Mass merchandizers such as Walmart have been able to offer steeply discounted prices on musical instruments.
(PRWEB) January 09, 2015
Conditions are increasingly optimistic for the Retail Market for Musical Instruments, as rising per capita disposable income continues to encourage the purchase of industry products. Aside from a slight dip in 2010, revenue grew consistently over the five years to 2014. The number of stores participating in the industry also rose over the past five years. According to IBISWorld Industry Analyst Andrew Alvarez, “Although the industry is historically dominated by traditional brick-and-mortar locations, e-tailers like Amazon, smaller niche websites and big-box stores such as Target are increasingly selling industry products.”
The industry faces challenges, however. Despite the industry’s continued expansion over the past five years, the increased participation of these large retailers led to dwindling profit over the period. IBISWorld estimates the price competition fueled by big-box stores to have cut the average industry profit margin in half from 2009 to 2014. “By carrying a variety of instruments and related products, stores benefit from high volume and convenience sales, decreasing the cost per unit for each sale,” says Alvarez. “As a result, mass merchandizers such as Walmart have been able to offer steeply discounted prices on musical instruments.”
Nevertheless, a continued rise in disposable income is projected to underpin steady growth in 2015 and subsequent years. However, in the medium term, positive economic trends will be balanced by Americans’ declining available leisure time for hobbies such as music, and a contraction in the industry’s largest market, adolescents aged 10 to 19.
For more information, visit IBISWorld’s Retail Market for Musical Instruments in the US industry report page.
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IBISWorld industry Report Key Topics
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 shows the size of the retail market for instruments and 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 in this industry, as are musical instrument repairs and rentals.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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