Bang and Olufsen Outsourced

568 replies
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Dkatz wrote:

The reason it's “OK” to produce anywhere in the EU is because you have EU labour laws and EU wages which are fair for each region or country. If B&O opens their own factory in China, pays fair wages to their employees with benefits and fair working hours, etc... Then I will definitely respect them more, however at that point they would be stupid to spend all that money investing in another country whose future is uncertain. Much safer to just invest in Czech or anywhere in the EU where you have their protection. I think it would be too costly to relocate and pretty pointless just to save a few dollars an hour but with many additional risks compared to the safety of just manufacturing in Czech for five times less than Struer.

So it's quite OK to pay Czech workers a lot less than their Danish counterparts but entirely unfair to pay Chinese less than Czech employees!😕 How do you know that the wages paid by the Chinese assembler are not "fair for the region"? Following your reasoning then everyone should be paid at Danish rates or else you accept that labour rates are determined by local economic conditions and a good employer will pay good wages - relative to the local average, even in China.

I still don't think you get the significance of manufacturing in China - it's not "a few dollars", there's a huge difference. It's not unknown to be able to source a complete assembly or product for less than the raw materials or components can be bought in Europe! I'm not suggesting that is the case here but it serves to show that the cost advantages can be compelling.

Puncher wrote:

I still don't think you get the significance of manufacturing in China

Crikey, is this discussion still going? I'm sitting here enjoying my BV10, listening to my BS8, and wondering what all the fuss is about. Panicking they are about to fall apart any minute, clearly. I barely dare touch my BS8 is so shoddily put together. I've noticed that the solid aluminium is porous, too. Need to be careful around water. If only they'd use Danish-grade aluminium.

Life is full of unanswered questions! So glad Dkatz is here with factual answers to them all.

Puncher wrote:

So it's quite OK to pay Czech workers a lot less than their Danish counterparts but entirely unfair to pay Chinese less than Czech employees!😕 How do you know that the wages paid by the Chinese assembler are not "fair for the region"? Following your reasoning then everyone should be paid at Danish rates or else you accept that labour rates are determined by local economic conditions and a good employer will pay good wages - relative to the local average, even in China.

I still don't think you get the significance of manufacturing in China - it's not "a few dollars", there's a huge difference. It's not unknown to be able to source a complete assembly or product for less than the raw materials or components can be bought in Europe! I'm not suggesting that is the case here but it serves to show that the cost advantages can be compelling.

 

Puncher – I am not just talking about pay-scale. I am talking about working conditions, labour laws, etc... Look at this article for example:

Dkatz wrote:
The higher quality of Taiwanese manufacturing compared to Chinese is exactly why the high end mechanical keyboards (among other computer components) that cost $100-200 are manufactured in Taiwan and not China and also why there are so many electronics/computer companies coming out of Taiwan and not mainland China. Quite often when electronics and computer companies are stuck between choosing high cost manufacturing in the US/Europe/Japan, or low quality in China, they will choose Taiwan as the middle ground.

If you kept to acknowledged facts instead of making stuff up (such as above) and repeating those as supporting your views, perhaps people would take you more seriously.

Dkatz wrote:
Although this is harder to tell apart when it comes to things like computers and iPods, it is much easier to tell apart in woven materials such as Chinese cashmere or silk as compared to Italian silk or Scottish cashmere as an example.

You mean the Chinese have outsourced silk manufacturing to Italy? They did pretty well themselves for a couple of thousand years.

I really, really should have known better than to come back and post again!😂

Here are a few quotes from the B&O Play announcement of the "Play TV" thread -

- Based on Bang & Olufsen’s core values such quality materials and elegant design, the B&O PLAY line will consist of stand-alone products, with a wider appeal and lower prices. (Dkatz - note the lower price requirement)

- The classic Bang & Olufsen brand will continue to exist and represent luxury electronics products.

