Jacob, good afternoon. We are very pleased to welcome you to Dubai again. We are sure that a lot of changes have happened since our last meeting ... Of course, even your magazine began to look more elite than before. Thank you for such an assessment. We are just trying to focus on readers who may be interested in such technical innovations as Bang & Olufsen. So let's do this - and what about you?
Our previous meeting was two years ago, when the entire economy and all types of business were experiencing an incredible rise. Then it gave us more opportunities to work and create something new. The past year was very difficult for our company, for many decades, B&O lost money for the first time, and 2009 brought us about 60 million euros in losses. Since our business is transparent and healthy, for us the loss of such an amount is essential. I believe that the current fiscal year, which ends in June, will also be closed at a loss, though not with such serious ones. We plan that the amount of losses this time will be about 5-6 million euros, which, compared with 60 million, is already a trifle.
Decrease in sales in which countries most seriously affected Bang & Olufsen's losses?
I think that the most serious damage was caused to us by European markets - Germany, Denmark, Great Britain, Holland, Switzerland. It was a very difficult year in Spain. Basically, the countries of Western Europe suffered from the crisis.
Do we know that Bang & Olufsen has its stores in major Russian cities? What was the situation in Russia?
Sales in Russia also fell significantly, but not as much as in Europe. Moreover, the main blow fell on our middle-class products. We sold the most expensive B&O products as planned. That is why, having studied the situation in Europe, we presented there three models of televisions that were designed in the new price range of the economy class with the same picture and sound quality B&O. This allowed us to turn again to our old customers in Western Europe, who number over 400 thousand and who purchased our televisions in the 1990s. Thus, we returned our regular customers to B&O.
What about TVs?
We also presented in different markets what Bang & Olufsen has always been famous for, our new developments in the field of integrated technologies and systems for the home. For example, we did a unique thing. We call it conditionally "black box". In fact, this is Masterlink Gateway, which allows you to integrate and control with a single remote control not only our equipment installed in the house, but also the rest, regardless of the manufacturer. Moreover, if you do not want to use the remote control, you can program all the functions on any device that has a wireless Internet connection (Wi-Fi). It can be your BlackBerry or iPhone, with which you can control all the systems in the house - turn on the TV, the music center, open and close the curtains, turn the lights on and off, and so on.
Imagine a picture - sitting at home and turning on the TV using the iPhone ...
Yes, it looks funny from the outside, but today it is already possible. And not just turn on the TV. You can manage your home from anywhere in the world. For example, if you are at the airport and fly to Moscow, you can check with your mobile phone whether the alarm system in the apartment in Dubai is turned on. And so on. But for this it is necessary that the "black box" is installed in your home.
Speaking of televisions, have you ever thought about launching 3D TVs? Has this trend become extremely fashionable lately?
The topic of 3D TV production is very interesting, but the main thing in these systems is not television screens, but computers inside TVs that are faster than usual. So far, in order to watch something in 3D, you need to wear special glasses, for home use this is not very suitable. So far, 3D technology is not perfect. Maybe in two or three years we will return to this idea. When we make sure that technology allows you to enjoy this format at home, we will develop it. Most likely, we will think about a TV that can work in both regular and 3D formats.
Does Bang & Olufsen also produce car audio systems?
Yes of course. Now we are working with Audi, Aston Martin, Mercedes Benz, and also plan to introduce our products to the fourth automobile brand. Since B&O products are not the cheapest, in cars like Aston Martin they are built right into the factory, and in all the others our audio systems come as options and can be installed by customer request.
Do you continue to collaborate with Dubai developers in whose buildings the Bang & Olufsen smart home systems were planned to be installed?
We have signed contracts for several projects, and received an advance payment from developers. We just wait until the situation on the real estate market stabilizes, and the buildings in which we must install our systems will be built and put into operation. We are ready to start fulfilling our obligations under the agreements immediately.
What other recent B&O achievements have we not mentioned?
We must say about the opening of our regional office in Dubai. Hope this helps our future work in the Middle East region. Well, and do not forget that we are constantly looking for and developing something. Our philosophy is known to everyone: "Courage and a constant desire to avoid everyday life in search of the amazing and the infinite." Therefore, if we do not create something new, we will cease to be Bang & Olufsen. And people always need something extraordinary, so we are here.
Thanks, Jacob. We wish you success and look forward to new developments.
