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NPD: Celebrity Endorsements Do Indeed Sell Headphones

2/24/2011 11:29:13 AM Eastern

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

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.