How the Audio Industry Can Win Today’s Consumer
But as spending slows in this economy, many business sectors -- including the electronics industry -- will be forced to find new ways to develop customers.
Generation X and the much larger Generation Y are beginning to fill the boomers' spending role.
Depending on the figures, most studies estimate the 46 million Gen X to have an annual spending around $125 billion. The more than 70 million Gen Y spend an estimated $150 billion and rising.
Audio is Digital, Portable and Evolving
Today, the audio market includes home theaters, portable electronics and even computers.
According to the Record Industry Association of America (RIAA), sales of digital music have grown at a rapid rate and, as of 2008, now make up about one-third of the music sales market.
Over the same time, physical media sales have declined exponentially. CD sales fell more than 24 percent and, for the first time, music DVD sales slipped by over 50 percent.
One noteworthy trend within the physical media market has been the vinyl revival, which has seen its highest sales since 1990. This is likely because of two things: consumers' dissatisfaction with the quality of low-resolution digital formats and boomer parents passing their record collections onto their kids.
The Consumer Electronics Association (CEA) even conceded that the market was changing when it released its December 2008 study "The Evolution of Audio: Is Anyone Listening?"
"Gone are the days when consumers purchased a single type of content to play on a single type of device exclusively for audio listening," says Steve Koenig, director of industry analysis for the CEA.
"Successful manufacturers are using formats that allow them to stay in front of customers who are navigating across an array of content choices."
To Succeed, Manufacturers Need to Go Young
It's imperative that both the RIAA and CEA get younger consumers interested in music, no matter how they listen to it.
The RIAA, which dismissed a business model given to it by Apple, has watched iTunes turn into one of the top music retailers without any real competitive counterpunch.
The gaming industry has taken another piece of the music sales pie with popular titles such as "Guitar Hero" and "Rock Band." They've allowed musicians to cash in on their individual marketing properties without having to share it with the record labels.
The Internet continues to provide access to unsigned and radio-shunned bands through social networks.
But the electronics industry has an opportunity if it embraces the multimedia experience that consumers crave. People will always need playback equipment and, depending on the application, it can be as basic as an iPod dock or as complex as a multiroom A/V system.
To succeed, audio manufacturers need to develop products that appeal to younger consumers and arm dealers with the tools and training to effectively sell them.
How Do You Sell and Market to Younger Consumers?
In this economy, buzzwords like value-minded and thrifty are thrown around frequently as consumers of all types slowly get comfortable the idea of spending money again.
These buzzwords take on a special meaning for Gen X and Gen Y consumers saddled with school loans, adjustable-rate mortgage payments and other expenses not a part of the boomer generation.
The best way for manufacturers to find the cost, performance and feature set preferences for this group is to hear directly from them.
We asked Gen X and Gen Y industry professionals how the audio industry should market and sell to them. Here's what they had to say.
Mike Blewitt, a music and recording major at the University of Massachusetts, Lowell, and a guitar instructor at Sarrin Music Studios in Wakefield, Mass.
Blewitt, the youngest person polled in this anecdotal survey, says that there are two types of music consumers: traditional listeners and active searchers.
The music and electronics industries both need to consider these groups when they develop their sales and marketing strategies.
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13 Comments (displayed in order by date/time)
I agree with 39 Cent Stamp with an addition…
The “younger generation” has absolutely no reason to be interested in high quality audio systems today- Why would they?
Can anyone hear the difference in the quality of the ever so lame and same bass heavy sh*tty rap music, or the over-produced and altered vocals of today’s “alleged” super star artists if played on an I-POD or a good old Krell amp and a pair Wilson Watt Puppies?
Crap in, crap out.
Thus,
“Head On… apply directly to the forehead.”
“Head On… apply directly to the forehead.”
“Head On… apply directly to the forehead.”
Hi Dave, we’re not necessarily talking about blasting Fall out Boy at 100db through a Krell/Wilson system, but if a young person has the money to buy that gear why not sell it to them.
What they listen to is their preference, but as a dealer you should be prepared to service this client. You need to be marketing to them and you should be prepared to demonstrate your product to them for home theater and music applications.
