The state of the UK Hi-Fi Industry...and what might be done

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savvypaul
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The state of the UK Hi-Fi Industry...and what might be done

Unread post by savvypaul »

When Tomasz and I took on NVA, a long-standing member of the forum said to me “You need to decide whether you are a manufacturer with an agenda, or not”. He had a point, but, at that stage, I knew relatively little, first-hand, of the real inside workings of the industry, so I chose to keep my powder dry; we had enough to think about, as it was! It's now more than 2 years since that conversation, and I feel that I have a bit more knowledge and a bit more to say...

The UK Hi-Fi Industry has changed dramatically over the past 20 years. As the volume of buyers for specialist hi-fi separates has dwindled, manufacturers and dealers have compensated for reduced footfall by increasing margins and charging higher ticket prices. Those higher ticket prices have meant that dealers now attract 'luxury' buyers and dealer premises have been upgraded in order to meet those 'luxury' expectations. That costs (a lot of) money, and only puts more upward pressure on pricing. At the same time, and for the same reasons, manufacturers have come under pressure from dealers and distributors to reduce 'base' pricing, which has led to many UK companies having their products made in the Far-East to take advantage of significantly lower labour costs. For 'Designed in the UK' read 'Made in China / Malaysia etc'.

One outcome of this changing landscape is that there is now a lot of average 'product' being sold at vastly inflated prices, in 'luxury' cases. So, why don't we put our amps in 'bling' cases, have them made in the Far East and watch the pound notes roll in? In short, that's not what NVA is about. We only get one life, and when we are sitting in our rocking chairs on the porch, looking back over what we have done, we want to say that we did it 'our way'. We also take the view that short-term profit, at the expense of pricing more and more people out of specialist hi-fi, is long-term suicide. We have a duty to those that follow us, and we want to be remembered as leaders of positive change rather than as one of the sheep.

Dealers tell us that our £2.5k amps sound better than their £5k offerings; they want us to put them in 'bling' cases so they can charge £6k for them, and we have a queue of dealers wanting to do so. But, we want to give you that same sound quality for half the price (in a case that is perfect for the job). So, what is the future for us and other, like-minded manufacturers?

Our offering must be professional and customer-focused. We need to make it easy for potential buyers to hear our kit, and we need to provide the levels of service that make buying from us convenient, straightforward and reliable. That means things like our 30 day home trial, free UK delivery, 'buy now, pay later' options that allow potential buyers to audition kit in their own systems, no-quibble returns and warranties, upgrade options, dedicated workshop back-up, user groups and... a voice at the other end of the phone.

We need to get our kit in front of more people. This is the area where dealers can excel; buyers walk in and dealers put kit that they might otherwise never have heard of in front of them. Putting kit in front of people, without dealers, requires a lot of work and a fair amount of expense – even letting people know that we exist costs serious money for advertising. We could do with a 'virtual' network of dealers who operate online only, at reduced cost, sending out kit for home audition. Or, a co-operative of manufacturers who want to sell direct to the public. Or, we need to somehow persuade existing dealers that better value is the way to save 'real world' hi-fi manufacturing in the UK.

Lastly, we must harness the the internet. Not just for selling, but also for education. In any marketplace, knowledge is power. Knowledgeable customers make better decisions. Better decisions benefit better manufacturers. We need to expose the 'bling case, mediocre internals' game, and we need to show that there is an alternative. This means getting our message across at every opportunity – social media, forums, bake-offs, user reviews. Help us by spreading the word, wherever and whenever you can.
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CN211276 (Fri Jan 28, 2022 5:04 pm) • Lindsayt (Fri Jan 28, 2022 9:13 pm) • antonio66 (Sat Jan 29, 2022 12:28 am) • NSNO2021 (Mon Jan 31, 2022 9:16 pm)
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Re: The state of the UK Hi-Fi Industry...and what might be done

Unread post by DaveyTed »

