Market Overview

Global
In December 2017, Music Trades estimated the global music products market in 2015 to be $15.9bn, including a $7.8bn US market and $5.8bn European market.

European

Top European Markets
Country	Estimated Market Size (£m)*
Germany	1,371
France	991
UK	860
Italy	664
Netherlands	232
Austria	208
Spain	191
Switzerland	163
Sweden	123
Norway	95
Total Size	4,897

* = Management estimate

The top ten European retail markets for musical instruments and music equipment (including the UK) are estimated to be worth approximately £4.9bn, and are undergoing a profound shift towards online retail.

The largest retailer serving the European musical instruments and equipment market is Thomann.de, based in Germany, with a 2018 reported turnover figure of approximately £730m. Other competitors in the European market include Musicstore.de (Germany), Bax Shop (Netherlands) and Woodbrass (France).

Music Trades estimated the UK market is growing at 2%, with a long-tail of small independent shops, pure play online retailers, general merchandisers and department stores. Management estimates c.35% of the UK market is already online as the sector experiences the channel shift away from physical stores.

The Board believes that the current dynamics of the UK competitive landscape, in particular the significant degree of fragmentation with no large or dominant retailers, presents a consolidation opportunity. Whilst acquisitions do not form a core part of the current strategy, opportunities are reviewed on an ad hoc basis.