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  1. #1

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    Default Get your Onkyo....from Walmart

    From TWICE....

    Upper Saddle River, N.J. - Onkyo plans to begin selling 12 home audio products, including select A/V receivers, through Walmart.com in the coming weeks, the company said in an email to sales reps and key accounts.

    Select Onkyo products are already available online through BestBuy.com and other sites, but Onkyo could be the first major audio specialty company to offer A/V receivers through Walmart.com, which already sells select Sony A/V receivers and a Teac A/V receiver at prices up to $278.

    In the email, national sales manager Joe Petrillo said he expects his competitors to follow suit. "Our competitors are and have been in negotiation with Walmart.com as well," he contended.

    Onkyo products available through Walmart.com will include five A/V receivers, two home-theater receiver/speaker packages, two home-theater speaker packages, a 2.1-speaker virtual surround system with A/V receiver embedded in the subwoofer, a mini system and an iPod dock accessory.

    In the email, Petrillo said all receivers and home-theater systems sold through Walmart.com will be priced below $499 "to preserve our present business model and protect our business partners." The products will be available only online and won't be available for in-store pickup by consumers, he noted.

    Two of the products -- the HT-RC230 A/V receiver and AV-X280 receiver/speaker package -- will be derivatives of current products and will be available exclusively through Walmart.com. The models on which the derivatives are based are priced at suggested retails of $299 and $379, respectively.

    Although 12 products will be sold through the site, Petrillo said in his email, "Based on the current average assortment of our key account partners, I don't feel that the models selected will create a conflict. Instead, I believe it provides you with a very solid step strategy."

    The audio supplier contended the new distribution channel will expose the brand to more consumers and drive many of them to other authorized online and brick-and-mortar dealers for step-up Onkyo products.

    "Onkyo has spent the better part of 60 years developing and cultivating a reputation in the market place that is synonymous with premium performance, build
    quality and value," Petrillo explained.

    "With the addition of Walmart.com, nothing changes. Instead, customers who might have never been exposed to the brand will have the opportunity
    to get a small taste of the brand. They'll research the brand. They'll look for better products from Onkyo. Then, after their appetite has been stimulated, they'll be visiting
    your stores or e-commerce sites for their main course ... If, when, this venture succeeds, and I have every reason to believe it will, you will sell more Onkyo products, and
    you'll do it profitably."

    Petrillo contended the relationship would not dilute the value of the Onkyo brand. "In my opinion," he said, "a ‘brand' loses its prestige in the marketplace when the products being produced are compromised from a build quality standpoint, no longer offer
    any demonstrable benefits vs. the competition, and lastly carry no ‘real' perceived value to the consumer. None of these circumstances are present here."

    He continued, "Changes in distribution and new business opportunities emerge daily. It's the vendor, the manufacturer, the partner that approaches these opportunities with honesty and heavy consideration for their existing partners that make these opportunities a success on all levels."

    Suppliers, he noted, "can choose to improvise, overcome and adapt to the challenges that the market place throws at them. Or they can choose not to and operate under the same business model as they have all these many years. For most, not choosing to evolve has meant a drastic decrease in sales and lost revenue. For others that have embraced change and diversified their business model, they have consistently yielded a positive sales/profitability result regardless of the economic climate and further more realized growth."

    Onkyo's addition of Walmart.com follows last year's addition of Onkyo A/V receivers and source components to the Magnolia Home Theater sections of Best Buy stores. Onkyo returned to Best Buy after an absence of about 15 years.

  2. #2

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    then we will see the merger of the Best Buy with Wally World and Taco Bell so then I can eat a burrito, buy the TP To use later and find a TV to use in my bathroom to watch the world come to an end.
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    Onkyo had to do something once Circuit City died. Onkyo had a big presence there.

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    Just for the record, Energy has also moved into Best Buy's Magnolia Hi-Fi.

    I suppose the Onkyo receiver that's moving into Walmart is the same as Onkyo's 308 entry level HT receiver.

