Consumer Electronics Holiday Shopping - US

Published by: Mintel International Group Ltd.

Published: Sep. 1, 2009 - 109 Pages

Table of Contents

SCOPE AND THEMES

What you need to know

Hardware

Entertainment software

Communications

Definition

Data sources

Consumer survey data

Advertising clips

Abbreviations and terms

Abbreviations

Terms

EXECUTIVE SUMMARY

DVDs, cash, and gift cards ranked highest for gifts

Budgeting for the holidays

Blacks to spend the most on gifts for kids and teens

Consideration for purchase

Top CE gifts: Digital photo display, gaming consoles

Top products for non-gift purchase: Flat-panel TVs, laptops

Products with lowest awareness: Media servers, set-top boxes

18-34s lead in purchase consideration

Income a driver for some products, irrelevant to others

Moms and dads interested in a wide array of CE products

Product trends

MP3 docks available as inexpensive gifts

Surround sound audio for home theaters making slow gains

Digital photo displays offering step-up features

Video Playback

Gaming Hardware

PCs and PC peripherals driven by netbook category

Apple and BlackBerry lead consideration for smartphone purchases

e-readers and GPS deliver larger screens for dedicated use

Flash now a viable back-up medium

Camcorder penetration stuck

Communication services under-utilized as potential gifts

VoIP on the rise

COMPETITIVE CONTEXT

Gift cards and cash more popular than gifts

Youth suffer from lack of imagination

Figure 1: Intent to give cash or gift cards as holiday presents, by age, June 2009

Likelihood of giving cash and gift cards rises with income

Figure 2: Intent to give cash or gift cards as holiday presents, by household income, June 2009

Parents more likely to be gifting cash or a gift card

Figure 3: Plans to give gift cards or cash as holiday gifts, by gender and presence of children, June 2009

Asians, Hispanics look to online retailer gift cards

Figure 4: Plans to give gift cards or cash as holiday gifts, by race/Hispanic origin, June 2009

MARKET DRIVERS

Budgets for gift giving

Figure 5: Budget for holiday gift spending on age groups, by household income, June 2009

Figure 6: Budget for electronic holiday gifts for each age group, by household income, June 2009

Online English-language Hispanics and blacks plan to spend the most on CE gifts

Figure 7: Budget for holiday gifts for each age group, by race/Hispanic origin, June 2009

Figure 8: Budget for electronic holiday gifts for each age group, by race/Hispanic origin, June 2009

Households with children: Younger adults + higher incomes = more CE gifts

Figure 9: Budget for holiday gifts for each age group, by gender and presence of children, June 2009

Figure 10: Budget for electronic holiday gifts, by gender and presence of children, June 2009

Age and CE purchasing

The role of age in gift giving

The role of age in CE purchasing in general

Figure 11: Population aged 18 or older, by age, 2009

The role of children as gift recipients

Figure 12: Population, by age, children vs. adults, 2009

MUSIC, VIDEO, AND GAMES

Interest in purchasing DVDs highest

Under-25s most keen on discs as holiday gifts for others

Figure 13: Plans to purchase music, videos, and games as gifts for holiday season, by age, June 2009

Content for kids

Figure 14: Plans to purchase music, video, and games as holiday gifts, by gender and presence of children, June 2009

Asians least interested in gifting shiny content

Figure 15: Plans to purchase music, videos, and games as gifts for holiday season, by race/Hispanic origin, June 2009

Advertising: Netflix and TiVo compete with content sales

INTEREST IN PURCHASING HARDWARE: SNAPSHOT

Hardware with the wind at its back

Figure 16: Ownership of select consumer electronics, 2002-09

Rapid uptake for flat-panel TV, DVR, speaker docks and smartphones

Figure 17: U.S. household penetration of select consumer electronics, 2006 and 2009

Top gifts in consideration: Digital photo displays

Tops in consideration for purchases for self: Flat-panel TVs, laptops

Figure 18: Interest in purchasing entertainment products before January 2010, June 2009

