Dealer Data: Bullish Numbers from CEA
Holiday revenues for consumer electronics (CE) will be up 15 percent or more this year, according to the Consumer Electronics Association’s (CEA) recent holiday forecast, presented at the CEA Industry Forum in San Francisco. Not everyone was convinced. Even after a presentation that involved a series of instantaneous recurring polls, a crowd of around 140 CE executives and insiders stuck with the opinion that sales would be up 5 to 10 percent, instead (although still a bullish perspective).
Though certain factors might make one assume consumer trepidation, CEA analysts say they shouldn’t affect consumer holiday spending. While 35 percent of those who answered CEA’s survey say they think the economy is worse this year, that number is down from last year, and while they say they will spend less this year than last, the average dollar amount they plan to spend on CE is up. “Holiday spending amounts are up 14 percent,” says Sean Wargo, director of industry analysis for CEA.
Other factors, such as high gas prices and falling real estate, may not factor into the holiday season, either. While the the housing contribution to the GDP is contributing negatively at -.07 percent currently, according to the U.S. Department of Commerce, Shawn DuBravac, lead economist, CEA, says appreciation values are stable. “The real estate market is slowing,” he says. “But it’s not going to hurt the shopper.” Gas demand has fallen, he added, and prices are down around 25 percent.