Hi-Fi Sales affected by the Credit Crunch

[DistortedVision]

I was daydreaming about hi-fi whilst I was supposed to be reading my CFA notes last night and was wondering how the Credit Crunch has affected hi-fi and AV sales. Perhaps Clare or one of the Andys could shed some light. Perhaps there is some official sales data from BADA.

Cheers!

 

[Clare Newsome]

The latest industry figures I have to hand are from June, when hi-fi separates sales (which actually includes AV speakers and receivers, but not DVD/Blu-ray players) were down 15 percent year-on-year.

Anecdotally, I know some retailers/manufacturers are having a hard time, but then others are going great guns - depends who you talk to.

We've had some other reports through this week that consumer electronics sales are actually bucking the trend for retail decline, as people treat themselves to something entertaining - that's certainly been the case in previous times of economic downturn: you may not go on the big holiday, move house or go out as much, so you 'nest' at home.

We're certainly no less busy than we have been!

 

[Anonymous]

I'd go along with this, some appear to be going great, others are having a tough time. Then again, many of those who are having a tough time today, were having a tough time a year ago, and a year before that and so on.

While we should all spare a thought for those who pulled their companies into tight focus, only to discover it was focused on the wrong thing (those CEDIA specialists who get 95% of their business from 'selling up' to buyers of new-build homes, for example), I also know people who have been busier than ever this year.

If you were engaged in the endless cycle of buying and selling property to move up the property ladder, the drive to improve your home entertainment equipment was often secondary to putting in new carpets, and generally blinging up a place before moving it on. Now, with many people spending the next few years staying firmly put, people are less likely to 'tart a place up' and more likely to spend any spare money on entertainment systems they can get the most enjoyment out of... and that means hi-fi and home cinema equipment.

At least, that's the theory...

 

[Clare Newsome]

Hello Alan - see you at IFA next week? (Now there's a sign of optimism - 20+ Show halls crammed with the very latest in shiny, exciting new consumer electronics products, all promising more features for less money).

 

[Anonymous]

I went to my local hifi store recently having found the system I wanted via the internet for a good price. Being a supporter of local traders, I asked if they could match or even get near the price - no advice given, no alternatives suggested, just "no."

They have now put off a customer for life - a customer about to spend several hundred quid in the harshest economic conditions in years. They deserve to sink.

The place I got it from (Vickers HiFi, York) were brilliant.

 

[chebby]

Most of our well-known names in hifi survived and thrived (or were even formed) during the darkest years of the 1970s.

People have short memories. I remember the energy crisis of the early 1970s and the quadrupling of the oil prices by OPEC. I remember the 'three day weeks' and shortages in the shops of everything from coffee to suger and toilet rolls. IRA terrorism rampant on mainland UK, high double digit inflation, massive wage demands, unstable government, talk of private armies and 'coups', government plans to send in the army to seize power stations and other key 'assets' from union strikers, Grunwick etc. I remember the government going cap-in-hand to the IMF for a loan when things got really bad. The miner's strike (the 1970s one with Joe Gormley that helped to bring down Ted Heath) and even ludicrous episodes like 'Red Robbo' bringing the entire BLMC car industry out on strike when night-shift workers were disciplined for erecting hammocks on the production line to sleep in! (And about 500 other 'walk-outs' engineered by his masters to bring down the car industry.) They were some very weird times.

I think things will have to deteriorate really badly before we get anywhere near the bleak days of the 1970s.

 

[Clare Newsome]

Indeed. The main difference being that in the 1970s, consumers had far less to spend their disposable income on, so hi-fi had the home entertainment market pretty sewn up.

These days, hi-fi must compete for household funds with flatscreen TVs, games consoles, computers, AV kit, digital cameras, camcorders, mobile phones, MP3 players and a world of other gadgetry (including domestic appliances like dishwashers and microwaves) that were but twinkles in inventors eyes or stupidly priced aspirational items way back then....

 

[timwileman]

well since the start of this year i have revamped all my av kit and hifi...so no made no odds to me!

 

[Anonymous]

Alan Sircom......'Ask Alan'....HFC?

 

[Anonymous]

Clare Newsome:
Indeed. The main difference being that in the 1970s, consumers had far less to spend their disposable income on, so hi-fi had the home entertainment market pretty sewn up.

These days, hi-fi must compete for household funds with flatscreen TVs, games consoles, computers, AV kit, digital cameras, camcorders, mobile phones, MP3 players and a world of other gadgetry (including domestic appliances like dishwashers and microwaves) that were but twinkles in inventors eyes or stupidly priced aspirational items way back then....

