Innovating Classical Guitar Retail Part 3: Extended Insights & System Mapping

In the last article we went through our personas and took time to understand the CG purchase cycle and experience. I offered up some broad advice based on a more-or-less straight reading of their stories and feedback.

Over the course of the research I came out with 32 needs and 26 challenges, some applying broadly and others specifically to say, a pro musician (persona 3). For this article, I want to go into a bit more analysis of the user feedback and then spend time scoping out to a system-level perspective to see if there are areas where industry actors and their respective actions are in some way causing or influencing these need states.

Mapping out user feedback into a CG purchase journey with needs/challenges defined along the way.

All materials are my own/based on open-source assets and are non-confidential.

Key Insights

An insight is the output of a simple process of 1) listening to real people 2) teasing out their underlying needs (say in a given statement or user story) 3) unpacking needs to fundamental values 4) bringing this knowledge together with some expert interpretation into a plausible and relatable statement which has broader application across a sub-section (or sometimes a whole) group of people. While indeed we are often dealing with smaller sample sizes in innovation projects, the insight should be applicable to multiple people within or across a persona to stand as an insight rather than the peculiarity of an individual.

If you're a visual learner then this is a fun graphic that helps to distinguish insight from 'something I heard in an interview'.

Based on Figueroa, 2019

Values as Fundamental Drivers of Action

For user values, I refer to Schwartz's Theory of Basic Human values, a well-established framework with academic acceptance as a way to describe motivations for action across countries and cultures. I had some reservations about adopting a Western model to explain Chinese values, but luckily for us Tencent's Insights department (腾讯营销洞案）localized and implemented the framework in its own studies so I have much more confidence in drawing on this.

This kind of human-centric 'deep' value is not to be confused with 1) brand values or 2) the perceived value of a customer/user in relation to the provision or exchange of some product or service.

Adaptation of Schwartz's model with localized CN terms via Tencent (2019腾讯00后研究报告)

Let's take an example: Tradition. Some CG players say they love the traditional, old-world sound of a Fleta or Ramirez. Their sound profiles are determined by the build of the CG, the materials used in construction, and most likely are a natural by-product of age, though we can obviously buy Torres replicas and such. The guitar conforms to our accepted notion of a classical guitar from 'the good-old days' when volume wasn't the only thing that mattered (let's just say - it's an opinionated debate). When we talk about tradition in the context of human values, we are talking about upholding certain ways of being, social hierarchies, and norms that correspond to a notion of individual and group identity. There may be technically superior CGs that come along made of exotic tonewoods, or perhaps even synthetic materials. The sound profile of such a modern instrument may capture the characteristics of a Fleta or Ramirez. But the person who says they love traditional, old-world CGs will resist buying such a guitar because what they buy into is something more than the CG as an object. A modern guitar that 'sounds traditional' but is built using unconventional means or materials is not a traditional guitar in the sense that it is not a true instance of a worldview where things are done a certain way.

Key Insight: Seller as a Proxy of a Guitar's Worth

CG purchase involves buying into the seller to some extent: the buyer uses seller behaviour as a proxy for the condition of the guitar. They buy into a shared story with the CG where the seller may even become a personal connection.

This is important because it helps us to understand the strengths and weaknesses of different purchasing models. The original finding came from speaking to CG players who had bought their guitars on P2P marketplaces or through direct connections without a listing on a marketplace (for example via the Delcamp forum).

They insist on calling the seller before making a purchase commitment, although ideally, they prefer to have a face-to-face exchange. Why? Well the obvious explanation is because they need a sense of security, to know this is the real deal, and perhaps they have some questions that aren't addressed in the listing. See the fourth insight below for more on this.

The more interesting points relate to wanting to figure out who the person is, why they are selling and how they treated the guitar over the course of its life. In other words, they want the story, not just the spec. This quote sums it up nicely:

I understand restless players ridding themselves of unwanted instruments, but if it wasn't good enough to make a player happy, it very well not make me happy either.

These points don't apply so much to our Persona 1 - our Jason/Joanne. When you are paying $500 you are buying into the brand of a mass-produced guitar, not the person building it. You buy into concepts of 'consistent quality', 'precision', 'authenticity', 'superior craft' via a conveyor. On the contrary, if you are buying a $5,000 luthier-built guitar, you want to know the hands that built it. By extension - and particularly for popular luthiers - you want to know about the other players who have 'graced' the guitar, to see the lineage and see how you fit into the story of the guitar (and likewise how the guitar fits into your CG journey).

