Bang and Olufsen Outsourced

568 replies
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I would like to start out by saying that I was disappointed to learn that some bang and olufsen products such as the Beolab 4 and Beosound 10 were being made in China. Now I'm beginning to wonder where my Beosound 2 and Headphones from 2006 were manufactured?

I can understand that the execs at B&O want to make their shareholders happy but I think this was the wrong thing to do for many reasons. B&O always prided itself on Danish craftsmanship and this is also what went into their products. Many of you will say that the final assembly doesn't matter that it's just about putting a metal top on, well if it was tha simple they would have never outsourced for manufacturing is a very labour intensive thing and therefore costly. You should look at some of the manufacturing videos from Struer and see how much passion these people put into their work. It wasn't just a job for many of the workers there. As far as the internal parts maybe some circuits did come from other countries. It for country of origin rules a certain percentage must be manufactured in the place of origin. Some countries it can get as high as 70%!

Outsourcing is the act of giving up control over your production. Technically of bang and olufsen had their own factor in China it would not be outsourcing but they don't. They are made by a manufacturer that makes inferior products for other manufacturers. Yes Bang and Olufsen has outsourced in the past such as with the Beosystem 10 and Form 2 headphones which were both made in Japan. One must remember though that these products were made by a premier Japanese manufactured of electronics and that Japan itself has some of the highest labour costs in the world. In fact I have many Japanese products which are more expensive than American or European ones such as my Japanese denim jeans which were handmade by craftsmen from hand died rope in real indigo from Fukushima...

My point is that we can always find the best quality handmade craftsmen products without having to buy outsourced third world country goods. Blue jeans cable makes high quality audio cables from American made cable and Japanese connectors for as little as 10-15 bucks a foot. American Apparel mass produces t-shirts for the same price as Chinese ones but made from American cotton in America. Miele still produces vacuum all home appliances from German components in Germany. The list goes on and on even my Fujitsu laptop was assembled in a specialty built factory in Germany with the motherboard being built there as well and the screen being made in Japan. I'm sure it has 10% or more Chinese components but it's been the most reliable computer ever owned and I'm supporting German industry.

The bottom line is that nearly all companies outsource to fill their pockets if this wasn't the case they would charge 10 times less than they did before they outsourced but in fact they are charging the same or more whilst earning 10 times or more profit and it is for this principal that I refuse to buy goods outsourced to third world countries.

A Swiss watch isn't a Swiss watch if it isn't made in Switzerland. A Danish product is not Danish if it is made it in china but simple a Danish designed Chinese product. Bang and Olufsen is increasingly becoming a consulting marketing firm and less and less a manufacturer. Looks like I will be buying the vintage 90s B&O products I drooled over as a kid after all.
Nearly all high end niche products are made in developed countries. For example professional cinema equipment is nearly all made in the USA, Japan or Germany. Sinfoni is Made in Italy. Rolls Royce is still hand built in England from almost entirely of hand built British components even if it is owned by the Germans. Miele is made in Germany. Leica is made in Germany although with some Japanese components. John Lobb and Edward greens are made in England. I can go on and on... My point being these companies survive many thrive even. Many don't mention or advertise whee they're made while others make it their foundation. Either way they do it for a reason. I don't want B&O to ruin their image and become like Bose. I wish they could stay like many small Danish audio manufacturers... I owned the Beosystem 10 that was built in Japan during the bubble when Japan was the most expensive country on the world and the Japanese were the richest people. The fit and finish of that was amazing far better than the bs8 and it' because I was built by the Japanese with thei high attention to detail in their prime. 

 

As has been mentioned before,the Chinese are perfectly capable of producing high quality,high spec products.

In fact I am typing on an HP Laptop,resting on a Logitech Speaker Lapdesk,both of which are high quality,and made in China.

One would expect B & O to be exercising a stringent QC regime over one of it's third party suppliers.

If one feels that a product's quality is commensurate with it's cost,does it really matter where it is manufactured?

 

 

The problem with this "China" issue is more snobbery rather than knowledge of manufacturing. People just assume that only Western manufacturers are somehow pioneers of quality manufacturing. Ironic, considering there was a recent German poll and their view of British manufacturing quality was fairly low - viewerd as manufacturers poor quality goods.

Chinese manufacturers do what you tell them to do. When Apple, as an example, design their high-quality products, they don't design them around what their Chinese manufacturer is capable of producing! The other way around. Apple design the product in their labs and, when complete, they show the specs to their manufacturers and they get the factories tooled up to cope.

Indeed, I'd go as far as saying that the Chinese go beyond what they need to meet a clients requirements. They are only too happy to get it right. They are very very embarassed if they get production wrong - unlike in Britain where we can't get Brit workers interested in manufacturing.

As for Chinese "quality issues", those issues come from our consumer demand, rather than the supply. We DEMAND cheaper goods and, because of this, the suppliers are always finding ways to cut corners, so they can cut costs. To get your 50" TV for £799, the manufacturer uses even cheaper plastics, cheaper speakers and so on.

That's where the pereception of poor quality comes from, not the manufacturing process.