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    This will certainly "open" up the Onk's to a bigger part of the populous.
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  6. #6

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    Oh man .... could you just imagine going to walmart and putting a 3007 on the store card or even an integra processor interest free

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    I would seriously drop a deuce right there in the store if I ever saw even a 1007 in a Wal-Mart. Isn't that a Biblical sign of the end times?
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  8. #8

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    Quote Originally Posted by kuntasensei View Post
    I would seriously drop a deuce right there in the store if I ever saw even a 1007 in a Wal-Mart. Isn't that a Biblical sign of the end times?
    The Saints winning the Superbowl was, and remember the cold winter causing hell to freeze over.
    Come to think of it, perhaps this is the next sign?

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    Quote Originally Posted by kuntasensei View Post
    I would seriously drop a deuce right there in the store if I ever saw even a 1007 in a Wal-Mart. Isn't that a Biblical sign of the end times?
    ha, if the average person saw a 1007 in a wally world they would be like whats this? and why does it have so many buttons????
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    I would look for Walmart to possibly take on Best Buy in a number of categories. Once BB gave up their differentiation of trained, knowledgeable sales people and lowered their investment in customer service they opened the door for other big box retailers to compete on a category basis without a huge investment in human capital.
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  11. #11

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    Quote Originally Posted by dkg999 View Post
    I would look for Walmart to possibly take on Best Buy in a number of categories. Once BB gave up their differentiation of trained, knowledgeable sales people and lowered their investment in customer service they opened the door for other big box retailers to compete on a category basis without a huge investment in human capital.
    You can buy junk food in a Best Buy so why not? Love free enterprise.

  12. #12

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    This article seems to confirm what I always thought and that is a company makes sort of an inferior line just for wal-mart stores.

    I could be wrong but it seems the low prices people love at Wal-mart for electronics are offset by the fact they are usually buying a replacement at twice the rate as someone how bought the top tier product somewhere else making the discount $0 in the end

    I have owned onkyo's for 20 years but I think I may have lost some respect for the product the next time I see their receivers beside the diaper aisle.
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  13. #13

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    There's nothing good about it. It will drive standards lower due to the relentless Walmart ethic of cheapening and degrading any commodity they get their hands on. As soon as someone tells me "you've got an Onkyo? I saw one of those at Walmart!" I'm dumping it.
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  14. #14

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    Well, no matters what we think, all the manufactures always look out to open up their territory.

    Back in the early 80, I never could imagine that ML would display their products at BB and now at Fry's. Eventhought, BB and Fry's only carry entry level electrostatic speakers. Sears & K-mart sell Adcom on line. Crutchfield once carry Thiel. It's all abt $$$.

  15. #15

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    I would like to see more Polk LSi's or RTi's at Best Buy Magnolia.
    At least they will be in an audio room where they can be listened to.
    When I see Polk RTi's at A-1 Appliance and Electronics here in Louisiana, I just shake my head.
    It's a joke.
    Last edited by xcapri79; 05-17-2010 at 11:49 PM.

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  16. #16

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    ... And on a related note.

    Not to be outdone, Emotiva has anounced plans to market their gear at 99 Cent stores nationwide beginning next month. It is believed by both parties that consumers will get their money's worth. :D:D:p;)




    Just kidding guys....
    Last edited by nooshinjohn; 05-18-2010 at 12:20 AM.
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  17. #17

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    I do not shop at Wal-Mart. These would go well with their other Chinese made merchandise though.

    Greg

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    Onkyo's at Walmart? Wow.

    I'm not quite sure what to think of this. I never shop at Walmart personally...and I've gotta say, this kind of lowers my opinion of Onkyo.

    On the other hand though, this is going to potentially put better audio into the hands of people who might never have discovered it before. The only audio equipment they have at Walmart is pretty dismal...cheap HTIB equipment for the most part.
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  19. #19

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    Quote Originally Posted by headrott View Post
    I do not shop at Wal-Mart. These would go well with their other Chinese made merchandise though.

    Greg
    I will NOT shop Wally World either. I'll dump my Oinkers now.

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    Quote Originally Posted by Jetmaker737 View Post
    There's nothing good about it. It will drive standards lower due to the relentless Walmart ethic of cheapening and degrading any commodity they get their hands on. As soon as someone tells me "you've got an Onkyo? I saw one of those at Walmart!" I'm dumping it.
    Walmart sells Sony, Samsung, and Panasonic TV's...does that make them crap?

