macdawn
09-30-2004, 10:16 AM
I just saw this article on the New Paper, and it really made me think. I always inisist on local versions, as I think the parallel imports are really of lower quality, and somehow, I feel that there many be some pirated ones mixed among the real ones.....
But, what can we do? The price is really something that is attracting the consumers, especially when most of them are students with restricted income......
------------------------------------------------------------------------------------------------------
CD War
Parallel Imports Make Local Record Companies See Red
Piracy and free music downloads are no longer the only enemies of the local music inductry. There is a new nemesis in town, and it is proving to be an even bigger threat than the other two.
The onslaught of parallel imports CDs from China - on the local market since last year - are making record companies here reach for aspirins, in what they see as the biggest problem facing the industry now.
These made-in-china CDs - mostly from Shanghai - are retailing at nearly half the cost of the local versions, and their comparable quality are making them very attractive alternative to consumers here.
The difference between the two types of CDs is slight, with the parallel imports coming in a no-frills package, while the local ones usually come with a free disc. Most record companies that The New Paper spoke to reported at least a 20 per cent dip in sales as a result of the parallel imports.
Warner Music Singapore, which released Taiwanese band F.I.R.'s debut album in May, was expecting sales to have hit the 40,000 mark by now. But it has barely sold 25,000 copies, a problem Warner's promotions manager Tay Puay Hoon puts down to the stiff competition from the parallel imports.
"Consumers tend to copmpare prices. If they just want the songs, they will go for the cheaper alternatives. Moreover, while the price is as low as that of a pirated disc, it is not a pirated one, but an original one."
SALES AFFECTED
Miss Guillian Tan, marketing manager of EMI Singapore, also laments the less-than-spectacular sales of Elva Hsiao, Penny Tai and Chiang Mei-chi's recent greatest hits albums.
She told The New Paper: "We were targeting for each of the albums to reach double platinum, which is 30,000 CDs. But so far, we've only reached platinum, which is 15,000 CDs"
Even the God of Songs had not been spared.
According to Universal Music Singapore, Jacky Cheung's Cantonese album, Life Is Like A Dream, released in May, has fallen "30 to 40 per cent" short of target sales. While record companies can take comfort that they usually have the market one week before the parallel imports start flooding in, the more popular artistesdo not enjoy the time lag.
Especially badly hit is R&B darling Jay Chou
Thanks to his popularity in the region, the parallel imports of his latest album, Common Jasmine Orange, arrived here within a couple of days of its local launch, posing head-on competition to the locally distributed CDs.
Not only are these parallel imports driving the already declining CD sales down further but, for local record companies, the bigger fustration is the inability to do anything about it.
Whereas the industry has been protected by the law against piracy and downloads, parallel imports are legal. Even though it is specified on the CDs that they are "for sale in China only", the Media Development Authority says that they "are considered legal for retail in Singapore, provided they have been submitted to the Board of Film Censors (BFC) and have the BFC certificates afixed on them"
And the retailer are cashing in. When The New Paper visited CD shops at Toa Payoh Central, four out of five were selling the parallel-imported CDs. TS Group, one of the biggest video and audio chains here, currently stocks a 70:30 proportion of parallel imports to local versions.
CHEAP IMPORTS
Marketing manager Joesph Toh told The New Paper that the sales of the cheaper parallel omports has bveen raising fast since TS Group started to bring them in earlier this year. Mr Toh claimed that the profit margins from the margin are 20 per cent higher.
Consumers like engineer Tommy Lim, 26, are rejoicing. He said:" Why buy the more expensive one, when you have the cheaper version? No doubt it comes with less frills, but I don't care because I am just going for the songs."
But there are hardcore fans like Sandra Chen, who insists on buying the locally-packaged version. The 18 year-old student said:"I believe that I am paying more for the quality, as I have heard from friends that the parallel imports CDs scratch easily after a few spins.
Adminstrative officer, Christina Tan, 21, agreed. She said:"If you buy the cheap one and you ask Jay Chou to sign on it, do you think he will sign?"
