How Sennheiser, A Leading Electronics Brand, Is Increasing Gross Merchandise Volume Via hoolah

Today, modern technology that appeals to the auditory senses is a dime a dozen. Once a novelty of sorts, the evolution of auditory devices sees creations that run the gamut from wired headphones to wireless earpieces. And in an industry that is fiercely obsessed with novelty and innovation, few brands can match the rigor and expansive repertoire of quality offerings from German auditory electronics manufacturer, Sennheiser.  

Established in 1945, just a few weeks after War World II, by Dr. Fritz Sennheiser, the eponymous German label (then it was known as “Labor W”) has stood the tests of time and manufactured an extensive range of products that spans across tube voltmeters to microphones, mixers to active loudspeakers, and more. It wasn’t until 1958 that the company was renamed “Sennheiser” and it is presently run by its third generation. 

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Melding Modernity, Embracing Youth

Sennheiser
Momentum Wireless by Sennheiser

Throughout its seven decades of rich history, Sennheiser has embraced the modernity element with innovative auditory creations that aspire to enliven the quality of life. The German label prides itself in creating audio products that are not only immersive and evocative, but also somewhat sentimental.

“We are always pursuing the perfect sound. This will always be perpetual and at Sennheiser, we have always pride ourselves as a brand that creates technology with superior sound quality. Correspondingly, because of the superior sound quality, we help nurture that superior living experience,” says Melvin Sim, Assistant Manager for Digital Marketing and Customer Relationship Management for Sennheiser Singapore.

Sennheiser
Momentum Wireless by Sennheiser

The label’s timeless appeal, along with monochromatic and minimalist colour schemes, has long captured the hearts of loyal audiophiles who, according to Melvin, tend to belong to those aged 30 years old and older. “These are largely males and they are those who have the purchasing power to afford our products,” Melvin explained. And yet, a burgeoning group of younger audiences is starting to take notice of the German giant’s allure.

Melvin adds, “We call them our lifestyle audience, and they are generally younger. This demographic of consumers comprises both males and females, aged below 30 years old, and they are equally motivated to listen to quality sound and feel good. They are those who may have just joined the workforce and perhaps struggle to procure a quality headphones or two.”

Sennheiser
Momentum True Wireless 2 by Sennheiser

For a brand that is accustomed to dealing with consumers across different generations in the past seventy years, reaching out to that burgeoning younger demographic is key to understanding and shaping new trends. To do so, Melvin explains, Sennheiser Singapore decided to leverage hoolah’s innovative e-payment system to help the younger demographic afford the brand’s competitively priced products.

“We are a small German company so we cannot compete in price,” says Daniel Sennheiser in an interview with The Business Times. “Of course, our products have to be competitively priced and I think we’ve been able to do that, but if consumers aren’t willing to pay much, they have to be prepared to get what they pay for.”

Increasing Gross Merchandise Volume & More

Across January 2020 to May 2020, Sennheiser saw a 300% increase in sales made via hoolah

The results of hoolah’s adoption into Sennheiser were efficacious. “Across January 2020 to May 2020, we saw a 300% increase in sales made via hoolah,” Melvin reveals. On this topic, Melvin considers hoolah to be a positive push for Sennheiser Singapore, which now sees more consumers completing their basket purchases. “The website traffic from hoolah’s store directory page to Sennheiser’s website has also gone up throughout this period,” he adds.

Sennheiser
Bluetooth Wireless Headphones, HD 450BT by Sennheiser

In the time of the coronavirus pandemic, most consumers are adapting to a new normal, that is working from home. The spike in the demand for auditory devices for home offices is easily prophesied. And while this, along with other factors, may contribute to the rise in average transaction value between January and May, Melvin does not dismiss hoolah as one of the factors that helps Sennheiser see an 80% increase in Gross Merchandise Volume.

Way beyond creating innovative, yet practical products that appeal to audiophiles and more, the German label is also leveraging e-commerce enablers, like hoolah, to reach out to more prospects. In hoolah’s case, Melvin reveals that the Sennheiser Singapore team has had opportunities to reach out to local universities and other local brands for exposure and collaboration. “hoolah has been actively linking us with all these wonderful people in the industry,” Melvin says.

At the moment, hoolah has begun rolling out its services offline at physical retail stores. For Sennheiser Singapore, this move yields potential for helping the label reconnect with consumers on the ground. And in an economy that has been recently afflicted by the coronavirus pandemic, this extended collaboration is timely. On hoolah’s past and possible future collaborations, Melvin adds, “With hoolah, we are not working in silo.”

“By working with hoolah since 2019, it has helped Sennheiser open our doors to new communities. The hoolah team is diligent and enterprising, and beyond just the daily transactional work, they have always went above and beyond to recommend new modes of collaborations. It has been a joy working with the team.”

Melvin Sim, Assistant Manager for Digital Marketing and Customer Relationship Management for Sennheiser Singapore.

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Ler Jun

Full-time storyteller. Avid coffee-drinker.

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