Consumerscope- CE Holiday Outlook
For one, CE products are among the top choices for consumers this year. Desktop computers and laptops were No. 2 on wish lists this year, edged out by clothing and apparel. Digital cameras were listed among the top five items for the first time ever.
Although there appears to be fewer CE gift buyers this year, the existing buyers plan to buy more. This nets out to an overall four percent increase in the amount of CE gift items purchased this year as compared to last season. Several product categories are gaining ground this year. Not surprising, near the top of the gift list are DVD players, as well as digital cameras, notebook PCs, cordless phones, cellular phones, video game consoles, MP3 players, and HDTVs. Each has strong growth forecasted through the end of the year into the next and promises to contribute to overall CE profits.
Of course the holiday is not without its challenges. Deflation is hitting hard at the wholesale level, offsetting profits for manufacturers as a result of heavy competition in many categories. Plus, some analysts are predicting that consumers may retreat slightly from the home-oriented purchase patterns of the past two years, focusing instead on travel and family vacations this season, leaving less on the table for our industry. Fortunately, the trends offset each other since consumers are able to spend less to get more in the current market. The net result is a season in which we sell more products, but revenues may drop slightly, at least for manufacturers.