Sennheiser turns 70 this year, a milestone which coincides with the 25th birthday of Sennheiser UK. MD Paul Whiting looks back over the period at some of the many technological advances that company has made. Not only has he seen developments in the way headphones are manufactured, but he has also been witness to industry-wide trends, such as the massive uptake of smartphones which has affected the way people listen and what they expect from a headphone.
I started my career at Sennheiser about forty years ago, starting out as an engineer with a previous UK distributor before moving into a role spanning sales, marketing and communications, where I spent the next 37 years of my career. It was while I was working in this role, that I was lucky enough to be the founding employee of the UK arm of Sennheiser on 5 August 1990. This wide remit has meant that I have been particularly aware of the changing face of the consumer electronics landscape. As I look back over 25 years of Sennheiser delivering audio excellence to the UK, I have also been prompted to look at the evolving headphone retail scene.
Paul Whiting , MD of Sennheiser UK: “The key is in sustaining brand relationships in order to open doors to other partnerships, ensuring that the customer is always at the heart of any decision.”
To me, there is no question of what the biggest catalyst for change has been – the most impactful has been the internet. It has transformed the landscape and the way people purchase. Keeping up and adapting Sennheiser’s approach to that shift was a real challenge, but one that was vital in order to keep up with consumer demand and competitor brands.
Customer experience
Online is important, however, bricks and mortar continues to be vital for selling our products where customers need to experience the product prior to purchase. With headphones, people still want to go out and see, touch and try on products.
In order to fulfil that need, we work with our retailers to ensure customers receive a consistently high-end experience, ensuring they are properly trained, able to give demonstrations and supply expert knowledge when required. We want to make sure that the quality of the customer service meets the quality of our Sennheiser products.
An example of this is our Club Orpheus, where only the finest, top-end audio dealers who can meet certain standards are allowed to access and sell some of our higher end Sennheiser products. In return, the retailers are able to offer added extras like extended warrantees and events for top customers, such as listening evenings, where they can try out Sennheiser kit whilst enjoying drinks and nibbles. It is this added level of customer attention that I believe exemplifies why online will never fully replace in store sales.
That being said, online sales are here to stay, and while they might not play the biggest part for Sennheiser, it is vital to our strategy to continually adapt and stay up to date with how consumers are purchasing. Retailers and suppliers will need to work together to develop a model that complements the online presence rather than working against it.
Developments
There are some retailers that have been loyal to us from the off, such as Seven Oaks, Dixons and John Lewis, to name a few; it is these retailers who have an online presence too, so are able to offer an offline experience to enrich the online.
When it comes to the independent market, we have seen this change since we started out in 1990. Whereas in the past, the landscape has been dominated by independent stores, many now work in a new way. While some have grown stronger, others have disappeared, but brands, need to make sure they work efficiently with these independent stores to help offer a compelling package for customers.
We have seen steady growth over the years at Sennheiser, with more than a two per cent increase on last year’s revenue. We began manufacturing microphones at Sennheiser in Germany in 1945, before going on to develop amplifiers from 1950. In 1968, we brought out the world’s first open headphones; since then we have continued to expand the range of products on offer as consumer needs evolved. In 1991 we made a successful bid to create the world’s greatest headphones with Orpheus, while 1995 saw Sennheiser’s first wireless headphones.
Market drivers
One thing that we have seen over the years that headphones follow consumer trends: smartphones continue to infiltrate society, indeed 66 per cent of the UK population now owns a smartphone, and so it is little surprise that there has been a trend across the board for more headphones including an in-line microphone.
The industry has also seen a huge 128 per cent increase in Bluetooth headphone purchases, year on year, with several brands bringing out Bluetooth versions of their hero models. At Sennheiser it is no different; we continue to add increasing numbers of Bluetooth headsets to our ranges.
Despite a large international presence, a large portion of the Sennheiser work force remains in the founding country, with 51 per cent of employees based in Germany – indeed I was the first non-German speaking member of the executive team. I think there is big opportunity in the UK, which I see as a mature market which plenty of further potential. In order to harness this, it is vital to bring new products to market and adapt to the changing needs of consumers, through finding new solutions and technologies. It is my belief that if you look after customers and people, business will happen naturally.
As we celebrate Sennheiser’s 70th birthday this year, it is this level of adeptness and agility that I believe will bring success. The key is in sustaining brand relationships in order to open doors to other partnerships, ensuring that the customer is always at the heart of any decision.
Paul Whiting , MD of Sennheiser UK: “The key is in sustaining brand relationships in order to open doors to other partnerships, ensuring that the customer is always at the heart of any decision.”
Sennheiser highlights
Founded
1945 as “Laboratorium Wennebostel” by Prof. Dr. Fritz Sennheiser
Products
Microphones, headphones, wired microphone and monitoring systems, conference and information technology, products for assistive listening, and aviation headsets
Turnover
€634.8 million (2014)
2014 Turnover by region:
Americas: €153.0 million
EMEA: €349.2 million
APAC: €132.6 million
2014 Turnover by division, in percent
Consumer Division: €322.0 million (50.7%)
Professional Systems: €312.8 million (49.3%)
Number of employees
2,700 at the end of 2014. With an average of 2,600 people worldwide, (51%) in Germany and (49%) abroad.
Manufacturing plants
Germany (microphones, headphones, wireless microphone and monitoring systems, conference and information systems, aviation headsets)
Ireland (headphones, audiology products, monitor loudspeakers, integrated systems products)
USA (wireless microphone and monitoring systems)
Sales subsidiaries
France, Great Britain, Belgium, the Netherlands, Switzerland and Liechtenstein, Germany, Denmark (Nordic), Russia, Hong Kong, India, Singapore, Japan, China, Australia, New Zealand, Canada, Mexico, and the USA
Chairman of the Supervisory Board
Dr. Frank Heinricht
