On February 16, 2021, Sennheiser, a well-known German audio brand, announced on its official website that it will independently reposition its business units, and will focus on the “professional audio” field in the future, and is looking for a strong partner To invest in its consumer business.
At present, Sennheiser’s business is mainly divided into two parts, the professional market and the consumer market. It is divided into four specific business departments: Pro Audio, Business Communications, Neumann and Consumer Electronics.
Sennheiser co-CEO Daniel Sennheiser said, “We believe that these areas have huge growth potential. At the same time, they also have different customer groups, customer needs, product life cycles and market dynamics. In order to be able to maximize To tap the market potential of each department, we concentrate our resources on the three businesses of the professional department. At the same time, we are looking for a strong partner to invest in our consumer business. Sennheiser is also about to start a dialogue with potential partners. .”
Daniel Sennheiser mentioned in the article that the earphone market and Soundbar speakers are two businesses with obvious growth potential in consumer electronics, especially the true wireless earphone market, despite the great competitive pressure. Sennheiser products are known for the best sound quality and unique listening experience. These advantages Sennheiser hopes to build together with future partners. In the future, Sennheiser will focus on the development of the professional audio field, and plans to make independent investments in its sound quality, market share, and popularity. In particular, the business communications market provides important growth opportunities.
The two Sennheiser brothers pointed out in an interview with a German media that Sennheiser is now exploring selling its consumer business for many reasons. First, true wireless headphones are a very popular audio hardware. Although Sennheiser’s sales in 2019 set a record (393 million euros, 52% of its sales in 2019), it ended up after tax and interest. The aspect is slightly negative.
The second is that the sales of headphones were not as good as expected. Daniel Sennheiser said last summer that “competitive pressure has increased significantly” and his profit margins were “under pressure.” The company is also laying off 650 employees worldwide and currently employs approximately 2,800 people.
The Sennheiser brothers said in an interview, “All choices are open”, “It is very important for us to make all business areas stronger through adjustments.”