Audiovox 1997 Annual Report Download - page 7

For mo st of the 90's our expansion
has been in international distribution.
Over the last five years, we have estab-
lished distribution in over 25 countries
a ro u nd the wor ld and have added
a majori t y- owned sub s id i a ry in
Ma l aysia for dist r i but ion of OE
programs in that country.
1997 has been one of our biggest years for strategic moves. Early in the
year we announced the formation of a majority-owned subsidiary in
Venezuela for the marketing of OE products to automobile manufac-
turers in that country. We also split off our Heavy Duty Sound division
into a 50/50 venture called Audiovox Specialized Applications which is
better- equipped to handle the specialized needs of that market.
Lots of things-reliable products; strong
distribution; dedicated employees. But
if I had to pick just one, flexibility would
be a key factor. Audiovox pays attention
to the needs of our customer base as
well as the ever changing con s u mer
appetite for new electronic products.
Audiovox started out over 30 years ago as a car stereo company, but we
didn’t stop there. We hold the distinction of being the only car stereo
company to have made the successful transition into security and
communications. In fact, Audiovox holds a dominant position in all
three of those major market categories.
Sales in the Automotive Division at Audiovox have grown steadily over
the last five years. Our Prestige brand name is by far, one of the most
re sp e c t ed security bra nds in the ma rket. In auto s o u nd, Pre st ige
continues to make steady progress in consumer recognition as a high
quality but affordable car stereo line. Prestige sound is now one
of the broadest lines of car stereo available with a full compliment of
cassette units, in-dash CD units, CD changers, amplifiers, speakers
and components.
Last October, we launched our new Mobile Video
sales group which will focus on bringing the new car dealer and mobile
electronics specialist mobile video products, such as in car console
TV’s and video players, DVD players and LCD monitors.
An Interview with Patrick M. Lavelle,
Senior Vice President, Automotive Electronics
audiovox electronics division
Q U E S T I O N :
Audiovox has been around for over 30 years. To what do you
attribute its staying power?
A N S W E R :
Q U E S T I O N :
Can you give a time line on the division’s expansion into inter-
national markets?
A N S W E R :
Q U E S T I O N :
What is the new mobile video sales group?
A N S W E R :
It certainly is. The consumer acceptance of the
family van and sport utility vehicle has skyrocketed over the last couple
of years. These new vehicles are the station wagons of today-packed
with families all looking to be entertained as they travel the country’s
roads. Those bigger vehicles with lots of room inside offer us a wide
variety of possibilities for new entertainment products.
Q U E S T I O N :
Is this a big market?
A N S W E R :
Not by a long shot. Thanks to advances in technol-
ogy the category keeps growing. Security systems are now far more
than just car alarms. They couple convenience features with security,
s a f e ty and now com mu n ic at ion s. Sy stems that inc lu de remote
starters, remote garage door openers, remote trunk releases, keyless
entry systems and now vehicle tracking. With Global Positioning
Systems (GPS) and navigation, there’s no end to how far these prod-
ucts can go.
Q U E S T I O N :
Audiovox has been in the security market for a long time. Is
it saturated?
A N S W E R :
Audiovox Automotive products, auto sound, vehicle security
and mobile video, are marketed through the Automotive
Electronics Division. The Division’s Mobile Electronics Group
focuses on the mobile electronics specialist, with the Audiovox
and Prestige brands, and the Car Dealer Expediter, with the
Pursuit and Custom SPS Brands. The Consumer Electronics
Group focuses on leisure products, sold under the Audiovox
brand, and Autosound products, sold under the Rampage
brand. The AE Division supports a considerable OE and private
label effort that includes light manufacturing and assembly in
its Hauppauge, New York facility. International sales efforts
for AE include majority-owned joint ventures for OE programs
in Malaysia and Venezuela.
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