Bang & Olufsen is on a roll. It just unveiled its latest store in Hong Kong’s prestigious cultural landmark, K11 Musea, and launched a new soundbar for home cinema aficionados, the “Beosound Theatre”, with local singer-songwriter Jay Fung in attendance. “It’s been a busy year. It’s also been a very special year. Overall in Asia we grew by 12 per cent year on year. But of course if not for the lockdown in China, we could have done much better,” Arnaud De Schuytter, preside
ident of Bang & Olufsen Asia Pacific, told Inside Retail.
He explained that the brand has a big warehouse in Shanghai that was affected by the lockdown, and the overall business operations were affected as logistics and delivery services were limited due to unforeseen circumstances.
“We were very limited in what we could deliver at the time, but there was still a lot we got done. We launched several new products, even during the lockdown, with our new brand ambassador for China, Lay Zhang, it was all very digital of course,” he added.
The Asian marketplace
De Schuytter revealed that the Asian market currently represents one-third of the brand’s overall revenue, so it’s quite significant in the overall scheme of things.
“Not everyone in Asia knows about B&O, but the ones who know about us love the brand, which is actually great to hear. That’s really important to us, as they have a loyalty to the brand,” he noted.
He went on to share a recent experience at a GQ event in China, where many of the attendees came up to him and professed their affinity for the brand. But he feels there is still much work to be done to spread the word about the uniqueness of the brand.
“Brand appeal is something that we don’t have a problem with. People come up to me all the time and say ‘I love your brand’, and so on, but what we need to do is work on brand awareness so that more people learn about our brand,” he stated.
The story so far
De Schuytter has been with the company for around four years. He spent the first two years managing the brand’s American and European operations before moving to Shanghai to handle its APAC business.
“Customers here in Asia are younger. The Generation Z and Millenials are super connected digitally, and they are a much bigger share of our customer profile as compared to Europe,” he said.
Consumers in the region are extremely savvy in terms of technology, they are picky, well researched and very demanding. It is a trend that is quite different from the European market, he noted.
“They are much faster in terms of getting information on products. When we launch a new product here, they immediately know what is going on. They’re loud on social media, and it’s quite fun to see how they are enjoying our products,” he explained.
According to De Schuytter, portable speakers, earphones, headphones and bluetooth speakers are all the rage amongst the younger generation. But higher end products, such as the brand’s A9 speakers, which are for the home, are also very popular.
Craving individuality
More importantly, De Schuytter has found that markets in the APAC region crave special editions. Bang & Olufsen is laser-focused on this and is looking at its product roadmap to cater towards this growing market.
“For example, last month in August, we did a ‘love collection’ in China for Valentine’s Day on the 8th of August, and it was all over social media. It felt really nice and it worked super well for the market,” he said.
Recently, the brand collaborated with Balenciaga to create the Speaker Bag, which is crafted to resemble the iconic sculptural form of Balenciaga’s handbags.
It serves both as an eye-catching accessory and a powerful portable speaker; offering up to 18 hours of battery life and multipoint connectivity.
“The impact that campaign had on social media was amazing. We couldn’t sell those units here in China as they were reserved in very limited quantities for haute couture customers of Balenciaga at the time. But the coverage and reaction in China was amazing,” he said.
Audience targeting
Under his guidance, Bang & Olufsen is focused on increasing its brand awareness and top of mind brand recall among Generation Z and Millennials. From launching new products, up to marketing activities and distribution strategies, the brand is making it a top priority to get into the minds of these consumers.
“Gen Z and Millennials are a group of consumers who we love; it’s full of potential, and I believe that the B&O brand awareness is still very small in this group,” he said.
To that end, he revealed that the brand is focused on creating the right distribution networks and optimising its e-commerce strategy.
“To experience our products, you need to listen to it. So you can’t do e-commerce 100 per cent, you need stores for that. But our younger clientele like this brand from Denmark, the design, the sound and its authenticity,” he said.
Physical stores are key
For Bang & Olufsen, the physical store experience is absolutely central to the success of the business.
“In Asia, we are behind in terms of coverage, when it comes to physical stores. In Europe, we have [approximately] 350 stores, while in Asia, we have 75. We are behind, but we are working on it. We are working on making the retail concept more about product experience,” De Schuytter said.
Listening rooms in stores are now becoming a top priority. On-site care and maintenance services are also becoming more prevalent.
“For example, if you buy a B&O product, and do not download the official app, you will not get the full power of your product. So we need to educate our customers, help them repair the products, and maintain them so that these offerings truly last,” he noted.
De Schuytter pointed to the fact that he had just connected a 1972 turntable from Bang & Olufsen to the latest speakers in his office.
“Even I get super emotional when you can bring the best of the past with the present,” he said. “We make high standards, and we make great designs. But I would say our designs are timeless, and that it also appeals to the younger generation.”
His dream is to enable more people to touch, feel and hear the product. If he can get at least 500 people a week visiting the brand’s stores, that would be a job well done.
Timeless Innovation
For the uninitiated, the brand began in 1925 when, working out of a Danish farmhouse, Peter Bang and Svend Olufsen reinvented the radio. Their first product was The Eliminator, the first mass-produced radio that could be plugged into the wall without the need for a battery.
With the brand looking forward to celebrating its 100th anniversary in three years’ time, it is focused on protecting its legacy and ensuring that it continues to live on.
“We are, I think, very grateful and loyal to this legacy. Our job is to protect it and we are celebrating 97 years next month, and our job is to make sure the next 97 years are as good as ever,” De Schuytter said.