1.
CONSUMER ELECTRONICS
REPORT
Jan 2020
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© 2018 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
US CONSUMER ELECTRONICS REPORT | December 2019
METHODOLOGY
• Adobe Analytics measures 80% of online transactions at the largest 100 U.S. web retailers**
• Report based on aggregate and anonymized consumer data, comprised of over one trillion visits to over 4,500
retailers in the United States.
• Product analysis is based on more than six million orders per day on average during November and December.
• Companion research based on a survey of 1.4k U.S. consumers (18+ yrs.) in Dec 2019
• For comparison purposes, some retail segments have been broken by their primary product lines
**Source: Internet Retailer 2018
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Adobe Experience
Cloud
Adobe Analytics
Cloud
• Consumer Electronics
• Apparel & Footwear
• Home Furnishings & Décor
• Sports
• Health & Pharmacy
• DIY & Tools
• Jewelry & Cosmetics
• Automotive
• Major Chains
• Gifts

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© 2018 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
US CONSUMER ELECTRONICS REPORT | December 2019
Main takeaways
Consumers consumer electronics buying habits:
• Based on average order value, consumer electronics is by far the most expensive category tracked.
• Because consumer electronics also tend to require research and comparison shopping a vast proportion of
revenue comes from desktops.
• That larger order value dampens both conversion of visits to orders
• Consumers in urban areas spend slightly more on consumer electronics than their population suggests
• Military personnel buy from retailers that help trick out their living on or near bases.
• The evening of Cyber Monday represents the golden hours of shopping for consumer electronics
• Prices for computers and televisions dropped 18% from the October benchmark by the holiday weekend
• Most common size TV over the holiday weekend was the 50” range, at a price less than half of a month’s rent.
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© 2018 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
US CONSUMER ELECTRONICS REPORT | December 2019
Consumer Electronics Generate the Largest Online Orders
Consumer Electronic orders are 2.6x larger than the
typical ecommerce transaction ($416 vs. $159)
The second closest category, Home Furnishing & Décor,
is a distant second at a full $100 less per order.
The large Apparel & Footwear category helps bring
down the overall average.
Tech Savvy* consumers prefer to purchase electronics
online (48%), while the Unsavvy prefer to purchase in
store (47%)
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$77
$122
$124
$140
$163
$168
$226
$268
$268
$312
$412
Gifts
Apparel & Footwear
Sports
Health & Pharmacy
Other
DIY & Tools
Jewelry & Cosmetics
Automotive
Major Chains
Home Furnshing & Décor
Consumer Electronics
Average Order Value
2.6x
$159
Data from Nov 1 to Dec 6, 2019 and companion research.
*Tech Savvy consumers indicated they were interested to strongly interested in tech and electronics
Overall Average

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© 2018 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
US CONSUMER ELECTRONICS REPORT | December 2019
Voice Tech is Growing, While VR is Still yet to Hit its Stride
27% of consumers have purchase a voice
controllable device in that past year, and 27% of
consumers plan to purchase on in the next year
Integration between devices is important, almost
40% of consumers advise that it is very important
to have past and new devices integrate, 51% of tech
savvy consumers advise it is very important vs 25%
non tech savvy
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3 out of 4 consumers have not tried VR, of those that have
tried 77% are satisfied with their experience

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© 2018 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
US CONSUMER ELECTRONICS REPORT | December 2019
Quality Matters Most When It Comes To Electronics
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• Quality of a product comes ahead of both Ease of Use
and Price in the consumer’s mind.
• Role of “influencers” (family/friends/sales) regarded as
much less important.
Devices that the Tech Savvy plan to purchase in 2020:
50% - Smartphone
33% - Smart TV
28% - Gaming Console
20% - Laptop
21%
34%
39%
47%
55%
56%
59%
74%
78%
78%
85%
Salesperson Recommendation
Environmental Friendliness
Prev experience of fam/friend/colleague
Brand Name
Product Reviews
Design
Warranty
Product Features
Price
Ease of Use
Quality
How important are the following, when purchasing an electronic device?

