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Transistor kills the radio star?

Vendas lideram sector da Electrónica de Consumo

"Canadians are dancing in the streets as sales of MP3 players more than tripled in Canada between June 2004 and June 2005. According to the latest NPD Group researchon the consumer electronics market, growth of MP3 players far outpaced the gains by the second and third fastest growing categories, which were flat-screen televisions (LCD and plasma) and digital SLR cameras, respectively.

While the Apple iPod is the dominant player in this active category, there is opportunity for other brands to build market share, as research suggests that brand name is not the top purchasing driver for Canadian consumers. Pricing, followed closely by product features were deemed more important to consumers than brand name.

NPD research also identified two distinct consumer groups among Canadians: those buying MP3 players for themselves (47 per cent) and those purchasing the players for others as gifts (47 per cent). Those who purchased MP3 players for themselves were more likely to be male (63 per cent) between the ages of 18-34 (60 per cent). The top-ranked purchase drivers for this group were features (47 per cent) and pricing (45 per cent). Brand name influenced purchase decisions only 28 per cent of the time.

Consumers who purchased MP3 players as gifts tended to be female (54 per cent) between the ages of 35 and 54 (66 per cent). The primary recipients of the MP3 gifts were teenage children under 18. Like the previous consumer segment, good value at a good price were more important than name brand in the decision making process. Moreover, 17 per cent of consumers within this group did not remember the name of the brand they purchased and 30 per cent said that they would have purchased an alternative brand if the one they were looking for had not been available.

“The MP3 market has grown at an incredible rate over the last year, but with only 40 per cent of Canadian households in possession of a digital music player, this market is still in its early stages of development,” said Pam Buckley, Senior Account Manager, NPD Group. “With so many brand-neutral consumers buying MP3 players as gifts, there is a strong indication that additional marketing on the part of manufacturers would help educate this consumer group on the brands and attributes currently available.”

With such a dramatic increase in the number of MP3 players purchased in Canada over the last 12 months, research also indicates that online stores like iTunes or PureTracks will likely experience a corresponding increase in song downloads."

(via Obercom)

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