Thomann continues to grow: 65% international revenue
Thomann from Germany has become Europe’s largest online seller of musical instruments. Last year, the revenue reached approximately 1.4 billion euros, with almost two-thirds of it coming from outside the domestic market.
This was stated by managing director Hans Thomann junior in an extensive interview with Handelsblatt. Thomann is an exponent in the field of cross-border ecommerce on our continent. The music store, which started online sales as early as 1996, gained the trust of consumers both domestically and internationally to purchase musical instruments online.
Thomann still has one large physical location, at the headquarters in Treppendorf in the German state of Bavaria. However, most revenue is generated online, in Germany, in other European countries, and in the United States. Even after the coronavirus pandemic, during which many people embarked on renewed journeys with playing a musical instrument, sales have continued to increase, as the figures show.
Revenue continues to rise after Covid-19
Most Thomann employees are musicians themselves, something Hans Thomann junior highlights as a success factor: “What we have created here is the result of passion and hard work.” The company does little to no outsourcing: “We want to do as much of the value chain ourselves as possible so that we have quality under control.”
The family prefers to maintain control, according to the current director, who names his nephew Markus as the intended successor. “I could have sold the company for a lot of money to investors, but we remain a family business.”
Amazon at a distance
Thomann has succeeded in keeping Amazon, which dominates ecommerce in Germany and significantly influences offline retail in the country, at a distance. A feat according to Alex Graf, the director of ecommerce software provider Spryker. This can only be achieved in three ways, says the expert in Handelsblatt: by selling products that are not available on Amazon, by having more knowledge about the products that are, and by offering services that Amazon cannot provide. “Thomann has managed to implement all three strategies in its niche.”
‘Thomann is untouchable for Amazon’
Graf concludes: “The company deserves the utmost respect for this.”