GfK sees opportunities in digital product bundling

An industry analyst has claimed a maturing digital lifestyle market will result in new product bundling next year.

Research project manager at GfK, Angus Macaskill, said although technology standards allowing these home products to communicate were still developing, consumers were starting to look towards linking the devices.

"We are on the crest of a wave; in the next 12 months people will be buying products to link them together," he said. "There will be a concentrated effort to bring technology devices out that can talk to each other."

As an example, Macaskill pointed to US-based vendor, Hip-E, which had introduced a new product bundle incorporating a PC system with changeable covers, audio player, phone and beat box.

This trend was comparative to the introduction of local area networking technology into the home, he said.

"It hasn't started yet in Australia, but we will eventually buy them [digital lifestyle goods] that way," he said.

The claim follows the release of the latest Canon Lifestyle Digital Index (CDLI) by GfK.

According to the report, digital still cameras and audio devices were the top two performing product sets for retailers in the last quarter of 2004. Sales of audio devices reached $99 million in Q4 2004, with unit sales reacing 297,315. This is the first time audio products have been represented in the report.

Digital still cameras continued to be the top-selling digital lifestyle category, with 520,000 units sold in Q4. Total sales were worth $222 million.

However, several products recorded a drop in sales. Game consoles took a dive in Q4 compared with the same period in 2003 - total unit sales fell by 76,000 to 340,000. Digital camcorder sales also fell in the same period from 72,000 to 61,048. Macaskill attributed the decline to both product generations reaching saturation point.

As a whole, consumers spent $654 million in Q4, 2004, and a total of $1.1 billion on digital lifestyle products in the last half of the year.

Prices continued to tumble but at a slower rate than previous years, Macaskill said. The report found average prices for all product categories except digital TVs had dropped by between 9.3 and 19.2 per cent in the last quarter of 2004 compared to the previous year.

This was lower than the average 20 per cent price drop experienced every 12 months, he said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Nadia Cameron
Show Comments

Father’s Day Gift Guide

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?