GOODWILL GESTURE
Like these fans, some retailers, like CD-Rama and Music Junction, have chosen to stick by the locally-manufactured CDs. According to Music Junction manager, Lenz Neo, the company's decision not to stock parallel import CDs was a gesture of goodwill towards the record companies.
Mr Neo is standing by the decision, even though he admitted that sales have taken a dip after "losing a share of customers" who will go for parallel imports.
He said:"There's no point in us stocking parallel imports now. We will only be creating trouble for ourselves (by offending the record companies)
"The profit margin used to be larger for such CDs but no longer, since everyone's bringing them in."
On their part, record companies here have been trying to make their products more attractive by bundling free posters, premium or VCDs with the CDs, and even bringing artistes down more often to do promotions.
Universal Music 's product manager Connie Low, who has artistes like boyband Energy and Wilber Pan in her stable, says her company has been absorbing the additional cost of such promotions, leading to a 10 per cent dip in profits.
Even then, the benefits of the promotions may not be reaped solely by the record companies.
Play Music's marketing director James Kang lamented:"Every time we bring an artiste down, we have to hope and pray that people will buy our CDs, and not go straight for the parallel imports."
The Recording Industry Association of Singapore (Rias) is aware of the problems that its members are facing.
Its CEO, Mr Edwards Neubronner, told The New Paper:"Since the start of this year, we have noticed that there's been an even more significant increase in these (parallel) Imports, especially from China."
Mr Neubronner says that the association had submitted a proposal to the Intellictual Property Office of Singapore (Ipos) for amendments to the copyright law when the Ipos called for public consultation on the Copyright (Amendment) Bill 2004 this year.
However, in an email reply, Ipos:"Parallel importing of goods of legitimate origin is allowed in Singapore. The US-Singapore Free Trade Agreement, with the exception of the provision on parallel importation of pharmaceautical products, does not require Singapore to alter this position. Therefore, impeding law changes to our Copyright legislation will not affect this regime"
Record companies here are still hoping for the Government to help them. But in an email reply, the Ministry of Trade and Industry said that the Government does not intervene in the economic decisions of companies, unless there are "overriding social or political considerations".
"We operate a free market system which allows open competition among not only domestic firms but also foreign firms and products. Consumers stand to benefit from wider choices and lower prices from such open competition."
But, what can we do? The price is really something that is attracting the consumers, especially when most of them are students with restricted income......
------------------------------------------------------------------------------------------------------
CD War
Parallel Imports Make Local Record Companies See Red
Piracy and free music downloads are no longer the only enemies of the local music inductry. There is a new nemesis in town, and it is proving to be an even bigger threat than the other two.
The onslaught of parallel imports CDs from China - on the local market since last year - are making record companies here reach for aspirins, in what they see as the biggest problem facing the industry now.
These made-in-china CDs - mostly from Shanghai - are retailing at nearly half the cost of the local versions, and their comparable quality are making them very attractive alternative to consumers here.
The difference between the two types of CDs is slight, with the parallel imports coming in a no-frills package, while the local ones usually come with a free disc. Most record companies that The New Paper spoke to reported at least a 20 per cent dip in sales as a result of the parallel imports.
Warner Music Singapore, which released Taiwanese band F.I.R.'s debut album in May, was expecting sales to have hit the 40,000 mark by now. But it has barely sold 25,000 copies, a problem Warner's promotions manager Tay Puay Hoon puts down to the stiff competition from the parallel imports.
"Consumers tend to copmpare prices. If they just want the songs, they will go for the cheaper alternatives. Moreover, while the price is as low as that of a pirated disc, it is not a pirated one, but an original one."
SALES AFFECTED
Miss Guillian Tan, marketing manager of EMI Singapore, also laments the less-than-spectacular sales of Elva Hsiao, Penny Tai and Chiang Mei-chi's recent greatest hits albums.
She told The New Paper: "We were targeting for each of the albums to reach double platinum, which is 30,000 CDs. But so far, we've only reached platinum, which is 15,000 CDs"
Even the God of Songs had not been spared.
According to Universal Music Singapore, Jacky Cheung's Cantonese album, Life Is Like A Dream, released in May, has fallen "30 to 40 per cent" short of target sales. While record companies can take comfort that they usually have the market one week before the parallel imports start flooding in, the more popular artistesdo not enjoy the time lag.
