Bang & Olufsen stresses cultural impact

By Lee Min-hyung

Marie Kristine Schmidt, vice president of Bang & Olufsen’s (B&O) brand, design and marketing division, speaks on the sidelines of the Consumer Electronics Show (CES) in Las Vegas earlier this month. / Korea Times photo by Lee Min-hyung

LAS VEGAS ― Understanding cultural differences is a crucial factor when it comes to operating a global business.

Bang & Olufsen (B&O) is no exception with its culture-oriented global expansion strategy. The Danish audio products maker hopes to spread awareness of its premium devices for Korean customers with its Korea-only marketing tactics.

“We in Europe have a culture of inviting people to our homes, but homes are regarded as more private in Korea,” Marie Kristine Schmidt, vice president of the company’s brand, design and marketing division, said earlier this month, on the sidelines of the Consumer Electronics Show (CES) 2016 in Las Vegas.

Against that backdrop, the company has introduced what it calls the “home demonstration” marketing tactic for Korean customers, allowing them to experience the company’s products before buying them. The company does not just provide the demo products, it offers interior consultation services for each customer.

The strategy was adopted to meet Korean customers’ growing appetite to decorate their private space with luxury products, the company said.

“We are seeing our business growing in the Korean market, and plan to roll out more stores in coming years with the localized policy,” she said. “Korean people appreciate luxury products with good quality and good sound.”

B&O has seven stores here, all of which ranked in the top 50 stores globally in annual sales. In particular, its flagship store in Apgujeong, southern Seoul, has been one of the top-five stores worldwide for the past three years.

Schmidt attributed this to the company’s localized marketing strategy based on keen insight into cultural characteristics.

The high-end consumer electronics maker is also seeking to diversify its revenue streams by opening more stores decorated with more luxurious interiors and elements for entertainment.

Last year, the Apgujeong store revamped its interior by combining features representing luxury and entertainment. The company said more shops across the nation will adopt this strategy.

As for entertainment, the company plans to expand its retail channels for its sub-brand, B&O Play. The company is selling these products at major discount chains including Hi Mart and E-Mart.

BeoSound 35

B&O unveiled its new all-in-one music player BeoSound 35 during the press session at CES.

The pentagonal audio system allows users to access radio or music wirelessly through the BeoMusic application or the B&O remote controller.

“The product was designed to fill the room with music,” Schmidt said. “It is about having a 180-degree sound spread. By using the pentagon shape, we can actually mount the product on a wall or on a table.”

BeoSound 35 has an organic light-emitting diode (OLED) display with a touch interface. The device also features Apple AirPlay, Bluetooth 4.0 streaming services and BeoLink Multiroom technology to enable B&O Play Multiroom products to be played seamlessly in a user’s home, according to B&O.

The company has been aggressive in releasing high-end audio products under the motto of “Sound is half the picture.” Last month, Bang & Olufsen CEO Tue Mantoni visited Korea to promote its largest digital speaker, BeoLab 90, which uses 18 individually powered loudspeaker drivers.