Playing the violin or the piano belongs to the aspiration of many Chinese kids, or at least their parents. The intended purchase of Steinway by state-owned Poly has high potential, says business analyst Shaun Rein, author of The War for China’s Wallet: Profiting from the New World Order, to Bloomberg.
The state-owned conglomerate is in the early stages of considering an offer for Steinway, it is believed. Other suitors may also emerge for the business.
Steinway should be able to fetch a high valuation given that the company may reach 30 per cent to 40 per cent annual sales growth in China, according to Shaun Rein, founder and managing director of the China Market ResearchGroup. A Chinese company like Poly Group could help improve Steinway’s distribution network in the country, which has been weak so far, he said.
“Steinway has massive potential in China as consumers love the brand,” Rein said. “As Chinese middle-class families get wealthier, they’ll be willing to spend on a luxury piano for their kids as they see music as a key part of their education. And nobody beats Steinway on that.”
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