Casio‘s musical instrument division — comprising its miniature and full-size keyboards and digital pianos — is losing significant money. According to its latest year-end figures, its sound (electronic musical instrument) division had a negative profit to the tune of -3.4bn yen.
Clearly the company is well aware of the apparent free fall of this division. It’s probably fair to say that if Casio only made musical instruments — without the financial backup of its more profitable watch and calculator portfolio — it could well be insolvent by now.
By contrast, Yamaha reports strong growth in its digital piano and keyboard instrument sales, despite an understandable drop off in acoustic pianos (which Casio does not manufacture).
Thankfully for those who appreciate Casio’s significance in both the history of keyboard instruments, and its current offerings, the company has not given up on the division.
That said, the sound division is firmly entrenched in the “low market growth potential” and “low profitability” corner of its overall business. Casio’s pressing approach is to move the business to higher profitability by (among other things) “expanding business in sound creation domain”.
While it’s not immediately clear what this means, Casio’s obvious interest in AI, plus its desire to move into ‘personal wellness’, means we could perhaps see more therapeutic products which integrate music and sound.
That doesn’t necessarily mean a move away from more traditional instruments, though, as Casio has seen a generally positive consumer response to its Privia line of digital pianos — and therefore will also seek to “launch new Privia products featuring design and slim body that have been well-received”.
Other focus, still rather in the corporate and slightly fuzzy stage of ideation, include “creating new experiences with models using new technology” and “expanding new creative and performance experiences by linking an app”.
Perhaps there could be more crossover between divisions. Casio will develop its Moflin AI-based “smart companion” and also wants to “roll out products leveraging technologies such as sound, optics, and printing”.
Does Casio have a perception problem? Does it know where it sits in the market?
When consumers look to buy a keyboard or digital piano, do they immediately think of Casio? Or do they aim either higher (Yamaha, Kawai, Roland, Nord) or lower (Donner, cheap relatively unknown brands)?
Casio’s Privia digital pianos in particular have received praise, but are they as visible to the everyday musician as other brands?
I personally think it would be a huge loss if Casio’s instrument division disappeared — but then we’ve seen other brands come and go over the years, and today’s global marketplace is arguably the toughest for trading as it’s ever been, even for apparent giants such as Casio.
If their music division continues to lose money, how long before directors and shareholders demand they cut it loose and focus their attention elsewhere?
