NEW YORK- The Consumer Electronics Association’s president and CEO, Gary Shapiro, applauded the “precedent-setting and innovative digital campaign” waged for the presidency by Barack Obama, and urged the president-elect to “focus on strengthening the economy,” with an emphasis on increasing product exports and on opening foreign markets.
“I hope he’ll work at pending free-trade agreements,” said Shapiro, alluding to the Colombia free-trade agreement as one example in remarks at a pre-CES press preview event Tuesday.
Shapiro called the Chapter 11 bankruptcy declaration made Tuesday by Circuit City “sad, on a personal level, but competition is a mainstay of the industry… The fall of Circuit City is hurtful to major companies, and there is not a great history of emergence from Chapter 11 among retailers. Ours is an industry of change, but the industry will go on. The Number One impact short term is job loss, and the general impact is that there will be holes for other retailers to fill. ”
Shapiro also said that “we know we’re resilient as an industry,” citing the projected 3.5 percent growth in fourth-quarter sales “which is something. We’ll end up having a 2008 that’s stronger than any other industry” except those businesses involved in bankruptcy proceedings, he added.
Shapiro also expressed optimism about the smooth transition from analog to digital broadcasting. “Everyone is doing all they can” in awareness efforts, he said, “even the cable industry – and they don’t even have a dog in the race. Consumer awareness is already 90 percent, and of the 10 percent who could possibly be disenfranchised, lots have already ordered coupons. The disenfranchised number, I believe, will be tiny for a few days.
“We can have a few people go through a few days without their televisions.” Citing the February changeover as well as the switch in presidential administrations, he added, “I think both transitions will go exceedingly well.”
On the “greening” of CE, Shapiro said that the Obama Administration’s expected focus on the environment will “transmit to the CE industry… We want to work with him on a national approach to recycling,” Shapiro said. “Green potential is out there, and with CE, green products are the future. But nothing – except the February 2009 date for the digital transition – will happen in one day.”
