Merchandising Trends in Music Retail
To Some, music is a necessity.
Like food, water, and shelter, the ability to play, listen to, and experience music provides people with sustenance and purpose.
For as long as humankind has existed, rhythm and beat have carried us along. Music provides a means to communicate, a way to connect. A way to remember, and a way to respect.
We are in no different situation in present-day 2021. The effects of last year’s pandemic emergence, political and civil unrest, and economic climate coupled with the advent of a new technological age, have left many musical instrument brands and retailers with a decision to make: evolve or expire.
Luckily, this industry is fueled by passion.
Now, we’re simply faced with an opportunity to transcend a challenging landscape to create a better, more intentional way for musicians of any kind to have and to hold all of the tools that empower them to imagine. The demand for better retail engagements in the musical instrument market is there because we need music now more than ever.
The remainder of this piece offers retail trends affecting this industry pre- and post- 2020, uncovers shared pain points across category and channel, and provides a couple of ideas to consider as improvements and adjustments are made to brick and mortar music retail..
industry insight.
Throughout the 2010s, the multibillion global industry consisting of string, percussion, wind, and digital music instruments experienced growing revenue across the board.
In the U.S., much of this was attributed to a recovering and steadily growing economy. Discretionary income was high, affording people the luxury to spend more in the areas of recreation and leisure.
As demand continued, new product development flourished in tandem. Technology provided people with an opportunity to experience music in new ways. Bluetooth and other wireless technologies, sophisticated software, and breakthroughs in electronic offerings allowed people to experiment with new and traditional ways of playing music, sometimes bridging categories completely and carving out an entirely new sound or process. This spoke to the preferences and expectations of many complex and nuanced musicians, as well as those who have grown up in the digital age (Millennials, Generation Z). Of course, this is not to say that tech-enabled products are taking away from traditional sound or instrument; in fact, concerns about sustainability, sourcing, craftsmanship, and quality also proved to be important purchasing decisions throughout the 2010s for buyers of all ages.
Finally, the rise of e-commerce necessitated many music retailers to reconsider how they serve, support, and secure purchasing decisions from 21st century customers. Store formats have changed more in the past 10 years than perhaps the previous 40. Bankruptcies, buyouts, acquisitions, and restructures were common news headlines in years past, all pointing to the effects of an evolving consumer model. From store operations and digital integrations to store associate training and creative ideas on how to make music shops more immersive and multi-purposed, the music instrument market was well on its way to a remarkable pivot even before 2020.
Things that help your brain understand the transition: getting out of the jammies and into the real-people clothing, vacating your bedroom and moving into a dedicated “workspace” (try to be near a window if at all possible), going through your morning routine (consistently) and without touching tech before you’ve completed it, and letting people in your home know that you’re actually still on the job and not just “casually available by email.” There is a difference.
Enter 2020.
As the world submerged into a new way of life, the music instrument market flourished. Even with news like Guitar Center’s quick entry to and from bankruptcy, as a whole, the industry experienced more growth than it could keep up with.
CEO of Fender Guitars said his company went from furloughs, pay cuts and “looking into the abyss” to now record sales, inside a matter of months
“We’re selling more guitars than we know what to do with,” said Tom Sumner, Yamaha Corp. of America’s president and CEO, noting that his company has also sold five to six months' worth of digital keyboards in two months during the pandemic
Guitar Center experienced +85% sales for August 2020, with acoustic guitar and ukulele sales booming
Sweetwater reported double the traffic to its site at the beginning of quarantine
Reverb saw double and triple increases for searches related to ukuleles, microphones, and guitars
Globally, sales of keyboards skyrocketed
We could continue, but the point is clear: with more time on hands, slightly dragging spirits, renewed energy and excitement for hobbies, and a collective need to slow down and tune back into oneself, playing music became a reprieve found by many. In fact, all of this has caused Rolling Stone magazine to ponder if the deadly pandemic might just have inadvertently “given birth to a new renaissance era” for music.
Future outlook.
Though people are appreciating and wanting to learn how to play music in new (and increased) ways these days, there is still much to consider for the long-term success of the musical instrument market, its brands, and its retailers.
Eventually, we will see the effects of an again reduced discretionary income come into play as the world grapples to recover financially from 2020. People will begin to return back to work and school, and eventually back to concerts and live events even if the effects of the pandemic are still in full swing at the moment. Additionally, we cannot forget to consider how the more intangible aspects of last year’s events will affect consumer mindset, namely how an “altered perception of time and emotional numbness” are projected to affect buying habits well into 2023, as reported by the National Retail Federation.
Perhaps all of this will cause a demand for lower priced units and/or add-ons and accompaniments to enhance (rather than replace) existing or outdated instruments, setups, and systems. Perhaps we will see the opposite, and notice trends in top-of-the-line, high quality, long-lasting products and gear in high demand. Perhaps we will see sales fall altogether. Or not.
The point is that we do not know exactly what is ahead, so we must remain prepared, agile, and flexible in product inventory, assortment, merchandising, and purchase channels.
