Sonor’s Long Road to China

[Frank Godiva]

July-August 2000 Issue of Drum Business

[Frank Godiva]

“Story and photos
by Rich Watson
Mercedes-Benz, BMW,
and Porsche
automobiles. Neumann
microphones. Sonor
drums. All state-of-the-
art. All expensive. All
very German.
But for some, Sonor's
identification with this
elite category was
blurred when they
recently began
manufacturing entry- to
mid-level drumsets-and
doing so in the People's
Republic of China. Was
it a risky move, image-
wise? And marketing
considerations aside, can
the workmanship,
performance, and
exceptional engineering
we associate with
Germany in general and
Sonor in particular-be
transplanted? Or does
something get lost in the
"translation"?
Sonor replies
emphatically "No" —
and they invited DB to
their Tianjin, China
operation to see why not.
They also asked us to
help them set the record
straight about their
recent past, as well as
their present operations
and plans for the future.
Alive And Kicking,
East And West
"Three or four years ago
Sonor went through a
tough time," admits
Karl-Heinz Menzel,
Sonor's vice president of
sales, marketing, and
product development.
"The German economy
was not so good. But our
biggest problem was
how our competitors
worked against us.
They spread a lot of rumors like 'Sonor is bankrupt' and 'Sonor isn't
manufacturing anymore.' None of that ever happened."
Far from it. Sonor is currently celebrating their 125th anniversary with
an increasingly bright outlook. "In 1999, we sold more drumsets than
ever before," Karl stresses. "And we expect to sell 35% to 40% more in

