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 - Industry Analysis Chapter
Rising import penetration and price competition made musical instruments more affordable to consumers during the past five years, which expanded the Retail Market for Musical Instruments. However, a 0.6% annualized decrease in the industry's core market of adolescents aged 10 to 19 has resulted in tepid revenue growth over the five years to 2014. As a result, revenue is expected to increase at an annualized rate of 0.7% to $6.7 billion over the five-year period. This includes a 1.5% expected boost to revenue from rebounding disposable income in 2014.
Competition undermines profitability
During the five years to 2014, import penetration into the manufacturing sector is anticipated to increase at a 3.2% annualized rate to make up about 30.0% of manufactured products... purchase to read more