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© 2018 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
US CONSUMER ELECTRONICS REPORT | December 2019
Electronics Research Lifecycle Lengthens as Price Increases
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• As the price of a product increases so does the time a consumer takes to research the product.
Inexpensive products (less than $50) can take a few days whereas more expensive product ($500+)
can take weeks.
• Research for most consumers takes the form of reading online reviews (69%), and comparing
competitive products (61%).
0%
10%
20%
30%
40%
50%
60%
$20 - 50 $51 - 100 $101 - 250 $251 - 500 $500+
When purchasing an electronic device, how much time do you take to research?
< 1 day 2 - 4 days 5 - 10 days 10+ days

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© 2018 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
1.4%
1.7%
2.2%
2.3%
2.3%
2.9%
3.1%
3.4%
4.2%
4.6%
4.9%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%
Consumer Electronics
DIY & Tools
Automotive
Home Furnshing & Décor
Major Chains
Jewelry & Cosmetics
Sports
Other
Apparel & Footwear
Health & Pharmacy
Gifts
Conversion (Orders/Visits)
US CONSUMER ELECTRONICS REPORT | December 2019
Consumer Electronics has Low Conversion Rate, As Do Other Higher Priced Categories
Consumer Electronic conversion of visits into orders is half
the average (1.4% vs. 3.0%)
Exploration about complex, expensive choices require
multiple visits driving conversion down.
Looking for something with intent, Gifts, Health &
Pharmacy, generates the highest conversion rates.
8
.5x
3.0%
Data from Nov 1 to Dec 6, 2019
Overall Average

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© 2018 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Jewelry & CosmeticsApparel & Footwear
Consumer Electronics Home Furnishing & Decor
US CONSUMER ELECTRONICS REPORT | December 2019
Smartphone Share of Success Varies By More than 2x Across Categories
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Desktop still dominates in some categories:
• Consumer Electronics has lowest share of revenue
from smartphones: 18%
Smartphones purchasing rules in more personal
categories:
• Much higher shares in Apparel & Footwear (45%)
and Jewelry & Cosmetics (46%)
We asked consumers what would happen if we took
their phones away for a month: 35% of Millennials
responded (I couldn't live without it), the highest among
all age groups, followed by GenZ (29%) and GenX (28%)
18%
45%
22%
46%
Data from Nov 1 to Dec 6, 2019 – other categories fall in between these examples.
Desktop Smartphone

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© 2018 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
US CONSUMER ELECTRONICS REPORT | December 2019
Large Orders Dampen Smartphone Revenue; Consumer Electronics is Half the
Expected Value
• Consumer Electronics involves research not just hitting “buy now”, as a result little revenue comes from smartphones –
much less than the more impulsive Apparel & Footwear segment
• Consumer Electronics: 18% -- Overall Share is 36% -- Apparel & Footwear is 45%
• For every $100 increase in AOV, the role of smartphones conversion deceases by 15%
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10%
15%
20%
25%
30%
35%
40%
45%
50%
$- $50 $100 $150 $200 $250 $300 $350 $400 $450
Smartphone Share of Revenue by AOV
Consumer Electronics
Apparel & Footwear
-60%
-40%
-20%
0%
20%
40%
Difference in Smartphone Share of Revenue from
Average
Data from Nov 1 to Dec 6, 2019

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© 2018 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
US CONSUMER ELECTRONICS REPORT | December 2019
Consumers in Urban Areas Tilt Their Spending Toward Vanity, Including Consumer
Electronics
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Urban Areas (essentially large cities) account for
68% of the population. They
• spend 12% more on Apparel & Footwear than
their population suggests.
• and just a bit more on Consumer Electronics,
Urban Development Index of 107
• spend less on more practical items such as
Automotive and DIY & Tools
1.12
1.07 1.06
1.03 1.02
0.93
0.75
-
0.20
0.40
0.60
0.80
1.00
1.20
Apparel &
Footwear
Consumer
Electronics
Jewelry &
Cosmetics
Home &
Décor
Sports DIY & Tool Automotive
Urban Dev Index
Much less likely in Urban Counties
Data: 9 months ending November 30th
Urban Areas: defined as counties with 0-9% area defined as rural., all other counties grouped together.
Share of Spend in Urban Counties / Share of Population in Urban Counties

