Piano maker hits the right notes for growth in China

US piano maker Steinway & Sons is bullish on long-term growth prospects in China and has earmarked an ambitious expansion plan to achieve the same, according to a top company official.

"We will roll out various approaches to upgrade our stores in first-tier and lower-tier cities in China to elevate overall customer experiences. But we have not set a robust goal for growth as clients' firsthand experience of our pianos always happens before purchases," said Wei Wei, president of Steinway & Sons Asia-Pacific.

The piano brand with a history of over 167 years operates franchise stores of various sizes in 80 Chinese cities. Apart from increasing the piano models at its stores, Steinway will spruce up some of the existing stores by adding practice rooms, Wei said in an interview during the opening of the Steinway Hall in Shanghai.

Wei said that business in the ensuing years would largely come from sales to individuals. "Two decades ago, 99 percent of the Steinway pianos sold in China went to performance houses, orchestras, and conservatories of music. Currently these sales account for just 40 percent, and the rest goes to individuals," Wei said.

Sales to individuals and families started in the China market in 2006 and the ratio has been increasing steadily every year, she said.

Higher incomes and changes in living standards have contributed largely to the increased sales. More Chinese parents are now willing to invest more on their child's first piano, while most of their counterparts bought entry-level pianos for children 20 years ago, according to Wei.

China is the world's largest piano market with roughly 30 million amateur piano learners, according to the Chinese Musicians' Association.

The country also produces the largest number of pianists, and is home to excellent piano educators and conservatories of music, rivaling those in Europe and the US, said Ron Losby, chief executive of Steinway & Sons.

"I would say without question and hesitation that China is Steinway's largest market and one of those with the fastest growth worldwide and our future in China will produce more milestone events," he said.

The company's growth in China has been rapid in the past three years. It announced the opening of a new Asia-Pacific headquarters at the Shanghai Free Trade Zone in 2018, and launched a Steinway gallery in Beijing's Shunyi district, aiming to gain higher market shares in North China.

Steinway Hall Shanghai with 500 square meters including a concert hall, piano practice rooms and showrooms will hold concerts and master classes, and provide pianos for practice for roughly 2,000 Steinway artists during their trips to Shanghai for performances, according to the company.

"We hope that this place in downtown Shanghai's Middle Huaihai Road will become a new music landmark for Shanghai and supplement the city's rich cultural life," Wei said.

Before Shanghai, Steinway Hall Beijing was opened in June 2017 and has held more than 500 concerts and master classes, making it a home for music enthusiasts and driving sales growth in Beijing, the company said.