According to Greek philosopher Heraclitus, “The only thing that is constant is change.” Whether you’re in the music retail business or looking at it from the consumer’s perspective, this maxim perfectly sums up the way people shop for musical instruments and related products over the past decade. Significant shifts in technology and in the consumer marketplace continue to pose a unique set of challenges as evolving trends in the music industry occur more rapidly than ever before.
Key concerns regarding independent music retailers include: What are they doing that sets them apart from the major music retail chains? What can we all expect in the near future based on the myriad changes we’ve seen?
Yet the central question that independent music retailers must ask themselves constantly is: “Why?” Members of Yamaha’s sales management team regularly cover this issue with independent dealers throughout the country in our efforts to push each other to do the best we can to meet the needs of consumers. This avenue of inquiry can take several forms: Why should a customer buy from you and not consider shopping anywhere else? Why will the experience with your dealership or store be better than anywhere else, including a big music chain or the Internet?
Knowing your strengths, having a clear vision of your dealer mission and understanding what a consumer is looking for – not only in the shopping process, but also throughout the entire time they own a particular instrument or product – are all crucial aspects of knowing your brand identity. Now, more than ever, every independent retailer must have a strong, unique brand identity.
Whether you’re a modest family-owned store serving a small town or a standalone retail center serving a larger city or region, you need to understand your brand identity and sell that identity along with all the instruments and products you have in stock.
This harkens to that essential question of “Why?” An independent dealer’s brand must overshadow the multiple manufacturer brands hanging on the wall. Dealers must work harder to maintain their brand image than ever before, since there are so many places for consumers to research and buy the same products on the Internet. Whether offering preferable pricing, unparalleled customer support, personalized sales service to find the perfect fit between customer and product, or the right combination of all of that, convincing a prospective buyer that you have more to offer than all the other avenues to purchase out there now is critical.
Obviously, the marketplace is shifting to online shopping. Independent dealers must have an online presence and they must ensure the online shopper that the buying experience with them will be easy and effective. The truth is, many people would prefer to buy from independent retailers as long as they receive an experience equal to or better than other options. It’s up to the independent retailer to go beyond getting a customer to buy a product, but to have consumers buy it from them.
Online shopping has also generated changes and challenges, along with advantages and opportunities. Retailers don’t even need to be in the buyer’s geographic area, because the Internet brings the store to the customer’s fingertips. It’s more important than ever for music retailers to market themselves and allow a customer located anywhere to trust them as the preferred option with whom to do business.
Dealers must find a way to strike the right balance between a brick and mortar store and an online presence, which now extends far beyond a website. Independent dealers must proactively position themselves wherever customers may be shopping online and not just wait for a potential buyer to seek them out.
Before the Internet, a store’s reputation was largely based on word of mouth from customers. Today, word of mouth has transformed into an online community, taking the shape of feedback forums such as Yelp or a business’s own social media presence. Therefore, monitoring and addressing customer feedback is yet another added responsibility for which retailers must be diligent.
Maintaining stock is also a critical focus for independent dealers. Now, more than ever, a dealer must have an instrument or other product readily available for the customer. If not, the odds decrease that customers will wait for a special order through an independent retailer when they can go elsewhere and get it faster.
This is tricky business, given the cost to stock inventory and requires careful attention to detail and a honed strategy in demand planning. To be successful, dealers must partner with the brands they select and work with those companies to serve as a showroom that goes beyond what can be found online.
This emerging trend, which mandates that stores create a “consumer experience” that is unique, means that dealers must diversify to provide services like music lessons and repairs that add value for consumers. It’s no longer enough to simply have a nice location and hope that it will drive success.
Two areas of the music marketplace in which independent retailers have done a superb job of focusing on all of these trends, at least the ones Yamaha works closely with, are institutional and band and orchestral sales. Successful dealers have forged a very strong overall position within the educational market. Instrument rentals and in-store lesson programs are strong, and repairs and sales to local schools are an important part of their core business. In addition, most have a robust step-up instrument program.
These dealers have done an excellent job answering the “Why?” questions for schools, school bands, music programs, and other institutions. They clearly establish their brand identities, convey this to their customers, and make a strong case for why they give their customers a package of products, pricing, and services they’d be hard-pressed to find online or anywhere else.
In an evolving marketplace, becoming a successful music retail dealer requires rapid adaptation, innovation, and creativity. This ranges from devising captivating in-store and online designs, selling quality products, providing unmatched service and support, and offering a shopping experience that people who interact with your establishment will share with friends. This is the way to create a large and loyal customer base for years to come.
