CIT's Woes Could Complicate Holiday Buying Season
The impact will be less for businesses, such as Sony and Panasonic, that have more direct control over their manufacturing and sales channels. There is also considerable speculation that a lending crisis like this ultimately benefits top-tier suppliers and retailers. That's because a higher percentage of loans are denied to companies that make and sell lower-priced products. Brands with higher pricing structures ultimately will win the day.
Although the CIT crisis has far reaching consequences, the CE industry has proven its adaptability and resilience. It still remains to be seen how CIT's problems will impact the holiday buying season. Consumer concerns such as expendable income and price will be dominant factors. And that, much like the recent back-to-school results, indicates that the overall state of the economy overshadows most other issues.