ZOOMing In on the Future of Sound

Looking at macro trends, Japanese audio manufacturers have long been renowned for their precision, engineering excellence, and dedication to sound quality—qualities that have kept Japanese-made products in high demand. In light of ongoing geopolitical tensions between the U.S. and China, along with the weakened Japanese yen, there has never been a more favorable time for global consumers to purchase Japanese audio equipment. From your perspective, what are the core strengths of the Japanese audio industry, and how does it compare to both regional and international competitors?

Before I answer your question, I should clarify that there are many different types of audio equipment. Our products fall within the musical instrument market, and they are not manufactured in Japan. Most of our production takes place in China. We are currently in the process of shifting some of that manufacturing to Vietnam or Malaysia, but for now, nearly half of our products are still made in China. In our segment, products that are truly made in Japan are actually quite rare.

You might wonder why our products are still regarded as having made-in-Japan quality. The reason comes down to quality control, which is handled by Japanese staff. While our production may take place in China, Vietnam, or Malaysia, our headquarters remains in Japan. Even minor issues are addressed immediately—what we call precise action—and this is critical to maintaining high quality. I believe quality is the most important factor for customers. That’s why Japanese products continue to be seen as valuable and distinctive.

When I recently visited New York, I met with a well-known CEO who insisted on manufacturing his product locally. He told me he didn’t want to produce in China because he didn’t trust the quality. I explained that while we do manufacture in China, we maintain strict quality standards through Japanese oversight. He acknowledged that our products are of very high quality, and I told him it’s not easy to maintain, but it’s possible because we manage quality control ourselves. That conversation reaffirmed for me just how essential quality control is to a brand’s reputation.

It seems you’ve been successful in building your business abroad while maintaining the high standards of Japanese quality that are recognized around the world. However, many Japanese companies are now struggling to do the same, largely due to shifting domestic demographics. Japan is not only the world’s oldest country, but it is also facing a rapidly shrinking population caused by low birthrates. This creates a dual challenge: a declining domestic market and a shortage of skilled labor. As a result, many Japanese companies are expanding overseas to compensate. How is your company responding to these changes—both in terms of selling your products and in finding and retaining skilled staff?

Our sales share in Japan is only around 7%, and that ratio has remained quite stable over time. We’ve always kept a close eye on overseas markets, particularly the U.S., though finding new partners is becoming increasingly challenging.

In terms of staffing, we used to hire only from engineering universities. However, we’ve since expanded our recruitment to include graduates from art schools as well. That decision was based on the unique perspective they bring to design. While technology can solve many problems, there are times when a design-oriented approach is more effective, and art school graduates often excel in that area. Of course, this shift also reflects a broader reality—the engineering population in Japan is shrinking.

ZOOM’s product development requires musical and artistic sensibilities

You’ve highlighted how important the international market is to your operations, and right now the creator economy is experiencing significant growth, driven by the rise of music production, podcasting, and digital content creation. Some estimates project this market will grow to around USD 68 billion globally by 2030. As this landscape continues to evolve, how are you positioning your company to capitalize on this growth?

The creator economy represents a significant opportunity for us. We recognized this trend about three years ago, and supporting creators has become central to our mission. Our goal is to empower everyday people who aspire to become creators—we see ourselves as a kind of gateway that helps them make that transition.

To achieve this, pricing plays a crucial role. Our products need to be affordable, but never feel cheap. That’s why quality is essential, particularly in terms of sound performance and durability. We strive to deliver the same specifications found in higher-end models, even at more accessible price points.

Our core policy is to provide products that will serve creators for at least five years, giving them time to grow and develop their skills. After that, we offer products that support the next stage of their creative journey. We don’t necessarily aim for the high-end market. Instead, we focus on the entry-level and mid-tier segments, where we believe we can make the greatest impact.

With the growth of the creator economy, we’re also seeing the emergence of a wide range of new digital tools, including various AI applications. These cover everything from audio processing to smart device connectivity. As part of your mid-term strategy, you’ve emphasized the importance of exploring these technologies. Could you share some specific areas within your product development where you're looking to apply these new digital tools?