Agreed, I don't think myself that the credit crunch makes that much of a difference when it comes to hifi, a good product that is keenly priced will always sell.

 

[Anonymous]

Sadly, no... I'll be in Blighty all week, due to the Credit Crunch (or press day). But enjoy, have a gehirnwurst and a berlinerweiáer or two for me and always remember the key phrase: "Mein Luftkissenfahrzeug ist voller Aale".
http://www.omniglot.com/soundfiles/german/hovercraft_de.mp3

 

[Clare Newsome]

EvilWolf:Alan Sircom......'Ask Alan'....HFC?

That'll be he - a fine freelance fellow!

 

[Anonymous]

If only he 'smiled'!

 

[Anonymous]

You should see my passport photo, or worse still my i-Visa for the US. Every time I go through customs, they play the Crimewatch theme...

Couldn't smile either... hi-fi journalists only have 15 teeth between the lot of us and that week it was Ketan's turn to wear 'em.

 

[Anonymous]

Hahahahahahaha.....

It's great having you here, Alan.

 

[Anonymous]

Ahem - wife and I run a PR company... runs away...

We do B2B stuff though and don't seem to upset TOO many journos...

 

[gpi]

Alan Sircom:
Sadly, no... I'll be in Blighty all week, due to the Credit Crunch (or press day). But enjoy, have a gehirnwurst and a berlinerweiáer or two for me and always remember the key phrase: "Mein Luftkissenfahrzeug ist voller Aale".
http://www.omniglot.com/soundfiles/german/hovercraft_de.mp3

'My air cushion vehicle is full...'????

 

[Thaiman]

Hi Mr. Alan "£4K" Sircom, nice to see you back in the forum

 

[Anonymous]

I'd like to know who coined the phrase 'credit crunch' as I hate it, along with 'insurgents'.

'Robust', 'mitigate the risks', 'tease out the issues', 'functionality', 'architecture', 'funding steams' and 'strategic fit' are my current work ones to hate - yuck!

 

[Anonymous]

What about "sustainable?"

At the current rate of use, the word will be worn out by the year 2015.

 

[Clare Newsome]

I detest every word becoming a verb. "Actioning" was bad enough, but the Olympics has even turned "medal" into a verb - eg "Team GB failed to medal in the BMX this morning". Grrrr

 

[Anonymous]

gpi:

'My air cushion vehicle is full...'????

...of eels, yes.

Thanks to the power of that t'internet hooked to the might of Monty Python's Flying Circus, there are several websites dedicated to translating the phrase "My hovercraft is full of eels" into almost any language. Except Hungarian, naturally.

 

[Anonymous]

Clare Newsome:I detest every word becoming a verb. "Actioning" was bad enough, but the Olympics has even turned "medal" into a verb - eg "Team GB failed to medal in the BMX this morning". Grrrr

As Shakespeare said

"To verb, or not to verb, that is the question"

That's Donny Shakespeare, of course... he's the winningest Shakespeare around.

 

[gpi]

Alan Sircom:gpi:

'My air cushion vehicle is full...'????

...of eels, yes.

Thanks to the power of that t'internet hooked to the might of Monty Python's Flying Circus, there are several websites dedicated to translating the phrase "My hovercraft is full of eels" into almost any language. Except Hungarian, naturally.

Back in April: 'THE HiFi NEW MUSIC FESTIVAL comes to the Hungarian Cultural Center.' Every nation loves their music to be reproduced well and rightly so.

 

[drummerman]

DistortedVision:
I was daydreaming about hi-fi whilst I was supposed to be reading my CFA notes last night and was wondering how the Credit Crunch has affected hi-fi and AV sales. Perhaps Clare or one of the Andys could shed some light. Perhaps there is some official sales data from BADA.

Cheers!

A world wide economic downturn, substantial rising cost of living, a stagnant job market, deflating house prices and now an official slide into a recession will of course affect retail sales in all sectors. There will be manufacturers, even ones that seem to do well at present, that have to bow to the pressure of financial difficulties and either go out of business or will be swallowed up by large overseas/far eastern consortium's and will become part of a larger group such as quad, mission etc etc.. The list is long and will grow. I have heard that a very well known and respected uk company could (will) follow suit shortly and it'll come as a surprise to many though I doubt that the reasons for it will be published. I will not name the concern, there's no gain in it, but things will get harder for many. As always, there will be an end at some stage and with an improved economic climate we'll perhaps see new small companies emerging. There's a long history of small independent manufacturers and I dont expect to see that change but the landscape will look different.