About 40% of total GN ReSound hearing instrument revenues are generated by its hearing instrument activities in North America, to the tune of almost DKK 1.2 billion in 2007. The GN ReSound business showed improvement during the first three quarters of the year on the otherwise stagnant US hearing instrument market.

The President of GN ReSound USA, Bjørn Christ, is confident that GN ReSound growth is driven by the combination of a new, strong product portfolio and top product quality.

Bjørn invited GN News to visit GN ReSound’s office in Bloomington, just outside of Minneapolis, Minnesota.

Bjørn, tell us about the current situation on the US hearing instrument market.

“Overall, the market is pretty flat, but if you look specifically at GN ReSound’s US operations, we are actually seeing double-digit year-on-year growth rates. That’s a good indication that we are winning market share right now.”

Has customer behavior changed compared to, say, a year ago?

“Our customers, the hearing aid dispensers, have begun carrying less expensive products, and there is also a trend among end users choosing less expensive products. [There are no public subsidies for hearing aids in the United States: users pay for their hearing aids themselves.–ed.] On the other hand, we have seen sales grow tremendously in our Basic business, a segment in which GN ReSound did not have a very big US market share before. The increase is clearly driven by the fact that we have launched some fantastic products in the segment this year.”

“We launched the world’s smallest BTE device, the dot by ReSound™, at the start of the year, and it’s become a huge success. The dot by ReSound™ line is available in three price segments: Basic, Plus and Top. The dispensers have also been giving us indications that another new product, the brand new Top product category be by ReSound™ is drawing more customers into their shops. This is consistent with our previous experience that launching a radical new form factor helps draw in new customers. If it turns out that the user isn’t comfortable with a be by ReSound™ when he or she tries it out in the dispensary, the dispenser has a whole range of other new ReSound hearing aids to offer instead. This makes it very likely that when users walk out the door, it’ll be with a ReSound hearing aid behind their ear.”

Can you be sure that the dispensers will actually suggest other ReSound products in that situation?

“Not counting GN ReSound’s other major brand, Beltone, which has an independent dispenser network across the United States carrying only Beltone products, it is correct that dispensers also carry other brands. They typically have three or four different ones. However, like other hearing instrument manufacturers, we have incentive structures with our dispensers so that when one of their customers shows an interest in one of our products, the dispenser will want to show them our entire product portfolio.”

One of the first things that GN ReSound’s CEO Mike van der Wallen said when he was appointed was that his top priority for GN ReSound was to restore stability and make GN ReSound a reliable business partner again. How have you approached that in your part of the business?

“We have a core group of very loyal customers, and I actually don’t think that the confidence our customers had in us was ever lost, but it has clearly been damaged by the prolonged sales process back in 2007. A key element in restoring confidence and reliability is to have a strong product portfolio and to provide top-quality service. I believe we have an exceptionally strong product portfolio this year, both in terms of innovation and quality. Let me give you an example: I haven’t heard of one single complaint about the Silhouette series (Ziga, X-Plore and Azure) we launched recently. These are products of exceptionally high quality – and that creates confidence.”

“If you ask me what the most important thing is for GN ReSound, I have only one answer: growing our business. A dispenser would say the same about his business. We want to help our customers, the dispensers, create growth in their business. If we can do that, GN ReSound will be perceived as a more reliable business partner, and that means we would gain even more loyal customers. We have a number of specific initiatives ready to pursue this strategy, but I’m not going to reveal them to you here.”

If you consider the US market alone and your job as head of GN ReSound in North America, what are your three top priorities right now?

“First of all, we need to have an even wider-spread dispenser network. The more points of sale we have, the more we sell. It’s that simple. Next, we need to build even stronger relationships with the dispensers we already have. We can do that by creating greater loyalty, for example by offering more services such as selling batteries. Finally, we need to become much more efficient in our work routines and core processes.”

How do you see GN ReSound’s current position on the market?

“If you have an earnings margin of 20–30% like some of our competitors do, you probably won’t make any drastic changes to your strategy and business approach. But at GN ReSound, we are not afraid to shake things up if it will improve our earnings. I think that is a huge advantage for us. If you look at GN ReSound’s strategic position, we are the only industry player with a flexible global supply chain and distribution organization combined with what I like to call ‘the attacker’s advantage’ of coming up from behind. We have good products and low costs, but our sales aren’t high enough. If we can capitalize on the attacker’s advantage, there is no doubt in my mind that GN ReSound has huge potential in the coming years.”

Facts about Bjørn Christ

• Bjørn Christ (Pronounced ‘krisst’ in Danish, Bjørn’s last name is not a religious name in Denmark, where the Latin form “Kristus” is used in the Bible was appointed president of GN ReSound USA in July 2007. 
• Before relocating to the US, he spent three years as general manager of GN ReSound in Japan.
• He joined GN ReSound as vice president for business development in 2001 and was part of the GN team that acquired and integrated the hearing instrument businesses of ReSound, Danavox, Royal Philips, Viennatone and Beltone.
• Before joining GN ReSound, he worked for the consulting firms McKinsey & Company and PricewaterhouseCoopers.
• Bjørn holds an M.A. in economics from the University of Copenhagen, a B.Sc. in computer science and has attended MIT, Institut Français and the Copenhagen Business School.