NPD: Celebrity Endorsements Do Indeed Sell Headphones

By John Laposky -- TWICE, 2/24/2011

Port Washington, N.Y. - The ever-growing trend of celebrity-endorsed stereo headphones coming to market makes good business sense according to The NPD Group.

Dr. Dre and Monster introduced the now iconic Beats By Dre headphones in 2009.

According to the market research company's new study, Headphones: Ownership and Application, endorsements are extremely/very important to nearly 30 percent of consumers when deciding what headphones to buy.

Music artist endorsements ranked highest among consumers purchasing headphones under $20 and more than $100, and sales of headphones over $100 are growing according to the firms Retail Tracking Service. Headphones priced $100 or more went from around 2 percent of the headphone market in 2009 to 3.5 percent of the market in 2010. Overall stereo headphone sales increased 17 percent in units and 30 percent in dollars in 2010.

"The headphone market has seen great unit and revenue growth as the market for portable audio continues to expand due to smartphone proliferation," said Ross Rubin, executive director of industry analysis at The NPD Group. "Low barriers to entry are attracting many boutique brands, though, which are quickly creating a crowded field."

 According to the report, on average, consumers said they bought a new pair of headphones every 14 months, but teenagers reported buying new ones even more frequently. Forty-one percent of 13 to 17 year olds bought new headphones within the past three months. Teenagers were almost twice as likely as the average consumer to say they plan to purchase new headphones in the next year.

When looking for new headphones for themselves, consumers said price, sound quality, and headphone type were the top three factors influencing their purchase.

"From the lightweight foam-padded headphones that accompanied the first Walkman to the iconic white ear buds that come with the latest iPhone, headphones have been as much of a fashion statement as an audio accessory," said Rubin. "In particular, younger consumers are associating artists they admire with a premium portable audio experience."

The study is based on a U.S. representative sample of more than 2,100 consumers from NPD's online panel in January.

More information can be found on NPD's website and blog.

http://www.npd.com/and http://www.npdgroupblog.com. Follow us on Twitter: @npdtechand @npdgroup.