Consumerscope : Holiday Season Looks Good for CE Sales
Consumer electronics tops many wish listsDecember 2012 By Chris Ely
As 2012 comes to a close and we start wondering what 2013 will bring, many eyes are on the holiday shopping season and what it might mean for our industry.
Indeed, holiday sales often ‘make or break’ a retailer’s bottom line. We know the upcoming holiday is especially important for the consumer electronics (CE) industry, given the popularity of CE as gifts.
Think of the potential sale volume for a minute: CEA research finds more than four in five (85 percent) U.S. adults plan to purchase gifts during this holiday season.
With a total U.S. adult population of 240 million, some 204 million U.S. adults expect to buy gifts this year.
CE is a popular gift item (for both givers and recipients) for almost every occasion. CEA’s recent 19th Annual CE Holiday Purchase Patterns study finds three in four gift givers intend to buy a CE product this holiday season. The trend has been consistent over the past five years as well. The top recipient for CE gifts will be children, as almost half of U.S adult gift givers (45 percent) plan to give a CE gadget this holiday season. But don’t overlook the fact that many shoppers who enter stores are shopping for themselves. CEA’s research finds one in three consumers plan to purchase CE for themselves or their spouse or significant other.
We know CE is popular for holiday gifts, but perhaps the bigger question is how CE gifts will translate to revenue for the industry. Considering the importance of the holiday season for the industry, it should be no surprise consumer purchase intent and sentiment about the overall economy is closely watched as an indicator of how sales will impact the industry.
CEA finds consumers are a bit more optimistic this holiday season compared to last year in terms of their spending sentiment. This year, in fact, two in three consumers say they plan to spend the same (47 percent) or more (19 percent) compared to last year. As a result, CEA finds overall holiday spending is expected to be up 11 percent from 2011 with the average consumer spending $1,634. On average, half of the holiday budget (approximately $842) will be devoted to gifts and 30 percent of the expected gift giving budget—approximately $252—is earmarked for CE gifts.
With so many CE products to choose from (and at a host of price points), what CE gifts do consumers want most this holiday season? Put another way, what product categories will see strong sales? CEA’s holiday research finds the top CE products most frequently requested by adults include tablets, televisions, smartphones, notebook computers, game consoles, e-readers and MP3 players. Look for these product categories to move quickly off the shelves, but don’t forget the corresponding accessories that go with these products, as they will likely enjoy strong sales as well.