This is marketing research on the photography and camera supply store industry and can include information on the background, market structure, definitions, competitors, trends and developments of photography and is related to other topics such as film and digital cameras.

Table of Contents

[edit] Background

The retail photography supply industry has historically been highly competitive due to the small number of individuals – 6 percent of U.S. households – who make purchases at a camera specialty store. The majority of consumers purchase their cameras and related supplies through discount, drug, and supermarket stores.

Industry Associations

The Master Photo Dealers' and Finishers' Association, formerly known as the Photo Finishers Association of America (founded in 1924) expanded to include photographic dealers in the 1940s. At that time, photographic dealers became more closely aligned with photographic equipment manufacturers and photofinishers. Later, in 1974, the association became the Photo Marketing Association International (PMAI).

[edit] Industry Definitions

This industry consists of establishments primarily engaged in the retail sale of cameras, film, and other photographic supplies and equipment. Establishments can also be engaged primarily in the retail sale of video equipment including: radio, television, and consumer electronics stores.

[edit] Market Structure

The industry is significantly affected by introductions of new technologies such as digital cameras and new types of batteries. Many consumers only shop at photographic supply stores when there is a new lens, camera, or film type that they have heard about and are eager to try. Retailers are eager to remain on the cutting edge of photographic technology and to sell the latest equipment. They also service repeat customers who buy add-ons as well as replacement items such as filters and film. Photo CD technology and digital cameras were very high growth sellers as were sales of single-use, disposable cameras. The industry benefited from the Advanced Photo System (APS), a 24mm system acting as a bridge between digital and standard photographic techniques, using high-quality emulsion for its film and a new small hand held camera. Right after 2000, sales of digital cameras had risen substantially and prices began to fall.

A marketing strategy gaining popularity at the end of the twentieth century was co-branding. A number of the larger film and camera makers agreed to sell their products to specialty stores at substantial discounts. In return, the stores agreed to showcase that manufacturer's products. Eastman-Kodak planned to have more than 500 co-branded sites by 2005.

The photographic equipment and supplies industry was slowed after September 11, 2001, since families were not traveling as much. According to Value Line, Eastman Kodak's 2003 sales dropped 23 percent in 2003. Digital cameras were expected to out perform film cameras by a total of 5 million. Some analysts believe that consumers are moving away from the basic cameras, but the single—use cameras have not entirely lost their popularity.

[edit] Market Metrics

There were 1,149 camera and photographic supply stores throughout the United States. The combined stores represent more than 31 percent of the entire market, and $414.8 million in sales. There were another 2,083 specialty stores that specifically sell cameras. Combined they accounted for more than 56 percent of the market, and averaged $841.5 million in annual sales. Photographic supply stores accounted for 443 stores, more than 12 percent of the market, and $300.6 million in sales.

[edit] Industry Players

This is generally a highly fragmented industry, with thousands of local retail outlets.

• Ritz Camera, the industry's largest participant, generated $650 million in sales for 1998. Employing 6,500 people in 1,000 stores in 47 states, Ritz offered cameras and photographic supplies. Ritz stores also operated under the name "Camera Shop."

• Wolf Camera of Alpharetta, Georgia, generated an estimated $500 million in sales for 1998—nearly doubling the previous year's sales.

[edit] Trends and Recent Developments

Again, although worldwide unit and revenue figures are rising slightly, shipments for cameras, especially digital cameras are expected to peak soon in North America and Western Europe and have probably already done so in Japan.

Growth in the Asia-Pacific region, Eastern Europe, and Latin America is expected to offset these declines and be a driving factor behind the growth through 2010. In fact, the Asia-Pacific region is predicted to become the leading region for digital cameras by the end of the forecast period.

Profit margins have also been eroded and digital cameras can now be purchased for less than US $100. Much of the purchasing will continue to be done through discounters or consumers electronics stores such as Best Buy or Circuit City in the U.S.

[edit] Sources

U.S. Census Bureau

Wikipedia

Factiva

North American Industry Classification System

[edit] Next Steps

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