Consumers Still Prefer to Shop in Stores

According to a new report from The NPD Group, many U.S. consumers remain reluctant to purchase certain consumer electronics products online, even after using the Web to find out more about them. For some products, that makes sense. In other cases the reluctance is harder to figure out.

While 52 percent of consumers would seek out information about smartphones on the Web, just 23 percent could imagine themselves going online to purchase one. That might makes a great deal of sense to you. A smart phone is a highly personal item.

In some other cases, the findings are more puzzling. The research suggests that televisions are the fourth most-likely item that consumers research online prior to purchasing (56 percent); however, it's the least likely electronics product that consumers would actually purchase online (19 percent). TVs aren't personal. On the other hand, it's a bigger-ticket item than many other products, so that could explain the hesitance.

In contrast more people (66 percent) do both their research (66 percent) and expect to make an actual purchase (34 percent) online for PCs then for any other CE device.

Top consumer electronics products consumers were "extremely" or "very likely" to purchase online, included the following:

• Computer software | 34%
• Computer | 34%
• eReader | 32%
• Digital Camera | 30%
• Computer accessories/peripherals | 30%
• Tablet computer | 29%
• Printer | 24%
• Smartphone/mobile phone | 23%
• Camcorder | 21%
• Blu-ray player | 21%
• Home audio | 20%
• Television | 19%

People still prefer to buy at retail locations

Japanese Consumers Really Are Different

Japan often is looked to as a hothouse for new consumer electronics trends, especially in mobile, that migrate to Europe and then to the United States. There is much truth to that observation, but it is harder to explain why that might be the case.

Some observers would say Japanese consumers actually behave differently from consumers in other parts of the world. Consider that while Japanese companies remain major global players in flat-panel televisions, digital cameras and videogame systems, they have almost no presence outside of Japan in personal computers, mobile phones or home appliances, the Wall Street Journal reports.

Some analysts say a good part of the reason is that Japanese buyers are detail-oriented and prefer products packed with features. Furthermore, they will read thick instruction manuals from cover  to cover, and seem to prefer products made in Japan.

Most buyers outside of Japan expect new products to be simple and intuitive, and they are less concerned about a product's point of origin.

"The consumer in Japan thinks very differently than the global consumer," says Atul Goyal, an analyst at brokerage firm CLSA. "Once Japanese companies try to sell things to a global market, they need to understand how a global consumer reacts."

So it is something of a sea change that the Apple iPad seems to be resonating with Japanese consumers, as the iPad emphasizes ease of use.

Consumers Spent More on Consumer Electronics Over the Last Year

The average U.S. household spent $1,380 on consumer electronics products in the past 12 months, an increase of $151 from last year, according to a new study released by the Consumer Electronics Association.

The average household spent 12 percent more on consumer electronics devices in the past year, which might be especially surprising considering a dip in most other consumer spending over that same period. Of course, sales took a dip in 2008 as well.

Individual consumer spending, as opposed to household spending, also was up 10 percent from the previous 12 month period, CEA says. The average adult spent $794 on consumer electronics in the past 12 months, up from $725 in 2009.

Women spent more on consumer electronics products than they did the year before but still trail men in overall spending. Women spent, on average, $631 on consumer electronics, up $73 from 2009. Men report personally spending $969 in the past 12 months, up $67 from the year before. The average household reports owning 25 consumer electronics products, up from 23 products last year.

CEA’s study also shows that video products continue to be the top devices consumers own, with HDTV ownership continuing to increase. About 65 percent of U.S. homes now own at least one HDTV, an increase of 13 percentage points from last year, making it the top industry growth driver of the past 12 months.

Consumers also are buying HDTVs as secondary sets. The average household now owns 1.8 HDTVs, up from 1.5 in 2009. HDTVs also are also the top product consumers say they want to purchase. About 23 percent of households say they plan to buy a new high-definition set in the coming 12 months.

Ownership of computers also continues to increase. Currently, 86 percent of U.S. households own at least one computer, making it the third most owned CE product category behind televisions and DVD players.

The popularity of netbooks, owned by 12 percent of U.S. households, and laptops, now owned by most households (58 percent), is helping drive the computer category.

Consumer Electronics Trumps Other Retail Sales

It doesn't appear to have been a good Christmas selling season, as this graphic by the Wall Street Journal illustrates.

But Best Buy says its December sales were up 1.5 percent over last year, compared to an increase of about seven percent in the 2006 over 2005 comparison. The company says the slower growth rate is due where the post-Thanksgiving week data was recorded. This year, that key week fell into the November numbers, instead of in the December reporting period.

Best Buy affirmed its 2008 guidance, suggested the company really did have stronger sales than it might appear. The contrast in sales might point to the increasing importance of consumer electronics as a component of discretionary spending.

That would accord with increasing broadband and mobile penetration, plus continuing interest in high-definition and flat screen TV displays, gaming, digital audio and even personal computers.

Over the past decade, for example, the percentage of disposable income now going to communications and electronic entertainment goods has been rising in virtually all North American, Far Eastern and European regions.