Naim merges with Focal

[Clare Newsome]

in case you missed it, here's today's hi-fi industry news - overview here, with full Q&A here.

Very strong quote from the newly formed co-company: "For future success, the key point is that there is no future for a speaker or electronic company alone"....

 

[plastic penguin]

Although they say they are keeping each companies identity in terms of sound, looks and badging, it would be interesting to know whether each of the companies are prepared to promote the each others when it comes to system building? If so, what influence that'll have on their individual sound.

We know that Marantz and Mordaunt Short have a similar arrangement, likewise Rotel and B&W... some combos work a treat, while others don't neccesarily click.

 

[Clare Newsome]

We know that Marantz and Mordaunt Short have a similar arrangement,

Not any more they don't - Marantz now paired with sibling speaker company Boston. Clickety

 

[MUSICRAFT]

An interesting development

Thanks

Rick @ Musicraft

 

[plastic penguin]

That's interesting. So it's definitely not an April Fools prank?

Nevertheless, would be worthwhile to know this. From a strictly business angle, I can see the logic behind Naim and Focal merger; at some point down the line they will need to address the fact that not many (at this stage) recommends Focal speakers with Naims.

 

[Andrew Everard]

That's interesting. So it's definitely not an April Fools prank?

No, It's August.

Nevertheless, would be worthwhile to know this. From a strictly business angle, I can see the logic behind Naim and Focal merger; at some point down the line they will need to address the fact that not many (at this stage) recommends Focal speakers with Naims.

Why, if the two companies are to be run entirely independently?

Anyway, all this is addressed in the Q&A.

 

[BenLaw]

Thanks for the Q&A Clare. Not entirely sure I get it. Possible advantages: economies of scale? But they're making a big thing of keeping the businesses separate in every way possible. Better, harmonised distribution? Seems to be the best reason, but they still say retailers can / will remain as they are. Shared R & D? To an extent, but again this is being kept separate. Focal moving into electronics? Possibly, except they say they're just about to release a couple of products, which presumably Naim had no input with.

Any ideas?

 

[staggerlee]

i think its good news - Let's face it Naim speakers are rubbish and focal make very good ones

 

[staggerlee]

Actually a few dealers i know have been recommending focal Be speakers for some time now -

 

[plastic penguin]

That's interesting. So it's definitely not an April Fools prank?

No, It's August.

Nevertheless, would be worthwhile to know this. From a strictly business angle, I can see the logic behind Naim and Focal merger; at some point down the line they will need to address the fact that not many (at this stage) recommends Focal speakers with Naims.

Why, if the two companies are to be run entirely independently?

Anyway, all this is addressed in the Q&A.

Doesn't matter if the two are run independently: If they have a vested interest and merge, albeit on a R&D basis, if someone phones Naim and asks for a recommendation for a large standmounter, can't really see them pointing in any direction other than Focal.

Many moons ago, when I worked in the stationary business, the company I worked for merged with Chapman envelopes. They were separate companies, Chapmans having the lion share of that particular market...

If we were out of stock of our top of the range envelope we were told by the management to sell Chapman's equivilent. And vice versa. We were acting as independent agents though.

Do Focal make amplifiers?

 

[Clare Newsome]

Thanks for the Q&A Clare. Not entirely sure I get it. Possible advantages: economies of scale? But they're making a big thing of keeping the businesses separate in every way possible. Better, harmonised distribution? Seems to be the best reason, but they still say retailers can / will remain as they are. Shared R & D? To an extent, but again this is being kept separate. Focal moving into electronics? Possibly, except they say they're just about to release a couple of products, which presumably Naim had no input with.

Any ideas?

From further discussions, the R&D aspect seems key. Rather than both companies exploring new-tech areas separately, they can work jointly.

And yes, i'm sure It will also translate into economies of scale for raw materials, components etc: they'll get a better price buying as a joint force.

Plus it seems - as the Q&A hints at - the distribution/retail/event-collaboration elements will be key in the future.

Then there are all the little logistical details that could have benefit - eg access to marketing databases; Focal able to promote Naim Label/downloads etc etc

 

[noogle]

Whatever the Q&A says it would seem bonkers for Naim to develop a new speaker range beyond Ovator.

 

[Clare Newsome]

Whatever the Q&A says it would seem bonkers for Naim to develop a new speaker range beyond Ovator.

Time will tell....

Meanwhile, it's worth remembering that -for example - Denon and Marantz are part of the same company, yet both produce (competing) Blu-ray players, AV receivers and hi-fi systems.

 

[noogle]

Also will be interesting to see if Focal get access to the NXT BMR technology used in the Ovators.

 

[matthewpiano]

Consolidation is the way of the world now and will continue to be so. It has already happened massively in the car industry and has been largely very successful - VW Group as an example of how to take-over other brands and make them work successfully whilst combining resources and Renault-Nissan Alliance as an example of how a merger between two brands can bring together the difference strenghts of each (Nissan using Renault's diesel engines and Renault learning more about efficiency and reliability from Nissan, for example).

We've also seen it happen in the hi-fi retail sector - Practical Hi-Fi, Audio Excellence, Audio T, and Sevenoaks Sound & Vision have now merged (through two seperate mergers) into the one brand.

The point with Naim and Focal is that both make very high quality products. Whether we'll start to see lots of Naim/Focal systems being recommended only time will tell, but if the merger can open new marketing avenues for the two brands and enable them to share costs in at least some of their R&D activity it can only benefit both brands.

 

[Anonymous]

Altho I haven't heard the combination, I can't imagine these two having synergy together - I'd suspect they would be any exciting listen but on the edgy/bright/agressive side - anyone familiar with this? Admittedly I don't have a high opinion of Naim (too dry & flat - prat over musicality). But then B&W were co-marketed with Classe and they weren't the best combination when I tried them (I wonder if Abbey Road studio tried any other combinations)

 

[CnoEvil]

Thanks for the Q&A Clare. Not entirely sure I get it. Possible advantages: economies of scale? But they're making a big thing of keeping the businesses separate in every way possible. Better, harmonised distribution? Seems to be the best reason, but they still say retailers can / will remain as they are. Shared R & D? To an extent, but again this is being kept separate. Focal moving into electronics? Possibly, except they say they're just about to release a couple of products, which presumably Naim had no input with.

Any ideas?

This is a good point, as the major synergistic benefits usually arise when everything is combined, saving any duplication of costs.

If they keep their seperate R&D depts, the only gain will be where the Companys' technologies overlap (not sure how big this will be). Of course, joining forces may make money easier to borrow!

 

[tyranniux42]

i think its good news - Let's face it Naim speakers are rubbish and focal make very good ones

you may be entitled to your opinion but I must insist it is not shared by all!

 

[amcluesent]

This seems about access to venture capital from CM-CIC as much as producttechnology.