Exit from mass market.
Convoy International will shift its focus from the mass market to its specialty audio business, due to growth in high definition wirelessly distributed sound, step-change improvements in premium HiFi loudspeakers and a renewed demand for legacy products such as vinyl and turntables, according to CEO Geoff Matthews (pictured).
“Many of our specialty audio dealers have been in business for generations and are seeing resurgence in their businesses as audio consumers vote with their feet and seek out premium products in preference to the crowded mass retailers,” Matthews told Appliance Retailer.
He believes the restructure is “nothing but good news” for the specialty channel and the experienced retailers servicing that market as Convoy will be able to concentrate 100% of its focus and resources on this legacy business.
When asked about job losses as a result of the restructure, Matthews did not disclose numbers, although he did say that the company will not require all of its existing people, many of whom have been with Convoy for many years.
“With any restructure and downsizing there will be job losses and that is the downside to the excitement of changing the company. We have started talking with our people and will be recognising their legal entitlements and helping them find new jobs where we can,” he said.
Convoy spent five years building the profile and market shares of its brands, 3DR Solo Aerial Smart Drone, Bowers & Wilkins, Bluesound, Classe, Harman Kardon, JBL, Monster and Sol Republic, but the company will only be relinquishing those oriented primarily towards the mass CE channel, such as JB Hi-Fi and Harvey Norman.
“We will be retaining premium specialist brands Bowers & Wilkins, Bluesound, and Classe. Over time, we expect to add to our portfolio additional premium audio brands in areas where our dealers see a market need. Any new brands acquired will be driven entirely by what our dealers want – they are our customers at the end of the day.”