Vibhor Khanna, National Sales Manager Harman Professional

On market and technology trends

Microphones form an integral part of the pro audio equipment suite and the wide spread usage of microphones in various pro audio applications drives a large part¬? of the demand for professional audio.

There are tremendous opportunities and scope for growth in terms of innovation and technology. Given the awareness and demand for evolving entertainment avenues in India, the demand for microphones in pro audio applications has surged.

Influx of new players - national and international - has increased the competitiveness in the industry, especially in the organized sector. Technology and innovation in microphone design, functionality, and features has been given higher importance by all major players. Harman has launched microphones with new improved features like USB series from AKG by Harman, which are integrated with Smartphone Apps. Microphones are now trendier with customization, signature styles, and colors that set them apart.

Customers want the best - whether it is with reference to product features with superior/advanced technology, after-sales service or factors that are crucial for influencing the purchase decision. The evolving trend of home studio with technologies (digital multi-track recording) being adapted to home environment is increasing the demand for studio microphones and headphones.

There has been considerable activity around the digital microphone technology and product innovations seem to be the order of the day - live or broadcast applications will be hugely benefitted from new level of innovation and performance by digital microphones.

In the music segment, focus is on specialized microphones (for instruments like guitars, pianos, and drum kits) that can enhance musicians' band's performance at gigs. Accessories like windscreen and charging units for microphones are finding higher demand and essentially customers seek the best support in terms of consultation on the microphone applications and suitability as per their requirements.

In terms of pricing, this segment is again not isolated from the general business woes such as price cutting, intense competition, and differential tax structure. However, the increase in competition and influx of new players has ensured that there is a wider range of microphones available for each and every application and price points, suiting every requirement of pro audio. At the same time, the manufacturers are ensuring the availability of microphones with attractive packages and offers.

On key factors driving the market

The Indian economy itself is on a high growth trajectory and we are bullish regarding the recording and broadcast segment and the installed space, especially with better business prospects after recession. The forecasted growth rate for these industries (television industry at 14.5 percent, film industry at 9.1 percent, music industry at 8 percent till 2012) has given the microphone industry an additional reason to cheer. The growth of professional audio industry is an indication of related growth in the microphone industry.

The other reason for the forecasted growth is due to the burgeoning infrastructure growth due to globalization and India's positioning in the world market in terms of economic and industrial growth and the ability to host world class events which has led to better infrastructural outlays.

Events and programs such as beauty pageants, Formula 1, and reality television shows have witnessed increased use of wireless microphones transmission channels, each capable of handling multiple microphones, just to link on-field announcers to the transmission trucks. Major sound rental companies are increasingly seeking the best quality microphones in order to accommodate the demanding technical riders by international artistes performing in India.

With the increasing exposure of the Indian consumers to the international standards of infotainment technology, some of the available opportunities in the install sound segment are major buyer of microphones for hotels (almost 500 new hotels and conference rooms are expected to come up by 2012 in India) and numerous stadiums proposed to be constructed in next 2-3 years. Entertainment destinations such as Kingdom of Dreams, theme parks, House of Worship, shopping malls, and office spaces with world class facilities and auditoriums hold great potential for microphones (both wired and wireless) in PA installations.

For the microphone industry, all these trends mean more revenues and better growth prospects in the coming years. There is a scope for continuous innovation and advancement of features that can help in addressing the microphone requirements of the market.

On sales trends

2011 can definitely be termed as a year of turnaround for the microphone industry in India. Overall, it was an eventful year for Harman with good growth prospects in terms of microphone sales. We had a clear focus on the market penetration for AKG microphones, combined with increased brand awareness and higher level of customer interactions through road shows and trainings. We have observed a significant increase in the demand especially for the recording and broadcasting segment. Apart from that, AKG conferencing systems were also sought after by customers in installation space. In the past one year, tour sound segment has also witnessed a higher uptake for microphones and wireless systems.

