The talking machine world (Jan-Dec 1913)

50 THE TALKING MACHINE WORLD. FOREIGN TRADE IN TALKING MACHINES AND RECORDS. The Special Report Issued by the United States Government Bearing on Talking Machines Shows the Wide Scope of the Business in Canada, Central and South America, Germany, France, Russia, Great Britain, Asia, South Africa — in Fact, Everywhere The Opinions of the Local Consuls Regarding Methods of Selling and Other Matters Are Interesting and Valuable — Shows the Importance of the Industry Throughout the World — Great Export Markets for American Machines and Records. [In The Talking Machine World for November and December there were published two instalments of the Monograph, issued by the Department of Commerce and Labor, on the foreign musical instrument trade of the United States, relating directly to talking machines and records. The first instalment referred particularly to the present business and the opportunities existing in Central and South America, which is considered to be the section which offers the natural field for the export trade of this country. Last month, trade in Germany, Great Britain, Italy, Switzerland, Russia, Turkey and Greece was the important subject under consideration. The closing instalment this issue covers a number of widely separated countries, running from the Orient to South Africa. — Editorial Note.] Asia. The use of talking machines has spread to all countries of Asia, and the trade presents about the same features as in European or American markets. The fact that the "talker" can be easily adapted to any language has given it a quick and wide popularity in the Near and Far East. Disc machines are practically universal, and there is apparently no particular choice as to the character of the selections. Throughout the whole continent, 'however, the market for the best grades of machines is small, and in many none can be sold. American machines have found a considerable sale only in China, Japan and (to a smaller extent) British India, though they are known in most other countries. As in European countries, the German machines control the market for inexpensive articles. In Asiatic Turkey, where the popularity of the phonograph is declining, they share the market with the English makes, largely if not wholly the products of the Gramophone Co., and in IndoChina with the French Pathe machines. In both places there is a small demand for the superior machine, but conditions are not encouraging for the sale of American instruments. The same thing is true of Siam, where machines to the value of $21,013 and records valued at $38,095 were imported in 1910, but where practically the whole trade is in the hands of English, French and German exporters. Most of the machines imported into Vladivostok in the past have been Victors, of German make, but recently some Russian machines have made their appearance. In the Straits Settlements the countries from which phonographs are imported, in order of their importance, are Germany, England, the United States and France. Germany's lead is due to the extremely low prices at which the German products are sold, the attractive design and finish, and the very liberal credit terms. The English makes are the product of a factory using American patents and operating in conjunction with a leading American company, and are practically identical with these American machines. American and French sales are limited, the former largely on account of the high prices and the apparent unwillingness of the manufacturers to make minor changes in finish and equipment demanded by the trade there, which is largely with the native population. While the German machines are generally conceded to be inferior in mechanical excellence and durability, they sell best because the natives will not consider wearing quality as against cheapness and attractiveness. Machines retailing at more than $50 have an extremely limited sale. In Java there is a fair market for all grades of talking machines which are sold for $10 to $100, and most of which are supplied by Germany. That country sends about $50,000 worth annually. Apparently there are no American machines on the market. In most countries of Asia quotations should be c. i. f., but in the Straits Settlements sales are made, as a rule, f. o. b. with both European and American firms. China. There is a good market in this district for talking machines and one which gives promise of future expansion. The Chinese here, as elsewhere in the country, have taken very kindly to these instruments, and have them in their homes, shops and places of amusement. The value of the phonograph as a crowd gatherer is already recognized by them, and many of the large shops in the native city have one or more playing all day long. The value of machines of this kind and accessories imported into Canton in 1909 was $10,758, and in 1910, $16,239, most of which were apparently American. In 1909 the value of the phonographs and accessories imported into the whole of China was $121,029, of which the United States supplied $39,291 and France a little more than half that amount, with Canada a close third and Germany and Belgium following with about $18,C00 each. There are comparatively few machines owned by foreigners in Canton, and it is the Chinese market that must be worked. The talking machine for the local market is a cheap, ornate instrument, with the disc records of Chinese words and music. One of the chief qualities which appeal to the Chinese is loudness. No machines with concealed horns are on sale here as yet, but it is said that a trial shipment was easily sold in Hongkong at $15 each, and it is probable that they will soon be on sale in Canton. Instruments sold here retail for $5 to $63, the most popular being the $8 to $12 grade. The question of how best to push the sale of phonographs in this district is involved in the general question of how to push sundries