Electronic industry is expected to fly high in the approaching holiday season, as the majority of the consumers are considering to gift electronic items.
According to the 15th Annual CE Holiday Purchase Patterns Study of Consumer Electronics Association, tight economic conditions worldwide are not going to restrict the consumers from spending on the latest electronic items to present them as gifts this holiday season, as per the news published by bizjournals. The top ten most popular electronic products include computers, cell phones, televisions and video game systems.
Consumers are planning to spend $1,437 this holiday season on the shopping of gifts, food and decorations, a decline of nearly $200 over 2007. This decline corresponds to the rise in the cost-of-living and other economic reasons. On the other hand, as the electronic items are high in the holiday wish list of teens and adults, their fourth quarter industry shipments for 2008 are expected to register a 3.5% growth over the previous year.
The consumers are shifting to electronics products because of several reasons, such as entertainment, telecommunication and to cut down the gas bills. Digital displays are the key players as their shipments are leading the digital market. Thus, the consumer electronics market continues to experience strong growth and record productivity throughout the season.
Moreover, the well-off middle class population in the emerging markets such as China, India and Brazil is expanding on account of fast economic growth. Consequently, the consumer electronics market in these countries has become very dynamic.
In addition, several factors like booming retail sector, easy financial schemes and rising consumer expenditure have also led the market to witness remarkable development in the recent years.
However, the penetration of the consumer electronic products such as microwaves, refrigerators and washing machines is low in these markets. It indicates immense prospects for the future growth and consequently, several international players are turning towards these emerging markets.
According to a Research Analyst at RNCOS, “The coming holiday season and the trend of gifting electronic items will support the growth of the consumer electronics market in near future. Despite the worldwide industries being struck by the present financial crunch, the latest advanced phones, netbooks, television, etc. would make the electronic sector to grow.”
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