| When you think about the effects of the global | | | | others declined was accessory sales, as shoppers |
| recession, we immediately think big picture issues | | | | maintained purchasing items to keep up their |
| such as defaulting on mortgages, bank failures, | | | | current instruments rather than purchasing new. |
| and families in crisis. Yes, these are the largest | | | | Drum kit sales were at a high prior to the |
| issues the World has faced since the economy | | | | recession, as parents opted to purchase entire |
| collapsed in 2007, but the byproduct of this global | | | | drum kits due to a good price point of $500 or |
| lack of cash flow has been a drastic reduction in | | | | under. In 2008 there was a decline in drum kit |
| retail spending. Luxury and convenience items are | | | | purchases, which may be due in part to both the |
| no longer an option for some people, and large | | | | recession and the hot resell market on eBay and |
| companies have been seeing a decline in sales of | | | | Craigslist. Re-sell is a practice often put into place |
| high-ticket items over the past two years. In | | | | during a recession, with users selling off items |
| response to this NAMM, the National Association | | | | that they no longer need to generate extra cash. |
| of Music Merchants has compiled their Global | | | | If a person cannot afford lessons for the |
| Report to document the World decline in musical | | | | instrument, they may simply sell it to generate |
| instrument sales. | | | | extra cash. |
| The Global Report analyzes musical product sales | | | | Most drum accessories saw a decline, as the sales |
| around the world, including Australia, Austria, Brazil, | | | | of items such as Cymbals decreased by 6% in |
| Canada, China, Germany, Italy, Japan, Norway, | | | | the US. Cymbals hold a 14% market share of all |
| Spain, Switzerland, and the U.K. The report breaks | | | | drum accessory sales in the US, and have been |
| down music product sales into categories in order | | | | trending upwards since 1999 with an almost |
| to better analyze the recent sales trends and to | | | | consistent rise in retail value. Perhaps one of the |
| document the specific declines as we saw them in | | | | reasons for a decline in Cymbal sales could be |
| 2007 and 2008. | | | | attributed to the fact that it is seen as a luxury |
| Overall, it was found that although sales were | | | | item with regards to drumming. Items such as |
| strong in 2007 until the 4th quarter when stocks | | | | sticks and mallets actually saw a slight 1% |
| sharply dropped and the retail sector saw a | | | | increase, as it's evident that these products are |
| drastic reduction in spending. Every retail sector | | | | considered necessary to drummers. The decline in |
| was affected, but nowhere as sharply as | | | | Cymbal sales was seen in places around the |
| non-essential items. Although each sector was | | | | world, as Australia also reported a reduction on |
| affected in music product sales, some declined | | | | retail Cymbal sales. |
| more seriously than others. | | | | The impact of the global recession has obvious |
| The key to the reduction in sales was seen both | | | | consequences in all areas of the retail sector, and |
| in price point as well as the necessity of the | | | | as the NAMM global report illustrates, musical |
| item.Items such as pianos and home or Church | | | | products have not been excluded from the |
| organs saw a drastic decline, as those items had | | | | economic breakdown. As the economic world |
| a high price point and consumer spending was at | | | | slowly recovers, we can expect a better outlook |
| an all time low. One sector that did grow when | | | | for sales of musical instruments in the future. |