PMA Data Watch: Despite the economic downturn, parents are not penny pinching when it comes to their children
Children are a primary driver for sales of digital cameras, accessories, photo publishing products, and portraits, according to PMA Marketing Research. Women are more likely to be the primary user of the digital cameras and they are now becoming more likely to purchase them as well. Children are the main focus for personalized gift products, such as, greeting cards, calendars, mugs and mousepads. The portrait market is also heavily dependent upon children. According to the 2008 PMA U.S. Portrait Report, excluding passport photos, U.S. consumers spent in 2007 a total of $7.6 billion on well-known portrait products. Sixty-one percent or $4.6 billion of that spending was on portraits involving children.
More than one-quarter of U.S. households purchased grade school photos in 2007 followed by 15 percent that purchased portraits of children taken at a studio or at home. Within the school portrait segment, 82 percent of parents with kids between 6 and 12 years old purchased school portraits. This figure declines slightly for parents with older children. Sports portraits are very popular among parents with children over 6 years old. Lastly, more than half of parents with children under 6 years old purchased a studio portrait in 2007.
According to a recent article in The Wall Street Journal, the littlest consumer is one of the best consumers when it comes to apparel as well. Basic infant and toddler apparel is one of the most resilient discretionary consumer categories as parents are more likely to cut their own clothing allowances during a recession than they are to scrimp on their baby’s clothing. Parents are willing to sacrifice on luxuries for themselves in order to dress their children nicely. Grandparents are also big spenders when it comes to babies. Baby-product makers are more immune to the economic downturn as babies grow quickly and clothes for a baby have to be replaced quicker than that of an older child or adult.
In the first quarter of the year, Carter’s Inc. and GAP Inc. revealed good numbers in the baby-clothes business and retailers expect this trend to continue when second-quarter results are issued. Price-conscious parents and other consumers cut back on their spending for children’s clothes only a little, so the current recession will have a moderately negative impact on the industry, according to research firm IBISWorld Inc.
PMA Data Watch: Comparison of film statistics
According to the PMA U.S. Camera/Camcorder Digital Imaging Surveys, 36 percent of U.S. households purchased film or one-time use cameras in 2008, up slightly from 34 percent in 2007. Households purchased an average of 4.3 rolls of film or one-time use cameras, a decline from 7.6 units in 2007. Twenty-nine percent of households processed film in 2008 and an average of 3.4 units were processed. In 2007, 34 percent of households processed film, 6.8 units, on average.
The likelihood of purchasing film or processing film was higher among non-digital camera households in 2008. Forty-four percent of non-owner households purchased film and 35 percent of non-owner households processed film. The number of rolls of film or one-time use cameras purchased or processed also increased slightly. Thirty-one percent of digital camera owning households purchased film or one-time use cameras while 25 percent of households processed film. Fewer rolls of film were purchased and processed per household when digital cameras were present.
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PMA Data Watch: Photo publishing product special offers remain prevalent
On a quarterly basis, PMA Marketing Research reviews a variety of online photo sites tracking the latest prices and other news related to photo publishing products to report in Newsline International. Spending on photo publishing products was estimated to hit about $1.2 billion in 2008 and is expected to grow only slightly (one percent) this year. Photo publishing products are, however, affordable in relation to other gift products and retailers continue to promote them.
Greeting cards were once again a popular item on the majority of the sites, with summer themes, including weddings, graduations and more. Personalized thank-you cards and invites were another common offering, as usual. Photo books remain a top priority at all of the sites. Shutterfly was advertising for a Summer Photo Book Challenge. The various offerings on the sites are constantly expanding, whether with new products or additions to the already existing line.
As usual, prices did not vary much among similar products across the sites that were surveyed. Numerous summer promotions were taking place, especially on photo books. Shutterfly was just one of the sites running a special, offering a 20 percent discount on photo books. Other sites, such as Walgreens, CVS and York Photo, were advertising discounts on the purchase of any photo products when a certain amount was spent. Coupon codes were available on the sites to redeem the discounts.
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 this quarter for photo books, greeting cards and mugs, however, were almost identical to those in April. Prices of personalized calendars, posters, canvas prints and mousepads declined slightly.
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 being created, so 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?
PMA Marketing Research recently surveyed various online photo and retailer sites tracking the latest prices for online digital prints. Prices did not vary much at all this quarter compared to April. Only a few insignificant changes took place.
The average price of a basic 4-by-6 inch print remained at 14 cents this quarter. Only a couple of sites implemented changes to the price of basic prints since April, but this was not enough to have an effect on the average price. Seven of the sights surveyed offer standard prints below 10 cents per print. Photofun.com once offered the lowest price for standard prints, however, the site is no longer in service. There will be a new site taking its place that is scheduled to launch at the end of the month.
Prices on 5-by-7 inch and 8-by-10 inch pints remained very close to what they were in April, at 88 cents and $2.80, respectively. Both fell slightly as a result of a couple of price drops. Wal Mart now displays the price of the 11-by-14 inch print changing the average price a bit. A few drops in shipping costs brought the overall average down by 9 cents. Costco is currently the only site offering free shipping on basic prints.
Summer brought limited time print discounts and other special offers. Clark Color Lab was advertising a penny print sale while York Photo was offering two cent prints for a limited time. Print maximums did apply to these sales. Snapfish was advertising 50 prints for 50 cents in honor of Independence Day.
A more detailed report of July online print prices is available to members only on the Marketing Research website.
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