Note I said risky. Some amongst the existing community assume the strategy of targeting VHNWI’s is doomed to failure, but I’ve counselled caution against that doom. (since they embarked on this re-targeting 18-24 months ago, I’ve always described it as a survival strategy).
After all there is a certain logic is shifting more of your customer base to where the vast pools of money are concentrated, those who are unaffected by global economic cycles.
The risk comes, to me at least, from holding onto customers you have targeted with scarcity / super luxury / halo status type marketing, in that they may well be more fickle and less sticky as long term customers than before.
And generally, VHWNIs (or even those who stretch to buy 20k+ speakers) have pretty high expectations of both service and performance. In both of these areas we all know B&O, for all their attractive designs, can test the boundaries of acceptability.
If one wanted to set aside these concerns, then yes there is nothing inherently wrong with making current revenues with 30% lower volumes, and their gross margin is improving. But the size of the customer base you have left then becomes both super important and your existence a bit fragile.
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