[Viewpoint] Some thoughts on the Chinese acquisition of MBL

In my June 2025 editorial, I told you about the clouds gathering over the future of MBL, a historic and iconic brand representing uncompromising HiFi. Its struggling finances were ultimately saved by the Chow Tai Seng group, a true giant in the jewellery sector, also with a direct interest in the audio market, owning the United Audio Chinese distributor.

The giant Chow Tai Seng sells jewellery online (the shop sadly resembles Temu or Aliexpress, though the prices are different) and has taken on the task of acquiring 100% of MBL, paying off its previous debts and guaranteeing that the headquarters and production will remain in Germany (source: Der Indat). This is, of course, excellent news for MBL's 50 employees and their families, the MBL distributors/resellers, and the customers of this historic brand who will be able to count on the usual official tech support network.

Allow me to make a few remarks: first, I'll respond to those who, after my editorial on MBL's troubles, were ready to say that these were just normal preventative measures to improve the company's performance. Well, the truth and the facts have shown quite differently: that is, saving everything didn't require a small injection of capital from a few investors or streamlining processes...it needed someone to take EVERYTHING. So, maybe next time, think carefully before spouting nonsense.

Secondly, I can't be 100% happy with this acquisition. Another piece of Western know-how and technology has changed hands and ended up in the clutches of big Chinese capital. Maybe the new ownership will protect what MBL has been, maybe not. I imagine whoever puts up the money and pays the debt will want to recoup their investment, sooner or later. And if MBL, as it was, wasn't selling enough - that's true, and there's no point denying the evidence - it means something will have to change, and radically. I hope this change doesn't come at the expense of employees, through production relocations, for example. And I hope MBL doesn't become yet another brand under which a Chinese company tries to market something completely different. I remember that the glorious English brand Morris Garage (MG) is now just a re-branding of anonymous Chinese electric cars, for example. MG sports cars are just a distant memory in the hearts of enthusiasts.

Moreover, perhaps not everyone knows that Western luxury is marking time. And it's especially so in China, one of the most important markets. Want some numbers? Porsche saw a 28% reduction in sales in 2024 and a further 28% decline in the first half of 2025: it will have to close approximately 30% of its Chinese dealerships by 2026. Ferrari just lost 24% of its sales in China. Audi, BMW and Mercedes follow closely (sources: report by Fortune and by ThinkChina).

High-end fashion is no better: Gucci has suffered a significant recession in China, with a 23% decline in annual net revenue in 2024 and a continued decline in early 2025. Louis Vuitton is also down, by more than 10% (source: Style report). What does this mean? That China is no longer what it once was, because domestic production has become competitive even in the luxury niche. And it seems brand status is no longer sufficient to keep sales high. Porsche, Ferrari, Gucci, and Louis Vuitton are brands with legacy and worldwide success that were thought to be unshakeable. And I could name others. Compared to these giants, you can see that MBL is practically nothing. I'll stop here; I don't think you need any special insight to understand what's happening. It's a (real) third world war, yes, fought (and won) without weapons, as I've been saying for a long time. The pointing finger is what guides you to the moon but you can go on staring at the finger.

DISCLAIMER. TNT-Audio is neither a shop, nor a HiFi company or a repair laboratory for HiFi components. We don't sell anything. It is a 100% independent magazine that neither accepts advertising from companies nor requires readers to register or pay for subscriptions. If you wish, you can support our independent reviews via a PayPal donation. After publication of reviews, the authors do not retain samples other than on long-term loan for further evaluation or comparison with later-received gear. Hence, all contents are written free of any “editorial” or “advertising” influence, and all reviews in this publication, positive or negative, reflect the independent opinions of their respective authors. TNT-Audio will publish all manufacturer responses, subject to the reviewer's right to reply in turn.

October 2025 Editorial

Chinese jewellery giant Chow Tai Seng acquires MBL