PMA Data Watch: Photo publishing product prices vary slightly in July
PMA Marketing Research reviews a variety of online photo sites tracking the latest prices and other news related to the photo publishing product market and reports in Newsline International on a quarterly basis. Spending on photo publishing products was estimated to reach approximately $1.32 billion last year and is expected to grow slightly this year to $1.4 billion. Despite a weakened economy, photo publishing products are a creative, yet affordable gift relative to other gifting options and retailers continue to promote them.
The dog days of summer are here and many summer-themed products were emphasized across the sites surveyed. Greeting cards were greatly emphasized on the majority of the sites with a variety of designs and styles. Photo books remain prominent on the sites as they are an ideal way to commemorate a summer of memories. Kodak EasyShare Gallery was holding a summer sale and offering 25 percent off all photo books. Costco has now made photo books available on its own website rather than just through a partner.
Determining an average price for certain products has become increasingly difficult due to the wide variety of sizes and styles available. Sometimes changes in average prices reflect new and improved product offerings, or the addition or subtraction of a product. Average prices documented in July for photo books were relatively similar to what they were in april. Average prices for mugs, mousepads, and personalized photo calendars did not change. The average price of posters and photo canvases fluctuated a little bit. Finally, greeting card prices remained constant. Prices are listed for folded greeting cards and photo cards and there are many more options to choose from on each of the individual sites mentioned.
There are many photo sites on the market that were not part of the informal survey by PMA Marketing Research and new photo sites are constantly emerging, therefore, these averages do not necessarily represent the entire online custom photo gift market. Limited time sales prices were also not included in the average prices. A more detailed report of custom product prices is available on the PMA Marketing Research website.
PMA Data Watch: Online print prices – how do they compare?
Each quarter, PMA Marketing Research surveys various online photo and retailer sites in search of print prices and the latest site updates. Print prices changed only slightly this quarter compared to April. This quarter, price increases were more likely to take place among smaller prints rather than larger ones.
The average price of a basic 4-by-6 inch print based on the sites surveyed crept up slightly to 14 cents from 13 cents in April. The average price of a basic 4-by-6 inch print, when shipping is taken into consideration, remains at 24 cents. The average print was not affected by a few increases in print prices and shipping costs. Several of the sites continue to offer standard prints for a price below 10 cents per print. The average prices of 5-by-7 inch prints and 11-by-14 inch prints fluctuated modestly while the average price of 8-by-10 inch prints remained the same as in April. Kodak EasyShare Gallery has added the 11-by-14 inch print to its selection of products. The average cost of shipping standard prints increased a bit this quarter.
Summer is in full swing and this has many sites advertising print discounts and really encouraging printing summer celebration moments. Some sites were also offering limited time discounts on prints, especially for larger quantities, without the need to sign up for any particular plan. A more detailed report of July online print prices is available to members only on the Marketing Research website.
PMA Data Watch: Photo book creation among U.S. households
According to the PMA 2010 U.S. Camera/Camcorder Digital Imaging Survey, less than half of U.S. households have heard or seen anything about photo books, or 41 percent to be exact. Establishing awareness is critical when it comes to new products. By not articulating how consumers benefit from photo books and why they make better alternatives to standard photo prints, the industry is leaving a lot of growth potential untapped. Fifty-nine percent of U.S. households have yet to be introduced to photo books, even though they have been available for several years.
Of households that began making photo books in 2009, 33 percent left some books unfinished. This was, however, a decrease from the previous year when half of photo book making households left books unfinished. More than half, or 51 percent, of those who left some books unfinished intended to finish at a later time. Twenty-one percent said they left books unfinished because it takes too long to make them, followed by 18 percent who did not have all of the pictures they wanted, and 13 percent who said the books cost too much.
The most popular reason for making photo books is for the purpose of having a family keepsake, given by 60 percent of those who made photo books in 2009. This was a drop from the 69 percent who said the same in the year prior. Forty-six percent of photo book makers made them as a gift for family, a two-fold increase over the preceding year. Making photo books for the purpose of gifting them to friends also increased this year.
PMA Data Watch: The optimal retail print market strategy
Photo printing through retail and online sources is expected to remain flat in 2010, however, growth prospects return in 2011. The main source of growth for retail and online printing businesses will be share gain against home printing methods as opposed to the total print market growing. Home printers are the most economical option for making large format prints and wallet-size prints. In addition, they are the source of production for about one-third of all prints made by digital camera owners.