Especially badly hit is R&B darling Jay Chou
Thanks to his popularity in the region, the parallel imports of his latest album, Common Jasmine Orange, arrived here within a couple of days of its local launch, posing head-on competition to the locally distributed CDs.
Not only are these parallel imports driving the already declining CD sales down further but, for local record companies, the bigger fustration is the inability to do anything about it.
Whereas the industry has been protected by the law against piracy and downloads, parallel imports are legal. Even though it is specified on the CDs that they are "for sale in China only", the Media Development Authority says that they "are considered legal for retail in Singapore, provided they have been submitted to the Board of Film Censors (BFC) and have the BFC certificates afixed on them"
And the retailer are cashing in. When The New Paper visited CD shops at Toa Payoh Central, four out of five were selling the parallel-imported CDs. TS Group, one of the biggest video and audio chains here, currently stocks a 70:30 proportion of parallel imports to local versions.
CHEAP IMPORTS
Marketing manager Joesph Toh told The New Paper that the sales of the cheaper parallel omports has bveen raising fast since TS Group started to bring them in earlier this year. Mr Toh claimed that the profit margins from the margin are 20 per cent higher.
Consumers like engineer Tommy Lim, 26, are rejoicing. He said:" Why buy the more expensive one, when you have the cheaper version? No doubt it comes with less frills, but I don't care because I am just going for the songs."
But there are hardcore fans like Sandra Chen, who insists on buying the locally-packaged version. The 18 year-old student said:"I believe that I am paying more for the quality, as I have heard from friends that the parallel imports CDs scratch easily after a few spins.
Adminstrative officer, Christina Tan, 21, agreed. She said:"If you buy the cheap one and you ask Jay Chou to sign on it, do you think he will sign?"
GOODWILL GESTURE
Like these fans, some retailers, like CD-Rama and Music Junction, have chosen to stick by the locally-manufactured CDs. According to Music Junction manager, Lenz Neo, the company's decision not to stock parallel import CDs was a gesture of goodwill towards the record companies.
Mr Neo is standing by the decision, even though he admitted that sales have taken a dip after "losing a share of customers" who will go for parallel imports.
He said:"There's no point in us stocking parallel imports now. We will only be creating trouble for ourselves (by offending the record companies)
"The profit margin used to be larger for such CDs but no longer, since everyone's bringing them in."
On their part, record companies here have been trying to make their products more attractive by bundling free posters, premium or VCDs with the CDs, and even bringing artistes down more often to do promotions.
Universal Music 's product manager Connie Low, who has artistes like boyband Energy and Wilber Pan in her stable, says her company has been absorbing the additional cost of such promotions, leading to a 10 per cent dip in profits.
Even then, the benefits of the promotions may not be reaped solely by the record companies.
Play Music's marketing director James Kang lamented:"Every time we bring an artiste down, we have to hope and pray that people will buy our CDs, and not go straight for the parallel imports."
The Recording Industry Association of Singapore (Rias) is aware of the problems that its members are facing.
Its CEO, Mr Edwards Neubronner, told The New Paper:"Since the start of this year, we have noticed that there's been an even more significant increase in these (parallel) Imports, especially from China."
Mr Neubronner says that the association had submitted a proposal to the Intellictual Property Office of Singapore (Ipos) for amendments to the copyright law when the Ipos called for public consultation on the Copyright (Amendment) Bill 2004 this year.
However, in an email reply, Ipos:"Parallel importing of goods of legitimate origin is allowed in Singapore. The US-Singapore Free Trade Agreement, with the exception of the provision on parallel importation of pharmaceautical products, does not require Singapore to alter this position. Therefore, impeding law changes to our Copyright legislation will not affect this regime"
Record companies here are still hoping for the Government to help them. But in an email reply, the Ministry of Trade and Industry said that the Government does not intervene in the economic decisions of companies, unless there are "overriding social or political considerations".
"We operate a free market system which allows open competition among not only domestic firms but also foreign firms and products. Consumers stand to benefit from wider choices and lower prices from such open competition."