Holiday Sales Up Or Down?

Feeling grumpier about spending audio dollars this holiday season? You may not be alone according to a new survey of consumer holiday buying intentions.

The NPD Group reveals that the 2004 holiday shopping season could be challenging for retailers. "Nearly 9 out of 10 consumers say they are planning to spend the same amount or less than last year," say the researchers. That breaks down as follows: 69% of American consumers indicated they plan to spend the same amount this holiday as last year; 18% plan to spend less than last year; and 12% plan to spend more. On average, consumers tell NPD they plan to spend $655 over the holidays.

This number jibes with the one being touted by the Consumer Electronic Association's (CEA) latest findings. The consumer organization says that the typical US household is expected to spend around $600 on gifts alone, for a total of more than $63 billion.

However, contrary to the other NPD findings, according to the results from CEA's 11th Annual Holiday Sales and Forecast, consumers plan to spend up to 3% more on the holidays this year. Most of that money will probably go toward digital cameras, says the CEA, as well as DVD players, cordless phones, game systems, wireless phones, desktop computers, laptops and notebooks, portable MP3 players, and HDTVs.

The bright spot for the audio market is likely to be media servers. CEA research finds that 53% of consumers are interested in having the ability to store music on a PC and listen to it anywhere in the house. The CEA says that 38% of consumers currently own a media server, either a desktop or personal computer acting as a server or a dedicated media server. CEA Market Research defines media servers as devices that store all of a consumer's digital content (music files, home video, digital images) in one location, allowing it to be viewed or listened to from multiple locations in the house.

The survey also found that close to 19% of consumers indicated they plan to purchase a media server in the next two years. Of those, 49% noted they would be somewhat more likely to purchase a server if a professional could install, set up and maintain their server.

A CEA spokesperson comments, "The market potential for media servers is real, even as manufacturers seek to define this emerging category and educate consumers about its potential. Our survey shows that among the most compelling features for consumers is the ability to store music on a PC and listen to it anywhere in the house—53% agreed or strongly agreed with that statement."

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