In case you haven’t heard, the Zhu Zhu pet is one of the hottest selling gifts this season- and not just for the little ones. Why is it so popular that consumers are crowding the local Wal-Mart and ordering them online for twice the SRP? Well, it’s fun, novel, and (even at three to four times the SRP) inexpensive.
According to a Burst Media survey on holiday spending, consumers across various income levels are cutting back 30% or more this year. Some of the best selling toys for kids cost $20 or less. Consumers are also getting creative with home-made gifts. In a National Retail Federation survey regarding the impact of the economy on families this Holiday Season, 36% report plans to buy more practical gifts (socks included).
Many retailers are snagging consumer dollars with lower price-points, frequent sales events, and less inventory on hand. However, many consumers are going online to make purchases with retailers sweetening the deal by throwing in free or flat priced shipping offers. The market research group, NPD Inc. reports that, as in recent years, apparel, toys, and movies top the list of consumer gift purchases.
It’s never too early to start looking ahead to the next Holiday Season, and considering the ongoing economic state of the ‘New Normal’ for American consumers, it’s safe to say that 2010 will not be a bounce-back to early 21st century spending. However, it’s important to note that consumers are still opening their wallets and are still interested in new products. Nottingham-Spirk Design Associates knows how to look for the “missing link” with ideation sessions, prototyping right in the building to bring an idea to life, graphics to make it appealing, and consumer research to ensure the voice of the consumer is heard and built into the final product.
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