Klipsch is continuing to crack down on unauthorized sellers with plans to launch as 12-month initiative at CEDIA that will see its number of authorized Internet resellers reduced from 50 to 10, and dropping all online marketplaces but Amazon and eBay.
Through multiple lawsuits filed against unauthorized sellers, Klipsch says the company has seen over US$5 million in those sellers' funds locked up by a federal court order. Over the past year, Klipsch has also terminated authorized resellers that supplied unauthorized Internet sellers with various Klipsch products, resulting in business of several million dollars.
"Klipsch has spent 70 years building a powerful and trusted reputation, and under my watch, we will never again let a pop-up shop determine the look, feel and consumer experience of our brand," says Paul Jacobs, Klipsch CEO. "With the full support of VOXX International, we have an open chequebook to continue pursuing these bandits until the degradation of our brand stops."
More than 20 new products will be on display at CEDIA, aimed specifically at the custom integrator, and unavailable for online transactions.
"We are putting teeth behind our policies," Jacobs adds. "Our team is committed to optimizing the consumer experience online and this focus will allow us to select the very best online resellers and provide best-in-class digital assets. It's not enough to just introduce new products. Today you need a 360-degree launch strategy and securing the best channel management is paramount to new product success and widespread consumer acceptance."
The initiative will include the introduction of a new Internet reseller approval process that is backed by strong contractual agreements and the support of both internal and external legal teams. An outside company will monitor all activity to guarantee brand protection across the online market.
All Klipsch dealers will receive communication of the strategy and its benefits, beginning at CEDIA 2016 and continuing through the coming weeks.
"Effective channel management is an ongoing process and we will continue to monitor and adopt strategies to ensure Klipsch is a leader in the premium audio space for years to come," concludes Jacobs.