Worldwide Hard Drive Shortage Hits All Tech Companies Hard, but Retail Radio Inc.’s Solution Allows them to Continue Operations with No Affect on Customers

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Retail Radio Inc., one of the fastest growing digital retail entertainment service providers in the U.S. and Canada which provides sensory branding services including licensed ambiance for business, was able to continue their business uninterrupted by the hard drive crisis in Thailand because of proactive quick thinking with their hard drive provider.

Flooded industrial park in Thailand housing hard drive suppliers.

Flooded industrial park in Thailand housing hard drive suppliers.

"We are grateful to have dedicated suppliers like NorhTec that would work with us to proactively protect our customers through this unprecedented hard drive disaster in Thailand," explained Tom Benning, Dir. of IT.

Solution Prevented Disruption in Retail Radio’s Explosive Growth for 2011

Thailand’s flooding has had long-reaching affects on the hard drive industry worldwide. Companies like Intel expect to not be able to return to forecasted sales numbers until at least mid-2012. Research firm IDC expects that Q4 2011 hard drive shipments will fall about 30% short of demand. However, Retail Radio Inc., one of the fastest growing digital retail entertainment service providers in the U.S. and Canada which provides sensory branding services including licensed ambiance for business, has been able to continue their business uninterrupted because of proactive quick thinking with their hard drive provider. Due to dedicated relationships with their suppliers in Thailand, they were able to prevent a disruption in service to their customers through some advance planning as the rains were beginning to bear down on the region. Retail Radio is quickly becoming a force in digital retail entertainment and now has overcome a potential barrier to its tremendous expected growth in 2011.

Retail Radio has been a long-time customer of hard drive supplier, Western Digital, which houses its production in Thailand. Retail Radio also works closely with NorhTec which assembles the digital players used in their solution. Retail Radio’s close relationship with NorhTec was proven when NorhTec notified them several days before flooding reached their region of Thailand. That allowed Retail Radio to secure a large supply of hard drives at a pre-negotiated price before the plants were forced to shut down. NorhTec had plans to move their assembly division to a secure location immediately. By securing the secured hard drives, Retail Radio’s supply chain for their digital player solution remained intact.

As a result of this planning with NorhTec, Retail Radio negotiated a price in October that was higher than their pre-flooding price (about a 60% increase) but lower than expected once damage occurred. Today, the industry average price for a hard drive is nearly three times higher than before the flooding. That price increase was reasonable enough that Retail Radio chose to absorb the increase as a necessary cost of doing business and did not pass it along to their customers.

“We want to build strong, long-term relationships with our clients,” explained Tom Benning, Director of IT for Retail Radio. “A loss of access to hard drives could have been devastating to the growth of our company. We are grateful to have dedicated suppliers like NorhTec that would work with us to proactively protect our customers through this unprecedented hard drive disaster in Thailand.”

“Our hearts go out to the victims of this catastrophe,” said Bill Louie, V.P. of Sales. “It really shows you how small the world is and how connected we all are. We are relieved to hear that many of the employees of our supplier companies will be able to return to work soon now that the waters have receded.”

Retail Radio is a leader in the digital entertainment and sensory branding providing customized messaging opportunities within digital music solutions for retailers. In 2011 they were able to surpass their growth goals and were able to adjust their annual projections higher for two out of the four quarters.

About Retail Radio:    
Retail Radio, one of the fastest growing retail entertainment service providers in the U.S. and Canada, provides sensory branding services including licensed ambiance for business. Their services also include messaging designed to entertain and educate which creates revenue generating opportunities. Retail Radio’s offerings include licensed music, on-hold music, video services, queuing and production services. Retail Radio services are active throughout the United States and Canada in thousands of locations. Retail Radio’s clients include Fortune 500 companies as well as small businesses who want the most for their customers’ shopping experience. For more information please visit http://www.retailradio.biz or call 1-888-807-6863.

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Heather Atherton
Atherton Public Relations
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