The thought of dimly lit school halls may send shivers up the spines of many school-age adolescents, but to Canadian consumer electronics retailers, it's the equivalent of a big "ka-ching."

Over the years, back-to-school has become the second largest, if not the largest, selling season for electronic gadgets and toys. Savvy retailers have primed the shelves with an assortment of technical must-haves, mixed in with a few "wouldn't it be nice to haves" as well. The goal? To generate interest in the latest electronic wizardry and to generate robust sales.

So what's driving this year's back-to-school season? Retailers in the know say value still reigns supreme. And, of course, it never hurts to have the right promotion or bundle at the ready. Fashion colours, bling, and even a bit of designer know-how all combine to set the stage for what's expected to be a healthy sales season.

Lookin' good

Although the U.S. economy lags behind Canada's more robust economic come back, back-to-school is anticipated to show modest growth south of the border. Retail Strategist, John Long, of Kurt Salmon Associates, speaks of the projected sales.

"We expect back to school is going to be better than last year, but we don't expect stores to set any records," he admits, adding that retailers will find the selling season much easier than last year. "Value continues to be ‘in' for the consumer."

According to a Reuters news report, Chief Economist Michael Niemira of The International Council of Shopping Centers predicts back-to-school sales will demonstrate a slight growth of 2.5 per cent to 3 per cent over last year, the first gain since 2007.

Perhaps one of the most telling places to get a sense of students and their technologies is with American Campus Communities. The public company owns and manages student-housing communities in the U.S. and here in Canada. Since 1996, the company has developed more than $2.3 billion in properties and has acquired in excess of $2 billion in student housing assets.

According to Gina Cowart, V.P. Corporate Marketing/IR for American Campus Communities, today's students are extremely tech-savvy and require things like high-speed bandwidth access to the Internet for online classes, gaming, movies and TV programs. The ability to provide these high-tech services is essential.

"It is very difficult to be competitive in the student housing industry without a quality technology package," she explains. "We provide WiFi and flat screen TVs to all of our community areas and all rooms are hardwired for Internet connection. Our computer labs used to be crowded all of the time, but most students now have their own laptops (often more than one) and use extensive mobile technology. Now computer labs are steadily used for printing services, social media and Internet browsing."

As a result, all of the properties owned or managed by American Campus Communities offers some level of technical capabilities, depending on the age of the property and the Internet provider in the area. Cowart adds that there is little difference in technological demand between U.S. and Canadian students. "We provide third-party management service for our Canadian properties, but we see the same level of demand for technology among college students,"

she says, adding that there are some basic services that are necessary across the board. "Flat screens and iPods are the norm. At a few of our properties, flat screen TVs come as part of the furniture package. Students are also savvy consumers and do extensive research on products and services. When a technology product takes off, students are usually in the know. For college students, it is all about getting the content they want: games, video, music, when they want it. They will endorse whatever device can deliver this."

As for the technologies of tomorrow, Cowart says that speed is essential. "As mobile computing devices, gaming and social media platforms become more sophisticated, so will their popularity," she says. "It's all about speed and getting more bang for your bandwidth. Also, live streaming video will be in big demand."

Gina Cowart, V.P. Corporate Marketing/IR for American Campus Communities: "We provide WiFi and flat screen TVs to all of our community areas and all rooms are hardwired for Internet connection. Our computer labs used to be crowded all of the time, but most students now have their own laptops (often more than one) and use extensive mobile technology. Now computer labs are steadily used for printing services, social media and Internet browsing."

Higher learning

Traditionally, the back-to-school buying period has targetted parents of college and university students. These are the people who willingly agree to outfit their little darlings with all of the necessary accoutrements of student life. Over the years, however, this target market has changed. The introduction of consumer electronics products into younger grade levels has seen the audience broaden to include high school and even, in some cases, elementary school students.

Additionally, the college and university students of old have evolved into finely tuned buying machines that know better than their parents what the ‘coolest' or greatest tools will be. For this reason, back-to-school has grown into a sort of free-for-all that, in some cases, even targets the business channel.

"We target elementary, high school and university levels, as well as the teachers themselves," explains Pete Gibel, V.P., Merchandising and Chair of the EcoEasy Committee, Staples Canada. "In some cases, it's the parents who do the buying. In high school though, it's increasingly the kids who are buying things themselves." Gibel says some schools, even at the younger levels, produce school kits that list the bare necessities.

"Typically, they include things like a calculator and sometimes a USB key," he reveals. "In private schools, there is typically a notebook on the list as well." Vernon Coutinho, Consumer and Small Business, Segment Manager, Hewlett-Packard (Canada) Co. concurs that students today are more involved than ever in the buying process.

Vernon Coutinho, Consumer and Small Business, Segment Manager, Hewlett-Packard (Canada) Co.: "One of the big trends we're seeing is that students have a lot more opinion about what the parents should be buying for them."

"One of the big trends we're seeing is that students have a lot more opinion about what the parents should be buying for them," he explains, adding that with HP printers, the back-to-school sales period is almost equal to holiday.

