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 Focal and Naim merge

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flatearther



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PostSubject: Focal and Naim merge   Fri Aug 19, 2011 12:44 pm

Shocked

read all about it http://www.focal.com/
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greg



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PostSubject: Re: Focal and Naim merge   Fri Aug 19, 2011 2:43 pm

From Focal - "For future success, the key point is that there is no future for a speaker or electronic company alone"....

WTF?
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Timbo



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PostSubject: Re: Focal and Naim merge   Fri Aug 19, 2011 3:07 pm

Is this a thinly disguised take over by Focal? just look at the name, no pun intended, it's not naim and co but Focal and co.
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flatearther



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PostSubject: Re: Focal and Naim merge   Fri Aug 19, 2011 3:21 pm

I wonder what will happen to Naims own Ovatar range of speakers, also what about their typical partnering at shows such as Neat and Kudos speakers, not that Naim care, I do wonder which way the future lies.
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The Boss



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PostSubject: Re: Focal and Naim merge   Fri Aug 19, 2011 5:39 pm

Another nail in the British audio manufactures coffin. Sad
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adam



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PostSubject: Re: Focal and Naim merge   Fri Aug 19, 2011 6:46 pm

I believe today if your are a manufacture of hifi gear you have two choices, you stay very small and cottage industry, such as a single individual or just two or three people, or you go to other other extreme and become multi national and huge, I can't see how you can survive as a medium sized company like Naim, the over heads must be huge, hence I feel you stay small and keep your over heads to a bare minimum to survive or the other end where you have have huge buying power, but this market is controlled by the Japanese majors and the south Koreans like Samsung, I really think it will be middle sized companies that will suffer during these impossible times, my choice would be stay cottage industry and keep your running costs to a bare minimum.

I also feel Naims portfolio was far to large, I would have kept it far more stream lined, even more so in these times of low demand.
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dvv



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PostSubject: Re: Focal and Naim merge   Fri Aug 19, 2011 8:26 pm

I agree with Adam.

Naim was the one in a precarious position here, being too big to be cottage industry, and too small to go global all by itself. It is very likely they couldn't move forward without a significant cash inflow, which Focal could provide. As I read it, it seems to me that despite kind phrases and lip service about "merging", the point is that Naim was bought out by Focal.

Whether this is good or bad news, we have to wait and see. England has lost another sturdy player, one which I happen to respect a lot, but if it's any consolation, Focal is a wholly audio committed company. It could have been worse, like a Chinese manufacturer of washing machines wanting to break into audio, or some such (the sad, sad fate of the Sansui brand).

Not to raise any false hopes, but when the TAG Group bought out McLaren audio, some very new models surfaced rather quickly, and I doubt McLaren could have done it on their own. Unfortunately, that was the beginning of the end of the purely audio era, so the TAG group, headed by Dr Udo Zuker, a Switzerland based purely investment group looking for large and quick profits, pulled out. Don't know who owns McLaren now, but I do know I don't see their ads any more - anywhere.

Like it or not, but our economic reality will dictate the same fate for the remaining small UK companies, such as Rega et al. Too big to be cottage, too small to go global on their own.

What most people don't understand is that the costs of development are very large. My colleague and I spend the last year researching into discrete Darlington power devices, and even a brief overlook of real costs comes out at over 16,000 euros on that alone. Obviously, we feel it shows great promise, because this type of work will drain your coffers in no time, and results are NOT guaranteed. A company like Naim would have done it in half the time, but using three times as many people and incurring at least three times the price, and probably more. True, it would have provided better quality, and the Naimistas of this world would have cared, but they don't seem to be enough of a customer base to support the likes of and Naim any more.
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flatearther



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PostSubject: Re: Focal and Naim merge   Sat Aug 20, 2011 12:23 pm

The general census seems to be that this is the beginning of the end for Naim Sad
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dvv



