Shaking Things Up at Loewe: A New Leaf for the TV & Audio Device Manufacturer
Loewe television device manufacturer readjusting its strategic angle - Loewe has shifted its TV manufacturing strategy.
Looking to branch out, Loeve - the traditional TV and audio device company - is stepping out of the box. This German powerhouse is entering new territory with the introduction of a coffee capsule machine, a move that CEO Aslan Khabliev calls a no-brainer. "Hey, coffee's important, almost everyone drinks it," he notes, adding that "there are many emotions attached to it and stories behind it." Fully automatic machines, fit for a café, will hit the market by year's end.
Germany's market for coffee machines has shown steady growth as of last year, with approximately 250,000 units sold from January to October – a 3.5% increase from the previous year. The revenue generated from these machines has also grown, reaching a staggering 74 million euros in the same period, reflecting a 6% hike.
Once a niche player offering exclusive, high-quality TV and audio devices, Loewe faces a constant threat of losing ground if it stays put, according to Khabliev, who took the reins at the end of 2019. The company, founded in 1923, has grappled with insolvency twice - in 2013 and 2019. The TV market in Germany witnessed a slight decline in the first three quarters of 2024 compared to the previous year, with smaller screen classes falling out of favor while larger models saw stable to growing sales.
Despite the challenges, consumers continue to consider technical quality as a critical factor over price when it comes to purchasing decisions. Further, recent developments suggest that TV devices will play a vital role in controlling smart homes moving forward, potentially reshaping the market. Loewe, with its rich history dating back nearly a century, believes that the TV market will always persist, being a staple in households and hotels alike.
Battling a tumultuous turnover, Khabliev attributes the market downturn to the Corona pandemic, wars in Ukraine and the Middle East. However, the company's income is yet to reach pre-crisis levels despite the introduction of multiple new products. In 2024, Loewe reported nearly 60 million euros in revenue, a significant drop from its peak of 100 to 130 million euros prior to insolvency.
Loewe's renowned partnership with prolific French footballer Kylian Mbappé (Real Madrid) looks set to boost the company's international recognition. Mbappé, partner and brand ambassador of the Kronach-based company, aims to help Loewe establish itself on the global stage.
While the search results revolve around the Spanish luxury fashion house Loewe, acquired by LVMH Moët Hennessy Louis Vuitton in 1993, the focus here remains on the German TV and audio device manufacturer. Should Loewe expand its product line through diversification, it could explore a variety of paths, such as:
- Jumping into New Territories: Building advanced smart home devices, incorporating AI into audio products, or entering the smart display market could be viable options.
- Staying Green: Making sustainability a priority could resonate with eco-conscious consumers.
- Partnering Up: Collaborating with luxury brands could strengthen its premium product offerings.
Expanding product lines can bring numerous benefits, including increased market share, enhanced brand reputation, revenue growth, and risk mitigation due to less reliance on a single product category. However, specific details about Loewe's current diversification strategies or financial status are not available, making it difficult to provide a comprehensive analysis of its market position and financial performance.
- Loewe, traditionally a TV and audio device manufacturer, is venturing into new territories with the release of a coffee capsule machine, signifying a significant shift in their product line.
- Recognizing the importance and emotion associated with coffee, Loewe's CEO, Aslan Khabliev, sees the coffee machine as a strategic move that will help the company expand its market share.
- In the midst of a niche market, Loewe is considering diversification strategies such as developing advanced smart home devices, incorporating AI into audio products, or entering the smart display market, aiming to strengthen its premium product offerings and ensure its continued relevance in a rapidly evolving market.