I agree that today’s music is compressed to hell and that it’s tough to gauge any performance with pitch-corrected vocals, multi-tracked guitars, drum tracks, etc, but a lot of kids are listen to The Beatles,Zeppelin and Sabbath just as much as they are listening to Britney.
Just look at vinyl sales. Young people are saying that they like the quality of it better than low res digital files.
They are introduced to this quality by their parents. As a dealer show them how those Allman Bros records sound or an uncompressed Miles’ WAV/AIFF file sounds cranked through some Wilsons.
The reality is as the numbers in this story indicate is that when the boomer generation stops its spending the electronics industry is going to need to replace that consumer demographic.
One of the factors that I feel is part of the lack of want or acceptance for higher quality gear and content is the lack of music appreciation in schools. Back in the day music appreciation was a requirement (at least in my schools), not learning an instrument as much as how to listen. Part of this was the exposure to higher quaility audio content, I mean we may not be into the bands from our generation, but at least we can all appreciate the integrity in the writing, recording and mastering of the content.
Sure that does happen today, but it is not the norm and is the exception, mostly due to the playback device being considered upon release. Some fans are concerned with quality as the resistance to the latest Metallica album indicates as stated in the CEPRO article. This is indication that some of the younger generation get it.
While I agree that we need to target the younger listeners with products that they can relate to, I also feel that we owe it to them to push for music appreciation so that they can grow as people and not just sheep following the new flock.
Hi Dave I think that appreciation comes with age in many cases.
Young people today may listen to Britney, but they may grow into as they get older the records from the Motown era for example if soul and r&b;is their thing.
I do agree that in an ideal world music would be taught in the schools, but given the current economy schools are having a hard time funding basic things never mind sports, music and theater.
I think the thing for installers to remember as they look at something like this is that if a Gen X or Y client comes into your place of business you’ve got an opportunity to educate them and make a sale. Show them why your products are better than the big-box store, show them what your company’s skill and product lines can do to enhance their lives.
Unlike the boomers, these younger generations will probably move onto something else like a car, a home remodel, new appliances or possibly that trip to the big retailer down the street so if they’re going to spend their money all you need to do is make for them to spend it with you.
To Dave Wright: I couldn’t agree with you more!!!
I also agree with Bob Archer that there is an opportunity to sell good equipment to the younger generation. Personally, I have sold tons of high end 2 channel gear to Princeton University students for their dorm rooms… I’m talking Mark Levinson, Krell, Thiel, Martin Logan, Theta Digital, etc… These kids have better equipment than I do.
However as Dave W. points out, he is absolutely correct that the majority of the younger generation are simply sheep being lead to the slaughter due to the lack of music appreciation.
I’m 50 years old, and our parents might have also thought that the Beatles or Elvis was just noise in our prime. Yet, as opened minded as I am to all types of music, I refuse to play/demo rap music, Madonna, Britney, etc. within my 4 walls.
But I’ll also admit, I would never listen to Foghat, Alice In Chains, Killing Joke, and most Rolling Stones music in my day. I also hate the Greatful Dead, but Jerry Garcia solo albums were not only extremely well recorded, he was truly a gifted artist.
In any case, personally Dave Wright hit a real nerve with me… I played 1st Trombone in the Bergen Community Symphony Orchestra for years, and that’s where I developed an ear for what instruments are supposed to sound like and the amount of hard work it takes to make it happen.
The kids today, (boy do I feel old), look up to today’s talentless idiots who make millions of dollars spitting and screaming into microphones while being backed up by a Casio keyboard with an ex-con “scratching” vinyl records on Techniques 1200 MK II turntables.
Sorry Bob, I won’t play in that arena. The problem is that it’s easier for today’s youth to just go along and follow the lowest common denominator… my teaching days are over.
Have to go now- my new dual 15” car subwoofers & new 50 Cent CD just arrived. It’s going to take all day for the Audyssey gear to get the equalization levels just right…
Hi Dave S, I can understand your feelings about rap/hip-hop and today’s pop music, but I think the thing to remember is that once that client walks out the door you won’t be listening to that music and if it takes a Britney CD to make a sale versus losing it to a big-box retailer it’s something that needs to be considered
Ultimately I think you people will outgrow that music and it’s part of the reason that Eminem is having problems with his new record now—His 15 minutes have passed him by—-but with that said maybe you introduce some music with a groove like Van Halen (see comments from Mike the college student in the story), Stevie Wonder or whatever.
