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Bang and Olufsen Dubai in the middle of crisis

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This post has 12 Replies | 3 Followers

zerocool143
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zerocool143 Posted: Tue, Nov 8 2016 8:59 AM

This past few months the shop has been not selling quite well even though there are new products released over the past months. Now a days many are buying B&O products through online shops for much cheaper price than the once in the stores. So this scenario is quite affecting the sale of the shop. Since our company is the exclusive dealer of B&O products in UAE for about more than 30 years, and we have found out some company secretly selling beoplay products to some of our tie up companies, we decided to file a case regarding this matter both in UAE court and in Denmark Court few months back. And then little by little B&O Denmark is shutting us down. First they are not responding to our inquiries, next they stop supplying us materials, another is the disable us from ordering in the retail and lastly, today they disable our account in the retail system. This kind of actions are hurting the company's business. I was just wondering, why in a sudden they did this kind of actions, well in fact our company has the average sale every year and we are complying to the minimal purchase required by B&O. While few years back when B&O has not selling well here and really not much sale those time, they did not decide to shut us. Something behind the scenario is happening. It very sad many B&O shops are closing maybe soon our shop will be one of them.

9 LEE
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9 LEE replied on Tue, Nov 8 2016 9:04 AM

Are you the operator of the store in the Dubai Mall?

zerocool143
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Yes our company handles the showroom in Dubai Mall

Aussie Michael
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Interestingly i went to the shop in the Dubai mall and i was ignored. 

I am sorry to hear of your treatment though, and if i was in the situation of being an exclusive dealer for 30 years and then the company pulls the rug out from under you, i would also be frustrated.

Wishing you all the best in finding a solution to this issue.

 

zerocool143
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Sorry if you were ignored by that time. We have limited manpower but still managing to continue the business. I have a feeling that some other company will continue the B&O here. It might be a bigger company than us.

9 LEE
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9 LEE replied on Tue, Nov 8 2016 10:21 AM

I asked the question because I was in that store three weeks ago, and was also ignored.  It's actually quite hard to ignore someone in that store as it's so small, but fair play - two people managed it, together.

It also had a BeoSound 9000, BeoSound 5, BeoLab 4000 and a few other discontinued products all on full display.  I assumed then that no area/region manager had seen the store in a long time as only current products should be on display....

Still, that said : I don't wish anyone with the B&O name above the door badly.  I have no idea how you've got to where you are with B&O, or why, but I hope you can resolve it.

Lee

 

Chris Townsend
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I was in there 3 years ago, and was also ignored. For a country with so much wealth, I couldn't help feeling the shop was an almost afterthought hidden away. It's easy for me to say, but to attract the grand money from those grand millionaires, you need a grand shop for them to enter.

Hope it works out for youYes - thumbs up

Beosound Stage, Beovision 8-40, Beolit 20, Beosound Explore.

StUrrock
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StUrrock replied on Tue, Nov 8 2016 12:51 PM

Chris Townsend:

 

I was in there 3 years ago, and was also ignored. For a country with so much wealth, I couldn't help feeling the shop was an almost afterthought hidden away. It's easy for me to say, but to attract the grand money from those grand millionaires, you need a grand shop for them to enter.

 

 

Hope it works out for you Beovision 7-55 Mk2, Avant RF 28, Beolab 9, Beolit 15, Beoplay A1/A2, Beocom 2, Beotime, H3 ANC/H8/H6/H2, Form 2, Beoplay A3, Beovision 5-42 connected to a DVD1

 

 

 

It is obvious to me that the current shop business model does not work well for B&O or the shop owners.

 

 

It must change and B&O know that. There are still way too many shops with high overheads.

 

 

The shops with their restrictive agreements are not competitive or nimble enough to compete with other B&O vendors.

 

 

Lee included.

 

 

It's simple for B&O to thrive more solus shops will have to go.

9 LEE
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9 LEE replied on Tue, Nov 8 2016 1:15 PM

Chris Townsend:
It's easy for me to say, but to attract the grand money from those grand millionaires, you need a grand shop for them to enter.

I have to agree on that.  It's a big dice-roll, and not one I'd be prepared to take at the moment as I din't think the brand image is strong enough.

I do love Dubai (I've been 3 times in 3 years on holiday) - but I can't help but feel it's a little soulless when it comes to the modern retail environments.  It just looks like the big brands feel they have to be seen to be there, because if they don't they'll look stupid to their rivals.

The B&O shop in the Dubai Mall feels like just that. It's a token gesture as opposed to a statement - but I'm not sure even a statement would make a huge difference.  Catch 22.

As for businesses like LifeStyle AV being 'nimble' - we're only as nimble as the main dealers. Without new products selling, there'll be no used ones. No used ones, we're finished!

I'm the most "pro-dealer" person I know..  I support every single one of them, and want them all to sell B&O by the lorry-load, because in the end it'll be me who benefits too at the 'back end' when it all comes back in part exchange.  I've tried with B&O UK to build a professional, slick system to help dealers sell more products and benefit from selling used as well as new - but they chose to drop me in favour of one of their own dealers doing it.  A decision I respected, and still do - but if you want someone to do used B&O properly, it kind of makes sense to go with someone who does it full-time, and has done for 11 years, and has (I hope) a decent reputation, worldwide.

Still, not my issue - we're doing okay. I just want B&O as a company to do well - and I'd be happy to do anything to help!!

Lee

 

Duels
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Duels replied on Tue, Nov 8 2016 3:32 PM
Nicely put Lee.
Jeff
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Jeff replied on Tue, Nov 8 2016 8:03 PM

Well Lee, I just wish there was a clone of you on this side of the pond! I could really use a second life dealer as good as yours, but then I'd probably be divorced. Surprise

Jeff

I'm afraid I'm recovering from the BeoVirus. Sad

StUrrock
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StUrrock replied on Thu, Nov 10 2016 5:30 PM

9 LEE:
As for businesses like LifeStyle AV being 'nimble' - we're only as nimble as the main dealers. Without new products selling, there'll be no used ones. No used ones, we're finished!

Lee as an independent dealer you are very nimble as you have no Corporation breathing down your neck! Checking your every move :)

9 LEE
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9 LEE replied on Thu, Nov 10 2016 7:14 PM

Creepy picture... looks like a dead ballerina hanging from a not-so-nimble balloon advertising 1970's bread.

As for corporations breathing down my neck, no.  However, I still worry!  I want the best for B&O because I'm a fan - and my living depends on the company doing well.

I'm very much an outsider looking in as far as B&O UK are concerned though, which is fair enough - they owe me nothing. It's the dealers they are honour-bound to look after....  and it'd be lovely if they did.  They all have their hands tied at UK HQ though, no money to spare, no freedom to experiment with new ideas - and to be honest I feel sorry for them.  It's like saying 'go stop that tank'.................. 'right - here's your stick'....

Lee

 

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