https://asia.nikkei.com/Business/El...4&pub_date=20221011090000&seq_num=11&si=44594
$50,000 turntables amp up tunes for affluent vinyl fans
Success of niche manufacturer Esoteric rescues parent Teac from financial abyss
Esoteric's Grandioso T1 turntable uses a magnetic driver for contactless rotation. (Photo by Shuhei Yuzawa)
SHUHEI YUZAWA, Nikkei staff writerOctober 11, 2022 00:03 JST
TOKYO -- High-end Japanese audio equipment maker Esoteric has launched its first analog turntable -- at a sticker price normally reserved for new cars.
The Grandioso T1, released last month, sets itself apart by using a magnetic driver and platter to achieve contactless rotation. Unlike conventional turntables, it reduces vibrations that would disturb the playback of a record.
The device does not come cheap: its suggested retail price starts at 7.15 million yen ($49,500). Esoteric's parent company Teac, an electronics maker, invited this reporter to the company's headquarters to take a listen to the turntable. The equipment was hooked up to Teac speakers priced at 40 million yen.
The Grandioso played a powerful instrumental piece, and the ear was able to pick out the most minute notes. Although the experience was overwhelming, it was hard to tell whether the credit goes to the turntable or the high-end speakers.
A request was made to play a song this reporter was more familiar with, so Teac put on "Wrapped in Kindness," an early release by Yumi Arai that was featured in the Studio Ghibli feature film "Kiki's Delivery Service." The occasional crackle heard during the listening added flavor to the experience.
Teac gave a demonstration of the new turntable, hooked up to a 40 million yen speaker system.
Turntables found at cafes and similar establishments normally sell for hundreds to a few thousand dollars. The target market for the Grandioso will be wealthy customers overseas, and the machines will be sold through dealerships.
Esoteric "has achieved increases in sales and profits for six consecutive years," said President Hiroshi Oshima.
The company's success owes largely to growing shipments outside of Japan. Overseas markets now account for over 60% of overall revenue, with many customers in mainland China and Hong Kong. In 2020, Esoteric signed its first distributorship deal in South America.
Esoteric's performance has contributed to an upswing in Teac's earnings. After five straight years of net losses through fiscal 2016, the company returned to the black for the next five years through fiscal 2021.
Teac's medium-term plan released in May set out a strategy of taking the lead in a specific niche, then expanding into related products. It targets operating profit of at least 1.1 billion yen in fiscal 2024, up 70% from fiscal 2021.
This is a difficult time for the audio equipment industry, with Onkyo Home Entertainment filing for bankruptcy in May. Developing a strong lineup of high-end products, along with carving out a unique niche with equipment for streamers and content creators, will be key to ensuring continued growth.
$50,000 turntables amp up tunes for affluent vinyl fans
Success of niche manufacturer Esoteric rescues parent Teac from financial abyss
Esoteric's Grandioso T1 turntable uses a magnetic driver for contactless rotation. (Photo by Shuhei Yuzawa)
SHUHEI YUZAWA, Nikkei staff writerOctober 11, 2022 00:03 JST
TOKYO -- High-end Japanese audio equipment maker Esoteric has launched its first analog turntable -- at a sticker price normally reserved for new cars.
The Grandioso T1, released last month, sets itself apart by using a magnetic driver and platter to achieve contactless rotation. Unlike conventional turntables, it reduces vibrations that would disturb the playback of a record.
The device does not come cheap: its suggested retail price starts at 7.15 million yen ($49,500). Esoteric's parent company Teac, an electronics maker, invited this reporter to the company's headquarters to take a listen to the turntable. The equipment was hooked up to Teac speakers priced at 40 million yen.
The Grandioso played a powerful instrumental piece, and the ear was able to pick out the most minute notes. Although the experience was overwhelming, it was hard to tell whether the credit goes to the turntable or the high-end speakers.
A request was made to play a song this reporter was more familiar with, so Teac put on "Wrapped in Kindness," an early release by Yumi Arai that was featured in the Studio Ghibli feature film "Kiki's Delivery Service." The occasional crackle heard during the listening added flavor to the experience.
Teac gave a demonstration of the new turntable, hooked up to a 40 million yen speaker system.
Turntables found at cafes and similar establishments normally sell for hundreds to a few thousand dollars. The target market for the Grandioso will be wealthy customers overseas, and the machines will be sold through dealerships.
Esoteric "has achieved increases in sales and profits for six consecutive years," said President Hiroshi Oshima.
The company's success owes largely to growing shipments outside of Japan. Overseas markets now account for over 60% of overall revenue, with many customers in mainland China and Hong Kong. In 2020, Esoteric signed its first distributorship deal in South America.
Esoteric's performance has contributed to an upswing in Teac's earnings. After five straight years of net losses through fiscal 2016, the company returned to the black for the next five years through fiscal 2021.
Teac's medium-term plan released in May set out a strategy of taking the lead in a specific niche, then expanding into related products. It targets operating profit of at least 1.1 billion yen in fiscal 2024, up 70% from fiscal 2021.
This is a difficult time for the audio equipment industry, with Onkyo Home Entertainment filing for bankruptcy in May. Developing a strong lineup of high-end products, along with carving out a unique niche with equipment for streamers and content creators, will be key to ensuring continued growth.
