Canadian Music Trade - August/September 2020 | Page 10

News Plenty of Opportunity for Back-to-School Sales Despite Pandemic Challenges As the COVID-19 pandemic shut down schools across the country in the spring, and as it became more apparent that things would not be “normal” by the fall, MI retailers were left with a lot of uncertainty about what the crucial back-to-school sales season might hold. Now, as September quickly approaches and provincial governments and regional school boards across Canada reveal their plans and safety restrictions for schools, including music programs, some clarity is emerging. With that clarity, though, are both challenges and opportunities for MI retailers and their suppliers. The approach to music education is differing significantly from province-to-province, and even between regional school boards. There is obvious concern about using, and especially sharing, instruments – particularly brass and woodwind instruments because of the spread of the virus through respiratory droplets. “There is still much uncertainty about how students will return to school in September and even more uncertainty about how music programs will fit into these back-to-school plans,” says Jim Welter, director of Yamaha Canada Music’s Piano, Band & Orchestra Department, noting his company has an ongoing program into the fall that supports Yamaha dealers acquiring instruments for sales directly to schools and for rental to parents, depending on the province. “Most of our dealers have been very tentative to make commitments to inventory for the fall but that is starting to turn around quickly now.” MI retailers now have two opportunities, depending on the budgets, priorities, and concerns of their local schools. For some schools, there may now be an opportunity to boost sales of instruments so that schools can reduce the sharing of instruments among students. There’s also a likely opportunity to sell more accessories and disinfectants to schools to ensure any necessary sharing is made safer. As well, there is also the chance to sell or rent to more students/parents because they may feel it’s safer to keep their own instrument than to share school instruments. This is reinforced by Welter’s own experience: “We have also seen some independent schools in Québec making some larger purchases to ensure that students do not have to share instruments, and we have been working with our dealers to fulfill these orders. We’re also starting to see some increase in individual sales at the retail level,” he says. For Ontario and other provinces where classroom music teachers are being told to eliminate instruments from their lessons and programs, as well as singing/vocal instruction, this opens a big opportunity for stores offering lessons to pick up the slack. Those students who are most passionate about music will be looking for somewhere they can actually play and learn. Of course, more private students also means more customers for rentals and sales. “Due to reduction in school instrumental instruction [in Ontario], we are hoping for a much larger influx in private instruction demand, which we can now accommodate via our online lesson program,” adds Mark Hebert, president of Cosmo Music in Richmond Hill, ON. Alternatively, for stores without their own lessons program, they could also look into partnering with local private teachers and come up with mutuallybeneficial custom solutions to attract new students and customers. PHOTO: FLICKR/ MIA & STEVE MESTDAGH 2020 NAMM Global Report Now Available NAMM members can now download the 2020 NAMM Global Report, a detailed report on the latest MI industry trends and opportunities. This year’s document consists of data from more than 28 countries and regions, resulting in the largest report NAMM has created to date. Unsurprisingly, the U.S. is the largest market for music products by a wide margin. In terms of market sales share, the U.S. leads with 45.8%, and Canada ranks fifth with 4.5%. Filling out the top five are China at 10.8%, Germany at 5.9%, and Japan at 5.4%. The NAMM report indicates that Canada’s imports of musical instruments decreased 2.4% in 2019 compared to the previous year, with an especially large decrease of 22.8% in bowed instruments being imported. On NAMM’s list of the top sources of MI imports into the United States, Canada ranks ninth, with China being the largest source of music product imports into the U.S. by a large margin; however, Canada is the largest single export market for MI products coming out of the U.S., taking in 28% of the U.S.’s exports of MI products. NAMM members can download the report at www.namm.org/membership/global-report. 10 CANADIAN MUSIC TRADE