How I’d grow Drums & Percussion
As a drummer since the age of 13, my passion for drums and percussion products was the driving force behind my interest in business and product development. The joy of creating music and the visceral power of playing drums inspired me to spend my career in the industry that brings magic to life. Over the years, I’ve had the privilege of working in various sectors within music and audio including music and audio production, professional audio, consumer audio, and communication technology. With an MBA and a 20-year career staying at the forefront of state-of-the-art product and business building, this article is designed to help the companies that create my favorite instruments grow. I believe my diverse background allows me to approach the challenges the category faces from fresh perspectives, offering solutions that may differ from conventional thinking. I’d love to hear what you think.
Humble disclaimer: By no means is this article intended to denigrate or be dismissive of the good work being done every day by the people who work in drum and percussion companies. My goal is to help companies amplify what’s working and provide some ways to rethink what might not be working as well. I have great respect for the companies, brands, and people I’m addressing here and I want to state upfront my concern that this may be taken as arrogant or “the smartest guy in the room.”
CURRENT CONDITIONS
Working from conversations with my network of professionals in the trenches, I understand the current state of play to be characterized by very slow, or even negative growth and narrow margins. I have heard companies described as being “on the chopping block,” “on life preservers,” having “soft years” leading to layoffs, and “on the edge of a cliff.”
Acoustic drums and percussion are highly saturated and consolidation is widely expected. Electronic drums have been a bright spot, but are maturing to, at best, low double-digit growth rates, rather the explosive growth seen closer to the turn of the millennium — and are reportedly declining sharply through the first half of 2024.
Slow Growth or Decline: The market for drums and percussion instruments has seen little-to-negative growth due to saturation, niche market size, and competition from other forms of entertainment for both acquiring new customers and retaining existing customers.
Narrow Margins: High cost of materials, complex product portfolios, and a relatively low degree of vertical integration (due to contract manufacturing, third-party distribution and/or logistics for a couple of examples) contribute to low profit margins. Additionally, there is significant price competition.
Customer Demographics: Predominantly musicians (professional and hobbyist) and educational institutions. Buyers tend to be between somewhat and highly knowledgeable, and may be brand-loyal but are highly price-sensitive.
Buying Behavior: Customers tend to make infrequent but significant purchases, supplemented by small accessory and consumables. There is a growing trend towards online shopping.
THE SITUATION IN SUMMARY
Drum and percussion industry performance is hindered by a confluence of value-creation issues including innovation stagnation, weak brand differentiation, inadequate usage data, low drummer involvement in product development, and low commercial and channel innovation. These factors result in slow responsiveness to market trends, inefficient feedback loops, and, at times, failure to meet the evolving needs of drummers. Consequently, market participants are struggling to grow revenue and profitability.
WHAT DO DO ABOUT IT
To overcome growth inhibitors and enable future growth, the drum and percussion industry should adopt a radically drummer-centric strategy, creating frequent opportunities to listen to drummers about problems and preferences and collect data on usage and perceptions, enabling them to craft stronger brand stories and discover more opportunities to experiment and innovate.
SPECIFIC AREAS TO ADDRESS
Overcome innovation stagnation: significant innovation that delivers meaningful drummer utility is incredibly rare.
Prioritize innovation by allocating resources to R&D; scout, partner, and evaluate M&A opportunities with startups and complimentary ventures, integrate technology into traditional products to create advanced, hybrid, or smart variants. Partner with universities and suppliers to commercialize novel developments. Invest in sustainable manufacturing practices and materials. Consider the diverse needs and preferences of various customer segments, cohorts, and personas.
Take a bold brand stance: virtually all market participants lack a clear, differentiated value proposition.
Develop strong brand identity centered around a unique value proposition for the drummer. Utilize brand storytelling focused on solving drummers’ problems.
Win with drummer data: limited reliable and detailed usage data results in slow responsiveness to market trends and limited data-driven decision-making in product planning and development.
Invest in data collection and analysis to gather insights on usage patterns, identify emerging trends, respond more rapidly to market shifts. Integrate data-backed insights into all stages of product planning and development to ensure decisions are informed and drummer-centric.
Listen to drummers throughout product development: lack of iterative development and slow feedback loops resulting in products that may not fully meet drummers’ needs and expectations.
Establish mechanisms for collecting and integrating drummer feedback throughout the product development lifecycle. Adopt an iterative development process that includes regular user testing and feedback throughout. Develop formal channels for regular feedback, such as surveys, focus groups, user testing sessions, and social media listening and engagement.
Commercial experimentation: traditional sales and distribution channels dominate, with little evolution or exploration of new business models; and retail merchandising experiences fail to attract and engage drummers.
Explore new channels, including e-commerce, direct-to-consumer (DTC) models, and subscription services. Invest in interactive, immersive, and educational retail experiences. Form strategic partnerships with emerging music platforms, online marketplaces, and consumer tech companies to expand reach and create new revenue streams. Strengthen product marketing comprehensive product information and virtual try-out tools. Consider educational and informational media efforts that provide access to learning, events, and feedback. Create VR experiences that allow drummers to explore the manufacturing process and test instruments virtually. Consider installing a circular economy, facilitating recycling and upcycling of instruments.
Drum and percussion companies face a challenging landscape characterized by slow growth, narrow margins, and an array of inhibiting factors. But I believe they can be overcome to create more vibrant and profit-producing future for all participants if we can have the courage to rethink business-as-usual. Notice the recommendation here is not, “every acoustic drum company should add an electronics line,” or “narrow down your sizes, options, and finishes to promote efficiency.”
Drawing on my lifelong passion for drums and my career in music and audio products, I’ve outlined a strategy that centers on a drummer-centric approach. This involves prioritizing innovation, enhancing brand differentiation, leveraging data, integrating drummer feedback into development, and experimenting with new commercial vehicles. The goal is to transform capacity for growth and profitability by addressing current limitations and seizing new opportunities.
I want you to be successful. I want your friends and rivals to be successful. I want drummers and retailers and distributors and suppliers to be successful. Because the drum business is important and special to me, and if you’re still reading all the way down here, it probably is for you too. So let’s tear up the old playbook and get to work rethinking about how to serve drummers.
Or at least that’s what I think. Tell me what you think.