Before I speak about AI more broadly, I’d like to mention a new product we recently launched called the P2. It’s a podcast audio recorder that debuted in March 2025. What makes it unique is that, unlike most podcast recorders—which are designed to work with analog microphones—the P2 is built for USB microphones.

During the COVID-19 pandemic, many people bought USB microphones to connect with friends and family through video chats. The P2 gives those users an opportunity to easily record their own podcasts, offering a range of features. One of the key functions is AI-powered noise reduction. The P2 is also very affordable, allowing customers to start podcasting for as little as USD 99.

At the core of our approach is the belief that AI should serve the broader public. Traditionally, advanced technology has been developed for high-tech users, but we want to reverse that. We want high technology to support beginners. For example, the P2's noise reduction function can isolate and remove background sounds like air conditioning, dramatically improving audio quality.

We also believe that AI neural networks have strong potential to enhance digital signal processing. Noise reduction is just the beginning. AI can also help correct distorted sounds in recordings, restoring clarity. Looking ahead, we see exciting applications for musicians as well—for instance, using AI to enhance guitar effects in real time. In the future, we believe that recorded files, cloud-based data, and digital processing will come together to create new forms of value that go beyond what is currently possible.

PodTrak P2, world’s first recorder for USB microphones

Many in the creative industries view AI as a threat, but based on what you’ve described, it can also serve as a valuable tool—an assistant that makes creative tasks easier and allows people to focus more on the creative process itself. Earlier, you mentioned the launch of the P2 in March 2025. Which countries have seen the strongest sales so far? Are there any new countries or regions where you’re planning to promote this product next?

Our launch has been global. We first introduced the product in Japan, followed by the United States, and then expanded into Europe. Sales are particularly strong in Japan and the United States. Going forward, we plan to strengthen our promotional efforts in countries with growing podcast markets, such as Brazil.

Your company has a long and distinguished history, beginning with its founding in 1983. You started with guitar effects and have since grown into a global brand. Could you share some of the key milestones that have shaped your company’s journey over the years?

There are several products that mark key milestones in our company’s history. One that stands out is the Zoom 9002. I remember seeing it as a teenager and thinking, “Wow, it looks like a Walkman.” At the time, it was incredibly innovative and made a strong impression. Creating compact, high-performance products was very much in line with the “Japanese” design ethos of that era. The success and strong image of the 9002 played an important role in shaping the company’s identity.

9002, Advanced Guitar Effects Processor, released in 1990

Many years after the 9002, we launched the Zoom 505 effects pedal, which was priced at around USD 99. At the time, individual effects pedals typically cost about USD 70 each, but the 505 offered around seven different effects in a single unit. It was a major achievement. The success of the 505 led to several follow-up models, including the Zoom 506, 507, and 505-II. Altogether, the series has sold over one million units, making it one of the most successful effects pedal lines in history.

505 GUITAR, released in 1996

Next, I’d highlight the Zoom PS-02, our first audio recorder. It shares the same DNA as the 9002—compact, high-tech, and innovative. We often refer to the PS-02 as our ancestor in the audio recorder category.

Finally, I’d like to mention the Zoom H4n. At the time we developed it, there were no audio recorders capable of handling high-volume environments. Devices from companies like Sony or Olympus were great for studio settings, but none could effectively capture the sound of large festivals or concerts. We started with the idea that our existing recorders couldn’t handle big sound, but quickly realized it was possible to address that. The H4n was designed specifically with performing musicians in mind.

Interestingly, the H4n also gained popularity in the film industry as a tool for location audio. Once it caught on in that space, sales surged. The endorsement from filmmakers really changed the game for us, and I consider the H4n one of the most important milestones in our company’s history.

H4n Handy Recorder, released in 2009

In your mid-term strategy, you outlined a dual-growth approach—reinforcing your leadership position while also targeting high-margin, niche user needs. Could you tell us more about how you plan to balance these two priorities? Are there any specific user segments, needs, or services you intend to focus on as part of this strategy moving forward?

