In the 1970s, Japan had the world’s third-largest gross national product. The country was experiencing an economic boom, driven by an increase in exports. Right around this time, Hisatake Shibuya was opening his shop, Electric Sound Products, or ESP as we now know it. “For the company’s first 10 years, starting in 1975, ESP was only involved in the domestic Japanese market, starting with a single guitar shop and developing as a parts company and maker of mostly vintage reproduction models,” says Matt Masciandaro, current president and CEO of ESP. In the mid to late 1980s, an increase in domestic demand drove the Japanese economy forward. By this time, ESP had already begun the process of introducing their replacement parts into the U.S. market. Masciandaro joined the ESP team in the late 1980s. “I started with ESP in 1987, right after the first overseas division opened in New York City,” he says. “Those vintage-style models soon began changing into different instruments that were unique and innovative in design and style. Many professional artists took notice, and word began to spread that ESP was the place to go to get a custom guitar built exactly how you wanted it, with the quality you need. During those early years, we focused exclusively on the high-end and custom shop market, which still remains an essential part of our business to this day.”
Jump ahead a little bit to around 1995, when ESP introduced the LTD line, which offered mid-priced and more affordable versions of what Masciandaro calls “tried and true ESP designs.” Skip ahead again to 2014, when ESP opened its first-ever U.S. production facility with the opening of ESP USA in North Hollywood. Even more recently, in February of 2015, ESP became the exclusive U.S. distributor of Takamine. “We now sell ESP and LTD Instruments in over 50 countries around the world,” says Masciandaro.” So from small beginnings in Tokyo to mass-market distribution in over 50 countries, ESP has grown and now celebrates 40 years in the industry.
A commitment to high quality product has carried over from the initial ESP shop in Tokyo to the ESP of today. “As a company that started four decades ago as a group of guitar craftsmen who wanted to build better guitars, that desire to make the highest quality instruments we can is the underlying theme to how we approach our global business every day,” says Jeff Moore, ESP senior vice president. “We simply do our best to create, build, and sell the best electric guitars and basses we know how to make. And I believe our loyal artist and customer base is proof that we have succeeded in that quest. That being said, we still strive to keep up with the challenges of the constantly changing retail landscape, so we work hard to keep the brand relevant to our dealers and consumers. Having great products isn’t solely enough to be successful today; it takes understanding the dealers’ and consumers’ needs, listening, and then executing a plan to deliver the whole package. We want to make it easy to do business with ESP.”
One way some companies aim to “keep their brand relevant” is by revamping their NAMM Show display – something ESP happened to do this year. “We did something very special this year at NAMM,” says Masciandaro. “In addition to the usual product display, we showed over 80 guitars and basses called the ‘2015 Exhibition Limited’ series. Each of these guitars were designed and then handcrafted by the master luthiers at ESP’s custom shop in Tokyo, Japan. Every model is a unique work of art… No two are alike.” Even with the introduction of the new 2015 Exhibition Limited series, ESP still has those “tried and true” standbys to fall back on. “Currently, our best-selling shape is the single-cutaway Eclipse Series,” remarks Masciandaro. “The leader right now is the Vintage Black Satin LTD EC-1000 model Eclipse. Signature Series models always rank among top sellers, and right now the James Hetfield Signature Series models are very strong. Our line of extended range 7- and 8-string models are hot. Our top-performing bass is the LTD B-206 6-string.”
Maintaining a close relationship with consumers is something that’s becoming increasingly more and more difficult in MI, especially with the rise of e-commerce. But Jeff Moore explains there is room for both online retailers and brick-and-mortar retailers. “More and more guitars are being sold online than I think anyone ever could have imagined,” observes Moore. “And the retailers who understand what the consumer’s expectations are when making that online purchase are the ones who are growing and continue to enhance the entire buying experience. On the flip side, we also continue to see brick-and-mortar retailers finding more creative ways and services to keep their loyal customers coming back as well as finding new ones. We are always interested to work with those dealers who approach the retailer/vendor relationship as a partnership.” At the end of the day, whether it’s a new display or a slew of artist endorsements from players in Metallica or Slayer, consumer loyalty still ranks supreme. “ESP is a brand with a proud 40-year history that boasts an unparalleled artist roster and consumer base,” says Moore. “Yet, we are a relatively small company that operates and feels like a family-run business rather than a larger corporate structure that many would expect ESP to be. We are a company of musicians serving musicians, and that sets the stage for some great opportunities. And we listen to our customers. I think that’s really important in any business today.”
What’s next for ESP in light of these MI trends? “Simply put, we will keep doing our best to navigate the many challenges that our industry (and retail in general) face as technology and consumer buying preferences evolve,” remarks Moore. “Trying to stay ahead of the curve isn’t always going to be easy, so we’re working with experts and other companies who have a unique perspective on how these new trends are shaping our business models and strategies.”
ESP has already marked this anniversary with the introduction of a number of commemorative, extremely limited edition ESP Custom Shop and LTD Series anniversary model guitars, but there is more to come. “Throughout 2015, we will continue to celebrate our 40th with ongoing contests, giveaways, performances, and special events,” says Masciandaro. After 40 years in the business, ESP is especially thankful for their consumer loyalty. “In view of the fact that we’re celebrating 40 years in business right now, this is a great opportunity to offer my sincere thanks to all our customers for many years of loyalty and belief in the ESP brand,” says Masciandaro.
