(China Daily) French audio technology company Devialet will ramp up its investment in China and plans to open additional brick-and-mortar stores in more second-tier cities in an attempt to tap the immense consumption potential of the country's younger generation, said a top executive.
"China is absolutely an essential market for Devialet. Only four months after we opened our first pop-up store on the Chinese mainland in 2019, the area became our second-largest market after France," said Franck Lebouchard, CEO of Devialet, adding that the portable hi-fi speaker market is growing rapidly, especially in China.
Lebouchard highlighted the significance of the Asian market — especially China — for Devialet, which offers a wide range of acoustic products, such as speakers, amplifiers and wireless earbuds. It is noteworthy that China boasts a rising demographic of young consumers, who are dynamic and brand-savvy, and they are looking for the best in every domain, such as bold design and outstanding acoustic quality, he added.
He said young shoppers, especially Generation Z — people born between the mid-1990s and the early 2010s — have become the mainstream consumers in high-end product categories.
Despite the challenges posed by the COVID-19 pandemic, Devialet is currently seeing global double-digit annual growth, including in China through all channels. "In the past two years, we have opened brand stores in more cities, especially in first- and second-tier cities, like Wuhan, Shenzhen and Chengdu, with the total number of offline stores reaching 10 on the Chinese mainland," he said.
He added that Chinese consumers have an increasing demand for portable Bluetooth speakers along with advances in technology, consumption upgrade and rising popularity of outdoor activities like parties and camping.
"We will continue to increase investment to deliver best-in-class experience for Chinese consumers," Lebouchard said. Apart from accelerating its layout in offline stores, Devialet has established flagship stores on Chinese e-commerce platforms such as Tmall and JD, to bring more convenient options to consumers.
Data from market consultancy Runto showed sales of smart speakers in China reached 26.31 million units in 2022, down 28 percent year-on-year. The figure is expected to amount to 27.15 million units this year, a slight increase of 3 percent compared with the previous year.
Lebouchard said both high-end speakers including portable audio hi-fi speakers and wireless earbud markets are extremely competitive, including in China, where Devialet has numerous brands and products with wide price ranges, adding that technological innovation has been the key to the success of products to date.
The company attaches great importance to fast-growing short video platforms, and has launched a brand purchasing channel on Douyin. Looking ahead, Devialet will continue to explore diverse content that is tailor-made for the platform and resonates with its users, he added. It has also inked a partnership with Chinese tech company Huawei Technologies Co for smart speakers.
As for the smart speaker market, the challenge is to bring noticeable improvements and innovation with a minimal increase in production costs, said Jason Low, research manager for Canalys, a global technology market consultancy.
"The smart assistant ecosystem needs to be supported by third-party developers, hardware vendors and service providers. It is crucial for ecosystem partners to pay close attention to what platform vendors achieve, while having a keen sense for uncovering new uses as users shift habits," Low said.
According to global market consultancy International Data Corp, global shipments of smart home devices are expected to decline 2.6 percent in 2022 to 874 million units with smart speakers and video entertainment devices such as TV and streaming devices facing the brunt of the decline.
Though the global market is forecast to return to growth in 2023, such growth will remain relatively low at 4.6 percent with most of it coming from emerging markets like China, said IDC.
Source: By Fan Feifei | China Daily | Updated: 2023-02-21 08:58
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