The following is an interview with U Zaw Min, the owner and manufacturer of a guitar business in Htonbo Ward, Sagaing City.
Q: Could you please introduce yourself and your business name?
A: I am U Zaw Min. I am running a guitar business under the name of Moe Min.
Q: When did you start this business?
A: It has been 35 years since I started running my own guitar business in 1989.
Q: Which raw material do you mainly use when making guitars?
A: The raw materials are different types of timbers, such as teak, padauk wood, Myanmar ironwood, Myanmar rare wood, pine wood and plywood.
Q: Please elaborate on raw material sourcing. Do you find it hard to buy them?
A: We purchase them from the plywood industries located in Kyaukse Township. We have built strong partnerships with suppliers and manufacturers, so we do not face any difficulty in procuring materials.
Q: How many types of guitars do you manufacture?
A: We manufacture five types of guitars: guitars for kids, teens, beginners and adults, common guitar shapes of all sizes and expensive guitars like foreign brands.
Q: How many workers do you have?
A: There are 20. They are all locals. Some of the skilled workers opened branches.
Q: Where do you supply those finished guitars?
A: We supply them across the country. Most of them are sent to Taunggyi City. We have also expanded our business in the region by opening an outlet in Sagaing.
Q: Would you mind explaining guitar manufacturing and market conditions?
A: We manufacture 20 to 25 guitars per day. The market condition depends on the different types of guitars. The prices range from K40,000 to over six digits. At present, we are struggling with the high cost of raw materials. We are planning to raise the price sometime. Some are willing to accept price increases. Yet, some customers are not happy with it. Anyway, we will provide a good and legitimate reason to raise the price without losing customers.
Q: Is it local sourcing only or global sourcing?
A: Some guitar parts are sourced from China. The price of turning keys increased to K700,000 from K200,000 per carton owing to shipping costs. The production cost of a guitar worth K40,000 is K38,000. So, we receive only K2,000 profit. Cheap guitars are primarily in demand here due to economic conditions.
Q: How many days do you need to manufacture a guitar? Do you need other equipment or else it is handicrafts only?
A: It takes a week to manufacture a guitar with one-person production. As we manufacture guitars with many workers, it takes one or two days to finish a guitar. Earlier, it was crafting only. Now, machines and equipment are utilized. Machines make production more accessible and more efficient. Manufacturing equipment improves quality control and production outputs. We can keep abreast with some international suppliers.
Q: Is there any loan assistance for the guitar business?
A: We have received K5 million under the COVID-19 loan fund previously. We have not paid them off. We pay one per cent annual interest according to the loan rules. We still cannot get access to MSME loans as we need to provide collateral or assets. Furthermore, only grant ownership is valid. Therefore, we would like to request the authorities to grant unsecured business loans without granting property or other assets as collateral if the business is qualified and has a good credit score during the inspection tour of the worksite. This way, we can expand our business, enhance business performance and create more job opportunities for locals with active incomes.
Translated by EM
