Sound United Looking to 'Digital-First' Future, Says Krakowski

Sound United wants to establish a stronger digital e-commerce footprint, James Krakowski, vice president-commercial operations, told Consumer Electronics Daily Thursday. “Consumers are looking to engage with brands directly,” he said, and they want to engage with trusted retailers online.

Creating a stronger digital footprint, either directly to consumers or with retail partners, is a “necessity going forward,” Krakowski said. Omnichannel in the past has been a “buzzword,” he said, “but it is digital first as part of an omnichannel strategy going forward.”

All the Sound United brands have direct-to-consumer e-commerce platforms, which the company wants to grow and improve, Krakowski said. He quickly added that strategy doesn't diminish the need for its existing retail partners “that have made us what we are today.” The relationship is “not a competition" but an "augmentation” to further promote its brands such as Bowers & Wilkins, Definitive Technology, Denon and Polk Audio.

“It’s an age-old question,” Krakowski said, how Sound United reassures dealers the company isn't competing with them for consumers’ dollars. The challenge is, “how do we create more of a pull-through strategy by driving greater awareness and greater demand” for the brands’ products that "benefit our dealers regardless of where the consumer chooses to shop.”

Sound United won’t be at CES 2022, mostly due to COVID-19 concerns, Krakowski said. But he also cited the CEDIA Expo’s relative importance to Sound United as a consideration, plus the virtual trade show the company held in November and the experience center it recently opened in Carlsbad, California. The experience center gives Sound United a year-round venue for product demonstrations and face-to-face meetings with customers. The company can customize the five demo rooms to highlight any of the brands, he said. The facility also has a 50-person training room and hospitality area.

Though Sound United won’t have a sales presence at CES 2022, it may have brand representation for off-site dealer meetings, Krakowski said. Going forward, Sound United’s presence at CES will be a year-by-year decision, he said. If COVID-19 hadn’t been an issue for 2022, the company probably wouldn't have had a booth but would likely have met with dealers in suites and demo rooms, he said. “CES is an important event for our industry; I don’t see that ever changing,” he said, though he expects it to continue to evolve to meet the needs of manufacturers, retailers and consumers.

One “new normal” that has emerged from the COVID-19 era, Krakowski said, is the diminished need for travel, which he called “refreshing.” Executives don’t have to be “road warriors” to accomplish business goals, he said. “In the past, we all felt that we needed to be on the road constantly and face to face with our partners. The new normal is that we can be just as effective but even more efficient through virtual interactions.” He cited being able to “control expenses by not needing to be on the road as much as we have in the past.” Retail partners appreciate that as well, he said: “They don’t get caught up in having someone derail an entire day to come in for a one-hour meeting.”

But Krakowski doesn’t see in-person meetings disappearing: “There’s a lot that gets accomplished in just being in the same room with a partner.”

Sound United’s mission for 2022 is to strengthen the core business while looking to expand into new channels, Krakowski said. It’s also hoping to strengthen its position in categories where consumers are looking for premium audio products. He cited sound bars and headphones, highlighting a new sound bar and true wireless headphones in the Denon line. On Roku’s announcement Wednesday that it added Polk Audio as a partner (see 2112290018), Krakowski said that’s “still to be defined.”