CEA Predicts Hot Sales for the Holidays14 Oct, 2002 By: Hive News
More than three-quarters (78 percent) of all U.S. households are likely to purchase at least one consumer electronics product as a gift during the upcoming holiday shopping season, according to the results of the Ninth Annual Holiday Purchase Patterns survey released today by the Consumer Electronics Association (CEA).
Retailers should expect booming sales of DVD players and digital cameras, as well as significantly increased levels of gift-giving interest in home theater and home stereo, big screen TVs, and camcorders, the report projects.
On an unaided basis, U.S. adult consumers named 13 consumer electronics products among the 30 top items they would like to receive as gifts this year.
"The incredible variety of new consumer electronics product offerings in recent years has given shoppers more gift choices than ever," said Gary Shapiro, president and CEO of CEA. "Much of that growth has been fueled by the digital revolution, and it is apparent that consumers recognize the benefits of digital products. The added convenience, speed, portability and cost-efficiency of digital products has led to positions of priority on holiday shopping lists this season."
DVD players topped the list of electronic gift items for the second consecutive year, with overall interest in purchasing DVD players up 19 percent from last year.
Following the boom in video game system sales from last year's holiday season, video game peripherals top the computer wish list in 2002, as well as taking top ranking among items consumers plan to purchase for children.
Despite a number of uncertainties facing the U.S. economy, a growing number of consumers told CEA that economic conditions are the same or better than those they faced last year. Among respondents, 68 percent said they will likely spend the same amount or more this year, down slightly from 74 percent in 2001 and 71 percent in 2000.
"In line with consumers' plans to spend less this holiday shopping season, falling prices are allowing buyers to stretch their funds," said Sean Wargo, director of industry analysis for CEA.
Good news, considering most consumers have plenty of gifts to buy. On average, the typical U.S. household buys gifts for as many as 14 other friends/co-workers/relatives.
While DVD players were the king of the holiday hill for the second consecutive year, a number of computer-related categories showed big increases in consumer interest. Sales of desktop computers, in particular, should get a holiday boost. Consumer interest in purchasing a PC as a holiday gift rose 27 percent over last year and the computer ranked as the number two item for those likely to make an online purchase.