Consumers unfamiliar with media servers, internet set-tops, and e-readers

Figure 19: Confusion regarding CE products, June 2009

DIGITAL PHOTO DISPLAYS

A notable holiday market

Figure 20: Interest in purchasing digital photo display before January 2010, June 2009

Displaying the grandkids

Figure 21: Interest in purchasing digital photo display before January 2010, by age, June 2009

Digital Photo Displays: Advertising and Promotion

TELEVISIONS

Interest in purchasing

Flat-panel TVs on the mind for gifts and household

Figure 22: Interest in purchasing televisions before January 2010, June 2009

Combos for students and grads

Figure 23: Interest in purchasing televisions before January 2010, by age, June 2009

Advertising for televisions

Print ads

Figure 24: Pioneer print ad

Figure 25: LG print ads

Figure 26: Samsung print ad

Figure 27: Sony print ad

Television ads

Figure 28: Vizio HDTV television ad, 2008

Televisions nearing the gift price range

For more information…

VIDEO PLAYBACK

Interest in purchasing

Low awareness of media servers hampering sales

Promoting gift pricing at $99.99 to encourage interest

Roku hitting the $100 mark; competitors substantially more expensive

Figure 29: Interest in purchasing video playback hardware before January 2010, June 2009

Blu-ray a potential way to save relative to attending theater

Under-35s want to see the most recent flicks at home

Convergence products offer more choices in one box

Figure 30: Interest in purchasing video playback hardware before January 2010, by age, June 2009

For more information…

AUDIO

Interest in purchasing

Video drives audio

MP3 players drive docks

Talking romance

Home surround sound pricey for gifts

Speakers and docks available at kids’ gift prices

Figure 31: Interest in purchasing audio hardware before January 2010, June 2009

Docks and PC speakers still to see substantial growth among under-35s

PC speakers for videoconferencing with grandchildren

Figure 32: Interest in purchasing audio hardware before January 2010, by age, June 2009

Audio advertising

Figure 33: Bose Computer Music Monitor print ad

Source: Bose

GAMING HARDWARE

A slow climb to higher penetration

Consoles and portables among most considered gifts

Figure 34: Interest in purchasing gaming hardware before January 2010, June 2009

An opportunity in gifting consoles and handhelds to Boomers

Figure 35: Interest in purchasing gaming hardware before January 2010, by age, June 2009

For more information…

PCS

All gains in PC penetration derive from increasing laptop ownership

Netbooks capitalize on interest in laptops

Portable computers still have room to grow

Figure 36: Interest in purchasing PCs before January 2010, June 2009

Interest highest among under-35s

Figure 37: Interest in purchasing PCs before January 2010, by age, June 2009

For more information…

PC PERIPHERALS

Penetration for peripherals mostly stalled

Matching peripherals with sexier tech gifts

Figure 38: Interest in purchasing PC peripherals before January 2010, June 2009

Dedicated peripherals could make inroads

Figure 39: Interest in purchasing PC peripherals before January 2010, by age, June 2009

PC Peripherals: Advertising

Figure 40: Kodak printer Jennifer Peck television ad, 2009

Figure 41: Hewlett-Packard multi-products television ad, 2009

Figure 42: Samsung Multi-Products television ad, 2009

SMARTPHONES AND PMDS

Introduction

Turning interest in purchasing for self into add-on gift purchases

Figure 43: Interest in purchasing smartphones and PMDs before January 2010, June 2009

Under-35s want portable technology

Figure 44: Interest in purchasing smartphones and PMDs before January 2010, by age, June 2009

iPhones and BlackBerry phones top list for those seeking a smartphone

Figure 45: Brand of smartphone planning to purchase, by household income, June 2009

For more info…

E-READERS AND GPS

Device penetration

Figure 46: Ownership of navigation devices and electronic readers, by age, March 2009

ABCs of e-readers: Sony vs. Amazon Kindle

e-readers advertising

GPS and e-readers as holiday gifts

Figure 47: Interest in purchasing navigation devices and electronic readers before January 2010, June 2009

