What's hot on
consumers' search lists
Electronics lead again but the top gifts are smaller
By Diego Vasquez
Dec 4, 2009
Most people plan to cut back on their holiday spending this year, but that doesn't mean they're eschewing pricey gifts entirely. Once again electronics will be the most popular gift category, but with a marked difference compared to last year. This year buyers are concentrating on smaller, less-expensive electronic items, such as GPS devices or iPod touches, both available for under $200. Variations on those two items made up eight of the top 20 most popular products on comparison shopping site PriceGrabber.com during the week leading up to Cyber Monday. Notably absent: Big-ticket items such as HDTVs. Last year six different HDTVs appeared on the same top 20 list, and not even one made the list this year. Still, even price-conscious shoppers can fall prey to price gouging this holiday season. There is a short supply of the season's most popular toy, Zhu Zhu Pet, and it's already going on eBay for much higher prices than at retail as desperate parents try to find one for their kid. Heather Dougherty, director of research at Hitwise, and Sara Rodriguez, market research coordinator at PriceGrabber.com, talk to Media Life about this year's hot gifts, why gift cards fall into that category, and how the recession is affecting gift choices.
What are expected to be the most popular gift categories this year (electronics, clothing, jewelry, etc.)? Does this differ from past years? How does the recession affect shoppers' choices in what they buy?
According to two Experian companies -- online comparison shopping web site PriceGrabber.com and online measurement company Hitwise -- electronics will again be the most popular gift category this holiday season.
Twelve of the 15 product categories most searched for on PriceGrabber.com between Nov. 23 and 30 were electronics.
The most-searched-for product categories for the last week in November 2009 (in order) were: plasma and LCD TVs, cameras, laptops, GPS, MP3 players, hard drives, camcorders, games and puzzles, Wii consoles and accessories, women’s boots, printers, Blu-ray players, flat panels/LCD, watches and electronic toys.
This season’s top 15 list didn’t change much from last year’s 15 most-searched product categories. In 2008 the most-searched product categories on PriceGrabber.com the last week of November were: plasma and LCD TVs, cameras, GPS, laptops, MP3 players, Wii consoles and accessories, hard drives, camcorders, Blu-ray players, games and puzzles, printers, women’s boots, flat panels/LCD, flash memory and watches.
Despite tight financial times, Americans are still shopping for pricey items this holiday season. However, unlike last year, more shoppers took advantage of Black Friday and Cyber Monday promotions offered by retailers this holiday season. For instance, searches for promotions increased by 76 percent during the week of Cyber Monday.
What gifts specifically are hot?
According to Hitwise, this holiday season’s hottest gift for kids is Zhu Zhu Pets [interactive toy pets].
Online searches for Zhu Zhu Pets were up 135 percent last week from the previous week, and since this “it” gift is running out at retailers countrywide, many consumers have turned to secondary markets such as eBay to secure a Zhu Zhu Pet for their young loved ones.
As for those who prefer more grown-up gifts, they are likely to get an electronic item this holiday season. PriceGrabber.com provides a list of the top 20 most popular products shoppers searched for between Nov. 23 and Nov. 30, and GPS/navigation systems and iPod Touches are two of the most searched items.
Do they tend to be lower-priced items, or are people putting all their money into one gift the whole family can enjoy like a computer or television?
Based on an online consumer study executed by PriceGrabber.com from Sept. 24 to Nov. 2, 2009, only 5 percent of consumers plan to buy one gift the whole family can enjoy. (Survey respondents totaled to 4,691 online consumers.)
Additionally, the list of the top 20 most searched for products is mostly populated with gifts that are not easily shared. And while prices are certainly falling on some of these items compared to last year they’re still not on the low-end of the pricing spectrum, suggesting that online consumers are still planning to bestow a pricey gift on at least one loved one.
Are people buying more "practical" gifts this season?
Yes, Americans are purchasing more “practical” gifts this season. One practical gift Hitwise observed as increasingly gaining popularity each holiday season are gift cards that can be used toward groceries, gas and other necessities.
In fact, web searches for retailer-specific gift cards – such as Wal-Mart, Target and grocers – have increased during the past holiday seasons, along with Visa and American Express gift cards.
Additionally, online searches for other “practical” items such as items for the home or car have increased this year. According to PriceGrabber.com, searches for tires increased by 94 percent this year (Nov. 23-30, 2009) as compared to last year (Nov. 24-Dec. 1, 2008), flooring is up 91 percent, washer/dryer combos 73 percent, replacement lamps 54 percent, washers 50 percent, refrigerators 29 percent, dishwashers 18 percent, cooktops and ranges 16 percent, cell phones 7percent and laptops 5 percent.
What are the hottest gifts for kids this season? Do they cost more or less than last year?
The “must-have” gift for kids this year is Zhu Zhu Pet, and they’re priced at an affordable range of $8-$10. However, as mentioned above, retailers are not able to maintain inventory of this season’s hottest toy gift, which means shoppers have turned to secondary markets in hopes of purchasing a Zhu Zhu Pet.
As a result, shoppers are paying more than double the toy’s original retail price.
Also, upon PriceGrabber.com’s review of the entire toy category, average prices for toys have dropped and they are costing parents less this year than in 2008.
Here are percentage change of the average price of various toy categories during 2008 and 2009’s Black Friday and Cyber Monday.
The average price of toy categories year-over-year on Black Friday: Average price for playgrounds has dropped from $1,156 to $271, a 77 percent decrease. Average price for educational toys has dropped from $48 to $38, a 21 percent decrease. Average price for games and puzzles has dropped from $54 to $50, a 6 percent decrease. Average price for pretend play toys has dropped from $74 to $70, a 5 percent decrease.
The average price of toy categories year-over-year on Cyber Monday: Average price for playgrounds has dropped from $1,961 to $260, an 87 percent decrease. Average price for toy electronics has dropped from $54 to $32, a 41 percent decrease. Average price for remote-controlled and robotics has dropped from $65 to $48, a 26 percent decrease. Average price for educational toys has dropped from $45 to $38, a 16 percent decrease. Average price for bikes, scooters and ride-on toys has dropped from $149 to $146, a 3 percent decrease.
What gift categories that were hot a few years back have cooled off the most?
While still among the most popular gifts, the following categories have lost some of their sizzle in recent years: plasma and LCD TVs, cameras, watches, home theater systems and furniture.
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