Further, consumers have gotten used to doing life online - not just shopping - but life. Everything from how an instrument is researched, purchased, taught, supported, connected to and shared within a community, played, reviewed, repaired, and more will be done online at growing rates.
While it is imperative for most musicians to actually touch the instrument they intend to purchase, 2020 did prove to many of us how even that step can be bypassed if it must. This means brick and mortar music shops cannot afford to take any part of the consumer learning and purchasing process for granted. Likewise, brands must create connected experiences, platforms, and omnichannel support models for their products that can be announced and pronounced within physical store settings.
A New Renaissance Era for Music.
Transitioning Pain Point to Possibility
Borrowing from what the Rolling Stones suggested may be this industry’s “new renaissance era,” we can all gather around the statement that “this industry won’t ever look the same again.” Knowing that, we can group our insights into shared challenges that provide fuel for our innovation and a roadmap to our future successes.
For any brand or retail experience in the musical instrument market, the following design themes should be taken into account before launching a new retail program:
“A NEW BOOM FOR BEGINNERS” - any time there is an influx of new consumers to a market, product education, guidance, and support becomes paramount. All retail channels (and their associated product teams, customer service reps, and store associates) will be tasked with making the journey into a new hobby as easy as possible.
“COMPLEX SIMPLICITY” - this oxymoron describes an increasing consumer demand for or acceptance of instruments and gear that are electronic, synthesized, wireless, or otherwise tech-enabled over more traditional options. Brands and retailers will need to work together to introduce these new products to the market without crowding, overwhelming, or disrupting consumer attention or store space. Demo areas, new educational offerings, and brand (or product) blocked environments will grow in importance as evolving demand drives new product launches.
“LIFE ONLINE” - From researching and purchasing, listening and playing, teaching and learning, online offerings are VITAL to help consumers feel confident and empowered, with the added expectation of convenience and control. Physical music shops must figure out how to make their stores relevant by working with, not against, online’s multi-faceted service-based business model. Additionally, this industry is not immune from the BOPIS/curbside conversation - not just in purchasing, but in repairing and restoring product as well. Dedicated pick-up, drop-off, or other digitally-enabled service spaces will need to be crafted for ease and efficiency.
“DIVERSE TASTES DEMAND DIVERSE EXPERIENCES” - the face of the typical musician has changed (age, gender, socioeconomic factors, skill level - all of it). The motivations for why a person picks up an instrument have changed. The decisions for making a purchase have changed: sourcing, sustainability, customer support, quality, emotion, etc. How we sell instruments has changed. Be a part of that changing narrative and reduce the chance of being left in the past. Restore, reignite, and reimagine legacy.
Understandably, this information means different things to different brands, different takeaways for different retailers, different implications for different product and channel categories. Trends, data, insights, and suggestions must first be filtered through a seller’s specific target market, product line, retail channel makeup, legacy, mission, corporate objectives, and other factors. We get that, and use it to guide our strategy as we design holistic retail solutions that bring about a truly customized experience in the field.
The solutions in the next section are meant to apply creative problem-solving to shared challenges. To evoke potential where overwhelm and hesitancy have dominated recent conversations.
This non-exhaustive idea bank has one goal: to get us thinking about how to pivot the physical musical instrument market into a viable, essential experience for people looking to use music to enhance their world.
Concept: diverse, diversity
Create branded spaces that streamline questions, empower customers, and guide them in the exploration and creation of their own desired experience (self-directed or employee-assisted).
Using adaptability as the driving force, create a multi-functional display (or display area) to highlight and feature product line, product type, skill level, tech level, or other desired characteristic in a “stationed” approach.
These displays can be arranged as single or multiple free-standing units. They can be mounted. They can be turned into modular, buildable systems, or perhaps a scalable environment of easily moveable pieces (kits) grouped by theme. Graphics, messaging, and branding can be switched out as often as needed making the piece functional for the long-haul. There are options for static or digital communication modes, such as an interactive kiosk for product selection/personalization.
See examples of category “themes” below:
“Beginner Basics” - Instrument Explorer
“Pick Your Sound” - Tone Education
“Brand Experience” - Understand Variations Within Brand
Consider also how these examples can easily be repurposed to address needs such as:
“Brand Experience” - Understand Variations Between Brands
Low to High Tech
Local Best-Selling / Local Demographic Characteristics
Staff Picks
And so on
CONCEPT: BRING SERVICE TO LIFE
Demo areas, in-person education/instructional offerings, and repair services are key elements of many music shops. While current safety and sanitation standards limit the accessibility of some of these valuable assets, proactive imagining of how these spaces can be envisioned for the future is possible now.
Pictured is a fictional environment for a brand. In a real scenario, branding would be customized to the space so important elements, messaging, and design characteristics could be integrated for any category variation - such as those described in the above “Diverse, Diversity” example. These pods, or “mini vignettes” offer immersive, streamlined education and product exploration spaces in what can otherwise be a crowded and chaotic shopping environment.
The options for smart merchandising, digital integration, and partnership promotion between brands, products, or categories are endless in these unique spaces.
