Well you can put YT on subtitles and auto-translate. English is certainly available.
Back to the content - which to be frank, I speed read, goes on a bit with the same cliched approach on BNO design, prices and so on and so forth.
It does highlight though how BNOs aspirations are to attract VHNW Individuals (you know the ones where you see YT videos of $10-70million dollar palaces where the BNO products are hidden as well as BNO hide their cables in their marketing guff) and compare the brand to the timeless design, elegance of luxury products Louis Vuitton, Hermes and Rolex etc...
I am guessing that my interpretation of what the Content maker is trying to project is similar to my own view point on the current BNOs marketing strategy to woo and capture the VHNW individuals. That is:-
- The cheaper on-the-go products (A1s. Headphones etc) don't make so much money (a few may even lose money - hence the price increases) in a competitive market and for the budget conscious.
- There is no real stand-out "Burkin Bag" or Classic Rolex Submariner (includes a few Ferrari and Porsche models too) which sells-out so quickly, prices can be arbitrarily increased without protestation, supply and ownership to based on your previous buying history (buying loss-leaders),
- There is no real stand-out tech that sets BnOs technology way above the competition and therefore can be cited as the go-to products for high fidelity etc.....There can be no better example of this than the BL90 and the BS-Core/Essence. In 2016, the BL90s were perhaps one of the best loudspeakers in the world at the time. IIRC, you could add only the BS-Essence (PL only) or the BS-Core (optical/TOSLINK at best) or a Beovision. PL is utter trash for the 90s. Then it was either a choice of your own ripped FLACs or non-Hi-Res Deezer or Spotify. That stayed like that until a couple of months ago with the introduction of the BC-Core/USB connection to make it a half-interesting fight against the competition. Tidal I guess, is helping a little but try as it might, the BC-Core does not compete with the full-fat black-box streaming products available from 3-parties for years. So that's 8-years of a flagship world-class loudspeaker that needs other companies products just to make it work properly.
- All BnO have done in the 8 years the BL90 has been available.......is add a few (expensive) colour-ways and increased the price. Come August 1st, perhaps early 2025, we could well see the BL90s at triple the introduction price (that would be £162k) and filled with the same 9-year old tech and negligible firmware updates to improve the sound to boot.
- As above. All these swanky gin-palaces with marble surfaces on every wall, ceiling, floor, fine Italian furniture, fine old and contemporary art, a level of ultra-high cabinetmakery in every room, kitchen, bathroom etc....and minimal BnO on display?
Taking the last few quarters earnings reports into account, not sure "flat to slightly improving" is actually even fair.
Remember earlier this year (and mid way through their financial year) they had to do an out of reporting cycle announcement that full year earnings were likely to fall outside (below) of their previously guided range. Full year earnings are likely to be close to -8% vs the prior financial year.
Profitability and margins look better of course.
Anyways, becoming a lower volume, more niche if higher margin company we know is a risky position to be in, but the vulnerability may not show up fully for a while yet. The pace of new products though I agree does seem to have slowed somewhat from a few years ago.
Perhaps a simplification of my rantings above.
Two Swiss Luxury watch manufacturers: Rolex and Omega.
Both open a non-AD but company owned Boutique in the posh bit of Anytownsville.
Both charge full price, no discount.
One requires a good and solid purchase history to be considered for a few "hot" but bland models, one does not.
One brand has Grey Dealers selling (although cooling somewhat now) sell for 1.2-2 times the AD new price for a unworn to seriously worn watch, the other sells new watches discounted at 10-20% straight-off. 20-30% with negotiation and haggling!
Everyone talks of Rolex, nobody about Omega (even though I think Omega make significantly better watches IMHO)
B&O wannabe a Rolex of luxury HiFi but are just seen like Omega and realistically, are treated such by Joe Public. VHNWIs do the same unless their Interior Designer tells them differently.
Trying to propose Bang & Olufsen as the "Rolex" or "Ferrari" of the hi-fi world is literally the dumbest thing B&O leadership could try to do. And, no surprise, it's exactly what they're doing.
Without realising how out of touch with the world they are.
They could have done that between the 60-90s.
But trying in 2024 to sell consumer electronics products (because at the end of the day, that is what B&O speakers are) as high-end timeless luxury? Sorry, very few people will buy that.
And, at the same time, also have one of the worst customer support and track record in software development (the app has gone downhill in the last year and a half).
Their red carpet attitude is absolutely unbelievable.
I really don't know what other choice they have. The general population doesn't care about HiFi. I remember when there were hifi stores all over the place. They're all gone, except for a handful that mostly do custom installations. How do you do "consumer electronics" when most consumers just don't care enough to drop big $$$ on it. If you're going to find a niche, it might as well be VHNWI since that's where the money is. I'd rather they do this than sell out to Harmon or some other conglomerate (or worse, private equity) who will a) immediate drop support for any old products integration and b) produce watered down badge engineered garbage (like the car audio division). I'm not a VHNWI so I'm not happy about this direction, but again, what choice do they have. I can admire from a far.
Obviously, they should do better with their software, and they've probably lost a fair margin of customers who bought a less expensive product and had software issues and cross B&O off their list. Then again, show me 1 company that does great software. Even Apple is bad now. My wife hates here newer iPhone... glitchy, buggy, etc. Customers have shown companies that they'll tolerate buggy software by continuing to buy it so software managment say "good enough" far too early. I'd love to stop this, but I don't know how. If I promised to never buy buggy software, I'd have no software at all!
@Stan
You are so right!
All that is left is having/buying used (preloved) products.
Luckily one can still make a damn good setup this way……….something that I would not be able to with products from other manufactors.
I am happy now that I bought the Theatre early on - today I probably would not be able to afford it.
MM
Location: Flensborg————Danmark
Given that the Theatre is going up in price on August 1st (by 500/600 euros), I think we're all glad we bought them early on!
Any comparison to Rolex or Hermes is absurd. If the leadership of B&O, on any level whatsoever, believes that their brand can be classified in this category of consumer products they should be removed by the board and shareholders for gross incompetence.
Rolex and Hermes are Veblen goods. Veblen goods increase in desirability as price increases. This cannot and will not ever apply to B&O or any other electronics brand.
Rolex and Hermes do not experience obsolescence. A Submariner works forever. A Birkin bag can last forever.
Bang & Olufsen products do not. Electronics will always get better and people will move on to the next big thing.
B&O needs new leadership or they will end up being acquired by some horrible conglomerate and die at the hands of someone like Samsung, who have well and truly destroyed Harman.
We all love this brand. I hope the shareholders can wise up and demand change. Otherwise the company we all love will die.
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