What: B&O bets on the fact that the “rich will only get richer” and this is an opportunity for them.

Why it is important: their bet is based on a strategic focus on a specific part of the market, which is what department stores should also adopt as a strategy.

Danish high-end speaker and television manufacturer Bang & Olufsen is optimistic about its prospects in the luxury goods market despite a recent downturn in luxury demand. CEO Kristian Teär believes the company's unique position in the premium audio sector, with products like the £110,000 Beolab 90 speakers, gives it an edge. He aims to attract younger generations interested in design and technology, as well as wealthy individuals seeking aesthetic home additions. Teär asserts that the wealthy, the brand's primary clientele, will continue to grow richer and seek unique products to express themselves. Bang & Olufsen, founded in 1925 and known for innovative products like its early mass-produced radios, faced challenges during the pandemic but has been focusing on growth and clarity of direction, especially in markets like London. However, the company experienced a 7% revenue decline in the last financial year.

Bang & Olufsen says it will defy luxury slowdown