When I talk to sellers, I am hoping that they share similar feelings, that they actually have a fondness for the guitar and that I can assure them that it is coming to a new home where it will be played and loved. I take very good care of my guitars, ...I will not buy a used guitar that has not been treated in a similar manner.

For CG Retailers: This is interesting for Independent CG retailers who trade in used instruments because in the process of procuring the instrument and then making it available for sale, there is a risk that the story and owner history will become dislocated from the instrument. Story is actually part of the proposition for a serious player who likes to go deep, who likes to tell tales about their collections.

Key Insight: Choice Heuristics Versus 'Knowing Yourself'

CG purchase is a personal decision. A teacher can impart good principles but specific suggestions may limit/pigeonhole the player. Brand names or ‘tradition’ are proxies for good choices that may ultimately work against the player.

When we start out playing we have 1) unconscious incompetency (we don't know what we don't know) and 2) we are unable to bridge the gap between how we want to sound and how we do sound due to our limited technique, nail shaping knowledge (tone production) and overall consistency. This makes it difficult to know what is right for us - we need mental shortcuts to reduce the complexity and cognitive load associated with interpreting a range of jargon and subtleties that fly over our heads.

For this reason, we defer judgment to authoritative figures (teachers, more advanced players in our immediate social circle), brands and their various associations (Spanish, authentic, classic) and now, rich content in the form of editorial and videos which do the evaluation for us according to such things as price points and categories of instrument (classical, electro-acoustic, or region-specific 'Japanese CG', Spain-Granada, Spain-Madrid).

While generic advice from a teacher or review video works initially, at some point it is up to the individual to learn the intricacies of the guitar and make an informed, independent decision. This takes years.

I am never swayed by the opinions of others - I can make well-informed decisions for myself based on all the things I learn and know about guitars (and what I know about myself!).

For CG Retailers: This is important because it connects to the value proposition of having 'experts who care' on the shop floor. How do you quickly and effectively:

• Learn who has walked into your store
• Get that person to express their needs in a way that is understandable yet not laden with jargon, particularly if they have years of experience playing yet limited literacy in the technicalities
• Guide them to an independent decision that inspires confidence
• Facilitate further exploration and appreciation of the instrument

It's also interesting when we think about future engagements and predicting new needs. How do you know when you are ready for that next step? Is it a concrete milestone, such as graduation, or is it a personal sense of satisfaction, triggered by having learned and performed a piece you considered beyond your grasp 2-years ago? Some players measure it in years, some in grades, and some in life milestones or specific use cases such as a pro who clearly needs a concert-level model with certain projection and volume.

Key Insight: Buying From Luthiers as a Milestone in the CG Journey

Buying a guitar from a luthier is not just about getting a better guitar. It is a learning experience that can enrich the player’s understanding and appreciation of the instrument.

If we go back to our personas, I think the life-long players, in particular, are viewing the purchase of a custom build as a learning opportunity. In other industries, we think of personalization as a form of indulgence, but when you hear a more experienced guitarist explain their rationale for getting a guitar commissioned, there is a genuine fascination there. They very much want to be part of the process, to shape the guitar with their output but allow the luthier to shape them, their possibilities with the instrument.

I already mentioned in respect of Williams and Smallman (download interview) that the relationship between a player and maker is symbiotic rather than subservient. The two inform each other's craft. The same can be seen here in this deep-dive with luthier Gil Carnal. The video features five guitarists who interview and play his creations:

Gil introduces a lot of very innovative elements to his instruments - things I feel would be very hit-or-miss depending on the player, from the adjustable neck to the larger size that grants the guitar more weight (some would read this as stability but smaller players may suffer here). I have never played one of these guitars but regardless Gil is thinking about the player, asking 'why' at a number of key places on the guitar's anatomy and the player is part of the discovery process.

For CG Retailers: I'm seeing an opportunity area for independent retailers around this process of exploration, of designing the brief for the custom CG. One respondent shared an anecdote about a luthier in his family who hated dealing with people. Indeed there is a lot of overhead involved in managing a website, email, phone calls, ongoing follow-ups and such. Even commissioning basic maintenance on my guitars, I was exchanging with the luthier weekly and requesting photos of progress. He wasn't so busy so obliged. How could a retailer not only provide leads for luthiers, but manage the process from specification to delivery? What is a fair price to charge for this, given it could free up considerable time for the luthier?

