According to the latest research from NPD Group, sales of MP3 players in Canada more than tripled between June 2004 and June 2005, with growth outpacing flat-screen TVs (LCD and plasma) and digital SLR cameras, which took the second and third spots, respectively.

Although the Apple iPod is the dominant player in the category, NPD says that brand name is not the top purchasing driver, leaving opportunity for other brands to build market share. According to the Group, pricing, followed closely by product features, are more important to consumers than brand name.

NPD research also identified two distinct consumer groups among Canadians: those buying MP3 players for themselves (47 per cent) and those purchasing the players for others as gifts (47 per cent). Those who purchased MP3 players for themselves were more likely to be male (63 per cent) between the ages of 18-34 (60 per cent). The top-ranked purchase drivers for this group were features (47 per cent) and pricing (45 per cent). Brand name influenced purchase decisions only 28 per cent of the time.

Consumers who purchased MP3 players as gifts tended to be female (54 per cent) between the ages of 35 and 54 (66 per cent). The primary recipients of the MP3 gifts were teenage children under 18. Like the previous consumer segment, good value at a good price were more important than name brand in the decision making process. Seventeen per cent of consumers within this group did not remember the name of the brand they purchased, and 30 per cent said that they would have purchased an alternative brand if the one they were looking for had not been available.

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