Beate
Uhse change direction
Based on an article from
SAWF News
Beate Uhse, which dominates Germany's
erotica market, is establishing a range of city centre boutiques that
aim to attract a wider clientele.
The traditional sex shops will not survive as they are, said Otto
Christian Lindemann, the German group's director.
Beate Uhse's flagship products, porn films and special film screenings,
are no longer making money for the company. These days, clients prefer
to surf the Internet where they can often download films for free.
As a result, DVD prices have tumbled. In the 1990s, a video cassette
cost the equivalent of 40 euros. Today, you can find DVDs for as little
as 10 euros, said Richard Fhal, boss of Concorde, a French wholesale
dealer for Beate Uhse.
The German firm's recent financial history reflects this change in the
market and makes uneasy reading. Bulk, mail order and Internet sales are
all in trouble. And that's not counting some other difficulties closer
to home.
Customers have complained of long delays in receiving their mail order
goods. Also, there was controversy surrounding a range of Beate Uhse
vibrators that tried to cash in on World Cup fever.
Finally, flooding at its distribution centre in the Netherlands ruined
all the company's Christmas stock. As a result, net profits for 2006
dropped by 30 percent to 10 million euros.
To turn around its ailing fortunes, a new strategy must be found. In the
view of one analyst, Beate Uhse, fortunately holds a trump card over its
competitors.
The Beate Uhse brand is renowned throughout Germany, Austria and
Switzerland. It's a good asset to have over the competition, said
Stefan Rohle, an analyst at the Institute for Independent Research.
Lindemann's magic pill is to replace the hard porn magazines and dildos with colourful sex toys and risque underwear aimed at both men
and women.
A new store in Munich opened last January with the aim of testing this
new concept.
For sex industry watchers, this idea is a bit passe. Five years ago,
Beate Uhse announced very similar measures. In 2003, it opened Mae B, a
new chain aimed exclusively at women which turned out to be a flop.