CEA Predicts Higher Spending on CE this Holiday

share on:

The Consumer Electronics Association (CEA) announced  that spending on electronics gifts will reach an all-time this high holiday season. In fact, overall spending on gifts will increase this holiday, despite the jittery economy.

CEA Holiday Forecast 2011Consumer electronics will account for one-third of all holiday gift spending, predicts the CEA.

Consumers plan to spend an average $246 on electronics gifts, up 6 percent from last year. This is also the highest level since the CEA began tracking holiday spending.

Overall, for all their gifts, consumers plan to spend an average of $769 this holiday, up 3 percent from last year, according to the CEA’s annual study.

CEA forecasts that total holiday retail sales will climb 2.5 percent this year.

“After months of depressed consumer confidence, individuals are indicating they plan to spend this holiday and are looking for technology, as more adults will buy consumer electronics as a gift this year as compared to last year,” said Shawn DuBravac, CEA chief economist and director of research.

Tablet computers are the second most wanted gift, second only to clothes. Notebook computers are also high on shopping lists, as are TVs, eReaders and video game consoles.

Electronics accessories and gift cards will also be popular gifts this holiday, said the CEA.

Four out of 5 adults plan to give a gift card this year, up 5 percent from last year, many of them for digital content and services.

One in 4 consumers plans to give a gift card that can be used for digital music purchases, 1 in 5 for electronic book purchases and 16 percent for app purchases.

“It is going to be a computing holiday season, with tablets looking to be the run-away success story,” said DuBravac.

Price will be the most important factor as consumers decide where to buy their CE gifts. The ease of making a purchase and return policies are also important purchasing factors. Two-thirds of consumers will compare the price for electronics online before making a purchase. However, consumers are more likely to buy CE gifts at mass merchants and electronics stores than online or at warehouse clubs, said the CEA.

Source: Consumer Electronics Association

Want to receive industry news? Sign up here
share on: