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 54,200 products from over 880 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

On-going 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 3,400 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 touch points deliver a market leading experience, and monitor our progress carefully using independent sources such as TrustPilot.

Specialist Staff

In FY20 we employed 466 people (FY19: 431) across three countries, and many have first-hand musical instrument and equipment knowledge, playing in bands and producing their own music. Ongoing product training is routinely undertaken to ensure staff have relevant and up to date knowledge to enable them to advise customers.

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

Gear4music’s customer base is primarily made up of private individuals (over 97%), from beginners and parents buying musical instruments and music equipment for their children, through to professional musicians. The Group supplies schools and other educational establishments and a small number of trade accounts.

On 31 March 2020 we had 0.65 million people registered to receive our email communications, down from 0.89m at 31 March 2019 as a result of GDPR adoption.

Active customers of 807,000 (being customers who have purchased from Gear4music during the previous 12 months), is up 11% on FY19 (727,000).

As the Group continues to increase its European business it acquired a further 704,000 new customers in the period (FY19: 674,000), and 170,000 customers came back to us to place at least one follow-up order (FY19: 155,000).

Average order value in FY20 was £117, in-line with FY19 having been £127 in FY18.

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 17 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 284,000 square feet of operational space - 135,000 square feet in York, 72,000 square feet in Germany, and 77,000 square feet in Sweden.
Our 50,000 square feet freehold Head office provides back-office facilities sufficient to support the business into the long-term.

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.

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 seventeen different delivery service providers, to provide our customers with a class-leading range of delivery options.