SAN FRANCISCO (May 20) BUSINESS WIRE -May 20, 1998--The Sharper Image
(NASDAQ/NMS:SHRP), known for its trendy catalog and stores, is broadening its reach.
Beginning in June 1998, the well-known catalog will announce its Internet site with a
prominent logo on its cover: sharperimage.com.
The shift in emphasis signals a fundamental shift in strategy. The company which built its
reputation selling pricey toys to well-heeled executives plans to dramatically increase sales
of its innovative, exclusive products via this online channel.
"In May of this year, we introduced the first of a new generation of products designed to
appeal to the international marketplace available to us on the Internet. Our new Personal
Cooling System ($49 retail), the world's first portable energy-efficient cooling system that
you wear on your neck, has already shown tremendous sales performance across a broad
range of customer groups," said Richard Thalheimer, founder, chairman and chief executive
officer.
"Over the past five years we have dramatically upgraded our ability to create exclusive
proprietary products to bring to this global electronic market. Functional and attractively
priced, these technologically innovative products are available nowhere else. At the same
time, we have seen sales from our web site, sharperimage.com, grow rapidly. Internet site
revenues, which doubled in each of the last two years, are showing triple digit increases
this year.
"Consequently, we are now able to use this channel to roll out these products to an
international base that dramatically expands our current reach through catalogs and print
and broadcast advertising.
"The economics are compelling. Very rarely does a company have completely unique
products which appeal to an affluent worldwide market, and have the ability to sell them, not
only in more than 80 well-placed stores in the U.S., but also on an already successful web
site. We got in on the ground floor of Internet selling, and are in a position now to expand."
In the next month the company will relaunch sharperimage.com with a brand new
architecture designed to simplify the shopping experience for the consumer. Products will
be highlighted earlier in the transactional experience and an interactive email program will
be introduced.
The Sharper Image has distilled the information gathered from our early entry on the Internet
to maximize the effectiveness of the site for customers. "The typical Internet customer is
slightly younger, somewhat affluent and wants to acquire useful, innovative, technologically
advanced products. That is exactly our customer, and our site reflects it."
The company currently has under development about 50 new products to be introduced on
an exclusive basis over the next 24 months. All are designed for an international market
and will be introduced at sharperimage.com.
"Never before in our 22-year history has there been such a combination of positive factors.
We are now making proprietary products that are under our Sharper Image brand. These
products are generally protected by patents, and are completely under our manufacturing
supervision. This has promise that includes quality control, as well as of margin and
product life.
"Typically the gross margins are 10 to 20 points higher on these totally exclusive products,
yet the value to the consumer is still present because these products are truly unique and
one of a kind. Most of these products are moderately priced, in the $40 to $100 range,
making them affordable to a large sector.
"What does it all mean?" Thalheimer concluded. "Finally we can bring the fun, affordable
type of product we make to a much larger group of customers. We can sell anywhere in the
world now, and we have the products coming to fill up this pipeline."
The Sharper Image(R) is a leader in introducing products that provide quality, innovation and
entertainment through its entertaining stores, catalogs, and other marketing channels, with
an extraordinary level of customer service. In addition to its award-winning catalogs, there
are more than 80 stores throughout the United States and internationally. The Sharper
Image catalog is also available on the Internet at sharperimage.com.
This release contains certain forward-looking statements regarding the Company's
expected performance for future periods, and actual results for such periods may materially
differ. Such forward-looking statements involve risks and uncertainties, including risks of
changing market conditions in the overall economy and the retail industry, consumer
demand, the opening of new stores, actual advertising expenditures by the Company, the
success of the Company's advertising and merchandising strategy, availability of products,
and other factors detailed from time to time in the Company's annual and other reports filed
with the Securities and Exchange Commission.
ap/sf*
CONTACT: The Sharper Image
Davia Kimmey, 415/445-6199
Tracy Wan, 415/445-6120
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: RETAIL Today's News On The Net - Business Wire's
full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com SAN FRANCISCO (May 20) BUSINESS WIRE -May 20, 1998--The Sharper Image
(NASDAQ/NMS:SHRP), known for its trendy catalog and stores, is broadening its reach.
