Music Manufacturers Move to Direct-2-Consumer Disrupts the Retail Music Business in 2020

LOS ANGELES, CA / ACCESSWIRE / January 14, 2020 / The Music Industry (MI) continues to find itself in a massive realignment in Omni Channel marketing, sales and distribution as manufacturers of amps, string instruments, amps, accessories and parts are adding a direct-to-consumer online offering. This is creating friction among their selling partners by offering consumers an option to purchase their favorite brands directly online.

Music customers today have many ways to purchase from some of the largest omni channel retailers like Guitar Center, Musicians Friend, Sweetwater, Sam Ash, Amazon, Thomann, Gear4music, eBay, Facebook Shop, Instagram Shop, as well as independent stores.

Manufacturers like Fender are paving the way for others to begin the migration to direct-to-consumer sales which offers the consumer a more convenient way to buy direct.

If manufacturers learn the process for 2.0 web development, understand best practices in online customer service, and incorporate educational video content, they can begin to enjoy a new, higher margin channel. This begins a permanent shift for the sales of their products direct to each of their customers. They will experience the relative ease and lower cost of retaining a customer compared to acquiring a new one.

This disruption will be felt by everyone – especially independent music stores. It’s apparent that the independent music store segment will continue to shrink significantly, as few are equipped to adopt the omni channel approach.

The majority of Independent music stores will be gone within the next several years. However, the independent stores that embrace an online presence could actually increase revenues by focusing on a “clicks & bricks” strategy that brings online customers into their stores for demos and local pickup.

Traditional music sales/distribution via large retailers will transition away from most MI products that do not have shipping weight issues. Global shipping costs are dropping with carriers like FEDEX, who are continually lowering costs to compete with the other carriers like UPS, DHL and Amazon.

The guitar & bass manufacturers that provide a product that is less expensive to ship worldwide will benefit the most and will be able to shift their current distribution models.

Amp manufacturers have a more difficult path due to product weight and bulk. Most will still need distributors and distribution centers worldwide.

The MI accessories and parts manufacturers will benefit greatly as these products typically weigh under 3 pounds, making it simple to go direct-to-consumers online.

MI manufacturers will need to find and retain smart tech and web development companies to build the correct consumer facing e-commerce infrastructure.

In addition, content creation and digital media placement experts will be needed for these new direct-to-consumer online marketing strategies.

One important aspect of consumer behavior in the music industry is preference. Music manufacturers should not consider the direct-to-consumer strategy as an easy path to new revenue just because they have an e-commerce-based site.

They will need to follow the guidelines of consumer trust, customer service, protect the security of private information and provide easy access to help with any issue online. Identifying how personal information will be used and clear opt in/out notification is essential.

Globally, this disruption will succeed utilizing “test-and-learn” tactics and will bring lasting success by enabling a one-on-one relationship between the brand and its customer.

Scott Friedland has served as CEO and President of multiple Digital Agencies that specialize in consumer marketing and lead generation with a focus on audience data , behavioral segmentation, programmatic, digital radio media integrated with mobile marketing, web and app development. He has been responsible for strategy through creative execution with an emphasis on digital delivery for verticals in music products, consumer electronics, sporting goods and health and beauty products.

Based in Southern California, Scott is an Emmy Award winning Director, Producer, Executive Producer, writer and a member of the Directors Guild of America.


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SOURCE: Rocketmps USA

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