Happier Holidays as Consumers Return to Stores

Stephen Baker
Vice President, Industry Advisor

Products, Pricing, and Promotions in Flux

The consumer technology industry has had another strong year from a revenue standpoint, and we expect to close out the year 7% above last year's historic sales numbers. Despite years of industry efforts, consumer holiday purchases in 2019 were increasingly concentrated on the week of Thanksgiving and Cyber Monday. The 2020 holiday season disrupted that tradition, but consumers (and the industry) are likely to return to those old habits this year. With fewer stores opening on Thanksgiving, online shopping will once again be center stage. More than ever before online retail, buy-online-pick-up-in-store (BOPUS), and integrated promotion will combine to provide transaction convenience and possession options.

Products, pricing, and promotional activities will be in flux this holiday as manufacturers, retailers, and consumers respond to ever changing conditions. After almost two years of unprecedented sales volumes, the 2021 holiday season is likely the last time that the confluence of demand, lifestyle needs, installed base growth, and product refreshes all come together to produce the robust demand we have been experiencing. If you can't win now it will be a couple of years before these opportunities come back again.