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| Tonium brought attention to its Pacemaker DJ product |
Despite an economy performing as poorly as the Detroit Lions, NAMM was well attended last month. The trade show reported only a small 3 percent decrease in registrants, compared to 2008, to 85,799.
Of course, that doesn’t mean the economy didn’t take its toll. Some manufacturer parties were eliminated or scaled back. Some companies brought smaller staffs to the show; as did dealers.
Although some manufacturers told the Music & Sound Retailer they were unhappy with traffic on the first and last days of the show, Jan. 15 and Jan. 18 respectively, many said that overall, NAMM was better than they expected. The theme of this year’s show was “Come Together,” and many did just that.
For example, many dealers came together to listen to NAMM University sessions. And many members of the press came together to witness Alicia Keys unveil what she called “Alicia’s Keys,” or its official name: the Yamaha AvantGrand piano.
The first thing any attendee immediately noticed was the beautiful weather that often hovered in the low 80s. It was perhaps the best weather for a NAMM Show ever. The second thing attendees noticed was the heavy concentration on security. Driver’s licenses were checked every time you walked onto the show floor. Identification was also required when you traveled up the escalators to visit booths on the second and third floors.
One could argue NAMM was a six-day event this year, which started with the Music Distributors Association gathering at Disney’s Paradise Pier Hotel on Jan. 13. On Jan. 14, the Guitar and Accessories Manufacturer Association (GAMA) held one of its most fascinating breakfasts ever. Amazon.com’s Noah Herschman, Craig Johnson of Musician’s Friend, and Jim Hovey of American Musical Supply were the invited guests. Each answered several questions about their businesses, one of which was: “Do you think Internet businesses are attracting customers from different demographics?” “Absolutely,” said Johnson. “Whether it’s Guitar Hero or music instruction that draws the customer to music, the Internet allows people to do research in the confines of their own office. I think people are comfortable going on the Web, particularly for entry-level student instruments. So we see an increasing amount of activity in those lower price points.”
“It’s amazing what people will buy online,” said Herschman. “Diamond rings, shoes, etc. But a recent study showed that 69 percent of people who researched a product online first bought it in a bricks-and-mortar store. Only 31 percent who visited a bricks-and-mortar store ended up buying that product online.”
“Things have changed,” said Hovey. “My son sits and watches television with a laptop in his lap. If he has a question about anything, he jumps onto Google and gets an immediate answer. People want immediacy of information.”
Wednesday was also highlighted by the Alliance of Independent Music Merchants (AIMM) meeting. AIMM members gathered in groups to generate ideas spanning the whole gamut of the industry, including great ways to motivate employees and how to increase sales.
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| Joe Lamond laughs at a Gene Simmons comment |
Rock and Roll
all Morning
Thursday morning’s Breakfast of Champions was well attended as always. But this year, NAMM president and CEO Joe Lamond’s question-and-answer format was a little bit different. OK, a lot different. The morning began innocently enough with Lamond borrowing Yogi Berra’s famous line: “Predictions are really tough, especially when you’re talking about the future. Who knows what this year is going to bring?”
Continued Lamond: “But NAMM is the best place to be to determine those answers. You will find those answers. The entrepreneurial spirit that brought you your success will get you through this next phase. NAMM has watched this since 1901. We have seen it all and survived.”
An interview with NAMM attorney Paul Cuomo, partner at Howrey LLP, about the FTC investigation, came first. The investigation is ongoing and when Cuomo told Lamond he couldn’t discuss any aspect of the case, the latter jokingly thanked him for his time and told him it was OK to leave the stage. Instead, Cuomo talked about guidelines for what could and could not be said during NAMM sessions. Topics prohibited from discussion included manufacturers and dealers discussing pricing matters.
The president of Yamaha Corporation of America, Mitsuru “Mick” Umemura, followed. Umemura discussed the need to draw more music makers into our industry and how successful Yamaha’s Music School has been for 50 years in Japan doing just that. He continued by saying he was optimistic about the future. “Ten percent of the world’s population plays music. So 90 percent of the population is wide open.”
After a question-and-answer with three dealers, Lamond really shook things up by “Calling Dr. Love:” Gene Simmons of KISS. Simmons had a lot of advice for you as retailers, and boy, did he ever “Shout it Out Loud.” Simmons, who was originally supposed to answer Lamond’s questions, instead turned the stage into his own soapbox. The veteran of “The Apprentice,” “Ugly Betty,” and several other shows grabbed the stage by storm and delivered a simple but often hilarious speech that was the talk of the show floor just one half-hour later. Immediately after walking on stage, Simmons asked a dealer how he made money.
“Music retail” was the answer.
“Not enough,” responded Simmons.
Simmons asked another retailer how he made money.
“I teach,” was the response.
“Do they come to you?” asked Simmons.
“Yes.”
“Not enough.”
One of Simmons’ words of wisdom: have good-looking women work at your store. Although this approach may not work as well if you often serve mothers who bring their children into your store, Simmons delivered the advice in such a forceful manner that it was hard to ignore; or at the very least, hard to avoid laughing at. For more on Simmons’ speech, please check for a transcript in next month’s issue. However, please keep in mind, Simmons’ comments are PG13 rated at the minimum.
Friday offered several events including another NAMM breakfast session, NAMM’s Recreational Music Making annual meeting, and a host of parties at night. During the morning session, “The BIG Issues: Trends and Tactics: The Next 12 Months,” Bill Hinely moderated a panel discussion on some of the new avenues retailers should look at to improve their businesses and reach new customers.
First on the panel was PromoPower’s Larry Mersereau, who said the next big sea change is smart phones. An entire generation is growing up with them and everyone has one. “If not,” he joked, “get one.” Mersereau suggested two ways retailers can get in touch with the smart phone generation. The first piece of advice was to call the company that handles the store’s Web site and get a domain name that ends in .mobi. This makes your Web site specially formatted for mobile devices. The second suggestion was something retailers can implement every day in their stores: ask for cell phone numbers. Ask customers if it’s OK to send them texts about upcoming promotions, sales, and events.
Not only are younger players communicating via mobile devices, but as Buzz Builders co-founder Hal Lubin pointed out, they can also be found on social networking sites. Retailers should follow suit, but do so in a responsible manner because “people don’t want to be advertised to,” he said, likening social media to a big cocktail party. “You listen to what your customers are talking about.”
As Youthography’s Mike Farrell added, your customers want to be talked with, not to. “It’s about you understanding their whole world,” he said. “Talk about other programs and issues that are important to them, even if they’re not related to music, and you’ll have their ear when they want what you offer.”
“The cost of social media is time,” added Lubin, “and the value you get back is more than worth it. You can find 30 minutes every day to be successful.” A good way to do that is to tap young employees. “They’ll jump at the opportunity to do extra work if they can learn something new and participate in the business model more,” said Farrell. “It’s an opportunity for them to learn the business and it’s good for retention.”
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