2. Sub-Par Performance
As much as electronic music products and the school music market provided any lift for the musical products industry during 2015, the keyboards market was a drag on the industry, with home piano sales decreasing 0.03% and portable keyboards 16.7%.
The overall organ sector did increase revenues 3.3%, from 2014’s $41.5 million to $43.0 million, but the increase was totally the result of a 5.3% increase in the retail value of institutional organ sales.
The only other bright spot in the keyboards market was an 8.4% increase in the retail value of digital pianos for the home. Although unit volume for electronic pianos and professional organs declined 1.0%, their retail value increased a meager 0.3%.

3. Only a Slightly Better First Half of 2016
Although the overall musical products industry enjoyed a good start to 2016, with a 3.3% increase in Q1 revenues, digital keyboards was the only keyboards segment to register a revenue increase, or +2.1%.
Overall musical products revenues increased even more during Q2 2016, or 4.4%, and grand pianos had a slight 0.1% increase; portables, +3.1%; and digitals again led the keyboard market with a 4.3% increase.
Regionally, digital pianos had positive revenue growth in the East, North Central, South and West during Q1 2016, while grand pianos, digital pianos and portable keyboards recorded revenues increases in all 4 regions for Q

4. Acoustic Market Needs a Complete Re-Tuning
The acoustic piano market (grands and verticals) continues to be pegged to the stock market’s performance, which declined during 2015, which in turn significantly decreased unit volume - 9.2%. In addition, there was a glut of excellent used acoustic keyboards.
Unit volume of grand pianos of all sizes declined during 2015, resulting in an overall decline of 7.6%. Retail pricing also decreased for both price categories, with those less than $10,000, -4.4%, and those more than $10,000, -8.3%.
Verticals fared even worse, as unit volume for all four of the segment’s instruments recorded decreases, resulting in a double-digit loss of 10.2%. Retail pricing decreased 13.3% for verticals less than $4,000 and 7.3% for verticals more than $4,000.

5. The Dead Weight of Portables
For almost 30 years, a portable keyboard was the most affordable alternative to larger and more expensive instruments; however, the availability of very low cost and, even free, keyboard apps for smartphones and tablets has negatively affected the sector.
This may be the primary reason why mass merchants, such as Wal-Mart, Target and Best Buy, no longer give portable keyboards a prominent position among their musical products merchandise, contributing further to the decline in sales.
The double-digit decrease for the overall portable keyboards market during is particularly discouraging as the two sub-sectors, less than $199 and more than $199, had healthy increases in unit volume and retail value for 2014.

6. Digital Keyboards’ Key Metrics, 2015
Total
Unit volume
141,343
Percent change from 2014
+4.5%
Wholesale value
$100.1 million
Retail value
$178.8 million
+8.4%
Average unit price
$1,265
National Association of Music Merchants (The Music Trades), April 2016

7. Organ Failure
Both the home and institutional organ sectors have the unenviable distinction of adding a 10th year to its consecutive decline in unit volume during 2015, although institutional organs’ retail value increase of 5.3% finally bucked the trend.
The wholesale value, or the value of shipments to retailers, of home organs did register a very slight 1.2% increase during 2015, but the increase didn’t help the retail value much, as it declined 0.4%, compared to -0.1% for 2014.
Much like the acoustic piano market, the average unit price of $9,236 for a home organ was probably the major factor in causing the continuing decline of the sector.

8. Advertising Strategies
Since there seems to be a direct correlation between the stock market’s performance and the sale of acoustic pianos, a possible promotion is a discount of 1% for every 5 points the stock market increased during the previous month.
During the holiday shopping season, keyboard retailers may be able to generate foot traffic by placing a piano or other instrument outside the storefront and hire a musician to play holiday music during potentially high- traffic periods of the day.
Keyboard retailers may want to consider offering customers one or more free lessons in-store to maximize their interest in buying an instrument, especially if they demonstrate a proficiency or an enjoyment of what they’ve learned.

9. New Media Strategies
Use Periscope or other live streaming apps to offer the public a live Christmas Eve performance of holiday music from the store that can be enjoyed at home or at parties.
Record and upload a video showing the deficiencies of using a keyboard app with a smartphone or tablet compared a portable keyboard. Offer a discount to all those that comment on the video.
Keyboard retailers may find it useful to use marketing and/or social media to post a poll or survey in an effort to determine what factors are causing a lack of interest in keyboards locally, and then responding to the answers through social media or a blog.

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