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SUSTAINABLE Hi-Fi BUSINESS MODEL

Audiolab 6000A Amplifier

msagar

Active Member
Joined
Dec 12, 2011
Messages
183
Points
28
Location
Hyderabad
Please share your thoughts / recommendations for a SUSTAINABLE Hi-Fi BUSINESS in Hyderabad.
 

alpha1

Active Member
Joined
Apr 30, 2009
Messages
461
Points
28
Location
Pune
Only sustainable if you do commercial establishments like auditoriums, conference halls, PA system, concerts, pubs, etc
 

soulforged

Well-Known Member
Joined
Jul 3, 2009
Messages
1,442
Points
83
Location
Bangalore
For retail in India, IMO, you'll have to focus on mass-market home theater. This is where you'll get your volumes from.
 

elangoas

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Joined
Nov 4, 2009
Messages
7,423
Points
113
Location
Madrasapattinam
For retail in India, IMO, you'll have to focus on mass-market home theater. This is where you'll get your volumes from.
Very precisely said.. I would prefer a store serving 10 customer whose budget is low than serving for one customer with a good budget...
 

Fantastic

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Joined
Jun 1, 2010
Messages
866
Points
93
Location
Third Rock
A few years ago when this topic came up on other forums the 'retired' experts from the audio businesses said there are much easier and better ways to make money. They recommended that it was better not to start something new if nothing existed earlier. However all suggestions must be taken with a pinch of salt. At least one out of a hundred should be successful ! It could be one of us !;)

I've seen at least 10 people fold up or are just coasting along over the last 14 years. I'd say that if you are 'really' interested then you should do your homework well and do what you want to. A large number of successful businesses were started against others recommendation ( not to ) but they worked out well....VERY well. Look at Infosys ! The CEO even had to sell away his wife's jewellery to keep it afloat for some time. So, the best decision is yours .....after you have researched it well !
Wish you all the best. :)
 

nshankar

Active Member
Joined
May 30, 2010
Messages
175
Points
28
Location
Muscat / Bangalore
For any business to sustain, they need to make money. Money can be made from volume or margin. Choosing the right mix is the key.
In other words, you need to have an umbrella of products / brands, all the way from common connectors and cables to high end stuff.
My 2p.
 

reignofchaos

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Joined
May 12, 2008
Messages
2,530
Points
113
Location
Bangalore
Well the easy way is to build a high margin business with high end audio as a side project of the same - a simple way would be to build a really good cafe/restaurant with a high end audio lounge attached to it. Maybe put one of the systems in the cafe and let the patrons listen. Throw in a good record player to get folks even more curious. That way the patrons who come for coffee might get curious about at least what is playing the nice music. Once the person is in the door and interested, it is much more easy to make a sale.
 

nmursekar

Member
Joined
Mar 7, 2011
Messages
81
Points
8
Location
pune
Being a reseller of a perticular brand (which is not being sold by others) in your city can be a way out to establish your business.
 

nmursekar

Member
Joined
Mar 7, 2011
Messages
81
Points
8
Location
pune
Well the easy way is to build a high margin business with high end audio as a side project of the same - a simple way would be to build a really good cafe/restaurant with a high end audio lounge attached to it. Maybe put one of the systems in the cafe and let the patrons listen. Throw in a good record player to get folks even more curious. That way the patrons who come for coffee might get curious about at least what is playing the nice music. Once the person is in the door and interested, it is much more easy to make a sale.
Putting up high end setup in a cafe or lounge bar is a good idea in my opinion.
people get to see and listen to the right stuff in a relaxed mood. Customer Conversion can be achieved thus.
 

reubensm

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Joined
May 26, 2010
Messages
4,707
Points
113
Location
Trivandrum, India
Any foray into the Hi-fi business in India does not quite make sense. For every "new" piece of equipment sold, there are 100s of pieces of equipment doing the rounds in the pre-used market. There are a lot of guys out there dealing in pre-used stuff and have a broad client base. The common business model is to pose as an enthusiast on forums, in the media, in local clubs, social circles, etc and then push one's wares across. There are the small time dealers too. The key approach taken by enthusiasts (since they upgrade all the time) is to keep entry costs as low as possible. A low entry results in an easy disposal. For example, would you buy a NAD integrated from a seller who purchased it new from an Indian dealer and who is asking for 45k or would you buy that same amp from a guy who has probably imported it from Hong Kong, for 15k? These are all deterrents for someone wishing to enter the Hi-Fi business in India. And, to add to that, there are the zillions of IT and BPO professionals who travel to the western/eastern world and can bring back stuff with them. The final nail in the coffin is international shipping for items sold on sites like ebay.de. In my opinion, not a great idea to enter the business yet in India.
 

nmursekar

Member
Joined
Mar 7, 2011
Messages
81
Points
8
Location
pune
Sustainability of a business model in HiFi market in India totally depends on the product based set up against Stocks holding. For running business i think entry level system set ups will bring in more customers. for selling very high end stuff you have to have a thorough knowledge base plus a personal touch and raport building skills with customers/clients with hell lot of patience to convince him properly. For eg. The audio vision guys though havig a huge setup in mumbai since last more than 20 years, they are also equally struggling daily to convince the clients. But if you observe the business of MZ audio Mumbai (Marantz distributors), people find them from corners of india and approach them for seeking the products. Now here, lacking of thorough knowledge base also making a good business.im not comparing but there are these two prominent marketing strategies one can study. In my opinion one will have to struggle a lot to establish his own format. Also it is right time to study market trends coz we may have many outlets in the stream in near future as foreign direct investments (FDR) is likely tobe heppening by this Govt.
 

keith_correa

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Joined
Jan 17, 2009
Messages
2,948
Points
113
Location
Mumbai
If I were you, I would focus more on the mass market [think home theatre] and not cater to the so called "hi-fi" in the truest sense. Denon, Onkyo et al. build great and inexpensive [relatively] equipment and that is where the market is. There are inexpensive Chinese made but excellent equipment available too - if you can import these and provide support...