You make a lot of valid points, Paul. I applaud the NVA policy of UK manufacture whilst retaining value.
You make no mention, however, of the previously discussed idea of NVA users being "trained" as home demo agents on commission - has this idea been dropped?
With regard to hi-fi retailers, in my area at least, it seems the survivors are the flat earth supporters - the Linn and Naim dealers.
I wish Tom and you continuing success whichever routes you choose.
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savvypaul (Fri Jan 28, 2022 5:39 pm)

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Re: The state of the UK Hi-Fi Industry...and what might be done

Unread post by CN211276 »

I think that getting people to know that NVA exist is a major issue. From a personal prespective I do not recall NVA coming to my attention in the early to mid 80s when I bought hifi magazines. When my interest resurfaced thirty years later through the Internet it took around a year for me to become aware of NVA after accidetally stumbling on HFS. As soon as I heard the kit in my own system I was hooked, but with some regret in realising, as a music lover, what I had been missing out on for so long because of all the BS which circulated in the 80s.

I am a member of the Chord users Facebook group where other brands are sometimes discussed. I have not come across anyone who has heard of NVA, but this is in the context of many of the members being in the USA. Following comments I have made about SQ and VFM, some have said they will investigate on the net.
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savvypaul (Fri Jan 28, 2022 5:39 pm)
Main System
NVA BMU, P90SA/A80s (latest spec), Cube 1s, TIS, TISC(LS7)
Sonore OpticalRendu, Chord Mscaler & Qutest, Sbooster PSs
Network Acoustics Eno, ifi iPurifier3, AQ JB FMJ, Cisco 2940 & 2960
DH Labs ethernet, BNC & USB cables, Farnells cat 8 ethernet cable

Second System
NVA P20/ A20, Cubettes, LS3, SSP, SC
Sonore MicroRendu, Chord Mojo 2 MCRU PSs, AQ Carbon USB cable & JB FMJ

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Grado SR325e/Chord Mojo, Beyerdynamic Avetho/AQ DF Colbat

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Re: The state of the UK Hi-Fi Industry...and what might be done

Unread post by savvypaul »

DaveyTed wrote: Fri Jan 28, 2022 5:33 pm You make a lot of valid points, Paul. I applaud the NVA policy of UK manufacture whilst retaining value.
You make no mention, however, of the previously discussed idea of NVA users being "trained" as home demo agents on commission - has this idea been dropped?
With regard to hi-fi retailers, in my area at least, it seems the survivors are the flat earth supporters - the Linn and Naim dealers.
I wish Tom and you continuing success whichever routes you choose.
We have 10 people interested. However, 7 of them live in the midlands / Yorkshire area, and a few of them live just a few miles apart. It doesn't feel right to rely on (or advertise) a service that doesn't cover 75% of the country. I would love to 'democratise' the industry with help from NVA enthusiasts but we can't go off half-cocked.

Buy Now, Pay Later (Klarna) is a way for us to run a loan scheme, to all intents and purposes, at low risk, and without holding dedicated loan stock. The customer still has to fill in a form for Klarna (integrated with the website checkout) before the 'transaction' is enacted, so there is still that obstacle, but it is already prompting more interest.
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DaveyTed (Fri Jan 28, 2022 6:02 pm)
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Re: The state of the UK Hi-Fi Industry...and what might be done

Unread post by slinger »

You touched on "Chi-fi" and I think the general move towards low to mid-range kit gravitating pretty firmly towards the online marketplace has forced companies like FiiO, Douk Audio, Weiliang, and especially SMSL, LKS. Gustard, and Topping, to up their games dramatically (along with their prices). It used to be that bargain Chi-fi was readily available if you were prepared to take a punt, but more and more I see their kit selling at prices comparable to a lot of UK mid-range DACs (for instance).

