2. Harmonizing with the Economy
As has been the case for many retail sectors, music products have been and are benefiting from the upbeat economy. Total 2017 retail sales for the industry increased 4.1% to $7.4 billion, after essentially no increase from to 2016.
Industry experts also reported the slight increase in inflation helped with prices and, therefore, sales, but not enough to dampen consumer purchases.
Of the 15 major music products categories, just three – printed music, -1.5%; percussion, - 1.0%; and organs, -5.8% – experienced decreased sales during 2017, while portable keyboards, +11.2%, and fretted instruments, +7.3%, had the largest increases.

3. Few Sour Notes During the First Half of 2018
The hits just kept coming during the first half of for the music products industry, as retail store sales increased 4.2% during Q1 to $ billion, compared to $1.386 billion for Q
Q retail store sales increased 4.1%, or a total of $1.340 billion versus $1.287 billion during Q This was the third consecutive quarter of sales exceeding 4.0%, starting with a 4.4% increase during Q
All four regions, as measured by Music Trades, exceeded a 7.5% increase in store sales during the first half of 2018, with the West, first, at 8.9%; East, 8.3%; South Central, 7.7%; and North Central, 7.6%

4. A Stellar Performance for the Top Retailers
The significant increase in total 2017 store sales was clearly evident in the performance of the top 200 retailers, which collectively experienced a 5.9% increase compared to 2016, totaling $5.6 billion.
Among the top 200 retailers, 121 increased sales by an average of 7.6%; sales for 20 were unchanged from 2016; and 59 had decreased sales, averaging -7.2%.
Brick-and-mortar stores’ share of the $5.6 billion in revenues decreased slightly from 2016, 58.2% and 59.1%, or $3.310 billion and $3.173 billion, respectively, with online stores in the top 200 gaining 1.3% in market share, to 31.4%, $1.787 billion.

5. Suppliers Do Well When Retailers Do Well
Unsurprisingly, the top 100 music products suppliers also enjoyed the industry’s overall improved performance during 2017, although not as much as the top 100 retailers, as suppliers’ revenues increased 2.4% to $10.1 billion.
Product quality and value continued to be primary drivers of suppliers’ revenues, as has been the case for a number of years. Industry experts also cited the absence of major mergers and acquisitions, allowing companies to focus on efficiencies, etc.
Audio suppliers assumed the top position by market share, or $3.190 billion of the $10.1 billion total. Multi-line suppliers experienced a significant share decrease, from $3.070 billion for 2016 to $2.455 billion for 2017, thus relegating them to the #2 position.

6. Online Retailers Continue to Crowd the Stage
As noted at the top of page 2 of the Profiler, online music products retailers gained a bit more share from the total revenues of the top 200 retailers. Globally, the top 40 online retailers generated a 15.3% revenue increase during 2017, to $3.8 billion.
Online music products retailers in the US still had the largest share, or 52.0%, $1.982 billion, with Germany, second, a 30.3% share, $ billion. The other three countries in the top 5 with online companies were United Kingdom, Netherlands and Japan.
Musifai, a new (June 2018) online start-up is an example of the challenge traditional brick-and- mortar stores face. Musifai rents a broad range of instruments at very affordable monthly rates, targeting Millennials, specifically.

7. Off- and On-Key Trends
Gibson Brands’ filing of chapter 11 bankruptcy during May 2018 has been, undoubtedly, the biggest news in the music products industry, which occurred primarily because of its acquisition of Philips’ consumer electronics business and its poor performance.
Some in the industry have been concerned the guitar may become a minor instrument, because of more computer-generated music; however, it remains an essential instrument for composition and live-music settings.
The school-music sector achieved healthy revenue increases during 2017 and the first half of Sector experts say these increases are more a reflection of parents’ ability to purchase/rent instruments than larger school music budgets.

8. Advertising Strategies
Generating foot traffic is always a challenge for local music product stores. Suggest renting a changeable letter road sign offering free coffee or hot chocolate during cold days just for visiting the store.
Another foot-traffic-generating idea for store owners/managers is to call a few previous customers and invite them to the store to provide their opinions on a new instrument just added to the inventory. Offer them a coupon for a free lunch at a nearby restaurant.
Suggest retailers create displays that emphasize the quality of instruments from across the globe. Host a contest that provides a discount when a customer can name the capitol of the country or describe its flag of a featured instrument that interests the customer.

9. New Media Strategies
YouTube is clearly a digital channel made for music stores: short explainer videos of new instruments; invite loyal customers to provide a quick lesson (with a discount for their next purchase as a gift); and parents explaining how music participation has changed their child.
Consider creating a forum on your store’s Website where local musicians and customers can create a profile and discover new musical partners and/or mentors, and then promote it on social media with posts from the forum participants.
Ask loyal customers and/or local musicians to post videos with instrument care tips. Ask local schools’ music teachers to explain their programs and how they benefit students (Offer a discount for any parent who buys an instrument for a child at the school).