Don't worry too much about the people who travel outside India and can bring back equipment at cheaper prices and hence can diminish your market - these people have been in existence for the past 15-20 years at least and yet there are hi-fi shops sprouting all over. Yet TV's sell - don't they? Ditto for hi-fi.

And THAT was just my 2 paise worth.
 

Thad E Ginathom

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Joined
Oct 11, 2009
Messages
6,381
Points
113
Location
Chennai
Putting up high end setup in a cafe or lounge bar is a good idea in my opinion.
It's a good idea in the same way that I want to run a sari shop, because, hey, how can selling beautiful things to beautiful women be anything but a success?* :licklips:

Catering of some description is one of the biggest areas that amateur would-be business people flock to, and fail at. Adding on such a difficult-to-succeed-at business to an already hard to sustain shop... not such a good idea. Sorry.




*The answer is that it couldn't possibly fail unless I also needed to make, or at least not loose, money from it :cool:
 

shkumar4963

New Member
Joined
Oct 29, 2014
Messages
156
Points
0
Location
San Diego
The equipment quality (speakers amps etc) have improved significantly during the last few years that has narrowed the gap between high end and mid price quality. Find no name brand good quality equipment and demo them again name brand equipment in a believable comparison set up. The value you will add will be to select near high quality equipment and educate the customers with demo and reviews. During demo do not disclose equipment name or buyers will go price match on Internet and then ask their friend to bring it from US.
 

Srinath_seshadri

New Member
Joined
Dec 1, 2012
Messages
384
Points
0
Location
Charlotte NC, USA
I can get good high end used stuff cheap in US.
I also am good at the internals of these, and have a small running database of what can be converted to 230v operation.
I can get them and convert it and send it to anyone who wants it. Except, you cant say "I want a denon x300" - cos the denon x300 here may not have the 230 switch. I wont know till I buy and open it. They may make a 230 input version with a different power trafo than the 115v.

Speakers dont need a conversion at all, but the components have to be taken out and shipped, else it will be too expensive.
I have a big circle of audio collector friends, I trade and swap, and will end up with everything eventually.
Anyway, I have a lot of these, I usually buy and sell over 100 a year in my small town.
Anyway I'd like to talk to someone who wants to set up a business like this. I think it should be feasible.

Thanks.
srinath.
 

sidvee

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Joined
May 14, 2007
Messages
2,985
Points
113
Location
Hyderabad
I can get good high end used stuff cheap in US.
I also am good at the internals of these, and have a small running database of what can be converted to 230v operation.
I can get them and convert it and send it to anyone who wants it. Except, you cant say "I want a denon x300" - cos the denon x300 here may not have the 230 switch. I wont know till I buy and open it. They may make a 230 input version with a different power trafo than the 115v.

Speakers dont need a conversion at all, but the components have to be taken out and shipped, else it will be too expensive.
I have a big circle of audio collector friends, I trade and swap, and will end up with everything eventually.
Anyway, I have a lot of these, I usually buy and sell over 100 a year in my small town.
Anyway I'd like to talk to someone who wants to set up a business like this. I think it should be feasible.

Thanks.
srinath.
AFAIK importing used electronics into India is not allowed by customs. If they know it is a used item they can sieze the shipment. Please note this does not apply to individuals carrying equipment in their checked or carry on luggage (at-least I have not had issues with that) - only to shipments via courier/shipment packages sent on a regular basis. If any one wants to start a business with this model, it is better they work with a Import consultant / Clearing agent, first to check its feasability and legality. I work with a few of them here in Hyderabd & Chennai for my business and they told me this.
Cheers,
Sid
 
Last edited:

rikhav

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Joined
Mar 27, 2008
Messages
2,574
Points
113
Even fm prem clearly stated in one of his threads that import of used electronics is strictly banned in india under anti dumping law

What we get in your baggage is also not allowed but we just get away with it because thankfully customs don't bother checking each and every bag for such things

So when one is talking about whole consignment of used electronics , I don't think it will be easy or even possible
 

reignofchaos

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Joined
May 12, 2008
Messages
2,530
Points
113
Location
Bangalore
The equipment quality (speakers amps etc) have improved significantly during the last few years that has narrowed the gap between high end and mid price quality. Find no name brand good quality equipment and demo them again name brand equipment in a believable comparison set up. The value you will add will be to select near high quality equipment and educate the customers with demo and reviews. During demo do not disclose equipment name or buyers will go price match on Internet and then ask their friend to bring it from US.
Are you kidding? This is the easiest way to piss a prospective buyer off :lol:. You'd be running a business not a proof of concept for DBT.
 
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