The music industry has undergone significant changes over the last two decades, primarily due to the rise of digital streaming platforms and the consequent decline of physical music sales. The once-popular CD format has been hit the hardest, with sales plummeting year after year. However, there are still segments of the music industry that are thriving, such as touring, publishing, merchandising, and advertising. Another area that is experiencing growth is the sales of musical instruments.
Against this backdrop, electronics retail giant Best Buy has decided to expand its musical instruments offerings by stocking up on various instruments and accessories. The move is part of the company’s strategy to diversify its product line and tap into the growing demand for music instruments.
According to details revealed on Monday, Best Buy will house the musical instruments within specialized, in-store musical centers. Manufacturers like Fender, Gibson, and Roland will be represented, alongside thousands of other products. In total, Best Buy is planning to open as many as 85 centers by year-end. “We’re not just extending the shelf space in the store, we’re creating a designated area specifically for this experience,” said Kevin Balon, vice president of Musical Instruments for Best Buy.
The decision to expand into the musical instruments market comes at a time when the industry is experiencing growth. According to a report by the National Association of Music Merchants (NAMM), the global music instrument market is expected to grow at a CAGR of 2.42% between 2020 and 2025. The report cites the increasing popularity of music-based reality TV shows and the rise of online music education platforms as factors driving growth in the market.
Moreover, the COVID-19 pandemic has also given a boost to the music instruments market. With people spending more time at home and looking for new hobbies, many have turned to music as a way to pass the time and cope with stress. As a result, sales of musical instruments have surged, with retailers reporting a significant increase in demand.
Best Buy’s move into the musical instruments market is not entirely surprising, given that the company has been looking to diversify its product line for some time now. The retailer has been expanding into new categories such as health and wellness, smart home technology, and even electric bikes. The move into musical instruments is therefore a natural extension of this strategy.
The decision to create specialized, in-store musical centers is also a smart move on Best Buy’s part. By creating a designated area specifically for musical instruments, the company is not only providing a better shopping experience for its customers but also positioning itself as a serious player in the market. The move also allows Best Buy to showcase its expertise in the field and offer customers a range of products and services that go beyond just selling instruments.
In conclusion, Best Buy’s decision to expand into the musical instruments market is a smart move that taps into a growing trend in the industry. By creating specialized, in-store musical centers, the company is providing a better shopping experience for its customers and positioning itself as a serious player in the market. With the global music instrument market expected to grow over the next few years, Best Buy’s expansion into this category could prove to be a lucrative move for the retailer.