Key Insight: Preference for Playtests, but Not a Deal-Breaker (ex-Pro's)

Apart from pragmatic considerations such as sizing, comfort and projection/volume, there is a 'fuzzy' emotional dimension that elides rational specifications. The purchase decision involves ‘connecting with’ the instrument. 

A good starting point here would be to refer back to the first article where we talked about this idea of the ideal guitar being one that fits the player, in terms not just of its physicality, its specifications, but also this vaguer emotional dimension. The guitar 'has a soul' according to luthiers and those who chart the course from guitar to tree (Gibson, 2019). The desire to play-before-you-pay then, is driven by a whole host of reasons, from the pragmatic (not getting ripped off or buying something that is difficult to play) to the emotional ("it just feels right"). Many people will insist that you should test the guitar before buying - to the point that it can be very limiting for those living in suburban areas or countries where CG isn't really a thing.

Generally speaking it is preferable, but not always necessary to conduct a playtest. The exception here being persona 3, the pro player. The crux of the issue is obviously access, and secondly (related to access) having time and willingness to travel.

My respondents have and do buy guitars without playtests, and I myself have. There are a few conditions under which it is feasible, and sometimes even preferable to go ahead with a purchase without pursuing a playtest:

• At some former time, you already played an equivalent CG, or are able to make arrangements to play an equivalent model owned by a friend/connection
• The CG is an impulse purchase and the cost is low enough that you would be ok to write off the loss (for example a rare find or time-boxed auction)
• The CG is rare/unique and from a reliable source (salon/gallery/pro player)
• You have gone to some trouble to validate/qualify the seller and have established enough trust* to go ahead knowing 1) you are likely to get what you expect 2) the individual or business has a formal returns policy or will support and follow-up in the case you outright want a return or need to make some small modification.

* I should add that while most marketplaces establish trust-based economies with reviews, testimonials and scores, we are talking about trust with emotional depth - something that requires a proper phone call or at least an in-depth online conversation.

I would expect that at some point something will be a complete dud or not arrive or something. I would not enter into a transaction unless I would be reasonably happy in my mind to write it off and put it down to experience.

For a pro player there is a lot at stake - I have already discussed this in respect of Sharon Isbin's purchase of her Antonius Müller double-top. Scott Tenant was willing to lend his guitar to her for a playtest. I have also heard stories of luthiers shipping guitars for trials, though this is obviously reserved for pro players or customers with an established relationship.

For CG Retailers: There are a few ways we could cut this. On the one hand, it is empowering to know that there are things that can be done to overcome access-related challenges. This is particularly so now that Covid has normalized remote communications and decision-making. We may be able to convince some customers to buy remotely, particularly if they are in other countries. On the other hand, the workarounds customers find when access is limited are instructive for how we might want to tackle the challenge of providing 'playtest experiences' that go beyond getting a customer to come to the store.

Insight Summary

The above is a summary of some of the more interesting key insights - I felt they offered directions for innovation that were both valuable and managable for an independent retailer. There are other things we can do to organize our findings.

Some other examples of relevant insights include:

2) Personas Jason, John and Chris search for CG-related content online to learn more about possible options and help with making a new purchase because this way they can familiarize themselves with the sounds and technical detail of the instrument before entering the store.

BUT there is a high-volume of poor quality content which can make it hard to make a good judgment.

3) Personas Jason & John seek advice and guidance from other friends or teachers who are more developed as players because they don't have the confidence or depth of knowledge needed to make an informed decision.

BUT even consulting these people doesn't always work out with them getting the best guitar to suit their needs. The advice could be too general or restrictive.

5) Personas John, Chris & Samantha once ready to make a purchase will actively 'hunt' for specific models because they have spent time narrowing down their requirements and are highly informed on which luthiers can meet their needs.

BUT it can be hard to locate the instruments/get transparency over the market. They also have to contend with multi-year waiting lists which can undermine a choice in the case (e.g. Samantha) the CG is needed for an upcoming performance

9) Personas Jason and John will save up funds to make a guitar purchase according to a target price they will establish through their own research/impression

BUT sometimes the price will be influenced by popularity, trends or online bidding so they either lose out or pay over the odds resulting in buyer's remorse

17) Personas John & Samantha have adopted digital channels to share content and live experiences remotely as a response to Covid to maintain their community activities/professional service provision.

