bayerische wrote:

I have not the first hand expertise from sales that Trip has, but I'm sure that USA and EU is very different markets for B&O. 

I think you're right. The US client does not value build-quality or design as highly as the EU market. I think this results in our clients having a higher income threshold than EU buyers. Consequently we are definately more top 1-2% oriented here versus maybe top 5-10% in EU.

It's always seemed very binary to me with US customers. They're either buying very emotionally and very open to luxury/novel solutions, or they're simply interested in the least possible expense to accomplish a task. From my brief time living in and traveling in EU I've found that people are generally open to small luxuries across the income spectrum and so might be willing to indulge in ways that don't rigidly fit their demographic identity.

I have been in B&O stores in EU countries and the US.  It seems mostly the same to me.  I have also purchased B&O products in the EU and the service was very good.  I purchased a Serene phone in France.  The experience in the store was most pleasant.  During the sales conversation, there were some things I didn't understand because I don't speak French real well.  They found someone to translate for me.  I'd like to see a US store try that one.  Maybe there is a difference between the EU and US market but it is not that apparent to me.

One huge cultural difference is that most Americans consider themselves part of the middle class.  It is odd but people of wealth will usually say they are in the middle class.  People who do demographic studies have devised other ways of figuring out a person's income status.

Trip, You probably have done many installations for the MC Mansion crowd who maybe don't care as much about quality but just want everything to be bigger.  I guess I would classify myself as part of the architecture and design category.  I usually know what I want long before I enter the store or call to place an order.  Quality means a lot to me.  In 2009, I acquired Beolab 9 and a Beosound 5.  I am pleased with both purchases.  Not your typical $100k purchase but It was something. 

Like JK in the earlier post, I was hoping for a smaller TV but I now think the 40 inch Beovision 10 mounted on the wall is the new small TV.

I think B&O is doing fine considering the recession.  There have been many good companies that have disappeared. 

TripEnglish wrote:

Petra, 

That idea comes and goes internally. The 60 sq. meter concept was an example of this and there are a few of them in place. The issue is generally that the stores are independently owned and so the owners are reticent to take on the prospect of opening a retail shop without a product line to support it. 

I would say with what's coming out that a dedicated retail shop may be more appealing in a year and a half. We'll have a robust BeoVision 8 lineup, a BeoVision 10 in two sizes, and another audio concept. 

Trip,

First of all that it makes good business sense to serve the clientele you feel you can serve best. I have no problem with that.
Another remark was made that EU and US client base is very different.  Having lived in europe for 28 years and now 14 years in Montreal (all of them working in high-end interior design, both residential and commercial), I can assure you of the difference. Montreal also being one of the most 'European influenced' cities in North America.

It's obvious that reaching for the higher end and contract market has been more successful in North America than in Europe. The launch of the BV10 and it's pricing is the right step for B&O to slowly get back some of the clientele that it has lost. Kudos for B&O to recognize the problem and doing something about it. Having seen the BV10 in europe, I am sure it will do very well here in North America as well.

I agree a dedicated retail store is still the way to go here in North-America. However, allowing lower-end products to be sold through other channels would help to make more people aware of the brand. Selling the A8's through the apple store is fair attempt at this, so please more of that (in the right channels)!

I am looking forward to (finally) buying a BV8-40 or BV10-40 or bigger when they finally become available in North America and I am super excited if there would be another audio concept coming soon. Looking forward to upgrade my beosound 4000.

linder wrote:

Trip, You probably have done many installations for the MC Mansion crowd who maybe don't care as much about quality but just want everything to be bigger. 

Not a single one I can recall. Maybe a few A8 sales, though!

McMansion owners seem generally interested in broadcasting their wealth. B&O doesn't whack you over the head the way cars and watches do. Maybe we should find a way to make the logos bigger. 🙂

Can you spill the beans trip? Who buys the beoliving installations? I know I will at some point invest in that in a couple of years - I do want a small TV with that though.