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© 2018 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
US CONSUMER ELECTRONICS REPORT | December 2019
Military Base Personnel Focus On Retailers that Make Base Living Better
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Compared to national averages, military bases
produce a different shopping profile.
• Over half the online revenue (55%) comes
from Major Chains, Consumer Electronics,
Home Furnishings & Décor, and Automotive
• Much less (36% comes from retailers focused
on personal adornment (Apparel & Footwear,
Jewelry & Cosmetics)
Data: November 1 thru December 6th
Major Chains include mass merchandisers, warehouse clubs, department stores.
46%
55%
44%
36%
10%
9%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
All Markets
Military Bases
Holiday Spending from Military Bases
Trick out the base Personal Adornment Other

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© 2018 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
US CONSUMER ELECTRONICS REPORT | December 2019
Consumers Waited Till End of Cyber Monday to Snag Consumer Electronics Deals
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On Cyber Monday early $3 in $10 (28%) comes
between 8PM and Midnight with 9-10 PM the
most active hour.
For Black Friday the figure is $2 in $10 (19%) since
more shopping occurred in the mid to late
morning, peaking between 10 and 11 AM.
12:00 AM
1:00 AM
2:00 AM
3:00 AM
4:00 AM
5:00 AM
6:00 AM
7:00 AM
8:00 AM
9:00 AM
10:00 AM
11:00 AM
12:00 PM
1:00 PM
2:00 PM
3:00 PM
4:00 PM
5:00 PM
6:00 PM
7:00 PM
8:00 PM
9:00 PM
10:00 PM
11:00 PM
Black Friday
Cyber Monday

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© 2018 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
US CONSUMER ELECTRONICS REPORT | December 2019
Retailers Took Different Approach to Pricing Televisions this Year
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Last year televisions held their price until
Thanksgiving when the sales started. This year prices
starting falling much earlier.
Prices dropped 18% since October 1st by Black Friday
In contrast, computers take a slow ride down the
pricing curve.
After a slight rise in mid-October, prices leveled off
at the same level (down 18% by Black Friday)
Black Friday
Data: Adobe’s DPI where prices are anchored on October 1st

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© 2018 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 15
50 inch range most common size and
at $415 they’re less than half of US
median rent for 2-bdrm apt ($1,180)
80s
US CONSUMER ELECTRONICS REPORT | December 2019
Television Sales Focused on Upgrading Size
30s
40s
50s
60s
70s
47%
$162
$336
$415
$775
$1,186
$2,275
2019 Percent of Unit Sales
1%
15%
26%
9%
2%
Typical price in 2019
Holiday season thru Dec 12th. 30” TVs understated due to minimum price required of $150.
TV features that matter most:
82% - Picture Quality
70% - Screen Size
50% - Audio Quality
Consumers are willing to spend around $854 for their next TV experiences.
But do they have the wall space?

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© 2018 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 16
US CONSUMER ELECTRONICS REPORT | December 2019
From Movies to News, Content is Consumed on Smart TV’s
Smart TV - 34%
Smart TV - 42%
Smartphone - 36%
Smart TV - 32%
Smart TV - 34%
What type of screen is used the most to watch..
Movies
TV Shows
Online Videos
(Facebook, YouTube)
News
Live Sports

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© 2018 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
US CONSUMER ELECTRONICS REPORT | December 2019
As TV Prices Go Down, Size Goes Up: 50s No Longer A Big Step Up in Price
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The price premium to jump from the 40 inch to the
50 inch has fallen from nearly double (83%) in 2017
to a mere 26% in 2019.
The change in price positioning makes the 50 inch
class of TVs clearly the largest share of unit sales
during the holiday season.
• Last year 50s edged 40s: 35% to 30%
Holiday season by year. 30” TVs
understated due to minimum price
required of $150.
2017 2018 2019
40 inch Class $350 $304 $330
50 inch Class $639 $468 $415
Premium 83% 54% 26%
29%
35%
47%
$639
$468
$415
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2017 2018 2019
$-
$100
$200
$300
$400
$500
$600
$700
50in Class TV's Over Time
Share of Units Average Price

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© 2018 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.