CEA 2010 Holiday Forecast Finds Most Adults Plan to Buy Consumer Electronics Gifts
Consumers plan to spend more on consumer electronics this holiday season, as technology garners a larger share of holiday gift budgets, according to new research released today by the Consumer Electronics Association (CEA) . The 16th Annual CE Holiday Purchase Patterns Study was unveiled today at CEA’s Industry Forum in Phoenix, a four-day conference designed to inform and connect leaders in the consumer electronics (CE) industry.
Underscoring consumers’ love of technology, four out of five adults (80 percent) plan on buying CE products this holiday, the highest results in the 16 years of the survey. Overall gift spending this holiday will increase four percent over last year despite a drop in overall holiday spending. Spending on CE will also increase over last year. Consumers plan to spend an average of $222 on consumer electronics this holiday, a gain of eight percent over last year. Half of consumers (48 percent) also plan to buy a CE product for themselves this holiday.
“Pent up demand for technology products is evident in consumers’ gift wish lists and holiday CE purchase plans,” said Steve Koenig, CEA’s director of industry analysis. “Some twenty percent of consumers say they plan to spend more on gifts compared to last year, with electronics leading the way.”
“Consumers remain wary but there are signs of optimism in our holiday forecast,” said Shawn DuBravac, CEA’s chief economist and director of research. “As the holiday approaches, consumer appetite for technology highlights the resiliency of the tech sector.”
Consumer electronics comprise four of the top 10 items on adults’ holiday gift wish list, with computers and video games ranking two and three respectively behind clothes. Televisions and digital cameras also made the list. Several emerging technologies, such as Blu-ray players, eReaders and netbooks, are among the most wanted and hottest gifts this season. These products are in adults’ top ten CE wish list for the first time, joining mainstays such as notebooks, portable MP3 players and flat-panel TVs. Netbooks are another hot category, especially among teens, ranking in the top ten CE gift wish list of that age group for the first time. Portable MP3 players, video game consoles, and digital cameras are among the most popular gifts consumers are planning on giving their friends and family this year.
“Some of the hottest gifts this holiday will be CE products new to the market,” said Koenig. “Retailers who dedicate shelf space to new technologies, like eReaders, will likely be rewarded with stronger foot traffic.”
Retail stores will play a leading role in holiday CE shopping this year, with 66 percent of consumers likely or very likely to look at electronics in a store, even if they don’t plan to buy. Two-thirds (67 percent) plan to purchase their CE gifts at a mass merchant while 60 percent plan on going to an electronics store.
The 16th Annual CE Holiday Purchase Pattern Study (October 2009) was conducted in September 2009. It was designed and formulated by CEA Market Research, the most comprehensive source of sales data, forecasts, consumer research and historical trends for the consumer electronics industry. Please cite any information to the Consumer Electronics Association (CEA) . The complete study is available free to CEA members or $199 to non-members.
The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the $172 billion U.S. consumer electronics industry. More than 2,000 companies enjoy the benefits of CEA membership, including legislative advocacy, market research, technical training and education, industry promotion and the fostering of business and strategic relationships. CEA also sponsors and manages the International CES — Where Entertainment, Technology and Business Converge. All profits from CES are reinvested into CEA’s industry services.