EXCLUSIVE: Klipsch Drops Qualifi For Own Subsidiary
In a shock move leading Melbourne based distributor Qualifi have been given 90 days’ notice of termination by US based audio Group Klipsch, who are moving to set up their own subsidiary in Australia to sell their speakers and soundbars.
The US Company who has a chequeured history in Australia having used both Interdyn and Powermove in the past to sell their goods is set to establish their own subsidiary in Australia.
ChannelNews believes that the US Company has already poached current Qualifi staff to join the new entity.
During the past 12 months Klipsch which is part of the Voxx International Group has struggled with supply and quality issues with Harvey Norman stores who sell Klipsch audio products exclusively in the Australian mass channel having to process the returns of hundreds of faulty Klipsch sound bars due to connectivity issues.
Michael Henriksen the CEO of Qualifi said the move came as a shock, we have increased sales significantly since we took over the brand and despite having to manage without supply during COVID-19”.
Qualifi is one of several distributors who are battling supply issues, Indi Group recently dropped the Q Acoustics brand due to supply issues with the UK Company.
ChannelNews has been told by retailers that supply of the Klipsch 800 and 1200 sound bars hd become a serious problem. Qualifi recently took delivery of the CINEMA400 and 600 models but were struggling to get the premium models that are sold by the specialist channel.
ChannelNews has been told that their are major supply issues with R100 and R120 Klipsch subwoofers as well as components for the Klipsch 5.1 home theater kits.
According to sources the Klipsch Group believe that they can increase sales in Australia by supplying their product to other mass retailers other than Harvey Norman who currently have the exclusive rights to the Klipsch range of products.
According to Harvey Norman sources this could be a problem for Klipsch with the mass retailer tipped to drop the product if it is supplied to archrival JB HI Fi.
Harvey Norman who have built the brand significantly in Australia have several options to replace the Klipsch brand with both Bowes & Wilkins and Yamaha in a position fill the void.
Qualifi has had the brand for four years and in that period they have grown market share across both the specialist and mass channels. Moves to expand the amount of retailers who sell the Klipsch speaker range could be a problem for the US sound brand.
More to follow.