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PostSubject: Re: Focal and Naim merge   Sat Aug 20, 2011 1:03 pm

flatearther wrote:
The general census seems to be that this is the beginning of the end for Naim Sad


Not necessarily so, but very possible.
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hg



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PostSubject: Re: Focal and Naim merge   Sat Aug 20, 2011 2:09 pm

flatearther wrote:
The general census seems to be that this is the beginning of the end for Naim Sad

Surely the beginning of the end for companies like Linn and Naim happened quite a few years ago. These companies successfully built very strong brands that appealed to a particular group of luxury home audio consumers (i.e. the type of people reading this forum). The strong brand enabled the companies to successfully charge substantial margins but, of course, only to the group of people that bought into the marketing of the brand. To everybody else that did not sign up for the marketing the hardware was far too expensive for what it did. In fact the brand image was probably a bit negative like Bose to audiophiles although not as strong.

A few years ago it became clear that new sales from the segment of the market that were strongly attracted to the Naim and Linn brands was declining. In order to continue as profitable companies products had to be produced that were more in line with what people want to buy today. The problem is that the Naim and Linn brands don't mean much outside the shrinking market segment they have traditionally sold into hence they will not be able to use the brand to maintain the margins and numbers they have been used to. Not only that, the marketing hooks they have successfully employed in the past and that have become associated with their brands are unlikely to transfer in quite the same way to the more modern computer/integrated type hardware. Given the way modern consumer equipment is designed I am not sure the R&D costs are the burden that people here seem to believe.

When the market is being squeezed established companies have to do something to keep going. The combination of Naim and Focal seems reasonable in that they are similar companies with the strengths in their product ranges complementing more than overlapping.
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greg



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PostSubject: Re: Focal and Naim merge   Sat Aug 20, 2011 2:33 pm

hg wrote:

In order to continue as profitable companies products had to be produced that were more in line with what people want to buy today.


People wanted to buy the products, people didn't want to pay the prices being offered, no point in having a product line no one can afford. They forgot their traditional fan base and went chasing rainbows instead.
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hg



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PostSubject: Re: Focal and Naim merge   Sat Aug 20, 2011 5:02 pm

greg wrote:
hg wrote:

In order to continue as profitable companies products had to be produced that were more in line with what people want to buy today.


People wanted to buy the products, people didn't want to pay the prices being offered, no point in having a product line no one can afford. They forgot their traditional fan base and went chasing rainbows instead.

Not sure I really agree with this. As the Linn and Naim brands became stronger the margins were increased which is pretty much the whole point of developing a strong luxury goods brand. If they were to drop prices this may help shift boxes for a short while to those that currently desire the products but the strength of the brand would rapidly decline. It may work if the company is moving into a cheaper, high volume, lower margin sector but this is the opposite of what companies normally do to survive when the market is squeezed.

Linn and Naim have never had a tradition of value for money unlike say NAD. People bought Linn and Naim because they were enthusiastic about them. This enthusiasm was generated by good marketing.

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greg



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PostSubject: Re: Focal and Naim merge   Sat Aug 20, 2011 5:54 pm

It didn't work though did it this great marketing strategy, buyers were not prepared to pay these prices, only a very few, other moved to better vaalue brands, just look at how Linn nearly went to the wall, and now how this merger, a thinly disguised take over, clearly it didn't work.
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dvv



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PostSubject: Re: Focal and Naim merge   Sat Aug 20, 2011 6:11 pm

Hg has a point.

In my view, both companies, and of the two, Naim more than Linn, appear as very old fashoned to the modern public. For this, I blame their stodgy marketing and (exterior) design, they simply never noticed time was first passing, and bypassing them.

Nevertheless, I am hoping hard Naim will survive alongside Focal, and I agree with Hg, they are more complementary than competitive.
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Joker



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PostSubject: Re: Focal and Naim merge   Sat Aug 20, 2011 6:20 pm

Not a clue, give buyers what they want at the price they want to pay.
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