According to a survey conducted by finance firm GE Capital CDF at NAMM 2012, lack of consumer demand will have the greatest impact on the MI industry in 2012.
Some 43 per cent of respondents agreed that the above concern was the most severe and this was followed by the growing popularity of online retailer and auction site purchasing, cited by 23 per cent.
Next they were asked what percentage of their business will be composed of online sales in the year ahead and 54 per cent of dealers said it could account for as much as 15 per cent. Another 14 per cent said online sales could account for 15 to 30 per cent of their business. Twenty percent indicated they didn’t offer online sales at all.
“In the year ahead, we believe that the increasing accessibility of online instrument sales – combined with a gradually improving economic climate – will play a significant role in the ongoing renewal of this industry,” said Marvin M. Solomon, president of Commercial Distribution Finance's (CDF) Strategic Industries Group, which finances music instrument dealers. “We hope to see continued innovation at the dealer level and exciting product developments as well, which will also drive consumer interest.”
Despite foreseeing a further decline in consumer spending, many of the participants – made up of manufacturers (16 per cent), distributors (12 per cent) and dealers (45 per cent) – declared themselves optimistic about the year ahead.
Thirty one percent said they expect their company's overall sales to grow ten to fifteen per cent this year, while 26 per cent expect sales to increase by five to ten per cent. Twenty three per cent predicted sales would rise 15 per cent or more.