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EXCLUSIVE: Sydney base Hi Fi & Video Marketing is set to “shut up shop” weeks after losing the Boston Acoustics account.A long time CEDIA member, the shock exit could see several brands move to new distributors despite the fact that several distributors ChannelNews has spoken to have said that they are not interested in taking on new brands.
Andrew Menzer the CEO of Video & Hi Fi Marketing confirmed his decision to ChannelNews.
Among the brands sold by HIVM is Elan home automation, Sunfire storage, Wired World, Aton & AMC.
Established in 1993, Hi Fi & Video Marketing was at its peak one of Australia’s leading importer/distributors of Hi Fi, Home Theatre, Multimedia, Car Audio, Custom Electronics components and Speakers.
Last month, HIVM lost one their largest accounts when after 18 years Boston Acoustics pulled the plug on their relationship in favour of a distribution relationship with Amber Technology.
According to Andrew Menzer the CEO of Video & Hi Fi Marketing who has had the Boston account the decision “made no sense”.
At the time he told Channel New that “Boston has not really been interested in the Australian market. No executive from the company has visited Australia in over 12 years and what they have done is appoint Amber who has lost several accounts this year including PSB, KEF and Celeste Audio. It will be interesting to see how they sell the Boston custom range of audio products up against their existing Sonance range. I doubt whether Sonance will be happy.”
He said that in recent weeks several executives have walked away from Boston Acoustics including the executive who appointed Amber Technology.
“The Company is not tracking well globally so it will be interesting to see how they go in Australia”.
A big issue for both HIVM and other custom product distributors is the emergence of new technology that has lowered the price threshold of products, also impacting the industry are new players like Savant and Push Controls, who are now selling low cost automation that run on the Apple OS.
Josef Riediger, CEO of Advance Audio Australia said that he was not interested in HIVM products and added “The market in getting tough out there. Distributors today have to have a balanced portfolio spanning both the lower end and top end of the market. One has to cater for mass retailers and the specialist”.
“Technology changes quickly and the products sold by distributors has to keep pace with what the market is offering. We took on Control4 last year and we are the biggest distributor in the world for the IP automation Company. We took KEF from Amber and we’ve been able to expand sales because we have a product that ranges in price from entry level to the custom level”.
More To Follow.
