Consumer electronic vendors are battling a big new marketing issue due to the economic downturn with “staying in replacing the old going out” however consumers are becoming conscious about taking on finance says a leading CE retail marketing director who also says that the Boxing Day sales are set to be big.
Consumer electronic vendors are battling a big new marketing issue due to the economic downturn with “staying in replacing the old going out” however consumers are becoming conscious about taking on finance says a leading CE retail marketing director.
Scott Browning the Marketing Director at JB Hi Fi said “There is still cash out there however people are trying to hang onto it. People are going to stay home and those with kids are going to want to entertain them so we are seeing selective entertainment purchases. They are also investing in services like Foxtel because they can entertain the kids easily with a subscription service”.
He added “Consumers are becoming cautious about taking finance however we anticipate that they are sitting back and waiting for the Boxing Day sales”.
When asked whether Australian retailers and CE vendors should have a Black Monday sale similar to the now famous Black Friday sales in the US he said “Consumers would not go for it. They would see it as being contrite and not a genuine event. Black Friday in the USA is smack bang after Thanksgiving so it is a logical shopping day between Thanksgiving Thursday and the weekend”.
Research conducted by SmartHouse reveal that families are set to ditch the buying of a new car or going on holiday this Xmas instead they are set to invest in a new TV or games console or even a new Foxtel subscription. Our survey revealed that 40% of consumers have ditched going away this Xmas in favour of staying at home and that high on their purchase agenda is some form of consumer electronic item.
60% said that they intend to spend after Xmas and not before.
High on their purchase list is gaming gear and while Microsoft has slashed their Xbox 360 sales both Sony with their PS3 and Nintendo with their Wii are holding firm on their pricing with both Companies reporting an increase in sales. Michael Ephraim, managing director of Sony Computer Entertainment Australia, said “There is no doubt that consumers are spending more on what they do in the house Vs going out”.
He added “We are confident that we will see an increase in sales and that there is no need for us to cut our pricing”. On the question of the Xbox 360 Vs the PS3 he said “Comparing the “hobbled” $299 Xbox 360 Arcade to the PlayStation 3 was like comparing apples and oranges”.
Also on the consumer wish list according to the SmartHouse research is a new home theatre kit, or personal video recorder with storage. However most consumers we spoke to were skeptical of the new Tivo claiming that they did not understand the value proposition.
David Ackery General Manager of Electrical at Harvey Norman said “We believe that from Boxing Day on will be big. There is demand for consumer electronic goods however we need more education on what technology they buy and the benefits of the technology”.