High-End Audio and the Absence from the Expanded Luxury Market

Luxury Brands Everywhere

One needs to look no further than the escalating prices of used Porsche 911s, the line-ups at Louis Vuitton Boutiques, and the scarcity of Rolex watches to understand that luxury items have become more popular than ever.  When I was attending grade school in the 1980s, there probably wasn’t a single pupil in the entire facility that could name a fashion house.  Today, children at this age not only have awareness, but some may also covet a pair of Gucci slides after compiling their saving from allowances.  This rise in the power and popularity of luxury items can be largely attributed to increasing global wealth and the power of social media.  For those that are inclined to demonstrate their acquisitions and obtain the wows and jealousy from others thereafter, this is no longer limited to close friends, neighbours, and family in your immediate proximity.  You can now share an image of your bottle of John Walker King George V to work colleagues, acquaintances, and friends from your remote past over the magic of the internet.

Where is Audio?

Despite the rise in almost all segments of the luxury market, the available evidence suggests a decline in the business of high-end audio.  For the many with limited awareness, the high-end audio industry targets a segment of the population that have been granted the unfortunate term of ‘audiophiles’.  These individuals consume products from small manufacturers with exceedingly low volumes.  The products involve heroic levels of engineering and build-quality (with commensurate prices) for large and complex systems designed to be situated in dedicated listening spaces. The overall objective is the re-creation of musical events in their homes with the greatest levels of realism and accuracy.  As noted, these manufacturers and products remain largely unknown in popular culture.  If one were to state that the made a successful exit from a tech company and planned to celebrate with the purchase of a $375k McLaren of $150k Vacheron Constantin, there would be little surprise.  If that same individual described spending their windfall on a $90k low power SET amplifier, we would fear for the mental well being. 

This begs the question - why has high-end audio been left behind from the expanded luxury market? I would suggest that the reasons (much like everything else) are multifactorial:

There is no status associated with high-end audio products. 

While it would be convenient and perhaps righteous to believe that individuals are spending their wealth on luxury items to enjoy the visual and tactile rewards that they derive at a personal level, it can be speculated that some (much) of this spending is motivated by status.  Regardless of discretionary spending levels, only the select few can be placed on the waiting list for a Hermes Birkin bag.  Limited runs of hypercars exceeding $2M are already spoken for prior to production.  While high-end audio customers are subject to limited quantities and extended waiting times (occasionally exceeding a year for complex products), orders are generally accommodated if the funds are produced.  Furthermore, owning the finest turntable/tonearm/cartridge combination is light years away from gaining entry into the Yacht Club de Monaco on the status meter.   

Requisite knowledge is required to build a high-end audio system.

A high-end audio system is a complex interaction of electronic components, cables, loudspeakers, AC power, and most importantly, the room(!).  Spending large sums of money on higher-priced components will not generate the desired result (excellent sound) if the system is not synergistic or set up properly.  In fact, high-end audio products are so revealing that a poorly set up system will sound worse than the shrink-wrapped free earbuds that they distribute in economy class.  What do I mean by synergy?  At a basic level, some amplifiers are not powerful enough to drive certain speakers.  At a complex level, some components inexplicably do not ‘match’ well with other components.   Delving more deeply into the room component, speakers need to be calibrated with the room to obtain optimal sound.  This often requires placing the speaker two to four feet away from the back wall and some cases up to seven feet to avoid room interactions.  For highly revealing speakers, every inch makes a discernable difference.  Even experienced audiophiles often neglect the importance of the room when building their system.  This level of knowledge and commitment may deter luxury consumers from pursuing a high-end audio system.       

Luxury homes are often not designed to accommodate audio systems. 

If you are reading this article, there is no doubt that you’ve probably seen countless virtual tours of luxury homes either on social media or from reality realty shows (reality realty doesn’t read well but I’m going to leave it in here). Every room and space is accounted for with imported furniture and meticulous finishings.  Common themes include a chef’s kitchen, his and her walk-in closets, a large marble tub placed directly in front of a window for some bizarre reason, and, you guessed it, a home theater.  To accentuate your movie-watching experience, these rooms will feature stadium seating with reclining chairs, the inevitable cup holders, perhaps a popcorn maker, and all electronics and speakers are hidden from view and integrated into the wall.  While this environment is great for experiencing the full visceral impact of a gun fight or gas explosion, they cannot deliver music in nearly the same way as a well executed audio system.

Okay, we understand, luxury consumers do not care about high-end audio.  Why is this important?  

Despite the slow death of CD sales and physical media in general, music is still important to us.  We may not consume music through top-to-bottom albums as we did in previous decades, but we are still attending concerts, creating playlists, and streaming music during our workouts or commutes or to simply relax.  Many of us remain passionate about listening to music and remain current with new releases, have a large online library of classic albums, or both.  For those who consider themselves a music enthusiast, listening to a high-end audio system can be a transcendent experience (this is why I named my audio consulting business ‘transcendence’).  A good system can create the illusion of instruments and performers present in the room with you.  Background details that were previously hidden in a compressed system are now exposed and adding rhythm and meaning of the music.  Propulsive bass and explosive dynamics are creating elements of excitement and drive that were not experienced during previous listens.  Stated differently, music communicates to us at a much deeper level when heard with clarity and focus.  In contrast to a Brioni suit, a music system can deliver a repeatedly rewarding experience day after day after day. 

While the financial investment in high-end audio can easily reach luxury car levels and require 500 square feet of devoted space, a simple integrated system from a hi-fi retailer would not interfere with most living spaces or cost much more than a complete Sonos/Television system yet still deliver the musical goods.  Fair warning however, good sound is addictive and upgraditis is prevalent in the high-end audio community.  And the avenues to improving a given system are endless.

The underlying intent here is to spread to gospel of high-end audio.  Many of the core elements of luxury are present: highest levels of craftsmanship, high-quality materials, scarcity, high performance, and pride of ownership.   One of my greatest joys is demonstrating my system to guests and observing their surprise to the appearance of my amplifiers and speakers and then ultimately seeing their reaction to hearing their favourite tracks.

If you have an appreciation for the finer things, and you love music, enter ‘local hi-fi retailer’ in your internet browser and you may be on the path to a surprisingly rewarding luxury item.