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There's plenty of room for growth in outdoor
security lighting and ceiling fans, with only
one-quarter of U.S. homes equipped with outdoor
infrared motion detector security lights and fan
purchasers trading up in quality as they buy multiple
room replacements for inexpensive units bought
earlier.
Although direct imports have come to dominate
both categories at the discount level, Hunter
in fans and Regent in outdoor security lighting
maintain a strong U.S. presence.
Dollar value of the 14 million to 14.5 million
ceiling fans sold in the United States at retail
is about $900 million, but overall growth is flat.
Mass merchants control 30% of the fan market.
Nonetheless, repeat purchasers are keeping the
fan market moving, as buyers of cheaper fans trade
up to replacements that cost 10% to 30% more.
Moreover, many purchasers are installing them
in rooms other than the conventional bedrooms,
said Jim Barrett, vp of marketing for Hunter.
In a technological development, Hunter has introduced
a new type of fan motor, the AirMax, which contains
an internal fan that cools the motor from within.
A market dynamic at work is that consumers often
buy three or four additional fans after they first
buy one for a bedroom or family room.
In fans, direct imports predominate at the Big
Three, with Hunter having three skus at both Wal-Mart
and Kmart but none at Target.
Target's fan program consists entirely of direct-sourced
goods sold under the Windsor Browne brand. Prince
points on a 24-ft. run of about 30 skus range
from $24.99 to $59.99. Its offerings reflect a
new trend of nonstandard-size fans for smaller
rooms, including a 32-in., six-bladed unit for
$29.99.
Wal-Mart hits the other end of the size spectrum,
offering a 60-in., five-bladed fan at $99.96 in
its Home Trends private label line. Its opening
price point is $19.96 for a 42-in. Home Trends
fan with a light kit.
It also stocks three skus of Hunter fans, including
its Willow Breeze unit at $69.96, reduced from
$89.66. Wal-Mart's House Beautiful private label
accounts for three skus, including a 42-in. unit
at $59.86. Another brand offering is Lasko, best
known for its box fan and boasting a "Made
in the U.S.A." label. Skus include a 52-in.
fan at $59.96.
Kmart stocks predominantly private label fans
marketed under the Atlantic Air brand name, with
the addition of three Hunter skus. It also stocks
an Avion mini-fan at $39.99.
Outdoor Security lighting at the store was limited:
Kmart-sourced motion detector twin-flood at $14.95
and an Intelectron twin flood, with no posted
price.
Motion detector outdoor security lighting has
been on the market for several years, but the
penetration rate still remains at just 25%. And
manufacturers are moving motion sensor lighting
indoors with infrared detectors that control indoor
lamps.
Outdoor Security lighting represented a $270
million retail business in 1997, with an estimated
growth of 8% in 1998 to an expected $286 million,
said David Springstroh, vp of marketing for Regent
Lighting.
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