Excessive-end Danish speaker and tv maker Bang & Olufsen is assured it might probably defy a slowdown within the luxurious items sector partly as a result of “the wealthy will solely turn into richer”.
The model, which counts musicians Alicia Keys and Lenny Kravitz amongst its prospects, is in search of to turn into a significant luxurious participant regardless of lacklustre gross sales amongst premium items teams. A 3-year growth in luxurious demand has come to an end in latest months as prospects minimize spending on costly gadgets.
Chief government Kristian Teär mentioned the truth that the retailer, whose Beolab 90 audio system value £110,000, had no significant competitors within the premium house was a bonus that “will make us extra resilient in downturns”, though he recognised he needed to improve consciousness of the model.
“Should you go to jewelry, you will have a couple of manufacturers, when you go to style, you will have a couple of manufacturers, when you go to vehicles, you will have a couple of manufacturers,” he mentioned throughout an interview on the new Bang & Olufsen retailer in London this week. “In audio luxurious, there may be no one else.”
He’s on a drive to recruit Era Z and millennial buyers with a penchant for design and know-how who more and more stream music in addition to rich people who “don’t wish to have one thing ugly” of their houses and “have sufficient funds”. Bang & Olufsen sells its merchandise in 400 places, together with its personal shops and concessions in different retailers.
“The wealthy will solely turn into richer, and . . . we all know they wish to additionally specific themselves, they usually don’t wish to have what all people else has,” he mentioned.
“The explanation why we aren’t greater than we’re is as a result of we’ve tried to be all over the place for everyone on a regular basis, and we had been struggling. Now the course is ready, the main target is evident, we all know what we’re doing, and that’s additionally why we present good development in London as a result of we attempt to serve the shoppers who we’re concentrating on.”
The corporate was based in 1925 and it developed one of many first mass-produced radios that may very well be plugged into the wall, with out the necessity for a battery.
It had a bumpy experience throughout the pandemic when gross sales collapsed because the world shut down and provide chains had been derailed, however recovered as folks splashed the money on devices. Nevertheless, it recorded income of DKr2.75bn ($400mn) for the 12 months to Might, a decline of seven per cent in contrast with the earlier 12 months.