Industry Analysis & Industry Trends
Constrained consumer spending and increasing competition from online traders have been the main challenges for traditional music stores over the past five years, and this trend is likely to intensify in the near future. Overall demand for musical instruments has fallen, and industry operators have been competing over a smaller share as online traders jumped in on the game, often at heavily discounted prices. Consumers are turning to other leisure pursuits, such as the internet and video games, instead of taking up a musical instrument. The result of this trend has been an average annual decline in industry revenue of 3.7% over the five years to 2011-12. Over the current year alone, industry revenue will fall 3.7% to £1.12 billion... purchase to read more
Industry Report - Industry Key Buyers Chapter
Concentration in this industry is low, with no player generating more than 5% of industry revenue, and most enterprises operating only one establishment. There are no substantial musical instrument chains in the UK, and the majority of stores are run by small operators. Some concentration has taken place in the industry over the last five years, however, unlike comparable markets like the United States, the UK still has no notable nationwide chain of musical instrument stores. This can partially be attributed to consumer preference for the local music store, which is perceived as being capable of delivering a more personalised and knowledgeable service. Music stores can develop significant customer loyalty, and many have been operating in the same place for decades... purchase to read more