This ia a great update. Living in Germany I have been exposed to the European culture of hi-fi. Compared to the economic news in the states, Germany does not seem so affected by the downturn as it was in the USA. I know companies like Opel, a subsidary of GM was scared for a while due to the decline in automobile sales and the GM bailouts. Today, Opel is getting a cash infusion from GM to stay alive. What does this have to do with hi-fi? Well, for one, the perception of a bad economy is not as bad here in Germany, therefore, people are cautious, but not because they do not have money, because they do, but because they want to be sure that whatver they invest money into, it will be value added for years to come.
Many hi-fi vendors I have visited I spoke freely about the downturn in the global economy and the answer was always the same. Business was a little down, enough to survive, but that was it. The same vendors I spoke with were telling me that many European manufacturers were looking at new business models, to include regional home based sellers, ala, USA style to gain markets, albeit, smaller in many regions, versus one or two large stores with their products. The overall impact would be more availability of products, plus each home seller must buy products, adding more to the coffers of the manufacture, despite at costs deals. Times like these are making manufacturers rethink business models and thus the price range of products is becoming more variable to a lower price range versus one mainstream upscale product. I know I have heard of many manufacturers wanting to go global. Octave, the manufacture of tube amps and pre's was well known here in Europe but not in the USA. I spoke with the owner several years ago about the US market and he said he was going to try. Today, Dynaudio is a distributor of Octave. There are many more companies going global and not just to the US, but to India, China, afterall, it is a global market. We as consumers are benefitting. Some vendors are selling products at reduced rates, the option to try at home before you buy is again becoming a store business model, heck, I tried Silent Wire AC32 and Reference power cables along with a Velodyne DD15 a few weeks ago because the vendor allowed me to try it at home. I have personally taken advantage of the more price aware vendors and have haggled somewhat to get a lower price than advertised. I bouhgt my second SME V and Benz LPS was bought this way.
I guess, like any other business model, change must come to adapt to the current consumer demographics. Unless there is a drastic evolutionary change in how we listen to music and watch movies using; speakers, Ipods, record players, reel to reel, cables, racks, CD players, receivers, amps and preamps and and anything to do with source sound and the playback of that sound, there will be a market, regardless of age of the consumer. The demand for certain products will be higher based on the utility of such device for the consumer. If a teenager today feels like records and Ipods are part of their way of life and how they should hear music, then we should welcome that.
Older source components, ala, analog, should not be disgarded as an outdated business model either. Why shut out a potential market to concentrate on a modern technology that is moving so fast that sometimes it outdated in a matter of months versus the virility of the older technology. A vendor should have a good blend of new and old technology, to portray the merits and benefits of each, not to lambast one or the other. Each one of us have our own preconceptions or experiences dealing with audio dealers. My own experiences over the years have led me to believe that there are many dealers who do care about customers, but the business model is outdated.
It is going to take time to make changes for the better and the perceived better business efforts will be realized by the consumer someday, but along with that, the economic news should also indicate the perception to the consumer that all is getting better, where the consumer feels better about spending money for musical enjoyment. That is a part that all stakeholders have to deal with; dealers, vendors, and manufacturers and consumers alike.
Thanks for the update.
Ciao,
Audioquest4life
Many hi-fi vendors I have visited I spoke freely about the downturn in the global economy and the answer was always the same. Business was a little down, enough to survive, but that was it. The same vendors I spoke with were telling me that many European manufacturers were looking at new business models, to include regional home based sellers, ala, USA style to gain markets, albeit, smaller in many regions, versus one or two large stores with their products. The overall impact would be more availability of products, plus each home seller must buy products, adding more to the coffers of the manufacture, despite at costs deals. Times like these are making manufacturers rethink business models and thus the price range of products is becoming more variable to a lower price range versus one mainstream upscale product. I know I have heard of many manufacturers wanting to go global. Octave, the manufacture of tube amps and pre's was well known here in Europe but not in the USA. I spoke with the owner several years ago about the US market and he said he was going to try. Today, Dynaudio is a distributor of Octave. There are many more companies going global and not just to the US, but to India, China, afterall, it is a global market. We as consumers are benefitting. Some vendors are selling products at reduced rates, the option to try at home before you buy is again becoming a store business model, heck, I tried Silent Wire AC32 and Reference power cables along with a Velodyne DD15 a few weeks ago because the vendor allowed me to try it at home. I have personally taken advantage of the more price aware vendors and have haggled somewhat to get a lower price than advertised. I bouhgt my second SME V and Benz LPS was bought this way.
I guess, like any other business model, change must come to adapt to the current consumer demographics. Unless there is a drastic evolutionary change in how we listen to music and watch movies using; speakers, Ipods, record players, reel to reel, cables, racks, CD players, receivers, amps and preamps and and anything to do with source sound and the playback of that sound, there will be a market, regardless of age of the consumer. The demand for certain products will be higher based on the utility of such device for the consumer. If a teenager today feels like records and Ipods are part of their way of life and how they should hear music, then we should welcome that.
Older source components, ala, analog, should not be disgarded as an outdated business model either. Why shut out a potential market to concentrate on a modern technology that is moving so fast that sometimes it outdated in a matter of months versus the virility of the older technology. A vendor should have a good blend of new and old technology, to portray the merits and benefits of each, not to lambast one or the other. Each one of us have our own preconceptions or experiences dealing with audio dealers. My own experiences over the years have led me to believe that there are many dealers who do care about customers, but the business model is outdated.
It is going to take time to make changes for the better and the perceived better business efforts will be realized by the consumer someday, but along with that, the economic news should also indicate the perception to the consumer that all is getting better, where the consumer feels better about spending money for musical enjoyment. That is a part that all stakeholders have to deal with; dealers, vendors, and manufacturers and consumers alike.
Thanks for the update.
Ciao,
Audioquest4life