Business Study

CICADA FORGE PRODUCTION SWORDS SOME THOUGHTS FOR A BUSINESS IMPLEMENTATION

PRODUCTION SWORDS VS. BLADESMITHS SWORDS

The main rule of today’s economy is for product diversification under strict uniformization and quality control.

The implementation of a business cannot rely on customization, but rather on uniform production of different variations of the same product. This rule is applicable to all known products from television sets to automobiles, as it implies a production line which will render the product to be competitive in its range depending where it is done.

This golden rule, that is rooted on the Industrial Revolution of the 19 Th. Century, has therefore originated competition, which in turn has relied in two main tools: Design and Marketing.

THE REALM OF DESIGN
Creativity in design is mainly the mediation between the potentialities of a certain product, and the innovative or personalized features that anticipate the consumer’s wish for something different.

In other words, designers are mediators who interpret and create what the consumer public will not only accept but will want.

MARKETING
It is the direct and related consequence between what is available and why a certain range of similar products is to be preferred to others. In short, Marketing rule is to ask oneself why the Consumers should prefer one product instead of a similar one. The basic example is Coca-Cola vs. Pepsi-Cola.

CREATING A MARKET NICHE
It has been verified that there are three kinds of customers for Japanese style swords.

Those who are collectors and will want either Nihon-to or Blade smiths custom swords, which represent a very small market due to the economic availability involved.
Those who are economically less powerful but nonetheless very enthusiastic in either collecting or using production swords. Their profile can be established as sword lovers, martial artists, and potential sword practitioners. These are the main potential consumers of production swords.
This last category falls into a range of customers that consume cheaper products such as Kris Cutlery katanas and wait for their personal economic upgrade to move to the next upper level of quality production swords.

This having been established let us view what is the established competition, its pros and drawbacks.

HANWEI FORGE SWORDS

BUGEI OFFERINGS

AVERAGE KATANA PRICE US$1.262
AVERAGE WAKISASHI PRICE US$ 900

TUSCANY TRADING OFFERINGS

AVERAGE KATANA PRICE US$ 963
AVERAGE WAKISASHI PRICE US$ 697

In this products and price range it is easily verifiable that the competition has long recognized that viability relies on production swords without customization, and on product and design variations.

Let us now view the success of Bugei and CASI (through Tuscany prices).

BUGEI may have been the first to source a cheap producer, which would inevitably had to be in China (or India, Thailand or Nepal). It is important to acknowledge that both BUGEI and CASI showed from the beginning enough economical power to create stock which allowed for an even lower price, and, therefore, for a larger margin of profit.

BUGEI was thus able to charge more and is still able to market more then one thousand products based on James Williams?Samurai Wannabe statement on Samurai Moral AND THE WARRIOR ETHICS Values in Modern Society, capitalizing in a total deviation of reality.

In short, BUGEI promotes its swords through a total Japanese Environment and with a personalized approach of James Williams performing tameshigiri as well as some said clients.

James Williams promoting his product around himself.

Their strategy evolved from the early days of the Bamboo Katana and the Lion Dog Katana with huge 14 or 15 inches tsuka to shorter versions, which I advised them both through Nick Saganis and Kevin back in 1997-98 which prompted them to accept my advise and offer different tsuka lengths for the Iaido practitioners.

Knowing James William’s somehow commanding personality I was very surprisingly offered a Hissatsu tanto in exchange for a review based on my own past military background (ranger officer at Portuguese Army) and they did post the fax I sent them as a Testimonial at Ancient Edge Inc. www.ancientedge.com/testimonials.html which is proof enough of their accepting my earlier inputs.

CONFIDENTIAL: However, since early 1999 that there are no relations between us, strained because I ordered Howard Clark a blade and James told Howard I was his client. I have learnt of Howard through Sword Forum and I let James Williams know that he did not own me as a client and I would order the blade whether he liked it or not. Howard then decided he would do it, bearing in mind that BUGEI is probably his best client.

EVOLUTION OF BUGEI

As said, BUGEI took my advise of opening up to a larger market by shortening the tsuka. The next thing was the introduction of Swedish Powder Steel, which was the best way to attain attractive blade activity with little effort. The profits they made from the early swords encouraged them to create new swords such as the WAVE, The SAMURAI, the ORCHID, the BUSHIDO, the GUARDIAN and the TIGER. Their range of swords displayed above average US$1.262 with a range of prices from US$1.850 to US$899. This will definitely mean a huge profit as fixed production swords can produce very low cost Koshirae and even blade. I estimate that the original cost averages between US$250 to US$400 the most. And there are reasons to believe so, because of shipping and packaging costs.

THE BLADES
I’ve tested the Hanwei blades, and though they are not as crisp as Fred Chen’s, I’ve chopped very strongly on a Chinese Blackwood chair, which is very very hard and heavy wood, and the early Bamboo katana edge was unblemished. This is something to bear in mind, as it is advisable to face reality of the Ha strength and the Mune capacity to absorb shock.

