The Adobe “Digital Price Index” Is Now Tracking Toys

Richard 6a0133ec87bd6d970b01bb08dc24e2970d-500wi"The Digital Price Index includes data from 8 billion website visits and 1.4 million products sold online between January 2014 and January 2016."

Digital Marketing Blog, Luiz Maykot

The Consumer Price Index (DPI) is largely based upon bricks and mortar sales. That provided a pretty good indicator of inflation 20 or even 10 years ago. We now live, however, in an age in which a significant amount of purchasing takes place online. Adobe wanted to see how inflation looked in the world of ecommerce and the Digital Price Index (DPI) is the result.

I took some time to peruse the data and here is some of what they have discovered and what I found to be interesting:

The cost of toys declined 5.3% between March 2015 and March 2016.

The products that led the retail price declines were: Lego, Power Wheels and Barbie.

Those in the toy industry who have witnessed LeapFrog struggle and several other children's tablet manufacturers leave the arena may not be surprised to discover that the cost of tablets has declined 18.2% over the last year.

The CPI does not track changes in consumer product engagement. Therefore it was interesting to discover that 80% of the money spent online on electronics goes to "new" products. That means that people are moving to new technology more rapidly than has been thought.

Prices for electronics purchased online have deflated more rapidly in price than thought. The cost of electronics decline 9.4% between March 2015 and March 2016. The cost of computers declined 13.6% and televisions 19.85 during the same period.

 Adobe has provided an interesting new way to better understanding what is happening online. It will be interesting to see what information they provide as they continue to mine toy and electronics sales.


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