Study: 31% of Consumers Plan to Buy Movies, Music This Holiday Season11 Nov, 2011 By: Erik Gruenwedel
Good news for home entertainment studios. Consumers plan to buy packaged-media movies and music in significant numbers this winter holiday season, according to Deloitte’s 26th annual holiday survey.
The consulting firm said that 31% of more than 5,000 respondents in an online survey conducted from Sept. 16 to 26 said they plan to buy DVD/Blu-ray Disc movies and/or music CDs this holiday season. About 20% of respondents plan to purchase video games.
Separately, 27% of respondents said they plan to buy movie and/or music downloads, according to research from Elastic Path Software.
Meanwhile, the ongoing economic situation, higher gas and food prices contributed to respondents saying they would spend about 15% less on gifts this season, or about $395, than they did last year ($466). Specifically, respondents said they would buy less than 15 gifts (14.7) this year compared with nearly 17 gifts in 2010 and 23 gifts in 2007.
Notably, gift cards, which still represent 45% of respondents’ winter holiday gift purchases (trailing only clothing at 48%) are down 11% from last year.
Almost half of consumers surveyed (48%) say they most likely will shop for gifts online this holiday season — a 13% increase from last year. This makes the Internet the No. 1 shopping destination, now tied with discount stores, for the first time since adding the channel to Deloitte’s annual study.
“Online channels will be the bright spot for retailers this year,” said Alison Paul, vice chairman and U.S. retail & distribution leader, Deloitte. “One of the effects of a stagnant economy and persistent inflation on consumers’ psyche is a laser focus on price, now the common denominator.”
Paul said retailers need to capture consumers’ attention with convenience, wide merchandise selection and in-store and online product availability. The survey also indicates that digital shopping transcends all age groups, so retailers must ensure they have a targeted online strategy that is consistent with the in-store experience, regardless of the demographic they serve.
About 39% of respondents said they plan to do their holiday shopping in December compared to 34% in late November.