Armani and many luxury clothing brands have been producing in China for years and barely anyone has noticed. People still buy from those brands as frequentely has they have done previously. Only difference is, Armani is making more of a markup as they can get them produced more cheaply.

Getting the BeoPlay and other "cheaper" products produced in China doesn't affect my view of Bang & Olufsen. As I said above, the Chinese haven't designed the products for B&O. They are 100% B&O. They specify the design, the materials and the components.

We all worry about B&O losing money, share price going down and so on, then when they look at a way of saving some money and getting goods on the shelves more quickly - like other manufacturers - we see complaints coming in.

This is modern life. We all want cheaper prices and more quickly developed products, but we want them made in Denmark, too? We can't have both. Blame consumerism for a start.

And no-one said it is "made in Denmark". My BS8 quite proudly says "Made in China" !

I totally agree with Dkatz. Bang&Olufsen have lost it! Quality top brands do not fully out source.

When asked over the weekend about Chinese made products, my younger generation thought 'poor quality, high profit'.

I've just come back from a long weekend in the Lake District.  Our Lake House had a Yamaha micro system in it. I conected both my iPod and iPhone to it and it TOTALLY blow the BS8 away. Far clearer treble, better mid, far more bass and totally rocked a party. This retails at £299!!!   The BS8 is three times dearer. I'm totally to the conclusion that B&O are aimed at the rich old man who is stuck to their products. I saw the BS8 in the Apple Store in Covent Garden last week. There must have been 200 people in that store and not one person was interested in the B&O.   Made in China - outsourced B&O? Profit profit profit taken from the rich man!

Tod Daniel wrote:

I totally agree with Dkatz. Bang&Olufsen have lost it! Quality top brands do not fully out source.

Most of the modern luxury clothing brands now manufacture in China. Most consumer electronic developers do, too.

There's a reason beyond pricing - it's supply. Apple will demand a certain amount of stock for their retail stores and there are only a few manufacturers capable of tooling up and producing product in quantity. B&O's factories are more suited to product on demand.

Just get used to it and, if you don't think the brand is for you, move on. I know, for one, I'll be enjoying my BS8 as much as I do any other B&O product (and more so, in many ways).

Tod Daniel wrote:

Profit profit profit taken from the rich man!

Ironic considering the price of the products, 'eh?

Let's just see B&O fail and be done with it! Clearly you understand how to pull B&O out their hole better than B&O.

Question for Dkatz and Tod Daniel..

If the BeoSound 8 was truly manufactured and assembled (every last process - all the way) in Struer, Denmark.. would you pay £1,495 for it ?

That would be the price if it was 100% 'Made in Denmark'

Answer honestly.

Lee

There are a couple of people on this board who are always complaining about the price of the BS8 - they say it needs to be even cheaper. Now, I'm not going to fully disagree I'd like to see it come in at £699, but you are getting a lot of £890. You receive speakers close to BL4000 quality.

I barely can fault my BS8, but I can't always say that about my Danish-produced B&O kit. Particularly software issues (BV7, BS5 etc).

Here's that article about British manufacturing: link

And, as Brits love to consume (and seek the cheapest prices), we'd have more of a piece of the pie, if we weren't to blame for our own purchasing decisions:

Tod Daniel wrote:

I totally agree with Dkatz. Bang&Olufsen have lost it! Quality top brands do not fully out source.

When asked over the weekend about Chinese made products, my younger generation thought 'poor quality, high profit'.

I've just come back from a long weekend in the Lake District.  Our Lake House had a Yamaha micro system in it. I conected both my iPod and iPhone to it and it TOTALLY blow the BS8 away. Far clearer treble, better mid, far more bass and totally rocked a party. This retails at £299!!!   The BS8 is three times dearer. I'm totally to the conclusion that B&O are aimed at the rich old man who is stuck to their products. I saw the BS8 in the Apple Store in Covent Garden last week. There must have been 200 people in that store and not one person was interested in the B&O.   Made in China - outsourced B&O? Profit profit profit taken from the rich man!

I don't believe I have been to the Apple store in Covent Garden but I assume they sell the same Apple products as all the other stores.  All Apple products are made in China and almost everything in an Apple store is made in China.  If customers are not interested in Beosound 8 in the Apple store, there must be some other reason.

BS8 is selling OK in apple stores - not sure about worldwide, but certainly enough or apple to be happy.

 

Also - the idea suggested here by some that apple buyers shun Chinese-made products with a premium price over "multibrand" is joke, surely.

Whilst some apple kit is not too pricey, much of the ( Chinese) range is twice the price of similar specified kit - just like much b&O kit is.

A no-optical drive notebook for £1000, laptops for £1800, desktop computers at £2k and over.

ALL of these can be substituted by products costing maybe 40 or 50%, and offering ( superficially) similar performance.

But, just as using a Beo4/5/6 to control Sky via a BV10 is simply a joy, I assume listening to mp3's and writing a word doc on backlit keys, within an alumium encased laptop is worth more than listening to the same MP3's whilst using my Acer netbook to write.

 

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