BUT this requires a lot of coordination and different participants have different audio setups so the quality varies wildly regardless of the guitar they use.

Defining CG in terms of Jobs-to-Be-Done

This is always fun since it helps us reframe our passion in terms of specific outcomes to the player. It also indicates how we might grow the market, appealing to non-CG players through mutual needs or inspiring further action among hobbyists (persona 1/2).

For example, if we find that playing guitar to improve mood & wellbeing ranks very highly among our respondents, that could inspire us to focus our efforts on services that better facilitate this. Selling a better guitar doesn't really deliver on this outcome beyond the buzz you get from having a new guitar.

Key Insight Themes

After prioritizing my insights I was able to derive some general themes which map back onto the topics mentioned above and some other key areas in the purchase journey.

Market Transparency & Trust

Aggregation and sharing of accurate information relating to CG build specs, owner history and key activities.

Personalized Service & Recommendation

Enhancing content offerings to anticipate key user concerns/questions. Tailored advice & recommendation.

Access

Literal access to instruments and access to market data (pricing, inventory transparency)

Progression & Growth

Relating to CG maintenance, upgrades, modification and associated expert advice

Prioritized Insights by Persona

As we go through the above points it is important to recognize that different people will have different stances on some of the points we might consider to be crucial for Intependent CG retailers. The obvious example noted above being about playtesting, where I stressed this remains a must-have for professional players.

Personas are covered in detail in the second article.

Finally, going through the interview transcripts some key concepts came up which I wanted to capture for later use as they have implications on business strategy and positioning.

Scoping Out: System Mapping

We are going to switch gear here and look at the macro perspective. We do this for a number of reasons:

• We can identify control points or influences that 'trickle down' to the end user through a series of interconnected relationships (i.e. looking at the purchase journey in isolation leaves unanswered questions as to the origination of pain points)
• With a big picture view we can see which actors are being influenced or displaced by new entrants - this can give us a heads-up on which parts of the experience are likely to change
• Big picture issues influence individual opinions and needs, so by scoping out we can already start to get a sense of what will matter going forward that previously wasn't top-of-mind

This first map is a rough sketch of the music industry. The centre contains the CG player (end user) and the rest of the actors radiate out in a way that approximates their degrees of separation from the end user. At the extremes, we have environmental actors and governments/industry bodies who typically interface with industry players.

As a first step, we can simply look at the map and have a conversation about it. Who wields the power? Where are the tensions? What are the second-order effects of [x] on [y]? I kept things simple and made notes, marking on each whether it could deliver positive or negative impacts on MI retailers.

Key Points:

Environment

Despite being on the periphery, each of us for the most part experiences the effects of climate change. Deforestation is an ongoing issue for all of us and CG players should be particularly aware of this fact. Your purchase may add to the problem - we need to vote with our wallets and moderate our demands on the world.

Resource Governance

The big issue here concerns the creation, ratification and enforcement of policies that protect the forests we depend on. There are two big issues at stake: 1) the legitimization of over-harvesting through 'greenwashing' bodies (notably the Forest Stewardship Council). 2) enforcement of policies in a consistent and fair way by on-ground teams who enable legal logging and movement of guitars between borders.

I can't possibly go into the details of how the FSC operates here but this documentary produced by DW (a German public state-owned international broadcaster) entitled Greenwashing Global Logging goes to great lengths to show that the FSC and forestry corporations are playing from the same playbook as the petrochemical/plastics industries.

This is why responsible bodies such as Green Peace have now left the organization.

The abbreviated story is:

• Forestry companies need a permit from the FSC to conduct logging operations - the permit dictates which trees you cut down, when, it is the mechanism for delivering on the promise of sustainable forestry
• The FSC makes decisions by means of a council comprised of environmental protection agencies AND the logging companies - in the same way a convict might participate in their own jury
• Permit distribution is opaque and the process for dealing with bad actors is opaque though permits have apparently been revoked temporarily
• It is not clear what on-ground arrangements are in place to ensure that legally logged trees are documented accurately and that illegally logged trees do not enter the mix

Pallettes of legally logged timbre sat beside illegally logged timbre - a slap of paint distinguishes them.

CITES - products made of pre-Convention harvested wood (pre-1992) is able to flow between international borders without much resistance provided you have adequate documentation.

