According to the Consumer Electronics Association, nearly three-quarters of consumers (74%) are planning to purchase an electronic device as a gift this year, allocating about 33% of their holiday budgets to the category. The number has steadily grown since 2005 when only about half of consumers said they intended to give electronics as gifts, says Steve Koenig, director of industry analysis for the CEA.
“We see an increasing propensity for holiday consumers to give technology as gifts,” Koenig tells Marketing Daily. “The propensity to buy technology as a gift has grown significantly.”
Despite the increases, consumer spending on electronics will only rise 2.6% this holiday season, down from the 4% growth the sector experienced last year. Overall, the CEA’s study found consumers will spend an average of $1,431 this holiday season, a 12% decrease from last year (this despite the fact that 68% of consumers said they plan to increase or spend the same as last year). Among the concerns cited by consumers who planned to reduce holiday spending were: economic concerns, already having what they need or want and not having enough disposable income.
Among consumer electronics categories, tablets, notebook/laptop computers, smartphones and next-generation video game consoles topped the lists for both adults and teens. In addition, consumers indicated they were in the market for accessories such as headphones (cited as an item sought by 40% of consumers, making it the most popular item this season) and electronic device cases.
“We’re seeing a strong propensity for people to attach these accessories to hardware purchases,” Koenig says.
In a growing
category, about a fifth of consumers said they planned to buy an emerging technology device this year such as a fitness watch, wearable fitness body monitor or smart scale.
"Shopping for Electronics" photo from Shutterstock.