CE Promotional Activity Stalled in 2020 From High Demand, Shortages: NPD
High consumer demand, supply constraints and cost increases put the brakes on consumer tech promotional activity April-December, reported NPD Thursday. The number of CE products sold on promotion dropped 4 percentage points year on year to 61%. The biggest shift…
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was in degree of discounting, with TVs and PCs showing a “significant shift to lower discount levels” vs. 2019, it said. In 2019, 81% of TVs 60 inches and larger had a discount of at least 10%, vs. 67% last year. In notebook PCs, the $500-plus class had promotional discounts of at least 10% on 70% of sales, vs. 78% the prior year, resulting in a 3% increase in average selling price (ASP). In the sub-$500 segment, promotional volume share fell from 60% to 32%, while ASPs grew more than 10%, said NPD. “Products that were promoted saw ASPs rise as the level of discounts declined,” said analyst Stephen Baker, and consumers “chose to trade-up to more premium products.” Discounting was used “much more strategically to target specific products and categories, where there was an opportunity to create incremental demand or gain market share versus the normal focus of using promotions to create demand,” he said.