The music retail has been present in Germany with instruments and sheet music for over 200 years. The music dealer was renamed 'music retailer' in 2009.
What distinguishes a music retailer?
Music retailers are responsible for the sale and marketing of musical goods, recordings, and instruments. Consulting on specialized goods and services is a priority. Knowledge of music history, music literature, music theory, art history, or the production and use of instruments and recordings is an advantage. They cooperate with stages, media institutions, concert organizers, and the recording industry.
Development in music retail
In recent years, significant sales declines have been recorded among music retailers. The latest developments should now be taken more seriously, and action should be taken against the trend.
Current facts (2016):
The musical instrument industry had to endure losses in Germany last year:
Foreign business: -4.5% less foreign sales of instrument manufacturers
Domestic business: -2.9% less sales of manufacturers in 2016 compared to the previous year
The decline in sales in the music retail sector has been shaped by the latest developments and agreements:
- Continuous decline of brick-and-mortar retail
- Competitive disadvantage for German retailers due to the CITES species protection agreement
- Changing consumer behavior: Consumers are increasingly looking for information about instruments online, price is becoming more decisive than expert advice and quality instruments
- Result: Strong increase in online shops
- Existential threat from dumping and offers below the purchase price from foreign online providers
The brick-and-mortar music retail has steadily decreased in recent years. Visitors are already coming with prior information gathered from the internet to the specialist retailer (Changing Consumer Behaviour). The retailers now have to switch to a mixed concept, consisting of an attractive online presence and a stationary shop, in order to secure their existence.
The CITES–Species Protection Agreement, which has come into force in Germany since January 2017 with its stricter regulations, is inhibiting German music retailers. According to German retailers, there is a risk that they will not be able to provide the desired product to the end customer due to a lack of evidence. Dealers are under enormous pressure because customers can switch to dealers in other EU countries relatively easily. Some of these have far less strict regulations for products made from wood species protected by CITES. However, at this year's Frankfurt Music Fair newprocess techniques presented. Thanks to thermoenergetic treatment, domestic wood species are now also available to manufacturers for the production of high-quality musical instruments.
The major music retailers got into online business early. Online shops will continue to largely influence the musical instrument industry in the future. Innovation and active countermeasures online and offline will decide whether music retailers will continue to exist.
Dumping prices, with offers far below the purchase price, were mainly offered by foreign suppliers during the Christmas business in 2016. Such actions prevent any price increases for musical instruments and reduce the profit margin of retailers.
Sources:
Article: Cites continues to move the musical instrument industry, 02/17, Business performance 2016 does not meet expectations, 04/17: www.gdm-online.com, Press release: Musikmesse 2017: Visitors from 119 countries at the international industry meeting point: http://m.messefrankfurt.com/www/frankfurt/de/media/
entertainmentmediacreativeindustries/musikmesse/frankfurt/texte/MM-Fachschlussbericht-press.html,
http://www.zbb.de/bildung/ausbildung/ausbildungsberufe/musikfachhaendler-musikfachhaendlerin/
Editorial contribution - text only:
Joana Fritsche
(freelance journalist)
