CE Retailers Adapt to Economy with Cautious Optimism

The holiday season is almost in full swing! As we ramp up for the big Q4 sales push, many in the Consumer Electronics industry  - including Best Buy and Sony - remain cautiously optimistic about the current economy.

So, how can eBay Electronics Sellers stay ahead of the game?

In this continuing series, SquareTrade takes a look at how Electonics Etailers are adapting to the economy to make their companies stand out this Holiday Season.

Etail Remains Bright Spot: Consumers going online instead of in line

Last week, the Consumer Electronics Association (CEA) issued its 16th Annual CE Holiday Forecast which details the effects of the recession on the economy, the U.S. consumer and the CE industry.

According to the report, 80% of adults plan on buying CE products this holiday - a 16-year high! But the report also states that consumers will need deep discounts and incentives to get them into stores.

The CEA-CNET Consumer Sentiment Indexes also shows that consumers still have mixed feelings about the state of the economy and their outlook for technology spending:

"The overall mood appears mixed in September, as many consumers are still guarded in their optimism about the overall economy and their future economic health." Shawn DuBravac, CEA's economist and director of research.

After last year's dismal results, this could sound alarming for the CE industry. But according to the CEA Holiday Forecast and the results of Shop.org's eHoliday Study, online shopping remains the bright spot in retail!

Consumers serious about getting best value

Consumers are looking to shop places they can trust - researching and doing comparison shopping to find out where they can get their money's worth.

"U.S. consumer electronics sales during the upcoming Holiday shopping season are likely to outpace last year's historically weak levels, but consumers are unlikely to abandon their frugal ways." Executives from Sony Corp and Best Buy Inc.

That puts etailers in a powerful position as studies continue to show cautious buyers are turning online to research and buy.

Online storefronts have advantages to brick-and-mortar stores

“In a year where every penny counts, many people will start their holiday shopping online to find deals, search customer reviews to select products, and get gift ideas. The benefits of online shopping far outweigh the drawbacks, as far as most shoppers are concerned.” Phil Rist, Executive Vice President, Strategic Initiatives, BIGresearch

Shop.org's eHoliday Study reveals some of the reasons why people will spend more of their holiday budget online.

Top reasons include:

• 24-hour shopping convenience (41.9%)
• Shoppers feel it is easier to compare prices (34.0%)
• Shoppers are drawn to free shipping offers (33.1%)

 

Great news for etailers! So, how can you play to these strengths?

What do your Q4 plans include? In the upcoming month, we'll highlight some of the things top CE Etailers are doing this holiday season to increase their conversion of potential buyers into customers.

Plans for many include a combination of new initiatives in conjunction with the more traditional approaches, including:

• Offering free shipping
•  Utilizing social media sites such as Facebook and Twitter
• Online ads and direct mailers
• Offering discounts earlier this year
• Revamping website

How is the economy impacting your Holiday Plans this year? Sound off in the comments below.