There needs to be a circular relationship between the different areas of our business. When working with core audio products, we always begin by carefully considering the user interface. That’s why we’ve incorporated a number of accessibility features into our core audio recording devices. Since these are mass-market products, we also pay close attention to things like power consumption. While these considerations may not seem groundbreaking from a technology standpoint, they are just as important when viewed from the customer’s perspective.

With niche products, we don’t face the same constraints. We’re often dealing with very high-level technologies, and while we still aim to make them user-friendly, the development priorities are different. Even so, these niche devices often incorporate the same core audio technologies that power our mass-market products. In this sense, we take a hybrid approach.

I see this as a kind of circular or yin-yang relationship. Without core audio, we couldn’t tackle niche challenges. But without engaging with those niche challenges, we wouldn’t be able to push the quality of our core audio products forward.

One interesting aspect we noticed during our research is your active approach to mergers and acquisitions, including companies like Instamic and Sound Service Musikanlagen-Vertriebsgesellschaft in Germany. We also saw that you recently established a subsidiary in North America. How are these acquisitions helping to strengthen your company moving forward, and are you actively seeking new opportunities in international markets?

Of course, there is a revenue impact from these acquisitions, but one of the most important aspects is brand identity. As we build the Zoom brand, we rely heavily on the support of distributors in each market. However, if those distributors aren’t part of our group, it can be difficult to fully share our passion and story with them—and for them to then communicate that to customers.

By bringing these companies into our group, we can work together more closely to shape our brand identity, develop a consistent global marketing strategy, and collaborate with creators. It also allows us to receive direct feedback from each market, which is incredibly valuable.

Some of the companies we’ve acquired are well-established brands in their own right. In that sense, we’re also building a portfolio of strong, complementary brands. I see this as another major advantage of our M&A strategy. The first phase of this plan is now complete, and we’ve established a presence in Europe, Japan, and the United States.

In November 2024, we announced the acquisition of Instamic, a small startup based in California. They produce very compact wireless recording devices, and their technology is highly innovative. After several discussions, we realized our missions and values aligned well, so we decided to move forward together. Prior to the acquisition, Instamic sold its products exclusively online. Now, with access to our global distribution network, they can reach a much broader audience.

Instamic Pro Plus C, world’s smallest 32-bit float audio recorder

Partnerships are a recurring theme among companies aiming to expand their global reach or accelerate product and technology development. What role do partnerships play in your business model, and are you currently seeking new partnerships in international markets?

Right now, our top priority is finding startup companies like Instamic. Our initial focus is on identifying pure technology companies, particularly those with expertise in AI or cloud computing. While we don’t currently operate a cloud-based business, I believe our hardware is quite advanced. That’s why we need to form partnerships with AI or software companies—to enhance our products and add more value.

There are definitely areas within AI that could complement our approach and help us innovate further. However, given how quickly AI is evolving, it's difficult to keep pace alone. This is where strategic collaboration becomes essential to support our continued development.

Today we’ve discussed how important the international market is to your business. Could you give us an update on your current strategy for global expansion? Which products and countries are you focusing on at the moment?

Honestly, my answer is almost the same as what we’ve talked about today so far. We are focusing right now on wireless types of products, particularly those that help with audio or video podcasting. From next year onwards, we think this area will be very important to our company.

In terms of your international sales, which market represents your biggest so far?

North America is our strongest market by a wide margin. As for future expansion, we’re keeping a close eye on Thailand, Singapore, and Malaysia. I sometimes travel to Thailand myself, and I’ve noticed that income levels in Bangkok are comparable to those in Tokyo. We see significant potential in Thailand as a target market.

Imagine we return to interview you five years from now. What goals or dreams would you hope to have achieved by that time?

By that time, I hope I can proudly say that Zoom Corporation has become the number one audio equipment company in the world. One of my personal goals is to establish a term I’ve coined—Creative Audio Equipment—as a recognized category in the industry. If we’re able to achieve that in the next five years, I would be very happy.

For more information, please visit their website at: https://zoomcorp.com/en/