Yamaha 2010 Annual Report Download - page 21

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Japan
North America
Europe
China
Other Regions
Review by Region
Market Trends and Fiscal 2010 Performance
● Demand for musical instruments in Japan is declining steadily. One illustration of this trend is the
90% decline in the market for acoustic pianos over the past three decades. The high piano owner-
ship rate and low birthrate are both responsible for this decline.
● Buyers of musical instruments continue to prefer lower-priced products because of the weak economy.
Demand for middle and high-end large keyboard instruments is falling as a result. In the piano sector,
sales of grand pianos are particularly weak. Sales of moderately-priced digital pianos were strong while
sales of middle and high-end models were slow. Wind instrument sales decreased because of a shift
to lower-end models and reluctance by musicians to buy high-end instruments.
Market Trends and Fiscal 2010 Performance
● In the United States, sales of high-end grand pianos plummeted as housing demand fell sharply and the
decline in the number of music stores accelerated. Guitars and drums account for one-third of the U.S.
musical instrument market, making this a market clearly oriented toward hobbies and entertainment.
● Sales of keyboard instruments started recovering in the fiscal year’s second half. However, wind instru-
ment sales remained weak because of cuts in education-related investments. In the guitar sector,
Yamaha increased its share of the electric acoustic guitar market even as the guitar market contracted.
There was a large decline in sales of professional audio equipment linked to the low volume of invest-
ments in facilities.
Market Trends and Fiscal 2010 Performance
● Europe’s market for musical instruments became smaller as the prolonged economic recession
caused customers to be reluctant to purchase high-end products and select lower-priced instru-
ments.
● In Germany, sales were relatively healthy mainly because of the popularity of new digital pianos. In
the U.K., sales declined as wind instruments from China captured a larger share of this market. The
economic crisis in eastern and southern Europe caused sales to fall. Overall, pianos and professional
audio equipment were the weakest performers in Europe.
Market Trends and Fiscal 2010 Performance
● The scale of the musical instrument market in mainland China is estimated at over ¥60 billion, with
acoustic pianos accounting for two-thirds of the total market.
● Pianos and portable keyboards posted solid gains in sales. Piano sales achieved double-digit growth
for the third consecutive year. Higher production capacity at the Hangzhou Factory is one reason for
this growth. Another factor is our successful sales strategies that include enlarging the sales network
and setting up Yamaha Piano Corners at music stores. In addition, professional audio equipment sales
continued to increase. In Hong Kong, sales were affected by the slowing economy in the fiscal year’s
first half but started recovering in the summer of 2009.
Market Trends and Fiscal 2010 Performance
● Customers continued to seek lower-priced products in response to the recession caused by the
global financial crisis. As a result, the migration of musical instrument buyers from roadside stores to
shopping malls and from small music stores to mass merchandisers gained momentum.
● Sales of pianos and portable keyboards were lower in the fiscal year’s first half as economies weak-
ened but digital pianos, guitars and drums continued to post relatively solid sales. Market conditions
were challenging in the mature markets of South Korea and Taiwan and in the Middle East which was
affected by the slumping global economy. Sales were brisk in Oceania and Southeast Asia. In Latin
America, sales increased in Brazil and Mexico. Sales were higher in India and Russia, too.
Sales by Region (Billions of Yen)
Sales by Region (Billions of Yen)
Sales by Region (Billions of Yen)
Sales by Region (Billions of Yen)
Sales by Region (Billions of Yen)
■ Yamaha musical instruments ■ Music schools, etc.
■ Yamaha musical instruments ■ Music schools, etc.
■ Yamaha musical instruments ■ Music schools, etc.
■ Yamaha musical instruments ■ Music schools, etc.
■ Yamaha musical instruments ■ Music schools, etc.
2010/03 125.4
2009/03
2008/03
2007/03
2006/03
2010/03 42.1
2009/03
2008/03
2007/03
2006/03
2010/03 53.0
2009/03
2008/03
2007/03
2006/03
2010/03 14.7
2009/03
2008/03
2007/03
2006/03
2010/03 41.1
2009/03
2008/03
2007/03
2006/03
Annual Report 2010 19
Performance