Digital Camera Sales Shift To PC, CE Stores
By Doug Olenick -- TWICE, 8/9/1999
Computer, consumer electronics and office supply superstores have become the preferred shopping venues for consumers buying digital cameras, according to the 1999 Photo Marketing Association (PMA) Consumer Photo Buying Report.
The PMA reported 70.1% of all digital camera purchases took place in these stores, up from 52.7% in 1997, with the remainder selling through camera specialty, mass market and discount department stores. Camera specialty shops did boost their market share, grabbing 9.4% of digital camera buyers, up from the 5.5% registered the previous year.
Discount stores suffered the largest customer defection, retaining only 7.9% of sales, down from 20% the previous year. Mass market retailers also fared poorly, dropping to 5.5% from 10.9%, as did catalog showrooms, whose share fell to 7.1% from 10.9%.
The reason for this shift can be seen in the overlap between computer and digital camera owners, according to the digital image research firm InfoTrends, Kansas City. The PMA report stated that in 1998, 90.2% of all digital camera owners also had a PC in their home. Consumers regard the cameras as a computer peripheral and tend to purchase them at retailers specializing in PC products.
"These key factors, coupled with aggressively priced digital cameras, will spur market growth through this five-year forecast period. Nearly 45% of digital cameras sold in 1999 will be purchased by consumers, primarily for personal use in the home," said Michelle Lampmann, InfoTrends market research analyst, in a report issued in June.
The link between film photography and computers has always been strong. The PMA reported that 68.4% of 35mm and 75.2% of Advanced Photo System camera owners also have PCs, and both figures are well above the 50% penetration rate PCs enjoy with the general public.
The digital camera/PC owners have an 80.5% attach rate to the Internet, the PMA report said. In addition, 43.9% also owned a scanner and 17.9% had upgraded their PC to Windows 98.
The typical digital camera purchaser, 71.5%, is married with children under the age of 21 and has a household income over $60,000, according to the report. Single men and woman accounted only for 15.4% and 13%, respectively, of all digital camera owners.
A Consumer Electronics Manufacturers Association (CEMA) study found consumers are buying digital cameras for many different reasons. Eliminating the need to develop film was cited by 74% of consumers, while 73% said they enjoyed being able to immediately view the images on the camera's LCD.
A demographic study of digital cameras by the PMA showed more people in the southern and western portions of the U.S. are likely to be an owner, as are those living in an urban location. Older working couples and those who have retired are the most likely candidates to purchase a digital camera, while younger parents are the least likely.
CEMA also found that people who take in excess of 30 photos per month, those who own color printers and scanners, or consumers who have used a digital camera at work are likely to purchase a model for home use.
Digital cameras also made up a larger percentage of all still cameras bought in 1998. The digital camera segment jumped to 7.9% last year from 4% in 1997, while APS cameras grew at a much slower pace -- going from 10.7% to 11.6% -- during the same period.
However, both continue to make up a small portion of the overall camera and camcorder market, with digital cameras comprising 5.8% of all sales and APS grabbing 8.6% of the market.
Research from InfoTrends indicated digital camera unit sales will achieve a compound annual growth rate of 38% through 2003, reaching more than 6 million units sold in North America. In 1999, revenues will grow 35% to nearly $1.2 billion.
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