BFA AGM 2005: Chairman's Report

The British Federation of Audio
PO Box 365
Farnham
GU10 2BD
Phone: + 44 (0) 1428 714616
Fax: + 44 (0) 1428 717599

e-mail:
chrisc@british-audio.org.uk

Opening his report, BFA Chairman, Steven N Harris stated that the higher attendance at meetings had been maintained with the average now over 20 and increasing. "This number meant that we had outgrown AMDEA's offices as a venue and we now met at the Rugby Tavern around the corner. Discussions throughout the year had focussed on the impact on the audio industry from other businesses and new products. For instance Barry Fox was a guest speaker at the January meeting where he aired contradictory views to the Chairman on the likely impact of the Microsoft Media Centre 2005. I-Pod was another product which had engaged members’ attention."

Considerable time had been spent dealing with the impending WEEE legislation about which Dr Philip Morton would enlighten the audience shortly. However, the Chairman highlighted a few specific points. The BFA supported the Visible Fee on invoices to clearly identify the cost of WEEE. However, as a Trade Association, the Federation was barred from a collective discussion on the subject by the competition legislation. Nevertheless, he reminded members of the need to change invoicing software if it was intended to show a visible fee. If not shown separately the price would just be marked up through the sales chain. Lastly, he asked members whether they had arrangements in hand to mark their products with a Wheelie Bin logo. Although implementation had been delayed until 1 January 2006, it was understood that this aspect of the legislation had retained the mid August date for introduction.

Little discussion had taken place on the RoHS directive as members had indicated that measures to meet the legislation were in hand. The RoHS becomes effective on 1 July 2006. The Chairman emphasised that members should ensure that they will have RoHS acceptable products in a year's time and the documentation to prove it. Furthermore, companies should be aware that whoever signs the self certification for the CE mark means that the product conforms to ALL applicable regulations.

Membership had shown a small increase over the year eventually settling on the target of 50 members. The Board were actively seeking new recruits but help was required from the membership.

No change had taken place with regard to shows despite lengthy and protracted discussions. Events were driven by the media rather than the needs of the industry and the Chairman questioned the value of shows to companies. Say 50 exhibitors spent £1m at four shows; he posed the question whether the money pushed out could be better spent in other ways. Perhaps a cost benefit analysis should be undertaken?

For the first time the BFA promoted trade awards at the Bristol show with the objective of rewarding those companies that put just that little bit extra effort into their exhibit. The industry spends about a quarter of a million £ over the weekend but often looks as if it doesn’t have two pennies to rub together. Judging covered half a dozen parameters. The Board were pleased that the standard of exhibiting at Bristol was definitely higher than last year even though it may have been purely co-incidental.

Following years of battling with the DTI the Federation finally managed to get SESA funding for a small group for the Moscow Hi Fi Show in 2005. Funding has been secured for HES Munich, CES and Moscow in 2005/2006. The new venue for the HES in Munich has been well received and the BFA will be hosting a drinks reception again but without its traditional co-sponsor. The Chairman expressed the Board's pleasure that publicity generated during the year had improved and coverage had been more widespread. However, as part of an emerging new strategy the Federation plans to become more aggressive in its publicity from now on.

The Federation's Statistics Service, one of its major benefits, had been revived and was up and running again thanks to the perseverance of Malcolm House. We now have more contributors and better representation. After a difficult time in 2003 statistics were brought back on schedule in 2004 with reports for the last 8 months issued on time or within a few days. For 2005, categories have been revised to reflect current products of participants. 13 extra brands have been added with two major companies beginning contributions in June. The Chairman expressed his confidence that BFA statistics will be the primary source for high end data on the UK market. Closing the topic, Steven N Harris stated that the Federation has also worked together with Gfk to put on two European market presentations for members who were interested.

Running through other points of note, the website had been completely redesigned and the BFA was also participating in the What Hi Fi Listening room complex with the aim of achieving neutral room acoustics. The Board had been, and still was, discussing the future of the BFA and how to improve it. One activity arising from their deliberations was the intention to run some marketing training for small businesses, having finally found a potential presenter.

In closing his remarks, Steven N Harris thanked his colleagues on the Board for all their efforts during the past year and Geoff Edwards of Bowers & Wilkins for his work on the Federation's behalf at the many and various meetings on WEEE. Steven N Harris also thanked Lord Gowrie for his support, his advice and for chairing the AGM and members for attending and continuing to uphold the Federation.

Finally, Barry Fox was indisposed and unable to attend but sent the following question, possibly with tongue in cheek: There is talk of unifying Blu-Ray and HD-DVD - which one will be dropped?

Questions:

Q1. Neil Wilson asked how the BFA could encourage more companies to contribute data.

The Chairman replied that initially we had to get the service fully up and running. As we get more contributors the easier it becomes. Peer pressure was also a strong factor. Otherwise it was an ongoing task of steadily working away to get new members and contributors. He had his eye on ten new members. Andy Giles added that PR was important and it was hoped that the new PR strategy would bring in more members and thereby statistics data.

Q2. Paul Messenger asked what percentage of the market the BFA statistics covered.

The Chairman replied that he did not know given the huge increase in new participants but he guessed around 50%. He planned to work it out but he was not actually party to the data as he did not contribute. John Dawson added that coverage was improving and electronics was now pretty good. He read out the list of electronics contributors and observed that there was no other way to get such data. Fred Clayton pointed out that 16 months ago there were no statistics so we had done quite well to date.