Sennheiser to focus on premium audio market
German audio company Sennheiser has set its eyes on the premium audio accessories market in India. The premium category, which the company defines with products above ~5,000, is growing at a fast pace in India and it hopes to capitalise on the trend in the coming years.
As part of this strategy, Sennheiser recently introduced a pair of headphones, called the Sennheiser HE 1 priced at ~45-lakh. This headphone will not be available online or in retail stores. It is a madeto-order product which will be displayed at exclusive events across the country, where interested customers can sample it, and place an order.
“Sound is an experience and with these new headphones, we’re taking it to the next level. The first exhibition event is in Delhi where people will be invited to try out the new headphones and if they want it, they can order it. Typically the delivery time is four to six weeks because we also provide the option to customise it. So, if someone wants specific colours or something engraved on it, we provide that. That’s the whole other part of the experience,” says Kapil Gulati, director — consumer segment, Sennheiser India.
The Sennheiser HE 1 is a consumer facing product, and a limited edition model. The company will be selling 30 to 35 such pieces to begin with. Apart from this, the company has expanded its premium offerings in the consumer segment with new models.
“The premium segment has been growing at 80 per cent year-on-year (in the current calendar) in India. It has been a revelation and now we feel the need to play more aggressively in this market. We won’t be focussing on the
It recently introduced a ~45-lakh pair of headphones. This will not be available online or in retail stores. And is a made-to-order product
entry-level market anymore. There will be products in that category, but our investments will be focussed on growing the premium market as that is where we see the potential in India. We aim to make India the number two market in Asia by 2020 and to number six globally by the time,” says Eric Denise, senior group vice-president, market development — Asia, Latin America, MEA and Russia.
India is fourth in the Asian market and is growing at 30 per cent year-on-year. A lot of this growth has come from ecommerce. Close to 50 per cent of Sennheiser’s total sales in India come from the online medium. The distinction, however, is that most of the ecommerce purchases are in the lower price range, while physical retail sees more sales in the premium category. Within the premium segment, wireless headphones are leading the sales, with the sub-segment contributing to 17 per cent of sales currently, up significantly from eight per cent a couple of years back. It is expected to contribute to almost 30 per cent of consumer facing sales by 2020.