWC REPORT PROVIDES TIPS ON ATTRACTING THE ALL-IMPORTANT MILLENNIAL CUSTOMER PwC’s Total Retail 2016 report provides some interesting insight into Canadians’ shopping habits, and what bricks-and-mortar retailers can do to attract more customers, particularly millennials. PwC finds that 42% of millennials (aged 18-34) buy online monthly, and also want easy ways to navigate online via their mobile devices when they’re in store. While mobile devices are a long way from becoming a significant point-of-purchase tool in Canada, PwC says that 18-24-year-old customers use their smartphones/mobiles to access store coupons and promotional codes (50% vs. 35% globally); compare prices with competitors (42% in Canada and globally); and read product reviews (33% vs. 32% globally). PwC provides four seemingly obvious but often overlooked tips for attracting more customers into the store: Engage, Offer, Channel, and Support. Customers want a seamless experience in which they feel like an “insider” including being informed of new products, feeling part of a larger like-minded community, and being engaged in loyalty programs that are relevant to them.

Price was cited as one of the top reasons for shopping at a retailer, cited by 66% of Canadians surveyed. But 63% of millennials are willing to buy a product online from another country, including clothing and footwear (57%), books, music, movies, and video games (44%), and consumer electronics and computers (30%), if the price is better. With our current exchange rate, however, chances of “better pricing” stateside are slim. According to the report, 53% of consumers research household appliances online while 71% buy them in-store. Regardless of the channel, respondents are looking for product knowledge and information across the board, including online, mobile, and in-store, as well as knowledgeable salespeople. And PwC urges retailers to “evaluate their current structure and organize it around the customer, including building new technological capabilities, upgrading or improving systems and creating linkages between the different aspects of omni-channel shopping environments.” In other stats, the report found that almost 40% of consumers under the age of 34 say that inter-

actions with their favourite brands through social media have driven them to respect and value those brands more. Sixty-eight per cent made their first online purchase more than three years ago; and 46% say ‘convenience’ is their main reason for shopping online. The top products that customers research online via computer, tablet or mobile are consumer electronics (66%) and computers, followed by books, music, movies and video games (63%), and household appliances (53%). The top products that customers purchase online via computer, tablet or mobile are books, music, movies and video games (52%), consumer electronics and computers (28%), and clothing and footwear (23%). By contrast, the top products customers research in-store are grocery (51%), furniture and homeware (38%), and clothing and footwear (36%); and the top products customers purchase in-store are do-it-yourself/home improvement (82%), furniture and homeware (72%), and household appliances (71%). —CP

D&H CANADA HOLDS FOURTH ANNUAL TECHNOLOGY TRADE SHOW D&H Canada held its fourth annual Technology Trade show in Montreal in April, featuring seminars from key vendors about emerging technologies, an exhibit area, and a Mardi Gras-themed event to close out the festivities. The show, which took place at the Plaza Volare in Saint-Laurent, QC on Thursday, April 21, featured three seminars from D&H partners Cisco, HP, and Microsoft, focusing on topics including secure connectivity, printing innovation, and Windows 10 Pro, respectively.

To underscore the Mardi Gras theme, a Jazz Trio sponsored by Cisco plays at the Plaza Volare during D&H Canada’s Montreal Technology Trade Show.

52

www.wifihifi.ca

The Exhibit Hall was open in the evening, from 5-7:30 p.m., and featured close to 30 manufacturers showing off their latest wares. Among the exhibitors, which included the three companies noted above, were brands like APC, ASUS, Epson, Kingston, Lenovo, Logitech, Seagate, Targus, ViewSonic, and Western Digital. The show aims to educate and inform resellers and dealers within the Montreal area about the latest and greatest technologies. As a “selling” show, vendors are also offered exclusive discounts for purchases made on the floor, a big incentive for attendees. D&H Canada had initially expected about 200 resellers and dealers to attend, and Greg Tobin, General Manager, tells WIFi HiFi that he received “very positive feedback” following the event. The festivities concluded with dinner in the exhibit hall, followed by a Mardi Gras-themed event that included a jazz trio performance on the show floor, sponsored by Cisco. There were other fun and promotional events as well. Select vendors participated in D&H’s Passport program: those who got their “passport