THE PACKAGING
BUGEI’s packaging is far superior to all other competitor’s as can be seen in this picture of foam that totally protects the sword and also holds the cleaning box, which is included in the price, plus an outside card box.

This packaging represents an investment that has to be taken in consideration in the overall price asked for the swords.

CONCLUSION

BUGEI’s advantages rest on the following aspects:

Longer presence in the Market.
Enough economic power to generate stock not only of swords but also has many products.
Prompt acceptance of change dictated by broadening the market, i.e. tsuka length choice.
Excellent standard packaging for swords.
Swords that is indeed strong, from my point of view.
Good use of James Williams to reach a certain type of market.

BUGEI’s disadvantages rest on the following aspects:

They cannot produce a personalized blade smith to back their production swords.
Production swords are not crisp and have wobbles in the surface.
Tsuka with not curvature. Use of cheapest ito and a short piece of same.
Their koshirae offerings are easily traceable to Fred Lohman.
Their possessive attitude towards their clients. Personal experience based.
Use of UPS instead of cheaper and more reliable FEDEX.
Extreme use of James Williams to general type of market, originates refusal from many Ryu.
Samurai oriented contents will definitely put off many potential customers who are mature.

CAS IBERIA - TUSCANY PRICING
The average price range of Tuscany as a distributor for CAS Iberia’s Hanwei swords follow the trend of Swedish Powdered Steel and is in direct competition with a lower price range with BUGEI. However, some swords are already as high as $1.483 for the Kami Katana.
Both CAS IBERIA as sole distributor for the US and Tuscany as retailer, seem to have enough economical background to generate stock.

In the case of CAS IBERIA or TUSCANY they try to compete with BUGEI as an alternative for a medium-low clientele.
They are uncharacteristic, as they don’t have much alternative, nor do they draw any particular feeling from their clients except the pricing. The Shinto, Musashi and the Golden Oriole seem to be their most popular swords.

NOSYUIAIDO
Rick Polland who is also a Iaido sensei with good connections with Japan because of his Japanese wife and his stay in Japan runs Cutting Edge Technologies Inc.
I very much suspect that Fred Chen established his business learning and working for Nosyuiaido ?CET as I was given first hand information that their Steel Iaito were manufactured in Shanghai.
Lets analyze some points:

The technology is good and crisp, but almost all of the production swords have a clamshell polish and a gunome hamon, targeted for Tameshigiri.
Being swords for Tameshigiri they are rather heavy and meaty for normal handling.
The swords offered are either Production or Shinken.
The stock available is small ?after a consultation on the 28 inch range, there were 7 swords available - as the katana are assembled in Japan and present the typical Japanese tsuka curve for example and the offering of Japanese made habaki and koshirae.
Saya have different traditional finish, usually very attractive. However the kojiri is plastic.
This company carries different tsuka-ito wrapping such as katatemaki, hiramaki, hinerimaki and tsumamimaki.
The price range of $1.500 ~ $1.800 for production swords is high, considering that the offerings are of clamshell polish and there are no standard choices of koshirae. Each blade that is made available comes totally finished with specific koshirae which leaves the potential client with a take it or leave it, that’s what we have position.
Customization would place the sword well into the $2.000 range.

Incidentally Rick Polland have once insisted with me to represent his products in South East Asia, after two sword purchases which can be viewed at: www.arscives.com/cejunior/myswords/
For that purpose he sent me a bunch of catalogues of very poor quality as can be seen below, but the price range added to the lack of a standard production designs were, in early 1999 and still today, a shortcoming in marketing strategy.

CICADA FORGE PRODUCTION SWORDS

APPROACH AND STRATEGY

Having reviewed some of the main examples of Production Swords on the market today, I would try to recommend an approach and strategy for the real implementation of this very promising reality that is the combination of a Blade smith and a production forge, and possibly, a designer.

In business terms I would say that: it is more advisable to sell a thousand production pieces earning $300 then a hundred pieces earning $1.000.

There are lessons to be learnt and we must be gratified that these lessons were taken from others?experiences.

ESTABLISHING AN IDENTITY
Every product requires an identity and a reference, and what would be a better reference for production swords then a blade smith and a credible production forge?

However, the product has everything to gain if some martial artists will endorse it, adding even more value to it. A review from Sword Forum, if positive, may influence some of the forumites but will not be enough in my opinion. It has to be broadened by as much testimonials and pictures of test cuttings as possible. Highly qualified swordsmen reviews such as Guy Power would be a great achievement. And everything should be in your homepage.

ESTABLISHING A MARKET
This is based on a three steps strategy that I would strongly recommend.

To acknowledge the need to establish that Cicada Forge are production swords.
To define a set of different swords with fixed koshirae and saya, each identified by a name.
To innovate by introducing new alternative products.
To establish blades specifications and characteristics that will make them perfectly identifiable.

1.
PRODUCTION SWORDS are what they are and they should be sold as they come. Customization such as further polishing would pose a risk for you: that of not being able to handle every request and ending up with complaints. You should save your time for your own custom sword making, and being able to offer, at this level, a one stop product, which would be much more innovative then what Howard offers and very much closer to what Scott Slobodian does.

