... that would mean hifi is more akin to the world of watches than I would like it to be.
Hi Germinal,
Yes, High end audio is a luxury industry!!!
We had a discussion about it several years ago, and here's my post about luxury , from an economic perspective:
....
high end audio is a luxury industry. The idea is slowly sinking in. Other than a few handful of us on this site, very few are talking about it. The only one in the high end audio media talking about it is Ken Kessler. Manufacturers just wrap the gear in a pretty package or paint it in Lamborghini red and sell it to make us, audiophiles, feel good. As long as folks who purchase this obtained their money in a legal manner, they should be free to spend it any way they want. And there is nothing wrong with having extra pleasure and joy in our lives.
As to your question of what differentiates successful luxury brands from one’s that no one virtually knows about is based on a lot of behavioral psychology and economics research, and Nobel prizes have been awarded for some of these ideas, so it’s not BS.
High end audio has a big preference component – people get conditioned to a taste over time and they prefer it to something else. Just like someone may prefer gruyere to cheddar, Gucci to Louis Vuitton, someone may prefer Magico or Wilson or a horn speaker, tubes or solid state, vinyl or digital, pcm vs dsd, etc. Guys who argue about preferences that are manufactured by their imagination are f*ing morons.
But assuming the sonic signature of the gear appeals to one’s taste,
best brands have a good story to tell that appeals to the individual. By good story, I mean it's something that emotionally resonates with the buyer or audio fan. For example, simple and unusual marketing claims such as an “electrostatic sound in a box speaker”, “homemade drivers so precise, nothing on the planet can touch them”, etc. Obviously these marketing messages resonate with people who already like the brand or want to believe the marketing. But from an outsider’s perspective, they seem like pure bullsh!t. Box speakers, no matter how advanced, don't sound as open as stats / planars/ omnis.
As for homemade drivers, many people are led to believe by audio writers and fans that "home made drivers" and in-house CNC machines result in better products. In reality, they are better in some cases but not in others. One can easily design a great driver and have someone else manufacture it. Yet our industry has followed the fashion industry to vertically integrate and call it "better quality" product since it's totally controlled.
But one just has to do a cost benefit analysis of finding space, buying machines, managing the shop, training the staff vs. outsourcing this to some one who has done it. Boeing and Airbus are not vertically integrated and have thousands of suppliers, as Adam Smith predicted; otherwise their products would be way too expensive. If NASA can trust third parties, risking money, human lives, and national pride, why can’t high end audio firms? On the contrary, the fashion industry and high end audio get a free ride to pass the mark-ups of in-house manufacturers to consumers, who are led to believe by audio media personalities that they will get better sound that way. Star-struck high end audio guys, who have let their emotions overtake their brain, justify these claims without any critical thought. Lois Vuitton was the first luxury company to vertically integrate in the name of better quality. But this business strategy has also allowed them to raise prices at will
AND pass them on to their customers, who pay up. Luxury practices sometimes trump economic decisions.
Furthermore, the higher the price, the more scarce the item, and the more scarce the item, the more it is desired...
Once brand stories get established, they are embellished by audio reviewers. This appeal to authority figures – the omnipotent individual who really knows what REAL MUSIC sounds like - is one of the strongest marketing methods used by successful companies (and dealers) vs. those that are only able to sell a few units a year to their mother, brother, and brother in-law-audiophile. A New York times critic once confessed that a great many people will believe almost anything that anyone tells them if told with certainty and conviction….
Most of the reviewers are nice guys, but when it comes to choosing their loyalty, so many act like disgusting smegma, and choose the manufacturer over the audio fan. After all, gear is expensive, and one way a reviewer can get a system that costs more than their house for an extended period for free, and write about it before other reviewers, is by echoing the brand stories and improving on them. The best reviewers – who posture as authorities - take the brand story started by manufacturer and load it with emotion. The best of these "audio journalists" write so well that they are able to persuade the fans by casting a spell and getting people believe them how realistic the music will sound using that brand.
Yet high end audio is an experience, and experiences of fine tequilas, string quartets in world class venues, caring deeds, ice cream, and high end audio are rich, complex, multidimensional, and impalpable. Experiences can only be approximately defined by its antecedents and by its relation to other experiences. That’s why most reviewers who never compare are worthless. It’s easy to just proclaim something as “BEST” because some new detail the dude heard tickled his preference. Of course, it is best only in the reviewer’s imagination and contributes to fukc the audio fan culture that we live in, as fans who are interested in purchasing a component are left in the dark, unless they are willing to expend a lot of time and money searching…
Another important consideration is the amount of owners or fans there are. If there is only a small pocket of guys raving about a product in the internet, it does not have the weight of a manufacturer that constantly packs the room at shows or has a whole bunch of raving fans. In a subjective and uncertain hobby as this, having large numbers of fans is proof of success. So the more popular brands get even more popular…
I need to stop here to get some work done. I hope this helps!