Drumming it up: The industry is expected to grow despite rising online competition

Improving economic conditions at the start of the five years through 2017-18 bolstered the performance of musical instrument retailers. Retail activity increased over the five-year period as a result of a strengthening economy and low unemployment. However, conditions have begun to falter in the current year. Over the five years through 2017-18, industry revenue is estimated to increase at a compound annual rate of 4.1% to reach £449.4 million. However, the EU referendum result dampened consumer spending in the final quarter of 2016-17 and is anticipated to continue to constrain performance over 2017-18. Total industry revenue is expected to increase by just 0.5% in the current year...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Increasing competition from online-only retailers has put pressure on industry operators
  • Additional funding for music programmes is expected to have supported the industry
  • Traditional retailers are expected to find it more difficult to match the prices found online
  • Industry Report - Industry Key Buyers Chapter

    The Musical Instrument Retailers industry is highly fragmented, as demonstrated by the large proportion of small players. The four largest companies are estimated to contribute just 26.6% of total industry revenue in 2017-18. Only two companies generate 5% or more of industry revenue and most enterprises only operate one establishment. Some consolidation has taken place over the past five years but there is still no dominant nationwide chain of musical instrument stores. This can partly be attributed to consumer preference for local music shops that can deliver personalised and knowledgeable services. Customer loyalty can be an important factor in the performance of musical instrument retailers because many have been operating in the same place for decades. Tig...purchase to read more.

    Additional Insights for the Musical Instrument Retailers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Musical Instrument Retailers Industry are

  • Provision of goods currently favoured by the market
  • Experienced work force
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Total online expenditure in the Musical Instrument Retailers industry impact industry performance..

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    What's in this report

    What is the Musical Instrument Retailers Industry?

    Operators in the industry sell musical instruments, including guitars, amplifiers, keyboards and associated accessories. This industry includes the sale of musical instruments via the internet if the seller also operates bricks-and-mortar stores. The industry also includes instrument repair and modification services.

    Industry Products
  • Audio recording equipment
  • Guitars
  • Keyboards, pianos and organs
  • Amplification and DJ equipment
  • Percussion instruments
  • Orchestral stringed instruments
  • Brass and woodwind instruments
  • Expendables, accessories, sheet music and other items
  • Industry Activities
  • Musical instrument retailing
  • Recording equipment retailing
  • Sheet music retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Total online expenditure
  • Population aged 11 to 19 years
  • Average weekly hours of work

  • Current Performance
  • The EU referendum
  • Online orchestration
  • School of rock
  • Traditional operations transposed
  • Highly strung
  • Chart: Revenue Growth

  • Industry Outlook
  • Technological timbre
  • Ringing the changes
  • Striking a chord
  • Banding together
  • Table: Musical Instrument Retailers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Musical Instrument Retailers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Sound Recording & Music Publishing
  • Primary Education
  • General Secondary Education
  • Consumers

  • Key Selling Industries
  • Consumer Electronics Manufacturing
  • Musical Instrument Manufacturing

  • Products & Services
  • Audio recording equipment
  • Amplification and DJ equipment
  • Orchestral stringed instruments
  • Guitars
  • Keyboards, pianos and organs
  • Percussion instruments
  • Expendables, accessories, sheet music and other items
  • Brass and woodwind instruments
  • Chart: Musical Instrument Retailers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Hobbyists and students
  • Professionals
  • Education sector
  • Chart: Major Market Segmentation for the Musical Instrument Retailers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent, depreciation and utilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Musical Instrument Retailers

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Musical Instrument Retailers Industry

  • Industry Globalization
    Gear4music Ltd, S&T Audio Ltd,
  • Table: Gear4music Ltd - financial performance
  • Table: S&T Audio Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Musical Instrument Retailers 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 Musical Instrument Retailers Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Multichannel Retailing
  • Using multiple channels to interact with potential customers. These could include the internet, mobile phones and bricks-and-mortar outlets.
  • Musical Instrument Digital Interface (Midi)
  • A way of allowing different instruments to interact with each other electronically.
  • Synthesiser
  • An electronic instrument that generates sound by using filters and tone generators to create waveforms.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Musical Instrument Retailers market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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
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    This report on Musical Instrument Retailers:
    • 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 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 Musical Instrument Retailers 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 Musical Instrument Retailers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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