As has become the custom each autumn, the Consumer Electronics Association--the owner and producer of The International Consumer Electronics Show (aka "CES")--gave a series of presentations by notable members and esteemed guests in anticipation of the January 2010 event. The CEA is one of the largest trade organizations in the United States, with new members such as Amazon.com joining in 2009. The CE outlook was analyzed with hard numbers as we head into the busiest shopping season of the year, along with predictions of holiday buying trends.
With the recession expected to bottom out in July of 2010, "flat" in business "is the new up." Consumers will be cutting back on holiday spending, three percent this year versus a 15% drop last year, and a three percent increase back in the heady season of 2007.
"The new frugality" is viewed as the biggest challenge for retailers, although a respectable 29% of gift-spending is expected to go toward CE purchases, up a point from last year. Overall product units sold are expected to increase by six percent, although drastic "doorbuster" deals might lead to reduced revenue at the bottom line, but only time will tell.
On the CE Gift Wish List, a record 80% of adults are dreaming of electronics in their stockings, with the iPhone and Blu-ray player cracking the Top 10 products for the first time. A whopping 41% of consumers will be making their CE gift purchases online. Assortment is less important to shoppers, who put price above all factors.
Black Friday is coming early to many retailers, but this year has also seen a shift from stripped-down products at next-to-nothing advertised prices to better-featured, higher-end models at a significant (if less dramatic) discount. Bundles--a product and accessories, possibly software--will also be popular at retail.
Looking ahead to CES 2010, four major trends are anticipated. The Future of TV will include interactive applications and the further growth of 3D. New options for Content will require an evolution of Digital Rights Management, as people need to manage more quantity while attempting to share it over a variety of devices, including distribution to the car. New products will also attempt to hit the Screen Size "Sweet Spot," filling the current void between five and 15 inches. User Customization is also key, from apps and widgets to new and different add-on devices and accessories. Greener products are also going to be a hot topic once again.
Guest speakers included Dan Novak, Vice President of Global Marketing for Qualcomm, who spoke about the success of putting wireless technology not only into phones but also into computers and CE Devices. Frank Davis, Executive Director of Product Development for Ford Motor Company, spoke of the convergence of CD technology within the automobile.
This portion of the afternoon was capped off with the unveiling of some of the Best of Innovations 2010 Design and Engineering award honorees, with nominees in some 36 different categories. Home theater honorees included Definitive Technology for their ultra-thin on-wall speaker, the Mythos XTR-50, and the Genesis Advanced Technologies Genesis 7.1f speakers. Lastly, "Little Monster" Kevin Lee from Monster Cable revealed that John Legend will be the star performer at this year's CES concert in Las Vegas. If it's anything like 2009's Diana Ross gala, it should be a blast.
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