Asia Pacific Quarterly: Australia Makes The Best Of It

A regional trade fair and a push for Sydney mark Oz biz's determination to take advantage of a difficult situation.
MELBOURNE‹Australian music executives could certainly lament the impact of the Asian economic crisis‹the lost markets, the fall of export prices, the slowed economic growth, the tours and releases put on hold and the decision of Singapore investor Ong Beng Seng to bail out of the Brashs music-retail chain in Australia, forcing the company into temporary administration.
Instead, the music industry here is taking a cue from the Australian government.
In March, the government announced it was using Asia's downturn to establish Sydney as a leading business and financial center in the region, overhauling corporate laws to reduce the cost of doing business, while making Australian cities more attractive as a site for regional headquarters.
The Pacific Music Circle conference/trade fair, held in October in Sydney, is marketing itself as the region's major event following the absence this year of MIDEM Asia.
"We're actively targeting those who wanted to attend MIDEM," says promotions & marketing manager Nic Allum. "We're not only highlighting the music from Australia, but also spotlighting Sydney as a cultural and tourist destination."

STRENGTH THROUGH HICCUPS
Yet, despite mixed signals from Asia about the extent of damage and time of recovery, Australia is keeping firm with its Asian partners. "It doesn't change our long-term commitment to the region," says Charles Caldas, CEO of the Shock Music Group. "As far as we're concerned, this is just a hiccup."
Adds Phil Tripp, publisher of the Australasian Music Industry Directory, "This economic hiccup will separate the real players from the cowboys, and we'll see the emergence of a stronger music industry there. For that reason, we're dedicated to expanding our directory's Asian listings because it's the only contact sometimes between Western and Asian companies."
Ocean Records of Australia, which makes records designed for Asian ears, counts on Asia for 95% of its business. Some releases are delayed, but Ocean's seven partners‹including Golden Pony in Hong Kong, Doremi in Korea and Sipta Mitra in Indonesia‹are large enough to absorb much of the downturn. Darren Clark, director of international product services, says, "We're showing our solidarity and commitment to our partners. We have increased our marketing and promotion budget by 25%, giving them videos and point-of-sale items."
Ocean increased the availability of its acts to work the region. Lemonjuice spent four months in Japan doing media and live gigs, while teen popster Mark Allen and balladeer Kristy will spend quality time in Japan and Korea. "It makes these acts part of the scene, and the local record companies feel more involved if they stay for more than a week or two," says Clark. Ocean is widening its range of partners to reduce its risks; it's also widening its market. Negotiations are taking place for the act Sali's June-due album to be issued in the U.S. and Canada.
Shock has made a successful foray into Asia, with a network of distributors, charting releases and direct signings. It was a blow when one of its partners, Pony Canyon, shut down then reorganized its Asian operations and publishing (the two companies released records in each other's markets). But Shock continues to find success in Japan. It signed Bodyjar for release through JVC and Big Heavy Stuff and former Pixies leader Frank Black (whom Shock has Asian rights to) on Quattro.

LADYBUGS AND MUSHROOMS
"The Japanese market is said to be flat, but they are still interested in the right records," says Caldas. Shock will concentrate on more U.S. releases through its San Francisco office, opened last year. One of its signings, Taiwanese female punkers Ladybug, received U.S. college airplay for its "Ladybug 1998" album.
Mushroom Distribution Services, which found a niche market for its cutting-edge dance compilations (through Hong Kong distributor Foam), had intended to expand this year.
"Those plans are on hold for the time being," says GM of sales Val Eimutis. "We'll concentrate on safer markets, such as Hong Kong and Singapore and perhaps Taiwan." With Asia no longer a priority, MDS will seek an active role in the U.K. and U.S.
Queensland's industry association Q Music helped gain inroads in Asia for independent labels such as Pod and Biff Bang Pow and management companies.
We achieved a great deal of success, but we've adopted a wait-and-see approach," says Rose Pearse, business affairs manager. "We see a lot of potential there, but why go in there waving your arms when little is going to come of it? Q now is turning to Europe and such Pacific countries as Fiji and Papua New Guinea for possible markets."n