At the time that you went into the China market, focusing on music, many thought that you were a bit mad. Describe what you saw then in terms of the market, which is proving to be of benefit now?

SWAT was the first music industry consultancy to focus on and move into Asia in the early 1980’s, so we hardly felt out of place making an early move into China. From a Western standpoint, the market has many difficulties - but it is a growing market with huge potential especially in the digital music sector.

It's essential to spend time in the market, to understand the business and music culture as well as the people. It has been a wild ride over the last three years that we've focused on China - but our investment in time and resources is now paying off.

Describe the challenge of marketing music to Chinese music-lovers, compared with other consumers? In what ways are the consumers you target different to music consumers in the West, or in Japan?

The key challenge we face is education of the public to Western music culture. China has a developed domestic market which primarily listens to domestic Chinese or Asian regional (such as Korean or Taiwanese) pop. Getting music popularised is the first vital stage, after that there are a number of sales channels that can be readily accessed.

It's important to focus on sounds and genres that work in the market, which currently leans towards ballads, pop-rock and ‘pure pop’. The mainstream Chinese music consumer is not yet willing to accept anything too radical. However, the Internet has given the public unlimited access to all genres of music - and we have stopped being surprised at the number of people who are well versed in all manner of music styles.

One might imagine that in a country responsible for so much music piracy, marketing an expensive imported product would be even more difficult. Is this the case, in your experience?

The key issue for Western companies is to create awareness around product that is suitable for the consumer. This includes making the artist available for China promotion, which is never an easy task as there are so many demands on their time from established markets.

Piracy is an issue, but one that companies have to work around. The Chinese music business model, although it in no way condones piracy, has to accept it, and maximise income from legitimate sources. In some respects the Chinese music entertainment companies are more advanced than their Western counterparts. The Chinese independent entertainment companies are certainly more successful than the Majors.

Non-traditional media platforms such as ring tones, talent shows and sites like MySpace are popular ways of marketing music in the West and other parts of Asia. Are they equally effective now in China?

China leads the world in these areas. Look at the success of the SuperVoiceGirl talent contests; the rise of the ‘Internet artists’ whose blogged music generates millions of RMB in sales (run an internet search on ‘Mice Love Rice’); and the fact that over 460 million people have mobile phones and are using them to purchase ringtones, ringbacktones and full tracks.

The rise of the ‘New China’ has been nothing short of miraculous, especially in the entertainment industry which by international standards is still nascent.

Is China's consumer taste for music moving more rapidly towards new Chinese and Asian music forms than Western? Do you see this changing?

As we've already touched on, the Chinese public associate more with their Asian pop icons that with relatively inaccessible Western stars. As the market is developing, the number of people looking west increases, but in order to grow market share, Western artists and companies have a real battle on their hands.

In the rest of the region over the last few years we have seen a decreasing market for Western music, as Asian artists have successfully filled the vacuum left by Western acts - who are now increasingly focused on their home ground. Asian stars are comparatively more iconic, they appear not only on album covers but also in movies and advertising. This makes their personal brands incredibly strong and highly competitive.

Turning to more general music questions, is it easier or harder in the present changing climate for music to compete as a small business? It does seem that larger music players are taking a hit.

The Major labels are struggling. However the Indies (independent labels) have never been stronger and have always been ahead of the curve when it comes to repertoire and innovation. They have adapted well to the new business model, and now have added strength through industry associations such as the UK’s AIM, and on a global level Impala and Merlin. In Asia we have seen some of the older Indies facing difficulties and even closure, but many have adapted and there are some very exciting new labels now operating.

Travel media often focuses on the challenges for traditional travel agents due to changing distribution. There seems some similarities with traditional music labels. As distribution and consumer behaviour change, are traditional music labels finding it harder to survive? What are some of the ways they are fighting back?

The advent of the digital age has caused immense turmoil in the music business, much of which was created by traditional companies (labels or publishers) being slow to address the fast-moving realities.

Asian entertainment companies operate somewhat differently from their Western counterparts, as many are involved in ‘non-label activities’ such as live event promotion and artist management. This allows them to manage and monetise all aspects of their artists’ affairs. And vitally, to remain in business. This holistic approach to the business has many merits, although in a traditional sense (from a Western viewpoint) it may lead to conflicts of interest under the old business model.

Describe some of the most exciting trends in music in China right now. Talent-wise, are we likely to see the "next-big-thing" coming from China any time soon?

China is hugely exciting on a number of levels. As public tastes in music broaden and the industry matures, we are starting to see some great artists having a platform to succeed. Ballads and pop-rock will be popular for many years to come. Nonetheless, Western music influences be they R&B, Latin or trip-hop are creeping into the pop scene.

Mainland China has yet to find its feet musically; artists and producers are still experimenting with sounds and styles in order to find their own way. What's certain though is that we absolutely will see ‘the next-big-thing’ coming from China soon. Chinese movie stars are already making waves overseas, it is just a matter of time before recording artists gain popularity in the region.

Contributor's note: Alastair Hunt is marketing director for SWAT Enterprises. Starting his career in New York, Alastair moved to Asia in 1997. He subsequently worked as a label manager at SWAT (Singapore) until moving to China in 1999. After three years in Beijing, Alastair returned to Singapore where he is currently based.

SWAT Enterprises is a leading music industry consultancy in Asia and the first to focus on mainland China. Since its inception 10 years ago, SWAT has brokered new deals throughout Asia Pacific between East and West and overseen the marketing and promotion of some of the world’s most successful pop acts including: Backstreet Boys, Britney Spears, *NSYNC and Justin Timberlake. During the explosive growth of the Asian markets during the 1990’s SWAT represented major independent music companies.

www.swatenterprises.com