D&H Canada’s General Manager Greg Tobin (right) poses with WD (Western Digital)’s Charles Hulet at the company’s booth showcasing storage solutions.

cards” checked at each qualifying booth received a chance to win a Visa gift card. Additional door prizes were offered, sponsored by Cisco. One lucky attendee went home with the Grand Prize of a ThinkPad notebook computer valued at more than $500, courtesy of Lenovo. “These events provide a unique forum by which our customers can acquire the tools to pursue new opportunities, gain hands-on knowledge, and access to a wide breadth of industry leaders,” says Tobin. —CP

TALKING SHOP

WHO WENT WHERE? Evolution Home Entertainment has hired three individuals as part of a new regionally-focused management strategy. Rachel Markus (top) joins the company as Director of Business Development; Suhail D’Souza (centre) as Sales Manager for Eastern Canada, from the Manitoba/Ontario border east; and Ian Haave (bottom) as Sales Manager for western Canada. Markus’ previous industry experience includes six years working on the sales floor at Bay Bloor Radio. Her mandate in this new position includes full-time staffing of the Savant Toronto Experience Centre, and mining new business opportunities for the dealer network. She will be meeting with designers, builders, architects, and other business catalysts for product categories. She can be reached by e-mail at [email protected]. For the past 11 years, D’Souza ([email protected]) has run his own custom integration business, where he gained extensive automation, programming, and project planning experience. Haave ([email protected]), meanwhile, has been a key member of La Scala, the preeminent Savant dealer in Vancouver, for six years. Before that, he was with Sound Advice Electronic Interiors. Both D’Souza and Haave will report to Mike O’Connor, Vice President of Sales.

APPLE PAY MOVES INTO CANADA IN A BIG WAY Apple Pay is finally making significant waves in Canada through a partnership with the major banks, and credit card companies that will allows customers to make transactions of $100 or less through compatible iOS devices. Royal Bank of Canada (RBC) and Canadian Imperial Bank of Commerce (CIBC) customers can now make credit or Interac debit card purchases; and Canadian Tire Bank and ATB Financial MasterCard credit card holders can pay with Apple Pay as well. Cardholders banking with BMO Financial Group (BMO), Toronto-Dominion Bank (TD), and Bank of Nova Scotia will be able to use Apple Pay in the coming months. “We’re excited to work with Apple to bring a new way to pay that eliminates something many of us dislike: carrying a bulky physical wallet,” says Jason Davies, Vice President of Digital Payments for MasterCard Canada. Rob Cameron, Chief Product and Marketing Officer at Moneris, notes that 25% of transactions the company processes today are via contactless cards or devices. “With Apple Pay’s increased options and our leading market share in Canada,” he comments, “we are ready to educate, enable and support merchants across the country to accept Apple Pay today.” In order to pay for items, users must set up their account information through Apple Pay on a com-

patible iOS device, then simply tap the phone to a compatible contactless payment terminal (the same terminals that work with contactless payment cards) to complete a transaction. With MasterCard, Apple Pay leverages its secure MDES (MasterCard Digital Enablement Service) platform, which uses advanced payment technologies, including EMV, tokenization, cryptography and biometrics, to ensure the integrity of cardholder information. The actual card numbers are not stored on the device, nor on Apple servers. Instead, a token, an alternate 16-digit number linked to the device, is created, and will only ever be used when paying with that device. Apple Pay officially launched late last year in Canada, but only for American Express cardmembers. Meanwhile, Samsung’s rival payment service for its Galaxy devices, Samsung Pay, is set to arrive in Canada some time this year, though there’s no confirmation on an official date for the rollout. —CP

MasterCard is one of many credit card companies, and banks, that are now supporting Apple Pay in Canada for small debit and credit card transactions.

