I've (tried to) translate an article from a Danish business web site - www.business.dk - about the future strategy for B&O.
Enjoy - Claus
Is B & O’s road to future success through the national mainstream Audio-Video-market or Chinese luxury consumers? The experts are divided on the issue, which is crucial for B&O's future.
Make a clear choice! That is the recommendation for the 36 year old Tue Mantoni, who in a few weeks will be on top of Bang & Olufsen as the company's CEO. He has not told the public in which direction he wants to drag B & O.
The answer is called for by experts - who are themselves deeply divided about who the 85-year-old electronics company should focus on. Improve the B & O as super luxury brand and go exclusively for the Asia market, recommend one. Another will drag B & O down from the luxury pedestal and get products into the national mainstream dealers.
Purchasing power in Asia
"If I need to put a heading on the agenda for the new director, it will be to take Asia seriously and make it a home market for B & O. There is a very large purchasing power there" says Martin Roll, an international brand consultant.
The global agenda tilts to the east, and already in about five to ten years, it results in Asia, which will be crucial for the success for global brands.
"The global world order has changed and therefore it is stupid to have such great fear of contact for Asian markets as the B & O currently have," says Martin Roll.
"B & O must still be expensive", he says. "Maybe even very expensive".
"In Denmark we have a somewhat special relationship with B & O - and do not believe that it must be too expensive. But if you look at the global market – you'll find that lifestyle products can hardly be expensive enough. This is true in Asia and in many other markets where there are luxury consumers"says Roll.
From pedestal to mainstream dealers
B & O should go a completely different way, says Bruno Christensen, who has advised many major players in retail trade. B & O's sale will not grow enough if the Struer based company focused entirely on luxury consumers, he warns.
"B & O's road to growth is that it climbs down from the pedestal" he says.
Consumers, according to Bruno Christensen, changed behaviour after the crisis, and they are now not so much into how products are sold. Therefore B & O should give up many of their expensive flagship stores and instead move into mainstream stores, he believes.
"Consumers do not distinguish between how and where products are sold anymore. Now consumes focus on the product itself" says Bruno Christensen.
He believes, however, like Martin Roll, there are still consumers out in the world, who would only buy products in exclusive surroundings.
"Obviously, if you're in a market where the customer base is large enough for luxury, for example, in Chinese and Russian cities and in New York, then it makes sense to have a few flagship stores, but it is not here that you get the large volume that can raise the B & O's turnover".
Link: link (in Danish with photo of the new CEO)
