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Pioneer Australia has outperformed the Hi Fi industry with dramatic growth in both market share and dollar value following their exit from the plasma TV industry. Now they are set to move away from the specialist AV Channel in an effort to build their relationship with Apple.Speaking at the Pioneer Audio Retreat in NSW, Chris Kotis, General Manager Sales & Marketing, said that the company had achieved unit growth of 31 per cent versus an industry average of 2 per cent. He also said that future growth will come via an expanded relationship with Apple.
Kotis said that the local operation of the Japanese company aims to grow their share of the mass retailer channel at the expense of the specialist channel.
He admitted that a lot of special channel retailers will struggle going forward as “those who make changes and adopt to new market conditions will survive as well as those who adopt new marketing models,” he said.
Kotis said that Pioneer is in the process of adjusting its distribution strategy as the company introduces several new products that will compete with the likes of Sonos and Bowers & Wilkins, maker of the popular Zeppelin iPod/iPhone dock.
He said that Pioneer sales via specialist retailers will be cut by one-third as the company chases relationships with Apple and its store network where retailer margins are not “eroded,” similarly to what is happening in mass retailers whom he admits are discounting.
He also said that there was a flight back to component audio by mass retailers who are struggling to make a profit from display devices such as TVs.
Pioneer’s current consumer distribution is 65 per cent retail chains, 30 per cent specialists and 5 per cent new retail customers.
In 2011, retail chains and new customers will grow at the expense of specialists.
Kotis said that specialists were set to fall to 20 per cent of Pioneer’s overall business.
