HOLIDAYS

By Kathryn Sheranko | Photos by David Pinchot

“It seems that people are starting earlier every year,” says Leigh Zarelli, vice president of merchandising for Gifts.com. The site experienced a surge in customers using “Christmas” in their search parameters as early as August - up to several thousand a week, she says.

“We usually don’t see that until early October, but there are always those organized planners who start as early as they can.”

With consumers researching gifts earlier and earlier every year, Zarelli and her team must be prepared to stay ahead of the rush.

“Gadgets are hot this year as always, and there are things that are hot with everyone, which is a switch from years past,” says Zarelli, noting many of the same products on wish lists for young kids up through men and women.

“Money spent on apparel or luxury gifts is also being spent on electronics and other technical products,” she says, “and price points are going up because of that.”

But shoppers are not necessarily buying less.

“We see people buying for more and more people, and the average price is certainly going up. The average consumer is buying more than 11 gifts this holiday, which is a lot.”

So with more people in mind and regifting at stake, how will shoppers make everyone happy?

Talk tech
“Gadgets remain hot gift items in 2006,” Zarelli says. While there are a variety of new gizmos available, some of the more popular will be the “latest and greatest of some perennial favorites.”

The ever-evolving iPod is available this year with a touch screen ($299/30GB, $399/60GB). Bono continues to dominate pop culture as the face of the special edition iPod U2 ($329) while Nike+ shoes have a special iPod nano-sized pocket which allows the user to sync workout information directly to the device (shoes, nano and iPod Sport Kit sold separately). After failing to compete with iPod through an array of partners, Microsoft Corporation will finally unveil its own portable music device: Zune. With WiFi capability and end-to-end vertical integration, Zune will not operate like iPod (price not specified).

“We’re expecting to see a fun battle play out between getting the new Zune and people upgrading their iPods,” Zarelli says.

The highly-anticipated Sony PlayStation3 will also hit shelves this year ($499 and $599) with a larger hard drive, Blu-ray Disc technology, Bluetooth Wireless controllers and high definition gaming. For the electronically-challenged, Zarelli says experiential gifts are consistently popular.

“Things they can do instead of getting something in a box are certainly on the rise for us, including everything from tickets to sporting events to massages to thrill rides like race car driving school, open in many locations across the country.”

Make room for more accessories
“Gadgets aren’t just for the guys,” Zarelli says, “as more and more feminine accessories for gadgets are being introduced.”

From Swarovski crystal ear buds ($35) to jewel-encrusted necessities like the Cole Haan Gem iPod Case ($95)., “We’re seeing the fusion of tech and fashion, which is increasingly popular among younger women and teens,” she says. “They accessorize with technology and then they accessorize the technology.”

Hot fashion items for 2006 include oversized designer handbags like hobos and slouches as well as long, bold, gold necklaces. “Last year the circle was hot, this year gold is back in long chains,” Zarelli says. “Relaxation and spa getaways are always popular, whether a gift basket or a destination.” For more creative types or mothers with families, scrapbooking supplies (prices vary by product) are also a good choice.

Kids’ wish lists similar to parents’
“Technology is getting younger and younger,” says Zarelli. Interactive toys like Leapster Learning Game System ($59.99), Guitar Hero ($69.99) for PlayStation2 and the Vidster Children’s Digital Video Camera ($69.97) created by Mattel engage kids’ motor skills as well as creativity. “Kids are very into do-it-yourself, expressing creativity,” says Zarelli, citing the growing interest in make-your-own-perfume or cosmetics for girls (from $18.98). “Things like that are expected to be very popular.”

Make it personal
Retailers are also fusing technology into the holiday season. Through personalization services, even the most mundane gifts, like T-shirts, will be popular this year.

“There’s really nice things people are doing more and more of in personalization to make a great gift even better and tailored specifically for the recipient,” Zarelli says. “It’s grown to include not just monograms on a shirt, but has broken ranks to big-name brands like Polo, L.L. Bean and J. Crew.”

At Polo.com, customers can choose the style, color, pony logo design or monogram to create custom shirts (starting at $69.50). Shoe fanatics can create their own kicks at Nike.com, as well as personalize a variety of other products (personalization fee assessed per purchase). Traditional engraving has adopted a new twist as customers are carving names, dates and memories into anything shiny. iPod will engrave up to 40 characters for free, and will imprint company logos or other graphics for a one-time fee.

“Photo-enhanced items like mouse pads, calendars, puzzles and clothing will also remain popular gift items this year,” Zarelli says. “You can put photos on anything. We expect that to continue to be a leading category.”

Plan ahead, but don’t panic
“Think about purchasing new arrivals, especially technology, before the holiday rush leaves shelves empty,” Zarelli suggests. “And personalized items may take longer to arrive, usually two to four weeks, so there’s still plenty of time.” “If you know you want something customized or personalized, it’s always better to order ahead.”

In 2005, analysts coined “Cyber Monday” to underscore the spike in online shopping that has occurred in recent years on the Monday after Thanksgiving, according to the eHoliday Mood Study conducted by Shop.org and BizRate Research. The study surveyed about 2,500 merchants concerning online marketing tactics, holiday promotions and shopping tools. “Over the years, the trend is that ‘Black Friday’ is known as the big shopping day. Now, that Monday, everyone jumps on their T-1 lines at work and starts ordering online,” Zarelli says. Consumer expectations on Cyber Monday caught some merchants off guard last year.
“Customers actually called and asked us what kinds of promotions and discounts we had planned for Monday, Nov. 28,” commented one participating merchant.

The convenience of online shopping may motivate the early bird to get a head start, but the procrastinator may get the better deal.

“You’d be amazed at the speed at which you can get gifts when it gets down to the wire,” Zarelli says. “Somehow they do reward the procrastinator.” “Online shopping will pick up drastically in the next few weeks, so more and more e-retailers will begin offering expedited shipping at reduced rates to ensure gifts arrive on time.” In 2005, nearly 80 percent of merchants offered free shipping (with some conditions) to online shoppers, according to Shop.org. More than 50 percent offered online-only sales. •