Time to get holiday shopping: Today is Black Friday
Black Friday is the Friday following Thanksgiving Day in the United States (the fourth Thursday of November), often regarded as the beginning of the Christmas shopping season.
One explanation for the term is that retailers traditionally operated at a financial loss (“in the red”) from January through November, and Black Friday indicates the point at which retailers begin to turn a profit, or be “in the black.”
The Consumer Electronics Association predicts the 2014 holiday season will see the highest levels of consumer spending on consumer electronics since CEA began tracking holiday spending in 1994.
According to CEA’s holiday outlook released earlier this month, total tech spending during the holidays will increase 2.5 per cent (up from 0.9 per cent growth in 2013) to reach a record $33.76 billion during the 2014 holiday season.
For the first time, CEA’s Annual CE Holiday Purchase Patterns study found over half (54 per cent) of consumers are likely to purchase consumer electronics products online this year, increasing from 45 per cent in 2013.
Further, 26 per cent of consumers indicate they are likely to purchase more consumer electronics products online this year compared to last year. However, traditional retail channels remain vital for tech gift purchases with 77 per cent of consumers likely to purchase from a brick-and-mortar location.
Two-thirds (67 per cent) of consumers who plan to spend money on consumer electronics are likely to use a mobile device, such as a smartphone or tablet, to help them shop. Interestingly, those likely to use mobile devices to help them shop for consumer electronics plan to spend more money on consumer electronics this holiday season.
“Consumers are decidedly more optimistic about holiday spending on tech this year versus last year,” said Shawn DuBravac, CEA’s chief economist and senior director of research. “The macroeconomic environment is providing a firmer foundation and holiday consumers are showing a strong inclination to shop this holiday season. CEA’s forecasts point to growth in overall spending as well as spending on tech this holiday season.”
According to CEA’s study, similar to last year the five consumer electronics gifts adults most want to receive are also the top five products driving the majority (51 per cent) of total revenue for the consumer electronics industry in 2014. Combined, these products are expected to generate $108.8 billion in revenue in 2014, according to CEA’s U.S. Consumer Electronics Sales and Forecast.
While consumers want to receive consumer electronics as gifts this holiday season, 63 per cent of adults plan to give the gift of technology this year. CEA expects headphones and earbuds (27 and 26 per cent, respectively) to be the most popular consumer electronics devices consumers give during the 2014 holiday season. Tablets (26 per cent) also will be popular this year, followed by notebook/ laptop computers (25 per cent), TVs (24 per cent) and smartphones (23 per cent).
EMERGING TECH PRODUCT GIFTS
Emerging product categories, which just a few years ago were too small to track, are now listed as products that one in five consumers (19 per cent) are likely to purchase as a gift. One in 10 consumers are likely to purchase a fitness device (10 per cent), a smart device for the home (nine per cent) or a smartwatch (eight per cent) as a holiday gift this year.
“The appetite for tech is strong for the 2014 holiday season,” said Steve Koenig, director of industry analysis, CEA. “Expect to see growing consumer awareness and interest in emerging tech categories, including health and fitness technology, as industry giants have entered the playing field. These products will make their first big splash this holiday season, setting up 2015 as a breakout year for emerging segments like smartwatches and smart home technologies.”
CEA HOLIDAY RESEARCH
For 21 years, CEA has surveyed consumers for its Annual CE Holiday Purchase Patterns study, revealing the top technology gifts consumers want to receive and purchase as gifts for the holiday season. CEA’s Annual CE Holiday Purchase Patterns report provides insights into the current and past 21 holiday seasons including consumers’ holiday spending plans, retail behaviours, gift purchase expectations, wish lists and more. To see the full 2014 holiday outlook presentation, including an assessment of last year’s forecast, visit CE.org/holiday and keep up to date with all of CEA’s holiday research throughout the season.