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Abstract (Summary)
Nestled between graduation and back to school is the summer travel and vacation season for millions of Americans. More customers will be coming to your store for CE solutions to use on a trip, a week at the beach or a long weekend at home. As a retailer, it is the perfect time to promote accessories that will enhance your margins, as well as your customers' vacations. According to the authors' annual Sales and Forecast report, the Consumer Electronics Association predicts unit sales and revenues of accessories to grow 7% and 8%, respectively, in 2008. Overall, it looks to be a great year for accessories as device manufacturers launch exciting new products and as consumers trade up to more expensive, feature-rich gadgets.
Nestled between graduation and back to school is the summer travel and vacation season for millions of Americans. More customers will be coming to your store for CE solutions to use on a trip, a week at the beach or a long weekend at home. As a retailer, it is the perfect time to promote accessories that will enhance your margins, as well as your customers' vacations.
Adding $8.3 billion to the industry's bottom line in 2007, accessories are a key component within consumer electronics. It's easy to see why: these "attachment" sales provide consumers a richer experience from their CE devices and bring retailers relief from the increasingly tighter margins on core products. Accessories provide an opportunity for retailers to capitalize on growth of core CE products and better serve customers during and long after the sale. Best of all, future sales of accessories look bright.
According to our annual Sales and Forecast report, the Consumer Electronics Association predicts unit sales and revenues of accessories to grow 7 percent and 8 percent, respectively, in 2008. Overall, it looks to be a great year for accessories as device manufacturers launch exciting new products and as consumers trade up to more expensive, feature-rich gadgets.
With the high-margin sales at stake, retailers have a huge incentive to make the hard push on accessories. And to be successful, they will want to promote the ones that will satisfy a consumers vacation and travel needs and a retailer's bottom line. Here's a look at how customers will spend their summer vacations and some accessories that can help them make the most of it.
On the Road
In-vehicle electronics are popular among consumers, with a few key products showing strong signs of continued growth. According to CEA data, shipment revenues of GPS and mobile video should nearly double in 2008 to $3.1 billion. As your customers prepare to hit the road this summer, make sure they have all of the accessories they'll need to get the most out of their portable video and GPS devices in their cars. This includes mounting hardware, vehicle-specific integration products and power adaptors. Bluetooth headsets and car kits will also prove popular with road-trippers and commuters as more mobile devices offer hands-free and stereo audio profiles. Bluetoothcompatible accessories will continue to be a sought-after item for owners' wireless handsets and portable media players. Planes & Trains
Portable devices like wireless phones and MP3
players are perfect for air and rail travel. To make the sale, consider that consumers are craving ways to add functionality and style to their odierwiseubiquitous portable devices. High-quality ear buds and noise-canceling headphones are obvious up-sell opportunities for travelers. And for the most styleconscious customers, carrying cases are a must. They not only offer protection for the device, but opportunities for your customers to express themselves through style and fashion. Indeed, fashion accessories are in high demand. CEA data projects a 15 percent increase in shipments of fashion cases for portable electronics in 2008. Likewise, cases for transporting portable game systems are also likely to be popular this summer considering the rapid growth in the overall gaming segment.
A Week at the Beach
For customers renting a beach house or staying in a time-share resort, recommend accessories that can help make them feel at home. MP3 player docks and portable speaker systems, for example, are the perfect companion to your customer's portable player, which can serve up music, movies and TV shows while on vacation. Docks are perfect for playing music, connecting to a TV and charging. Given MP3 players' current sales momentum, CEA statistics predict a continued upward trend in MP3 accessories such as docking products, through the remainder of the decade. This is great news for retailers selling MP3 and portable audio accessories.
Home Vacation
Around-the-house vacations-or "staycations"-are the perfect opportunity for your customers to reconnect and unwind with music, movies and gaming. And it's the perfect time for you to promote all of the accessories that complete the home entertainment experience. Wireless speaker systems, for example, can transform a patio or deck into an outside living space. And for those "staycationers" looking to tackle some home improvement projects, like hanging their flat-panel display or introducing a new Blu-Ray player to their media cabinet, sell them the cables they'll need to complete the project. HDMI cables, projected by CEA to see a 21 percent unit growth this year, are the perfect connectivity solution for customers with newer digital sets and high-def source components. Similarly, surge suppressors are pegged for growth this year too as consumers look to protect their digital entertainment gear.
With the prime travel season upon us, be ready to greet your customers with accessory solutions that will make their vacations enjoyable and memorable.