Piano makers ride musical surge in China

This year is the 10th year Steinway & Sons, one of the world's most famous piano makers, has expanded its business in China.

In October, Steinway & Sons upgraded its Shanghai branch to be the headquarters of the company's Asia-Pacific businesses. A BBC report found that driven by parents buying pianos for their young children, nearly half of the company's sales come from some Asian countries like China. In 2013, Steinway & Sons saw its global piano revenue grow by 3.6 percent year-on-year to $220 million. Its revenue in China reached $15.6 million that year, up 21.3 percent compared with 2012.

Bluthner from Germany, one of top luxury piano makers in the world, entered the Chinese market in 2005 and in May 2006, it opened its first factory in China in Guangzhou. Five year later, the annual output had reached 5,000 units, growing at the speed of 1,000 units a year. But in the last two years, the growth speed of annual output decreased, due to the slowdown of China's economy and the drop in demand.

The output for 2013 was 6,000 units. Eighty percent of the products go to the domestic market. In 2011, Bluthner invested $19 million in another plant in Guangzhou to expand its production capability and upgrade its products. So far, Bluthner has 40 dealers nationwide, up from 28 in 2012.

With an investment of 2.4 billion yuan, Bluthner's new plant in Hengshui, Hebei province is in construction. The new plant, covering an area of 400,000 square meters, will provide timber and parts for the company's production in China.

In October, Bluthner signed an agreement to invest $75 million in Qingdao to build a plant that will be used to produce high-end Irmler pianos.

But Fang Yang, general manager of Bluthner (China) Co Ltd, said the year 2014 is a relatively difficult year due to the slowdown of China's economy.

"However, China, as the world's biggest piano producer and market, has a huge potential for Bluthner," he said.