GfK data suggests that those who shop online and in store cite the same benefits for each platform. The FutureBuy study, which polled 23,000 shoppers in 17 industries in various countries, including North America, finds that, for those who decided to buy online, the key driver was saving money, cited by 55% of respondents, followed by easier shopping (28%), a better selection of goods (26%), and faster shopping (25%). Interestingly, some of those same reasons were cited to justify why they chose to shop in a physical store. The top reason for going bricks-and-mortar, cited by more than half (51%) of people, was the ability to see and feel the product in person; and 29% felt returns were less hassle in store. What does this all mean? First, if customers feel they get most of the same advantages shopping online versus in a store, retailers need to create compelling reasons to bring them in, beyond just an easier method of return, and to touch and feel a product. Second, retailers need to create a synergy between the online and offline worlds rather than treat them as separate entities. “We expect,” says James Llewellyn, a Director of Shopper Research at GfK, “that, despite a brief hiatus, physical retail touchpoints will become more important than ever. In future, there will be less debate about on and offline, and renewed focus on the fundamentals of choice, price, convenience and experience, and how to meet and exceed shopper expectations in each and across all.”

WALMART has opened a new Supercentre store in the former Target location in Billings Bridge Plaza in Ottawa, at 2277 Riverside Dr. The new 101,000 square-foot store offers everything from general merchandise, to services like a pharmacy and photo centre, electronics department, and groceries. Like other Walmart Supercentre locations, the store features LED exterior signage, sandwich bales to divert waste from landfill sites, and high-efficiency coolers and freezers to help reduce its environmental footprint. As of May 16, the retailer will also stop providing free plastic bags to customers in Ontario to promote the use of reusable bags and help eliminate plastic film from landfill.

June 2016

53

WHO’S DOING WHAT? |

BY CHRISTINE PERSAUD

Nokia is acquiring Withings for 170 million Euros, or about $243 million Canadian bucks, in a deal expected to close in early Q3. Nokia says the acquisition will help the company accelerate its entry into the digital health market. Headquartered in France, Withings makes scales, activity trackers, thermometers, blood pressure monitors, home and baby monitors, and more, all of which are compatible with more than 100 apps. The planned acquisition is subject to regulatory approvals and customary closing conditions. Upon completion, a new Nokia Digital Health business unit will be headed by Cedric Hutchings, Withings’ CEO. Withings products are distributed in Canada by Toronto-based The ReSource Group. Sirius XM Canada Holdings Inc., has entered into a definitive agreement to recapitalize the company by way of a go-private transaction. The total transaction consideration is approximately $351 million. CBC, one of SiriusXM’s largest Canadian shareholders (the other two are Slaight Communications, Inc. and Obelysk Media Inc.), will cease to be a shareholder following the transaction, though it will remain a programming partner. The move allows SiriusXM Canada to access existing and future technologies, products, and services not currently available under its licensing agreements. It also eliminates uncertainty related to the upcoming license renegotiations with SiriusXM. Upon completion of the Recapitalization, SiriusXM Canada will maintain its Canadian headquarters in Toronto.

BCE Inc. intends to acquire all of the issued and outstanding common shares of Manitoba Telecom Services Inc. (MTS) for approximately $3.9 billion. BCE will divest a third of MTS’ postpaid wireless subscribers and a third of the dealer locations to Telus Corp. following the completion of the acquisition. The combined company’s Manitoba operations will be known as Bell MTS. Winnipeg will become the Western Canadian headquarters for Bell. All 2,700 MTS employees will presumably be retained, growing Bell’s Western team to a total of 6,900 people. The transaction will be completed through a plan of arrangement under which BCE will acquire all of the issued and outstanding common shares of MTS for $40 per share, which will be paid with a combination of BCE shares and cash. The deal is expected to close at the end of 2016 or early 2017.

A year after Toronto-based distributor NVU Electronics partnered with Taknology (Canada) Inc., the companies have parted ways in an amicable arrangement. As its own entity once again, NVU will shift its focus to the B2B community, serving VARs and other vertical markets, and has created a new division, NVU Office, to cater specifically to this channel. New products under this division will include ergonomic office furniture, office electronics, and supplies. The company will also continue to sell its existing product lines.

Hitfar has been appointed a Canadian distributor for the Whoosh! line of screen cleaning solutions. Whoosh! cleaners are resistant to smudges and fingerprints, and are alcohol- and ammonia-free, and thus safe to use on any screen. The solution is also non-toxic, non-hazardous, and environmentally-friendly. The company does not test the products on animals. Each bottle, available in 0.3, 1.0, and 3.4 fluid ounce sizes, comes with a soft anti-microbial cloth. Pricing ranges from an MSRP of $6, up to $20 for a 0.3 and 3.4 fluid once bottle Duo package.

