Consumer Electronics Products Top Most Holiday Wish Lists

Digital Products In High Demand, Consumers Anticipate Turning Online To Facilitate Purchases

27-Oct-00

Nearly seven in ten adults, or approximately 69 million U.S. households, plan to visit an electronics retailer when shopping for gifts this holiday season. Digital electronics products, such as DVD-Video players, digital cameras, CD recorders, wireless phones and mass storage devices are at the top of many wish lists this year, according to the results of the ""7th Annual Holiday Purchase Patterns"" survey, released by the Consumer Electronics Association (CEA).CE And The Overall Holiday Shopping MarketWhile clothes, jewelry and cash still remain the most popular and desired gifts, many consumers recognize the value that electronics products can add to their daily lives. From entertainment to communications and safety to productivity, consumers rely on electronics to enhance their ""workstyles"" and lifestyles. It follows that a large number of consumers turn to electronics when faced with a gift-giving occasion. During the holiday shopping season this year (October to December), nearly seven in ten adults are at least somewhat likely to visit an electronics retailer. Furthermore, males expect to visit electronics retailers at slightly higher rates than females (74 percent as compared to 62 percent), while younger age segments are also more likely to visit electronics retailers than older age segments.Digital Products Place High On Holiday Wish Lists""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.""In the video arena, the DVD-Video player reigns supreme, claiming the number one spot on both the video and overall consumer electronics product wish lists. CEA has forecast that 6.6 million DVD players will be sold during the year 2000. However, if consumer buying expectations for this holiday season hold true, retailers and manufacturers may see actual sales greatly exceed that 6.6 million unit projection.Also moving up the list for 2000 is the digital camera. Digital cameras placed second on the video wish list, up from number five in 1999. Offering the convenience of quickly and efficiently capturing and sharing experiences, digital cameras have garnered a great deal of attention from consumers. Recent developments such as improved resolution and ease of posting images to Web sites have drawn even more consumers to the product.On the audio front, CD recorders top the shopping list. Up from the third spot in 1999, CD recorders have quickly become a ""must have"" item. Whether as an audio component or PC peripheral, consumers clearly recognize the value in being able to ""burn"" customized content onto CDs. Even more impressive is the massive attention gained by portable MP3 players in 2000. Portable MP3 players placed third overall on audio wish lists, after not even cracking the top five in 1999.Finally, in communications products, wireless phones continue their domination. For the third year in a row, wireless phones topped consumers' wish lists. Many households hope to add an additional wireless phone for a spouse or child, while others seek replacements for existing equipment, to add new features such as Internet access or a more stylish look and feel.Online Purchases Will Continue To Facilitate ShoppingMuch publicity has been given to consumers' fears and the potential risks of buying online. However, it does not appear this publicity has had a negative effect on the number of people who will turn to the Internet for assistance in purchasing holiday gifts. Approximately one-third of all adult consumers expect to purchase a gift over the Internet during this holiday season. In fact, the number of online gift buyers will increase by roughly 55 percent over the 1999 holiday season. Online buyers are almost equally represented by gender and age, increasingly becoming a typical cross-section of America. DVD players, video game systems and digital cameras top online gift lists.Among those shopping online, most expect to shop at larger, established e-tailers such as Amazon.com, eBay and Yahoo. However, while some consumers have an idea of where they'll do their online shopping, many buyers will opt for a broad search strategy utilizing index sites that link to a variety of e-tailers.The ""7th Annual Holiday Purchase Patterns"" survey was designed and formulated by the CEA Market Research Department and fielded during the week of September 25 to a representative sample of 1,000 random national households. The complete study is available free to CEA member companies. Non-members may purchase the study for $495 through the CEA Market Research Web site at www.eBrain.org.Source: CEA

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