Abstract:With the improvement of the living standards of mainland residents and the increase of disposable income of residents year by year, the market scale of the mainland musical instrument industry will continue to expand. In 2021, the import value of musical instruments, their parts and accessories reached US$571 million, and the export value reached US$2.284 billion, an increase from 2020, and by 2022, the import and export value decreased, with the import value falling to US$564 million and the export value falling to US$2.147 billion. In 2023, the import value of musical instruments, their parts and accessories will drop to US$500 million, and the export value will drop to US$2.083 billion. In the future, the mainland musical instrument industry will develop towards intelligence, diversification and personalization.
1. Definitions and Classification
A musical instrument is an instrument that can produce musical sounds and recreate musical art. They produce sound in different ways, including string vibrations, diaphragm vibrations, blowing, etc., and can create rich musical effects through the skill and performance of the player. The modern classification of musical instruments, also known as the logical taxonomy, was developed on the basis of the Indian four-way taxonomy. That is, a classification system based on the vibration mode, actuation mode, and performance mode of the instrument. They are called: body sound instruments, membrane sound instruments, air sound instruments, string sound instruments and electric sound instruments.
Second, the business model
1. Procurement mode
The procurement mode of musical instrument production enterprises mainly adopts the centralized procurement model, where there are common materials, it is more advantageous to handle the procurement with a centralized plan, and the material items can be approved, and the purchasing department is informed to submit the purchase according to the plan, and the procurement department regularly handles the procurement. This procurement model can improve procurement efficiency and reduce procurement costs, but it also requires the establishment of a sound procurement system and process to ensure the fairness and transparency of procurement. Musical instrument manufacturers should negotiate a long-term supply price with suppliers for materials that are regularly used and used in large quantities, and inform the purchasing departments to submit purchases according to their needs. The bulk materials used in production are mainly purchased in the form of bidding.
2. Production mode
The production mode of musical instrument production enterprises mainly adopts the production mode of "sales and production". The production department arranges the production task according to the order provided by the marketing department; the material control department formulates the procurement plan according to the production task notice and purchases externally, the quality department is responsible for the incoming inspection of raw materials and the quality control of the production process; the production department reasonably organizes the production of enterprise products according to the production task. This model helps to reduce inventory overstock, reduce production costs, improve the efficiency of capital utilization, and be more flexible in responding to changes in market demand.
3. Sales model
The sales model of musical instrument manufacturers mainly adopts the distribution model, in which the enterprise wholesales musical instruments to distributors, and the distributors are responsible for selling them to musical instrument stores or final consumers. In the distribution model, musical instrument manufacturers usually establish long-term and stable cooperative relations with distributors, and ensure the smooth progress of cooperation between the two parties through contractual constraints and benefit sharing. Dealers are responsible for sales promotion, inventory management, after-sales service and other work in the designated area to ensure that the instrument can reach the end consumer smoothly.
3. Industry policy
1. Competent departments and regulatory systems
The competent authorities of the musical instrument industry are mainly the Ministry of Industry and Information Technology of the People's Republic of China and the State Administration for Market Regulation. The Ministry of Industry and Information Technology is a constituent department of the State Council, and its main responsibilities are: formulating and implementing plans, industrial policies and standards for the musical instrument industry, monitoring the daily operation of the industrial industry, promoting the development of major technical equipment and independent innovation, managing the communication industry, guiding and promoting the construction of informatization, and coordinating and maintaining national information security. The main responsibilities of the State Administration for Market Regulation include being responsible for the comprehensive supervision and management of the market, the unified registration of market entities and the establishment of an information publicity and sharing mechanism, the organization of comprehensive law enforcement of market supervision, the undertaking of unified anti-monopoly law enforcement, the regulation and maintenance of market order, the organization and implementation of the strategy of strengthening the country with quality, responsible for the quality and safety supervision of industrial products and special equipment, and the unified management of measurement standards, inspection and testing, certification and accreditation.
The self-discipline management of the musical instrument industry is managed by the China Musical Instrument Association, a subsidiary of the China Light Industry Federation. China Musical Instrument Association is approved by the Ministry of Civil Affairs of the People's Republic of China to set up cross-regional, cross-departmental, various economic types of musical instrument production, management, scientific research, teaching, service and other enterprises, institutions, associations and individuals voluntarily formed by the industry, is the government under the guidance of the industry intermediary organization, to undertake the whole industry coordination and management of the important task. It is mainly responsible for participating in the formulation of industry development plans, conducting preliminary demonstration and preliminary review of industry investment and development, major technological transformation, technology introduction and other projects, carrying out industry investigation and research, and putting forward suggestions on industry policies and regulations to the government, carrying out industry survey and statistics, collecting, analyzing, managing and publishing industry information, providing information consulting and services for enterprises, participating in the formulation and revision of industry technical standards and management standards, and organizing the implementation of standards.