The cost differential between retail/online and home printing options on premium size prints is just too high for consumers to ignore. Consumers continue to invest in home printers and make large prints at home as a result. According to the 2009 PMA Camera/Camcorder and Digital Imaging Survey, more than one-third of the photo prints made by consumers at home are premium-size prints. This is double the share of premium sizes made at retail and about 5 times the share of premium print formats ordered online.
The disproportionate premium put on large-format prints today stems from the old days, where just a fraction of consumers returned to stores to make large prints, and were willing to pay that premium. Retailers and online firms must realize that times have changed as there are a growing number of photo enthusiasts who are more likely to make large prints. Retailers must be competitive with home printing costs to ensure they do not lose a very lucrative segment of the customer market.
PMA Data Watch: A look at camera sales and digital print volumes in March
According to NPD Group Inc., digital camera sales were up about 2 percent in March compared to the same month last year. This was an improvement over March 2009 when digital camera sales were down 20 percent. Year-to-date sales in March of this year were down 7 percent whereas they were down 9 percent in March 2009.
Resolutions of digital cameras continue to improve, even just compared to last year. Fifty-five percent of cameras sold in March 2009 were 10 megapixels or more. By March 2010, 92 percent were 10 megapixels or more in resolution. As digital camera sales have softened, digital print volumes are also being affected by the weak economy. There are definite signs of a slow down, according to PMA Marketing Research, as overall printing declined in March 2010. Retail printing, however, did experience some growth.
Overall printing volumes were down 2 percent in March 2010 compared to being down 1 percent in the same month last year. Online ordering activity fell 14 percent this year, compared to a growth rate of 8 percent last March. Printing volumes at retail minilabs grew 5 percent; printing volumes on kiosks grew 18 percent in March 2010. In March 2009, printing volumes at retail minilabs and kiosks grew at a much slower rate of just 1 percent and fell 8 percent, respectively. Printing at home was down 3 percent this March, as opposed to being down 7 percent last March. Other methods of printing, such as printing at the workplace, appear to be on the decline. There was a 15 percent decline in these methods in March 2010.
PMA reports a slight decrease in consumer printing in March
JACKSON, Mich. – PMA – The Worldwide Community of Imaging Association, reports the amount of digital printing remained essentially level for the month of March. According to PMA Marketing Research, the volume of prints made from digital-still camera images decreased by 2 percent compared to the same month the previous year. Printing volumes at retail minilabs and instant kiosks grew 5 percent and grew 18 percent, respectively. Online ordering fell 14 percent and home printing fell by 3 percent in March. “The opening of over 800 new drugstores in 2009 seems to be the main driver behind the continuous growth in the retail channel share and decline in the online channel share” said Dimitrios Delis, PMA Director of Marketing Research. With the absence of significant price changes at retail – see April 2010 Online Print Price Report – the home channel is maintaining its share. Statistics from the NPD Group Inc. showed overall camera sales were up 1.7 percent in March 2010. Overall demand for digital cameras also increased 1.7 percent in March.
The PMA Monthly Printing and Camera Trends Report, available exclusively to PMA members, provides timely insight into the printing and camera purchasing behaviors of consumers. PMA also translates the camera sales data from NPD Group into year-over-year trends on both a monthly and year-to-date basis.
Available from the marketing research area of the PMA website (www.pmai.org), the report is available for member download.
About PMA – The Worldwide Community of Imaging Associations
As a professional trade association, PMA® helps the worldwide photo imaging community achieve business success and adapt to new technologies. Its commitment to its members in 100-plus countries is part of an 85-year legacy that connects business owners to a network of knowledge and support. PMA furthers this purpose through the development of educational programs and business services, marketing research, publications, and trade shows. As a nonprofit organization, any success enjoyed by PMA in its endeavors directly benefits the industry, allowing PMA to provide continual services and activities for members.
PMA Data Watch: Camera phone vs. digital camera use among U.S. households
According to the Photo Industry 2010: Review and Forecast Report camera phone penetration is catching up to that of digital camera penetration. In 2009, 78 percent of U.S. households owned digital cameras, compared with 62 percent of households who owned camera phones. There are more camera phones in use as households are more likely to own more camera phones than digital cameras.
