Fender Struggling?

[dannopelli]

http://www.nytimes.com/2012/09/30/business/fender-aims-to-stay-plugged-in-amid-changing-music-trends.html

[markus]

Interesting article... thanks for sharing!
Fender for sure is a shadow of the company it once was. Sad story. Same... well actually worse with Gibson... :(

[dplight]

I wouldn't like to see Fender (or any other company I do biz with) go public. Sometimes it works out, but most times it seems the transition causes the focus of the company to shift from "customer rules" to "shareholder rules".

[Pietro]

I hate to see them not do well, but trends come and go, and too many never understand that. Yes, there will always be people who play guitar, I think, but to think you can grow forever when the market is fracturing so much on the low end (with imports) and the high end (with you-know-who and others...), and when you're most key reseller (GC) is on the verge of annihilation... gimme a break... that IPO was unbelievably stupid to try.

[dannopelli]

I just think the music instrument retail business does not fit well with the public company business model. Or at least not in a down economy. It has little or no shelter from recession. And you just can't expect YOY growth multiples. The product lasts too long.

I'd hate to see Fender or GC go. While I do not care to shop at GC, they serve a purpose.

It is all a shame that this economy has been beaten down so long.

[Briggs]

a couple of not well thought out observations:

Fender specific- I think there are too many models/price points. Just the strat alone you have standard, deluxe, vintage, artist series, highway 1, the list goes on and on. It dilutes the brand IMHO.

I work with the youth band at the church and it seems like less kids are picking up 'real' instruments and more are making digital music. I'm wondering how this will continue to affect the music industry as a whole.

[curtisjames]

Theyre like the American dollar printing machine.....it never stops. Ultimately Waters down their value from over saturation. Not to be too negative but Fender & Gibsons are like thousands of boxes and boxes of toothpicks spread all over the world. They're strangling themselves
Toms Buiseness model of slow, steady, quality control, and high standards, retains the value of his product....and other successful boutique builders. Compare the number of Andersons vs Big Box store guitars on Craigslist, garage sales, recycler. Case in point