Analysis of the Piano Industry in China
The modern piano industry was originated from Europe in the late 17th century, with more than 300 years history. United States was the largest piano producer in the early 20s while Japan has replaced US to be the new center of piano manufacturing in the mid 20th, with the growing numbers of top producers such as Yamaha and Kawai. Most recently, as the increasing trend of global industrial reconstructing, large producers tend to have production center in China. Now China is consequently the largest producer for piano in the world. Yang Weihua, the head of Pearl River Piano, stated that “China’s piano market has become the biggest, the most vibrant and the most promising market in a global scale, and the volume of production and sales represents approximately 80% of the global piano market” (Lin, 2014). As the booming importance of the Chinese market for the global piano industry, this paper will analyze the China’s piano market by focusing on several features of the Chinese market. It will firstly provide a general
Overview of the piano market in China, then it will proceeds to analyze the market trends of this market by focusing on four distinctive features of Chinese Market. A general summary will be provided in the last chapter.
2. Overview of the piano market in China
Currently, the global production centers for piano are mainly based in Asia and Europe, and China is the largest producer. The global piano production volume was around 450 thousands units in 2010. Europe market was mainly focusing on the high–‐end piano manufacturing, with production volume of nearly 16 thousands units; United states accounted for 7000 units; the total volume in Asia was 427 thousand units, consisting of 94% of the global production volume and China’s piano production represented 73% of the total number (see figure 1). In 2012, the total production volume of piano in China has reached 379,746 units, with 8.05% growth. Pearl River, Hangzhou Yamaha, Yichang Jinbao, Xinhai and Hailun are the five top manufacturers with total production of 292,000 units, consisting of 77.86% of piano production in China (CMIA, 2013). The production ncapacity of each manufacturer has surpassed 200,000 units per year. Pearl River piano, the largest manufacturer and supplier globally, is the first Chinese piano manufacturer whose annual output and sales volume exceed 100,000, and its domestic market share remains at over 20% (163 News, 2012). According to the data from General Administration of Customs of China (2013), the total export volume of piano in 2012 was 292,000, with a 11.57% drop compared to the last year. In contrast, the total import volume was 106831 and has increased by 15.64%, and the average price of imported piano was $808.42 (including secondhand piano). The volume of imported piano from Japan and Korean has reached 700,000 units, which accounts for nearly 17% of total market share for piano in China. As shown on the figure 2, in 2010–‐2012, the piano import volume surpassed the export volume in China, helping China be a leading piano importer in the world.
Lin, Yichen. (2013) “Zhujiang Piano: the volume of China’s piano accounts
80% of the global market.” Quanqing Wang.
163 News (2013) http://news.163.com