    Walmart is positioning itself to fill a gap in the market that was created when circuit city exited the market. Walmart will probably carry lower end and older model Onkyo units, just as they do with TV's. I'm thinking you'll probably see mostly Onkyo HTiB's at Walmart
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    Quote Originally Posted by mystik610 View Post
    Walmart sells Sony, Samsung, and Panasonic TV's...does that make them crap?

    Walmart is positioning itself to fill a gap in the market that was created when circuit city exited the market. Walmart will probably carry lower end and older model Onkyo units, just as they do with TV's. I'm thinking you'll probably see mostly Onkyo HTiB's at Walmart
    I agree with that, and it's fine that they're doing it. Hell, I think the 50x line of Onkyos just about belongs in a Wal-Mart anyway. But I would be surprised if I ever saw the 70x line pop up there. I could see Onkyo making a push for their HTIB systems at Wal-Mart though, and that would be a good market for them. Onkyo's pack-in speakers are surprisingly quite decent for el cheapo speakers, so it would potentially introduce a lot more people to better quality audio.
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  22. #22

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    Quote Originally Posted by mystik610 View Post
    Walmart sells Sony, Samsung, and Panasonic TV's...does that make them crap?
    +1...good point.
    I guess if Polk decided to sell its entry product at Wally World or Target that would be a bad thing?
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  23. #23

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    ONLY AVAILABLE ON-LINE! Most points made above are null and void. You won't walk past them near the diaper aisle unless you figure out how to walk around in the internet. As stated, walmart sells some pretty nice tvs and offers easy return policies and good warranties. I would consider buying a tv from walmart if I was in the market for a new one and would do the same with an entry level receiver if the price was right and had a need for it.
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  24. #24

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    Quote Originally Posted by kuntasensei View Post
    I agree with that, and it's fine that they're doing it. Hell, I think the 50x line of Onkyos just about belongs in a Wal-Mart anyway. But I would be surprised if I ever saw the 70x line pop up there. I could see Onkyo making a push for their HTIB systems at Wal-Mart though, and that would be a good market for them. Onkyo's pack-in speakers are surprisingly quite decent for el cheapo speakers, so it would potentially introduce a lot more people to better quality audio.
    Yup. From a marketing perspective, Onkyo is better positioned than any other receiver manufacturer....they're competitive all the way from the bottom of the totem pole (onkyo 30x series), up to the super high-end/elite (Integra line).

    Our audio-snobbery causes us to look down on mass-market products, but to really survive in the consumer electronics market place, you need to be competitive in the lower and middle markets....particularly with the downturn in the economy. This is where Best Buy succeeded, and Circuit City, Tweeter, and so many others failed. Even Polk realized this, and they've managed to survive on their own. Most other speaker manufacturers struggled financially at one point, were acquired by another company, who then made them profitable again by opening up their products to a larger market.

    And let's face it...Best Buy isn't too much better than Walmart these days, particularly outside of their Magnolia line. Best Buy is for people who don't know any better....Magnolia is for people who don't know any better and have more money to spend.
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    The more stores that audio gear is in the better for everyone. We all know that Onkyo isn't going to put their top of the line gear in Walmart. But it will certainly be better than some no name boombox.

    Just like Polk have different price points for their speakers, so too does everyone else.

    These companies are in business to make money, not cater to the small minority that call themselves "Audiophiles".
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    Quote Originally Posted by mystik610 View Post
    Best Buy is for people who don't know any better....Magnolia is for people who don't know any better and have more money to spend.
    You, sir, just earned yourself a spot in my sig!

    Great line.

    On a more serious note, I was really hoping to see some of these in-store. There's nothing wrong with Onkyo or anyone else hawking their budget-line products in a Walmart...in fact, it would be a GREAT thing for them!

    Look at it this way: a couple years ago someone bought a HTiB to go with their new HDTV. Now that Blu-ray is much more mainstream, they decided to go ahead and jump into the market with a new player.
    Back then the receiver wouldn't have had HDMI most likely, so that person looks at a new HTiB. But...he doesn't want to get an entirely new HTiB, as the one he has now sounds fine!