With enhanced emphasis on audio quality delivered to end users, the prospects for professional microphones in India for the upcoming year are very encouraging. The Indian microphone market is showing signs of stability and growth with increase in the set-up of recording studios, live concerts, upcoming bands, and private broadcasters as potential buyers of microphones. Manufacturers will focus on launching newer models in both wired, and wireless categories according to the market demand and products which are application based, user friendly, packed with latest technology and cost effective suitable for various segments.

On major customers

In India, AKG by Harman microphones have been used by several leading recording and broadcast studios, cable and satellite channels (both regional and national) and other pro audio segments like musicians, tour sound/sound rental companies.

Harman is the official sound partner for Kingdom of Dreams (a first of its kind mega project, showcasing India's performing arts and culture). AKG microphones (approx 80 of them) were used in the Kingdom of Dreams for various applications (handheld, body pack, wireless, podium microphones and other microphone accessories).

Recently, AKG CS5 fully Digital Conference System was installed at the renovated commissioning room and lounge in FICCI. This conference room with a seating capacity of 260 people is used for discussion and high level conference proceedings. The AKG CS5 Digital Conference System is a rugged Conference system with its good tonal quality, adequate volume, no feedback and good speech intelligibility making it a benchmark in install of its kind.

AKG has also some loyal users in musicians and lead vocalists like the legendary Quincy Jones, Frank Sinatra, Eric Clapton, Aerosmith, leading percussionist in India Ranjit Barot, Sivamani, Nise and various other maestros and artistes who swear by AKG microphones (both dynamic and c and wired and wireless) for various applications like vocals, instrument microphones, in-ear monitoring, recoding microphones for their dynamic needs.

On USP of your products

AKG acoustics has been renowned providing the highest quality in audio and was acquired by Harman International Industries Inc. in 1994. AKG caters to both the professional and consumer segments with microphones and headphones with a vast range of wired and wireless microphones catering to demand of various segments and have set industry benchmarks, meeting customer demands and specific needs while maintaining consistently high levels of quality in production.

With constantly evolving microphone technology and innovation and several newer, patented technologies such as Varimotion design, AKG is working on introducing newer models in order to adapt to market demands for various segments. For example, AKG's New iPhone App delivers freedom, flexibility, and functionality for mobile monitoring of wireless microphone and IEM systems in addition to great sound and reliable performance.

The percentage of wired and wireless solutions offered to the various applications would be roughly divided into 50:50. While in the live sound space, both wired and wireless microphones are preferred by musicians, the broadcast and recording industry goes for with AKG ranging from C series (C414 -XLS, C4000 B-BC, CK 69ULS, CK 98, D230) Blue Line to Perception series best suited for demanding instrument and vocal performance. The D230 series is used in TV, motion picture, video production, ENG/EFP (outdoor) and recording. In the wireless series DMS 700 (DSR 700 and DHT 700), the DSR 700 uses both frequency bands and a customized frequency table that allows operation of more than 100 channels simultaneously.

The main objective with the brand building exercise would be to educate the Indian professional audio industry on the genuine microphones and accessories, to counter parallel imports and counterfeits and also to increase the awareness and technological updates through regular training and customer connect programs. Other strategic initiatives apart from the regular marketing initiatives are to educate the customers about the technology and the application-based products through road shows, trade events, advertising, artist endorsement campaigns and through social media channels.

India is definitely a key focus market for Harman and also for several other players in this industry and it is due to continuous development, paradigm shifts happening across all the related industries. Customers in the various segments of professional audio industry are looking at complete solutions and also toward a comprehensive solution provider like Harman India right from the input chain of the audio to processing to output, combined with service center, pan-India reach which can support and deliver any requirement at anytime.

The company is committed to Indian market and we are confident that we will continue to provide the best of the technology in microphones to our Indian customers, while constantly innovating with portfolio enhancements. The entire range of AKG by Harman microphones fits perfectly in the Indian broadcast industry and expects the market to grow significantly along with the growth in the infotainment industry.