Ever wonder what selling car audio is like in other countries? We happened to visit the largest car audio retailer in Finland (population 5 million) and we found both the differences and similarities to the US market of interest.
Finland is sandwiched between Sweden and Russia. There are just about 15 car audio specialists serving the whole country. The leading retailer, AutoStudio, has 3 stores, one which just opened. The chain is owned by the Finnish distributor for Elettromedia, JL Audio and other brands.
Like here, car audio took a nose dive in Finland around 2007. And like here, fewer kids are getting their driver licenses (new licenses are down by 20 percent). Also like here, 12 volt retailers are trying to win an older, wealthier demographic.
The big appliance chains stopped selling car audio in Finland about 5 years ago, so it’s mainly sold by specialists and some car parts stores.
In one difference, the Finnish are adopting the new car specific systems more quickly than here. One reason is because, in many shops, the installer also doubles as the car stereo salesman and so plug and play car specific systems provide a quicker installation alternative.
Matti Puurtinen, Product Manager for distributor Simex, AutoStudio’s parent, doesn’t see the car specific systems cannabilizing traditional big bass systems. “I think it’s two totally different sets of customers. This is a new consumer, not the customer coming in saying, I want better bass. Our dealers are already liking them a lot.”
In the AutoStudio location in Helsinki there are multiple salesmen and installers. Salesman Petteri Airaksinen showed me the Audison /Pioneer/JL Audio system in his Audi A4, with as much pride and intensity as any car audio enthusiast in the US. Maybe more….
Customers will spend up to about $1,200 for subwoofers but amplifier and speaker tickets top out at about $250. Also about 20 percent of the customers are DIYers who install themselves.
AutoStudio sells brands including Hertz, Audison, Focal, Parrot, Pioneer, Alpine, Kenwood, Ground Zero, Digital Designs, JBL, Rainbow and Dynamat. There’s also a European head unit brand called Zenec which comes in car specific versions and has identical buttons to the factory systems.
Despite the cold weather in Finland, remote start is not sold at car audio shops. It’s sold through car repair shops and Finland uses a different system where the cars plug into lamp posts to warm up. (Maybe that got lost in translation, but I believe that is correct).
AutoStudio has sales of about 1.8 million euros or over $2 million dollars per year with its second store only recently opened and the third just opening this month. Each of the 3 stores are about 200 square meters.
The chain also sells home audio, (including Denon and Boston Acoustics) and as car audio has declined, even more rapidly than here, the split is beginning to favor home audio in sales. Finland has suffered from sanctions against Russia, a trade partner for some goods, and so there’s a lot of belt tightening.
Source: CEoutlook
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Matti, How are you my friend? Store looks awesome! Not only are you a great retail merchant but an awesome race car driver!!!!
Good to see you are doing well!
Rob
“There are just about 15 car audio specialists serving the whole country.”
With a poulation of only about 5.5 million, 15 specialists is more than enough.