Hed Kandi, the jewel of Ministry's crown, takes a beating in Beijing

If recent rumblings are anything to go by, it looks as though Hed Kandi’s brief flirtation with Beijing will soon to come to an end. The internationally recognized dance label, acquired by Ministry of Sound at the beginning of 2006, arrived last summer in the form of Kandi Klub. Rather than breathing new life into the homogenous scene, Kandi offered very little that was different from the clubs on Gongti Xilu.

“We are dissatisfied with the way the current licensee is operating the facility,” says Michael Wilkings, president of Ministry of Sound International. But despite said dissatisfaction, Wilkings maintains that Hed Kandi’s reputation in China has not been damaged. “The Hed Kandi brand has not been compromised.”

Still, questions have to be asked of Ministry’s approach to business in China. How did the first mainland project of an internationally respected and recognised brand end up in an innocuous location off the third ring road (a cramped hotel bar, defended by a Ministry spokesperson as having a “regular client base … and great parking!”)? Why was it adjoined to KTV lounge Passion, which is populated predominantly by hookers and overweight businessmen? Considering the sheer size and success of Ministry’s other Asian ventures – in Taipei, Singapore and Bangkok, to name but a few – is the problem with Kandi Klub Beijing-specific?

Wilkings seems to think not. “There is no difference in working with Chinese partners or any other nationality, inside or outside of the PRC. It all depends on the individuals involved, and their personal business philosophies.”

But as business began to dwindle, it appeared that Ministry was overly hasty to invest in Kandi Klub. “A company coming to China should always do thorough research before investing any money,” says Cate O’Kane, account director at entertainment marketing company JWT Shanghai. O’Kane cites insufficient market research as one of the main reasons foreign brands are compromised once arriving in China.

Further to the poor choice of venue, Ministry’s choice of local partner did not bode well for Kandi Klub. For example, the decision to hold the opening party on a Monday was reportedly based on the advice of the local partner’s fortune-teller, as was rejecting the design for the club proposed by long-time Hed Kandi collaborator Neil Morton.

“They [the local partners] don’t trust the foreign brands … they don’t believe it will work and only believe in Coco Banana,” says Meiyang Ko, former marketing and promotion manager for Kandi Klub, referring to the generic design favored by Beijing’s “super clubs.”

Meiyang has since left Kandi for home-grown hotspot Suzie Wong’s, where she feels that there is more room for creativity. “It’s smaller, but everyone here has a clear idea of its brand … it has a very unique and traditional Chinese style that can be exported, unlike [Beijing’s] big clubs.” In the meantime she has expressed her disillusionment with Kandi Klub to the Ministry head office, which she doubts will renew its contract with the venue. “I told Ministry that it was doing nothing for the Hed Kandi brand.”

Assuming Ministry won’t renew its contract with the local partners at Kandi Klub, where next in the label’s China adventure?

“Shanghai offers a good environment for international [clubbing] brands,” observes O’Kane. “Bonbon hosts God’s Kitchen events every three months or so. If an event is successful it can be just as effective in raising the profile as opening a club.” Whether Ministry employs this tactic is yet to be seen, but with rival club Attica already up and running in Shanghai, it will want to establish firm roots in China before 2008.

So, is the future for international clubbing in Beijing a bleak one? Meiyang, thinks not and is confident that having learned from its mistakes, Ministry will return to the capital with a vengeance. Let’s just hope it chooses its partner a little more wisely next time. Oliver Robinson