Consumerscope : Kids, Netbooks and Interactive TV Make a Good Retail Fit
The right consumer electronics products aimed at the right demographic drive sales
April 8, 2010 By Tara Hutton, Director Of Market Research, Consumer Electronics Association (CEA).
Today's children are exposed to a wide array of technologies that help them learn, communicate and have fun. The trick in retail is to focus on the product categories that will drive the most sales, profits and incremental business. Two of those categories are netbooks and interactive TV.
Netbooks - Kid Sized Computers
According to CEA's "12th Annual CE Ownership and Market Potential" report, 12 percent of U.S. households own at least one netbook. About 42 percent of U.S. households anticipate buying a netbook in the future, with 10 percent planning to buy one this year. CEA expects household penetration to reach 50% by 2013.
Sales will be driven by many factors. One is the product's appeal to youth. According to CEA's "Eye on Emerging Technology: Netbooks Analysis Brief," more than one in three (37 percent) of U.S. adults believe netbooks make a good first computer for kids. There are several reasons to support this. First, netbooks are small and lightweight (generally 2-3 pounds) enabling kids to use them at home or carry in a backpack. Second, they have the basic computing functionality to fulfill the needs of kids. Third, they generally cost less than laptops and desktops, with an average wholesale price of $337 (compared to an AWP of $681 for laptops and $557 for desktops). Netbooks provide parents with an affordable option to help their children build computing skills essential to their success in today's world. Plus, it's not quite as painful if they are lost or damaged. In fact, child-themed versions of netbooks are colorful, rugged and are emerging as alternatives to traditional netbooks.
Looking at future purchase expectations, households with children under the age of 18 will be more likely to adopt netbooks. Forty-nine percent of U.S. households with children expect to own a netbook (and 13 perecent planning a purchase in 2010). This compares to 37 percent of U.S. households without children planning to ever purchase and just 7 percent planning a purchase over the next year.
Interactive TV - Moving Beyond Viewing
Another emerging technology with strong youth appeal is interactive TV. Consumers are using televisions for far more than just watching broadcast programs, as is evidenced in CEA's recent study, "Interactive TV: Engaging Viewers, Enriching Content."
Forty-three percent of TV owners are using their sets to play games, 38 percent to listen to music, 12 percent to view digital photos and 6 percent to access the Internet. And with the proliferation of Internet-connected TVs and set-top boxes, the types of activities consumers will be doing with their sets will become even more diverse. That appeal should increase even more with the adoption of 3D The interactive TV capabilities people desire will be driven to a large extent by the type of content they watch. When it comes to children's programming, more than half (60 percent) of those with kids living in their homes or who watch kids programming feel it should be more engaging.
Netbooks - Kid Sized Computers
According to CEA's "12th Annual CE Ownership and Market Potential" report, 12 percent of U.S. households own at least one netbook. About 42 percent of U.S. households anticipate buying a netbook in the future, with 10 percent planning to buy one this year. CEA expects household penetration to reach 50% by 2013.
Sales will be driven by many factors. One is the product's appeal to youth. According to CEA's "Eye on Emerging Technology: Netbooks Analysis Brief," more than one in three (37 percent) of U.S. adults believe netbooks make a good first computer for kids. There are several reasons to support this. First, netbooks are small and lightweight (generally 2-3 pounds) enabling kids to use them at home or carry in a backpack. Second, they have the basic computing functionality to fulfill the needs of kids. Third, they generally cost less than laptops and desktops, with an average wholesale price of $337 (compared to an AWP of $681 for laptops and $557 for desktops). Netbooks provide parents with an affordable option to help their children build computing skills essential to their success in today's world. Plus, it's not quite as painful if they are lost or damaged. In fact, child-themed versions of netbooks are colorful, rugged and are emerging as alternatives to traditional netbooks.
Looking at future purchase expectations, households with children under the age of 18 will be more likely to adopt netbooks. Forty-nine percent of U.S. households with children expect to own a netbook (and 13 perecent planning a purchase in 2010). This compares to 37 percent of U.S. households without children planning to ever purchase and just 7 percent planning a purchase over the next year.
Interactive TV - Moving Beyond Viewing
Another emerging technology with strong youth appeal is interactive TV. Consumers are using televisions for far more than just watching broadcast programs, as is evidenced in CEA's recent study, "Interactive TV: Engaging Viewers, Enriching Content."
Forty-three percent of TV owners are using their sets to play games, 38 percent to listen to music, 12 percent to view digital photos and 6 percent to access the Internet. And with the proliferation of Internet-connected TVs and set-top boxes, the types of activities consumers will be doing with their sets will become even more diverse. That appeal should increase even more with the adoption of 3D The interactive TV capabilities people desire will be driven to a large extent by the type of content they watch. When it comes to children's programming, more than half (60 percent) of those with kids living in their homes or who watch kids programming feel it should be more engaging.
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