CD, Video/DVD and Video Game Sales: New Study Shows Increased
Competition for Share of Entertainment Dollar
Cross Entertainment Shopping Reportdelves into the shopping
behavior of entertainment product purchasers
PORT WASHINGTON, NEW YORK, May 19, 2005 - The multitude of
entertainment options in the marketplace means increased
competition for the consumers entertainment dollar, according to
The NPD Groups recent study, the Cross-Entertainment Shopping
Report. The report highlighted the fierce competition, but noted an
increasing interdependence, across the various entertainment
categories.
The Cross-Entertainment Shopping Report was designed to help
marketers and retailers plan for the critical 2005 holiday season
armed with the hindsight of 2004 purchase patterns. NPD revealed
that DVDs were the most popular entertainment product category,
with 42 percent of US population age 13 and older purchasing a
video in November and December of last year. DVDs were closely
followed by toys (37 percent),
music CDs (36 percent), gift cards
(30 percent) and videogames (20 percent) as the most popular items
purchased over the holiday season.
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Organic Baby Clothes More than half of entertainment product purchasers crossed
categories during the 2004 holiday season. For example, 62 percent
of music buyers also purchased a video, and 62 percent of videogame
buyers bought a traditional toy.
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Punk Baby Clothes The challenge for marketers is to understand how to leverage the
consumers desire for entertainment alternatives, while not
cannibalizing their core
business, said Anita Frazier,
NPD entertainment industry analyst. The entertainment industry
sectors each need to understand where cross-promotion and
in-store merchandising is synergistic, so that they can optimize
brand equity and register ring.
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Cheap Baby Clothes If last holiday is any indication, NPD expects that licensing
will continue to soar in 2005, and beyond. Consumers are clearly
playing back the licensing message, said Frazier.
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Alternative Baby Clothes NPD reported that 79 percent of consumers who bought a movie
soundtrack did so after seeing the movie; 43 percent reported
buying a toy that was featured in a movie; and 33 percent of
videogame buyers were motivated to buy a game that was represented
in a movie; and 20 percent of videogame buyers bought music that
was featured in the game.
Baby Clothes Online Music companies are scrambling to get placement in a movie or
videogame, and this validates those marketing tactics, Frazier
noted. Teens were especially responsive to buying music from games,
and thats a terrific vehicle for labels to promote new
artists or reconnect with consumers who have been trading instead
of buying.
Organic Baby Products One-stop shopping shirts, pajamas . . . and
CDs?
Baby Clothes Uk Though it may be strange to think about entertainment in the
context of shirts and pajamas, consumers appear to be thinking that
way when they shop, according to the Cross-Entertainment Shopping
Report. Mass merchandisers are top of mind when consumers think
about purchasing entertainment.
Baby Clothing Low prices, convenience and selection are naturally important to
shoppers, but what really comes through during the holidays is the
value of one-stop shopping, according to Frazier. Consumers are on
a mission to save time and they know that mass merchandisers offer
an efficient shopping model. Its one reason we saw online
merchandisers benefit during the holidays.
Baby Stroller To counteract the one-stop-shopping consumer mentality,
brick-and-mortar electronics and specialty retailers must position
themselves among consumers as a destination shopping alternative.
Their primary challenge is to market their retail destinations as
the place where consumers will find superior service, deep catalogs
and value-based pricing.
Infant Clothing About the Cross-Entertainment Shopping Report
The Cross-Entertainment Shopping Report offers guidance on
consumer cross-category tastes, shopping behavior and demographics
to enhance development of successful merchandising, co-promotion,
and marketing plans. It is designed to
be a useful tool for both manufacturers and retailers, as they
ramp-up planning for the 2005 holiday season. Each January, NPD
collects detailed information about consumers shopping and purchase
habits during the holiday season. NPD interviews approximately
10,000 individuals age 13+ from its online consumer panel of more
than 2.5 million registered members. The report is written by NPDs
entertainment industry experts, focusing on trends that had an
impact on the home video, music and video games markets during the
holiday season.
Infant Clothes About The NPD Group, Inc.
Since 1967 The NPD Group has provided reliable and comprehensive
sales and marketing information for a wide range of industries.
Today more than 1,300 manufacturers and retailers rely on NPD to
help them better understand their customers, product categories,
distribution channels and competition in order to help guide their
business. Information from The
NPD Group is available for the following major vertical sectors:
apparel, appliances, automotive, beauty, cellular, consumer
electronics, food and beverage, foodservice, footwear,
home
improvement, housewares, imaging, information
technology, music, software, travel, toys and video games. For
more information visit www.npd.com
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