- Bang & Olufsen will not compromise on core values such as quality materials and design, and promises to never use words such as “aluminum look" or “high-gloss plastic”. If a B&O PLAY product looks like it is made from aluminum, it is made from that material. Bang & Olufsen has a code of not reducing material quality in order to reach lower price points.

- "B&O PLAY is based on the same legacy and the products are made by the same engineers. Therefore B&O PLAY is an honest Bang & Olufsen product,"

The intentions are clear in that the products will still be made of good quality materials etc.

That's me definitely done this time, I'm off back to the real world, I hope everything in Wonderland goes well.

If anyone finds me posting on this thread again then please shoot me!

tournedos wrote:

Dkatz wrote:
Although this is harder to tell apart when it comes to things like computers and iPods, it is much easier to tell apart in woven materials such as Chinese cashmere or silk as compared to Italian silk or Scottish cashmere as an example.

You mean the Chinese have outsourced silk manufacturing to Italy? They did pretty well themselves for a couple of thousand years.

I was told recently that the Chinese are extremely good at certain types of knitting, particularly with silk and cashmere. In fact, they have weaves that better those elsewhere, which is a reason why Armani and others moved their knitwear manufacturing to China.

You'll find a lot of "Scottish cashmere" isn't made in Hawick these days. Edinburgh Woollen Mill makes their stuff in....China.

Puncher wrote:

- Based on Bang & Olufsen’s core values such quality materials and elegant design, the B&O PLAY line will consist of stand-alone products, with a wider appeal and lower prices. (Dkatz - note the lower price requirement)

- The classic Bang & Olufsen brand will continue to exist and represent luxury electronics products.

- Bang & Olufsen will not compromise on core values such as quality materials and design, and promises to never use words such as “aluminum look" or “high-gloss plastic”. If a B&O PLAY product looks like it is made from aluminum, it is made from that material. Bang & Olufsen has a code of not reducing material quality in order to reach lower price points.

- "B&O PLAY is based on the same legacy and the products are made by the same engineers. Therefore B&O PLAY is an honest Bang & Olufsen product,"

I'm sure Dkatz will soon argue that this is just company propaganda, to maintain promise of quality and safeguard B&O's brand, and we should not buy into it. I mean, there are no honest companies, especially those that outsource. It's all just deceitful propaganda.

/sarcasm

 

Tournedos – I am not making stuff up. There are many companies who choose to outsource their higher end products to Taiwan rather than mainland China. If you look at higher end computer products, including high quality mechanical keyboards that cost $100-200 they are made in Taiwan and not mainland China. It's the same story with many GPS systems, and with a really professional scanner I own that was a few thousand dollars when it came out. 


The Chinese have not outsourced silk manufacturing to China. They were famous for it for thousands of years but it doesn't mean they have the best mills available or that they are the best at it. Following the “cultural revolution” many craftsmen were killed off or their businesses taken away from them. There are not many craftsmen left in China that spend one year to produce silk fabric as they do in Japan for example. In Japan fabric for a single kimono can take a year to produce, and the attention to detail and quality is unparalleled. In China it's more about mass production and cheap silks rather than a focus on quality and you would be very hard pressed to find silk with the same attention to detail. China is perhaps now the worlds most industrialized country, and even though Japan and Italy had their own industrial revolutions, they kept hundreds of thousands of their own craftsmen instead of persecuting them!


Puncher – This is just B&Os own propaganda. You tell me to back up my statements with fact and then spew their advertising on me as proof of quality? My point AGAIN is that the price point is NOT LOWER than comparable portable products they have released in the recent past (BS1, BS3, etc...)  Intentions for quality and what actually comes out of it are different. In my perception it is far and between the quality of other products they are producing. They even admit that it's not a luxury product by saying “ The classic Bang & Olufsen brand will continue to exist and represent luxury electronics products.” meaning the Play brand is not that...


