Industry Analysis & Industry Trends
Musical instrument retailers are increasingly optimistic as consumers buy items that they delayed purchasing during the recession. Following the collapse of the US economy, reduced disposable income caused industry revenue to dip 0.7% in 2010 as consumers substituted toward cheap imported instruments. As a result, import penetration into the manufacturing sector spiked 9.3% in 2010, and it is estimated to rise at a 1.7% annualized rate in the five years to 2013. At the same time, however, a higher quantity of musical instruments encouraged retailers to stock and display them, which ultimately boosted industry sales over the past five years. Revenue is forecast to rise at a 1.2% annualized five-year rate to $6.7 billion in 2013, including a 4.4%.... 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. A steady 0.3% annualized increase in the industry's core market of adolescents aged 10 to 19 has also supported industry growth. As a result, IBISWorld estimates that revenue will rise at a 1.2% annualized rate to $6.7 billion in the five years to 2013. This includes a 4.4% expected boost to revenue from rebounding disposable income in 2013.
Competition undermines profitability
During the five years to 2013, import penetration into the manufacturing sector is anticipated to increase at a 2.2% annualized rate to make up about 30.0% of manufactured products... purchase to read more