2. Portable and Digital Pianos Are Saving an Industry
With no increase in total music product sales from 2015 to 2016, or $7.1 billion for both years, portable keyboards, +9.1%, and digital pianos, +6.1%, were the bright notes in an overall keyboard market with negatives in most other categories.
Total piano unit sales, which include grand pianos, vertical pianos and electronic player pianos, decreased - 8.9%, only a slight improvement from 2015’s 9.2% decrease, while the retail value decreased 5.5%, worse than 2015’s decrease of 4.2%.
The home and institutional organ sector decreased from $43.0 million to $41.0 million, or -4.7%, continuing the sector’s record of negative unit sales and retail value for every year since 2007.

3. Some Improvement During Q1 and Q2 2017
Although total music products sales during Q1 and Q didn’t equal the last three quarters of 2016, digital and portable keyboards continue to lead the keyboard sector.
During Q1, digital pianos’ sales increased a meager 1.4%, but surged during Q2 2017, to +3.9%. Portable keyboards’ 1.9% increase during Q1 was an outstanding performance, compared to Q4 2016’s 2.2% increase, when most portables are sold.
Home and church organs continued to slide during both Q1, at -2.5% and - 2.4%, respectively. Home organs decreased 3.0% during Q2, but church organ sales rallied somewhat, at -0.9%.

4. The Majesty of Acoustic Pianos Is Fading
According to Music Trades’ April issue, acoustic piano sales are suffering from a glut of used instruments, as many Baby Boomers, who are downsizing their residences, are selling acoustic pianos they’ve had for decades.
A positive stock market has generally been a good indicator of increased acoustic piano sales; however, this correlation wasn’t a factor during 2016, as total acoustic unit sales decreased 8.9%, with grand piano unit sales at %, and verticals at -5.7%.
Retailers who specialize in refinishing used acoustic pianos are doing better than those who sell new instruments. Another positive factor is the increased sales of piano method books, indicating continued interest in learning to play the piano.

5. Portables Stage a Comeback
Following a disastrous 2015, the portable keyboard market enjoyed a remarkable comeback for 2016, with unit sales increasing 17.8% and retail value increasing 9.1%.
Music Trades’ analysis attributes a significant portion of this improvement to the fact that almost 50% of all annual portable keyboard sales occur during the fourth quarter. With the economy doing well, portables are likely to sell well during Q
Another factor is that the capabilities of many portable keyboards include those of digital keyboards and professional synthesizers, which has prompted many consumers to buy a portable instead of either of the other types, or both.

6. Digitals Are Dynamite
The digital piano market’s 6.1% increase in 2016 unit sales is its best performance since 2012’s +6.5%, and has been increasing every year since Retail value, however, only increased 0.3% for 2016, following an 8.4% increase for 2015.
The closely affiliated keyboard synthesizer sector had a rather dismal Unit sales did increase 2.9%, but the 2015 increase was 15.8%. Retail value was much better, with a 9.0% increase, based on an increase in average unit price from $1,320 to $1,398.
Keyboard controllers, an important accessory for many digital keyboard players, realized a 3.3% increase in unit sales, but that was just slightly more than one-third of 2015’s increase in unit sales of 9.3%.

7. The Organ Apocalypse
According to Music Trades, the home organ market has essentially disappeared, except among a few retailers who are able to sell these keyboards when they provide lessons.
More contemporary music in church services and declining church attendance continue to have an adverse effect on the institutional organ sales, with negative unit sales and retail value declining during 2016, as they have since 2007.

8. Advertising Strategies
With almost 50% of all portable keyboards sold during Q4, stores can maximize sales by offering a special bundle that includes an ancillary product, such as a keyboard controller or headphones.
Although keyboard retailers may want to sell more new instruments, it may be of more value to promote their inventory of used pianos to increase foot traffic and interest, and then try to upsell customers to new products.
Retailers can take advantage of the significant increase in the sales of digital keyboards by offering a free introductory lesson at the store, and then a discounted price for the purchase of a digital keyboard when the customer chooses a series of lessons.

9. New Media Strategies
Invite current customers and/or keyboard pupils to serve as “store ambassadors,” posting short videos of their practice sessions and explaining why they chose to learn the piano and how it has benefited the rest of their lives.
Piano stores that specialize in refinishing used instruments can offer to purchase a few old pianos, restore them and then donate them to the appropriate organizations. They can post videos of the restoration, donation and new use of the instrument on social media.
To generate some interest in the declining organ market, stores can offer to record videos of the performances of church organists in their community and post them on social media. Organists can provide commentary about why an organ is still essential to worship services.