Audio/Video Hardware Retailing - US - January 2005

SUMMARY

INTRODUCTION AND ABBREVIATIONS

• Other Relevant Reports
• Definition
• Abbreviations & Terms
• Abbreviations
• Terms

EXECUTIVE SUMMARY

• New technology driving market
• Lower units sold, higher average sales prices
• Sales increasingly dependent on high-income households
• Best Buy, Wal-Mart, Circuit City lead industry
• Retail channels move upscale with the market
• Retailers become educators
• Crowded marketplace
• Promotional strategies change
• Walk-in advertising
• Retailers promote image as educators
• Premium prices for premium sales assistance unlikely
• Consumer behavior driven by cost of product
• Focus on design
• Age and income arbiters of consumer behavior/opinions
• DTV to shift to discounters
• Growth lies ahead

MARKET DRIVERS

• Introduction
• Income
• Figure 1: Number of households per income group, 2000 and 2003
• Graph 1: households per income group in 2003 and change from 2000
• Consumer confidence
• Figure 2: Real GDP growth (%), Consumer Confidence Index, and home video hardware sales growth,1999-2004
• Graph 2: Consumer Confidence Index and home video hardware sales growth, 1999-2004
• New Technology
• Marketing support and content support for new technology
• Consumer Demographics
• Age
• Figure 3: U.S. households, by age of head of household, 2000-2010
• Race/Hispanic Origin
• Figure 4: American households, by race/Hispanic origin, 2000-2010
• Age and income
• Graph 3: Median household income, by age of householder, 2003
• Lifestyle issues affect audio sales
• Figure 5: Home audio ownership and purchase in last 12 months, by attitudes regarding digitaltelevision, May 2003-April 2004
• Figure 6: Home audio ownership and CD purchase in last 12 months, May 2003-April 2004

MARKET SIZE & TRENDS

• Introduction
• Figure 7: Total U.S. manufacturer sales of audio-visual hardware, at current and constantprices, 1999-2004
• Figure 8: Total manufacturer unit sales and unit price of home audio-visual hardware and averageFSP, 1999-2004
• Product design takes over
• Impact of higher prices on branding and warranties

MARKET SEGMENTATION

• Introduction
• Figure 9: Manufacturer sales of audio-visual equipment, segmented by product type, 2002 &2004
• Home video
• Figure 10: Manufacturer sales of home video products, at current and constant prices, 1999-2004
• Graph 4: Manufacturer sales of home video products, at current and constant prices, 1999-2004
• Figure 11: Manufacturer sales of home video hardware, segmented by product type, 2002 & 2004
• Graph 5: Sales of home video hardware, segmented by product type, 2004
• Digital TV (DTV)
• Figure 12: Manufacturer sales of digital TV products, 1999-2004
• Figure 13: Manufacturer sales of digital TV products, segmented by product type, 2002 & 2004
• Figure 14: Average sales price for LCD products, 1999-2004
• Home audio products
• Figure 15: Manufacturer sales of home audio equipment, 1999-2004
• Graph 6: Total U.S. retail sales of home audio hardware, at current and constant prices,1999-2004
• Figure 16: Manufacturer sales of home audio equipment, segmented by product type, 2002 &2004
• Graph 7: Sales of home audio equipment, segmented by product type, 2004
• Portable audio products
• Figure 17: Manufacturer sales of portable audio equipment, 1999-2004
• Graph 8: Total U.S. manufacturer sales of portable audio hardware, at current and constantprices, 1999-2004
• Figure 18: Manufacturer sales of portable audio hardware, segmented by product type, 2002 &2004
• Graph 9: Total U.S. manufacturer sales of MP3 players and other portable audio hardware, atcurrent prices, 1999-2004

RETAIL DISTRIBUTION

OVERVIEW

• Figure 19: Place of purchase for headset products, VCR/DVD players and DVD recorders, November2004
• Figure 20: Where DVD players were purchased by year, 2002, 2003, and 2004
• Figure 21: Purchase of A/V equipment by retailer, July 2004
• Notes on data presented in company write-ups

ELECTRONICS STORES

• Best Buy
• Corporate activity
• Consumer information
• Product
• Circuit City
• Corporate activity
• Consumer information
• Product
• Radio Shack
• Corporate activity
• Consumer information
• Product

MASS MERCHANDISERS AND CLUB STORES

• Consumer information
• Wal-Mart
• Corporate activity
• SAMS CLUB
• Product
• Target
• Corporate activity
• Product
• Kmart/Sears
• Sears Corporate Activity
• Kmart corporate activity
• Kmart product
• Sears product
• Costco
• Corporate activity
• Product
• A/V Specialists