Moxxey – Armani outsourced not because China has better weaves but because like many clothing manufacturers they wanted to save on cost. If you look at Wool as an example the finest micron wools that win awards every year are always New Zealand and Australian Merino Wools, which are often milled in Italy. These are the ones that win the gold prizes, not Chinese wools. As far as silks go , look at the attention to detail of Kimono milling in Japan where it takes upto a year to make fabric enough for one person, the rope is died by hand, and the machine used is one from the middle ages where the silk is lined up to the pattern and corrected by each thread. I don't think any other country in the world uses these types of machines.


This is exactly why Japanese denim is considered the best. Where Levi's and other companies have outsourced and mass produce jeans in horrible quality. Japanese brands are often produced using the Selvedge method which takes 10 times longer to produce using special machines that were produced before WWII. They also make their jeans from died rope, often with natural local indigo, and quite often their jeans are raw. Dior and a few other western fashion brands see this and actually produce some of their Jeans in Japan as well. Where as most western manufacturers took to cheaper worse quality manufacturing after WWII, Japanese brands stayed with the higher quality, traditional methods of denim manufacturing.


China might have had excellent quality craftsmen before the cultural revolution and they might have a few now. But these are not the mass produced goods you buy such as the BS8 and Beolit 12. Neither are they the 99% of mass produced products you buy from the store or from brands, etc... The best Lacquer produced used to be in China maybe 1000 years ago, but today it is from Wajima where they take years to make on lacquered image on a bowl or plate for example with techniques such as Makie or Chinkin. It's the same with fountain pens where Japanese use traditional techniques to produce them such as in the Nakaya pen company that hand grind their nibs from 18k-22k gold and then make by hand the pen from ebonite, wood, or even tortoise shell. The list goes on and on and there are not any offerings I have seen even close to this quality from China. In fact Denmark is known for some of the highest quality audio manufacturing just like the products I mention Japan is known for or Harris Tweed in Scotland, etc... This is what made B&O what it is in terms of quality.


The Scottish cashmere I buy is Made in Scotland not in China. There are maybe some brands that have outsourced to China though. There are still many Scottish mills available. Some wool such as Harris Tweed is actually protected by the government and has been partially subsidized, in fact it cannot be called Harris Tweed unless it is hand woven by local craftsmen in the Outer Hebrides from local wool.


KMA – I don't think that it is deceitful propaganda but a company must sell its products and what better way to do this than to justify their new move to a lower end product line... Do you personally believe everything a company says? I never buy stuff based on marketing hype or company advertising, in fact I sometimes do months of research before I buy something and even then I ussally have to see it and test it and feel it...Many companies say that they are better than a competitor such as one vacuum advertisement I saw "Better than Dyson" well I don't even think Dyson is that good and that vacuum was just pure crap. Miele on the other hand never advertises that they are better than Dyson, but they just are without having to say it....

 

 

There is one point that I'm bothered about regarding this outsourcing trend and I don't recall anyone really mentioning it (sorry if I miss it somewhere in this 500+ posts thread): the B&O workers, the force that helped B&O become the brand we now know.

I mean, what have these people become?! If so many products are now produced in the Czech facility with local workers, and on an extended step in China, what's left then in Denmark (apart R&D)? Have the workers in B&O factory been fired since then? If a majority of B&O products is outsourced, I'm assuming it's the same for the taskforce that was behind it, right?

Do people know if there were any lay-off plans at B&O's factory? In my eyes, that would be what's most shameful, cause it wouldn't be just about products, but human lives who contributed to forge a brand and pushing up to the level we know. And that would be sad...

One more thing about China.  As I have said before they make good in the trash can products.  As an example.  My 4th in under a year Samsung BD-D7500 Blu-ray player has just bit the dust.  These are $350 US each, that 4 in under a year.  And they only reason to buy this china crap, is because its PUC code for B&O.  It mounts real nice to my Beovision 10 with my STB brackets and looks good, but that just it, it only looks good.  I just hope that Samsung makes its panels better then their blu-ray players.

 

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