Startup AudioXperts: Luxury Market Underserved In Audio
By Joseph Palenchar On Aug 8 2012 - 3:56pm
New York - Startup luxury brand AudioXperts revealed more
details about its positioning and marketing strategy yesterday at a press
conference where founder Eli Harary called the luxury market for home audio products
Harary, a 40-year audio-industry veteran, described the
selection of home audio products for luxury consumers as "very limited," and said
most of the available products "pay little to no attention to design or simplicity
He also said sales of luxury-brand products in general are
"still skyrocketing" despite the slow-growth economy.
During the event, AudioXperts demonstrated its tabletop
docking music systems and two 4TV under-TV audio "consoles
." The latter are
slim audio platforms that sit on top of furniture and under a flat-screen TV. The
products will be joined at the CEDIA Expo by the Korners series of
"room/designer-friendly" high-performance component speakers and powered
With these products, the brand is not targeting a specific
age demographic or audiophiles but is targeting design-oriented homeowners who want
products that fit with their lifestyles, desire products from luxury brands,
and enjoy quality sound and entertainment, he continued.
Luxury buyers, he noted, have changed over the years. "They
are more sophisticated about not wanting something complex," he said, and they
expect the products to deliver performance and style.
To that end, Harary said, the company is using "the finest
materials" and "latest technologies" and packaging them in "sophisticated,
flexible, and intuitive designs" that "ensure an extraordinary user experience";
eliminate the "confusion, chaos and clutter" of component-audio systems; and in
the case of the 4TV audio consoles, deliver component-audio quality.
Because these consumers "appreciate the luxury-brand
experience," including the buying experience, AudioXperts has to date signed up
six of what Harary called "the finest CE retailers" to date, including Bjorn's
of Texas, ListenUp of Denver, Worldwide Stereo in Pennsylvania, and Crutchfield,
which are all members of the Progressive Retailers Organization (PRO Group). More
retailers will be announced after the CEDIA Expo, where the company plans to
unveil its series of "room/designer-friendly" high-performance component
speakers and powered subwoofers. Korners
The company has shown the products only to seven dealers so
far, and six of them signed up, Harary noted. More dealers will be signed up as
production ramps up.
Retailers selected by AudioXperts are capable of presenting
better products through salespeople who can explain the benefits of such
products as $1,999 and $3,999 audio consoles, he said.
In their online stores, such retailers are also capable of
presenting better products, in part through interactive communication via live
phone calls or online chats.
In the U.S., only about 70 retailers with 110 to 120 outlets
have the capability to educate consumers about luxury products, Harary noted.
The company has also signed up European distributors to target such retailers.
Although AudioXperts will sell its products through its own
website, the company will support its dealers by handing over the profits of a
sale made to a consumer in the dealer's market, Harary said.
The company isn't setting unilateral retail prices because
it doesn't need to if it chooses the right dealers, Harary noted.