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VOL.4 September 2012
Rural Rebranding
Farmers put down plowshares in favor of violin making, but need their own brand to prosper
by Hou Weili

From Farm to Factory: Hands used to plant crops now help to make music (YANG JIA)

Profit line flaw

The financial crisis that smacked the world economy in 2008 also affected the violin town.  "Actually, violin manufacturing is similar to garment processing," Zhao Wei, Deputy Director of the Administration Committee for China Music Valley in Pinggu, told ChinAfrica. He explained that the [violin] industry was transferred from developed countries, first from Europe, to Japan and then to China, to take advantage of lower cost labor resources. "So making violins faces the same problem as China's manufacturing industry: low profit margin," he added. 

Violins made in Donggaocun were mostly sold on the international market. Huadong Musical Instrument Factory, the largest violin manufacturer in the town producing 25 percent of the world's violins, exports 90 percent of its products to European countries and the United States. "Without our own brand, we have to sell our products by labeling trademarks of well-known foreign violin manufacturers, and thus lose our say in deciding the price," Zhao said.

Larger manufacturers produce medium and low-grade violins. The ex-factory price of those sold on the international market at several hundred dollars is around 200 yuan ($31.4). "So the profit of each violin is only about 10 yuan ($1.57)," Geng Guosheng, owner of a violin workshop, told ChinAfrica.

"It is imperative to upgrade this industry," Cui Changming told ChinAfrica. An agent from Taiwan, Cui has been trading musical instruments for more than 20 years and is quite familiar with China's violin manufacturing.

IN TUNE: Violin manufacturing in Huadong Musical Instrument Factory has brought major opportunities to local farmers (YANG JIA)

Brand awareness

Manufacturers and craftsmen in Donggaocun realized they face major challenges in the future. "The only way out for us is to increase the added value of our products," said Liu Yundong, General Manager of Huadong Musical Instrument Factory.

To promote its own brand "Huayun," Huadong has actively participated in international competitions. At the first international competition for violin-making held in 2010, eight violins made in Donggaocun stood out, ranking among the top 50 of 300 violins from countries across the world. A violin from Huadong was rated the fifth best.

"It's a good try. But the costs of building a brand are relatively high," Cui said. "There must be a complete promotion strategy and enough financial backup," he added.

Liu was not alone in efforts to upgrade this industry. The local government has a plan on building the China Music Valley, a national music industry park, to absorb musical talents and investments. The plan has been included in Beijing's 12th Year Plan (2011-15) for the development of cultural and creative industry.

"The park will be a music making base incorporating instruments and audio products making, and attract music talents and financial resources to improve the added value of the current violin making sector here," Zhao Wei said.

"It will be a new engine driving the economic growth of Pinggu District where Donggaocun is located, with an aim of providing more job opportunities for local farmers to ensure they have a steady source of income," Zhang Lixin, Deputy Director of Pinggu Development and Reform Commission, said. It is estimated that 50,000 jobs will be created and the annual output value reach to 30 to 50 billion yuan ($4.7 to 7.8 billion) when it is built.

Guo welcomes the advent of the music valley. She hopes that making violins can be a life-long job and believes the local livelihood will change positively in the future.

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