Camera phones, however, still remain secondary devices to digital cameras for purposes of taking and sharing photos. The number of pictures taken with a typical camera phone were 12 times fewer than the number of pictures taken with a typical digital camera, in 2009. Low utilization of cameras on phones implies dissatisfaction among users. Not surprisingly, dissatisfaction is highest among users of low-resolution camera phones. Overall, few people are impressed with their camera phone’s performance – only 18 percent. Satisfaction is higher among users of 3 megapixel or higher resolution units. Camera phones with that level of resolution, however, currently represent a small share of the devices in use.
It is clear the first step towards encouraging camera phone use is more resolution. The level of resolution causing most camera buyers to shift from film cameras to digital cameras could be a clue as to just how much resolution exactly is needed for picture taking with camera phones to gain momentum. Digital camera sales clearly overtook film camera sales in 2004, when the majority of cameras sold had resolution of 4-million pixels or higher. Camera phones are not expected to catch up with the highest resolution cameras any time soon; but we should see their use increase significantly once the resolution of most mainstream units surpasses 4-million to 5-million pixels.
PMA Data Watch: Retail printing among U.S. households
According to the PMA 2010 U.S. Camera/Camcorder Digital Imaging Survey, 61 percent of digital camera owners made paper prints in 2009. U.S. households that made prints were most likely to print less than 10 percent of the pictures they saved, stored or kept. Fifty-four percent of printing households made prints away from home, either by ordering from a retail counter or by using the instant kiosk.
Drugstores held the largest share of retail prints last year. More than one-third (36 percent) of all prints made at retail in 2009 were made at drugstores, up from 31 percent in the year prior. Discount stores were next in line capturing 29 percent of retail print share. Internet firms made up 15 percent of print share followed by warehouse clubs which made up another 13 percent. Camera stores/one-hour labs, mail order, supermarkets and other locations made up the remainder of retail prints.
The most common reason for making prints in 2009 was for the purpose of giving them to family or friends. Eighty-nine percent of printing households made prints for this reason, up from 83 percent in the previous year. Seventy-two percent of households put them in albums at home. Other reasons for printing include to put them in frames at home or in the office and to keep in boxes or envelopes around the home.
Video projectors shrink to ‘pico’ size, says In-Stat
In-Stat (http://www.in-stat.com) reports today’s state-of-the-art “micro” video projectors, which are about the size of a paperback novel and weigh about one pound, are quickly being pushed aside in favor of “pico” projectors, which are about the size of a candy bar and weigh just a few ounces. The combination of improved pico projection capability and the desire for larger displays will result in a new consumer electronics segment whose shipments will exceed 20 million units in five years.
“The number of companies developing pico projectors now stands at 18, and is growing,” says Frank Dickson, In-Stat analyst. “The list includes pico projection heavy weights like Himax, Micron Displaytech, Microvision and Texas Instruments.” Recent research by In-Stat found market revenue for pico projector modules expected to reach nearly half a billion dollars by 2014. While stand-alone/accessory pico projectors dominate the market, there is clear movement from “plug-in” to “embedded.” Personal CE devices and stand-alone devices dominate currently, but this will change as mobile handsets will drive growth exponentially within the next two years.
For a free sample of the report and more information contact Elaine Potter at: epotter@in-stat.com or (480) 483-4441. To purchase it online visit: http://www.instat.com/catalog/wcatalogue.asp?id=66
PMA Data Watch: Photo publishing products here to stay
According to the Photo Industry 2010: Review and Forecast Report, photo publishing products will remain popular. It started with photo calendars, a great gift for the holiday season, useful and creative, yet very affordable. Then the industry struck a home run with custom photo holiday cards, a more personal way for expressing holiday wishes, yet cheaper than traditional cards. By 2007, photo books had exceeded $250 million in sales to become the next major category in what was becoming a portfolio of custom photo products.
Ever since, the market for such products has continued to grow. The market value for photo publishing products was estimated at $1.2 billion in 2008 and grew to $1.3 billion in 2009. This year, the market is projected to grow once again to reach nearly $1.4 billion. Demand for photo cards and photo books appear to be growing, however, the market value for other products is dropping slightly.
The market value for photo cards is expected to grow about 10 percent this year when compared to this past year. Likewise, the market for photo books is expected to grow 13 percent, from a value of $372 million in 2009 to a projected $421 million this year. The market value of other products, such as calendars, mugs, and mousepads is a category that is expected to decline from $369 million to $340 million.
For the full Photo Industry 2010: Review and Forecast Report, in the basic and premium editions, please visit the marketing research area of the PMA website.