Scosche Industries has entered into a licensing agreement with energy drink manufacturer and distributor Rockstar, Inc. to produce and market a licensed collection of consumer tech electronics and car audio products. The new line will debut later in the year. Scosche products are distributed in Canada by BC-based Atlantia, and the 12V line by Edmonton-based B&B Electronics.

British audio company Bowers & Wilkins (B&W) has been acquired by Silicon Valley-based EVA Automation Inc, a technology company founded by Gideon Yu, the former CFO of Facebook and YouTube. EVA says the acquisition will help the brand “grow faster and further.” In addition to Bowers & Wilkins loudspeakers and headphones, B&W Group’s brands include Rotel and Classe. A native of Toronto, B&W Group CEO Joe Atkins owned 60% of B&W Group at the time of the sale, and will retain a financial stake in the company. Following the acquisition by EVA, Atkins will remain CEO of B&W, and will report to Yu. He will also join EVA’s board of directors. Yu, who is also co-owner of the San Francisco 49ers football team, will become B&W’s Executive Chairman. B&W Zeppelin Wireless

Erikson Consumer has been appointed Canadian distributor for the Incase line of cases and protective solutions for mobile devices, portable chargers, bags, and travel accessories, typically geared toward Apple fans. Incase was acquired by Incipio Technologies Inc. in 2015. Erikson has served as the Canadian distributor for Incipio, as well as its licensed brands, for the past year. This expands that partnership for Canada. 54

www.wifihifi.ca

Lionsgate has become one of the first major studios to license films to Valve’s popular Steam digital distribution platform. The partnership will launch with over 100 Lionsgate feature films available to Steam customers, including movies from the company’s Hunger Games, Twilight, Saw and Divergent franchises. More titles will be added as the partnership continues to expand worldwide. Steam customers can view video on all Steamsupported platforms, including Windows, Mac, Linux, SteamOS, and in virtual reality via SteamVR.

SERVICE. SELECTION. SUPPORT. • 5 North American Distribution Centers for 1-2 Day Ground Delivery • 24/7 Online Ordering at www.dandh.ca, iOS App, and Mobile-optimized site • Account Dedicated Rep for Every Customer • Free Account Setup and $50 Petro Canada Offer on Initial Order

• Flexible Financing Options and Credit Support • Incentives Loyalty Rewards Program • Leading Brands for Total Solutions

Sport Pulse Wireless Earbuds 1009610000002

VivoFit 2 Navy Activity Tracker VIVOFIT2NAVYCA

Backbeat Fit Wireless Headphones 20045003CA

VivoSmart Smart Band VIVOSMARTBESCA

FitSeries KSC32i Earset KSC32IGRY

EXERCISE YOUR BUYING POWER HEALTH & WELLNESS TOOLS

800.340.1008 www.dandh.ca/wifihifi

THE NEW, INNOVATIVE SAMSUNG SUHD TV REVOLUTIONIZES THE VIEWING EXPERIENCE.

THIS IS TV Exceptional Colour

The 4K SUHD TV unlocks up to a billion colours with quantum dot display.

Dynamic Brightness

High dynamic range (HDR) enhances brightness to reveal hidden details.

Ã͝ѣ̈͝ϩцUʪϑ̈˝͝

A bezeless screen design that is stunning from every angle.

Sensationally Smart

Search less, enjoy more. Go from live TV to streaming seamlessly with one remote.

© 2016 Samsung Electronics Canada Inc. All rights reserved. Samsung and SUHD are trademarks of Samsung Electronics Co., Ltd., used with permission. The Ultra HD Premium logo is a trademark of UHD Alliance. All other brand, product, service names and logos are marks and/or registered trademarks of their respective owners. Samsung is the No. 1 TV Brand globally for the past 10 consecutive years ending December 2015 based on worldwide TV market share data factoring in annual unit sales and total worldwide revenue from 2006-2015 as published by IHS Technology, TV Sets Intelligence Service-Premium Report dated February 19th, 2016.