PMA Data Watch: Digital camera purchases by channel
According to the 2009 PMA U.S. Consumer Photo Buying Report, the most common places to purchase digital cameras are discount/combination stores and electronics/video stores. More than half of units purchased in 2008 were purchased from one of these locations. This has been the case since digital cameras started to become popular back in 2003.
The Internet is the next most common channel for digital camera purchases. Thirteen percent of units sold in 2008 were purchased over the internet. “The Internet” includes only sources without physical locations, and outlets with physical locations may include their internet sales. Camera stores, warehouse clubs and department stores follow in order of importance when it comes to digital camera purchases. Few units are purchased through mail order or computer stores.
In 2008, males and females were about equally likely to be the purchaser of digital cameras. In 2007, however, females were more likely to purchase digital cameras. The percentage of purchasers under 30 declined in 2008 to 13 percent, from 17 percent in the year prior. Only 16 percent of purchasers in 2007 were 61 or older compared to 26 percent in 2008.
PMA Data Watch: Camera or camcorder purchasing activity by demographic segment
According to the 2009 PMA U.S. Consumer Photo Buying Report, 13.7 percent of U.S. households obtained a new camera or camcorder in 2008. This was a drop from 15.2 percent in the previous year. In addition, 12.4 percent of households purchased a new camera or camcorder in 2008. Not surprisingly, higher income households were much more likely to have purchased a new camera or camcorder in 2008. Only 8 percent of households with an annual income below $30,000 purchased one in 2008, but this figure more than doubles, to 18 percent, for households earning an annual income of $75,000 and more. Higher income households also spent more on each camera or camcorder, on average, than lower income households.
Younger households were also more likely than their higher income counterparts to purchase a camera or camcorder in 2008. Households headed by someone younger than 34 years old were more than three times as likely as those headed by someone 65 years and older to have purchased one. In fact, there was a negative correlation between age and the likelihood of purchasing a new camera or camcorder. Older households, however, spent more per unit than younger households.
Households with children present are also more than twice as likely as those without to have purchased a new camera or camcorder in 2008. Households where the female head is employed full-time are most likley to have purchased a new unit this past year. Households where the female head is unemployed are almost twice as likely as those who are unemployed to have purchased cameras this past year.
The 2009 PMA U.S. Consumer Photo Buying Report is now available in the marketing research area of the PMA website.
NPD’s holiday survey predicts modest consumer spending
The NPD Group, Inc., Port Washington, N.Y., revealed the results of its annual survey of consumers’ holiday spending intentions. Of those consumers surveyed, 30 percent told NPD they ‘plan to spend less’ this holiday, which was a four point increase over last year’s results. In addition, there was a four point decrease among those who ‘plan to spend about the same’ and those who ‘plan to spend more’ remained constant, at 11 percent.
“That 4 percent increase is certainly a sign of the times. On the other hand, that 4 percent is not as dramatic as it could have been.” says Marshal Cohen, chief industry analyst, NPD. “I think consumers will be looking for the right gift, rather than the most extravagant or expensive one. That combined with the soft numbers we are up against from holiday last year, and I think we will see growth, albeit a modest 0.5 to 1.5 percent.”
The 0.5 to 1.5 percent growth is what takes us ‘back to the future’ and to holidays past when growth rates of 5 percent or more were unheard of and unexpected. Not only will spending levels go ‘back to the future’ for Holiday 2009, but the kinds of gifts being bought will go back to being more traditional holiday gift items. “The survey results point to a return of more gifts being made of sweaters, fragrances, music, books, movies, and wallets, again,” said Cohen, “We are also seeing make-up and TV’s showing signs of growth. Other standouts are notebooks/netbooks. They have been growing and will continue to grow through the holiday.”
The top ten items consumers plan to buy as gifts, in order, are apparel, toys, movies, books, electronics, accessories, music, video games, fragrances and food. Compared to last year, there was no change in the top five categories, but there is some movement in the bottom five categories. The survey results show some upward movement in consumer purchasing intentions for accessories, music, and fragrances.
The NPD Holiday Survey shows a 20 percent increase among 18 to 24 years olds that say electronics are the ‘gift to purchase’. This goes to show the importance this age group places on electronics, viewing them as necessities rather than luxuries. The multi-year drop for apparel has stabilized. This year, 49 percent of consumers told NPD they intended to buy apparel as a gift, holding steady with last year.
