What recession? Canadians spent billions on tech in ’09
According to market research firm NPD Group, Canadians spent more than $4.5 billion on computer and tech gadgets in 2009 — up slightly from the year prior — despite economic woes. We asked NPD why they think this is.
Interestingly, a just-published report from the NPD Group seems to negate the news about consumer confidence being low — or Canadians just can’t live without their tech and gadgets.
In the 2009 calendar year, Canadians spent more than $4.66 billion on technology products, including a particularly strong fourth quarter leading up to the holiday season.
While this number is up only one percent from the $4.61 billion spent in 2008, the fourth quarter saw an eight percent year-over-year growth. Even more significant is the fact our country — and the rest of the world — was reeling from a recession last year.
Specifically, Canadians purchased more than 83 million IT products at an average price of $56 per unit. The most popular among these items was the computer notebook, which came down 15 percent in average price, fuelling a 31 percent rise in the total number of units sold, says NPD Group.
So, how could this be given our economic state?
Sync asked this question to Darrel Ryce, director of technology and entertainment at The NPD Group.
“Clearly, Canadians have come to see computers and other IT products as essential to their lifestyle, even more so than the television and stereo,” says Ryce. “What was once considered a luxury or ‘nice to have’ has become a necessity in the home and in some cases the hub of our entertainment.”
Ryce says a PC or many PCs in the home is as common today as traditional entertainment devices like TVs or gaming systems: “A PC of yesterday was something that was used for the most to play games on, keep track of finances and occasionally check email or work stuff. Today, the PC provides us our music, helps us track world events, gather news information, lets us communicate broadly around the world, watch TV and movies, complete research and many other tasks that previously there would be other means for these activities.”
“With so much entertainment time spent with their PC having a product that meets all their needs is a requirement and something that consumers have demonstrated they are willing to spend disposable income on,” adds Ryce. “They are definitely leaving room in their budget to ensure their tech needs are met.”
Readers, did you buy any major IT items in 2009, such as a new HDTV, computer, smartphone, camera or video game system?
Hard to believe where are priorities are in these tough times. Let’s hope people do not need there disposable income for anything important like shelter, food or clothing. I do not believe the bad times are over just yet, but maybe they are.
It would seem to me that Canadians have had it so good for so long that they refuse to believe that tough times may still be ahead. I sincerely hope hope that they don’t have to sell their 4.5 billion dollars worth of gadgets at 10 cents on the dollar to eat or pay rent as this recession is only over for the TSX, banks and insurance companies. Cast your eye on the unemployment rates for proof. The sad thing is that the stimulus spending money is going to run out about the same time as the UIC benefits for those who lost their jobs last year. I said it a year ago and I will say it again. The Bloc, Liberals and NDP forced Harper to do something against his better judgement and we will all pay for his desire to keep his job.
We got to have our toys.
Well, the more money we put back in our economy the less brunt force we’re taking from the recession, I say if this is the way we’re keeping the funds flowing then so be it.
With all the doom and gloom stories we must remember. Thousands of workers lost thier jobs, BUT, millions did not…We are Canadian, roll with the punches and get back up…