Making Noise Makes Money

As the world’s guitars, drums and pianos are manufactured in China, more locals are playing too.

By BRUCE VEDDER

More music instrument manufacturers are making their wares in China.

THERE was an awful lot of noise at last October’s Music China, an international exhibition for musical instruments and services in Shanghai. China has become a music workshop for the world, turning out record numbers of guitars, pianos and classical instruments. With big guitar-making names like Gibson and Yamaha now manufacturing locally, rock stars of the world are playing instruments made in China. With 619 exhibitors, the third Music China in Shanghai was the biggest Music China exhibition yet. Numbers were up almost 50 percent on figures for the previous year’s show.

Quality instrument manufacturers are making their wares in China, but they are also coming to town to sell gear to China’s own rockers and classical players. Instrument makers who previously manufactured in Korea and Japan have shifted to China for reasons of export local sales. China manufactured almost a million pianos in 2004. Foreign exhibitors came to Music China to gain exposure for their brands, make direct sales to the market or find local distributors. China has more musicians than any other country in the world, so it is vitally important to come here and meet with potential and existing customers in person, said Ms Ada Shum, sales executive at US instrument maker and retailer AXL. “Our manufacturing plant and warehouse are both located in Shanghai, and we have invested more resources and displayed more instruments in Music China than any other trade fair we attend.” Drums, guitars and sound gear took up the most space at the Shanghai New International Expo Centre. Most mid- and low-priced guitars are now coming out of China because labor and materials are much less expensive there. China is keeping the costs of guitars low, but most models are low and mid-range, says Elliot Rubinson of American marque Dean Guitars. “ think everybody knows that the price points for guitars are going down lower and lower - the number of units sold is up, but the average dollar price per guitar is way down.”

Joan Moon of UK firm Moon Guitars came to Shanghai looking for custom for more expensive, UK-made guitars. “We really just wanted to see what was going on over here in China, and do a bit of brand promotion. The results have been really good. We came looking for direct buyers, such as retailers, and have made some great contacts, but we’ve also met some distributors who are keen to work with us.” Over 25,000 visitors from 61 countries showed at the four-day show, up 18 percent on figures for 2003. “Music China is becoming more important each year. I have a feeling that in time it may well rank in importance with major music industry events in Europe and the USA,” said David Magagna, International Sales Manager for Paul Reed Smith Guitars. Magagna premises his projection on Chinese middle class parents pushing their children to learn a musical instrument. “The Chinese market is still immature, but seems to be finding its feet,” said Rob Turner of EMG Pickups, USA. “The Asian market has always needed a show like this. We met with many clients that we didn’t expect to see at the Shanghai fair. This show will certainly be on our ‘need to attend’ list in the future.” The biggest market in China is still for classical instruments. Alistair Hanson of Hanson, makers of woodwind instruments from the UK, found a distributor at the 2003 show and the Hanson brand is becoming known and in demand in China. “The Chinese market is so susceptible to brand names, and the great thing is that all foreign brands are on an equal footing, as nobody has been here more than a few years.” Andrea Ballone Burini of famed Italian accordion maker Ballone Burini was also looking to cash in on China’s music making and middle class interest in music classes. “I have met a number of teachers and other representatives of music institutes, and this is a strong start for our business in China.”

Music China’s growing reputation and importance also attracted plenty of rock stars, giving master classes and working up interest for brands. Dokken guitarist George Lynch appeared as a guest of Warwick. There were plenty of home-grown musicians on-site too. A university band competition at the expo was won by Purple Band, competing in the electro-acoustic category, and Luan Er Jazz Band, who took the “eastern and national special performance” crown. Both bands were formerly at the East China University of Politics and Law. “There are increasing number of small bands at schools, colleges and universities across Shanghai,” said Lu Zhijie of the Shanghai Art Education Center, organizer of the competition. “The objective of this competition is to provide a stage for our young people to share their music; although they are not up to professional standards, this is a great chance for them to exchange their music. Some of the bands even performed original songs. Before, there were only competitions for classical musicians.”

“There will be plenty more music in Shanghai next year. Music China is gaining momentum,” said Betty Heywood, director of Trade Fairs for Messe Frankfurt in Shanghai, which organizes the show in collaboration with the China Music Instrument Association. “We will need to add another half-hall at least to accommodate the demand for the 2005 show.” The next show is scheduled for October 2005 at the Shanghai New International Expo Center. Music China is run concurrently with Prolight & Sound Shanghai, a specialist forum for manufacturers of audio, lighting and stage technology. Smaller than Music China, Prolight Sound Shanghai still drew over 9,000 trade buyers over four days, said Eva Tam, Messe Frankfurt Shanghai.

“This show just keeps getting better and better,” said Mr. Hans Peter Wilfer of Warwick, a German manufacturer of electric guitars, basses, amps and accessories, with a factory in China for eight years. “In terms of brand exposure, it really is a must do fair for anyone in the music business in this part of the world.”