U.K. specialist uses global connections to bring music gear to developing markets
We in the music products business routinely call our industry “global” without accounting for vast portions of the map. Outside developed markets in the Americas, Western Europe, East Asia, and Australia, distribution networks get spottier, shipping more complex, demand harder to measure. So who serves the music customers of Africa, the Middle East, Southeast Asia, and even Eastern Europe? Ten years ago in the U.K., the British Band Instrument Company (BBICO) was formed to do exactly that. Founder Alun Hughes, then a 30-year veteran of the music products industry, had built a career in export sales with companies including Besson and Boosey & Hawkes, with a special focus on those less developed regions. When the Boosey & Hawkes Group was sold to venture capital investors in 2003, Hughes laid the groundwork for an independent company to serve global customers he’d worked with there before the sale. Over the next decade, the business grew into a multi-pronged effort to link music products with customers—whether it be matching manufacturers with distributors or providing local ensembles with one-stop supply solutions. In the process, it’s helped open up markets that have only begun to be tapped. As Brand Manager Alex Smith sums up, “We use our knowledge, expertise and reputation in the developing world to act as sales and marketing agents for numerous brands, as well as supplying government tenders and the world’s finest marching bands.”
Located in the Edgware district of North London, the British Band Instrument Company originally handled only a narrow slice of the business it juggles today. Based on Hughes’s network of contacts in the Middle East and Africa, the company first established itself as a supplier to military and marching bands in those regions. From there, it would grow in both geography and mission, developing extensive knowledge of local cultures and import/export laws. Now active in markets from India to Eastern Europe, it manufacturers its own brass and woodwind instruments under the Westminster London label, as well as acting as a conduit for other brands. Through its “Brand Representation” branch, BBICO works with music manufacturers worldwide to cost-effectively set up reliable distribution and retail networks in developing countries. As Smith adds, “We then manage that network in terms of both sales and marketing to ensure that a brand achieves the maximum level of exposure and sales.” Among the most recent brands to set up sales networks through BBICO are Faith Guitars, Eko Guitars, QuikLok Stands, Acus amplifiers, Jo-Ral mutes, and Giardinelli products.
Outside its distribution work, BBICO’s other main function is what it calls “Band In A Box.” Going back to its early days in business, the company has excelled in turn-key services for ensembles in developing regions: taking orders for a whole ensemble’s worth of instruments and accessories and filling those orders through its manufacturer connections. For military and marching bands, it even handles uniforms and customized items such as drums emblazoned with the band’s insignia. Whenever possible, says Smith, the gear is delivered in a single sea or air shipment. “When dealing with a number of manufacturers and suppliers, we often find ourselves dealing with varied lead times and product coming in on various different dates,” he explains. “If one supplier incurs delays, this can result in a domino effect to the whole shipment. So we try our hardest to micro-manage all of our supplier orders to ensure that we achieve a prompt and smooth shipment to our end customer.”
While the logistics can be about as daunting as they sound, BBICO’s U.K. headquarters is well placed for economical shipping to key regions including Eastern Europe, the Middle East, and even Africa. Time zone and travel issues, too, are less challenging than they would be from North America. Somewhat trickier are issues of currency fluctuation—not just among the company’s trade currencies of U.S. dollars, euros, and pounds sterling but in petro-dollar currencies determined by the price of oil. In some cases, Smith says, BBICO works directly with governments to make sure they can budget for the cost of the instruments. All told, without the infrastructure of developed markets, it takes a special skill set just to record an order and ensure that it can be delivered.
“There has to be a strong local contact, someone who knows the market and ha experience trading in the area,” says Smith. “Sometimes these contacts may be based in neighboring countries if the local infrastructure is not appropriate. Where there is absolutely no traditional route to market, these contacts often come through government departments or the military. Military music is key for these markets because it gives countries a low-cost opportunity to instill national pride and identity—and also provides opportunities to assist them in promoting Western music and instruments.”
Now active in 74 countries, the British Band Instrument Company projects to keep expanding the network of distributors, retailers, and government departments that make its operation possible. What’s more, adds Smith, it sees itself at the crossroads of distribution channels that will only open more doors for the music products industry as time goes on. “The distribution pattern in these areas is one that continues to evolve and allows significantly more room for growth than you would find in other parts of the world,” says Smith. “Distribution chains are also continually getting shorter and we are perfectly placed to take advantage of the opportunities that are created as a result.”
BBICO Music Trades Company profile taken from http://www.musictrades.com/profile26.html
