B&O Targets Younger Clientele in Experience-Based Retail Expansion

Bang & Olufsen is “constantly evolving" its retail locations and "brick-and-mortar experience based on market trends” in cities where it sees an expanding client base, emailed Nilas Porsman, B&O America head-retail, after the luxury AV brand's announcement this month it plans to open an experience store by year-end in the Miami Design District (see 2208020017). The brand has had showrooms in the U.S. and Canada for more than 30 years.

The Miami location, a partnership with distribution services company Tekmovil, will be a Monobrand Experience Center where visitors can "experience, touch, hear" and buy products, said the company. B&O, which operates 15 stores in the U.S., including its flagship in New York's SoHo district, is “actively expanding our physical footprint across the region,” Porsman said, including a new showroom in Orlando. The company plans to have more than 10 new showrooms opening across cities in the U.S. and Canada over the next two years “to keep up with customer demand and to continue developing relationships” with custom installers, architects and interior designers, he said.

B&O has grown its business the past few years by expanding its product portfolio to target a younger demographic and by engaging new clients who are considering a custom-installation system or larger one-off purchases, such as a TV or premium stereo speakers, Porsman said.

The in-store experience focus meshes with current consumer retail trends, Porsman said. “Customers today have high expectations for in-store experiences: They are not only buying a product, but they are also buying something that will contribute to lifestyle, whether it is headphones for traveling, a television to experience their favorite shows with family, or speakers to entertain friends.”

B&O opened its first Beohome experience store in Boston last year, depicting an apartment full of B&O products in kitchen, living room, bedroom and home theater vignettes, Porsman said. The fully automated Beohome is a collaboration with a local furniture store and is outfitted with automated shades and lights. Customers can see “the full scale of our product capabilities and experience Bang & Olufsen in an immersive space rather than the traditional retail model," he said. It will open similar spaces over the next few years, including in the Miami location due to open this year.

The company's expansion plan is focused on “geographically relevant cities” where B&O sees increased customer engagement and potential for growth, Porsman said. It's also seeking to “interact in new ways with our brick-and-mortar customers,” he said, including presenting its “bespoke program to architects, interior designers, custom integrators, and hotels, working closely to customize our products directly to their clients’ needs and emphasizing our ability to work creatively and collaboratively on large-scale projects.”

B&O also is working on streamlining and optimizing its commercial model “to ensure consistent store experiences across each showroom,” said Porsman. Its goal is to offer “operational consistency (and trust), better and consistent in store customer experiences" and clear guidance of the services and offerings the company has, along with expectations for its partners, he wrote. Each store will have “subtle nods to the history or aesthetics of their specific cities and neighborhoods,” while maintaining a “more consistent retail experience for our clients across North America,” he said, noting existing showrooms will be updated “with the latest retail fittings.”

Most B&O showrooms display a variety of products compatible with the brand's portfolio. Bigger projects include a full home system, including audio and video, a home network, lights, video and shades. Beohomes in particular “will showcase a wide variety of partners that are compatible with our products and our connective technology,” Porsman said.

Experiencing a B&O audio system in action is critical to sales, said Porsman: “Our luxury speakers and sound-systems are a major investment, and we want our customers to have the opportunity to experience our audio systems in person whenever possible,” he said. The in-store experience also allows customers to “develop a personal relationship with our employees who ensure customers are receiving all the benefits of the white glove services we provide.”

The B&O website details investment opportunities for potential retail partners. Investment commitments are about $225,800-$376,000 for a B&O-branded store with the company’s full product line in the new sensory store concept. It also offers store-within-a-store opportunities within kitchen or furniture showrooms or larger AV stores at $80,000-$110,000.