New Products to Boost Holiday Spending on CE
Seventy-four percent of consumers planning to purchase gifts this holiday season intend to buy CE as gifts, allocating 33% of their overall holiday gift budgets to CE, according to CEA’s “20th Annual CE Holiday Purchase Patterns Study.”
The study found the majority (68%) of consumers indicated they will spend the same or more this holiday season compared with last year. However, the amount consumers reported they actually plan to spend will reach an average of $1,431, a 12% decrease from 2012. Additionally, almost nine in 10 (86%) U.S. adults said they plan to buy gifts this holiday season, with 53% of the overall holiday budget devoted to gifts.
Those consumers who plan to spend less this year most commonly cited concerns about the economy (68%), already having what they need or want (67%), and not having the money to spend on gifts (66%).
“Negative economic sentiment and slipping momentum have consumers cautious about overall spending this holiday, but recent agreements, albeit temporary, should improve consumer confidence toward spending for the duration of the year,” said Shawn DuBravac, CEA’s chief economist and research senior director. “Moreover, holiday tech spending will remain somewhat impervious with recent and forthcoming product announcements to buoy excitement within the tech categories driving growth this holiday season.”
Tablets will top CE gift wish lists this year for adults and video gaming consoles for teens.
While consumers want CE products for themselves, they also plan to give electronics as gifts. Headphones and ear buds (40%) will be the most popular CE device given this holiday season. A case for an electronic device (27%) will also be popular this year, followed by tablets (26%), smartphones (24%) and notebook/laptop computers (23%), CEA said.
Video game consoles rank high on planned purchases this year, largely driven by highly anticipated releases of next-generation gaming consoles. Of the 19% of U.S. adults expected to purchase a video game console, the majority reported planning to buy a next-generation console system (73%) compared with current models already on the market (59%).
Additionally, one in five (19%) consumers plan to purchase what CEA called a “emerging tech device” this year, with fitness watches, wearable body monitors and smart scales topping the list.
“Mobile connected devices are driving overall tech industry growth, and holiday gift sales will be no different,” said DuBravac. “Expect to also see growing awareness of emerging tech categories, including health and fitness technology. These are the products quickly moving into the mainstream in the coming years.”
Consumers are expected to start their holiday shopping later this year, with 57% of consumers planning to begin their shopping after Thanksgiving.
This year, 87% of U.S. adults indicated they were likely to use a mobile device to help them shop for CE this holiday season. The most common mobile shopping activities consumers will engage in is looking up retailer information (66%), comparing prices (62%) and getting information about products before store visits (62%).
“Mobile has become a major stepping stone on the consumer’s path to purchase, and we can expect to see retailers increase app driven promotions this season,” said Steve Koenig, industry analysis director, CEA.[Source: “20th Annual CE Holiday Purchase Patterns Study." Consumer Electronics Association (CEA). 22 Oct. 2013. Web. 24 Oct. 2013.]