Research Report on China Audio Equipment Industry

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Research Report on China Audio Equipment Industry
July 2008

Background:
Today in China, Audio Equipment Industry is going through revolution as; new generation of Chinese audio manufacturers are offering their consumers a radical value proposition by the industry's standards: great sound at great prices. Chinese audio equipment manufacturers are using sweet-sounding and attractive-looking components that cost about a quarter of those from Western and Japanese manufacturers, to make their products popular in the market. Yu Jian Bing, who owns Chinese amplifier manufacturer Classic Audio, said local audio buffs used to tinker around and as they got more sophisticated, and China's overall electronics capabilities improved, they just got more ambitious and came up with their own designs and products. "Nothing was planned," Yu said. "It just happened."

Over the past two years, several Chinese boutique manufacturers have surprised the audio world by unveiling a range of fine products. For example, the futuristic-looking SCD-T200 CD player from Shenzhen's Shanling Digital Technology Development, going for about $2,000 in the United States and Europe, has impressed audiophiles and is competing with coveted brands such as Meridian and Linn Sondek. Ling Junyan, chief designer with Cheng d u Xindak Electronic Co. Ltd., which makes amplifiers and CD players, said “Hi-fi is a complex thing -- it's about music, it's about sound but it's also about how it makes someone feel." Chinese audio companies have caught onto this, and in the last year models from companies such as Shanling have been very chic. But they still have a long way to go to combine quality, reliability, and design, said Ling. There are number of foreign audio companies which manufacture their products in China. Infact, some foreign marketers are even importing Chinese products and re badging them with exotic Western brands. Zhao Dao, a hi-fi expert in southern Guangdong province who has a hi-fi radio show...
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