Crescendo: Revenue will rise, but the industry will contend with rising import competition

Musical instrument retailers are cautiously optimistic, as operators have hit both sweet and sour notes over the past five years. Reduced disposable income caused revenue for The Retail Market for Musical Instruments industry to dip as consumers increasingly opted for lower-cost imports. At the same time, competition from big-box retailers increased substantially, creating a highly price-competitive environment that has hampered revenue growth for smaller operators. Nonetheless, industry growth is set to resume, thanks to a continued uptick in disposable income. In the medium-term, however, higher disposable income will be balanced by slow growth in leisure time, as the unemployment rate remains steady...purchase to read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 12-17
-0.4%
Forecast Growth 17-22
Profit
Employment
33,700
Businesses
12,815
Market Share of Companies

Industry Threats & Opportunities

  • Rising per capita disposable income will boost industry sales, but price competition will temper overall revenue growth
  • Technological advances have resulted in higher-quality products offered at more affordable prices
  • Rising disposable income will increase consumers’ propensity to spend on musical instruments
  • Industry Report - Industry Analysis Chapter

    Rising price competition made musical instruments more affordable to consumers over the past five years, which expanded The Retail Market for Musical Instruments industry. However, a 0.2% annualized decrease in the industry’s core market of adolescents aged 10 to 19 has resulted in declining revenue over the five years to 2017. As a result, revenue is expected to decline at an annualized rate of 0.4% to $5.7 billion during the five-year period. This is despite a 1.4% expected boost to revenue from rebounding disposable income in 2017.Competition undermines profitabilityWhile import penetration into the manufacturing sector is anticipated to decrease at an annualized 0.2% over the five years to 2017 to make up approximately 32.0% o...purchase to read more.

    Additional Insights for the The Retail Market for Musical Instruments Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the The Retail Market for Musical Instruments Industry are

  • Having a wide and expanding product range
  • Proximity to key markets
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Import penetration into the manufacturing sector in the The Retail Market for Musical Instruments industry impact industry performance..

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    What's in this report

    What is the The Retail Market for Musical Instruments Industry?

    Companies in this industry sell musical instruments, such as guitars and pianos, and may also generate revenue from products sold alongside instruments, like sheet music or CDs. This report includes all major retail channels, including specialty stores, general merchandisers and e-retailers. Sales of audio and video equipment like amplifiers and microphones are excluded from this industry, as are musical instrument repairs and rentals.

    Industry Products
  • Pianos
  • Organs
  • Violins, drums, guitars and other instruments
  • Sheet music
  • Other goods (includes tapes, CDs and audiobooks)
  • Industry Activities
  • Guitar retailing
  • Piano and organ retailing
  • Drum retailing
  • Online retailing of musical instruments
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Import penetration into the manufacturing sector
  • Time spent on leisure and sports
  • Percentage of services conducted online
  • Number of adolescents aged 10 to 19

  • Current Performance
  • Competition undermines profitability
  • Technological change
  • Employment and wages
  • Chart: Revenue Growth

  • Industry Outlook
  • Lower unit prices
  • Profitability dwindles
  • Table: The Retail Market for Musical Instruments Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - The Retail Market for Musical Instruments Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Community Colleges
  • Musical Groups & Artists
  • Performers & Creative Artists
  • Public Schools
  • Private Schools
  • Consumers

  • Key Selling Industries
  • Manufacturing

  • Products & Services
  • Violins, drums, guitars and other instruments
  • Pianos
  • Other goods (includes tapes, CDs and audiobooks)
  • Sheet music
  • Organs
  • Chart: The Retail Market for Musical Instruments Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Students
  • Hobbyists
  • Professionals
  • Chart: Major Market Segmentation for the The Retail Market for Musical Instruments Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs The Retail Market for Musical Instruments

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the The Retail Market for Musical Instruments Industry

  • Industry Globalization
    Guitar Center Inc.,
  • Table: Guitar Center Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the The Retail Market for Musical Instruments Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the The Retail Market for Musical Instruments Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita disposable income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    E-Tailer
  • A retailer that primarily sells goods via the internet. Many of these companies operate exclusively online.
  • Hobbyist
  • A consumer that is not a professional or student, but rather engages in musical activity for leisure or pleasure.
  • Sheet Music
  • A musical composition in printed or written form, which is normally in the form of unbound leaves.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on The Retail Market for Musical Instruments is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on The Retail Market for Musical Instruments:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The The Retail Market for Musical Instruments market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on The Retail Market for Musical Instruments, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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