© Devialet
The future is looking considerably bleak at Devialet. The French audio flagship has just filed for conciliation proceedings with the Paris commercial court. In concrete terms, the brand hopes to raise funds to survive.
According to information from the media Challenges (article available in source), the Parisian firm has not managed to get its accounts back into the black, despite attempts at diversification in recent years. Today, the brand's most “popular” model, the Phantom speaker only sells a few copies. And for good reason, you have to spend more than 1000 euros to afford this very (too ?) high-end product.
With such a positioning, the brand can only reach a very small part of the population. At the same time, it must offer an exceptional product, both in terms of design and audio quality. And this is probably where Devialet encounters its biggest pitfall.
The numerous independent tests carried out on the brand's speakers recognize the quality of the device's design. But there is nothing exceptional about these products that justifies such a high price. So to survive, Devialet has changed its strategy.
200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000Devialet must urgently reinvent itself
The brand has formed new partnerships, with Huawei and Free, to make itself known to the general public. It also entered the highly competitive wireless headphone market, again without much commercial success.
Today, in great financial difficulty, the brand is close to implosion. Its last all-out seems to be the conciliation procedure launched with the Paris commercial court in the middle of summer. According to information from Challenge, this new stage in the life of the company could last 4 to 5 months.
At the end of this exercise, new investors could join the board of the company, with fresh money. Because Devialet, although in great difficulty, still seems to have potential ? First, the brand has a brand image like few technology companies.
Devialet : a risky but winning bet ?
It embodies French luxury throughout the world. In addition, it has just completed a positive 2023 financial year, showing that profitability is possible in the long term. However, many points will have to be reviewed, starting with marketing, which is far too costly according to several sources within the company.
Devialet could also open up to new markets, such as China. The brand founded in 2007 does not want to die without a fight in any case. She is reportedly preparing a new launch for this fall.
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