Most Keyboard Categories Significantly Improve 2017 Sales - PowerPoint Presentation

Most Keyboard Categories Significantly Improve 2017 Sales With the music products market generating a 4.1% increase in total 2017 revenues after 2016 sales didn’t increase from 2015, two of the keyboard sectors also increased: home pianos, +6.8%, and portable keyboards, +11.2%. Total piano sales, which include grand pianos, vertical pianos and electronic player pianos improved significantly, with a 2.4% increase in unit volume and 6.3% increase in retail value for 2017, following dismal 2016 results, all in the red. The organ sector was 2017’s biggest loser in all the major categories, with total sales of $38.7 million, a 5.8% decrease, contracting the market even more after a 4.7% decline in 2016 sales.

Continued Growth During First Half of 2018 Q1 and Q2 2018 total music products sales increased 4.2% and 4.1%, respectively, which bolstered sales in some of the keyboard sectors, with digital pianos and portable pianos recording gains for the 6-month period of 4.3% and 2.0%, respectively. Sales results for vertical and grand pianos were mixed, with verticals increasing 1.1% during Q1, but decreasing 1.5% during Q2. Grand pianos’ sales didn’t move the needle much, with Q1 at -0.7% and Q2, +0.8%. The two organ sub-sectors were still in the red during Q1 and Q2, but “much improved” from 2017’s dismal sales decreases. Home organs decreased 3.5% and 1.3% and institutional organs 1.4% and 1.2%, respectively.

New Optimism About Acoustic Pianos According to Music Trades analysis, another year of a strong economy, and especially the stock market, was a primary factor in the improvement of 2017 grand piano sales, although sales didn’t increase during the first half of 2018. Pianos with electronic players have benefited from advances in technology, including online access to song libraries and a capability to connect with voice-activated devices, which led to a 5.9% increase in unit volume for 2017. Another trend that may be boosting acoustic piano sales is the leasing option from companies such as Allegro Credit. Much like a light-vehicle, monthly lease payments are less and teachers may be able to claim a tax deduction.

Portable Keyboard Sales Are Sparkling It’s unusual for any retail product to improve YOY when its unit volume increased by double digits, but that is exactly what the portable keyboard sector accomplished, with a 2017 unit volume increase of 18.0%, compared to +17.8% for 2016. The retail value of portable keyboards during 2017 also exceeded 2016’s performance, at $188.54 million, or an 11.2% increased (compared to $169.6 million and +9.1% for 2016); however, average unit price declined for the third consecutive year, to $165. Q1 and Q2 2018 sales for portable keyboards weren’t as robust, at +2.8% and +1.4%, respectively but that is understandable, since Q4 is traditionally the best quarter, and it was during Q4 2017, at +3.5%.

Still No Answers for the Shrinking Organ Market The organ market continues to shrink, as there are more alternatives for families than the traditional wooden-cabinet instrument and more of the worship market favors contemporary music and instruments. According to research and data from Music Trades , a typical church with a congregation of 350 is more likely to purchase a stage piano or digital keyboard and spend, on average, $2,400. For 2017, total unit volume of home organs decreased 17.9%, and total retail value also decreased by double digits, or 16.9%, while institutional organs were also in negative territory: total unit volume, -3.7%, and total retail value, -0.9%.

Advertising Strategies Keyboard retailers are known to place an instrument in shopping malls to create interest; however, they could also put a keyboard on a flatbed truck and drive it to various public/commercial locations, such as parks, exteriors of smaller shopping centers, etc. With churches and other worship settings more likely to use a digital piano than a traditional organ, offer onsite workshops and special leasing rates as well as discounts when a church purchases a group of instruments. Feature Yamaha’s new CSP series of digital pianos that utilize elements from popular online games to attract younger audiences as well as casual users to help them easily learn their favorite songs and become more proficient faster.

New Media Strategies Another strategy to penetrate the worship market is to offer to livestream a church band’s performance on YouTube or other sites. During a band break, interview its members about the quality of the instruments as well as audience members for their reactions. Make sure to create and maintain an email database of all customers and send them a monthly newsletter with keyboard DIY care and cleaning tips, a calendar of keyboard performances in the community and discounts/coupons just for newsletter recipients. Partner with local keyboard teachers to create short videos with a store associate serving as host, interviewing the teachers and asking them what instrument they use and their teaching techniques, and then use these videos as social media posts and to show in-store.