Sales of electronic products are likely to rise up in Q4 2008 in view of the fact that consumer electronic items are topping the gift wish list this holiday season.
According to the Consumer Electronics Association (CEA), consumer electronic products have managed to top the holiday gift wish lists of both teens and adults. This is likely to result into an estimated growth of 3.5% in the total number of industry shipments in Q4 2008 over the same period in 2007, as per the news published by marketwatch.
Four out of the top ten items on the holiday gift wish list of adults comprise of consumer electronics (CE). Adults have placed computers at the second spot, after peace and happiness. Teenagers’ gift wish list for this holiday season consists of CE products, such as computers, video games, portable mp3 players and mobile phones.
Moreover, this holiday season, the average spending on gifts and décor is expected to close at $1,437, which is about $200 less from the fourth quarter of 2007 due to increasing cost of living and economic slowdown.
The consumer electronic sales are also rising because consumers are seeking digital and portable devices to take their content while on the move and share across various platforms.
Furthermore, there has been a shift in the outlook of consumers as they now look upon consumer electronic products as a necessity, instead of a luxury. Despite a lower Q4 growth estimated for 2008 on YOY basis, the discretionary expenditure on consumer electronics is at a record height.
Most of the people are planning to purchase consumer electronic items during this holiday season. Thus, the retailers of CE products can expect to witness more consumers this time as compared to previous year. Also, more than half of the consumers are planning to go for online purchase. Consequently, online shipping figure is also likely to soar up.
According to the Research Analyst at RNCOS, “The consumer electronics market is expanding very fast, regardless of the global economic crisis. It is because people are ready to gift these items this holiday season despite the financial crisis. In fact, they are actually ready to shell out more on these products.”
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