Under-35s most interested in GPS, e-readers

Figure 48: Interest in purchasing navigation devices and electronic readers before January 2010, by age, June 2009

Competition from cell phones

Figure 49: Plans to sign up or change GPS carriers on cell phone before January 2010, June 2009

GPS on cell has large future

Figure 50: Plans to sign up or change carriers for cellular GPS before January 2010, by age, June 2009

GPS advertising

Figure 51: TomTom television ad, 2008

PORTABLE MEMORY AND BACKING UP

Providing memory with step-up features or entertainment content

Figure 52: Interest in purchasing portable memory products before January 2010, June 2009

Novelty drives

Figure 53: Interest in purchasing portable memory products before January 2010, by age, June 2009

Portable Memory and Backing Up: Innovation and Innovators

CAMERAS AND CAMCORDERS

Let consumers play with camcorders

Figure 54: Interest in purchasing camera or camcorder before January 2010, June 2009

The Apple camcorder

Figure 55: Interest in purchasing camera or camcorder before January 2010, by age, June 2009

A new camera for Dad

Figure 56: Interest in purchasing camera or camcorder before January 2010, by gender and presence of children, June 2009

MOBILE COMMUNICATION SERVICES

Communication services as gifts

One in 11 planning to subscribe to wireless broadband for the first time

Figure 57: Plans to sign up for or change carriers for cellular service before January 2010, June 2009

18-34 year olds the group to reach

Figure 58: Plans to sign up for or change carriers for cellular services before January 2010, by age, June 2009

Income a driver for subscriptions…to a point

Figure 59: Plans to sign up for or change carriers for cellular services before January 2010, by household income, June 2009

Dads most likely to be changing carriers or planning a new service

Figure 60: Plans to sign up for service or change carriers for cellular services before January 2010, by gender and presence of children, June 2009

Hispanics most intent on acquiring new services or changing carriers

Figure 61: Plans to sign up for or change carriers for cellular services before January 2010, by race/Hispanic origin, June 2009

For more information…

HOME INTERNET

High-speed internet in two thirds of homes

Figure 62: Home broadband household penetration, 2006 and 2009

Nearly one in 10 plan to change broadband providers

Figure 63: Plans to sign up or change carriers of home communication service before January 2010, June 2009

Under-35s the group to appeal to for cannibalistic subscriptions

Figure 64: Plans to sign up for or change carriers of home communication service before January 2010, by age, June 2009

Asians, Hispanics restless broadband consumers

Figure 65: Plans to sign up for or change carriers of home communication service before January 2010, by race/Hispanic origin, June 2009

TELEVISION SERVICE

Pay-television nearly ubiquitous

Figure 66: Plans to sign up for or change carriers for pay-TV service before January 2010, June 2009

Those aged 18-34 most open to new DVR options

Figure 67: Plans to sign up for or change carriers for pay-TV service before January 2010, by age, June 2009

Middle-high incomes more in the market for new pay-TV provider

Figure 68: Plans to sign up for or change carriers for pay-TV before January 2010, by household income, June

2009

HOME PHONE SERVICE

Changing copper for VoIP

Figure 69: Plans to sign up or change carriers for home phone service, June 2009

Early adopters interested in landlines

Figure 70: Plans to sign up or change carriers for home phone service, by age, June 2009

Figure 71: Plans to sign up or change carriers for home phone service, by race/Hispanic origin, June 2009

Home phone advertising

Figure 72: Vonage Broadband Phone Service Adding Machine television ad, 2008

THE ROLE OF INCOME ON HARDWARE PURCHASE INTENT

Overview

Figure 73: Household income distribution, 2007

High-end televisions for the affluent

Figure 74: Interest in purchasing televisions before January 2010, by household income, June 2009

More than $75K key to new video playback

Figure 75: Interest in purchasing video playback hardware before January 2010, by household income, June 2009

Selling high-income respondents on multiple PCs

Figure 76: Interest in purchasing PCs before January 2010, by household income, June 2009

