Dick Smith Electronics
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| Dick Smith Electronics | |
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| Type | Public |
|---|---|
| Founded | 1968 |
| Headquarters | South-west area of Sydney Australia |
| Key people | Alvin Ng (General Manager) Dick Smith (until 1982) |
| Industry | Electronics, computers, Entertainment / Retail |
| Products | Electronic kits Electrical Components Semiconductors Enclosure (electrical) batteries & chargers power supplies alarm system telephone accessories Electronic test equipment tools speakers Car audio Computers lighting books antennas |
| Revenue | Approximately AUD$1,000,000,000 annually |
| Employees | Over 2000 (2006) |
| Slogan | Know How to make it easy |
| Website | www.dse.com.au www.dse.co.nz |
Dick Smith Electronics is an Australasian electronics retailer founded in 1968 by Dick Smith. The business started as a small car radio installation business in the Sydney suburb Artarmon, but has expanded to the point where it currently employs more than 2,000 people.
After finding that installing two-way radios didn't pay, Dick Smith moved into electronic components and do-it-yourself project kits from around 1970. After touring overseas electronic stores to study modern merchandising methods, he introduced self-serve shopping and produced a mail-order annual catalogue with a substantial data section.
To ensure almost every electronic enthusiast in Australia had one of his catalogues, he paid for it to be included free in the popular electronics magazines such as Electronics Australia and Electronics Today International. This catalogue continues to be produced to this day.
Through the annual catalogue, wacky ads (eg the 'Electronic Dick') and publicity stunts (such as towing an "iceberg" from Antarctica to Sydney Harbour), the profile of Dick Smith Electronics grew.
The company profited immensely from the CB radio boom of the 1970s and by the end of the decade had stores in all mainland states. Though most CB radio stores closed when interest waned from the early 1980s, Dick Smith Electronics survived thanks to strong sales in other areas.
These included its established electronic components and kit lines (thousands of people started with the 'Fun Way' series and worked their way up to assembling Playmaster amplifiers and speakers), Yaesu amateur radio (the company had secured the exclusive dealership) and Uniden-Bearcat scanners.
Also important was the fast-growing personal computer market. The company sold well-known models such as the Commodore VIC-20 and Commodore 64. It also sold own-brand models, such as the System 80 which was compatible with the Tandy TRS-80 Model I, the Dick Smith Cat an Apple II clone, the VZ-200 and VZ-300.
The company was particularly innovative in its product range, especially during the 1970s and 1980s. Some such forays paid off, while others were soon abandoned. Examples of briefly-stocked items in the 1980s included Heathkit electronic kits, satellite TV receiving stations and, foreshadowing near-universal mobile phone ownership, Beeple pagers. More successful was the Dick Smith Wizzard, which earned a cult following amongst computer gamers.
Before telephone equipment was de-regulated in 1984, Australian consumers could only have two different types of telephone in three different colours. People had to take the day off work to get a new phone as they had to be 'installed' by a Telecom technician.
DSE was a major source of 'non-type approved' telephone equipment. A broad range of answering machines, cordless and novelty phones were offered; despite the fine print warning that they were not 'type approved' thousands were no doubt sold anyway. Soon after the market was de-regulated so that anyone could buy an approved phone and plug it in.
Dick Smith sold the company to Woolworths in 1982. The company continued to add to its network of small 'main street' stores in suburbs and regional cities across Australia. Today there are about 130 company-owned Dick Smith Electronics stores, with authorised stockists in country areas.
Though the company has almost always stocked items that would appeal to the general non-technical/non-hobbyist consumer, as the years went on these items took up an increasing proportion of floor space. Die-hard enthusiasts often bemoaned that Dick Smith was becoming like Tandy, in some ways a similar business but with a more consumer focus and a small range of over-priced components in bubble-packs.
As it turned out Dick Smith/Woolworths ended up purchasing its arch-rival Tandy in 2001-2. Tandy had more stores in shopping centres than Dick Smith and previously had strong house brands in areas such as audio, radio and computers. Almost every radio buff owned a 'Realistic' speaker, CB, scanner, shortwave radio at one time. After rapid growth in the 1970s and 80s Tandy stagnated and suffered management problems at its USA headquarters. With the takeover, some Tandy stores have closed while others have become Dick Smith. Both Dick Smith and Tandy have overlaps in their product range and you will see many DSE items in Tandy outlets.
The late 1990s saw the company establish 'Powerhouse' super-stores in Sydney, Melbourne (and later) Canberra. These were several times bigger than regular stores and contained departments for the main product categories and supermarket-style checkouts near the exit. Powerhouses carried a wider range of products than the smaller stores, especially in the computing, audio-visual and Yaesu amateur radio areas. Installation services were offered at some stores.
Since 2002-3 the Powerhouse concept has changed to appeal to a broader consumer market and less to enthusiasts who were the company's traditional bread and butter. Component ranges shrunk and general electronics books ceased to be stocked. The Yaesu dealership was relinquished, ending a 27-year partnership.
Kits were packed up and transferred to the smaller stores, which still devote a corner to enthusiast electronics. The main benefit of these smaller stores is their number; while most enthusiasts prefer rivals such as Jaycar and Altronics these rivals have far fewer outlets than Dick Smith so are less convenient.
Replacing the kits, books and radios are aisles of domestic products such as kettles, coffeemakers, toasters and frypans. Although Powerhouse stores still stock small components, tools, leads and connectors their main emphasis is the mass markets of Harvey Norman, JB Hi Fi and Retravision rather than the niche markets of Jaycar, Altronics or Radio Parts.
It must be said however, that the shift of the whole company away from practical electronics is a consequence of two factors. The first is the declining enthusiast market. With cheap pre-assembled electronics from China and many technically-inclined people into software and gaming rather than hardware construction, kitbuilding has diminished since its heyday in the 1970s and 80s when (at one point) it supported no less than four commercial magazines.
Secondly there are the aspirations of its owner, for whom gross turnover and profit are king. No matter how good the company is, high turnovers cannot be sustained from a niche market. Hence the push to appeal to 20 million Australians as opposed to 200,000 electronics enthusiasts or less than 20,000 radio amateurs. Though some have regretted these changes, they seem to have had the desired effect, with Dick Smith and Powerhouse major contributors to the health of the Woolworths group.
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