The primary motivator for consumers to purchase this holiday is ‘value’. Value plays a big role in determining what and where to buy, according to 62 percent of survey respondents. Sixty-one percent say they are motivated by a ‘special sale’ and 50 percent by a convenient location.
Cohen says there are a number of variables that could contribute to the outcome of the 2009 holiday retail season. He calls it the ‘X-mas X-Factor’. There was a 3 percent change in the number of consumers saying they will begin their holiday shopping during the Thanksgiving weekend or later. There was an eight percent change in the number of consumers that said they would begin their shopping in early December or at the last minute. “The X-factor here points to a later start for this season’s shopping,” said Cohen. There is also an X-factor for the impact of state of the economy on consumer spending. The survey results indicated that the economy will have a significant effect on holiday spending for 50 percent of consumers. “Perhaps the biggest X-mas X-factor is the overall state of U.S. consumers’ psyche. Will they be feeling frugal or will they have a case of frugal fatigue and unleash some pent-up demand?” says Cohen.
2009 PMA U.S. Consumer Photo Buying Report
PMA provides insight with the release of the 2009 PMA U.S. Consumer Photo Buying Report
JACKSON, Mich. – PMA – The Worldwide Community of Imaging Associations announces the availability of The 2009 U.S. Consumer Photo Buying Report providing retailers and photo labs with an overview of the photo industry. The report is designed to aid firms in business planning.
The new PMA 2009 US Consumer Photo Buying Report is the best resource for marketing departments, public relations departments and research departments, of firms operating in the photo industry. The report presents trends in adoption of products and consumer behavior and is based on a survey mailed to a national balanced panel of households every January. In 2009 7,637 households gave responses to questions on:
Purchasing of New Cameras and Camcorders
Digital Camera Ownership
Purchasing and Use Digital Image Printing
Storage Custom Items Memory Cards
Photo-Quality Printers
Camera Phones
Digital camera penetration in the U.S. reached 73 percent in 2008. Sixty-one percent of digital camera owners made paper prints from their digital images. Thirty-three percent of U.S. households made or ordered photo publishing products in 2008. Camera phones were present in 58 percent of U.S. households in 2008, more than doubling since 2005. Available from the marketing research area of the PMA website (www.pmai.org), the basic report is free to members. Non-members of PMA may buy the report for $299. Media members can contact PMA for a copy of the report.
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 84-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: Photo pulishing product special offerings continue to expand
Each quarter, 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 Halloween and winter holiday themes. Personalized thank-you cards and invites were another common offering, as usual. Breast cancer month was another common theme this quarter and was highly emphasized by Snapfish. Photo books remain a top priority this quarter, as usual. Even more sizes and styles are being showcased. Shutterfly now offers a 7-by-9 inch book.
As usual, prices did not vary much among similar products across the sites that were surveyed. Numerous fall and winter promotions were taking place though, especially on photo books. Shutterfly offered a sale on photo books, 10 percent smaller books and 20 percent off larger books. Kodak Gallery was also having a sale on photo books along with a buy-two-get-one sale on greeting card sets. Shipping discounts were abundant on the many of the sites.
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. For instance, Shutterfly no longer shows pricing for 4-by-6 inch and 5-by-7 inch mini books, bringing down the overall average. Average prices documented this quarter for photo books, with the exception of signature books, were the same as last quarter. Average prices for mugs, mousepads and calendars did not change much either. The average price of photo canvases increased a little bit. Finally, greeting card prices varied slightly. Prices are listed for folded greeting cards and photo cards.
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 July. A couple of insignificant changes took place. The average price of a basic 4-by-6 inch print remained at 14 cents this quarter. All of the sites kept the same price except for one minimal decrease. Several of the sights surveyed offer standard prints below 10 cents per print.
Prices on 5-by-7 inch and 8-by-10 inch pints remained very close to what they were in July, at 92 cents and $2.81, respectively. CVS now displays the price of the 11-by-14 inch print changing the average price a bit this quarter. A few increases in shipping costs brought the overall average up by 4 cents. Costco is currently the only site offering free shipping on basic prints.
The fall season brought limited time print discounts and other special offers. Ritzpix was offering a 6 cent print special on Tuesdays and Wednesdays. CVS was running a special on 8-by-10 inch prints.
A more detailed report of October online print prices is available to members only on the Marketing Research website.
