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NEW YORK— The demise of General Time this past
summer did not have the huge negative impact on
the clock industry as some had anticipated,
according to industry observers.
The biggest result appears to have been the rush
to purchase General Time’s brands, and to hire
its former employees
While some of General Time’s largest customers
expressed concern early on over filling shelf
space for the remainder of 2001, there appears
to have been few problems and no loss of
confidence in the industry as a whole, said a
number of manufacturers.
“I don’t think the market is weaker or stronger
with or without General Time, but it has become
more fragmented,” said Paul Mayer, president of
Chaney Instruments, the manufacturer of the
Atomix brand of atomic clocks. “In no way does
this reflect poorly on the clock industry.”
With General Time ceasing operations, the door
of opportunity has opened for some smaller
manufacturers. “I think there are tremendous
opportunities for companies like us who have a
well known brand [Timex] to capture some of the
market that is now open,” said Stephen Pyles,
national account manager with SDI Technologies.
Losing a company the size of General Time, with
reported annual sales of $100 million, was
expected to give manufacturers a shot at shelf
space at a number of retailers, including
supermarkets and drug store chains where General
Time had a great deal of shelf space for a
number of years, observers said.
They noted that in recent years a majority of
retailers in those two segments have kept their
selections of clocks static. “It seemed as if
they would not change their planograms but
simply photocopy them from year to year,” one
clock manufacturer said.
What no one in the industry could pinpoint was
how long the window of opportunity would remain
open to the smaller companies looking to
increase business.
Salton moved quickly to purchase three of
General Time’s well known mass market brands—
Westclox, Big Ben and Spartus. Company officials
said it would incorporate those brands into the
Salton at Home division, joining the Ingraham
brand of clocks and Stiffel lamps.
The plan, Salton officials told HOMEWORLD
BUSINESS®, is to use its four clock brands in a
good-better-best assortment when selling product
to retailers.
General Time’s long-standing upscale brand, Seth
Thomas, was acquired by the Colibri Group, which
plans to apply the brand to its specialty
store-oriented marketing strategy.
Some observers said it would take time to regain
the confidence of some retailers who may have
gone elsewhere to replace preexisting General
Time orders.
Some also questioned why there was a rush to
purchase the brands in a clock market with
little consumer brand recognition. “This market
is not about brands as much as it’s about design
and price,” Chaney’s Mayer noted.
While Chaney showed early interest in some of
General Time’s brands, it took a different tact,
hiring a number of the the former General Time
staffers, and opening a satellite office in
General Time’s former hometown, Norcross, GA.
“We made the decision that in the long term it
would be more beneficial to us to bring in the
talent that was responsible for designing some
of General Time’s more popular products,” Mayer
added. “This will also allow us to expand our
selection of clocks in the future.”
Other time-piece companies, such as Seiko,
expected minimal impact on its business with the
loss of General Time. “A majority of the retail
channels where General Time did most of its
business are not areas we sell to,” said John
McCabe, vp/sales, Seiko.
“We do have some activity in the office products
area, and might be able to pick up some business
there for the holiday buying period.” |
