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Back-to-school shopping brings visions of notebooks, backpacks and new shoes, but more often than not it also includes consumer electronics: computers, printers and portable devices. And topping the list of must-have gadgets for teens is the cell phone.

According to a study from NOPWorld Tech, 56% of American teenagers (ages 13 to 17) own a cell phone, compared to just 5% in 2000. And cell phone ownership and usage is now skewing ever younger: 40% of 12 to 14 year olds own the wireless device, according to the study, which dubbed cell phones the newest school accessory.

"Absolutely, we consider cell phones to be a real opportunity for the 15- to 25-year-old age group," said Paula Baldwin, a spokeswoman for Best Buy. "Particularly at the low end of that age range, where you're looking to equip the teen for the first time. It's a real growth opportunity."

But marketing to teens and tweens in this category has come under close scrutiny of late, particularly regarding subscription services for such things as downloadable ring tones and wallpapers. For retailers looking to reach this group in the upcoming back-to-school season, efforts will be more clearly targeted at parents.

"Parents are the primary purchasers," points out Chris Harper, director of retail marketing for wireless communications at RadioShack. "But just as in every other consumer category, the child is a heavy influencer." And appealing to both is tricky business. "There is definitely a divide between teens and parents," Harper said.

According to the NOP survey, the vast majority of teens carry service plans from national carriers such as Verizon, Cingular, Sprint and AT&T, reflecting the popularity of family plans that allow an additional family member to be added to the existing contract for a small monthly fee. Kids tap into the parent's available minutes but are assigned their own phone number. It's an appealing prospect for parents but one fraught with perils.

"If you are a parent and put your teen on a $9.99-a-month extension plan you're giving them a credit card with an antenna," said Harper. And while the additional handset is typically offered as a promotional part of the plan, replacement units when lost must be obtained at full cost. For its part, RadioShack is using marketing, merchandising and in-store consultations to apprise parents of these potential costs. Best Buy's Baldwin said the retailer is "jointly appealing to the teen and the parent."

More and more, parents are being steered toward buying their children individual plans, which works particularly well for older teens. "When you start getting into older age groups, 15 to 18 year olds, which are typically paying more of their bills themselves, it's more cost effective and meets their teenager's needs better," said Ben Rogers, vp of NOP World Tech. According to the study, 71% of teens want wireless phones that convert into mp3 players and 70% of teens and tweens are interested in phones that double as digital cameras.

Mp3-playing phones have yet to hit the market. Motorola's much-anticipated iTunes phone has been delayed and it is unclear whether the handset and service will be on the market by the back-to-school season. The Bluetooth-enabled device was on display at the Consumer Electronics Show and will carry a limited number of songs and offer video download and playback capabilities.

Currently camera phones are must-haves for teens who are heavy users of this feature. "[Approximately] 23% have a camera phone right now, and more than 90% of those that have it are using it on a daily basis," said Rogers. "Teens with camera phones are taking an average of 12 photos per week with their cell phones and 23% said they transfer these photos onto a PC, presumably for sharing." This trend in itself offers the CE industry opportunity to build online photo communities and services for teens that could help boost print at retail programs as well. Said Rogers, "There is a real industry opportunity to make sharing images easier."

New products targeting tweens are now hitting the market, products that aim to appeal to both parents and kids. Mattel and Nokia are launching a Barbie phone for preteen girls complete with prepaid minutes, customized ring tones and faceplates.

But perhaps the most anticipated device is the Firefly mobile phone for kids. Made for smaller hands, the phone comes with the prerequisite colored faceplates and cosmetic enhancements, but takes the concept of pleasing parents a step further. The phone has just five buttons in lieu of the standard keypad and parents use a personal identification number to program up to 22 individual numbers into the phone including speed dial links directly to morn and dad. The phone also includes a one-touch link to 911 emergency.

The Firefly is aimed at kids from eight to 12 years old and will be available starting in May from Firefly's own Web site. In July, the phone launches in Target stores nationwide.

"It's the ultimate in control for much, much younger kids in an emergency or to place a call to get picked up at soccer practice," said RadioShack's Harper. "It's an interesting solution."

COPYRIGHT 2005 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
COPYRIGHT 2005 Gale Group


 
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