Musical instrument passport - a requirement under CITES

Any instrument built of protected woods such as Brazilian Rosewood harvested after 1992 is basically stuck wherever it is. You travel with it into the US, you risk having it conviscated.

CITES has a direct impact on the willingness of businesses to work with the woods under protection, and impacts demands for such products as people are unclear on the rules and afraid they will get caught at border crossings.

However CITES is only as effective as the customs officers are at enforcing it - the same point can be made for the auditors & ground-staff working on behalf of the FSC to prevent illegal logging. If you don't know the difference between BR or walnut, or you are willing to accept a bribe to let a dude drive away with a ton of illegally-logged timber then despite best intentions, the system won't work.

Industry 4.0 is a fancy phrase for a cluster of technologies that power connected, automated factories. These same technologies can and (slowly) are being rolled out to forests. But progress is slow because 1) change is generally slow, especially when you have businesses benefitting from a lack of transparency 2) nobody wants to pay - neither governments nor market actors. Not unless there is a profit-driving component to having granular surveillance of what is happening in your forest and a transparent supply chain.

MI Retail Digitization

The final thing I will whip through is more or less what we know and see happening around us: the growth of ecommerce, digital media and emergence of P2P trade of instruments which is cutting into the value proposition of traditional physical retailers (I've already discussed some of these points in article 1).

The emergence of low-code and affordable web development combined with increased ways to connect with a new generation of CG players offers retailers new opportunities, provided they invest in building out the associated competencies, namely:

• Effective content strategy & planning - taking into account the specificities of each channel e.g. Youtube versus Tik Tok versus Instagram
• Content production - scalable and affordable, leveraging your premises, network and historic audience (and ideally the personality of the founder or floor staff)
• Responsive - extending the remit of sales-floor staff to cover digital services from customer service to bookings and above, content gen/sharing, community participation (or big-box retailers have the luxury of hiring digital experts)

These skills can be learned and mastered, but it does require persistence and an ability to move beyond 'this is what we do' resistance.

I would benchmark against Guitar Salon International, Siccas and Savage CG.

CG Retail Actor Relationships

I then scoped down a layer and aimed to understand specific relationships that exist between different stakeholders (actors). Some (such as record labels or event promoters) were irrelevant to our context so here we are really looking at CG retail.

I think the most critical development to consider, as mentioned in the first article, is the rise of D2C retail among manufacturers who typically leave sales to licensed dealers. There are noises coming out of independent MI retailers who are getting frustrated by manufacturers imposing unrealistic or one-sided demands in terms of purchase commitments, reporting and product mix/placement resulting in some stores abandoning 'big names' for emerging talent.

Example of a retailer taking decisive action against corporate coercion:

This is more evident in general MI retail, not so much CG, but I would suspect the same pains are shared for CG retailers who are dealing with the likes of Alhambra, Cordoba etc. Large manufacturers may use digitization as a means to coerce their dealers, while simultaneously building out digital touchpoints that siphon business from them.

It would be unfair to draw conclusions without talking to stakeholders from these businesses but for now, we can call these ongoing concerns for our Independent CG retailer.

By the same token, savvy luthiers are able to set up shop online and negotiate orders direct, however I do feel most luthiers would rather focus on the craft - it depends on the status of the luthier and annual guitar production (with some purposefully limiting numbers to leave time for experimentation / enjoying life).

The rise of private equity in MI retail is interesting - see here for an account of the Guitar Centre story in the US, it's a good read, featuring VC vultures and near-death experiences.

Where Are We At?

We went back to insights, dug out some key themes:

• Seller as a Proxy of a Guitar's Worth
• Choice Heuristics Versus 'Knowing Yourself'
• Buying From Luthiers as a Milestone in the CG Journey
• Preference for Playtests, but Not a Deal-Breaker

We then had a scope out to system-level and I waffled for a bit on:

• Climate impacts us all and is becoming top-of-mind for the average responsible CG player
• New legislation, notably CITES, is complicating the acquisition and purchase of CG made with protected wood species that are considered 'ideal' for guitar production
• Digitization is impacting CG retail in a very direct way now, and this influence is extending to the experience of learning, playing and sharing

In the next article, we will get to work on opportunity definition under the assumption that what we have collected and learned is representative enough to account for the majority of our audience (as an independent CG retailer).