1. Our competitors have had to spend the last couple of years
   explaining why we're still here."
   Across the conference table, Muse Liu clearly enjoys this irony. An
   assistant manager of JMT's parent company and Karl's chief liaison in
   China, she is partly responsible for those impressive numbers.
   Unfortunately, Sonor's rebound hasn't stopped the rumors. "Lately
   they've been saying, 'Sonor's production in Germany has closed down
   because they manufacture everything in China," Karl resumes with
   obvious irritation. "This is also not true. Only the Force 2001 and 3001
   series are manufactured in China. Everything else is still made in
   Germany. And since we began our operation in the Far East, we've
   actually increased drumset production at our plant in Germany."
   What is fueling Sonor's resurgence? For one thing, they've found their
   footing in a ring they'd once avoided, the red-hot—and hotly
   competitive-lower end of the drumset market. Perhaps because Sonor
   and "entry-level" had previously belonged to different universes, their
   first step into that ring had been a little shaky.
   "The original Force 2000s weren't at the perfect price point," Karl
   concedes. "When we established that series in the mid-'80s, all of the
   drums were made in Germany." For a while, the 3000, Custom, and
   Maple Custom lines kept it alive. But manufacturing costs in Germany
   continued to rise, and we took Force off the market because it was too
   expensive."
   That experience taught Sorter that the only way to level the playing
   field within this market segment was to venture beyond their home
   turf. At the end of 1997, they formed a partnership with JMT Musical
   Instrument Company, a manufacturer of many brands of musical
   instruments and accessories sold worldwide. Then they moved all the
   Force molds and tooling to China. Going offshore allowed them to
   resume manufacturing the series the following year-but at a much
   lower cost.
   Karl sees Sonor's arrangement with JM (as he and the other Germans
   abbreviate the company's name) sign of modern economic realities. "If
   you look around to other industries-cars, financing, banks,
   pharmaceuticals—they're all merging to become bigger and more
   powerful worldwide," he observes. "That's what we have done. JM is
   part of the KHS Group, a big company — a strong company - with
   facilities around the world. We are prepared for the future now."
   "Prepared" may be an understatement. Sonor's market share has
   already grown, and they exude a confidence the industry hasn't seen
   from them in years. "We budgeted for producing a very large number
   of drumsets in 2000-and we will reach it," Karl asserts. "We're
   optimistic about growth because this is the first time Sonor is really
   working to establish itself in the competitive price range. But budgeting
   for strong sales isn't based upon my enthusiasm. We have distribution
   partners all over the world. Each of them gives us a budget for the year,
   based upon their estimates of sales. For the 2001 and 3001 series, their
   budgets jumped up like crazy.
   If Sonor's immediate prospects seem bright, the horizon could be
   positively blinding. Karl reminds me of China's billion-plus population.
   "Sooner or later the Chinese market will be open," he says. "When that
   happens, Sonor will already be here. We chose JM based upon the
   quality of the company not the country they are in. But fortunately for
   us, they are in China."
   Left to right. JMT plant manager
   Mr. Shu," KHS Musix Co.
   assistant manager Muse Luu, and
   quality manager Roif "Lucky"
   Lukowitz discuss manufacturing
   processes.
   Sonor sales manager Karl-
   Heinz Menzel (right) and
   Lucky talk about the steel
   hoops made at the JMT MT
   factory.
   More Than A Visa
   Sonor's recent growth highlights the benefits of manufacturing in the
   Far East. But such a venture is anything but easy or guaranteed. No one
   knows better than Sonor that a successful offshore operation requires
   more than a visa.
   "People always see the lower production costs in China," says Karl
   "The labor costs are cheaper than in the US and Europe, sure.
   But before a business can start here it has to invest a lot of money. JM
   has its own power plant and water purification system. Even for
   manmanufacturing manufacturing you can't use the public systems;
   they're not stable enough. Communication systems are also incredibly
   expensive in China. KHS, JM's parent company, aIready made these
   huge investinvestments in the infrastructure. It would be next to
   impossible for a drum company to set up opera'ions in China without
   the kind of partnership Sonor enjoys with J\IT.
   "The other thing is, Americans and Europeans don't really understand
   the way things work here, all the complex relationships with other
   businesses, with the government. Over and over Muse explained to me
   JM's relationships with company A in Taiwan and company B here, and
   why another company had to he added on because the family involved
   with this company is related to the family involved with that company
   ....
   I still don't understand it. Too many things are involved; it's not just
   buying and selling. Everything is totally different here. To just come
   here alone and open up a business? No way!
   Muse acknowledges diplomatically "Western companies rely on Chinese
   companies who are experienced in communicating with both cultures to
   avoid misunderstandings."
   Plant workers sift through
   thousands of ceramic cones for
   metal parts in a vibration
   Steel hoops are elctroplated
   first with copper, then nickel
   polishing machine and finally chrome plating in
   Sonor state-of-the-art
   electrolytic plating machines
   Chinese Address,
   German Soul
   Though built in China, Sonor's 2001 and 3001 lines' character remains
   essentially German. Literally and figuratively, this is by design;
   everything Sonor makes is first devised, planned, and developed in
   Germany.
   But this kind of imprinting doesn't stop at the drawing board. Sonor
   ensures that its ideals (some would say obsession) regarding
   workmanship are maintained through vigilant oversight by Karl, Muse,
   and German reps like Rolf Lukowitz, one of four Sonor quality
   managers from Germany who oversee the Tianjin operation on a
   rotating basis. A big, barrel-chested man with a deep, bass voice,
   Lukowitz is known to everyone at the plant as Lucky (pronounced LEW-
   kie) or Mr. Lucky.
   "I am here for the fifth time in two years," says Lucky, who has worked
   at Sorter for three decades. "I spend so much time here, I'm practically
   Chinese now," he adds sardonically in a thick German accent.
   Before Sonor ventured east, JMT had already been OEMing drumsets
   for several budget-level brands. That experience was a mixed blessing
   for Sonor, since JM's standards and procedures weren't initially
   compatible with Sonor's.
   "It took a little time to understand each other," Karl explains. "We have
   different ways of thinking, different ways of working."
   One early challenge was China's traditional reliance on standardization,
   which enhances economy, but sometimes fosters resistance to modify old
   designs and manufacturing procedures.
   "At one time we discussed the position of a bolt on the hi-hat stand,"