I think B&O are doing really well. if there's one thing they should work on its their products' prices, I know they're of exceptional quality and all that but by now B&O are much more well known around the world than 10 years before, I think they actually might be the most well known luxury manufacturer in the world, so they could produce more and lower their products' prices, im sorry I dont know how to say this as english isnt my first language but I mean to be between exclusive and mass produce, just so their products are a little cheaper but not lower in quality. but looking at their range I can go so far as to say they have one of the most complete product range even compared to sony or samsung (TV and audio products I mean).

rghaleb wrote:

I think B&O are doing really well. if there's one thing they should work on its their products' prices, I know they're of exceptional quality and all that but by now B&O are much more well known around the world than 10 years before, I think they actually might be the most well known luxury manufacturer in the world, so they could produce more and lower their products' prices, im sorry I dont know how to say this as english isnt my first language but I mean to be between exclusive and mass produce, just so their products are a little cheaper but not lower in quality. but looking at their range I can go so far as to say they have one of the most complete product range even compared to sony or samsung (TV and audio products I mean).

I think the BeoVision 10 is the first of several products that are introduced at a lower price-point by removing some of the equipment that the average user would not need. There should be several options in the coming years, but B&O will always be an investment. 

jk1002 wrote:

Can you spill the beans trip? Who buys the beoliving installations? I know I will at some point invest in that in a couple of years - I do want a small TV with that though.

I'm assuming you're not asking for actual names! 😐

But if you mean a "profile," I can try, but the clientele are very diverse.

It seems that the one major characteristic (aside from pockets deep enough!) is that they're all extremely busy. They have very demanding careers, and generally have several homes, most of which are managed. In this sort of lifestyle, their free time is very valuable and they have extremely high demands for their down time. They're almost never interested in the inner workings and they trust, and judge, exclusively with their own senses. They demand things be pared down to the essential and get frustrated easily with novelty. They value aesthetics very highly as well as a good relationship with the dealer. In these situation we often work only partially with the end user and handle the logistics through a house manager or other intermediary. 

So I could go on and on about unique cases, but that's the typical BeoLiving client in my market. 

That is to some extent what I figured. At least for the US, I think their marketing is off base. They should put more emphasize on the installations they have done. If you walk by a store all you see is expensive products in the window, unless you walk in and unless there is a proper Beoliving installation.

For example, when they have a BV7 running it should show a video showcasing these high end installations. I can see that in Europe the market is different, maybe that is why they are not really pushing into this direction.

I remember at some point they made an effort with Beoliving but that seems be tapering off again, now it's hidden somewhere under home integration on their website - just like a product.

Maybe it is too difficult for some dealers to run these projects.

There are Beoliving type B&O stores in the US.  Here's information about the store in Salt Lake City which is about 1000 miles away from me.

Bang & Olufsen, the international maker of exclusive, high quality audio and video products, and Lifestyle Electronics, a Utah-based electronics provider, jointly unveiled a new Bang & Olufsen showroom in Salt Lake City, Utah on July 13, 2006. The latest showroom is significant because it is both the largest Bang & Olufsen showroom located in the United States, spanning over 5500 square feet, in addition to one of the first showrooms to showcase the new BeoLiving concept - a completely integrated way of living with customized audio and video products that can converge with lighting, draperies and various atmosphere control modules to better suit each and every customer's lifestyle.

The new BeoLiving rooms will showcase a full surround sound set up with powerful, technologically advanced loudspeakers, impeccable viewing displays - on 65 inch plasma as well as a larger projector screen for both intimate and home cinema viewing modes. Additionally, the rooms will feature sophisticated, rich, mahogany wood concepts, sleek Danish lighting, and contemporary home furnishings. The new showroom will be more like a benchmark for other B&O showrooms in the US which will be refurbished to embody the new, all inclusive home theater rooms.

http://beostores.bang-olufsen.com/saltlakecity-gateway/welcome