Mobile Electronic News

M.E.N gets an insight into what some in the industry thought of the last year and what they believe the future holds.

It’s not a scientific piece of research, but with 2010 around the corner M.E.N decided it would speak to figures in the industry to find out what they made of 2009 and what they think 2010 will have in store. Despite such tough times over the last twelve to eighteen months hopefully there are some reasons for optimism in the coming year.

MATTHEW SAILES – SAILES MARKETING

NEGATIVES: Our views on the past 12-months of business is that although there has been an obvious downturn in the aftermarket sector due to the significant decrease in the number of new car sales, we haven’t seen this as an altogether negative situation.

POSTIVES: As the business has continued to develop over the last 30 years, we know that to succeed in this tough economic climate you need to focus even harder on providing a quality product at a competitive price backed up by a first class service. This is what we’ve been concentrating on in the last 12 months and we have now started to see the first signs of the market returning to previous levels.

2010?: Who really knows which way things will go, but we are confident that business will continue to recover and the companies that provide the right service will continue to succeed and those that don’t will without doubt fail.

CHRIS BENNETT - CELSUS

NEGATIVES: Everyone talking about negatives in 2009!

POSTIVES: BBG and Celsus coming together.

2010?: Our Miami dealer incentive in March is something personal for 2010 that is a positive. But as an industry it’s like a forest that had became overgrown but just like a forest it’s been burnt by a bush fire and let the light back in. Now the seeds of success are sown, and all we’ve got to do together now is water them.

BRIAN PARTON - FOUR

NEGATIVES: One of the things that stands out is people stopping doing anything. People cutting marketing budget is something that shouldn’t be happening.

POSTIVES: In business terms, none. However we launched the first ever car hi-fi dedicated publication featuring real people; Driving Sounds. You cannot grow if you are not communicating with customers.

2010?: We’re extremely positive. We will come out of this recession and we’re confident that we have put in place for our customers and ourselves things that will actually make us stronger. Since I started in this business in 1986, one thing has never changed and this is that people still like listening to music. There are 30 million cars in the UK so even if as an industry we can convert 1 percent then you can see the potential.

TONY GREEN -  CEL TRADE

NEGATIVES: The recession is a massive negative and the way this government, and governments before this, have been running the country. In the end our children are going to have to deal with this and it’s a major issue.

POSITIVES: Double DIN continued to grow in 2009, although that hasn’t offset the decline of single DIN. For us, a lot of specialist installers have lost their direct accounts which has helped us pick up the business of the bits and pieces they still need.

2010?: This is when we’re going to reap the true harvest of the seeds we sowed in the 2000 era… massive unemployment and realistically a massive downturn in the standard of living. How many specialist installers will go bust in 2010 or look to use their skills elsewhere too? I think there’s further demise in our industry yet.

STEVE DIGVA – IN PHASE INTERNATIONAL LTD

NEGATIVES: 2009 represented one of the most challenging in commercial business for our industry. We had all the problems of the world in addition to price increases, limited stock availability, and a shrinking market! I feel our biggest loss was good retailers that decided to close down making our specialist industry ever weaker. This is our real weakness here, what makes us specialist?
In my business many of my dealers ask me questions to answers they should know! Why is this? Simple lack of support from manufacturers.... not all, some are very proactive and have helped and supported us where others are the direct opposite.
The only way we can combat this is we need to create a united front in the form of an established retail network that will allow manufacturers to sell guaranteed volumes, and offer us the dealers the advertising and training support we all need! Remember price is not everything!

POSITIVES: Positives for 2009 are few, the first big one is that the high street market leader is not so keen as before so allowing us to reclaim some of our market back. Lack of interest on ecommerce we have many dealers informing us that they had in some cases increased face to face sales, this of course has been at the expense of other retailers closing down. Stabilty to the market, I touched on that price increases had not helped but in fairness why are we selling MP3 at £50.00! I remember when cd tuners cost me £800.00+ vat! Average price has now increased, although we cannot take credit for this it was well overdue! This momentum in my opinion needs to continue as we see our volume market shrink we need to see the value remain higher! So lets all try to achieve this bring back the days of entry level £129.99 I would also add that the extra margin the government gave us of 2.5% will soon be gone, can we all increase our prices? He who dares wins!

2010?: I do not wish to be the bearing of bad news but I feel this period in our life will be more challenging than the last. I would suggest that more dealers need to unite, we must take action and educate our customers to the benefit of good speakers in cars, amplification, not forgetting the accessories we should all sell like power caps, distribution blocks etc. I feel as an industry we have lost our passion, our love for what we did. Think, why did you sell car audio? How many of you have a good demo car? What about your staff?? I suggest that it is a must! You all must have good demo cars, show every customer what a good system sounds like, spend time to explain why one product in your opinion is better, not that it just is! Like most things little changes help, I often give advice to my dealers of which most tell me they have improved sales and profitability. This is free! I am here to help as your survival means mine so I am helping myself..... I hope to help dealers improve 2010 and look forward to the challenges it brings,

EMMA WARD – MIDBASS

NEGATIVES: The biggest threat for the entire industry during 2009 was the economic crisis. The perception of the recession by the worlds press had an impact upon consumer spending, forcing dealers to close and competitors to fall, however the aggressive marketing and prominence of the MidBass brands only strengthened the sales of the company, allowing significant growth in these hard times.

POSITIVES: 2009 has seen MidBass Distribution go from strength-to-strength. The reason for continual growth and success mid-recession? Well, this has come from many aspects. The first being the launch of the brand new range, EDGE which has exceeded all expectations, establishing itself quickly as a leading entry level audio brand. MidBass also emphasised upon their dealer support network, with additions to the UK team allowing additional dealer support via dedicated account managers, sales reps and innovative superstore schemes. Even during the global recession, the MidBass team have remained at the forefront, supplying outstanding quality audio products across all of their ranges.  Continual marketing campaigns here in the UK and globally, which include web, print and shows have cemented their position. MidBass’ newest venture into Home Cinema and Lifestyle has also been a huge success. Consumer demand continues to grow with all MidBass products due to the ‘stronger than ever’ line up.

2010?: 2010 looks set to be another exciting year for MidBass with the promise of a number of new ventures. With a complete new product range from one of their brands - using the very latest technology and innovative design, diversification into new areas, further international brand development, and massive growth plans, 2010 will sure to be the most successful year to date for the company.

KIETH HOLNESS – ALPINE ELECTRONICS

NEGATIVES: Sadly, we had to make one person redundant as part of our cost reduction and restructuring activities.

POSITIVES: We still have four people handling sales and technical support, four Area Managers out there looking after our dealers and a "Message of Positivity" to all our customers and staff. We see no point in going on about how bad things may be - no point!None of us in going to win sales by moaning and groaning. We are happy people and we all like to deal with happy and positive people.

2010?: At Alpine, we genuinely believe that with the line up we have for 2010 we will increase both our turnover and share of the market out there. With it becoming more and more difficult for DIY installations / interfacing or upgrades, the Specialist is here to stay - and we want their business. Alpine have a great balance of OEM and Aftermarket business and with the knowledge we have of what the car makers are planning for the future, we are well placed to come up with viable alternatives and upgrades. Of course 2010 will not see an end to the current downturn,  but it will be a good year to look for new sales opportunities and future business. The dealers that are able to change their ways, and actively do something about improving their business and the way that they work, will be very well placed to move on to better things when the economy perks up.The difficulty is actually making and taking the decision to change. Will you?

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