   Karl remembers. "I wanted to change it, and the factory managers told
   me it wasn't possible. The discussion went on forever. 'No, we've done it
   this way for many years,' they told us, 'and we should keep doing it this
   way.' For them, the change seemed like just a difference in philosophy.
   For us, it was a matter of practicality-it was clearly a better design.
   Eventually they agreed to change it."
   "Ja, so much of the time we were opposite," Lucky agrees, and several of
   JM's Chinese managers laugh knowingly.
   "Sometimes we have opposition," Muse confirms in the present tense.
   "But Mr. Lucky makes my job easy. If someone asks why we do
   something, I just tell them, 'Mr. Lucky says that's how we do it.' With
   Mr. Lucky and issues of quality, there's no gray—only black & white."
   Sonor's quality mantra takes on physical form in the Tianjin factory,
   where quality-control specialists closely examine every component. For
   example, in one corner of the plant I watched two workers check tom-
   holder castings. They used marker pens to circle flaws that I could barely
   see. Marked parts were placed in reject bins. Other workers are just as
   fastidious with Sonor's drum finishes. Anyone entering the lacquer
   finishing area must first remove their shoes and enter a "clean-room"
   cubicle where any dust is blown from their clothes and hair.
   Examining the freshly made shells, Karl recollects, "When Lucky was
   here the first time, there were always problems. They didn't get the
   seams right."
   "But now look at them," Lucky interjects. He holds up a tom shell for
   my inspection and enthuses, "Inside and out, you can barely see the
   seam. They're perfect-perfect." (This guy clearly has a passion for
   perfection.) "And this is a 2001," he exclaims, "the least-expensive series
   Sonor makes!"
   Sonor's quality reflects the special training given to JM's Sonor workers,
   as well as the high standards Sonor sets for their wares. But while high
   quality has long been ingrained in Sonor's corporate culture, the
   pressure to keep it high was especially strong with their two Force series.
   "When we made the decision to cooperate with a Chinese company, the
   whole world was watching," Karl comments. "We have a strong name to
   lose if we don't live up to our reputation. So we had to be very careful
   about what we do here. We had to establish a different quality standard,
   and we had to do it immediately. The first impression, if it's a bad one,
   can kill you. But our team here learned very quickly. And now they have
   a similar vision."
   The New Force
   In Drums
   Sonor produced about six thousand drumsets in Tianjin during their
   first year. But after they had made another six thousand, management
   had to make a decision about the hardware molds, which degrade after
   time and use. Recognizing that they had to build new molds for the series
   anyway, they decided to redesign the line.
   Along with many minor upgrades, the second generation of Force drums
   included smaller lugs, ball & socket tom holders, and prism clamps on
   tom brackets and bass drum spurs. Karl explains, "The original tom
   mount design functioned perfectly, and people really liked it. But these
   days, drummers prefer low-mass hardware that's easy to use."
   Another reason for the Force redesign was Sonor products' identity and
   brand recognition by the public. "During the last four or five years,
   Sonor had too many different 'faces'," Karl admits. "We used to have
   the Force face, the Sonor Class face, the S-Class face, and the Designer
   face. All of them were completely different, and people got confused. I
   think it's very important for Sonor to have the same face—or very
   similar faces on all the lines, from the bottom to the top.
   "We may continue to upgrade the hardware," he continues, "but we
   won't totally change the mechanics. All the current hardware fits
   together, even with the old Signature and Sonic series. This is a big
   advantage for the consumer who may be interchanging parts, and for the
   dealer who is stocking them."
   Industry Standard
   Sonor's Force 2001 and 3001 drumsets are actually made in two different
   plants. One handles wood-shell construction, edge cutting, sanding,
   drilling, finishing, and assembly. JM's metalworks factory is at a
   separate four-acre site approximately thirty minutes away from the main
   manufacturing complex. (For environmental reasons, the government
   restricts electroplating operations to certain districts.) The processes
   performed there include die-casting, processing (drilling, threading, etc.),
   preparation (buffing, vibration polishing), and plating.
   Both facilities are clean, efficient, and completely modern. Karl tells me
   that the state-of-the-art shell presses in Tianjin form the shells more
   efficiently than the ones in Germany. And most of the diecasting is done
   on new vacuum die-casting machinery, the industry's technical standard.
   Muse explains that vacuum eliminates air pockets in the molds as the
   metal is injected, ensuring stronger, higher-quality parts. It also reduces
   the burrs and other distortions common to less advanced types of
   casting.
   Many of the smaller metal parts are polished in high-tech vibration
   polishing machines, where water and thousands of different-sized
   ceramic "cones" find their way into the parts' holes and crevices.
   Then JMT's electrolytic plating machines, also state-of-the-art, apply
   copper, nickel, and finally chrome plating to much of the Force series'
   hardware.
   "Most of the manufacturing equipment is brand-new," says Karl. "Some
   of it is made right here at JM. Some of it comes from other countries.
   There are even some American-made computer-controlled machines that
   cost millions of dollars." Even for their lower-cost products, Sonor
   clearly spared no expense on manufacturing equipment.
   What's In A Name?
   In recent years two other companies known for premium quality drums
   created secondary lines, then gave them distinct brand names. This
   marketing strategy insulates the upper-level product's identity from the
   lower level newcomer. Sonor took the opposite tack.
   "The Sonor name is already very respected in the world market," says
   Karl. "We considered the other approach, giving the drums a different
   brand name, but realized we didn't need to do that. We said, 'Hey, this is
   a Sonor product.' We created it, we developed it. And then we made it
   happen with our partners at JM.
   "We were absolutely sure that in a very short period we would reach the
   quality standard that the Sonor brand represents. And if you already
   have positive brand recognition, in terms of marketing it's always easier
   to come from the top to the bottom than to come from the bottom to the
   top.
   "Just look at the automobile industry. For years Toyota was known as a
   mid-priced car. When they wanted to move into higher-class cars, they
   were not able to push the name 'Toyota' up into that range. So they
   created the Lexus.
   "In the drum industry, there are brands that are known solely as entry
   level drumsets. They will have a hard time ever reaching the top level.
   They don't have the image, the history, the knowledge. But with our
   reputation, it's easy for Sonor to present an affordable product that lives
   up to the Sonor name."