Income correlates with need for smartphones

Figure 77: Interest in purchasing smartphones and PMDs before January 2010, by household income, June 2009

High income correlated with penetration of e-readers and dedicated GPS

Figure 78: Ownership of portable GPS device and e-reader, by household income, March 2009

e-readers appeal to the affluent

Figure 79: Interest in purchasing navigation devices and e-readers before January 2010, by household income, June 2009

Wealthy respondents want digital cameras

Figure 80: Interest in purchasing camera or camcorder before January 2010, by household income, June 2009

RACE AND HISPANIC ORIGIN

Introduction

Overview

Figure 81: Household income distribution, by race and Hispanic origin of householder, 2007

Key differences between racial and ethnic groups

Interest in purchasing tech hardware: data

Interest in purchasing televisions

Figure 82: Interest in purchasing televisions before January 2010, by race/Hispanic origin, June 2009

Interest in purchasing digital photo displays

Figure 83: Interest in purchasing digital photo display before January 2010, by race/Hispanic origin, June 2009

Interest in purchasing video playback hardware

Figure 84: Interest in purchasing video playback hardware before January 2010, by race/Hispanic origin, June 2009

Interest in purchasing PCs

Figure 85: Interest in purchasing PCs before January 2010, by race/Hispanic origin, June 2009

Interest in purchasing portable memory

Figure 86: Interest in purchasing portable memory before January 2010, by race/Hispanic origin, June 2009

Interest in purchasing PC peripherals

Figure 87: Interest in purchasing PC peripherals before January 2010, by race/Hispanic origin, June 2009

Interest in purchasing smartphones and PMDs

Figure 88: Interest in purchasing smartphones and PMDs before January 2010, by race/Hispanic origin, June 2009

Interest in purchasing GPS and e-readers

Figure 89: Interest in purchasing GPS and e-readers before January 2010, by race/Hispanic origin, June 2009

Interest in purchasing audio hardware

Figure 90: Interest in purchasing audio hardware before January 2010, by race/Hispanic origin, June 2009

Interest in purchasing gaming hardware

Figure 91: Interest in purchasing gaming hardware before January 2010, by race/Hispanic origin, June 2009

Interest in purchasing cameras and camcorders

Figure 92: Interest in purchasing cameras and camcorders before January 2010, by race/Hispanic origin, June 2009

APPENDIX: ADDITIONAL TABLES BY HOUSEHOLD INCOME

Limited differences seen in interest in purchasing audio

Figure 93: Interest in purchasing audio hardware before January 2010, by household income, June 2009

Income not a factor in gaming hardware interest in purchasing

Figure 94: Interest in purchasing PCs before January 2010, by household income, June 2009

Income does not affect interest in PC peripherals

Figure 95: Interest in purchasing PC peripherals before January 2010, by household income, June 2009

Memory sought equally by all income groups

Figure 96: Interest in purchasing PC products before January 2010, by household income, June 2009

Income not a factor in popularity of digital displays

Figure 97: Interest in purchasing digital photo display before January 2010, by household income, June 2009

Shiny content crosses income lines

Figure 98: Plans to purchase entertainment products for holidays, by household income, June 2009

Income not a factor for change in broadband service

Figure 99: Plans to sign up for or change ISP before January 2010, by household income, June 2009

APPENDIX: HISTORICAL DATA POINTS

Interest in Blu-ray, HDTV, DVR, DVD subscriptions, media centers in 10/08

Figure 100: Adoption of new video technologies, ownership and interest in ownership, October 2008

Historical sales of dedicated GPS

Figure 101: U.S. manufacturer sales and forecast of portable navigation devices, 2004-09

APPENDIX: TRADE ASSOCIATIONS

Abstract

There are an array of products that younger users are more likely to be familiar with, but which should carry clear functional value for their parents and grandparents. Suppliers and retailers should consider promoting these products as holiday gift purchases to teens and young adults (aged 18-34): digital photo frames (which can be given pre-loaded and offer grandparents a chance to have photographs of young children)

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 250,000 market research reports, company profiles and country profiles from over 650 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.