The tens of billions of markets that have been optimistic have suddenly encountered the coronavirus

In the recent period of time, some Chinese netizens made their own career plans for the first quarter of 2020 for various professions in the performance industry, joking that everyone would be unemployed.

This is a time when people are forced to trim, and the performance rental industry is no exception.

The seemingly prosperous performance market in 2019 has given dawn to the performance equipment vendors. The growth of various data implies that the market timing in 2020 is great. Looking forward to more and more performances, music festivals, large conferences and variety shows, many companies are preparing for the arrival of 2020.

However, stage technology fair did not expect that the sudden outbreak in the beginning of the year immediately poured cold water on the enthusiasm of the performance rental industry.

After the fermentation of the new coronavirus, all offline entertainment projects became cold. On January 22, announced on its official Weibo account that due to the outbreak, Modern Brothers toured Wuhan Station, Han Hong Tour Wuhan Station, Jolin Tsai Tour Wuhan Station, Jonathan Lee Tour Huangshi Station, and the Tokyo Olympic Women's Football Competition was postponed or cancelled .

During this period, many Livehouses such as VOX, Kwai and Nuts, as well as art galleries and theaters in Beijing and Shanghai also issued notices, announcing the cancellation of the performances during the Spring Festival, and temporarily closing or extending the closing time of the Spring Festival. At present, and Cat's Eye show both announced a refund policy during the Spring Festival (1.25-2.8), and clearly stated that non-Wuhan regions can also apply for refunds.

Taking Andy Lau's concert as an example, first of all, the money for the venue rental fee and the stage construction fee is wasted. According to the scale of Andy Lau's previous concerts, the rental and construction cost of stage audio equipment alone will be tens of thousands. Ten thousand yuan, plus venue rental fees, is equivalent to more than one million being thrown away.

In addition, Shanghai and Hong Kong Disneyland have been suspended successively. The 14th National Winter Games was originally scheduled to be postponed on February 16th. According to the incomplete statistics of a sample survey conducted by the China Performing Arts Industry Association among members recently, 1-2020 In March, nearly 20,000 shows have been cancelled or postponed across the country.

Based on the above, it is foreseeable that the domestic performance market will be collectively cold during February and March, and the companies whose main business is offline performance will also bear considerable losses.

Performance equipment leasing, as the most downstream collaboration terminal of the entire performance industry, belongs to asset-heavy industries, labor-intensive industries, and non-rigid industries. National performance equipment rental companies are roughly divided into the following categories (RMB):

Less than 10 people, equipment assets below 1 million;

10 people-30 people, equipment assets below 10 million;

30-70 people, equipment assets under 30 million;

More than 70 people, more than 30 million.

The market economy reflects the demand and popularity of performing arts equipment such as lighting and sound. Concerts, music festivals, conferences, performances, and events constitute the entire performance, cultural tourism, and exhibition industry chain. It seems to be prosperous, but the return rate is low, which has become an industry criticism.

When the performance activities are stopped, the upstream and downstream of the performance industry are under pressure from cash flow and even survival and development, it will inevitably lead to a sudden decline or even stagnation in the purchase or rental demand of the performance equipment industry.

What's more difficult is that stage technology fair can't estimate the end time of the coronavirus, nor can we know the specific recovery time of large-scale events and concerts. With zero income, the performance rental company must continue to pay for at least 2 months. How much of my operating capital can I withstand the pressure and quietly fall down?

One of the characteristics of the performance rental industry is that the equipment is updated quickly. For this reason, many companies have spent a lot of time and money on equipment upgrades in order to keep up with the times, resulting in not much cash reserves, but Faced with various operating costs such as factory loans, warehouse and office rents, office expenses, employee salaries, tax and social security expenses.

Cash flow is currently the biggest pressure on the operating level of performance rental companies. Among them, those who have the ability to finance will raise funds. If they do not have the ability to raise funds, they may only be able to temporarily close the company and wait for the spring of the industry. They also have to press the "pause button" for the device update task. For them, the most important task at present is: save.

But in fact, the vast majority of companies in the industry are currently on the sidelines, waiting for the state to provide relevant policies. Judging from the published policies of governments across the country, the main ways to help small and medium-sized enterprises are tax reductions, delays in social security payments, and steady return of social security. However, some voices said that the policies of local governments to help small, medium and micro enterprises did not greatly help enterprises. The most fundamental thing was to rely on enterprises to help themselves.

In the face of the epidemic, as early as February 7, the China Performing Arts Association called on the performing arts industry to work together and face the dilemma. At the same time, put forward proposals to various performing arts institutions in the industry:

Theaters, large venues, and other venues should plan their schedules in advance

Explore new models for online dissemination and value-added performance

Properly handle the refund of the deposit (advance payment) of the performance and share the losses caused by the epidemic

Facing the epidemic with a positive attitude, practicing internal skills, improving business capabilities, improving management processes, etc.

Combined with the communication and communication with many companies in the industry, relevant industry professionals have also compiled the following suggestions for performance renters:

Rent negotiated with landlord

It is not necessary to start work without resuming work, saving office expenses

Return to work pay according to local minimum wage

Salaries are paid according to the minimum living standard without returning to work

Appease the staff

Study local policies and make company adjustments

Cooperate with government investigations and reflect the situation of enterprises

Self marketing is still needed to avoid being forgotten by the market

Self-internal skills training, when the timing improves, can quickly highlight the competitive advantage

Should combine the advantages of the Internet, make arrangements not to be eliminated under the Internet trend

In short, the impact of the epidemic is factual, but we should not be overly anxious. It can be seen that the enthusiasm of the audience for the performance will not be hit too much by the epidemic, and even after the epidemic is over, a big outbreak is likely to occur.

Source: HC Audio Lighting Network