2.
DIFFERENT fixed sets of production swords should be offered, such as the flagship sword that would identify the product: the Cicada Katana and the Cicada Wakisashi.
I would suggest that a minimum of three different koshirae Daisho and a maximum of five should be offered.

3.
INNOVATIVE products should be introduced as a strategy of both filling up a lack of product in a certain area as well as, through this, become more popular. As a first product I would most certainly recommend the Cicada stick sword, after a final prototype has been defined. This would fill up a market gap that the Hanwei Zatoichi cane sword of such bad quality.

4.
DEFINITIVE BLADE SPECIFICATIONS that will identify the swords, making them unique for their characteristics, which will have to be different from the competition.
This leads us to examine the competition, which is both Hanwei Forge and Nosyuiaido that is most certainly also a Fred Chen product.
It would be advisable therefore, to draw the qualities of all products and, thinking on the market, decide how to establish the difference under the rules of market identity.

BUGEI blades have nice sori and are indeed well balanced even for one hand maneuverability. They can withstand strong punishment as referred before. However their surfaces are not well defined.
NOSYUIAIDO blades also have a harmonious sori but are more meaty and consequently about 35% ~35% heavier, can stand strong punishment, have crisp surfaces, but are boring in terms of hamon and of clamshell polish.

THE CICADA STICK SWORD NEEDS CORRECTION BEFORE BEING COMMERCIALIZED
AS A VERY SUCCESSFUL ATTRACTION.

To define a Cicada forge blade one should think of combining all attractive features of the competition, eliminating its drawbacks.

Let’s see one comment posted by Dennis PK:

I posted once but it never appeared here? Hmmmm…Well, I just rec'd my blade fully mounted last night and love it...I'll give a further review later this week. Very beefy blade and should cut well. I plan on cutting with it soon but am still waiting on materials for that...Post office left it on my doorstep too...Ahhhh!! But, everything appears intact but again I only cleaned it quickly per had an ice hockey game to play?Sword is probably a little too heavy for Iaido but that is not written in stone yet...Again, further details forthcoming

In short, the conclusion is the need of a blade that should be different from others, thus standing out on its own, should have the following characteristics based on an overview and comparison, and targeted to tameshigiri, iaido practitioners, kenjutsu practitioners and potential collectors:

Shinogi Zukuri always, with at least a 2 inch O Kissaki for Katana and 1.5 inch for Wak.
The mune requires a little bit more hardness as the polish scratches easily.
The blade should not be too wide: 33 mm would be fine at the base (near habaki) while at the yokote, the width should be 28 mm. A difference of 5 mm.
The blade should have harmonious sori, very traditional.
The customer always appreciates the presence of a nice hamon.
The Ha should be able to cut 2 inches bamboo as a standard of hardness.
Blade thickness should be slightly reduced as to make the sword lighter. A light and strong sword is always welcomed.
Maintain the crisp and flat surfaces, with a real yokote.
Steel composition should always be expressed to avoid repeated answers.
Standard polish similar to that of the Hanwei forge should come from Cicada Forge.
Nakago should bear the Cicada Forge MON. 9 inches long.
Average katana length: 28 inches. Average wakisashi length: 20 inches

IMPORTANT NOTE:
It might seem outrageous for a Blade smith to see someone who knows much less then him to suggest blade specifications. Let me make it clear that this is a product that has to be different from others, that is why this is the reason I dared make some specifications suggestions. It is an interpretation of what I believe is a good sword and not available under these specs. The O kissaki should be another trademark of the Cicada Forge and of the Cicada Daisho.

IMPLEMENTATION, CONSOLIDATION, FINANCING

By implementation it should be understood the necessary steps towards the concretization of the products to be launched, including name of products, saya, ito, sageo colors and koshirae.

It was said that a minimum of three different daisho should be launched. At least five prototypes should be made in order to provide them for viewing, inspection and for testing in both the USA and for photography.

Sword Names

Cicada Katana and Wakisashi. Should be the reference, the flagship sword.
Budo Ken. This Daisho should be aimed for those who are sensitive to Budo.
Kagero (Dragonfly). This Daisho should be aimed to those sensitive to Beauty.
Furinkazan (the Takeda battle cry). Aimed for those with a preference for very fast blades.
Cicada Stick Sword. The secret weapon destined for creating a roar in the sword community.

Urgency in establishing all definitions for these swords, mainly their furniture and consequently a factory price, a distributor price, and a sales to the public price are very important and urgent, since for each sword that is sold now, is less a sword that Cicada Forge will be able to sell.

I strongly recommend that during the implementation period at least two out of five swords or one out of three swords should incorporate Swedish Powdered Steel as a marketing tool.

In this phase prices should be very competitive so as to quickly gain a market niche.

If these ideas expressed here are considered worthy and there’s an intention to very rapidly progress, I will further develop the Consolidation and Financing phases.