COMPUTER STORES

• CompUSA/Good Guys
• Dell

INTERNET RETAILERS

• eBay
• Corporate activity
• Product
• Amazon
• Corporate activity
• Product

SUPPLIER RETAIL STORES

ADVERTISING & PROMOTION

• Overview
• Best Buy
• Wal-Mart
• Circuit City
• Dell
• Target
• Radio Shack
• CompUSA
• Amazon

THE CONSUMER

• Introduction

RESEARCH BY DEMOGRAPHIC GROUP

• A/V Market Participation
• Figure 22: Purchase of A/V equipment in past 12 months, July 2004
• Key point
• Primary Shoppers
• Figure 23: Primary shoppers for their household, by demographics, October 2004
• Key point
• Choice of retailer
• Figure 24: Purchase of A/V equipment by retailer, July 2004
• Figure 25: Purchase of A/V equipment by retailer, by gender, July 2004
• Figure 26: Purchase of A/V equipment by retailer, by age, July 2004
• Figure 27: Purchase of A/V equipment by retailer, by investor status, July 2004
• Figure 28: Purchase of A/V equipment by retailer, by urban status, July 2004
• Key points
• Sources of information
• Figure 29: Sources of information for A/V purchases, July 2004
• Figure 30: Sources of information for A/V purchases, by gender, July 2004
• Figure 31: Sources of information for A/V purchases, by age, July 2004
• Figure 32: Sources of information for A/V purchases, by the presence of children, July 2004
• Figure 33: Sources of information for A/V purchases, by investor status, July 2004
• Key points
• Opinions and behavior in A/V shopping
• Figure 34: Opinions and behavior in A/V shopping, by product type, November 2004
• Figure 35: Opinions and behavior in A/V shopping, by gender, November 2004
• Figure 36: Opinions and behavior in A/V shopping, by age, November 2004
• Figure 37: Opinions and behavior in A/V shopping, by household income, November 2004
• Figure 38: Opinions and behavior in A/V shopping, by race/Hispanic origin, November 2004
• Figure 39: Opinions and behavior in A/V shopping, by presence of children, November 2004
• Key points
• Recent purchase and intent to purchase
• Figure 40: A/V equipment purchased in the last 12 months, and intent to purchase, by product,November 2004
• Gender
• 18-24 year olds
• Household Income
• Other findings by demographic groups
• Gender
• Age
• Income
• Household size
• Conclusions for research by demographic group

RESEARCH BY PRODUCT PURCHASED

• Desired qualities in product purchased
• Figure 41: Attitude toward brand and appearance, by product type, November 2004
• Attitude towards purchase
• Figure 42: Excitement over purchase and willingness to wait for product arrival, by product,November 2004
• Conditions of the sale
• Figure 43: Conditions of sale, by product group, November 2004
• Methods of research by product category
• Figure 44: Methods of research, by product category, November 2004
• Place of Purchase
• Figure 45: Place of purchase for A/V products in the last 12 months, by product group, November2004
• How post-purchase services impact the purchase decision
• Figure 46: Post-purchase services impact on purchase decision, by product group, November 2004
• Conclusions from research by product and product categories

FUTURE & FORECAST

FUTURE TRENDS

• Mass merchandisers to pick up DTV sales
• Retail space as advertisement
• Figure 47: Sources of information for A/V purchases, by age and presence of children, July 2004
• Electronics retailers to move upscale
• Figure 48: Purchase of A/V equipment by retailer, by income, July 2004
• Wireless world
• Connectivity
• Focus on design

MARKET FORECAST

• Overview
• Figure 49: Forecast of total U.S. manufacturer sales of A/V products, at current and constantprices, 2004-2009
• Home video products
• Figure 50: Forecast of total U.S. manufacturer sales of home video products, at current andconstant prices, 2004-2009
• Graph 10: Forecast of total U.S. manufacturer sales of home video products, at current andconstant prices, 2004-2009
• Home audio hardware
• Figure 51: Forecast of total U.S. manufacturer sales of home audio hardware, at current andconstant prices, 2004-2009
• Graph 11: Forecast of total U.S. manufacturer sales of home audio hardware, at current andconstant prices, 2004-2009
• Portable audio hardware
• Figure 52: Forecast of total U.S. manufacturer sales of portable audio hardware, at current andconstant prices, 2004-2009
• Graph 12: Forecast of total U.S. manufacturer sales of portable audio hardware, at current andconstant prices, 2004-2009
• Forecast Factors

APPENDIX: TRADE ASSOCIATIONS AND PUBLICATIONS

• The National Cable and Telecommunications Association

APPENDIX: RESEARCH METHODOLOGY

• Consumer Research
• Sampling & Weighting
• Presentation & Definition
• Further Analysis
• Trade Research
• Informal trade research
• Formal trade research
• Desk & Internet Research
• Sources
• Definitions
• Forecasts

APPENDIX: WHAT IS MINTEL?

• Mintel Reports
• Global New Products Database
• Comperemediaｮ
• Mintel Services
• POS+
• Mintel Consultancy