Industry Analysis & Industry Trends
After contracting slightly in 2010, the Retail Market for Musical Instruments has grown steadily, if moderately, over the past several years. The market has also experienced a surge of new entrants; though traditionally dominated by small brick-and-mortar locations, online retailers and big-box stores are increasingly offering industry products. However, the increase in market participants, coupled with rising penetration of low-cost imports, has exacerbated price competition and prevented growth in the industry's profit margins. Still, rising disposable income over the next five years will encourage budding musicians to purchase industry products, as well as enable experienced players to invest in higher-margin instruments.... purchase to read more
Industry Report - Starting a New Business Chapter
Prospective operators planning to enter this industry usually face large start-up costs to establish their store or e-tailing operations. A significant share of funding may also be directed toward advertising and marketing to help generate consumer interest and recognition. As such, potential new entrants may be deterred by the initial outlay of establishing a musical instrument retail outlet.
Entry may also be hindered by the limited product differentiation among operators because most players tend to stock similar musical items. This characteristic can make it difficult for a new entrant to penetrate via a niche market... purchase to read more