In this scenario you can explain stuff like Eddie’s drop tuning to complement Roth’s voice or something like that. You’ll come off as the expert while introducing the young person to music that has held up over the years because of the songwriting and musicianship involved in making it.
Talking to dealers far and wide, I there’s a strong trend in trying to take audio back from the portable and in-a-box categories. It think that’s fantastic.
The iPod isn’t going to just dissapear, and modern music is what it is, for better or for worse. However, dealers have the ability to show clients what good quality represents. People can’t buy what you don’t show them, so always show them the best.
At the same time, I think it’s unfair to exclaim “kids today!” and dismiss an entire generation. Some of the biggest afficionados and music nerds I know are in their 20’s. The market is right there, it just needs to be catered to.
Wow. What a spelling and grammatical disaster. My apologies for rushing that post.
I agree with all of this, the current state must be embraced while showing the advantages of the high quality systems. Dealers need to educate in order to sell higher grade components, even a mid to high level system can include an iPod.
My approach in anything has always been to sell through education, have had more success that way. One of my favorite tag lines is the Syms clothing store owners quote: “An educated consumer is our best customer”...
To Bob Archer: I agree with you on many points and also with some of the other posts.
We have a famous saying within my business:
“Any audio system only has to please the listener.”
To say that my choice of equipment or taste in music are the only correct solutions is beyond arrogant. It is truly personal taste… I get it.
However, because we are a referral only business, there’s a problem with this scenario. What if I sell Eminexcrement a system that I know is totally mismatched, but he’s still loves it? One day someone will walk into his home who really knows his stuff and will say, “Who sold you all of this crap?”
Do I really think that the client will say it was his decision, or will he say, “That guy at XYZ down town sold it to me.”
I ran into this exact situation selling personal home audio systems to all of Bon Jovi & Anthrax. They had no problem with the Audio Research tube pre-amps & the famous Aragon 8008 amplifiers… However, when I demonstrated top of the line Magneplanars and Thiel’s to both of them using their own CD’s, they didn’t get it because it didn’t/wouldn’t play loud enough. They thought Bose 901’s were the “cats meow,” (which we did sell at the time.) At the very least, I was finally able to sell them both Dahlquist DQ-20’s with stacked Velodyne subs in order to save my reputation and keep the sale from a dealer who dropped off huge Polk SRS towers at their homes as “loaners.”
I’m done trying to save the world from bad audio, and I can’t hear their systems from my home. Yet, I’m not willing to wait for someone to point their fingers at me in the end and be labeled a hack.
Lastly, the only music that has died off, (Praise the Lord), in my 33 years in this business is Disco. This other crap is here to stay because anyone can do it and make a fortune. All you need is a Shure M-95E microphone & some jail time, and you’re in business. To prove my point, Tupak still releases new recordings and his estate makes millions. He’s the hardest working dead man I’ve ever seen outside of Yoko Ono scrounging around her home to release John’s bathroom recordings post Taco Bell dinners.
Hi Dave, that’s an interesting story.
I think I know where Bon Jovi and Anthax are coming from in that musicians listen differently.
They may be listening to their amp tone, the sound of the reverb on the snare, etc and they many not notice anything else, but that is a good point.
It also sounds like you were able to put together a system that pleased your standards as well as theirs. I think that is the real important thing—-you put together a system by working with the client that met your quality standards and their performance standards.
That hasn’t been discussed in the story or in the comments thread.
thanks for the input.
Bob
Thanks Bob for the kind comments.
I think all I need now to get the young crowd captivated in upper end audio is some “gell celled” powered Vibrapod Isolation Cones and speaker spikes that will make everything jump 5” up and down off the shelves and floor via remote control. Maybe JBL could put some chrome spinners in front of their tweeters… it might even improve the high frequency dispersion.



“Gone are the days when consumers purchased a single type of content to play on a single type of device exclusively for audio listening,” says Steve Koenig, director of industry analysis for the CEA.”
FYI.. this isn’t by choice. Its absolutely maddening that i have to use multiple services & devices & ‘work arounds’ to accomplish what a single record store and my $20 walkman could do 20 years ago.