    He looks to the right and sees some receivers sitting there. He asks a rep (there are SOME reps who know what they're talking about you know...I used to be one!) whether he can use one of these receivers with his current HTiB. The rep says "sure! You can also use this if you ever upgrade your speakers!".


    And a potential audiophile is born.
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    Quote Originally Posted by mystik610 View Post
    Best Buy is for people who don't know any better. Magnolia is for people who don't know any better and have more money to spend.
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    woohoo, now I am looking forward to check out those Mark Levinsons at our local wally!
    I am sorry, I have no opinion on the matter. I am sure you do. So, don't mind me, I just want to talk audio and pie.

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    Quote Originally Posted by mystik610 View Post
    Yup. From a marketing perspective, Onkyo is better positioned than any other receiver manufacturer....they're competitive all the way from the bottom of the totem pole (onkyo 30x series), up to the super high-end/elite (Integra line).

    Our audio-snobbery causes us to look down on mass-market products, but to really survive in the consumer electronics market place, you need to be competitive in the lower and middle markets....particularly with the downturn in the economy. This is where Best Buy succeeded, and Circuit City, Tweeter, and so many others failed. Even Polk realized this, and they've managed to survive on their own. Most other speaker manufacturers struggled financially at one point, were acquired by another company, who then made them profitable again by opening up their products to a larger market.

    And let's face it...Best Buy isn't too much better than Walmart these days, particularly outside of their Magnolia line. Best Buy is for people who don't know any better....Magnolia is for people who don't know any better and have more money to spend.
    My biggest issue is WalMart taking over local markets and putting the smaller stores out of business. NOW they're attacking another product line. I don't blame Onkyo's business decisions at all. Corporate survival and responsibility at the basic level. Keep supporting WM

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    Onkyo needs more distribution - these high end retailers are just not cutting it:
    http://www.us.onkyo.com/locations_intdealer.cfm
    hahaha

    but seriously - I wish more manufacturers would start selling their gear online themselves; cutting out the middle man and putting more money in the hands of the people that make things.

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    Quote Originally Posted by HB27 View Post
    My biggest issue is WalMart taking over local markets and putting the smaller stores out of business. NOW they're attacking another product line. I don't blame Onkyo's business decisions at all. Corporate survival and responsibility at the basic level. Keep supporting WM
    The same could be said about online retailers, who are able to operate with signficantly lower general and administrative expenses, and undercut local retailers on price. Why do you think local high-end audio shops are harder and harder to find these days? How many people here are snagging up Polk deals from Newegg, or other online retailers? How many of us auditioned equipment at a local retailer and bought it online? All of that is business that could have been done at a local retailer.

    I'm not saying I support Walmart...in fact there are a lot of aspects to Walmarts business model that I disagree with. I actually hate shopping in Walmart, and pay a little more to shop in a less chaotic environment. But we do live in a price-driven economy, especially with the economic downturn. Walmart isn't 'attacking' anybody...they're simply responding to the demand of consumers to price-sensitive goods. It's neither good or evil. It's simply the nature of economics.

    If you read the article above, it mentions that Onkyo will only be selling receivers and home theater systems under $599 in order to protect their business model and partners. It seems that Onkyo has contemplated the effect of having their products distributed through Walmart, and are segmenting their products across different markets accordingly. Home theater/surround sound isn't a luxury reserved for the rich anymore...there's a blossoming market of entry level home theater equipment. Based on that article, it seems that Onkyo is less interesting in using Walmart as an avenue to sell products, and more interested in using them as an avenue to market products...ie people see Onkyo products on Walmart.com, research Onkyo elsewhere, and either buy the low end models from walmart, or look for higher end models elsewhere.
    Last edited by mystik610; 05-18-2010 at 02:18 PM.
    My System Showcase!

    Media Room
    Paradigm Studio 60 - Paradigm CC-690 - Paradigm ADP-390 - Epik Empire - Anthem MRX300 - Emotiva XPA-5

    Living-room
    Paradigm MilleniaOne - Rythmik F12GSE - Onkyo TX-SR805 - Adcom 5400

    Headphones
    Sennheiser Momentum Over-Ear - Shure SE215 - Fiio E18 Kunlun

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