That said, it probably makes NVA's marketing strategy the last remaining "bargain" route for hi-fi buyers not wishing to buy "used," or *puke* preloved.
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savvypaul (Fri Jan 28, 2022 5:50 pm)
Amps - NVA P50, AP30, A40, Stanislav Palo Tube Headphone Amp BB 85
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Re: The state of the UK Hi-Fi Industry...and what might be done

Unread post by Lindsayt »

Have you thought about sending some sample products to What Hi-fi magazine for them to review?

I personally don't agree with their "new only" editorial policy, and their "everything is awesome" reviewing style. But they do have the best distribution of their magazine...

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Re: The state of the UK Hi-Fi Industry...and what might be done

Unread post by savvypaul »

Lindsayt wrote: Fri Jan 28, 2022 9:17 pm Have you thought about sending some sample products to What Hi-fi magazine for them to review?

I personally don't agree with their "new only" editorial policy, and their "everything is awesome" reviewing style. But they do have the best distribution of their magazine...
When I spoke with them a couple of years ago, they would only deal with companies who have distribution. They weren't interested in direct sellers.

When we launch the new integrated and Cubes, we will be actively seeking magazine and online reviews.
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antonio66 (Sat Jan 29, 2022 12:31 am)
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Re: The state of the UK Hi-Fi Industry...and what might be done

Unread post by DaveyTed »

Lindsayt wrote: Fri Jan 28, 2022 9:17 pm Have you thought about sending some sample products to What Hi-fi magazine for them to review?

I personally don't agree with their "new only" editorial policy, and their "everything is awesome" reviewing style. But they do have the best distribution of their magazine...
Getting some product reviews can only help get NVA wider known.
I've seen many comments that some magazines only give good reviews to regular advertisers but Rega, for example, get good reviews without ever advertising.
Whist personally not a user, social media sites can help awareness.

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Re: The state of the UK Hi-Fi Industry...and what might be done

Unread post by savvypaul »

DaveyTed wrote: Fri Jan 28, 2022 9:29 pm
Lindsayt wrote: Fri Jan 28, 2022 9:17 pm Have you thought about sending some sample products to What Hi-fi magazine for them to review?

I personally don't agree with their "new only" editorial policy, and their "everything is awesome" reviewing style. But they do have the best distribution of their magazine...
Getting some product reviews can only help get NVA wider known.
I've seen many comments that some magazines only give good reviews to regular advertisers but Rega, for example, get good reviews without ever advertising.
Whist personally not a user, social media sites can help awareness.
I agree. This year we'll be doing at least 2 shows - we are confirmed for the North West show in June and the UK Audio show in October, and considering the UK Live Show at Ascot racecourse in September.

We'll have Facebook, Instagram and magazine campaigns to promote the new products
I am in the hi-fi trade
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Company Name: NVA Hi-Fi
https://nvahifi.co.uk/

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Re: The state of the UK Hi-Fi Industry...and what might be done

Unread post by CN211276 »

Five star reviews on What HiFi are meaningless and it is best to give them a wide berth. From my own experience the 3.5K WAF Spendors which had a five star review sound shite. They also prefer Tidal to Qobuz, my ears do not agree. I do not think the best products are sent to What HiFi because nothing can be gained by a favourable review when so much mediocraty and shite is raved about. Eg, amongst the Chord range to the best of my knowledge the Mscaler is conspicuous by its absence.
Main System
NVA BMU, P90SA/A80s (latest spec), Cube 1s, TIS, TISC(LS7)
Sonore OpticalRendu, Chord Mscaler & Qutest, Sbooster PSs
Network Acoustics Eno, ifi iPurifier3, AQ JB FMJ, Cisco 2940 & 2960
DH Labs ethernet, BNC & USB cables, Farnells cat 8 ethernet cable

Second System
NVA P20/ A20, Cubettes, LS3, SSP, SC
Sonore MicroRendu, Chord Mojo 2 MCRU PSs, AQ Carbon USB cable & JB FMJ

Headphones
Grado SR325e/Chord Mojo, Beyerdynamic Avetho/AQ DF Colbat

RIP Doc

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