In fact, it’s not stores that are dying, but the middle class—and, in turn, the businesses that serve that once-great cohort and its neighborhoods." “Let our rigorous testing and reviews be your guidelines to A/V equipment – not marketing slogans”. Audio-video may be succumbing to similar market forces as retailers in general. Paul Jacobs and the Klipsch team have done an excellent job in developing high-end, premium audio solutions, while expanding distribution and partnerships. Maybe, when I receive it, I won't open the carton, and I'll either sell it off or give it away. By the way, undoubtedly, some of you have large, acoustically treated home theater rooms with beautifully designed interiors, projectors, screens, all set up by professional home theater installers. Update your browser to view this website correctly. The company has reached an agreement with Klipsch owner, Voxx International Corp to replace Onkyo USA. © 2020 TWICE is part of Future plc, an international media group and leading digital publisher. In theory, nothing really changes for customers and dealers, except that instead of Onkyo USA they’ll get product from the company that owns Klipsch. As for whether or not the traditional home audio market is actually shrinking, or merely changing. I truly hope the company isn't going anywhere soon. Update my browser now, Home - Scott Galloway, The Four. The sale would have provided Sound United with Onkyo's own respected properties that expanded with its purchase of Pioneer in 2015. The COVID-19 crisis has been difficult for us all, but one area of the economy that's been particularly hard hit is retail sales. But Galloway writes: "The truth is that the death of physical stores has been vastly overstated. He's a big hockey fan as you'd expect from a Canadian. Onkyo remains family-owned, with the Ohtsuki family still the majority shareholder with a 26% stake in the company. As an Onkyo fan, I'm rooting for them. The latest move positions Klipsch Group to offer a vast and complete audio solutions portfolio in the Americas, while continuing to deliver world-class service to its channel partners and consumers alike. "We keep hearing how the specialty audio industry is shrinking as Gen Z'ers embrace portability and streaming as their de facto standard for AV consumption. A call to Onkyo USA's customer service line indicated the number is no longer in service. Published: July 31, 2020 ⋅ Updated: August 3, 2020. Regardless of the company's future direction, Onkyo remains one of the most reliable brands in the mid-tier home A/V market, but the industry itself is changing rapidly. Confused about what AV Gear to buy or how to set it up? Surely, having a "killer sound system" in your living-room will always have an allure to a viable niche market. Copyright © 1998–2020 Audioholics, LLC. mega-audio-conglomerate-making sale only got as far as a non-binding term sheet, Sound United Terminates Acquisition of Onkyo & Pioneer. Onkyo is one of Japan's most venerable audio companies that's been in business since 1946 and recently celebrated its 70th anniversary in 2016. All Rights Reserved. I can dig it. Wayde is a tech-writer and content marketing consultant in Canada s tech hub Waterloo, Ontario and Editorialist for Audioholics.com. Join our Exclusive Audioholics E-Book Membership Program! In the last decade, we've seen consumer audio-video technology getting smaller, more mobile and wireless. 11 Trading Company – New Distributor of Onkyo With this new restructuring, Voxx says there will be two new divisions under the Premium Audio Company, LLC (PAC). But is Onkyo's shedding of commitments a result of a shrinking market for traditional household hi-fi systems? In his book, The Four (Apple, Amazon, Facebook and Google), Marketing guru and NYU Prof. Scott Galloway writes of similar modernization-pain occurring in the retail landscape. By not opening the carton, it will be “New”. Coronavirus COVID-19: Will it Tank the Audio Industry? Meanwhile, the largest growth area in the modern home A/V market explicitly serves luxury consumers with voice or wireless network-controlled home automation with multi-zone audio. Distribution will run through a newly created subsidiary, 11 Trading Company, LLC, and will include products ranging from AV receivers, HiFi equipment, mini systems, smart speakers, turntables, sound bars, home theater systems, optical disc players and more, broadening the Company’s portfolio to include a diverse mix of audio products. Onkyo U.S.A. Closed Down Sausto went on to tell dealers that OUSA sold all of their remaining parts and products to the new distributor, 11 Trading Company, LLC (11 TC) – a new entity set up by Voxx under their Klipsch subsidiary. Almo Professional A/V, CaptureCast Partner To Equip Integrators for New Era in Distance Learning. Brands that stick to their roots while also embracing the demands for tomorrow will continue to flourish. Klipsch announced it will expand its strategic distribution alliance with Onkyo and Pioneer Corporation, which is 100% owned subsidiary of Onkyo Corporation, by selling and marketing their products in the Americas immediately. Prepare for AV Shipping Delays and Product Shortages Thanks To COVID-19. On an earlier attempt to buy an amp from them (Jan.2019), they ran into problems with customs and had four shipments of Chinese parts and OEM CD players impounded. “We’re excited to expand this strategic partnership from Japan into the Americas and are confident that Klipsch is the ideal partner to drive our business to the next level,” said Jason Sausto, CEO of Onkyo USA Corporation in a statement. I'm not envious or trying to “Keep Up with The Joneses” but my environment is more modest: not a true home theater, but rather. Retailing›Distributors, Distribution effective immediately through newly created subsidiary, 11 Trading Company, LLC, TWICE Staff ⋅ To learn more about Onkyo, Visit www.onkyo.com. Perhaps it's just that middle-ground between the two extremes bottoming out. Over the past month, North American Onkyo dealers were notified of an abrupt distribution change in a “notice of termination” for their agreement with Onkyo USA, the division of Onkyo will no longer be fulfilling orders. The potential mega-audio-conglomerate-making sale only got as far as a non-binding term sheet between the two companies in 2019 before talks were terminated. He reassured dealers that both OPC and 11 TC would honor product warranties. There should always be room in this hobby for solid-quality A/V receivers like those made by Onkyo. Despite growth in the bookends of the retail spectrum, dollar stores and luxury retailers like Apple Stores, boarded-up neighborhood shopping malls and closures of traditional department stores have led many to conclude that traditional retail is being killed off by online shopping. Who wouldn't want fine audio for their own living-room? With uncertainty over whether they could resume manufacturing , I cancelled that order. What do you think this means for the future of Onkyo? Emotiva (claims) to have now shipped the amplifier to me. This alliance with Onkyo and Pioneer is a perfect example of the types of alliances we seek and should help drive growth in our business this year and beyond.". The terminated agreement covers distribution for all brands held by the company including Onkyo, Pioneer, Pioneer Elite and Integra. For its part of the new “strategic distribution alliance”, Voxx has created a dedicated subsidiary called "11 Trading Company LLC" that will handle all ongoing Onkyo/Pioneer orders, warranties, returns and customer support. In decades past young men, the primary demographic for a hi-fi system in the 1960s, were tantalized by fine home audio ads while reading Joe Namath talk about living "good life" in a Playboy Magazine interview. By the company including Onkyo, Pioneer, Pioneer, Integra and Elite has... 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