The FINANCIAL -- PORT WASHINGTON, NEW YORK. According to Spotlight on Kids:  Understanding Cross-Category Purchasing, a consumer tracking study from leading market research company, The NPD Group, the share of spending for kids on toys and consumer electronics increased during the holiday season in 2009 vs. 2008, helping to offset share declines experienced by video game hardware and DVD’s, among other categories. 

The average retail price paid by consumers across categories declined by approximately $2 versus 2008, driven by declines in prices of video game hardware and software as well as lower gift card values.

Toys’ dollar share increases came from 0-8 year olds while 9-14 year olds showed significant increases in share of spending on consumer electronics. According to the report, over 50 percent of dollars spent were on items requested by the child, with sales of consumer electronics showing the most significant gains versus Holiday 2008.

In terms of dollar share, kids ages 12-14 capture the highest dollar share at 24 percent, and are overdeveloped among categories that have higher priced products. For kids ages 9 and older, video game hardware commands the largest share of dollars, with apparel becoming just as important by the time kids are age 12.
 
"What’s very apparent in this report is that, as kids get older, their influence over what is purchased for them increases," said Anita Frazier, industry analyst, The NPD Group. "As kids mature, they’re exposure to what’s available in the marketplace increases as does their sense of style and entertainment options."

License and Brand Power

Licensed goods represent over one-quarter of total dollars spent on kids, with sales of licensed products peaking with 3-8 year olds.  Top licenses varied by product category, but Disney and Nickelodeon licenses ranked in the top 5 for most categories.

A greater portion of dollars spent on kids ages 9 and older was on branded items as opposed to licensed items, with many having higher average retail prices, such as Nintendo, Sony, Apple, Nike, and Microsoft .  Sports licenses such as NFL and NBA also increase in importance as kids get older, representing close to 9 percent of dollars spent on licensed products for this age group.

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