How Bang&Olufsen's strategy helped the company return to profitability

Published 08/04/2021

The Danish manufacturer of high-quality audiovisual equipment and products has achieved a turnover of around 431 million dollars in the 2021/2021 financial year. This is an increase of around 98 million dollars compared to the previous year's turnover of 333.7 million dollars.

Bang & Olufsen is a luxury audio brand founded in Struer in 1925, Denmark, by Peter Bang and Svend Olufsen, whose commitment and vision remain the foundation of the company.

To return to profitability, the Danish giant opted for a strategy that ranged from cutting costs to optimising its digital strategy, which allowed it to double its online sales and improve its customers' experience.

Kristian Teär, CEO of the company, explains: "Our return to profitability and growth has been driven by reducing our cost base, changing our sales and marketing approach and investing in our digital capabilities and platforms. At the same time, we have strengthened our product portfolio by launching 14 products last year and introducing several collaborations with other luxury brands. To improve the customer experience, we addressed known issues with older products, such as connectivity, with several software updates.
Software upgrades."

Finally, Bang&Olufsen's six most important markets are Germany, Switzerland, the United Kingdom, France, Spain and Denmark.