$25 gift will save recovery!
By Daniel at 29 November, 2009, 7:51 pm
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NEW YORK - This gift-giving season, $25 and under is the place to be.
The economy is slowly recovering, yet consumers remain nervous, leading retailers to offer more items for $25 or less, experts say.
“A few years ago there was no price barrier for most retailers and most consumers,” said Kathy Deane, president of the New York-based retail consultancy Tobe. “Now consumers are looking for value. This is the year of $25-and-under gifts.”
In the past, stores and malls focused on presents less than $50 or less than $100, said Marshal Cohen, chief industry analyst at market research firm NPD Group.
“This year, the $25 price point really has resonated,” said Cohen. It’s what most people will spend for stocking stuffers or gifts for people outside their immediate family, he said.
“That’s the magic price point line which retailers recognize is their target zone,” he said. “Twenty-five dollars buys someone a gift that says, ‘I thought about you.”‘
This year’s holidays will be cautious ones, said Cohen, with stores offering traditional, practical gifts.
“The retailer is going to say, ‘We understand the economy is challenging. Instead of trying to shove a $100 cashmere scarf down your throat, why don’t you give a $19.99 special lambswool scarf that feels like cashmere?”‘
Popular gifts are likely to include accessories and apparel such as costume jewelry, grooming gadgets, small leather goods, cold weather staples like lined gloves, cosmetic bags, wallets and cufflinks for men. Also popular will be DVDs, books, electronics accessories and $25 gift cards, Cohen said.
“All kinds of things are going to be available to make your life a tiny bit better,” he said.
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