of all sorts. The representatives of American phonographs are now certain foreign firms in Hongkong, and under this system a fair sale has been attained. The machines are sold in Hongkong to the local native retailers, who know where to look for them. Much might be accomplished by advertising in the Chinese press and by posters, thus keeping the phonograph always before the eyes of the native public. If American manufacturers wish to alter the present system there are several alternatives open to them. They may open their own offices in the district, or leave their agencies where they are in Hongkong, or transfer their agencies, so far as this market is concerned, to foreign firms in Canton itself. It is doubtful if the present local market warrants the opening of a special office by any American phonograph manufacturer, but a special representative might be sent out for a time to look over the market and perhaps carry out a scheme of advertising. Conditions in Hongkong, Shanghai, Swatow, Tientsin, Manchuria and the Harbin districts are pretty much the same as in Canton. The sales of American machines are large and steadily increasing, the United States imports of these specialties heading the list. India — Bombay. Natives here are very fond of machines. The Gramophone Co. (Ltd.) has established in Calcutta a record-manufacturing plant and its output is the most popular in India. These records are all discs. Probably 75 per cent, of the records sold in India are manufactured in this country. The greatest demand is for records in the Hindustani, Gujerati and Urdu languages, comprising songs, humorous sayings, speeches, etc., just as in the English language. There is a small demand on this market for the best phonographs. German machines are sold here for as low as $2.90 and dealers say that dozens of machines are sold for less than $13 to one for more than that. A few machines with concealed horns are marketed, but the percentage is very small. American machines are not imported to the same extent as they were a few years ago, probably because of the high prices and because the American manufacturers have not solicited the trade as much as they formerly did. Another reason perhaps is that Americans do not supply records in the native dialects. German machines apparently lead in sales, with Swiss next, and American, French and English following in the order named. Sales from the importer to the user of a machine are invariably for cash. Practically all sales to importers are made by the manufacturer upon payment against draft. Madras. At present there is hut one American machine in use here, an American Victor-Victrola, with disc cabinet attached, which would retail in the United States at $200. The selections rendered by this instrument are far superior to those of any European machine introduced, but while this is conceded the type is too large and expensive to have an extended sale. Instruments of a corresponding grade, but smaller ana less expensive, and preferably with concealed horn, would probably find a good market. In all machines constructed of foreign woods, the cases invariably warp. The native teak wood is the most suitable for such purposes, as it is unaffected by the climatic conditions here, and it is probably not more expensive than other hardwoods. The current price of such wood is about $1.18 per cubic foot c. i. f. New York and 81 cents f. o. b. Madras. Importations of talking machines and accessories into Madras in 1910-11 amounted to $7,907, of which the United Kingdom sent $2,917 worth, Germany $2,793, and the United States $253. Japan. The principal factor in the phonograph business of Japan is a manufacturing plant located near Yokohama, which is owned and managed chiefly by Americans. This enterprise is handled by American experts both in the manufacturing and. the selling end, and in the factory American over, seers direct the work of native employes, some of whom produce approximately the same results as workmen in the United States at about one-fourth the cost. The output of the factory is sold by a selling company called the Nipponophone Co. (Ltd.), which has thirty-one branches and 106 agents and which has been notably successful. One of its methods has been to make every dealer a stockholder. According to the plan the dealer is required to deposit approved security for goods sent to him on consignment and when he buys stock in the selling company and pays cash for it he is allowed to deposit his stock as security, besides getting a discount of 2 per cent, on goods purchased. The company sells the machine at cost and gets its profits from the sale of records. There is small market for high-grade phonographs and those with exposed horn are in greatest use. The sliding panels which are used in Japanese houses instead of doors and windows are usually kept open and more of the sound escapes than in foreign houses. The machine with considerable volume of sound is therefore best liked Africa. Apparently the only African markets for talkingmachines worth considering by American manufacturers are in Egypt and British South Africa. In Morocco about $20,000 worth of machines are annually imported, but they are mostly from P'rance, and no American makes are represented. France and Germany also supply most of the articles of this kind in Algeria. EgyptThere are a large number of the better grade of phonographs in use in Cairo, and machines costing as much as $150 find a ready market among the wealthier natives. The phonograph with concealed horn was introduced a year or so ago and some few sales were effected, hut most of the machines sold are of the other type. Most machines sold are imported from the United States, but there are also a large number from France and Germany. The American phonograph costing between $40 and' $50 is usually preferred, as are disc records with operatic music. American phonographs are also preferred in