Spreading the CE Good Cheer
Have you bought into the buzz yet? Representatives from the Consumer Electronics Association, including myself, have been touring the country singing a song of great cheer about what looks to be a blockbuster holiday season for the electronics market. Just in case it hasn’t yet reached you, or you haven’t already begun to live the proof, we submit to you the final chorus in an already uplifting carol. The lyrics are taken right from the pages of CEA’s own market research—namely, an analysis of the overall economic climate and the results of CEA’s 13th Annual Holiday CE Purchase Patterns Survey. Both suggest a phenomenal close to what has already been a breakaway year in the continued saga of the digital upgrade cycle. Here are the facts:
Despite low sentiment, consumers are financially healthy
The media is filled with questions and concerns about potential drags on consumer spending, including gas prices, diminishing equity, wage declines, and burgeoning debt levels. CEA research also shows that the largest percentage of consumers (35 percent) still feel the economy is worse off than last year, though this is much improved over last year’s result (61percent). But looking at the actual economic data shows consumers still spending only around 4 percent of their budgets on gas, still holding about 54 percent of their home’s value on average, still maintaining low debt levels, and still growing their disposable income at a rate faster than inflation. The bottom line is that they have the financial means and are prepared to spend.