AUDIO FOR ENTERTAINMENT By Nat Hecht
Manufacturers in the professional audio industry all around the world face the scourge of copy-cat manufacturing. While there are many examples of reputable companies subtly or brazenly borrowing concepts and design practices from each other, often with litigious results, the reality is that year in and year out there are companies who practice the wholesale copying of cosmetics, color, shape, design, and the downright counterfeiting of well-known and popular products - right down to the manufacturer’s logo. It is a widely held belief that this kind of activity is bad for business, and the protectionist attitudes of those trying to protect their intellectual property and trade dress associated with their products will go after these manufacturing offenders with zeal, and will also attack those who decide to represent, distribute, and sell these kinds of products to the public, at least in the United States and Canada. It seems that most of this activity has been relegated to “off-shore” manufacturers, often difficult to find or stop, let alone file lawsuits against when they are not operating within the countries whose manufacturers are offended, the most notorious of these being products made in China. But rather than relegate China as a whole to some sort of future depicted in scenes from the movie “Blade Runner” where the copy is more highly prized than the original, it might be interesting to speculate on a much different outcome; one where China will actually lead us into the future of product development, and not just in our little corner of the professional audio product universe. Why do I think this might be so? Because a close examination of business in China has shown that imitation has become the Chinese business model for their industrial development, and with the largest population on the planet there are simply too many new workers in China coming up through the ranks that must be absorbed in the economy. An economy based on the emulation of the products and ideas of others will not be a sufficient business model to sustain the kind of economic growth that will be needed for China’s industrial future. This concept is not a new one, it is actually common among those who have studied the market dynamics in China, and is a widely held belief among the best minds on the subject; both Chinese and otherwise. Just ask any of the leading manufacturers in the world or within our own industry, this kind of thing has been happening for many years. In China, copying is a legal, social, economic, and creative reality of the culture. We have all heard of the counterfeit DVDs and CD titles, but there is a growing “grey market” in nearly every segment. The fact is, nearly all larger manufacturers who have been forced into situations where they must compete economically have become so dependent upon Chinese manufacturing, they are having a harder time suing companies in China for loss of business, as these very companies upon whom they depend begin to go into business for themselves. Hayun Hahn, a consultant in trend-spotting at a company called Futuremode hit the nail on the head while addressing a conference of outdoor apparel companies in the United States. He said, “Right now, they’re (your Chinese manufacturers) making minor changes in the ideas they’re ripping off from you. In three years, those changes won’t be so minor… they want to innovate. They may not be ready to launch their own global brands, but some of the manufacturers I’ve met are ready to redefine yours.” It is clear that what is happening in China is the development of innovations designed to make products cheaper and easier to sell. Just as Japan began to innovate by building smaller and smaller products at reduced cost, China is beginning to innovate by exploiting process and manufacturing technologies with an eye to reducing manufacturing costs with innovation, working towards the goal of becoming the design and development center for new technologies in the future. Please understand that I am in no way endorsing the Chinese companies who are outright plagiarizing and counterfeiting products designed and built in other countries around the world, nor am I (or is this publication) endorsing those companies who routinely violate trade dress and infringe on the intellectual property of other companies. I think there is a very fine line that some companies are walking when it comes to what is and isn’t copying, and it touches upon the emotions and actual or perceived dominance of manufacturers, especially the larger and more successful ones. No one wants to see profits taken away from those who actually deserve them, yet the juggernaut of companies skirting the edge of these issues are not going to be possible to stop, so other than the courts there might need to be a further understanding between the cultures with an eye toward a common future goal with respect to design and manufacturing, as is happening in some segments right now. What is a self-respecting professional audio manufacturer supposed to do? How about an unsuspecting consumer of such products? Many manufacturers have been taking advantage of the situation by having their own products made in China. Some companies have set up their own manufacturing facilities, while others have contracted with very large providers to build products to their specifications. Have you taken a close look at the “made in…” labels on your equipment lately? While it is certainly more prevalent on the consumer side of the audio business, there are many high-quality name brands in our segment who are exploiting these economies. If you are a consumer and are concerned, the best thing to do is evaluate the quality of what you are getting from a well respected brand name. If the quality is great, what really is the difference in the end? I suppose if you are concerned about U.S. manufacturing jobs, that could be one reason to avoid products “not made here”, but look what has happened on the consumer side. Do we even have a manufacturer of television or other display products in the U.S. anymore? I’m typing this article into a Dell Inspiron 5100 computer, sold to me by a U.S. company, but the computer itself was made in Malaysia. Nearly all mainstream consumer audio products are manufactured outside the U.S., with the exception being the ultra “high-end” boutique Hi-Fi products you see in specialty stores. If you or your company have issues with products “not made here”, there are still many choices for products made in the United States or any other respective country to whom you might be loyal when it comes to professional audio, and that will likely continue since the production numbers in our rarified professional audio segment are often just not high enough for some products to warrant a manufacturing shift to China. Does any of this mean that China will eventually outpace other countries in the areas of innovation and design? I don’t think that is very likely. Just as Japan’s innovations have become part of the mainstream collective body of knowledge - with many examples of technologies and processes that have been adopted by other manufacturers around the world, so will the innovations and technologies developed in China also be adopted. A good idea is always going to be a good idea, and many of the best ideas come from good minds in many parts of the world. I guess you could say that the U.S. and other manufacturers around the world will eventually be adopting the design and innovation practices developed in China, which looks like a copy-cat situation in reverse… but don’t quote me on that! Nat
Hecht has been involved in nearly all phases of the professional |