While the slowing economy may be concerning broad swaths of the retailing world, consumer electronics has a bright future in the years ahead. According to a new CEA report, the average U.S. household reports spending $1,405 on consumer electronics products in the past 12 months.
That number may well be set to jump, giving the impending DTV transition in February 2009. CEA's 10th annual Household CE Ownership and Market Potential Study shows that HDTVs will have the highest growth in household penetration rates this year.
"More than 50 percent of American homes already own a digital television and it looks like high definition, or HDTVs, have the potential to match that by the end of the year," says Chris Ely, CEA's Senior Analyst of Market Research. "With the transition to digital television coming on February 17, 2009, lower prices and an increased awareness of the benefits of high definition, many consumers are deciding to upgrade their televisions."
Cell phones, MP3 players, digital cameras and laptop computers are also helping drive growth in the industry. "Consumers are seeking portable consumer electronics products," Ely continued. "The ability to listen to music, check email and make calls while on the go is what consumers want."
Multi-functional devices are one reason why the average number of consumer electronics (CE) products is down slightly, from 25 products in 2007 to 24 in 2008. As devices combine functions, consumers are able to consolidate their products.
The demographics of a household also determine CE purchases. Households with three or more people report owning 32 devices compared to just 17 for smaller households. Men also tend to own more and spend more on CE products, on average, than women. The study shows the average man reports owning 25 CE devices and will spend over $1,000 on CE products in 2008 compared to the average women, who owns 21 devices and will spend $600. However, women are far less likely than men to consider CE products in the house "theirs personally."
The 10th Annual Household CE Ownership and Market Potential Study is now available for free to CEA member companies. Non-members may purchase the study for $999 at www.ebrain.org.
Comments