We know B&O has been doing things for the very rich lately(VHNWI), and this was clearly claimed in their financial statements.
But now, looking at some instagram pictures, it seems that they are going out of the enormous houses and want to target a « poorer » audience. Look at the attached picture : ok, as usual, there don’t seem to be any cable connected… but everything is wrong ! The Premiere is blocking the view of a part of the TV screen, the room looks tiny, the furniture looks cheap… What do you think ?
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Is B&O abandoning its VHNW strategy ?
8 replies
I don't think B&O has abandoned the VHNWI strategy. The VHNWI abandoned them or never bit into the strategy in the first place.
- Its easy (read: lazy) just to say you will target them (VHNWI) with the same average-quality gear (average meaning, plastic, PCBs, a bit of pressed coloured aluminium)
- You cant just tell the world you are "luxury" and want to be associated with the buying set of Hermes, LV, Patek, Ferrari, Aston. It takes multiple decades, not a couple of years.
- Speaking of which, all these "Fashion/Luxury" houses are struggling to maintain "growth" (oxymoron - how do you "grow" if you keep making the same stuff and sell to the same people?)
- B&O could not induce a Faux-Scarcity of product (Rolex, Hermes, Ferrari etc..) if Sonos or Bose suddenly got warped into a black-hole at the centre of the galaxy.
- Your products are consumer electronics. in 10 years time, nothing will work, may be an obsolete format? It may be repairable but for what? Remember Vertu mobile phones?
- The VHNWIs don't buy rooms/multiple rooms full of BL90s or even rooms full of the smaller beosounds. They don't even fill every room with B&O like many here do.
- VHNWIs are probably more inclined to have a single piece - maybe flexible living, maybe in a cupboard and brought out when the rare chance is it is needed.
- VHNWIs will probably keep the house lay-out/decor in the same way/condition as their Interior Designer Consultant educated them on. "Show home at all times, not junk on display"
- VHNWIs don't come home from work at 6pm, pop-on a microwave pizza and slurp the remnants of last-nights half-bottle of Cava and watch Coronation Street or East Enders and endless TV junk.
I think they've learned the hard lesson VHNW and UHNW people don't have a great deal of loyalty. If they can afford whatever they want, they'll buy whatever other people lust after at the time.
You see so many of these people part exchanging their Ferrari for the latest McLaren, then dumping the McLaren when the latest Lamborghini comes out. Then Lamborghini upset him and he goes to Aston Martin, doesn't like it and goes back to Ferrari.. and so on.
Also, they're not rich because they're stupid. They question "value" - and if it doesn't lay in the amazing brand image any more (sorry B&O) of the general population it then truly needs to be 'worth it' from a product perspective. If not, they'll defect.
Maybe I'm totally wrong, but I don't feel I am.
I think you can add the arrogance to the mix with a lot of these luxury brand ADs. Ferrari, Porsche, Hermes, Rolex...creating faux scarcity, and imaginary "wait-lists" along with "if you buy these 3 pieces of dog-turd which we cant sell....but you can [for us]...we will move you up the list" thing).....people can spot when they are being taken for mugs and disengage. I'm sure B&O would love a faux-scarcity problem....but for now, they can get the disengagement just by out-pricing the market that would traditionally buy their products.
Given that one of the latest 'Reloved' products is a Beogram 2000 for £2000, I'd say B&O still have a fairly healthy VHNW strategy.
And if anyone wants to buy mine for a discounted rate of £1450, drop me a line!
No - it's one I bought off eBay for £21!
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