The Chairman's Report for 1998

The British Federation of Audio
PO Box 365
Farnham
GU10 2BD
Phone: + 44 (0) 1428 714616
Fax: + 44 (0) 1428 717599

e-mail:
chrisc@british-audio.org.uk

The following report was given at the British Federation of Audio’s 5th Annual General Meeting held at the end of April. The report, delivered by the outgoing Chairman Gordon Provan, has no embargo.

“At the AGM in April 1998 I stated that competition in the A/V industry remained intense and market share of audio separates was likely to shrink. Regrettably, this prediction has come true as adverse global economic conditions gathered momentum during the year and caused a severe downturn in the industry's markets especially in the export field. Sadly, this has seen the demise of some companies, notably Mordaunt-Short and Rogers and acquisition and mergers of others."

"The year has seen the introduction of a new Trade magazine, the British Audio Journal, embracing modern means of electronic communication, and the revitalising of the established Inside Hi Fi. The BAJ demonstrated its credentials to the BFA preceding the AGM and Inside Hi Fi presented its revamped plans for the way ahead to the Executive Committee. Closer ties between the industry and trade press can only be helpful to both sides and the BFA welcomes this development.

"The UK and Export Committees are key elements in the Federation's activities and both groups have continued to provide interesting and useful forums for members to chew the cud, promote issues and keep abreast of impending legislation. Guest speakers have been used to advantage to exchange ideas and widen perspectives. In January the Head of Operations at the DTI Operations, Promotions and Support Directorate addressed the Executive Committee on changes being introduced following the Government's review of the overseas Trade Fair Support Scheme. Through the Export committee the BFA applied for sponsorship under the newly titled Support for Exhibitions and Seminars Abroad (SESA) 1999/2000 programme for the CES Las Vegas and Frankfurt shows. Disappointingly, our application was not approved being in part due to bids being 40% oversubscribed. An application will be considered again for the coming year.

"This year saw the last Hi Fi Show at Heathrow which was judged by many to have been the best ever. Next year the event moves to the Novotel in London which in itself should help to generate further interest, and because of its central position, should attract a larger audience. The Bi-annual LIVE show at Earl's Court featured a specially designed hi-fi village, voted feature of the show, to accommodate audio companies. Facilities for audio demonstration were much improved over 1996 and the organisers are to be applauded for their efforts to accommodate audio demonstration needs. The show itself attracted a large and more educated audience and was voted well worthwhile by participants. Whilst not ideal for demonstrating pure audio it should be regarded as a branding exercise and an opportunity to make the general public aware of hi fi separates.

"Once again there were no BFA awards this year as the climate did not seem advantageous. However, there is an increasing desire to re-introduce product Awards, sorely missed as a focus for industry marketing and networking, and the Executive Committee has been actively considering how and what form such an event might take bearing in mind the practical details of cost and management time. Once again the BFA hosted another successful boat trip which saw a good mix of members and non-members. BFA Executive Committee members attended the BREMA Annual Dinner and took the opportunity to invite senior guests from non-member companies to discuss and exchange mutual topics of interest affecting the industry.

"Statistical data on product sales has always been one of the main benefits afforded by the Federation to its members and is an important marketing tool in any business strategy. Loss of some members due to competition and economic factors, has reduced data input a little and the Executive Committee has initiated, through BREMA's good offices, a joint venture with non BFA members in an effort to widen the universe of research. Members not already contributing to the statistics collection are urged to do so.

"The digital revolution in consumer electronics took stage this year and promises to boost sales and generate renewed consumer excitement. New products featuring digital technology will present both an opportunity as well as competition to traditional hi fi products. It is heartening to see BFA members being at the forefront of new age technology with flat panel speakers from Mission last year and Digital tuners from ARCAM this year.

"The Government Order resulting from the MMC Enquiry was finally introduced in the Autumn with much trumpeting of large consumer savings which have yet to materialise. The exclusion of Hi Fi Separates was a major achievement for the industry by the BFA which should not be under appreciated. The Competition Bill became law and the EU Directive on Consumer Guarantees should be adopted this year; both will impinge considerably on the way we do our business. A proposed EU Copyright directive was released at the latter end of the year which could have far reaching effects on the consumers ability to copy digital material and consequential effects for manufacturers."