By George Anderson
While many consumers are waiting out retailers for even better deals on gifts for this holiday season, one category of products, consumer electronics, has defied the late-buying trend as shoppers look to grab up the hottest technology before stores run out of stock.
The early demand for consumer electronics has gotten a big assist from low-ball prices in a number of product segments.
Competition for the consumer electronics market has become fierce and retailers are dropping prices in search of a competitive, albeit short-lived, advantage. Lorrie Grant in USA Today reports prices "as low as $29 on DVD players and below $500 on desktop PCs."
The speed at which the latest technology becomes a commodity has accelerated as discount stores such as Wal-Mart gain traction in the retail marketplace for consumer electronics.
Stacey Widlitz, retail analyst at Fulcrum Global Partners observes, "Discounters are getting (the latest technology) faster."
Moderator's Comment: What will the commoditization of the category mean for specialty retailers such as CompUSA or Best Buy?
Neil Stern at McMillan/Doolittle Retail Consultants was quoted in the USA Today article as saying, "I can buy a computer or DVD player now like I'm buying a box of Cheerios. What becomes critical is new product introduction and new technology introduction where there will still be a premium placed on the product and expertise." [George Anderson - Moderator]