2. Relevant policies
In recent years, the mainland government has introduced many relevant policies to promote the development of the musical instrument industry in the mainland, such as the "Opinions on Promoting the Cultural Industry to Empower Rural Revitalization", which promotes the expansion of musical instrument production to musical instrument culture, and will promote the integration of the musical instrument industry with complex formats such as music training and interactive experience. This will help expand the industrial chain of the musical instrument industry, achieve diversified development, and bring more growth points and profit space to the industry. The "Guiding Opinions on Promoting the High-quality Development of Light Industry" emphasizes strengthening the brand building of musical instruments such as teaching instruments, personalized musical instruments and musical instruments with national characteristics, establishing a unique brand image, improving market awareness, enhancing the competitiveness of these market segments, promoting sales growth, promoting the digital development of special intelligent equipment for pianos, electronic musical instruments and Chinese musical instruments, and promoting technological innovation and product upgrading in the musical instrument industry. The application of digital technology will improve the performance, functionality and user experience of musical instruments to meet the diverse needs of consumers. The introduction of a series of policies has promoted the growth of market demand and the digital development of products in the mainland musical instrument industry.
Fourth, industry barriers
1. Technical barriers
The production of high-quality instruments requires exquisite craftsmanship and deep experience in violin-making, which requires a long period of technical accumulation and talent training. In addition, with the progress of science and technology, musical instrument manufacturing is also constantly introducing new technologies and materials, such as digital sound control, new synthetic materials, etc., and the mastery and application of these new technologies also constitute technical barriers. At the same time, instrument manufacturing also requires a deep musical understanding to ensure that the instrument meets professional standards in terms of sound quality, feel, etc. The existence of technical barriers makes new entrants need to invest a lot of time and money in technology research and development to meet market demand.
2. Brand barriers
Brand is one of the important assets of the musical instrument industry, and well-known brands tend to have high market recognition and consumer loyalty. Brand barriers are mainly manifested in consumers' awareness and trust in the brand, and existing brands have established a good image in the hearts of consumers through long-term marketing and word-of-mouth communication. If new entrants want to break down brand barriers, they need to spend a lot of time and money on brand building and marketing, and gradually win the trust and recognition of consumers by providing high-quality products and services.
3. Channel barriers
The channel barriers in the musical instrument industry are mainly manifested in the establishment and maintenance of sales channels. Existing enterprises have established a stable sales network and channel partnership, often through years of market expansion. These channels can not only help companies get products to market quickly, but also provide effective market feedback and information support. If new entrants want to break down channel barriers, they need to invest a lot of resources and energy to establish their own sales network and channel partnerships. At the same time, it is also necessary to consider how to compete with the channels of existing enterprises to ensure that their products can enter the market smoothly.
4. Cultural barriers
Musical instruments are not only a commodity, but also a carrier of culture and art. Different musical instruments represent different cultural and artistic backgrounds, and consumers often consider their cultural connotations and artistic values when choosing musical instruments. Therefore, in order for new entrants to succeed in the musical instrument industry, they need to deeply understand and study the relevant cultural and artistic values of musical instruments, and integrate them into product design and marketing strategies to meet the cultural needs and aesthetic pursuits of consumers. At the same time, new entrants also need to actively participate in relevant cultural exchange and promotion activities to enhance their cultural heritage and brand influence. The musical instrument industry constitutes a certain barrier to new entrants in the industry in terms of understanding and grasping the cultural and artistic value of musical instruments.
Fifth, the industrial chain
1. Analysis of the industry chain
The upstream of the musical instrument industry chain is mainly the raw material industry, and the main raw materials are wood, metal materials (steel, aluminum, etc.), leather used in the production of drum surfaces and parts of some percussion instruments, and plastics used in the production of musical instrument shells. The middle reaches of the industrial chain are mainly for the production and manufacturing of musical instruments. The downstream of the industrial chain is the consumer. The industrial chain of China's musical instrument industry is shown in the figure below:
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