Gear4Music

Gear4music (Holdings) plc

Header

Gear4music (Holdings) plc

About us
Our Business Model

OUR BUSINESS MODEL

Gear4music is an online retailer of musical instruments and music equipment, operating 20 websites in 15 languages and 9 currencies.

Gear4music is about making quality music gear more accessible and affordable for all musicians.

At the year end we listed over 44,700 products from over 790 manufacturers. 

Branded products

Gear4music has developed long-term partnerships with many well-recognised brands within the music products industry, who rely on the specialist product knowledge of Gear4music’s staff, the high standard of customer service that Gear4music provides, and the high standard of presentation both online and at the Gear4music showrooms. Own-brand products Ongoing development of Gear4music’s own-brand product range has been a focus since Gear4music.com was launched in 2003, and now covers a wide and varied range with over 2,600 products listed.

Own-brand products
Ongoing development of Gear4music’s own-brand product range has been a focus since Gear4music.com was launched in 2003, and now covers a wide and varied range with over 2,600 products listed.

We believe that achieving a very high degree of customer satisfaction is fundamental to sustained long-term growth, and we are committed to continually improving the service experienced by our customers.

We leverage our technology and empower our specialist staff to ensure key touchpoints deliver a market-leading experience, and monitor our progress carefully using independent sources such as Trustpilot.

Multilingual support for overseas customers in non-English speaking countries continues to be a key investment focus, and a prerequisite for many of the Group’s dealership agreements when selling outside the UK.

Ongoing product training is routinely undertaken to ensure staff have relevant and up-to-date knowledge to enable them to advise customers.

Customer overview

Gear4music’s customer base is primarily (over 95%) made up of private individuals, from beginners and parents buying musical instruments and music equipment for their children, through to professional musicians. Customers tend to be the end-users of our products.

On 28 February 2018 we had 1.9m people registered on our database (28 February 2017: 1.4m), of which 474,600 are active customers (being customers who have purchased from Gear4music during the last 12 months).

As the Group rapidly increased its European business it acquired a further 408,500 new customers (FY17: 288,900), and 105,000 customers came back to us to place at least one follow-up order. Average order value in FY18 was £127, up from £124 in FY17, and £116 in FY16.

 

We believe a successful e-commerce business requires a unique combination of talented staff, excellent products, efficient systems, robust physical operations and reliable delivery partners.

Staff 
We have a strong, committed and experienced management team, working alongside passionate staff with in-depth knowledge of their specialist area of focus. 

Products 
Our own-brand product ranges have taken over 15 years to develop, working with some of the best manufacturers from around the world to ensure we build on our reputation for great quality at affordable prices. In addition, we have built strong relationships with the industry’s biggest brand names, including Yamaha, Roland, Fender and many more.

Premises 
The Group currently operates from 301,000 square feet of operational space – 185,000 square feet in York, 72,000 square feet in Germany, 38,000 square feet in Sweden, and 6,000 square feet in Manchester. Following growth of over 100% in Scandinavia during FY18, we will be increasing operational space in Sweden by 40,000 square feet ahead of the FY19 seasonal peak, which will provide up to four times the current capacity.

Systems 
Our bespoke and proprietary e-commerce platform is an end-to-end solution covering all aspects of retail operations, including website content, inventory management, multi-currency pricing, logistics and dispatch, CRM, automated marketing, purchasing, customer receipts and management reporting (see page 21).

We believe this platform is a cornerstone of our business and source of competitive advantage, delivering reliability, scalability and unique functionality, and we have an in-house team of dedicated programmers constantly improving our systems with new features and functionality.

Delivery 
Reliable delivery with competitive pricing is fundamental to our proposition and success. Our e-commerce platform is configured to select the most cost-effective delivery options from 13 different delivery service providers, to provide our customers with a class-leading range of delivery options.