Beginning in June 1998, the well-known catalog will announce its Internet site with a
prominent logo on its cover: sharperimage.com.
The shift in emphasis signals a fundamental shift in strategy. The company which built its
reputation selling pricey toys to well-heeled executives plans to dramatically increase sales
of its innovative, exclusive products via this online channel.
"In May of this year, we introduced the first of a new generation of products designed to
appeal to the international marketplace available to us on the Internet. Our new Personal
Cooling System ($49 retail), the world's first portable energy-efficient cooling system that
you wear on your neck, has already shown tremendous sales performance across a broad
range of customer groups," said Richard Thalheimer, founder, chairman and chief executive
officer.
"Over the past five years we have dramatically upgraded our ability to create exclusive
proprietary products to bring to this global electronic market. Functional and attractively
priced, these technologically innovative products are available nowhere else. At the same
time, we have seen sales from our web site, sharperimage.com, grow rapidly. Internet site
revenues, which doubled in each of the last two years, are showing triple digit increases
this year.
"Consequently, we are now able to use this channel to roll out these products to an
international base that dramatically expands our current reach through catalogs and print
and broadcast advertising.
"The economics are compelling. Very rarely does a company have completely unique
products which appeal to an affluent worldwide market, and have the ability to sell them, not
only in more than 80 well-placed stores in the U.S., but also on an already successful web
site. We got in on the ground floor of Internet selling, and are in a position now to expand."
In the next month the company will relaunch sharperimage.com with a brand new
architecture designed to simplify the shopping experience for the consumer. Products will
be highlighted earlier in the transactional experience and an interactive email program will
be introduced.
The Sharper Image has distilled the information gathered from our early entry on the Internet
to maximize the effectiveness of the site for customers. "The typical Internet customer is
slightly younger, somewhat affluent and wants to acquire useful, innovative, technologically
advanced products. That is exactly our customer, and our site reflects it."
The company currently has under development about 50 new products to be introduced on
an exclusive basis over the next 24 months. All are designed for an international market
and will be introduced at sharperimage.com.
"Never before in our 22-year history has there been such a combination of positive factors.
We are now making proprietary products that are under our Sharper Image brand. These
products are generally protected by patents, and are completely under our manufacturing
supervision. This has promise that includes quality control, as well as of margin and
product life.
"Typically the gross margins are 10 to 20 points higher on these totally exclusive products,
yet the value to the consumer is still present because these products are truly unique and
one of a kind. Most of these products are moderately priced, in the $40 to $100 range,
making them affordable to a large sector.
"What does it all mean?" Thalheimer concluded. "Finally we can bring the fun, affordable
type of product we make to a much larger group of customers. We can sell anywhere in the
world now, and we have the products coming to fill up this pipeline."
The Sharper Image(R) is a leader in introducing products that provide quality, innovation and
entertainment through its entertaining stores, catalogs, and other marketing channels, with
an extraordinary level of customer service. In addition to its award-winning catalogs, there
are more than 80 stores throughout the United States and internationally. The Sharper
Image catalog is also available on the Internet at sharperimage.com.
This release contains certain forward-looking statements regarding the Company's
expected performance for future periods, and actual results for such periods may materially
differ. Such forward-looking statements involve risks and uncertainties, including risks of
changing market conditions in the overall economy and the retail industry, consumer
demand, the opening of new stores, actual advertising expenditures by the Company, the
success of the Company's advertising and merchandising strategy, availability of products,
and other factors detailed from time to time in the Company's annual and other reports filed
with the Securities and Exchange Commission.
ap/sf*
CONTACT: The Sharper Image
Davia Kimmey, 415/445-6199
Tracy Wan, 415/445-6120
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: RETAIL Today's News On The Net - Business Wire's
full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com |
