MUMBAI: Music Instrument Industry is expecting growth in sales this year, according to a survey by GE Capital, Commercial Distribution Finance (CDF).
The report highlights
Thirty-one percent of respondents expect their company’s overall sales to grow by 10%-15%, while 26% predict sales to increase by 5%-10% this year. Twenty-three percent assumed sales would soar 15% or more.
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The most popular products this year are expected to be fretted instruments, percussion, keyboards and amps, cited by 52%, followed by professional audio, cited by 30%. Pianos came in fourth (13%), and then band and orchestra instruments (5%).
43% of respondents predicted that lack of consumer demand will have the greatest impact on the music industry in 2012. That concern was followed by the growing popularity of online retailer and auction site purchasing, cited by 23%. When asked what percentage of their business will be composed of online sales in the year ahead, 54% of dealers said they could account for as much as 15% of their business. Another 14% said online sales could account for 15%-30% of their business. Twenty percent indicated they didn’t offer online sales at all.
“In the year ahead, we believe that the increasing accessibility of online instrument sales — combined with a gradually improving economic climate — will play a significant role in the ongoing renewal of this industry,” said Marvin M Solomon, president of CDF’s Strategic Industries Group, which finances music instrument dealers. “We hope to see continued innovation at the dealer level and exciting product developments, as well, which will also drive consumer interest.”
The survey conducted in US during January 2012 included respondents like manufacturers (16%), distributors (12%) and dealers (45%).
GE Capital offers consumers and businesses around the globe an array of financial products and services. Capital’s CDF business provides inventory financing that allows dealers to stock and market a music instruments and related products from manufacturers.
