Company overview

Emerson Radio Corp.’s main products are microwave ovens and audio products, with microwaves accounting for most product sales. It designs and sources affordable products from manufacturers in China, then sells them mainly to large retailers and online marketplaces in the United States. Most shipments come from U.S. warehouse inventory; some go directly from overseas to customers. Product sales provide most revenue. A smaller business collects royalties from other companies allowed to manufacture or sell products using the Emerson trademark.

Amazon supplies a large share of revenue, and Fred Meyer is another major customer. Customers place individual orders rather than commit under long-term supply contracts. Outside sales representatives generate most sales, with much of the business concentrated in two representative organizations.

All finished products come from China, with Welly and Midea supplying most purchases. Emerson must plan inventory before customer orders arrive, so the business depends on matching purchases to demand and getting products delivered on time. U.S. tariffs on Chinese imports affect product costs, and higher selling prices to recover those costs can weaken demand.