Chris Fudge, V.P. of Consumer Business for the Personal Systems Group, HP, emphasizes the importance of targeting both students and parents.

"It's a huge buying season," he says. "We look at students going from high school to university but we also make sure the parents of the kids in high school and grade school have access to the right products."

Fudge identifies the 18 to 25 demographic as the key one for his company during this season and admits that when it comes to PCs, back to school can be bigger than holiday.

"During back to school, the PC is viewed as a productivity tool and an entertainment tool," he explains. "In holiday, the PC is more entertainment and gift giving."

Over at Toshiba Canada, Product Manager Mini Saluja explains how back to school has evolved beyond the classroom.

"We call it ‘back to work' as well," she says. "Many people decide to use this time to refresh their notebooks because of the great selection and good values available in the market during this period."

Chris Fudge, V.P., Consumer Business, Personal Systems Group, HP: "During back to school, the PC is viewed as a productivity tool and an entertainment tool. In holiday, the PC is more entertainment and gift giving."

Straight ‘A's for Apple

Perhaps one of the biggest game changers in this year's back-to-school season is the availability of the Apple iPad, unquestionably one of the hottest of items these days. In the U.S., for example, some three million of them sold in the first 80 days following the launch. Here in Canada, the iPad only became available on May 28th; but already, expectations are high.

"The iPad is a must-have gadget," acknowledges Philip Palmer, Product Manager, Targus (Canada) Ltd. "People are using the iPad for getting on the Internet and e-mailing, not necessarily for doing school work. Regardless, it's definitely popular among the students."

To that end, Targus (Canada) introduced a couple of higher-end, leather iPad cases, along with a fun, trendy neoprene one a week before the Canadian launch.

New iPad additions to the line include the black A7 sleeve (street price of $29.99) with water-resistant neoprene and non-scratch lining and the Crave Slipcase (street price of $39.99) with stow-away top handles.

"The iPad is more of a gadget so students will try to personalize it," says Palmer. "Students will be looking for some funky designs and vibrant colours in different materials."

Staples' Gibel similarly views the iPad as less of a back-to-school necessity, but still a big sales winner. "Right now, the netbook represents about 20 per cent of our notebook business," he explains. "I don't think anyone knows how the iPad is going to impact these sales. I've no doubt that the iPad will be successful, but I think it will be less for back-to-school and more for those interested in surfing the Web and interacting on social media."

Most industry analysts predict that the iPad (and other tablet PCs) will eat into the netbook market. A new report from Forrester Research suggests that the growth in the nearly half a billion PCs predicted to sell to U.S. consumers between now and 2015 will come from new form factors like the tablet PCs. The U.S. Consumer PC Market in 2015 suggests that new form factors will "cannibalize" netbook sales. Full-sized laptops, continues the report, will represent the largest share of the PC market, and desktops will be fueled by growth in gaming and 3D.

Statistics from Gartner Inc. predict a 22 per cent increase in worldwide PC shipments in 2010 versus 2009 and attribute most of the growth to the consumer segment. The consumer PC market is expected to grow by 29.5 per cent, while the professional market will show only a 13.1 per cent growth.

"PC demand in the consumer segment continues to strengthen, even though the global economy remains uncertain," explains Ranjit Atwal, Principal Research Analyst at Gartner. "Consumers are now viewing PCs as necessities rather than luxury items."

Gartner also predicts that sales in mini-notebooks will continue to grow in 2010 but will show signs of slowing down in the years to come, falling from its 18.6 current share of the market to 13.9 per cent in 2014. The research firm attributes the decline in mini-notebook sales to the decreasing price of mobile PCs and maturing consumer preferences. It also suggests that media tablets, like the iPad, will have a significant detrimental effect on mini-notebooks shipments in 2013 and beyond, when prices of the tablets will be lower and their functionality greater.

Netbooks, notebooks & nifty necessities

In preparation for this year's back-to-school season, Toshiba of Canada has refreshed its entire product line.

Among the new features that will help increase value in Toshiba's line up this year will be Toshiba Media Controller Software. This capability will be incorporated across the board into all of the company's laptops and netbooks. It allows students to stream videos, music and pictures wirelessly to up to three other Digital Living Network Alliance (DLNA)-certified devices with the mere push of a button. This is a great utility for those projects requiring collaboration or for simply sharing pictures or files with friends.

Another ‘hot' feature in this year's line up is the Sleep and Music function available on Toshiba's Satellite A660 line of notebooks. The feature allows users to convert their notebooks into portable sound systems, even when the computer is turned off or asleep, by connecting an MP3 player to the USB port.

Other features in the Satellite notebook line up include: Eco Utility to limit power consumption and measure energy usage; Face Recognition that works with a Webcam to eliminate the need for passwords; Resolution that upgrades standard definition DVD content; Hard Drive Impact Sensor that detects vibrations to protect the hard drive; USB Sleep and Charge port that allows other devices to be charged while the notebook is turned off; and an HDMI output port. Additionally, all of the new Satellite notebooks come equipped with Windows 7 Home Premium.

