Surviving Well is an Achievement

Interview with Yao Hongbo, President of HiVi Audio

    In 2001, the audio industry gradually returned to a primitive state.

    From 1995 to 1997, it used to be a peak period of the audio market, and the competition was fierce. However, in the years after 1998, the huge shrinkage of the audio market caused the market to suffer a long-term cold snap, and many audio manufacturers left the market sadly. However, since last year, the audio market has gradually heated up, and multiple capitals have rushed to the audio industry, and the competition has suddenly intensified.

    Founded in 1991, HiVi Audio is naturally an out-and-out youngster compared to some foreign audio brands, but it can be called a "longevity brand" in the Chinese audio industry. "The speed of metabolism in this industry is astonishingly fast. Sometimes I think that Swan can survive well is an achievement." Yao Hongbo said.

Relying on foreign famous market

    This year's CCTV "3.15" party revealed the "Xiangwu Shi" audio scam. People who are not familiar with the audio industry seem to have no idea about it. Karma brings a real shock. Perhaps it's not just those who create and participate in the "Xiangwu Shi" scam who are embarrassed.

    Yao Hongbo told reporters that in response to the Chinese people's general advocacy of foreign brand audio, many domestic audio systems concocted unwarranted "foreign origin" for themselves. In the eyes of audio professionals, some tricks that are almost scornful can deceive many lack of professional knowledge of audio. Understanding consumers. "Xiangwuzhuang" is one of the most extreme cases. The problems reflected in this are naturally multi-faceted, and the immaturity of China's audio industry as an industry is also evident.

    Domestic audio brands often encounter embarrassment in marketing. Consumers are more likely to trust foreign brands of speakers, the same materials, the same technology and functions, and even some domestic speakers are more beautiful and diverse than foreign brands in appearance and style, but Chinese consumers who are frightened are often afraid of domestic speakers. Sound is hostile. Therefore, if the manufacturer is playing a foreign brand, it is often easy to win the favor of consumers.

    "Audio is a special product, the difference in its efficacy is not so obvious compared to medicines, home appliances and other products, and the damage of defective products is relatively small, especially professional audio, which requires consumers to have a good appreciation. Ability can distinguish grades. That’s why gelding like Xiang Wuzhuang can make a lot of money, but it’s clear that the good days for them are coming to an end, because the Chinese have begun to reflect on their own consumption behavior.”

    "After China's entry into the WTO, the positive and negative effects of nationality will be greatly reduced. Continuing to bet on this aspect is undoubtedly a short-sighted behavior. Paying attention to the real effort of products and enterprises as soon as possible is the right way for the audio industry." Yao Hong Bo said.

    Yao Hongbo became a Canadian citizen in his early years. Swans' headquarters is located in Canada all the year round, and now it has moved to the United States, but Swan never shy about his Chinese origin, "Foreigners say that China's Swans is really not bad, at this time I think it is true happiness."

Technology is the key

    "Pull a person who understands audio and ask him about professional audio in China. The first one that pops up must be HiVi, but if it's a person who doesn't understand audio, the first thing he thinks of is not HiVi." Yao Hongbo said that this is a dumb laugh. Although HiVi's reputation in the industry is respected by its peers, it is obviously not enough to call itself the boss.

    "In terms of marketing, our efforts are indeed not deep enough. The franchise models of Ailang and CAV are very successful. Swans has matured too late in the marketing model, but these are only part of it. The deeper problems are the previous ones. There is a problem with the competition model of China's audio market in 2018. The question of 'competition, what is it' has determined that some brands have become popular in China in recent years, but this problem will also determine who will continue to become popular in the years to come."

    Since most domestic brand audio can't break through the high-end, they have to concentrate on attacking the low-end market. Coupled with the lack of a strong national brand for mid- and low-end audio, this has provided opportunities for some companies that manufacture cheap and low-end audio. Some have no imperfect management system at all, let alone the ability to develop science and technology, so they can only copy other people's products into the market: the cost of the audio assembled with inferior materials is generally only about 100 yuan, which can be entered at a very low price. In the market, there is even a phenomenon that a seven-piece home theater sells for only a few hundred yuan. However, many consumers lack audio knowledge, and the history of purchasing products depends on the price, so they use high-quality materials, spend a long time in design, sound calibration, and spend a lot of money to decorate the exhibition hall and audition room. Domestic famous brands can only see With a large amount of market share grabbed by low-end goods. What's worse is that the fake and shoddy products not only grab the market share of regular domestic audio brands, but also endanger the reputation of domestic audio in the hearts of consumers.

    "The Chinese market now accounts for less than half of Swans' global sales. The unhealthy competitive environment and many competitors who do not use conventional means to compete have brought difficulties to Swans in developing the Chinese market."

    Swan went abroad in 1993. Over the years, it has not only recruited many well-known foreign audio industry technical workers, but also brought famous foreign audio companies such as SWANS under its banner. This is the reason HiVi deserves the envy of the industry. "But our real legality is our core technology. We can prove to the world that we are not only the most perfect ribbon treble, but we will also have technology that will never age." Yao Hongbo said.

Professional audio begins to bow its noble head

    According to a survey, the most prosperous stereos in China are some high-tech small stereos that are "personalized, modern, small and powerful, and super shocking". Due to the high price of professional audio, which can easily cost tens of thousands of yuan, most consumers regard it as a "luxury" and "investment", and it is difficult to popularize it in the homes of ordinary people. At the same time, professional audio is huge and complicated to operate, which also brings inconvenience to ordinary people. Because of this, the market of small audio is showing a thriving scene.

    The good profit prospects of the audio market have also attracted some "outsiders" to invade. Many home appliance companies that rely on capital have long been eyeing this cake and sharpening their knives.

    "Actually, making audio is not enough to have capital. Audio is something that requires time and cultural precipitation to be carefully tempered. Without its own core technology and culture, it is impossible to create good audio." Yao Hongbo Identifying blind investors will bring irrational factors to the entire market. Especially some home appliance companies, due to lack of understanding of this market, focus on the use of some conventional means of home appliance, such as price strategy, such as disorderly cost reduction and lively hype.

    However, the rapid entry of well-capitalized investors into this field will undoubtedly change the ecology here. And the market is always changing.

    The sharp increase of players is bound to make professional audio manufacturers fall into the situation of "bandit wolf" attack. "The very European way in the past is definitely problematic. If we don't go out, our space will become smaller and smaller." - Hivi's current troubles are also the troubles of many pioneers in this industry.

    In fact, in recent years, it can be clearly seen that Swans is developing towards a "people-friendly" line. Such as sending troops to multimedia speakers. "The M-200 multimedia speaker that was originally launched is already super low price for professional speakers, 1,000 yuan, but it is still an 'aristocratic' in multimedia speakers, although computer gamers admit that Swans speakers are very Perfect, with the style of a master, but the price is too high." So Swans launched the M-20W and M-20L successively. While ensuring the consistent high quality of the Swans brand, it took the low-cost route and got a warm response from the market. For the first time, I tasted the good feeling brought by "close to the people".

    "In China, more people will join the ranks of audiophiles, and they will know that sound is something to appreciate and enjoy."

From page 60 of "South Wind Window", No. 5, 2002