LONDON--(BUSINESS WIRE)--Technavio’s latest report on the global vinyl records market provides an analysis on the most important trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
Poonam Saini, a lead analyst from Technavio, specializing in research on retail goods and services sector, says, “In the music and entertainment industry, digital format of music, vinyl records, and different formats of music players have considerable growth potential globally. Rising urbanization and high rates of employment will lead to an increase in disposable income among the emerging middle class. One of the key growth factor over the forecasted period will be the compatibility factor among consumers with social and digital media platforms. Services such as free shipping and product returns that help in enhancing consumer experience over B2C platforms will play a key role in the online segment.”
Vinyl records have made a mainstream comeback. Vinyl records are not only seeing sales for old classic recordings but is increasingly gaining the attention of different new-generation artists. Major artists such as Adele and Justin Bieber have also released their songs in vinyl record format. Moreover, there are also major companies that are releasing turn tables at affordable range, which will further fuel the demand for vinyl records in mainstream markets. It is regaining the importance of all the independent music and club communities, a trend witnessed at a global level.
The top three emerging trends driving the global vinyl records market according to Technavio consumer goods and retail research analysts are:
- Promoting vinyl record as special editions/deluxe product
- Many private labels and retailers have begun promoting records
- Changing format sales: from independent to online to subscription basis
Promoting vinyl record as special editions/deluxe product
Various players are trying to differentiate their product offerings launching special and deluxe editions of their copy. The manufacturers are now coming up with tailor made art to colored versions and patterned vinyl record to induce different customer segments. Manufacturers also receive customization orders for variations. Limited editions are now more in demand for customers as people see vinyl record as a luxury niche and maintain it as a collection.
In 2016, the vinyl copies of David Bowie’s final album Blackstar were sold up for as much as USD 1,200 after pressing plants witnessed a surge in demand following the death of the star. Collectors turned out to be the major buyers for the limited edition release. The copies were placed on eBay fetching in excess of USD 500.
“Various artist and labels are promoting their product as a deluxe product, quoting a higher price to increase revenue. The deluxe editions often include additional items such as posters of artists, graphics, additional content, booklets that induces the audiophiles or the collectors to go for the particular version. For instance, the Deluxe Vinyl editions of Led Zepplin introduced the original album in remastered form, two additional records of companion audio on 180g vinyl in a tri-fold sleeve,” according to Poonam.
Many private labels and retailers have begun promoting records
Record Store Day, an event held every year releases exclusive vinyl only releases to promote interest in local record stores has led to high demand. Retailers like Tesco, Sainsbury, and other retailers have promoted the sales of vinyl records through various promotional offers, releasing deluxe/limited editions of albums. Amazon, one of the leading retailers in this market, has witnessed a rise in sales of over 742% in 2013 and then followed it up with 2 for 1 flash sales in 2015, helping the market to grow by encouraging the music lovers to take advantage of their flash sale.
Changing format sales: from independent to online to subscription basis
The resurgence of the vinyl industry is dependent on various factors. However, the retail format has played a major role in the growth of the market. Independent retailers have always been the major point of sale of vinyl records. Since 2008, independent record stores have played an important role in the marketing of vinyl records as every third Saturday of April, labels offer limited edition vinyl records to over 700 independent stores in the US which have now transformed into a cultural phenomenon.
However, the recent surge has pushed the demand for vinyl records in the online segment. Retailers such as Amazon and eBay has become the most preferred destination among customers for buying a record online. The advantage of going online is the wide availability of stock, free delivery and the occasional and exclusive offers available at such sites. Online also offers the option to sell records and people looking for that particular record are able to buy it irrespective of place.
Key vendors are as follows:
| GZ Media |
| MPO International |
| Optimal Media |
| Record Industry |
| United Record Pressing |
|
Source: Technavio |
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