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Steinway is the legendary producer of the world's best pianos and is scheduled to IPO this summer at an estimated valuation of $1 to $1.5 Billion.
Steinway was established in 1853 in Manhattan by Heinrich Engelhard Steinweg (later known as Henry E. Steinway). When we talk about brand recognition, it would be difficult to get better than Steinway. It is in a world of its own, and you would hope so with its name-brand pianos costing between $60,000 and $340,000. But this price tag is supposedly justified by its superior craftsmanship, high-quality materials, and centuries of fine-tuning.
Today, 97% of concert pianists use Steinways, including big names we all know and love like Billy Joel, Elton John, Taylor Swift, and Cole Porter.
That being said, the company only produces about 3,500 Steinway pianos a year, with the rest of its sales being generated by its subsidiary brands. For pianos, this includes the Boston and Essex brands which are built in Asia to reduce costs, and are targeted at the upper-middle and middle market segment. These brands represent about 31% of Steinway's piano sales.
Beyond pianos, Steinway also controls the Conn-Selmer family of brands, a producer of band instruments.
However, I don't want you to think that Steinway is all about economical options. One of the most recent innovations that have helped it grow revenue and bolster margins is the Spirio piano. It solves the age-old question: "How do you sell a piano to someone who can't play the piano?"
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