Toshiba of Canada has also introduced the NB305 netbook for a suggested retail price of $429. The Satellite notebooks range in price from the $629 C650 Series to the Qosmio X500 $2,199.

Built for entertainment enthusiasts as much as for students, Toshiba's Qosmio X500 packs the multi-core processing power of the Intel Core i7 processor with the high-end graphics of the Nvidia GeForce GTS chipset, and ports the A/V signals to an 18.4" TruBrite HD display, and Harmon Kardon speakers with Dolby 7.1 audio. There's also a Blu-ray drive.

According to Dell's Director of Global Marketing, Patrick Griffin, the sweet spot for a well-equipped notebook in this back-to-school season will be between $599 and $799. He adds that software purchases can add to this price.

"Microsoft Home and Student 2010 is a must-have for this season, as is some form of security software, like the LoJack software-based recovery service," he says, adding that the back-to-school is the second largest selling season for Dell. Hot products from Dell for 2010 include several new Inspiron laptops, including the Mini 10, the 14", 15" and 17" laptops; all of which are available in a variety of colours.

Aside from style, Griffin suggests that the key drivers in this season's notebook market are performance and productivity. "Almost every student needs access to a notebook today," he says.

HP is also sporting a new line of notebooks for the season. Innovative features include an embedded mobile modem (via a partnership with Rogers) to deliver wireless access to the Internet anywhere, any time.

"Most students in college and university have to be connected to the Internet," explains Fudge. "This is going to change the way students will be able to use these devices. It also adds value as a productivity tool and brings in an entertainment aspect as well."

Also new to this year's Envy and Pavilion notebooks and netbooks is the Beats Audio that intends to deliver improved audio quality.

"Our devices deliver on both productivity and entertainment," says Fudge.

Hot products from HP this season include the Envy 14 and 17 notebooks (suggested retail $1,599.99 and $1,999.99 respectively), the Pavilion dm4, dv5, dv6 and dv7 notebooks (suggested retail $699.99 to $799.99) and the Mini 210 and 110 notebook (suggested retail $379.99 and $299.99). "We're excited about this back-to-school season," says Fudge, who notes that notebook sales are anticipated to grow in the double digits this year.

HP's Mini 210 in "preppy pink" testifies to the increasing emphasis on colour and style in back-to-school notebooks.

A touch of glam

With students viewing notebooks and netbooks as more and more like a fashion accessory, some companies have gone back to the drawing board to redefine their offerings from a cosmetic point of view.

Dell, for example, is ramping up its colour choices.

"Dell led the way with the colour market," explains Griffin. "We continue to see the popularity of colours all over the world. As the design of products has changed over time, this category has adapted and now we're seeing customers make choices on cosmetic design."

An example of this customizable colouring can be seen with Dell's Inspiron 15" laptop, which is entirely customizable right down to the chassis colour.

Dell Design Studio currently offers more than 200 original designs and colours from independent artists and partners, including this one intended for Major League Baseball fans. It recently added to its offerings by teaming up with the online T-shirt supplier Threadless to offer 11 new designs.

Dell also offers the Dell Design Studio, where students can interactively view and select from hundreds of designs, artists, colours and patterns that can turn a Dell Mini or Dell Studio laptop PC into a personalized fashion accessory. Images are permanently imprinted into the laptop lid, making the design extremely durable. Dell Design Studio currently offers more than 200 original designs and colours from independent artists and partners. It recently added to its offerings by teaming up with the online T-shirt supplier Threadless to offer 11 new designs.

HP is another company that has created a seamless blend between fashion and productivity. The company introduced its Vivienne Tam Mini 210 earlier this year, a netbook design inspired by the classic Chinese love story "Butterfly Lovers." Suggested retail is $599.

"We refer to it as a ‘digital clutch'," says Fudge, who adds that this focus on fashion is evident in retail flyers that now showcase a full view of the notebook or netbook, rather than just a profile shot as in the past. Toshiba of Canada's Saluja is another believer in digital fashion. "We've got some real cool products, with a lot of different patterns and colours being introduced to all form factors," she explains. "This season will feature our greatest selection of colours to date.

The look and feel of a laptop is now a personal statement, a fashion statement. What the laptop looks like is more important than what's under the cover." And glamour isn't just about notebooks or netbooks. Sales of computing accessory items like cases and USB drives are also being driven by fashion-conscious students. "We have a display of USB keys going into big retailers like Staples that are targeted to the back-to-school market," explains Cathie Posch, Retail Sales Manager, Verbatim Corp. "They include drives that sport designs in plaid, Skull and an array of other colours." The company also offers its Tuff-‘N'-Tiny line of USB drives, which are designed to be durable and waterproof. "The students hook them onto key chains so that they won't lose them," explains Posch.

Cathie Posch, Retail Sales Manager, Verbatim Corp., points to an array of USB keys going into big retailers like Staples targeted to the back-to-school market that includes designs in plaid, Skull, "and an array of other colours."